Environment – General – User Resources: How To Higg

General

The Environment General section focuses on how well a company manages environmental risks and demonstrates its commitment to reducing its impact on the planet. In this section, companies are evaluated on their ability to identify and mitigate environmental risks, such as carbon emissions, water usage, and waste management, and what environmental policies exist within the company and their importance.

Helpful Resources

World Resources Institute

EG01. Has your company carried out a business wide environmental risk assessment to identify and prioritize the most significant or salient risk areas the business is facing in relationship to its environmental impacts?

About this question

By carrying out a business-wide risk assessment, companies can identify and prioritize the most significant environmental risks they face and take appropriate measures to prevent and mitigate those risks. This can help a company to avoid legal liabilities, reputational damage, and operational disruptions, while fulfilling their environmental responsibilities and meeting stakeholder expectations.

An environmental risk assessment of a company should include a thorough analysis of the potential risks associated with the company’s operations, products, services, and supply chains. The assessment should consider the company’s impact on the environment, and should also evaluate the effectiveness of the company’s policies and procedures. The assessment should include input from internal and external stakeholders. The output of the assessment should be a prioritized list of the most significant environmental risks, along with recommendations for mitigating and managing those risks.

Answer yes if your company has assessed actual and potential environmental impact and risks and has prioritized the most salient risks and impact to be acted upon
Answer no if your company has not conducted an environmental risk assessment

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: eg.MQ

Evidence

Either

Link to published outputs of environmental risk assessment process (e.g., ESG strategy or report, sustainability report, corporate website, Annual Report and Accounts)

Internal risk assessment documentation

and

Evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, board meeting papers etc.)

EG02. Which impact areas are included in your company's environmental risk assessment? (Select all that apply OR None)

About this question

The environmental risk assessment should cover risks that your company may cause or contribute to through its own activities, or directly linked to your company’s operations, products or services by its business relationships. This question tests the breadth of the environmental risk assessment carried out, reflecting the five impact areas in the environment pillar defined within this assessment.

Select one or more impact areas that your company has assessed during its risk assessment process
Select none if your company has not assessed any impact in your risk assessment process or you have not have an environmental rights risk assessment

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: eg.Mg

Evidence

Either

Link to published outputs of environmental risk assessment process (e.g., ESG strategy or report, sustainability report, corporate website, Annual Report and Accounts) including impact areas covered

Internal risk assessment documentation and
Evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, board meeting papers)

EG03. Which value chain stages are included in your environmental risk assessment? (Select all that apply OR None)

About this question

Conducting a comprehensive environmental risk assessment is critical to developing effective risk management strategies. The environmental risk assessment should cover risks that your company may cause or contribute to through its own activities, or directly linked to your company’s operations, products or services by its business relationships. This detailed evaluation should not only consider direct impacts but also encompass the broader implications along the entire value chain. When assessing risks at each stage of the value chain, it is essential to clearly identify and specify these risks. Accurate identification of risks at each tier is crucial for developing precise and effective risk mitigation strategies. This question provides an opportunity to demonstrate the depth and precision of the environmental risk assessment carried out by your company.

Select one or more value chain stages that your company has assessed to develop your environmental risk assessment
Select none if your company has not engaged with any stakeholders in your risk assessment process or you have not have an environmental risk assessment

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: eg.Mw.b (For: Brand, Brand and Retailer)

Reference ID: eg.Mw.r (For: Retailer)

Evidence

Either

Link to published outputs of environmental risk assessment process (e.g., ESG strategy or report, sustainability report, corporate website, Annual Report and Accounts)

and

Indication to where the published document demonstrates risk assessment of the value chain stages selected in your answer

Internal risk assessment documentation

and

Indication to where the documentation demonstrates risk assessment of the value chain stages selected in your answer

and

Evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, board meeting papers)

EG04. Were external standards, tools or frameworks specific to environmental risks referenced in your company's environmental risk assessment?

About this question

This question tests the robustness of your company’s risk assessment process by measuring to what extent it refers to relevant frameworks. Examples of relevant frameworks include Global Biodiversity Score, ZDHC, WWF Water Risk Filter, GHG protocol, etc. In all cases you should be able to evidence use of references.

Answer yes if your company has assessed actual and potential impact and risks against key frameworks
Answer no if your company has not assessed actual and potential impact and risks against key frameworks

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: eg.NA

Evidence

Either

Link to published risk assessment (e.g., ESG strategy or report, corporate website, Annual Report and accounts) demonstrating alignment with international standards

Internal risk assessment documentation demonstrating alignment with international standards

and

Evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, board/senior management resolutions or meeting minutes)

EG05. Does your company have a process to update the risk assessment of environmental priorities in response to changing business or external circumstances?

About this question

Risk assessments in companies should be reviewed periodically, at least once a year or whenever significant changes occur in the company’s operations, supply chain, or regulatory landscape that may impact environmental risks. This question asks if you have a mechanism or process in place to ensure these updates are undertaken regularly.

Examples of changing circumstances include amongst others: opening a new sourcing country, entering a new market, new national or international regulation, (geo) political developments, and/or impact of climate change or other geographical crises.

Answer yes if your company has a process in place that defines how and when environmental risks assessments should be updated
Answer no if your company has no process in place for updating environmental risks assessments

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: eg.NQ

Evidence

Either

Link to published risk assessment policy indicating how often and when risk assessments are carried out (e.g., Corporate governance/sustainability section of company website, Annual Report and accounts)

Internal risk assessment policy and process documents, indicating how often and when risk assessments will be carried out

and

Evidence of oversight by board/senior leadership (e.g., Director/General Counsel signature, ESG Committee minutes, board/senior management resolutions or meeting minutes

EG06. Does your environmental risk assessment cross-reference social risks arising from your company's activities?

About this question

Environmental impacts often intersect with social aspects, affecting workers and community rights . This question seeks to determine whether your environmental risk assessments also consider social risks that arise from your company’s activities, operations, and value chain and how both dimensions (environmental and social) are interrelated.

To adequately respond, consider if your environmental risk assessment process:

Identifies both direct and indirect social risks that may arise from environmental impacts of your company’s activities, including operations and supply chain.

Incorporates a systematic approach for evaluating and integrating these social risks into your environmental risk assessment.

Has defined protocols for how and when to include social risks in environmental assessments, ensuring a holistic view of sustainability.

Answer yes if your company has a process in place that defines how and when social risks should be included in your environmental risk assessments
Answer no if your company has no process in place that defines how and when social risks should be included in your environmental risk assessments

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: eg.Ng

Evidence

Either

Link to published outputs of environmental risk assessment process demonstrating the integration of associated social risks (e.g., ESG strategy or report, corporate website, Annual Report and accounts)

Internal environmental risk assessment documentation demonstrating the integration of associated social risks

and

Evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, board/senior management resolutions or meeting minutes)

EG07. For significant areas of environmental risk, has your company carried out additional, more granular risk assessments, in order to identify and assess specific actual and potential adverse impacts and opportunities?

About this question

Once your company has identified the most salient risks, it should determine more specifically the details of these risks and whether there are actual or potential impacts. This question aims to measure to what extent your company is undertaking a more thorough analysis of the most salient risks.

In certain cases, additional assessments are necessary to determine the exact scope, nature and incidence of risks and adverse impact. It will also inform the relationships to your company’s operations with the risks and impact (has your company caused or contributed to the risks and adverse impacts identified).

Below are some granular examples, but not limited to:

- Climate: Detailed analysis of the carbon footprint of production processes, assessment of the impact of climate change on raw material availability, and evaluation of the company’s contribution to greenhouse gas emissions.
- Water: Assessing water usage and efficiency in manufacturing processes, analyzing impacts on local water resources in production areas, and identifying risks related to water scarcity.
- Waste: Evaluating the lifecycle of products to identify waste generation points, analyzing waste management practices, and assessing opportunities for recycling and circular economy initiatives.
- Chemicals: Conducting in-depth assessments of chemicals used in production, their impact on workers’ health and the environment, and exploring safer alternatives.
- Biodiversity: Evaluating the impact of sourcing practices on ecosystems, analyzing the effect of production on local biodiversity, and assessing the company’s role in habitat destruction or conservation.

Answer yes if your company has carried out more detailed assessment on identified key risks to determine, amongst others, nature and scope
Answer no if your company has not carried out more detailed assessments for the identified salient risks

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: eg.Nw

Evidence

Either

Link to published outputs of detailed environmental risk assessment processes demonstrating deeper examination of salient environmental risks identified (e.g., ESG strategy or report, corporate website, Annual Report and accounts)

Internal environmental risk assessment documentation demonstrating deeper examination of salient environmental risks identified

and

Evidence of oversight by board/senior leadership (e.g., ESG Committee minutes, board/senior management resolutions or meeting minutes)

EG08. Does your company have an Environmental Policy, or equivalent corporate statement, recognizing your company's commitment to manage its business in a way that meets local, national and international regulations and good practice in order to prevent, mitigate and remediate negative impacts on the environment?

About this question

An Environmental policy is a company’s public expression of its commitment to meet its responsibility to respect internationally recognized environmental standards. Policies that state a corporate commitment are a critical component of corporate governance. This question asks for a high level commitment to a corporate environmental policy approved by the board or senior management, that describes how the company will identify, prevent and address environmental risks it has identified.

The policy is likely to include an overview of the steps taken to develop the policy, information on priority areas, commitment to make resources available, allocating a responsible team, defining the process by which salient environmental risks will be assessed or mitigated, and how they will be reported on.

Answer yes if you can provide a link to your company’s published environmental policy as described above
Answer no if there is no environmental policy or if the policy is not in the public domain

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: eg.OA

Evidence

Provide:

Link to published policy, statement or group of policies on company website

EG09. Which impact areas does your company's Environmental Policy or equivalent corporate statement address? (Select all that apply OR None)

About this question

A company’s environmental policy sets the standard for responsible business practices and should include specific impact areas. This question aims to measure the extent of your company’s commitment around certain key impact areas.

Select one or more related impact areas covered by your company’s environmental policy
Select none if you cannot provide evidence of your environmental policy covering any of the impact areas listed

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: eg.OQ

Evidence

Provide:

Link to published policy, statement or group of policies on company website

EG10. For which of these impact areas does your company have specific policies or equivalent documents? (Select all that apply OR None)

About this question

The company’s environmental policy sets the standard for responsible business practices, but certain impact areas may pose specific challenges that require tailored policies to address them. This question aims to determine your commitment to respecting the environment across various impact areas.

Select one or more related impact areas if you can provide evidence of a tailored policy (or equivalent document) developed to cover a given impact area with specific challenges
Select none if you cannot provide evidence of a tailored policy (or equivalent document) developed to cover a given impact area with specific challenges)

Applicability: Brand, Retailer, Brand and Retailer

Reference ID: eg.MTA

Evidence

Either

Link to published policies, statements or group of policies on company website

Internal (unpublished) policies dated and signed on behalf of the board / senior leadership

and

Screenshots demonstrating how unpublished policies are made available to stakeholders (e.g. employee intranet, supplier portal)

Note: Policies can be standalone or combined, for example a company’s published Environmental Policy could be a standalone statement, but could also contain within it, policies on water or waste. The relevant section of the document should be indicated to the verifier, e.g., page or section number