How does the Higg Product Module work?
The Product Module gives companies a full view of a product’s comprehensive environmental impacts. The Product Module assesses environmental impacts from resource extraction (or cultivation) to material manufacturing, product manufacturing, design, packaging, shipping logistics, retail, use, product quality (duration of service), and its end of life.
The Product Module can assess the full life cycle impacts of apparel, footwear, home textile products, and other consumer goods such as furniture, backpacks, and toys.
The Product Module includes features to help companies consider circular strategies. Users can also assess Scope 3 category emissions with the Higg product tool to understand how they may reduce their carbon impact.
The tool provides consistent and comparable environmental impact results that can be analyzed and benchmarked against company portfolios. And it provides a streamlined score based on robust data that can pave the way for end-user and consumer communications.
See here for full Getting Started guidance on the PM.
What information do you need to collect for a product impact assessment in the Higg PM?
Data collection for the PM takes time and that is why Cascale and Worldly have created the tools with default data entries based on industry average impact results. We recommend you to start out with a basic product impact assessment where you enter data for the Overview page (distribution info - use company-level data and set as new default in PM Settings-tab), BOM and Finished Goods Manufacturing Processes and you use the default selection in all other steps. This gives you an accurate footprint of your product to start with. Based on your goal for using the Product Tools, you can decide to continue and collect more data points on packaging, logistics, end-of-use etc. But it depends on what you are trying to do with the outcomes; what level of granularity you need for this and what decisions you are trying to inform.
The data-points to collect for a basic product impact assessment, using the default value for the advanced settings in the tool:
- Bill of Materials - with (1) raw material source(s) and (2) composition specified for each component
- BOM Quantity-inputs - specify whether quantities are net or gross inputs and Unit of Measurement (UoM) (preferably in weight, if not weight please specify UoM (yards, sqft etc.) and add material density and/or width and/or thickness in this case to define the yield).
- Material loss rates per component (if this is known, otherwise we will use default-values)
- Manufacturing processes - Please see this guidance on Howtohigg detailing all manufacturing processes included in the Product Module. You can share this guidance with your vendors/factories to collect information on which of the assembly processes to select and process-units of measurement.
- Manufacturing processes Quantity-inputs - for each manufacturing process the UoM is specified in the list.
How do I use the data insights from the Product Module?
With insights from the Product Module, designers and developers can understand the environmental impacts of the products they’re creating. Sustainability professionals can make adjustments to areas such as design, manufacturing processes, and logistics to reduce the environmental impact of a product. Sustainability analysts can also use Product Module results to benchmark and measure the environmental impact of product portfolios over time.
See more guidance here, including how to download Product Module data to Excel.
How is the Higg Product Module aligned with the Product Environment Footprint (PEF) Project in Europe?
As corporate sustainability goals evolve, consumers and regulatory bodies expect the fashion industry to be more transparent. Brands need data that paints a full picture of their impact. The product tool was developed with these expectations in mind and can help companies prepare for anticipated legislation. It is the closest tool to the future Product Environmental Footprint method for measuring product sustainability developed by the European Commission. For organizations with an EU presence, the Higg product tool is designed to evolve and will conform with the future EU PEF Apparel & Footwear Methodology.
Can brands use the Higg Product Module to calculate Scope 3 greenhouse gas emissions?
The Product Module can calculate the Scope 3 greenhouse gas emissions from the following categories of the GHG Protocol:
- Users’ purchased goods (Category 1 in the GHG Protocol)
- Upstream transportation and distribution (Category 4 in the GHG Protocol)
- Downstream transportation and distribution (Category 9 in the GHG Protocol)
- Waste generated in operations (Category 5 in the GHG Protocol)
- Use of sold products (Category 11 in GHG Protocol)
- End-of-life treatment of sold products (Category 12 in GHG Protocol)
How do I create a Bill of Materials if I don’t measure materials by weight?
If you don’t measure materials by weight, you may use relevant measurements, such as yield, yard or meter measurement units, to create a Bill of Materials. Product Module users can create custom materials in the Higg Materials Sustainability Index and enter Yield information under the Units of Measure section.
See here for more guidance on how to use the yield option in the MSI.
Should I enter packaging materials on the Bill of Materials (BOM) or on the Packaging section?
It depends on how you have set up your BOM. For example, a shoebox could be considered on-product or not, depending on your brand’s BOM setup. On-product packaging that has already been included in the BOM should stay in the BOM (ex: hang tags). For other additional packaging, you can use the packaging section (ex: plastic bag for e-commerce). The important thing is to include all packaging and to avoid double counting.
How does the Higg Product Module consider circularity?
There is emerging interest in circularity and demand for end-of-use consideration at the product level. The Product Module includes features to consider circular strategies, from assessing a product’s recycled material content to evaluating previously used products and considering the useful longevity of a product’s life.
Recycled materials and previously used products (i.e. secondhand products that only need refurbishment) are modeled using the cut-off approach. This means that new materials and products that are on their “first life” are allocated the full manufacturing impacts. The Product Module measures the impacts of the circular actions that have been implemented instead of focusing on what may potentially be implemented. Once a material or product has reached its end of life and is recycled or refurbished, only the impacts of recycling and refurbishment are included in the subsequent material or product. This means that companies receive credit when they’ve actually taken the steps to recycle a garment.
The Product Module also considers the useful longevity of a product’s life. Quality parameters determine whether a product is designed for a longer usable lifetime. If repair programs are available, this also extends the usable lifetime of a product in the Product Module.
How is ‘Own distribution’ defined for ‘product sold through your own distribution’?
Own distribution represents the percentage (by unit count) of the product that is sold through your known distribution channels. This means that you know the energy and water use in the DCs and retail locations and that you control the logistics from DC to retail, and DC to customers (for online sales). For example, if you know which DCs the products get shipped to but don’t control anything afterward, it is all unknown distribution (from DC onwards). If all distribution of this product is done by dealers or 3rd party logistics, your answer should be 0%.
Why does having a rewear program increase the impact score for all 5 categories?
In the Higg Product Module, we offer the user to see both absolute impacts and per-use impacts. If a product is used for a longer time, then the absolute impacts of that product increase because it has more care cycles. However, it results in a lower “per use” impact since the full impacts are split over a higher number of customer uses achieved by the rewear programs.
How do I account for the impacts of damaged products or samples in the PM?
The impact of damaged products that remain unsold, are counted towards the Excess Finished Goods rate. In the next two columns, you can indicate what the fate is of the damaged products: recycling/downcycling or landfill/incineration, see screenshot.
The impact of samples are also accounted for here. In the case where all samples will be sold at a discounted rate, you can enter “0%” as the samples will be counted as normal products that will continue the product life cycle.
Damaged products that are returned by the customer and cannot be resold, should be factored into the Distribution Info-impacts on the Overview page, under "Return Rate" and "Restock Rate".
How do I collect information on net use of materials?
Option 1: Ask for this information from your supplier or internal teams together with all other information that is needed for doing a product impact assessment with the PM.
Option 2 (advanced): Incorporate these additional data points in tech packs so that it is being collected during development of the product.
In the PM Excel file, where can I view the Logistics, Retail and Duration of Service impacts?
These sections are not included as separate tabs in the Excel download, but they are listed as separate impacts on the Impact Summary tab in columns AK - AX for per use impacts and columns CO - DB for absolute impacts.
Duration of Service only affects the lifetime of a product so it cannot be seen as its own life cycle stage, rather it is a metric for assessing the product's lifetime. Duration of Service settings affect the impacts of the Product Care stage (these will increase as the product lives longer), and will affect the per use impacts (product is worn more times before reaching end of use).
In the PM Excel file, when I add up the impacts of finished goods manufacturing (FGM), I get a different result than the total FGM impacts displayed on the summary tab and in the PM library. Why is this?
Adding up the numbers from the different lifecycle stages gives a different number than the final total for that lifecycle stage. This has to do with loss rates/wastage that occur throughout the lifecycle of the product, some of the loss rates are calculated towards a certain step, and some are calculated on the total level.
The BOM impacts for example include the Excess Finished Goods-rate and the Sample-rate: more materials are needed to produce these extra products. The BOM impacts do not include the net use: this is included at the Finished Goods Manufacturing step, which is where the losses occur.
This is an example of where the calculations indeed do not align with the location of where those data-points are entered into the tool. The values in the excel and tool tables are meant to inform you about the hotspots at each stage, but it is not possible to add up any section and get to the final product totals.
How do I account for defect trims or components that we receive from our suppliers, when modeling our product’s impacts in the PM?
Please model the trims and components in the MSI and indicate the defect rate when creating the trim. That way when modeling your product’s impacts and adding the trims and components to your BOM in the PM, the wastage occurring from the defected trims and components will have been accounted for (in the MSI).
PM Overview Info: How can I complete the Distribution Info section for a product that is still in development?
It depends on when you would have these data-points (rates) available, and if you want to capture the data-points for the exact product or whether you are using product-category or brand-level data. It is well-accepted to use brand-level data for the distribution info section. In this case, the rates are more readily available at any point in time. If you are making a product impact analysis for a product that is still in development because it’s part of a coming collection, you might want to use product category-data from the previous reporting year to determine these rates.
As a rule of thumb, stick to rates calculated based on a full year of data from your fiscal reporting period.
PM Finished Goods Manufacturing: What does the Sample Rate refer to?
Sample rate refers to all samples created along the full life cycle, so this includes design and development samples as well as sales samples. It is recommended to use the default rate of 1%.
PM Finished Goods Manufacturing: What does Manufacturing Waste refer to? How does a brand collect this information?
Manufacturing waste is calculated based on the net-use percentages provided in the BOM-tab for each material component and reflects total cutting waste. The Manufacturing waste percentage cannot be adjusted on this tab. To modify this percentage, please adjust the net use percentages provided for the individual material components.
PM Finished Goods Manufacturing: How is the Standard Use for thread, seam-tape and sundries consumption defined for applicable processes?
The processes of sewing, seam taping, embroidery and sundries application all include impacts of electricity AND material-use for standard-use of these material inputs. Please see this guidance on the Finished Goods Manufacturing processes for the quantity inputs that are considered “standard use”.
PM Finished Goods Manufacturing: When should thread, seam-tape and sundries materials be included in the BOM?
In cases of standard-use, the material does not have to be added to the Bill of Materials (BOM) in the PM. In cases of non-standard use, the material should be added to the BOM. In this case there will be some double counting, as standard-use impacts are also accounted for under the applicable finished goods manufacturing process. However, this is negligible when looking at the total product's footprint. To determine if your material use is comparable to standard-use, please look up the standard-use quantity inputs for the finished goods manufacturing processes here.
PM End of Use: How do you determine the percentage of annual production volume that is taken back for a rewear program?
The input value that the Product Module requests here is the percentage of products taken back, compared to the annual production volume. You may consider this on a company-level, product category-level, or product level.
It is easiest to consider these numbers on a company level: all products taken back (or collected; the emphasis is on re-offering 2nd hand products, the products re-offered don't have to be produced by the brand necessarily), compared to the annual production volume of the brand.
You can also do it on product-category level, for example, taking all shell jackets collected and comparing these against the annual production of all shell jackets at your brand.
This metric in the PM informs the likelihood of the jacket not ending up in landfill, but being resold. That is why it doesn't matter how many jackets were sold in the past; we're focusing on the end of life scenario looking at the probability associated with different pathways.
PM Logistics: We have many different combinations of shipping routes and modes. What is the best way to calculate transportation impacts?
The most accurate way would be calculating a weighted average of distance traveled for each mode based on % of total product units. If you don’t have this data available, you can make use of the default values provided in the tool.
PM Logistics: How is the product’s weight and volume considered to calculate impacts from transportation by truck, air, rail or ocean?
This is accounted for based on the product category, see the PM methodology document for more details. The assumptions are based on the PEFCR for apparel & textiles.
PM Retail: How do I calculate retail impacts?
The retail section can be used to update the energy and water use associated with owned/known distribution center and retail store operations. Default values are provided and should only be updated if supporting documentation is available. An annual assessment of distribution center and/or retail energy use can be converted to usable values in these fields – simply divide total energy use by the total count of units processed.
For more information, please see this guidance on Howtohigg.org.
PM Duration of Service: Is it correct that the quality assurance tests mostly test material qualities instead of product qualities?
No, the duration of service tests includes both material tests and finished product integrity tests.
The Duration of Service tests and thresholds are dependent on the product, but they all assess the Materials (Pre-qualification and Performance) AND Finished Product Integrity.
- Waterproof jackets: Pre-qualification applies to materials and zippers
- Athletic & Casual Footwear: Pre-qualification applies to Materials (incl. outsole, upper materials, etc.)
- Knit Products: Pre-qualification applies to fabrics only
- Woven Products: Pre-qualification applies to fabrics, seams, and zippers
Please see this Howtohigg page for additional guidance.