Higg FEM 4.0 is coming soon!

The requirements for greenhouse gas tracking are also imminent!

Will you miss out on the points for this question,

or will you come out unscathed?

You may wonder, why such bold claims? It is not without reason! Perhaps even those who have extensive experience in Higg FEM self-assessment or verification may not have noticed that in the Higg FEM 3.0 version (Level 3, Question 7), the requirements for greenhouse gas tracking, due to certain technical difficulties, even if you answered "NO," you still received points.

However, the scoring criteria for this question will be different in the upcoming Higg FEM 4.0 version next year! It will award points based on whether the factory has tracked relevant greenhouse gas emission data. In simple terms, if there is a lack of tracking data for greenhouse gas emissions, no points will be awarded!

Did your factory calculate the annual greenhouse gas (GHG) emissions for this reporting year?

If you want to score well in the upcoming FEM2023 self-assessment and verification next year, you need to start collecting and compiling relevant data this year and complete the necessary audits or verifications before reporting in 2024. In other words, action must be taken now!

How is Scope 3 greenhouse gas defined? Collecting and calculating Scope 3 emissions can be a technical task. Let's first review the scope of greenhouse gases:

Greenhouse gas emissions can be categorized into three scopes based on their emission sources: Scope 1, Scope 2, and Scope 3.

● Scope 1 refers to all direct emissions of greenhouse gases within the organization's operational boundaries.

Common emission sources include boilers, generators, cafeteria kitchens, company-owned vehicles, production processes, septic tank emissions, wastewater treatment emissions, refrigerant leaks, fire extinguishers, and so on.

● Scope 2 refers to the indirect greenhouse gas emissions resulting from the purchase of energy.

Common emission sources for Scope 2 include purchased electricity and purchased steam.

● Scope 3 includes indirect greenhouse gas emissions from other activities.

In the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Standard, Scope 3 emissions are further categorized into the following 15 primary categories based on upstream and downstream sources:

■ Upstream emission sources

● Purchased goods and services

● Capital goods

● Activities related to fuels and energy (excluding those in Scope 1 or Scope 2)

● Upstream transportation and distribution

● Waste generated during operations

● Business travel

● Employee commuting

● Upstream leased assets

■ Downstream emissions sources

● Downstream transportation and distribution

● Processing of products sold

● Use of products sold

● Disposal of sold products

● Downstream leased assets

● Franchise operation

● Investment

Perhaps one day, the collection and analysis of greenhouse gas emissions data becomes a necessary step for your company's listing, a minimum requirement from your brand partners, or even a crucial aspect of industry or government policies. Importantly, speaking through data undoubtedly places your company's brand competitiveness in a favorable position.

Perhaps, one day, the collection and analysis of greenhouse gas emissions data becomes a necessary step for your company's listing, a minimum requirement from your brand partners, or even an essential component of industry or government policies. Moreover, it is crucial to communicate through data as it undoubtedly enables your company's brand to occupy a favorable position in terms of overall competitiveness.