A new, standardised methodology has been developed by Cascale and Worldly for apparel and footwear companies using the Higg MSI to more accurately calculate forest, land-use, and agriculture (FLAG) emissions. It will allow separation of FLAG emissions from aggregated GHG data and integration of land use change figures using base and conservative case assumptions. The approach will deliver comparable baselines essential for Science-Based Targets initiative (SBTi) compliance and alignment with upcoming GHG Protocol FLAG reporting rules.
- The methodology will enable accurate FLAG baselines for SBTi compliance when emissions from FLAG sources exceed the 20% reporting threshold for qualifying companies.
- Standardised assumptions for integrating land use change data will improve accuracy and ensure comparability across apparel and footwear companies reporting FLAG emissions.
- It seeks to resolve the Higg MSI’s aggregation of FLAG and non-FLAG emissions, enabling proper separation and correct baseline calculation for accurate reporting purposes.
- The report Navigating Forest, Land, and Agriculture (FLAG) Emissions was released by Cascale, formerly Sustainable Apparel Coalition, and Worldly on Thursday.
WHAT THIS MEANS: Tighter climate disclosure regulations and SBTi obligations make accurate FLAG emissions measurement essential for apparel and footwear companies. Under SBTi requirements, companies with over 20% of emissions from FLAG sources must set separate reduction targets. The upcoming GHG Protocol FLAG guidance will formalise calculation standards, making early adoption of consistent methodologies crucial to reduce compliance risks and ensure accurate, comparable reporting across the sector in coming years.
- Companies approaching the 20% FLAG emissions threshold face increased compliance obligations under current SBTi requirements and forthcoming GHG Protocol standards.
- Establishing accurate FLAG baselines will significantly reduce discrepancies between sustainability disclosures from different apparel companies across the global marketplace.
- Reliable FLAG emissions data will enhance credibility with regulators, investors, and supply chain partners seeking consistent, verifiable reporting standards across the sector.
WHAT THE NUMBERS SHOW: Research from Cascale and Wordly indicates that FLAG emissions for most apparel and footwear companies are below proposed mandatory thresholds. However, variation is significant, as material mix and supply chain design determine whether a company exceeds the 20% mark. Natural fibre-heavy portfolios can surpass limits, while synthetic-heavy ones generally remain below. Reliable baseline calculation is critical for companies approaching compliance thresholds or considering SBTi-aligned target commitments for FLAG reductions.
- FLAG emissions accounted for 22% of global greenhouse gas totals in 2019, According to the Intergovernmental Panel on Climate Change (IPCC)’s Sixth Assessment Report (2023).
- Sector averages remain below mandatory FLAG reporting thresholds, but company-level variations can be substantial depending on raw material sourcing strategies.
- High FLAG material content increases the likelihood of triggering separate SBTi target-setting obligations for apparel companies meeting threshold criteria.
THE BROADER VIEW: Standardising FLAG emissions reporting aligns with a broader industry movement towards consistent sustainability measurement. Accurate FLAG data allows better benchmarking and more targeted decarbonisation planning across apparel supply chains.
- Improved reporting will help companies meet regulatory requirements while enhancing transparency for stakeholders. As datasets strengthen, companies can integrate FLAG data into wider sustainability strategies and align more effectively with global climate objectives driving change across the apparel sector.
- Consistent methodologies guide companies in prioritising supply chain interventions for maximum efficiency and the greatest measurable emissions reduction impact.
COMING UP: Cascale and Worldly will expand industry engagement on FLAG emissions in September 2025. Both organisations will seek stakeholder feedback on the methodology’s implementation and data integration challenges. Updates will be incorporated into future versions of the Higg MSI, with the goal of preparing the sector for full alignment with GHG Protocol FLAG guidance once finalised. Engagement events will be used to address application and compliance readiness.
- The Cascale Annual Meeting will include technical sessions on the FLAG emissions methodology and its application across the apparel and footwear sector.
- Worldly’s Customer Forum will address operational issues and share solutions for implementing FLAG baseline calculations in complex global supply chains.
WHAT THEY SAID:
Accurately measuring and reporting FLAG emissions remains a significant challenge for many organisations. Data quality, availability, and alignment with evolving standards continue to be major hurdles. This framework offers a critical starting point for companies, enabling more consistent and harmonised reporting across the industry.
— Joël Mertens
Director of Higg Product Tools
Cascale
This report provides a robust methodology that enables Higg MSI users to calculate a credible FLAG emissions baseline. Establishing this baseline is key to meeting emerging climate disclosure requirements. As FLAG data and standards evolve, we will continue collaborating with Cascale and the industry to refine methodologies and shape best practices that drive supply-chain decarbonisation.
— Paula Bernstein
Associate Director of Sustainability Science
Worldly
