Energy Use & GHG 2025
General Introduction
Energy production and energy use are the largest man-made sources of air pollution and greenhouse-gas (GHG) emissions. The operational, environmental, and financial impacts of energy are key issues for facility operations. Driving energy efficiency and use of renewable energy throughout facility operations is an important area of focus for all factories.
As climate change emerges as the most severe human, environmental, and economic risk in the world, more stringent requirements and regulations may be imposed by governments. If your facility reduces your energy consumption and greenhouse gas emissions, it will help to reduce your exposure to regulatory risks or new requirements from brands. This may also create an economic advantage for your company by mitigating risk of fossil fuel and energy cost increase.
In general, the Higg FEM Energy and GHG section encourages you to:
- Identify and understand the types of energy used at your facility.
- Understand what operations and processes at your facility use the most energy.
- Track and report the quantity of energy consumption at your facility.
- Calculate Scope 1, 2, and 3 GHG emissions.
- Evaluate, plan for, and adopt solutions to reduce energy use and GHG emissions through better manufacturing practices and energy management.
- Implement leading practices to reduce energy use and GHG emissions. (e.g., phase out the use of coal and fossil fuels for cleaner/renewable energy solutions).
Additional details on the intent and criteria for each Higg FEM Energy and GHG question is provided in the guidance below along with useful technical guidance and resources to support your facility in the management and reduction of energy and GHG.
Energy Use in Your Factory
Energy is used throughout manufacturing facilities for various operational and production activities. The Higg FEM requires that facilities track and report energy use data for the energy sources listed below, which are grouped into three categories (Purchased, Renewable, and Non-Renewable Energy).
Additional requirements on reporting energy data in the Higg FEM including any specific exclusions are provided in the relevant Higg FEM question guidance below.
| Purchased Energy | Renewable Energy | Non-Renewable Energy |
| Purchased Electricity Purchased Steam Purchased Chilled Water Purchased Heating (District Heating) |
Biodiesel Biogas Geothermal Hydro Mini or Micro-Hydro (onsite) Purchased Renewables Solar Photovoltaic (electricity)(onsite) Solar Thermal (onsite) Wind (onsite) |
CNG – Compressed Natural Gas Coal – commercial mix (1) Coal Water Slurry (2) Diesel Fabric Waste Fuel Oil – Blended (3) LNG – Liquid Natural Gas LPG – Liquid Petroleum Gas Natural Gas Petrol/ Gasoline Liquid Propane |
Biomass
- Biomass – Sustainably sourced with certification. (4)
- Biomass – Without sustainably sourced biomass certification. (5)
Notes:
- Coal – commercial mix includes all types of traditional coal (e.g., anthracite, bituminous, etc.)
- Coal Water Slurry is a combustible mixture of fine coal particles suspended in water used as fuel source.
- Fuel Oil – Blended includes all types of fuel oils (e.g., furnace oil, bunker fuel, etc.)
- Biomass – Sustainably sourced with certification is any biomass that has supporting certification documentation from a sustainably sourced biomass program (e.g., Forest Stewardship Council (FSC), Programme for the Endorsement of Forest Certification (PEFC), ISCC Biomass Certification, Sustainable Biomass Program (SBP) Certification, Better Biomass Certification, Country Specific Certification, etc.)
- Biomass – Without sustainably sourced biomass certification is any biomass that is not certified through a sustainably sourced biomass program.
Domestic and Production Energy Use
The Higg FEM, energy use is categorized as domestic or production energy use which are defined as follows:
Domestic Energy Use – Energy that is consumed in non-production related areas and/or buildings such as employee washrooms, domestic only wastewater treatment plant, or office areas separated from production, canteen and kitchen, security posts, external lighting (e.g. roadway or landscape lighting), medical center, etc.
Production Energy Use – Energy that is directly or indirectly consumed in production related activities or production areas such as production equipment operations, onsite energy generations for production (e.g. steam or electricity), industrial wastewater treatment plant, production area lighting, heating, ventilation and cooling, etc.
Note: If industrial and domestic wastewater are treated together, energy use of the combined wastewater treatment plant should be included in production energy use.
Greenhouse Gas (GHG) Emissions in the Higg FEM
Greenhouse gases (GHGs) are gases in the Earth’s atmosphere that absorb/trap some of the Earth’s outgoing radiation, maintaining the earth’s temperature (called the ‘greenhouse effect’). Anthropogenic GHGs, or GHGs emitted due to human activity, are causing the planet to warm faster than natural climatic variations, and this is called global warming or climate change. Energy generation and use, transportation, use of refrigeration gases, and other activities produce greenhouse gas emissions that harm the environment. Reference IPCC: www.ipcc.ch
GHG emissions are categorized into 3 different scopes:
- Scope 1 Emissions: Direct emissions from owned or controlled sources.
- Scope 2 Emissions: Indirect emissions from the generation of purchased energy consumed.
- Scope 3 Emissions: All other indirect emissions that occur in a company’s value chain.
The Higg FEM calculates Scope 1 and 2 GHG emissions based on the energy use values entered in the Energy section, as well as the refrigerant use listed in the Air section. Energy use values input into the FEM are converted to a common unit (MJ) and GHG emissions (CO2e) are calculated using the 100-year Global Warming Potential factors for each GHG in the IPCC 6th assessment report, including non-carbon GHGs.
In the FEM, location based emission factors are used by default when market-based emission factors are not provided by the user or required to be input into the FEM. Location-based and market-based emission factors are defined as follows:
- Location-based emission factors use the average emission factor for the energy/emission source (e.g. regional or national emission factors)
- Market-based emission factors consider contractual arrangements under which the organization procures power from specific sources (e.g. fossil fuels, renewable). These emission factors are typically specified in Energy Attribute Certificates (EACs), contracts such as a power purchase agreement (PPA), to purchase electricity from a specified generating facility, or provided as Supplier-Specific Emission Factors.
Additional information on the Higg FEM GHG emissions calculation methodology can be found on the howtohigg.org website here: https://howtohigg.cascale.org/resources-library/resources-library-fem-4-0-resources/
Reporting Energy Use in the FEM for Purchased Electricity, Purchased Renewables, Onsite Renewables and EACs
The following provides guidance on how to report, purchased electricity, purchased renewables, onsite renewables and relevant EACs in the FEM:
Notes on EACs and PPAs:
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Energy Attribute Certificates (EACs) is a general term for a variety of market-based instruments that represent how energy is generated and ownership of the attributes of that energy. EACs are certificates that represent the renewable energy attributes of a unit of electricity. They can be purchased separately from the electricity itself. The name and specific requirements for EACs are typically defined by the jurisdiction or program under which they are issued. EACs can be issued as part of government initiatives or be offered by independent third-party providers
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Power Purchase Agreement (PPAs) are contracts in which a company agrees to purchase electricity from an energy provider (e.g., renewable energy project), typically for a defined period of time and cost.
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In general, PPAs and EACs are both used to source renewable energy, however they work in different ways. These are reported separately in the Higg FEM to track the different types of instruments a facility uses to demonstrate renewable energy use.
Scenario 1
How Purchased Electricity should be reported if Purchased Renewables are also purchased through a PPA by the facility
The facility should report their Purchased renewables and answer the relevant sub questions under purchased renewables category.
If the facility purchases grid electricity in addition to purchased renewables, the additional grid electricity purchased should be reported under Purchased electricity.
Example: Facility A uses 100 MWh of Electricity within the facility, out of which 60MWh is from Purchased renewables connected to a PPA, and the remaining 40MWh is directly taken from the Electricity service provider without any renewable attributes.
The Facility should report their electricity consumption as below,
- Purchased Electricity = 40,000 kWh
- Purchased Renewables = 60,000 kWh
Scenario 2
How Purchased Electricity should be reported if EACs are also purchased and retired from an external party without any power purchase agreement for purchase of renewable electricity.
The facility should report their Purchased electricity under purchased electricity category.
The annual quantity of EACs purchased and retired under the facility name will need to be reported under the separate question on purchase of Energy Attribute certificates.
No deduction or addition of electricity usage is required in this situation.
Example: Facility B uses 100 MWh of Electricity within the facility, and also purchased and retired 40MWh of EACs.
The Facility should report their electricity consumption as below,
- Purchased Electricity = 100,000 kWh
- Report 40 MWh under the EAC question.
Note: The facility should NOT report any quantity under Purchased Renewables.
Scenario 3
How Purchased Electricity should be reported if Purchased Renewables are also purchased through a PPA by the facility, and the relevant EACs for the purchased renewables are also retired under the facility name.
The facility should report their Purchased electricity under purchased electricity category.
The facility should report their Purchased renewables and answer the relevant sub questions under purchased renewables category.
Since the EACs for the purchased renewables are also retired under the facility name, the facility should answer “Yes” to the sub question on ownership of the purchased renewables.
The Higg FEM has now accounted for both the Purchased Electricity and the Purchased Renewables.
The associated EACs of the Purchased Renewables should NOT be reported under the EAC question as the consumption and GHG reduction have already been considered when reporting both the consumption information.
Example: Facility C uses 100 MWh of Electricity within the facility, out of which 60MWh is from Purchased renewables connected to a PPA and associated EACs are also retired under the facility name, and the remaining 40MWh is directly taken from the Electricity service provider without any renewable attributes.
The Facility should report their electricity consumption as below,
- Purchased Electricity = 40,000 kWh
- Purchased Renewables = 60,000 kWh
Note: The facility should NOT report any EACs under the EAC question.
Scenario 4
How Purchased Electricity should be reported if Purchased Renewables are also purchased through a PPA by the facility, and additional EACs are purchased and retired under the facility name to offset the associated Scope 2 emissions from purchased electricity..
The facility should report their Purchased electricity under purchased electricity category.
The facility should report their Purchased renewables and answer the relevant sub questions under purchased renewables category.
The PPA should state that the ownership of the Renewable Energy or associated GHG Offsets are also transferred to the facility when purchasing the purchased renewables, if so, the facility should answer “Yes” to the sub question on ownership of the purchased renewables.
The Higg FEM has now accounted for both the Purchased Electricity and the Purchased Renewables.
The additional EACs purchased and retired under the facility name should be reported under the EAC question.
Example: Facility D uses 100 MWh of Electricity within the facility, out of which 60MWh is from Purchased renewables connected to a PPA and additional EACs are retired under the facility name for the remaining 40MWh that the facility purchases from the electricity service provider.
The Facility should report the their electricity consumption as below,
- Purchased Electricity = 40,000 kWh
- Purchased Renewables = 60,000 kWh
- In this case, The facility should report the 40MWh of EACs under the EAC question.
Note: No deduction or addition of electricity usage is required in this situation, the facilities GHG emissions will be calculated by the system, taking into consideration the GHG emissions from purchased electricity , the purchased renewables and the GHG reduction credits relevant for the purchased and retired EACs.
Scenario 5
How Purchased Electricity should be reported if a facility generates onsite renewable electricity and sells it to the grid without using it onsite, but registers the onsite renewable electricity under an EAC scheme and retires it under the facility name.
The facility should report their Purchased electricity under purchased electricity category.
The facility should NOT report the onsite generated renewable electricity under any of the onsite renewable electricity categories.
The EACs registered and retired under the facility name should be reported under the EAC question.
Example: Facility E uses 100 MWh of Purchased Electricity within the facility, and generates 20MWh of onsite solar PV electricity and exports the renewable electricity to the grid, while registering the onsite renewable electricity under an EAC scheme and retires them under the facility name,
The Facility should report their electricity consumption as below,
- Purchased Electricity = 100,000 kWh
- In this case, the facility should report the 20MWh of EACs under the EAC question.
Note: The facility should NOT report any consumption under Onsite Solar PV or deduct any electricity consumption from the purchased electricity.
Scenario 6
How Purchased Electricity should be reported if a facility generates onsite renewable electricity and uses it onsite, and also registers the onsite renewable electricity under an EAC scheme and retires it under the facility name.
The facility should report their Purchased electricity under purchased electricity category.
The facility should report the onsite generated renewable electricity under the relevant onsite renewable electricity categories.
The EACs registered and retired under the facility name should NOT be reported under the EAC question.
Example: Facility F uses 100 MWh of Purchased Electricity within the facility, and generates 20MWh of onsite solar PV electricity and uses it onsite, also while registering the onsite renewable electricity under an EAC scheme and retires them under the facility name,
The Facility should report their electricity consumption as below,
- Purchased Electricity = 100,000 kWh
- Onsite Solar PV = 20,000kWh
- Also indicate within the sub question for onsite solar PV that the facility has not sold the EACs to an external party.
Note: In this case, The facility should NOT report the 20MWh of EACs under the EAC question.
Scenario 7
How Purchased Electricity should be reported if a facility generates onsite renewable electricity and uses it onsite, and also registers the onsite renewable electricity under an EAC scheme and sells it to another organization which retires the credits under their name.
The facility should report their Purchased electricity under purchased electricity category.
The facility should report the onsite generated renewable electricity under the relevant onsite renewable electricity categories., also report whether the credits were sold to an external party and the relevant percentage of EACs sold to that party in the sub questions posted to the facility.
The facility should not report the EACs under the EAC question.
Example: Facility G uses 100 MWh of Purchased Electricity within the facility, and generates 20MWh of onsite solar PV electricity and uses it onsite, also it registered the onsite renewable electricity under an EAC scheme and sells EACs relevant for 15MWh to Facility H which retires them under Facility H. and the remaining 5MWh is retired under the Facility G.
The Facility should report their electricity consumption as below,
- Purchased Electricity = 100,000 kWh
- Onsite Solar PV = 20,000kWh
- Also indicate within the sub question for onsite solar PV that the facility has sold 75% of the EACs to an external party.
Note: In this case, The facility should NOT report the 20MWh of EACs under the EAC question, or even the 5MWh EACs that it retired under its own name.
Energy Data Quality
Accurately tracking and reporting energy use data over time provides facilities and stakeholders with detailed insight into opportunities for improvement. If data is not accurate, this limits the ability to understand the facility’s energy use footprint and identify the specific actions that will help reduce environmental impacts and drive efficiencies.
When establishing an energy tracking and reporting program, the following principles should be applied:
- Completeness – The tracking and reporting program should include all relevant sources (as listed in the FEM). Sources should not be excluded from data tracking and reporting should be based on materiality (e.g., small quantity exceptions).
- Accuracy – Ensure that the data input into the energy tracking program is accurate and is derived from credible sources (e.g., calibrated meters, established scientific measurement principles or engineering estimates, etc.)
- Consistency – Use consistent methodologies to track energy data that allows for comparisons of energy use over time. If there are any changes in the tracking methods, energy sources, or other operations that impact energy use data, this should be documented.
- Transparency – All data sources (e.g., energy bills, meter readings, etc.), assumptions used (e.g., estimation techniques), and calculation methodologies should be disclosed in data inventories and be readily verifiable via documented records and supporting evidence.
- Data Quality Management – Quality assurance activities (internal or external) should be defined and performed on energy data as well as the processes used to collect and track data to ensure reported data is accurate. For additional guidance on managing data quality, refer to Chapter 7 of the GHG Protocol a Corporate Accounting and Reporting Standard: Managing Inventory Quality.
The above principles are adapted from The Greenhouse Gas Protocol – Chapter 1: GHG Accounting and Reporting Principles (https://ghgprotocol.org/)
Applicability Questions
The following applicability question will only apply to facilities that have selected “Finished Product Assembler” AND “Finished Product Processing” as the only two facility types in the Site Info Section of the FEM.
1. Is your facility able to separately report energy consumption by each facility type?
- Yes
- No
Answer Yes If: Your facility tracks energy consumption separately for each different facility type selected in the Site Info Section of the FEM.
Higg FEM Level Progression
If your facility did not achieve Level 1 in this section, you will have the option to complete Level 2 and 3 questions and will be asked the following question:
Your facility has not achieved Level 1 within this section, the maximum score for this section will be limited to your answers in Level 1, You now have the option to answer Level 2 and Level 3 questions, would you prefer to proceed answering these additional questions?
If you Answer Yes: Level 2 and 3 questions will be available to answer in this section.
If you Answer No: Level 2 and 3 questions will not be available in this section.
Notes:
- If your facility did not achieve Level 1 in this section, answering Level 2 and 3 questions will not result in additional score beyond what you have already achieved in Level 1
- It is recommended that facilities consult with their business partners on whether they require responses to Level 2 and Level 3 questions, even though you have not achieved Level 1 in this specific section.
- Facilities are encouraged to complete Level 2 and Level 3 questions when possible as these can provide valuable insights on your facilities environmental performance and opportunities for improvement with the advanced Higg FEM aspects in Level 2 and 3.
Level 2
Energy Use
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Answer Yes if: Your Facility has set a baseline for one (1) or more energy sources.
If you answer Yes to this question, you will be asked to complete a series of tables with the following questions to provide details on your baselines for each applicable energy source (All applicable energy sources will be pre-populated in the tables):
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- Have you set a baseline for this energy source?
- Is this a normalized or absolute baseline?
- If normalized, are you setting separate baselines based on your facility type?
- Note: If your facility selected multiple facility types in the facility profile structure section of the FEM (e.g., Finished Product Assembler and Material Production), and you set baselines for each facility type, a separate table for baseline data will be displayed for each selected facility type.
For all energy sources that have baselines, you will be asked to complete a table with the following questions based on whether the baseline is absolute or normalized:
Suggested Uploads:
- Documentation that supports how the baseline was established for each energy source (e.g., energy use tracking data and production data from the baseline year, supporting calculations or assumptions used to determine the baseline).
What is the intent of the question?
The intent of this question is for facilities to demonstrate that they have established baselines for energy use at the facility so that future reduction efforts can be quantified.
Technical Guidance:
A “baseline” is a starting point or benchmark that a facility can use to compare changes over time and quantify any reduction efforts.
Baselines can be absolute or normalized. For example:
- Absolute: The total amount of energy consumption for a period of time. (e.g., 1,500,000 kWh per year or purchased electricity in the reporting year)
- Normalized: The amount of energy used while making a unit of product (for example, 0.15 kWh per pair of shoes produced).
Note: It is recommended to use the ‘Normalized’ method to account for operational fluctuations. Normalized baselines provide more accurate and useful comparisons over time.
When establishing a baseline, be sure to do the following:
- Confirm the energy source data is stable, and sufficient to be used to determine a baseline. In the Higg FEM, a baseline should generally comprise of a full calendar year’s data.
- Note: If your factory has undergone major structural or operational changes such as acquisition or changes in product type, in general, you should establish or reset a baseline after those changes have been completed.
- Determine if the baseline will be Absolute or Normalized (Normalized baselines are preferred)
- Verify the source data and normalizing metrics data is accurate.
- Energy and production volume data from previous Higg FEM verifications, internal or external audits conducted by qualified personnel are acceptable sources of data verification.
- Apply the appropriate baseline metric (i.e., per year for absolute OR divide by the chosen normalizing metric 1,500,000 kWh per 1,000,000 pieces = 1.5kWh/piece)
- Note: For energy consumption that is not related to production, other normalizing metrics should be used where appropriate (e.g., Natural gas consumption in the canteen can be normalized per meal served or per worker)
Note: If the baseline is used to evaluate performance against a target, the baseline should remain unchanged.
Reporting baseline data in Higg FEM:
Do:
- Review source data and raw normalizing metric data (utility invoices, meter logs, production quantity, etc.) against aggregated totals used to determine the baseline(s) to ensure they are accurate. (e.g., double check monthly energy consumption records to ensure they match the annual consumption quantities used to calculate the baseline).
- Select the appropriate baseline type in the FEM – Absolute or Normalized.
- Ensure the proper units are reported and verify any unit conversions from source data to reported data.
- Enter the baseline year. This is the year the baseline data represents.
- Provide sufficient details on how the baseline was calculated (e.g., electricity consumption was normalized per meter of fabric produced).
- Only select Yes to the question “Was the baseline verified?” if the baseline data was fully verified in a previous Higg FEM verification, or by an internal or external audit conducted by qualified personnel.
Do Not:
- Report a baseline that is not accurate (e.g., the data source is unknown or has not been verified)
- Report a baseline that is based on insufficient data (e.g., not a full year’s data).
- Report an estimated baseline if it is not supported by verifiable and accurate estimation methodology and data (e.g., engineering calculations).
How This Will Be Verified:
When verifying a facility’s baselines, Verifiers must review:
- All source data (utility invoices, metering logs, production quantity) and aggregated data totals for the baseline year; and/or
- Records of baseline data verification where available (e.g., previous Higg Verification, data quality review, internal or external audits, etc.)
If any inconsistencies or errors are noted, the reported information must be corrected where possible and detailed comments should be included in the Verification Data field.
Full Points:
Full Points will be awarded if the facility has established baselines for all energy sources.
Documentation Required:
- Documentation that supports how the baseline was established for each energy source. This may include:
- Energy use tracking and production data from the baseline year.
- Supporting calculations methodologies or assumptions used to determine the baseline.
- Supporting evidence to demonstrate how baseline data was validated (e.g., verified Higg FEM data for the baseline year, external or internal data validation process or report).
Interview Questions to Ask:
- Staff responsible for energy management are able to describe how the baselines were determined including any normalizing metrics used or any assumption made in the calculation methodology.
- Relevant staff are able to describe the facility’s process to validate the accuracy of baseline data.
Inspection – Things to Physically Look For:
- The observed energy management practices on-site are consistent with the facility’s reported methods for determining baselines (e.g., energy sources used, energy tracking methods/equipment, etc.)
- Observations on-site do not indicate that there have been significant changes at the facility that could impact the appropriateness of the baseline (e.g., new production areas, changes to products, new buildings, etc.)
Partial Points:
- Partial points will be awarded if the facility has established baselines for one (1) or more energy source.
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Answer Yes if: Your facility tracks the quantity of energy used at the facility and has established methodology to determine which processes or operations use the most energy at the facility.
If you answer Yes to this question, you will be asked to complete the following sub questions to provide details on the processes or operations that used the most energy at your facility:
- Does your facility utilize any of these to help you identify? (Select all that apply)
- Identifying individual machines that consume energy by creating a machinery list.
- Analyzing the power ratings of equipment multiplied by the hours of operation to estimate energy use.
- Installing electronic devices to track energy usage over time (e.g., data loggers, data recorders, or sub-meters)
- Hiring a certified professional energy engineer to conduct an energy assessment.
- Consolidating the energy consumption per manufacturing process/ machine type and sort them from highest consumption to lowest consumption.
- Other
- What quantity of energy/fuel use by this source during this reporting year?
- Unit of Measure
- Please upload the methodology for identifying the highest energy use factors.
- If you do not have a document to upload, describe your methodology.
- What are the highest energy use factors at your facility?
Suggested Uploads
- Documentation that demonstrates the facility’s methodology for determining the processes or operations that use the highest amount of energy. (e.g., energy consumption data that shows which equipment, processes, or operations that consume the most energy, copies of an energy audit/assessment conducted by an internal or external energy management specialist, etc.)
What is the intent of the question?
The intent of this question is for facilities to demonstrate that they have collected and analysed sufficient energy use data to determine which processes or operations consume the most energy at the facility.
Technical Guidance:
For sustainability efforts to mature, facilities should have processes in place to identify and rank their most significant energy consuming operations or processes (e.g., specific production processes, lighting, HVAC, boilers, etc.). Once a facility understands what operations or processes consume the most energy, it can strategically reduce energy consumption by prioritizing and targeting those operations or processes or replacing the energy source with renewable energy.
A facility can evaluate the highest energy consuming processes and operations by conducting a facility-wide assessment to map out and evaluate energy use from all production processes, equipment and operations.
When evaluating the energy use breakdown of processes and operations at your facility, the following are some key considerations:
- Identify individual equipment that consume energy by creating an equipment inventory list.
- Use manufacturers specifications (e.g., power usage ratings) and operating time to estimate energy use.
- Install electronic devices to track energy usage over time (e.g., energy meters or sub-meters, data loggers, etc.)
- Consolidate the energy consumption per process/ machine type and sort them from highest consumption to lowest consumption.
- Consider using external service providers to conduct an energy audit/assessment (e.g., a certified energy professional/engineer).
How This Will Be Verified:
Full Points:
Documentation Required:
- Documentation that shows the facility has analysed a breakdown of energy use at the facility by equipment, process and/or operations that identifies the highest energy use factors at the facility. This may include:
- Equipment list with energy use rating for equipment.
- Energy consumption data based on facility operations for all equipment, process and/or operations.
- Manufacturers specifications with energy use ratings for facility equipment (if used to calculate energy consumption)
- Energy audit/assessment report(s) conducted by an internal or external energy management specialist conducted within the past 5 years.
Note: If the facility has undergone any significant changes (e.g., new processes/equipment, expansion, etc.) the analysis and ranking of highest energy use factors should reflect the facilities operations in the Higg FEM reporting year.
Interview Questions to Ask:
- Staff responsible for energy management are able to describe how energy use from equipment, process and/or operations was analysed and the methodology for determining the highest energy use factors at the facility.
Inspection – Things to Physically Look For:
- The observed energy use and equipment, process and operations on-site are consistent with the facility’s reported methodology for determining the highest energy use factors at the facility (e.g., energy metering or submetering)
- Observations on-site do not indicate that there have been significant changes at the facility that could impact the appropriateness of the energy use analysis.
Partial Points: N/A
- Does your facility utilize any of these to help you identify? (Select all that apply)
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Answer Yes if: Your facility has set a target to improve energy use for one (1) or more energy sources.
Note: If your facility has not conducted a formal evaluation of energy improvement opportunities and calculated how much energy consumption can be reduced to support your target, you should select No for this question.
If you answer Yes to this question, you will be asked to complete a series of tables with the following questions to provide details on your targets for each applicable energy source (All applicable energy sources will be pre-populated in the tables):
- Which energy source does your facility set targets on? (Ref ID: entargettable)
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- Have you set a target for this energy source?
- Is this a normalized or absolute target?
- If normalized, are you setting separate targets based on your facility type?
- Note: If your facility selected multiple facility types in the facility profile structure section of the FEM (e.g., Finished Product Assembler and Material Production), and you set targets for each facility type, a separate table for target data will be displayed for each selected facility type.
For all energy sources that have targets, you will be asked to complete a table with the following questions based on whether the target is absolute or normalized:
Suggested Uploads:
- Documentation that supports how the target was established and demonstrates the target is based on a formal evaluation of improvement opportunities (e.g., energy use data and baselines, new/proposed equipment specifications or work practices, plans to utilize renewable energy, etc.)
What is the intent of the question?
The intent of this question is for facilities to demonstrate that they have established formal targets to improve energy use at the facility.
Technical Guidance:
Targets can use absolute or normalized metrics to drive quantifiable improvements by a set date compared to the baseline. For Higg FEM, reduction targets may be normalized to the production volume unit or another appropriate operational metric. A normalized target shows you when progress is real, rather than being a result of business changes such as reductions in production. An example of a normalized target is kWh of energy used to produce one kilogram of sellable product (kWh/kg).
When establishing formal improvement targets, be sure to do the following:
- Base the target on a formal evaluation of improvement opportunities and actions (e.g., equipment replacement or upgrades) to calculate the amount of energy that can be reduced.
- For example: Setting a target based on an evaluation of a boiler replacement that is expected to provide a 10% reduction in annual energy consumption per piece that was calculated based on a formal review of the boiler manufacturer’s specifications and the expected operating load.
- Define the exact target quantity, expressed as a percent (e.g., reduce normalized electricity consumption per piece by 5%). This must be based on a formal evaluation as noted above.
- Determine if the target will be Absolute or Normalized to a production or operating metric.
- Define the start date (i.e., “baseline”) of the target.
- Define the end date of the target, meaning the intended completion date of the required improvements.
- Define the appropriate measurement units.
- Establish procedures to review the target. This review should include an evaluation of the actions taken and progress on reaching the defined target. Quarterly reviews are recommended.
- Ensure the target is relevant to reducing the site’s energy use (e.g., focuses on the most significant energy use factors at the site)
Reporting Targets in Higg FEM:
Do:
- Review the target to ensure all aspects noted above are covered and that the information is accurate.
- Enter the targeted reduction or improvement as a percentage. Make sure to enter a negative percentage for a reduction target (e.g., -5 for a 5% reduction), and a positive percentage for an increased usage target (e.g., 5 for a 5% increase in usage).
- Provide sufficient details on how the target will be met in the “Describe the measures planned to achieve this target:” field (e.g., Achieve a 3% reduction in normalized electricity consumption by replacing 500 T8 lights with LED lights).
Do Not:
- Report a target that is not accurate (e.g., the data source is unknown or has not been verified)
- Report a target that is based on insufficient data. (e.g., a reduction target that is not based on a formal evaluation of options such as equipment upgrades to meet the stated target OR actions to meet the target have not been defined.)
- Report an estimated target if it is not supported by verifiable and accurate estimation methodology and data (e.g., engineering calculations).
How This Will Be Verified:
When verifying a facility’s targets, Verifiers must review:
- All supporting evidence (e.g., calculations, energy use and baselines, new/proposed equipment specifications, etc) to verify the target is based on a formal evaluation of improvement opportunities.
- Facility operations in relation to its energy sources and use to ensure targets and opportunities evaluated are relevant to the site’s energy use.
If any inconsistencies or errors are noted, the reported information must be corrected where possible and detailed comments should be included in the Verification Data field.
Full Points:
Full Points will be awarded if the facility has established targets for all energy sources and the targets cover greater than 90% (by total energy use in MJ) of energy used at the facility.
Documentation Required:
- Documentation that supports how the target was established for each energy source and is based on a formal evaluation of reduction opportunities. This may include:
- Energy tracking and production data.
- Documented evaluations of new/proposed equipment specifications, modifications to production processes or work practices that will result in energy use improvements.
- Supporting calculations methodologies or assumptions used to determine the target.
Interview Questions to Ask:
- Staff responsible for energy management are able to describe how the targets were determined including any calculations or assumptions made in the target setting methodology.
- Relevant staff are able to describe the facility’s proposed actions to achieve the target and how progress is monitored and tracked.
Inspection – Things to Physically Look For:
- The observed energy management practices on-site are appropriate in relation to the established targets (e.g., energy sources and tracking of energy use, etc.)
Partial Points:
- Partial points will be awarded if the facility has established targets for one (1) or more energy source and the targets cover 50% to 89% (by total energy use in MJ) of energy used at the facility.
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Answer Yes if: Your facility has calculated your Scope 1 and 2 GHG emissions to establish as baseline and set a target to reduce Scope 1 and 2 GHG emissions.
Note: If your facility has not calculated your Scope 1 and 2 GHG baselines or conducted a formal evaluation of GHG reduction opportunities and calculated how much GHG emissions can be reduced to support your target, you should select No for this question.
If you answer Yes to this question, you will be asked to complete the following questions to provide details on your GHG reduction target:
- What is your overall GHG emission baseline quantity (in Metric Tons of CO2e)?
- What is your baseline year?
- What is your target for reducing your facility’s overall GHG emissions (in Metric Tons CO2e) for Scopes 1 and 2?
- What is your target year?
- What is your target for change (in %)? (Enter negative value for reduction target or positive value for increased target)
- Is this a normalized or absolute target?
- Describe the measures planned to achieve this target.
Suggested Uploads:
- Documentation that supports how the target was established and demonstrates the target is based on a formal evaluation of GHG reduction opportunities (e.g., GHG emission data and baselines, plans to utilize energy sources with lower GHG emissions, new/proposed equipment specifications, etc.)
What is the intent of the question?
The intent of this question is for facilities to demonstrate that they have established formal targets to reduce Scope 1 and 2 GHG Emissions from the facility.
Technical Guidance:
For this question in the FEM, the focus is on targets to reduce GHG emissions from Scope 1 and 2 sources which are defined by the GHG Protocol Corporate Standard below. Emissions from Scope 3 GHG sources (e.g., business travel, purchased services, or materials, etc.) should not be included.
- Scope 1 Emissions – Direct emissions from owned or controlled sources (e.g., combustion of fuel in onsite boilers, generators, company vehicles).
- Scope 2 Emissions – Indirect emissions from the generation of purchased energy (e.g., purchased electricity or steam).
Targets can use absolute or normalized metrics to drive quantifiable improvements by a set date compared to the baseline. For Higg FEM, reduction targets may be normalized to the production volume unit or another appropriate operational metric. An example of a normalized target is kilograms of CO2e released during production of one kilogram of sellable product (kg CO2e/unit)
When establishing formal improvement targets, be sure to do the following:
- Base the target on a formal evaluation of improvement opportunities and actions (e.g., switching to cleaner fuels).
- For example: Setting a target based on an evaluation of a boiler replacement that is expected to provide 10% reduction in annual GHG emission that was calculated based on a formal review of the boiler manufacturer’s specifications and the expected operating load.
- Define the exact target quantity, expressed as a percent (e.g., reduce normalized GHG emissions (kg of CO2e/unit) by 4%). This must be based on a formal evaluation as noted above.
- Determine if the target will be Absolute or Normalized to a production or operating metric.
- Define the start date (i.e., “baseline”) of the target.
- Define the end date of the target, meaning the intended completion date of the required improvements.
- Define the appropriate measurement units.
- Establish procedures to review the target. This review should include an evaluation of the actions taken and progress on reaching the defined target. Quarterly reviews are recommended.
- Ensure the target is relevant to reducing the site’s overall GHG emissions (e.g., focuses on the highest GHG emissions sources at the site)
Reporting Targets in Higg FEM:
Do:
- Review the target to ensure all aspects noted above are covered and that the information is accurate.
- Enter the targeted reduction or improvement as a percentage. Make sure to enter a negative percentage for a reduction target (e.g., -5 for a 5% reduction).
- Select the appropriate target type in the FEM – Absolute or Normalized.
- Provide sufficient details on how the target will be met in the “Describe the measures planned to achieve this target:” field (e.g., Reduce normalized GHG emissions (Tons of CO2e/unit) by 15% by switching to natural gas-fired boilers).
Do Not:
- Report a target that is not accurate (e.g., the data source is unknown or has not been verified)
- Report a target that is based on insufficient data (e.g., a reduction target that is not based on a formal evaluation of options such as equipment upgrades/switching fuel sources to meet the stated target OR actions to meet the target have not been defined.)
- Report an estimated target if it is not supported by verifiable and accurate estimation methodology and data (e.g., engineering calculations).
How This Will Be Verified:
When verifying a facility’s GHG reduction targets, Verifiers must review:
- All supporting evidence (e.g., calculations, GHG inventories and baselines, new/proposed equipment specifications, etc) to verify target is based on a formal evaluation of improvement opportunities.
- Facility operations in relation to its GHG emissions to ensure targets and opportunities evaluated are relevant to the site’s GHG emissions.
If any inconsistencies or errors are noted, the reported information must be corrected where possible and detailed comments should be included in the Verification Data field.
Full Points:
Documentation Required:
- Documentation that supports the facility’s GHG baseline and how the target was established and is based on a formal evaluation of GHG reduction opportunities. This may include:
- Scope 1 and 2 GHG emission tracking and baseline data.
- Documented evaluations of new/proposed equipment specifications, plans to utilize energy sources with lower GHG emissions, modifications to production processes or work practices that will result in GHG emissions reductions.
- Supporting calculations methodologies or assumptions used to determine the target.
Interview Questions to Ask:
- Staff responsible for energy/GHG management are able to describe how the facility’s Scope 1 and 2 GHG baselines was established and how GHG reduction targets were determined including any calculations or assumptions made in the target setting methodology.
- Relevant staff are able to describe the facility’s proposed actions to achieve the target and how progress is monitored and tracked.
Inspection – Things to Physically Look For:
- The observed energy/GHG management practices on-site are appropriate in relation to the established targets (e.g., energy sources and tracking of energy use and GHG emissions, etc.)
Partial Points: N/A
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Answer Yes if: Your facility has a current documented plan with defined actions that your facility is planning to implement to improve energy use and/or GHG emissions and has started work on all the action items listed in the plan.
Answer Partial Yes if: Your facility has a documented plan in place with defined actions and has started work on at least one (1), but not all of the listed actions in the plan.
If you answer Yes or Partial Yes to this question, you will be asked to upload a copy of your implementation plan.
Suggested Uploads:
- A copy of the implementation plan that includes details of the specific actions the facility plans to take to improve energy use and/or GHG emissions implementation timelines.
- Documentation to support the calculated energy use or GHG emissions reductions from actions listed in the plan (e.g., specification from new equipment, process modifications, etc.)
What is the intent of the question?
The intent of this question is for facilities to demonstrate that they have identified and evaluated energy use improvements and/or GHG emissions reduction opportunities and have established formal plans with defined actions to improve energy use and/or GHG emissions from the facility.
Technical Guidance:
Creating an implementation plan includes the process of reviewing and evaluating available options to improve energy use and/or GHG emissions. The key steps of creating an implementation plan should include the following:
- Identify improvement opportunities through internal assessment by qualified personnel or third-party experts.
- Evaluate improvement options to determine the most suitable options (e.g., feasibility studies, cost benefit analyses)
- Approve funds/budget for chosen options.
- Create a timeline and define the actions needed to implement the solution and realize reductions.
- Conduct regular reviews of the implementation plan check on progress.
Some examples of actions that can results in energy use and/or GHG emissions improvements include:
- Generating and or utilizing energy sources that result in lower GHG emissions (e.g., renewables, alternative fuels).
- Heat/energy recovery (from hot water, steam, exhaust gases)
- Steam condensate collection & recovery
- Optimizing compressed air systems
- Insulating piping
- Energy efficient lighting
Resources:
Additional resources with examples of opportunities to reduce GHG emissions and an implementation plan template that can be used are provided below:
- Apparel Impact Institute – Clean by Design: https://apparelimpact.org/news-resources/?category=clean-by-design
- Implementation plan template: https://howtohigg.org/resources/resources-library/#templates
How This Will Be Verified:
Full Points:
Full Points will be awarded if the facility has an implementation and has started work on all the action items listed in the plan.
Documentation Required:
- An implementation plan that includes details of the specific actions the facility plans to take to improve energy use and/or GHG emissions. This may include:
- Documentation of the energy consumption or GHG emissions specifications or calculated emissions estimates from proposed new equipment or alternative energy sources included in the implementation plan that show the expected improvements.
- Implementation timelines (i.e., the planned start and completion dates for actions listed in the plan).
Notes:
- Actions to improve energy use and/or GHG emissions should not consider improvements due to reductions in production volume or equipment operating time as these factors will not result in sustainable improvements.
- If the facility has completed all actions in the plan prior to reporting year and does not have an implementation plan for improvements in the reporting year and beyond, a No response should be selected (i.e., points are not awarded for historical plans that were implemented prior to the reporting year).
Interview Questions to Ask:
- Staff responsible for the implementation plan can explain the facility’s process for evaluating improvement opportunities and the facility’s implementation plans and actions to improve energy use and/or GHG emissions.
Inspection – Things to Physically Look For:
- The actions listed in the implementation plans directly relate to the observed energy use and GHG emission sources onsite.
Partial Points: N/A
Partial Points:
Partial Points will be awarded if the facility has an implementation plan that meets the above requirements and has started work on at least one (1), but not all of the listed actions in the plan.
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Answer Yes if: Your facility has conducted an energy audit within the past five (5) years that was performed by a qualified (internal or external) energy professional (e.g., a certified energy professional/engineer) and the audit scope meets the criteria of an ASHRAE Level 2 or above (or equivalent) energy audit.
Note: The 5 year timeline should be counted based on the Higg FEM reporting year. For example, for FEM 2025 (which reports environmental data from 2025), the energy audit must have been conducted in or after 2021. This is based on the year not the date of the energy audit report or Higg FEM Verification.
If you answer Yes to this question, you will be asked to upload a copy of your energy audit report.
Suggested Uploads
- Copy the energy audit report.
What is the intent of the question?
The intent of this question is for facilities to demonstrate that they have conducted an ASHRAE Level 2 or above (or equivalent) energy audit within the past five (5) years that was performed by a qualified (internal or external) energy professional (e.g., a certified energy professional/engineer).
Technical Guidance
An energy audit is a systematic review of a facility’s energy use to identify areas of inefficiency and opportunities for improvement. An energy audit uses the principles of effective energy management systems and audit processes, such as ASHRAE Standard 211-2018, or ISO 50002 to help identify inefficiencies and define energy strategies for reducing energy consumption and operating costs. An energy audit must be conducted by qualified individuals that understand the various equipment, processes, and energy systems used within a facility and have the technical knowledge to identify and recommend improvements for overall energy systems performance.
In general, an energy audit report should include the key aspects listed below:
- Facility Description (e.g., building envelope and energy systems)
- An energy analysis (e.g., historical energy use data, energy balance of a facility to determine energy consumption, demand, and profile of energy use)
- Proposal and recommendations for available energy efficiency measures.
- Detailed information feasibility and justification for investment in energy efficiency measures (e.g., financial and cost benefit analysis, estimated return on investment, etc.)
Level 1, 2 and 3 Energy Audit are defined as:
- Level 1 – Walk-Through Survey
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- A Level 1 audit is a simple audit that involves a basic walk-through assessment, review of utility bills and other applicable operating data, and interviews with operations staff. This basic evaluation is designed to identify glaring energy problems. With the detail of this audit, low-cost upgrades are proposed, energy efficiency projects can be prioritized, and it is determined if a more detailed audit is necessary.
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- Level 2 – Energy Survey and Analysis
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- A Level 2 audit builds on the level 1 analysis with more detailed energy calculations and added financial analysis of proposed energy measures. This level of audit uses utility data over a longer period of time so that the auditor can better understand the building’s energy use. The financial analysis at this level of audit is used to build the business case for implementing energy measures.
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- Level 3 – Detailed Analysis of Capital-Intensive Modifications
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- A Level 3 audit builds on the Level 2 audit by doing a more in-depth analysis of energy use in the building. This can include sub-metering of major energy systems. The added level of detail in the analysis of the existing building and proposed energy measures means that cost and savings have an increased level of accuracy. This level of detail can provide higher quality, more accurate data, which is valuable for major energy projects that can be capital intensive.
Details on the required elements of an ASHRAE Level 2 energy audit and report can be found in ASHRAE Standard 211-2018 – Standard for Commercial Building Energy Audits https://www.techstreet.com/ashrae/standards/ashrae-211-2018-ra2023?product_id=2567434 An FAQ on ASHRAE Energy Audits can be found here: https://www.ashrae.org/File%20Library/Technical%20Resources/Technical%20FAQs/TC-07.06-FAQ-95.pdf
Resources:
Resources that provide additional information on energy auditing are provided below.
Note: The resources and examples provided below are for informational purposes only and do not constitute an endorsement by Cascale.
- ASHRAE Standard 211-2018 – Standard for Commercial Building Energy Audits https://www.techstreet.com/ashrae/standards/ashrae-211-2018-ra2023?product_id=2567434
- ISO 50002:2014 Energy audits – Requirements with guidance for use: https://www.iso.org/standard/60088.html
- EU Standard EN 16247-1 Energy audits – Part 1: General requirements https://www.en-standard.eu/din-en-16247-1-energy-audits-part-1-general-requirements/
- US EPA Lean & Energy Toolkit: Chapter 4 – Energy and Greenhouse Gas Assessment Strategies – https://www.epa.gov/sustainability/lean-energy-toolkit-chapter-4
- Association of Energy Engineers – https://www.aeecenter.org/
How This Will Be Verified:
Full Points:
Documentation Required:
- Copy of an energy audit report that meets the following criteria:
- Meets the criteria of an ASHRAE Level 2 (or equivalent) energy audit.
- Conducted within the past five (5) years from the Higg FEM reporting year.
- For example, for FEM 2025 (which reports environmental data from 2025), the energy audit must have been conducted in or after 2021.
- Was performed by a qualified (internal or external) energy professional (e.g., a certified energy professional/engineer).
- If conducted internally, documentation to support the qualifications of internal staff who performed the audit (e.g., professional energy auditor certification or accreditation).
Interview Questions to Ask:
- Staff conducting or coordinating the energy audit understand the contents of the report and can explain the facility’s process for coordinating or conducting the energy audit (internally or externally).
Inspection – Things to Physically Look For:
- The contents of the audit report are consistent with the observed energy sources and use onsite.
Partial Points: N/A
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Answer Yes if: Your facility has a current documented plan with defined actions that your facility is planning to implement to phase-out the use of coal.
Note: This question is only applicable to facilities that have selected coal or coal water slurry as energy sources.
If you answer Yes to this question, you will be asked the following questions to provide details on your coal phase-out plan:
- Has your facility done any financial/cost analysis on replacing coal as an energy source?
- What is your plan and what are your steps to phase-out?
- Please upload your plan and financial analysis
- What is your final date to complete your Coal phase-out?
Suggested Uploads:
- A copy of the phase-out plan that includes details of the specific actions the facility plans to take to phase-out coal use.
- Other documentation supporting the plan (e.g., financial analysis of replacing coal, new/proposed equipment specifications, etc)
What is the intent of the question?
The intent of this question is for facilities to demonstrate that they have evaluated options to phase out coal and have established formal plans with defined actions to phase-out coal use at the facility.
Technical Guidance:
Eliminating the use of coal and transitioning to cleaner energy sources is a key goal of many international initiatives to reduce GHG emissions and combat climate change. Facilities that currently use coal as an energy source are encouraged to proactively seek cleaner energy alternatives to support this goal.
Creating an implementation plan includes the process of reviewing and evaluating available options to improve energy use and/or GHG emissions. The key steps of creating an implementation plan should include the following:
- Identify available options to phase-out coal use through internal assessment by qualified personnel or third-party experts.
- Evaluate phase-out options to determine the most suitable options (e.g., feasibility studies, cost benefit analyses)
- Approve funds/budget for chosen options.
- Create a timeline and define the actions needed to phase out coal use.
- Conduct regular reviews of the implementation plan check on progress.
How This Will Be Verified:
Full Points:
Full points will be awarded if the facility has a documented coal phase-out plan that includes the following:
- A list of defined steps or actions that the facility plans to take to phase-out coal use.
- A financial analysis of the options/action needed to phase-out coal use.
- A targeted date to complete the phase-out.
Documentation Required:
- A copy of the phase-out plan that includes details of the specific actions the facility plans to take to phase-out coal use.
- Other documentation supporting the plan (e.g., financial analysis of replacing coal, new/proposed equipment specifications, etc)
Interview Questions to Ask:
- Staff responsible for the phase-out plan can explain the facility’s process for evaluating phase out options and the facility’s planned actions to phase-out coal use.
Inspection – Things to Physically Look For:
- The actions listed in the plans are consistent with the observed coal use onsite.
Partial Points: N/A
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Answer Yes if: Your Facility has improved energy consumption for one (1) or more of your energy sources compared with your baseline.
Note: Improvements in energy consumption due to reductions in production volume should not be considered as improvements as this will not result in sustainable improvements.
If you answer Yes to this question, you will be asked to complete a table with the following questions to provide details on your consumption improvements for each applicable energy source:
- This is your reported baseline quantity.
- This is your reported unit of measure.
- This is your reported baseline year.
- Note: The above data will be auto-populated in the table based on your reported baseline data.
- Has your facility improved energy consumption for this source compared with its baseline?
- What is your achievement for change (in %) in energy use from this source compared to its baseline? (Enter a negative value for reduction and a positive value for increase
- Describe the strategies used to achieve this improvement.
Note: If your facility selected multiple facility types in the facility profile structure section of the FEM (e.g., Finished Product Assembler and Material Production), a separate table for improvement data will be displayed for each selected facility type.
Suggested Uploads:
- Documentation that supports an energy consumption improvement was achieved and that the improvement was related to specific actions taken by the facility to improve energy use (e.g., energy consumption data and baselines, evidence of process modifications, new equipment or work practices or increases in cleaner/renewable energy use that resulted in improvements).
What is the intent of the question?
The intent of this question is for facilities to demonstrate that they have improved energy consumption at the facility.
Technical Guidance:
Improvements can be absolute or normalized, however it is recommended that you show normalized reductions such as “electricity used was reduced by 0.015 kWh/unit in the reporting year.” .
When evaluating your energy improvements, be sure to do the following:
- Review the energy source data and aggregated total to ensure the data and any automated calculations are accurate.
- Review the actions taken to make improvements and determine if they have resulted in measurable improvements by comparing the data with historical energy use data to determine the improvement quantity. Note: Historical data accuracy should also be verified.
- For example: Optimizing the facility’s compressed air system and reducing the operating pressure by 5psi produced a 5.3% year over year reduction in energy consumed by air compressors on-site or a 1.5% reduction in energy consumed per unit of production. This was measured by the sub-meters installed in compressor rooms.
Reporting Improvements in Higg FEM:
Do:
- Review the improvement data to ensure all aspects noted above are covered and that the information is accurate.
- Input the percent (%) change in the energy consumption from the baseline year. (e.g., -5 for a 5% reduction or 5 for a 5% increase)
- Provide sufficient details in the “Describe the strategies used to achieve this improvement:” field (e.g., Normalized electricity consumption was reduced by optimizing the facility’s compressed air system).
Do Not:
- Report improvements that are not accurate (e.g., the data source is unknown or has not been verified)
- Report an improvement that is absolute and relates to a decrease in production or reduced facility operations. This is why data normalization is important.
- Report an improvement that is based on insufficient data. (e.g., an overall reduction was achieved but this was not related to measurable or defined actions taken to achieve the reduction). This is particularly important when the improvements are marginal (e.g., less than 1-2%) and possibly attributable to measurement/ tracking errors and/or operational variability.
How This Will Be Verified:
When verifying a facility’s improvements, Verifiers must review:
- All supporting evidence (e.g., energy use data and baselines, etc.) to verify the reported improvement quantity is accurate and attributable to measurable actions taken to improve energy use.
- The implemented changes or actions taken to achieve the improvements.
If any inconsistencies or errors are noted, the reported information must be corrected where possible and detailed comments should be included in the Verification Data field.
Full Points:
Full Points will be awarded if the facility has reduced/improved energy consumption compared with the baseline quantity and achieved year over year improvements for all energy sources.
Note: Points are automatically calculated in the Higg FEM and awarded for an improvement of any amount (i.e., scoring is not based on the amount of the improvement achieved).
Documentation Required:
- Documentation that demonstrates improvements were achieved for each applicable energy source and result from specific actions taken by the facility to improve energy consumption. This may include:
- Energy tracking data showing improvements in energy consumption.
- Documented evidence of facility actions to improve energy consumption (e.g., evidence of process modifications, new equipment or work practices or increases in cleaner/renewable energy use that resulted in improvements).
- Supporting calculations methodologies or assumptions used to determine the improvements.
Interview Questions to Ask:
- Staff responsible for energy management are able to describe how improvements were achieved including any calculations or assumptions made determining the improvements.
Inspection – Things to Physically Look For:
- Onsite observations that indicate the facility has implemented the noted actions to improve energy consumption (e.g., process modifications, new equipment or work practices or increases in cleaner/renewable energy use).
Partial Points:
Partial Points will be awarded if the facility has achieved improvements in energy consumption compared with the baseline quantity or achieved year over year improvements for one (1) or more energy sources.
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Answer Yes if: Your Facility has reduced Scope 1 and 2 GHG emissions in the reporting year compared with your baseline.
Notes:
- Reductions attributed to phase out or reductions in refrigerant emission (i.e., Replacement of high GWP refrigerants with more sustainable alternatives) can be included in this question.
- Reductions in GHG emissions due to reductions in production volume should not be considered as improvements as this will not result in sustainable improvements.
If you answer Yes to this question, you will be asked to complete the following questions to provide details on your GHG reductions:
- Your reported overall GHG emissions baseline quantity (in Metric Tons CO2e)
- Your reported baseline year
- Note: The above data will be auto-populated in the table based on your reported baseline data.
- How much (in Metric Tons CO2e) have you reduced in this reporting year compared to its baseline?
- Is this a normalized or absolute reduction?
- Please describe the strategies used to achieve this improvement.
Suggested Uploads:
- Documentation that supports GHG reductions were achieved and that the reduction was related to specific actions taken by the facility to reduce GHG emissions (e.g., GHG emission data and baselines, evidence of process modifications, new equipment or increases in cleaner/renewable energy use that resulted in reductions).
What is the intent of the question?
The intent of this question is for facilities to demonstrate that they have reduced Scope 1 and 2 GHG emissions from the facility.
Technical Guidance:
Reductions can be absolute or normalized, however it is recommended that you show normalized reductions such as “GHG emissions were reduced by 0.005 Tons of CO2e/unit in the reporting year.”.
When evaluating your GHG emission reductions, be sure to do the following:
- Review the GHG source data and aggregated totals to ensure the data and any automated calculations are accurate.
- Review the actions taken to make improvements and determine if they have resulted in measurable improvements by comparing the data with historical GHG emission data to determine the improvement quantity. Note: Historical data accuracy should also be verified.
- For example: Switching to natural gas fired boilers from coal boilers reduced GHG emissions by 5,000 Tons of CO2e compared with the previous year.
Reporting Improvements in Higg FEM:
Do:
- Review the improvement data to ensure all aspects noted above are covered and that the information is accurate.
- Input the amount of GHG emissions reduced in metric tons of CO2e.
- Provide sufficient details in the “Describe the strategies used to achieve this improvement:” field (e.g., Normalized GHG emissions reduced by switching to natural gas boilers or utilizing renewable energy sources).
Do Not:
- Report reductions that are not accurate (e.g., the data source is unknown or has not been verified)
- Report reduction that is absolute and relates to a decrease in production or reduced facility operations. This is why data normalization is important.
- Report an improvement that is based on insufficient data. (e.g., an overall reduction was achieved but this was not related to measurable or defined actions taken to achieve the reduction). This is particularly important when the improvements are marginal (e.g., less that 1-2%) and possibly attributable to measurement/ tracking errors and/or operational variability.
How This Will Be Verified:
When verifying a facility’s improvements, Verifiers must review:
- All supporting evidence (e.g., GHG emission data and baselines, etc.) to verify the reported improvement quantity is accurate and attributable to measurable actions taken to reduce GHG emissions.
- The implemented changes or actions taken to achieve the improvements.
If any inconsistencies or errors are noted, the reported information must be corrected where possible and detailed comments should be included in the Verification Data field.
Full Points:
Full Points will be awarded if the facility has reduced GHG emissions compared with the baseline quantity and achieved a year over year reduction in GHG emissions.
Note: Points are automatically calculated in the Higg FEM and awarded for reductions of any amount (i.e., scoring is not based on the amount of the reduction achieved).
Documentation Required:
- Documentation that demonstrates reductions in GHG emissions were achieved and resulted from specific actions taken by the facility to reduce GHG emissions. This may include:
- GHG emissions tracking data showing reductions.
- Documented evidence of facility actions to reduce GHG emissions (e.g., evidence of process modifications, new equipment or increases in cleaner/renewable energy use that resulted in reductions).
- Supporting calculations methodologies or assumptions used to determine the reductions.
Interview Questions to Ask:
- Staff responsible for energy and GHG management are able to describe how reductions were achieved including any calculations or assumptions made determining the reduction quantity.
Inspection – Things to Physically Look For:
- Onsite observations that indicate the facility has implemented the noted actions to reduce GHG emissions (e.g., process modifications, new equipment or increases in cleaner/renewable energy use).
Partial Points:
Partial Points will be awarded if the facility has achieved GHG reductions compared with the baseline quantity or achieved a year over year reduction in GHG emissions.
Level 3
Energy Use
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Answer Yes if: Your facility has calculated Scope 3 GHG emissions in the reporting year from all material upstream and downstream Scope 3 sources and there is supporting evidence to justify any exclusions based on materiality.
Answer Partial Yes if: Your facility has calculated Scope 3 GHG emissions in the reporting year from all material upstream Scope 3 sources and there is supporting evidence to justify any exclusions based on materiality.
Note: If your facility has not conducted an evaluation to identify all applicable upstream and/or downstream Scope 3 GHG emission sources and calculated the associated GHG emission in accordance with a recognized methodology such as the GHG Protocol Corporate Value Chain (Scope 3) Standard, you should answer No to this question.
If you answer Yes or Partial Yes to this question, you will be asked to complete the following sub questions to provide details on your scope 3 GHG emissions:
- Report your facility’s annual Scope 3 GHG emissions in Metric Tons CO2e here:
- Please describe your Scope 3 calculation
Suggested Uploads:
- Documentation that supports your calculation of scope 3 GHG emissions in the reporting year (e.g., Scope GHG emission totals, inventory of scope 3 sources with associated operational data and emission factors used, etc.).
What is the intent of the question?
The intent of this question is for facilities to demonstrate that they have identified and calculated scope 3 GHG emissions.
Technical Guidance:
Calculating Scope 3 emissions associated with a facility’s operations is particularly important for the manufacturing industry because it provides insights on the environmental impact associated with the manufacturing and consumption of a product including upstream and downstream operations. All relevant upstream and downstream business activities (except in-house manufacturing) should be captured to calculate the Scope 3 footprint.
The GHG Protocol Corporate Value Chain (Scope 3) Standard allows companies to assess the emission impact of its entire value chain. The Scope 3 standard focuses on the following:
- Upstream emissions which are indirect GHG emissions related to purchased or acquired goods and services.
- Downstream emissions which are indirect GHG emissions related to sold goods and services.
In the Standard, upstream and downstream sources are further subdivided into 15 main categories as follows:
Upstream Scope 3 Emission Sources
1. Purchased goods and services
2. Capital goods
3. Fuel- and energy-related activities (Not included in scope 1 or scope 2)
4. Upstream transportation and distribution
5. Waste generated in operations
6. Business travel
7. Employee commuting
8. Upstream leased assets
Downstream Scope 3 Emission Sources
9. Downstream transportation and distribution
10. Processing of sold products
11. Use of sold products
12. End-of-life treatment of sold products
13. Downstream leased assets
14. Franchises
15. Investments
The GHG Protocol Scope 3 Evaluator (http://www.ghgprotocol.org/scope-3-evaluator ) is a tool that can be used to help identify and estimate GHG emissions from Scope 3 Sources.
In order to be able to answer Yes to this question, Scope 3 GHG must be calculated and reported in accordance with the Corporate Value Chain (Scope 3) Standard. This includes:
- Calculating GHG emissions from all Scope 3 emissions sources (as defined by Chapter 5 & 6 of the Standard)
- Scope 3 emissions are reported in accordance with the requirements defined in Chapter 11 of the Standard including a list of scope 3 activities excluded from the reporting with justification for their exclusion.
How This Will Be Verified:
When verifying a facility’s Scope 3 GHG emission reporting, Verifiers must review:
- The reporting methodology and scope to ensure that it aligns with the requirements outlined in the Corporate Value Chain (Scope 3) Standard. This includes:
- The minimum reporting boundaries/requirements for scope 3 sources and categories
- Required documentation for any excluded scope 3 categories or activities excluded from the inventory that justifies their exclusion.
Full Points:
- Full points will be awarded if the facility has calculated Scope 3 GHG Emissions from all material upstream and downstream Scope 3 sources and there is supporting evidence to justify an exclusions based on materiality.
Documentation Required:
- Documentation that shows GHG emissions from all relevant Scope 3 emissions sources have been identified and calculated (as defined by Chapter 5 of the GHG Protocol Corporate Value Chain (Scope 3) Standard). This may include:
- An inventory/list of all Scope 3 sources associated with facility operations that shows GHG emission totals in the reporting year.
- Documentation that supports the GHG emission calculations or assumptions used (e.g., emission factors or operational data for Scope 3 sources)
- Documentation for any excluded scope 3 sources or activities excluded from the inventory that justifies the exclusion.
Note: Basic reporting of only a select number of scope 3 sources without following the reporting requirements outlined in Chapter 11 of the Standard does not meet the expectations for a Yes Answer (e.g., informal tracking/reporting of emissions from 1 or 2 sources of Scope 3 emissions)
Interview Questions to Ask:
- Staff responsible for energy and GHG management are able to explain the facility’s methodology for identifying Scope 3 sources and boundaries and calculating Scope 3 GHG emissions.
Inspection – Things to Physically Look For:
- Onsite observations are consistent with reported Scope 3 sources, where applicable (e.g., third party transportation or other services observed on site).
Partial Points:
- Partial points will be awarded if the facility has calculated Scope 3 GHG Emissions from all material upstream Scope 3 sources and there is supporting evidence to justify an exclusions based on materiality.
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Answer Yes if: Your Facility has set a Science-Based Target to reduce GHG emissions or if your facility is part of a manufacturing group/organization that has set a Science-Based Target that includes your facility’s operations.
Notes:
- Targets are considered ‘science-based’ if they are in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement.
- If your facility has set GHG reduction targets, but these have not been formally evaluated to determine if they align with specific climate action goals (e.g., the Science Based Targets Initiative (SBTi), you should answer No to this question.
If you answer Yes to this question, you will be asked to complete the following sub questions to provide details on your Science-Based Target:
- Please indicate which methodology you use to set the Science-Based Target:
- SBTi
- Other
- If Other, please specify.
- Has this Science-Based Target been approved?
- What is your Science-Based Target?
- For Example, Our Company commits to reduce scope 1 and scope 2 GHG emissions by 42% by 2030 from a 2022 base year, and to measure and reduce its scope 3 emissions.
- Please provide the name under which the approved target is reported.
If you answer No to this question, you will be asked to complete the following sub question:
- Is your facility preparing to set a Science-Based Target?
Note: If your company has committed to the SBTi but has not yet established or submitted a target for approval, or if your target is under review (i.e., the company’s status on the SBTi website is listed as “Committed”), you should answer Yes to the sub question “Is your facility preparing to set a Science-Based Target?”
Suggested Uploads:
- Documentation that supports your facilities Science-Based Target (e.g., target commitment letter, target evaluation/verification or approval documentation, etc.).
What is the intent of the question?
The intent of this question is for facilities to demonstrate that they have established science-based GHG emission targets.
Technical Guidance:
Targets are considered “science-based” if they align with the latest climate science and are designed to meet the goals of the Paris Agreement which seeks to limit GHG emissions and climate change. Targets must be validated and approved by a recognized governing body (e.g., The SBTi) to ensure that the target is valid and aligns with current climate science.
The Science Based Targets Initiative (SBTi). https://sciencebasedtargets.org/ has established procedures for the commitment, submission, validation, and approval of targets, which generally includes:
- Company commitment to setting Science-Based Targets in line with the SBTi. Formal commitment to the SBTi is required (i.e., submitting the commitment letter and paying the applicable fees)
- Setting your company’s GHG target and having it validated and approved by the SBTi.
Additional details on the requirements for setting a Science-Based Target with the SBTi can be found here: https://sciencebasedtargets.org/step-by-step-guide/
Information on companies who have committed and set targets that are validated and approved by the SBTi can be found here: https://sciencebasedtargets.org/companies-taking-action/
How This Will Be Verified:
Full Points:
Full points will be awarded if the facility has set a Science-Based Target or if your facility is part of a manufacturing group/organization that set a Science-Based Target that includes your facility’s operations.
Documentation Required:
- Documentation that shows the facility has set a Science-Based Target. This may include:
- Target commitment letter, target evaluation/verification or approval documentation.
- Listing of facility’s Science-Based Target on online registry that indicates the company’s target is set (e.g., Target status is “set “on the SBTi database https://sciencebasedtargets.org/companies-taking-action/)
- Documentation to support the facility’s actions to meet the target.
- If the facility’s operations are included in a Science-Based Target of a larger manufacturing group or organization, supporting documentation that shows the target includes the facility’s operations.
- If the facility is preparing to set a target, supporting documentation that shows target for approval, or if your target is under review (e.g., target commitment letter, the target’s status on the SBTi website is listed as “Committed”).
Interview Questions to Ask:
- Staff responsible for energy and GHG management are able to explain the facility’s methodology for setting the Science-Based Target.
Inspection – Things to Physically Look For:
- Onsite observations are consistent with reported business activities or other supporting documentation associated with the target.
Partial Points: N/A
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Answer Yes if: Your facility has a current documented plan with defined actions that your facility is planning to implement to phase-out the use of all fossil fuels used onsite other than coal.
Answer Partial Yes if: Your facility has a current documented plan with defined actions that your facility is planning to implement to phase-out the use of one (1) or more, but not all fossil fuels used onsite other than coal.
Note: For this question phase-out means discontinuing the use of fossil fuel. Replacing a fossil fuel with another fossil fuel (e.g., phasing out furnace oil and using diesel for the boiler) is not considered a phase-out.
If you answer Yes to this question, you will be asked the following questions to provide details on your phase-out plan:
- Have you done any financial analysis/cost impact to replace any fossil fuel, other than Coal as an energy source?
- Which fossil fuel does your facility have a plan to phase-out? (Select from the list of applicable fossil fuel sources used at the facility)
- What is your plan and what are your steps to phase-out?
- Please upload your plan and financial analysis
- What is your final date to complete your fossil fuel phase-out?
Suggested Uploads:
- A copy of the phase-out plan that includes details of the specific actions the facility plans to take to phase-out fossil fuel use.
- Other documentation supporting the plan (e.g., financial analysis of replacing the fossil fuel, new/proposed equipment specifications, renewable energy solutions, etc)
What is the intent of the question?
The intent of this question is for facilities to demonstrate that they have evaluated options to phase out fossil fuels, other than or in addition to coal, and have established formal plans with defined actions to phase-out fossil fuel use at the facility.
Technical Guidance:
Eliminating the use of fossil fuels and transitioning to cleaner energy sources is a key goal of many international initiatives to reduce GHG emissions and combat climate change. Facilities that currently use fossil fuels as an energy source are encouraged to proactively seek cleaner energy alternatives such as renewable energy solutions to support this goal.
Creating an implementation plan includes the process of reviewing and evaluating available options to improve energy use and/or GHG emissions. The key steps of creating an implementation plan should include the following:
- Identify available options to phase-out fossil fuel use through internal assessment by qualified personnel or third-party experts.
- Evaluate phase-out options to determine the most suitable options (e.g., feasibility studies, cost benefit analyses)
- Approve funds/budget for chosen options.
- Create a timeline and define the actions needed to phase out fossil fuel use.
- Conduct regular reviews of the implementation plan check on progress.
How This Will Be Verified:
Full Points:
Full points will be awarded if the facility has a documented fossil fuel phase-out plan that covers all fossil fuel sources and includes the following:
- A list of defined steps or actions that the facility plans to take to phase-out fossil fuel use.
- A financial analysis of the options/action needed to phase-out fossil fuel use.
- A targeted date to complete the phase-out.
Documentation Required:
- A copy of the phase-out plan that includes details of the specific actions the facility plans to take to phase-out fossil fuel use.
- Other documentation supporting the plan (e.g., financial analysis of replacing fossil fuel, new/proposed equipment specifications, renewable energy solutions, etc)
Interview Questions to Ask:
- Staff responsible for the phase-out plan can explain the facility’s process for evaluating phase out options and the facility’s planned actions to phase-out fossil fuel use.
Inspection – Things to Physically Look For:
- The actions listed in the plans are consistent with the observed fossil fuel use onsite.
Partial Points:
- Partial points will be awarded if the facility has a documented fossil fuel phase-out plan that covers one (1) or more, but not all fossil fuel sources and includes the following:
- A list of defined steps or actions that the facility plans to take to phase-out fossil fuel use.
- A financial analysis of the options/action needed to phase-out fossil fuel use.
- A targeted date to complete the phase-out.
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Answer Yes if: Your facility has replaced all fossil fuels used onsite with renewable energy solutions or your facility has never used fossil fuels onsite (i.e., only renewable energy was used when facility operations began).
Answer Partial Yes if: Your facility has replaced one (1) or more, but not all fossil fuels used onsite with renewable energy solutions within the last 5 years.
Note: The 5 year timeline should be counted based on the Higg FEM reporting year. For example, for FEM 2025 (which reports environmental data from 2025), the replacement must have been made in or after 2021. This is based on the year, not the date of replacement or Higg FEM Verification.
If you answer Yes or Partial Yes to this question, you will be asked the following questions to provide details on your fossil fuel replacement:
- Which fossil fuel did your facility successfully replace?
Note: If your facility has never used fossil fuels onsite (i.e., only renewable energy was used when facility operations began), you should select Not Applicable for the above question.
Suggested Uploads:
- Documentation that supports actions taken by the facility replace fossil fuel with renewable energy solutions (e.g., new equipment or renewable energy solutions specifications, equipment replacement logs or photos of previous fossil fuel burning equipment, etc)
What is the intent of the question?
The intent of this question is for facilities to demonstrate that they have replaced fossil fuel use onsite with renewable energy solutions.
Technical Guidance:
Eliminating the use of fossil fuels and transitioning to cleaner energy sources is a key goal of many international initiatives to reduce GHG emissions and combat climate change. Facilities that have proactively transitioned to renewable energy solutions demonstrate a commitment to sustainable manufacturing and reduce future risks of reliance on fossil fuels.
Renewable energy solutions may include:
- Use of biodiesel or electric vehicles (EVs) for onsite or company vehicle use.
- Use of sustainably sourced biomass (with certification) or geothermal or solar for heat/steam generation.
- Use of hydro, solar photovoltaic, or wind energy to generate electricity.
How This Will Be Verified:
Full Points:
Full points will be awarded if the facility has replaced all fossil fuels used onsite with renewable energy solutions or the facility has never used fossil fuels onsite (i.e., only renewable energy was used when facility operations began).
Documentation Required:
- Documentation that supports actions taken by the facility replace fossil fuel with renewable energy solutions. This may include.
- Specification of new equipment or renewable energy solutions
- Equipment replacement logs or photos of previous fossil fuel burning equipment.
Interview Questions to Ask:
- Staff responsible for the implementing/managing the renewable energy solutions can explain how fossil fuel use was phased out at the facility.
Inspection – Things to Physically Look For:
- Onsite observations indicate that no fossil fuels are used at the facility.
Partial Points:
- Partial points will be awarded if the facility has replaced one (1) or more, but not all fossil fuels used onsite with renewable energy solutions within the last 5 years.
Note: The 5 year timeline should be counted based on the Higg FEM reporting year. For example, for FEM 2025 (which reports environmental data from 2025), the replacement must have been made in or after 2021. This is based on the year, not the date of replacement or Higg FEM Verification.