How are scores in the Energy section affected?
The median score has dropped by 28 points in the Energy section. The majority of facility scores fall between a 56-point drop and an 8-point increase. Scores in this section changed because, in FEM 3.0, Level 3 questions on Scope 3 GHG emission tracking and SBTi enrollment were not scored. Therefore, Level 1 and Level 2 accounted for 50% of the section score in FEM 3.0. In FEM 4.0, Level 3 questions in the Energy section are scored; re-aligning this section with the scoring methodology of all other sections.
Facilities that did not perform well in Level 2 and Level 3 in FEM 3.0, will lose a maximum of 25 points from Level 3 and at least a few points from Level 2 in FEM 4.0, which accounts for 50% of the total module score. Easier questions in Level 1 account for 25% of the total (half of what facilities would have received in FEM 3.0 Level 1).
Background
Cascale updated Higg FEM to 4.0 on January 1, 2024. The update shifted scores and scores between the 3.0 and 4.0 versions are not comparable. Scores are undergoing a reset in this transition 2024 year. A re-baselining of scores and expectations is necessary. The following FAQs describe the impact on scores by Section. These FAQs focus on section scores only. A calculation discrepancy in the total score calculation was identified in April 2024. Higg FEM 4.0 total scores will be revised on the Worldly platform by May 20, 2024. For more information on the score discrepancy, click here.
What are FEM scores and what is their purpose?
Higg FEM offers multiple scoring outputs for facilities and their stakeholders to understand their performance: Total FEM Score, Section Scores, and Level achievement.
The Higg FEM scoring is designed to drive behavior change. Scoring is assigned to questions to drive actions, decisions, and practices that lead to better environmental sustainability outcomes.
How are scores calculated?
The Higg FEM scores each impact area (i.e. section) equally. Each section consists of 100 points. A total Higg FEM score is based on a possibility of 100 points, so each section score is worth an equal portion (14.3%) of the total points assigned to the total Higg FEM score.
Higg FEM questions span three levels for each impact area. Levels are not equally weighted. Higg FEM weighs Level 2 higher than the other levels because the questions in this level are focused on driving key performance improvement measures such as setting targets and tracking reductions.
- Level 1 is worth 25% out of the 100 total section points. (Unless the applicability questions stop you at Level 1, then the Level 1 is worth 100% of the 100 total section points.)
- Level 2 is worth 50% out of the 100 total section points
- Level 3 is worth 25% out of the 100 total section points
The above score distribution is the same as in FEM 3.0. The difference between FEM 3.0 and FEM 4.0 is that at least one or more questions are being scored in each level in Higg FEM 4.0.
Why did Cascale change the scores in FEM 4.0?
Higg FEM 4.0 rebaselines the industry environmental performance at the facility. Higg FEM 4.0 introduced changes to the assessment that reset scores. The changes:
- Expanded the environmental issues covered by the assessment
- Split questions that were too general into more detailed questions
- Revamped applicability function to allow only relevant questions to be answered depending on their operations and processes.
- Aligns the assessment with key industry standards, including the GHG Protocol, Science-Based Targets initiative, and ZDHC Roadmap to Zero.
Are Higg FEM 3.0 scores comparable to FEM 4.0 scores?
No. Higg FEM 3.0 scores are not comparable to FEM 4.0 scores. Higg FEM 3.0 has been available for six reporting years with limited changes to the content and expectation.
FEM 4.0 breaks comparability, however, a re-baselining was necessary to ensure the tool maintains relevance in the evolving landscape of sustainability performance.
Disclaimer: The score assessment completed by Cascale is biased for the following reasons:
- The analysis was completed on more than 5200 posted modules in the first three months of FEM 2023 adoption, compared to their FEM 2022 score.
- Cascale evaluated facilities that posted their module at the start of the cadence introducing selection bias. Facilities that post early in the cadence are usually returning and more experienced in completing the FEM assessment.
- With the narrowed scope of core verification in 2024 of Levels 2 and 3, there is no validation of the accuracy of those responses this year. Score increases may be due to inaccurate responses.