Cascale White Paper To Detail How the Higg BRM Supports CSRD Reporting Obligations

In a challenging legislative landscape with ever-increasing reporting obligations, companies need reliable tools that support and guide them in their compliance journey. On August 14, Cascale will publish a white paper for its members that articulates exactly how the Higg Brand and Retail Module (Higg BRM) can assist brands and retailers in fulfilling their reporting requirements under the European Union’s (EU) Corporate Sustainability Reporting Directive (CSRD), while also helping to develop consistent corporate sustainability strategies and avoid duplication across sustainability initiatives. The topic was also recently explored in the “Navigating Legislation & the Higg Index: Higg BRM with CSRD & More” webinar; the video is available here.

The CSRD represents a significant leap forward in the corporate reporting landscape within the EU. It is a directive that requires transposition into the national law of all 27 EU Member States, establishing its requirements as legally binding for companies within its scope. By amending and strengthening the existing Non-Financial Reporting Directive (NFRD), the CSRD aims to broaden the scope of the previous directive by introducing more detailed reporting requirements and including more companies subject to reporting.

The goal of CSRD is to enhance the scope and quality of sustainability reporting across the EU, ensuring that sustainability disclosures are more consistent, comparable, and reliable for stakeholders to make informed decisions. To achieve this, the CSRD mandates the development of the European Sustainability Reporting Standards (ESRS). Designed by the European Financial Reporting Advisory Group (EFRAG), the ESRS provides specific guidance on how companies should report on sustainability. These standards require companies to provide detailed disclosures encompassing qualitative and quantitative information across a range of sustainability topics, such as climate change, environmental protection, social rights, and employee matters.

Higg BRM x CSRD 

The Higg Index is the leading value chain environmental and social impact measurement methodology and suite of tools developed and owned by global nonprofit alliance Cascale (formerly the Sustainable Apparel Coalition) and exclusively available on Worldly, the most comprehensive sustainability data and insights platform. The Higg Index tools are continually evolving to support companies in meeting their regulatory reporting requirements under the CSRD.

While the Higg BRM aligns broadly with ESRS on sustainability topics, it also delves deeper into issues that are particularly material to the textile, apparel, and footwear industry. This focus on sector-specific material issues ensures that users of the Higg BRM can leverage a comprehensive tool that not only meets general reporting requirements but also emphasizes nuances and priorities unique to their industry.

Beginning in 2024, Cascale conducted a thorough analysis of the ESRS and mapped how it aligned with the Higg BRM. The result of this deep analysis is consolidated in a forthcoming report that will outline information on the reporting obligations for companies, including Cross-Cutting Standards (ESRS 1 & ESRS 2), as well as the Topical Standards that guide companies on specific sustainability topics. Data point mapping between the ESRS and the Higg BRM is also detailed, as well as projections of how the Higg BRM will evolve in 2024 to further increase ESRS alignment.

Ongoing analysis and enhancement ensures that the Higg BRM remains a relevant and effective tool in the evolving sustainability landscape, helping organizations to achieve a comprehensive and transparent approach to sustainability reporting.

_{1 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32022L2464 
2 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32014L0095 
3 https://eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX:32023R2772}