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2021 Higg FEM Webinar (For Higg Users)

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Q&A Attendees are all muted during the presentation.

Please type your questions into the Q&A box at the bottom of the screen.

Agenda

1. 2021 Higg FEM Cadence timeline

2. 2021 Higg FEM Content change overview

3. Introduction: Facility Foundations

4. Higg Platform enhancement overview

5. Howtohigg.org enhancement overview

6. Platform Demo

7. Preparing for 2021 Higg FEM Cadence

8. Q&A

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2021 Higg FEM Cadence Timeline

2021 Higg FEM cycleSep 2021

Purchase

Assessment

Posting

Verification

2021 Higg FEM & 2021 Higg vFEMFacility Foundations & vFoundations

2021 Higg FEM & Facility Foundations Launched

April 30, 2022Deadline for self-assessment with content locked for benchmarking

2021 Higg vFEM & vFoundations finalized and posted ends on December 31, 2022

* Unlimited posting / unposting

One-time posting

Apr 2022Jan 2022Nov 2021 Dec 2022

Allow additional new facilities to complete and post

Note:*Once a facility begins to verify a module, the module cannot be unposted.*Unlimited posting/unposting DOES NOT apply to 2021 Higg vFEM or vFoundations at any time – verified modules can only be posted once.

Oct 2022

v. 2021-11-04

ends on Oct 31, 2022

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2021 Higg FEM Content change

2021 Higg FEM changes

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Content Guidance

How-to-Higg FEM Guide

● Question Intent● Technical Guidance ● Verification Guidance● Glossary - Definition● Guidance specific for

Hardgoods facilities

● New unscored questions on Site Info & Permit, EMS

● Removed questions from Facility Preview

● Revised question● Align Unit of Measure option

across questions

Facility Foundations

New Feature

● Questions● Guidance● Verification Protocol

New Unscored Question

EMS● Added the following question to FEM 2021 content, which was previously only

available in “Facility Preview”, aka Facility Foundations

Does your facility have documented procedures that enable workers to report environmental emergencies/violations?

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New Unscored Question Site Info & Permit

● Added new question to capture Industry Program/Certification participation

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Questions that have been revised

Energy● Added LNG (Liquefied Natural Gas) as energy source

Waste● (Q1) Specify Non-Hazardous Wastewater Treatment Sludge is Non-hazardous● (Q2) Specify Hazardous Wastewater Treatment Sludge include both Industrial and

Domestic Hazardous Sludge● (Q6) Added the following question to FEM2021 content, which was previously only

available in “Facility Preview”, aka Facility Foundations Does your facility forbid all irresponsible waste disposal actions including open burning, open dumping, burying and storage tank leaks?

Chemicals● (Applicability) Added new facility processes for Hardgoods facilities

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Unscored Questions were removed

● This was previously only applied to “Facility Preview”● Impacted section: Energy, Water, Waste

Does your facility have a robust process in place to ensure data accuracy and integrity?

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Align Unit of Measure option across questions

Waste● Unit of Measure on Tracking question (Q1, Q2) are now aligned with Baseline

Question (Q8)

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Additional Guidances on How-to-Higg FEM Guide

● Accessing Water Risk● Water Q1● Chemicals Q1 on Partial Yes requirement● Chemicals Q7 for Chemicals used in Tooling/Operation only● Updated definition: Produced/Process Water ; Contractor/Subcontractor ;Zero

Liquid Discharge (ZLD), etc.● More specific guidance for Hardgoods facilities:

○ Example to calculate and report SAM○ Water Q3: know what facility processes or operations use the most water○ Wastewater standard○ Waste stream○ Waste Q2: What to do when answer “Other”○ Chemicals: new facility processes○ Chemicals Q7: select and purchase chemicals based on their hazards and

MRSL / RSL requirements14

2021 How-to-Higg FEM Guide

https://howtohigg.org/fem-user-selection/fem-facility-users-landing/complete-the-fem/facility-site-information-permits-2021/#section1 15

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“Facility Foundations” for 2021 Higg FEM Cadence

Introduction to Facility Foundations

● Previously known as “Facility Preview” in 2020 Higg FEM Cadence

● Facility Foundations is a way for manufacturers, brands, retailers, sourcing agents to quickly evaluate the environmental performance of their manufacturing facilities at a foundational level.

● A tool for onboarding new facilities, providing an entry point to the Higg Facility Tools

● Designed to scale to adjacent industries

● Streamlines the collection of sustainability data, and increases data accountability in the industry.

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Introduction to Facility Foundations

● Facility Foundations does not provide a comprehensive view of value chain performance. So it does not replace the Higg FEM assessment.

● Facility Foundations does not have scoring.

● FEM Benchmarking does not include data from Facility Foundations.

● Communication toolkit is not available for Facility Foundations.

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Facility Foundations (Use cases)

01 (for companies that has an existing assessment tool) replace proprietary tool to assess manufacturing facilities on their foundational environmental sustainability performance

02 (for companies that are beginning to assess value chain) use this tool without developing a separate tool to assess manufacturing facilities on their foundational environmental sustainability performance

03 (for companies that are beginning to assess extended value chain) use this tool without developing a separate tool to assess manufacturing facilities on their foundational environmental sustainability performance

04 (for companies planning to roll out Higg FEM to other industries, but feel the current version of Higg FEM does not fully apply) use this tool to assess manufacturing facilities on their foundational environmental sustainability performance using the Higg.org platform

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Facility Foundations (Reporting period)

● No reporting period - available all year round

● Measures performance from the most recent 12-months. (Example, if the facility is completing Facility Foundations in May 2022, Facility Foundations measures performance from May 2021 to April 2022).

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Facility FoundationsMeasures

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Environmental Management System

Energy & GHG

Water

Wastewater

Air Emissions

Waste

Chemicals

Facility Foundations & Higg FEM

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Level 2

Facility Foundationsquestions come from a subset of FEM 2021 Level 1 Questions

Level 3

Level 1

Facility Foundations Questions

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Questions that are highlighted in Yellow indicate questions that have been modified to reflect foundational practices in a facility (e.g. FEM inputs or data requirements).

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● Did your facility add additional refrigerants to any existing equipment during this reporting year?

● Do you track refrigerant use/emissions?● Select all refrigerants added to existing

equipment● Complete Refrigerant Table with

Quantitative Data

● Did your facility add additional refrigerants to any existing equipment during this reporting year?

● Do you track refrigerant use/emissions?

Air Question 3

● Select all sources of energy for your facility

● Does your facility track any of its energy use?

● Complete Energy Table with Quantitative data

● Select all sources of energy for your facility

● Does your facility track any of its energy use?

Energy Question 1

Facility Foundations vs. FEM 2021 (Example)

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Facility Foundations FEM 2021

Facility Foundations Guidance

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https://howtohigg.org/fem-user-selection/fem-facility-users-landing/appendix-a-facility-foundations/

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Facility Foundations (Verification)

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Only one verification per facility in the same cadence

● Facility Foundations Verification apply to Facility Foundations version

● FEM Verification apply to full FEM version

https://howtohigg.org/higg-fem-verification-program 26

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How can you access Facility Foundations

Accessing Facility Foundations (Criteria)

Apply additional rules to guide facilities towards progress

○ Only new FEM user, starting from 2021 Higg FEM cadence, can choose to do either Facility Foundations or FEM

○ All existing FEM user cannot choose Facility Foundations

○ Once a user choose to do FEM, they cannot choose Facility Foundation in all future cadences

*New FEM User defined as FEM has not been allocated to the account on higg.org regardless cadence. Meaning if an account was allocated with a FEM, regardless in which year, only FEM version can be allocated to that account. Facility Foundations version will never be applicable to that account.

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2021 Higg FEMTranslation

2021 Higg FEM Translation

How-to-Higg FEM Guide Higg.org

Bengali | English | Chinese (Simplified) | Italian

Japanese | Portuguese | Spanish

Turkish | Vietnamese

(Available now)(Available in phases)

2021 Higg FEM Translation Change Request

howtohigg.org/request

FEM 2021 Launch Higg.org Platform UpdatesHannah Seabury / Vic Lau,

Customer Success Manager, Higg

November 4, 2021

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Higg.org platform updates for FEM 2021

Guidance: Updated the Howtohigg.org site

Sales discount

Demo

Contents

Higg

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Higg.org Platform Updates for FEM 2021

● New Facility Subscriptions launched earlier this year

● No change is made for FEM 2021 features on Higg.org platform except adding the Areas and Focus of Improvement report for FEM 2021.

● Verification module fee is payable since November 1, 2021.

● Facility Foundations and FEM 2021 features are enabled on November 4, 2021.

● Updated Adoption tool features for support FEM 2021.

Highlights

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Higg.org Platform Update

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Higg.org Platform Update | Facility Subscriptions

Verification Module Fee

The verification module fee is payable on our platform since November 1, 2021. The fee can be purchased on the subscription page or module dashboard page.

Facility users must pay for the verification module fee to start the verification process.

Payment of verification module fee through wire transfer needs to be received first. 3

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Higg.org Platform Update | Verification Fee

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Higg.org Platform Update | Facility Foundations

Facility users will purchase the Facility Starter plan to get Facility Foundations module.

Facilities who have had a FEM before can’t purchase this plan.

Facility Foundations

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Higg.org Platform Update | Facility Foundations

Facility FoundationsWhat is similar to FEM:

● Self-assessment and verification assessment.

○ It will follow the same exact status workflow as FEM.○ Self-assessment status is from NS to ASC.○ Verification status is from VRP to VRF.

● Offer the CSV reports (single and bulk) and performance CSV reports for the Plus plan facility users. Brand accounts can access the shared FEM’s CSV reports.

● Share the same module page with FEM but Facility Foundations is marked.

● Support the same 9 languages as FEM. ● Support the roll forward but this feature will be enabled in

future cadence.○ Foundations to Foundations ○ Foundations to FEM

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Higg.org Platform Update | Facility Foundations

Facility Foundations

What is different from FEM:

● No scoring system/report ● The module dashboard is without scoring and

GHG reports.● Not included into the benchmarking tool. ● Not included in the analytics tool currently. For

the future, it is TBD.

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Higg.org Platform Update | Facility Foundations

Facility Foundations Version vs FEM Version Comparison

Function Facility Foundations

FEM

Self-assessment available √ √

Verified-assessment available √ √

CSV √ √

Offline excel √ √

Scoring √

Benchmarking √

Transparency - Performance Communication Toolkit √

Higg.org Platform Update | Facility Foundations

Facility Foundations Upgrade Flow

Decide Facility Foundations or FEM 2021

Purchase the subscription on platform

If on NS / ASI

If on ASC*

*If ASC after April 30, submit ticket to Higg support team to unpost and upgrade subscription

If on VRP, VRE, VRC, VRQ, VRF

Purchase the related verification module

Start the self-assessment

Can’t upgrade

Module Status

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Upgrade facility subscription on platform; Pay the difference

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Higg.org Platform Update | Adoption Tool

The updated features in the Higg Adoption Tool:

● Support FEM 2021 adoption tracking○ FEM 2021 default cadence is provided to all Essential or above service level

accounts. ● Support Facility Foundations adoption tracking

○ No default cadence for the Facility Foundation in the adoption tool. ○ Any accounts who complete the facility foundations will be able to track in the

FEM default cadence ○ Expanded or above service customers can create separated cadences to track

the Facility Foundations adoption progress. ○ Facility Foundations column is enabled in the cadence table.

Updated Features

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Pay for others

Coming Features

Allocate modules for my account

FSLM credit allocation

Allow you to purchase modules for other accounts

Allow you to allocate modules to your own account if you are an SAC member

Get credit and allocate the FSLM to your account if you have an active FSLM but purchase the Plus plan

Note: these features will be released by the end of November 2021.

Higg.org Platform Update | Coming Features

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Higg.org Platform Update | Coming Features

Area and Focus of Improvement Report

Note: it will be released by the end of November 2021.

Guidance: Updated Howtohigg.org site

New structure Based on our research conducted in 2021, almost 20% of users couldn’t find what they were looking for on Howtohigg.org site.

The new structure of Howtohigg.org site is segmented by user type in each Higg tool section.

● Facility users● Brand/Retailer users● Verifiers● Other users (e.g., vendors/sourcing

agent)

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Guidance | Updated Howtohigg.org

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Guidance | Updated Howtohigg.org

Facility users Brand/retailer users Verifiers Other users

Sales Discount

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Discount

Discount for the Facility Subscription Plans

We’ll offer discounts of at least 10% through the end of the year. The earlier you buy your subscription, the better price you’ll get.

Subscription Type Facility Environmental Plan Facility Plus Plan

Original Price $429 $629

Current Discount Price $399 $529

Save $30 $100

Verification Module Prices

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Module DiscountsvFSLM USD350 USD198 Through End Of Year 2021

vFEM2020 USD198 Through October 2021

vFEM2021 USD300 USD210 (30% discount) Through November 2021

Demo

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Support on 2021 Higg FEM

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Level Training Program

Higg Training Support

Office Hours Translation

Provide progressive training sessions to the users at the different learning stages

Provide a space for users to ask questions on the Higg tools they are working on

Provide limited language support for Higg training program

Support | Higg Training Support

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You can go to your account dashboard or type howtohigg.org/request to submit a ticket to our support team.

Contact Higg Support Team

Support

SAC Approved Trainers

SAC Approved Training Providers bring in a wealth of experience and expertise

Learners can get a chance to ask questions and get their technical queries understood in local language

Find and contact trainershowtohigg.org/trainersSAC Member Trainer Bodies

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Next Step

Reminder for Next step

❏ Start reviewing 2021 Higg FEM Content, platform, guidance

❏ Work with your value chain OR Reach out to your customer(s) on which version best suit you in 2021 Higg FEM Cadence

❏ Make use of the Resources available

❏ Complete the Facility Foundations or FEM2021 on time

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Q&AAny question? Please submit a ticket via howtohigg.org/request

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Thanks!

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