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).
It is recommended to use the ‘Normalized’ method to account for operational fluctuations.
Normalized baselines provide more accurate and useful comparisons over time.
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.
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:
X Report a baseline that is not accurate (e.g., the data source is unknown or has not been
verified)
X Report a baseline that is based on insufficient data (e.g., not a full year’s data).
X Report an estimated baseline if it is not supported by verifiable and accurate estimation
methodology and data (e.g., engineering calculations).
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