FEM 2024 - Energy & Ghg Level 2

Table of Contents

1. Enbaselinesource
2. Enbaselineeall
3. Enbaselineeall Verification And Scoring
4. Enhighestuse
5. Enhighestuse Verification And Scoring
6. Entargetssource
7. Entargetssource Verification And Scoring
8. Enghgtarget
9. Enghgtarget Verification And Scoring
10. Enimproveplan
11. Enimproveplan Verification And Scoring
12. Enaudit
13. Enaudit Verification And Scoring
14. Encoalphaseout
15. Encoalphaseout Verification And Scoring
16. Enimproveopt
17. Enimproveopt Verification And Scoring
18. Enscope1and2reduction
19. Enscope1and2reduction Verification And Scoring

Enbaselinesource

9. Has your facility set a baseline for any of its energy use? (Ref ID - enbaselinesource)

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):

Enbaselineeall

9. Which energy sources has your facility set baselines on?? (Ref ID - enbaselineeall)

• 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:

Note: From FEM2024 onwards, in the above table, baseline data can be auto populated or manually entered in the following ways:

• New FEM Users: Required to manually input baseline.
• Existing FEM Users without a baseline: Facility can choose to: 
  • Enter the baseline manually OR 
  • Have the FEM auto populate a baseline based on the data from the previous year’s FEM.
• Existing FEM Users with an existing baseline: Baseline will auto populate based on the data from the previous year’s FEM.

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).

Enbaselineeall Verification And Scoring

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. 

Enhighestuse

11. Does your facility know what facility processes or operations use the most energy? (Ref ID - enhighestuse)

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). 

Enhighestuse Verification And Scoring

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

Entargetssource

12. Has your facility set targets for improving energy use? (Ref ID - entargetssource)

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)
  • 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).

Entargetssource Verification And Scoring

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 are 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. 

Enghgtarget

14. Has your facility set targets for reducing your facility overall Scope 1 and Scope 2 GHG emissions? (Ref ID - enGHGtarget)

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). 

Enghgtarget Verification And Scoring

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

Enimproveplan

14. Does your facility have an implementation plan to improve energy use and/or GHG Emissions? (Ref ID - enimproveplan)

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 

Enimproveplan Verification And Scoring

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:

• 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.

Enaudit

14. Has an energy audit been conducted at your facility within the last 5 years? (Ref ID - enaudit)

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 2024 (which reports environmental data from 2024), the energy audit must have been conducted in or after 2020. 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
  • 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.
• Level 2 – Energy Survey and Analysis
  • 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.
• Level 3 – Detailed Analysis of Capital-Intensive Modifications
  • 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/

Enaudit Verification And Scoring

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 2024 (which reports environmental data from 2024), the energy audit must have been conducted in or after 2020.
  • 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 

Encoalphaseout

17. Does your facility have a plan to phase-out Coal? (Ref ID - encoalphaseout)

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:

• Have you done any financial analysis/cost impact to replace 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. 

Encoalphaseout Verification And Scoring

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

Enimproveopt

18. Has your facility improved energy consumption compared with its baseline in the reporting year? (Ref ID - enimproveopt)

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.

Enimproveopt Verification And Scoring

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.

Enscope1and2reduction

18. Has your facility reduced your facilities overall Scope 1 and Scope 2 GHG emission compared with its baseline in the reporting year? (Ref ID - enscope1and2reduction)

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. 

Enscope1and2reduction Verification And Scoring

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.