Action Plan: provides a framework wherein goals can be effectively managed by the individuals/team tasked with this responsibility. The plan helps to break larger tasks into smaller parts over a given time period, which makes it easier to execute and manage.
Adverse Impacts: considered as a harmful impact of environmental and human rights risks. The term “harm” and “adverse impacts” are used interchangeably throughout the How to Higg Guide.
Due Diligence: is a process through which businesses can identify, prevent, mitigate and account for how they address their actual and potential adverse impacts in relation to their own operations as well as throughout their supply chains.
Finished Component Manufacturing: This refers to manufacturers that supply trims/accessories comprising the finishing components of an apparel, footwear and hard goods products. Examples are zippers, buckles, snaps, buttons, etc.
Foam: A solid “open cell” or “closed cell” foam material commonly used in packaging and footwear. Includes EVA, PE, and PU foam. More information can be found through Higg MSI on Higg.org platform
Grievance Mechanism: a channel for individuals to raise concerns or feedback about management practices, or any other issue related to the workplace.
Human Rights: rights inherent to all human beings, regardless of race, sex, nationality, ethnicity, language, religion, or any other status. This includes the right to life and liberty, freedom from slavery and torture, freedom of opinion and expression, the right to work and education, and many more. Everyone is entitled to these rights without discrimination.
Impact: The effect on people, communities or the environment that happens as a result of an action or inaction.
Licensee: an organization who is the holder of a license to make, do or own something.
Licensor: an organization (also known as brand owner) who gives another organization official permission to make, do, or own something.
Likelihood: is predicting how likely the risk may exist or occur.
Material Converter: An organization that coordinates between Tier 2, 3, 4 suppliers to develop finished materials to be used in the final products. Definitions for the textile/apparel industry supplier tiers can be found here
Preferred Fiber or Material: The Higg BRM definition of “preferred” aligns with Textile Exchange, which defines a preferred fiber or material as : one which results in improved environmental and/or social sustainability outcomes and impacts in comparison to conventional production.
Primary Materials: The key materials used to make the final product. Primary materials are all the materials that, when totalled, represent at least 80% of the total material usage.
Program: intends to create a positive change in a specific area. A program provides details on the how and what will be achieved through goals, requirements, actions and accountability metrics to improve in a specific area. Policies, strategies, projects and action plans are all elements of a program.
Purchasing Practices: ACT on Living Wages defines purchasing practices as the way that global retailers & brands interact and do business with the manufacturers that supply their products. Purchasing practices encompass strategic planning, sourcing, development, purchasing (buying) and the underlying behaviours, values and principles which impact workers.
Remediability: How hard it would be to put right the resulting harm.
Risk: OECD Due Diligence Guidance and the UN Guiding Principles on Business and Human Rights, have explicitly defined risk as: the likelihood of adverse impacts on people, the environment and communities that companies have directly caused, contributed or linked to – this does not include risk to the business itself.
Risk Assessment: aims to identify both the likelihood and severity of a potential or actual harm within the value chain. More information on environmental risk assessment please view here and for social risk assessment here
Risk Factors: influences the level of risk. Examples of risk factors are sector, country, business model, sourcing model and product.
Salience: something that is salient and important. This is determined based on the risk and the severity of harm (adverse impact) the company’s activities or business relationships has on people, the communities and the environment.
Severity: is based on how grave and how widespread the impact would be and how hard it would be to put right the resulting harm.
Supply Chain: All activities involved in the creation and transport of products between businesses and end customers. This includes material manufacturing, product manufacturing, distribution, and logistics (inbound and outbound).
Sustainability Attribute: A verifiable and credible claim that improve environmental or social sustainability.
Value Chain: All activities involved in the creation, sale, and servicing of products to the end customers. This includes product development, manufacturing, logistics (inbound and outbound), company operations, distribution and customer support services (example repair programs).