Higg Index is a set of self-assessment tools, of which Higg FEM is just one. It uses practical and qualitative questions to evaluate environmental performance for sustainable development, driving manufacturers to improve. Modules validated by qualified validators can enhance the trust of supply chains and customers.
"You may have experienced pressure from consumers and investors to understand more transparently the impact of your supply chain on the environment and labor force. It is time to consider this and rebuild.". Fortunately, we have entered the digital era - new supply chain sustainability software makes it possible to collect in-depth data across the entire value chain. In order to be truly resilient, your enterprise should seek technology providers to help you collect data that is credible, detailed, and contextualized enough to help you track and reduce the impact over time. Of course, this information will make it possible to share progress with public stakeholders.
01 Establish a worker centric perspective
Think about the performance of workers at the beginning of the pandemic. Some companies are eager to save cash by shutting down production. Suppliers are not being paid,and millions of workers supporting the global manufacturing industry have lost the income they rely on. Obviously, these workers do not have safety nets. This is not only a disaster for human welfare, but also an economic disaster. Equal partnerships are crucial inthe 21st century, and by collecting data that helps you stay in close contact with local suppliers, you can avoid these omissions in the future.
Your new supply chain must use sustainability measurement tools that track the commitment of your value chain partners to human welfare. Find technical partners that can help you track key indicators, such as fair wages, worker benefits, and health and safety practices. More and more consumers want to know the workers behind their products. By collecting this data, you will be able to better tell this story.
02 Emissions outside tracking range 1
When measuring your environmental impact, there are many areas that need to be addressed, from water to chemical use to waste and carbon emissions. However, as the European Union is about to launch a carbon emission control and trading system, and other countries, including Canada, China, and the United States, have implemented or formulated similar plans, now is the best time to start establishing a measure of carbon emissions.
Currently, many companies track and optimize their Scope 1 emissions, which are related to the company's direct emissions - typically from company offices and vehicles. However, Scope 1 emissions account for only a small portion of the overall value chain impact. Although it is commendable to add solar panels to your office and purchase an electric vehicle delivery fleet, companies wishing to have a meaningful impact cannot ignore the indirect emissions of their ranges 2 and 3 - known to account for over 90% of their total emissions. A truly modern supply chain will deploy sustainability reporting softwareto measure emissions across the entire value chain and find data partners that can help you understand your entire carbon footprint.
03 Design for new ESG investment trends
Governments and investors are evaluating environmental, social, and governance (ESG) statements with stricter scrutiny. Companies that want to invest in ESG are more frequently looking for companies that can quantify their sustainability plans. In response, yoursupply chain partners should help you uncover historical data based on industry-wide recognized indicators and methods, so that external stakeholders can easily evaluate your work.
As you rebuild the supply chain, please focus on building stronger communication channels so that you can collect more insightful and granular data at every step of production. When you need to report on your ESG plan, you will have key environmental and social impact data, enabling you to transparently share progress and tell a complete story to stakeholders.
As consumer goods manufacturers adopt these principles, supply chains will take on a promising new form. Although this mapping and impact reduction is complex in the modern world of decentralized global production, investing in basic work today and finding the right partners to help your factory will enable the most influential improvements to be made tomorrow.