Tools / Higg FEM Verification

Higg FEM Verification

Verification improves the consistency, comparability and credibility of Higg Index data.

Higg FEM Verification Journey

Higg FEM verifications grew at a compounded annual growth rate of 60 percent since the verification program was launched in CY2018. This growth has helped the industry adopt a unified environmental assessment tool for their supply chains. Higg FEM verifications are conducted in more than 80 countries worldwide, and from 2019 to 2022, the number of Higg FEM verifiers increased 70 percent, from 230 to 390. This growth has presented various challenges and Cascale recognizes the need for improvement in data quality derived from verified Higg FEM.

Verification of Higg FEM

Higg FEM addresses various needs from different stakeholders. The assessment captures a range of aspects of a facility’s environmental impact, including:

Foundational environmental performance: the foundational operational practices and management systems that all facilities should have in place in order to identify and prevent the most critical environmental harm.
Quantitative impact metrics: environmental impact metrics such as emissions of greenhouse gas, waste generation, use of water resources, etc.
Leading practices: planned improvement activities and demonstrated reduction in environmental impact.

Past Approach

During the FEM 2021 cadence (CY2022), every single section of the Higg FEM had over 50 percent of facilities unable to cross Level 1. The same trend is observed in verified-assessments of the same cadence, meaning that a critical number of the facilities within the program have not achieved Level 1. In order to accomplish transformative changes within the industry, we need to design programs that reach and are catered to this cross-section of facilities, at a minimum.

Based on feedback from brands having rolled out Higg FEM to large portions of their suppliers, a majority of them mostly need reliable data on foundational environmental performance and specific quantitative metrics data.

While the Higg FEM tool addresses various needs, the verification approach to date has largely maintained a legacy framework. Based on the challenges presented and feedback from members, it is clear that there cannot be a one-size-fits-all verification approach. Additionally, Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) regulations emerging in the European Union are also contributing to the need for change.

What’s Changing

Verification for Higg FEM in CY2024 will be narrowed to a subset of questions, identified as a “core” set. The intention for introducing the core verification approach is to mitigate cost increase, maintain verifier availability and address quality concerns that have been raised in past cadences, and would be compounded by the lengthier FEM 4.0 update.

Core verification is a verified Higg FEM that only includes a subset of the full Higg FEM question set, aimed at verifying Higg FEM questions related to foundational environmental practices and select quantitative metrics data.

Watch the FAQ video to learn more about the changes coming to the verification process.

Find a video online: https://www.youtube.com/embed/N3lm2qVB3Ko?&controls=0

Foundational Environmental Performance

“Foundational Environmental Performance” refers to the essential good practices that a business must demonstrate in order to operate responsibly and sustainably. The specific criteria for including FEM questions in the Foundational Environmental Performance subset are:

Critical legal requirements: the regulatory compliance requirements that are common across most jurisdictions, and
Basic and foundational management practices: the foundational elements of a management system necessary to identify and prevent the most critical environmental risks.

Essential Quantitative Metrics

These are questions or REFIDs which provide data points that help to calculate a facility’s total GHG emissions and water consumption.

Please review Appendix C of the Higg FEM Verification Protocol to learn more about the specific questions included.

We are continuously evolving our tools and verification programs to better meet the needs of our members.The core verification approach helps to address the needs of brands and retailers, while contributing to our commitment to the highest standards of data quality.

The Future of Verification

In order for the verification program to bring value to its various stakeholders, Cascale is launching a verification evolution project.

Cascale strives to build a verification program that is

Credible: credibility is measured by the trust stakeholders put in verified results.
Flexible and modular: verification meets the facility/supply chain where they are and leverages verification activities that are fit for purpose.
Scalable: verification is available in various sourcing regions.

Cascale has identified three pillars that are essential for evolving the program. These pillars include a host of interdependent activities, some of which are outlined in the corresponding image.

Verification Outcome: Verified Scores

With FEM verification now only covering only a subset of the full FEM assessment, verified FEM scores will become only partially verified FEM scores. Cascale is assessing alternative metrics which align with the proposed core verification approach that could potentially support the brand’s internal processes. Please stay tuned for more details.

Verification Access Fees

Prior to May 2023, the Higg FEM verification fee was collected on Worldly, and passed to Cascale, who manages the program. In order to streamline the process, provide more transparency, and better align with common industry practice, this fee will now be collected by the verifying body, and passed to Cascale. The amount of the Higg FEM verification fee remains unchanged at $300 USD.

Your Higg FEM will be automatically enabled for verification so you can easily share your data with verification bodies – it’s simply a matter of choosing an organization and working directly with them.

It is also important to note that this change also affects the equivalent vFSLM module fee, which will no longer be charged on the Worldly platform, resulting in a net savings for facilities undergoing Higg FSLM verification.

Verification Access Fees support the ongoing content and methodology development of the Higg Index, associated programs, and verification protocols, which are essential to drive collective industry action. Fees associated with Verification shall be negotiated and agreed upon between the organization requesting the Verification and the Verifier Body.

Please find more details at the links below:

Higg FEM VB and Verifier Requirements Protocol Fee Schedule for VBs

Higg FEM 4.0 Update

This groundbreaking tool is designed to bring better data quality, alignment with global standards, and an improved user experience. As part of the Higg Index suite of tools, Higg FEM 4.0 is positioned as the most comprehensive assessment for environmental performance in the consumer goods industry!

Learn About Higg FEM 4.0

As we are not covering Level 2 & 3 questions, can we eliminate the requirements for chemical specialists?

Cascale does not plan to make any changes to the requirements for chemical specialists. We will review these requirements in respect to the verification evolution in the subsequent years.
How does Higg FEM 4.0 affect the requirement of the chemical specialist?

Given that the core verification question set consists of questions within Level 1, either a generalist or a chemical specialist verifier is able to verify the core question set.
Does Cascale intend to provide training to the verifiers? When will Cascale developed training materials be available?

Cascale will provide onboarding training for verifiers on: – Understanding the core question set, and – The verification approach for CY2024. – This training is expected to be available prior to the start of the CY2024 Verification cadence.Cascale will not be requiring verifiers to undergo a full FEM 4.0 training for the purpose of verification; however, Verifiers are free to undergo this training on their own.
Are there any new requirements for VBs or Verifiers to be qualified for FEM 4.0 Verification?

For CY2024, VBs or Verifiers do not have to undergo any additional qualification requirements to be able to conduct verifications. The regular VSM and application process applies.
How does the core verification approach benefit manufacturers?

Core verification approach intends to keep the verification cost change neutral for manufacturers in CY2024. Furthermore, Cascale recognizes the need to articulate clear value for manufacturers to adopt and leverage the Higg FEM program internally. Please stay tuned for more updates in the future.
What if the factory requests to go beyond the proposed scope for foundational and quantitative questions? Will this be allowed? Does Cascale intend to provide advanced facilities with full Higg FEM 4.0 verification during CY2024? What will be the approach if any brand requests full Higg FEM 4.0 verification?

This will not be possible for the verification scope of CY2024. The intention for introducing the core verification approach is to minimize cost increase, maintain verifier availability and address quality concerns being raised across the past cadences. Worldly’s platform will be set up to reflect only core questions for verification. Facilities should utilize CY2024 to complete the full Higg FEM 4.0 question set and aim to understand the questions thoroughly before verification comes in.
What would be the guidance from Cascale for brands who use verified scores for their supplier evaluation programs?

Cascale recognizes that an aggregate verified Higg FEM score, or the comparison of self- and verified-assessment scores during a given cadence should not be the only form of performance measurement for a facility. A single score fails to provide a comprehensive picture of a facility’s performance. A more holistic assessment of a facility’s impact/progress should include a facility’s section/impact wise performance, historic improvements and sector-wise benchmark.We also recognize that the verified Higg FEM scores have become an essential component of a brand’s supply chain sustainability program. Cascale is assessing alternative metrics which align with the proposed core verification approach that could potentially support the brand’s internal processes.
How will Cascale / Worldly incorporate automated quality checks?

Worldly is implementing data quality checks on the platform in consultation with Cascale. These are an initial set of checks/flags which will be implemented for the energy section in particular.
What are the costs for verifying Higg FEM as per the core verification approach?

Core verification will include a subset of Higg FEM 4.0 question set: Foundational questions and Quantitative Impact Metrics questions on GHG and water consumption. Cascale recommends a standard two person-day verification duration for conducting a core question set verification. Further specific guidance is outlined in the Verification Protocol, however the verification shall not exceed three person days. This will ensure maintaining the cost of verification at FEM 3.0 levels, while at the same time enabling the verifier to focus on delivering a high quality verification.Please refer to Worldly subscription packages on their website. Additionally, Cascale will charge a Verification Program Fee, which will be levied via Verifier Bodies.
What does the core verification approach include?

Foundational Environmental Performance “Foundational Environmental Performance” refers to the essential good practices that a business must demonstrate in order to operate responsibly and sustainably. The specific criteria for including FEM questions in the Foundational Environmental Performance subset are: – Critical legal requirements: the regulatory compliance requirements that are common across most jurisdictions, and – Basic and foundational management practices: the foundational elements of a management system necessary to identify and prevent the most critical environmental risks. Essential Quantitative Metrics – These are questions or REFIDs which provide data points that help to calculate a facility’s total GHG emissions and water consumption.Please review Appendix C of the Higg FEM Verification Protocol to learn more about the specific questions included.
What is the scope of Higg FEM verification for CY2024?

The scope of verification will be limited to a core set of questions which align with brands/retailers current needs from the Higg FEM. Based on consultations with brands, these have been identified to be Foundational Performance (as captured in Facility Foundations, utilized in lieu of brand codes of conduct) and Quantitative Impact Metrics (GHG emissions and water consumption).
Why is Cascale proposing these verification changes?

Higg FEM verifications grew at a compounded annual growth rate of 60 percent since the verification program was launched in CY2018. The quality of verifications have been a trade off during this growth phase. Systemically thinking, the audit framework approach applied to most verifications, the different needs that Higg FEM addresses, the skill gap to enable a high quality verification and a shorter time frame all contribute to quality concerns. These issues are predicted to exacerbate with an expanded question set. Additionally, compliance costs borne by facilities across various environment sustainability programs have been on the rise. All of these issues have led to Cascale evolving the verification program.
What has changed in the verification approach for Higg FEM 4.0 / CY2024?

The scope for verification during CY2024 will be narrowed to Foundational Performance and Quantitative Impact Metrics (limited to GHG emissions and water consumption). These questions are a subset of the Higg FEM 4.0 question set.
What is the Cascale approved trainer program?

Cascale has created an approved trainer program to provide a customized support option for facilities completing the FEM. Learn more about this here.
Where can I find the details of requirements for verifier bodies and verifiers?

View the Higg FEM VB and Verifier Requirements Protocol here. This document outlines the requirements that Cascale-approved Higg FEM Verifier Bodies (VBs) must meet to maintain their status as approved VBs in Cascale Higg Facility Environmental Module (FEM) Program.
Who are the approved FEM Verifier Bodies?

View the list of approved FEM verifier bodies along with their contact information and regions of operation here.
Who is the Verifier Body (VB)?

A company that is qualified and approved to perform the Verification Process in accordance with the defined procedures and protocols.
How can a facility or a brand adopt Higg FEM verification within their operations?

You can go through the verification resources, protocols and guides available here. Or you can get in touch with the Cascale directly.
What are the different types of verifications?
There are two types.
1. Onsite Verification: where the Verifier is required to visit the facility premises. If a facility wishes to publicly communicate Higg Index scoring they must complete onsite verification.
2. Off Site Verification: where the Verifier is able to conduct the verification without going to the site, usually by other means such as e-mail, pictures, web-conference, etc.
What is a Higg FEM Verification?
Verification refers to the methods and processes by which an eligible Verifier Body obtains appropriate evidence in order to express a conclusion on the reliability and accuracy of the Higg FEM self-assessment data (that is, the outcome of the measurement or evaluation of results against defined criteria). Through verification, a facility can improve the credibility of their Higg FEM self-assessment so that it may be used for:
- Business-to-business purposes e.g. supply chain sustainability evaluation programs managed by brands or retailers
- Business-to-consumer purposes e.g. showcasing their environment performance through a sustainability report
- Identifying opportunities for improvement to reduce environmental impact of their operations
- Reducing the need for multiple proprietary environmental audits