SAC and Higg Index Introduction Welcome to a brief introduction to the Sustainable Apparel Coalition and the Higg Index.

Audit Fatigue Plagues the Industry In 2009, Patagonia & Walmart Had A Radical Mission: Collect peers and competitors from across the apparel, footwear and textile sector and together, develop a universal approach to measuring sustainability performance. In 2009, as more and more companies were creating their own versions of audits and measurement tools, Patagonia and Walmart came together to collect peers and competitors from across the apparel, footwear, and textile sector and together, developed a universal approach to measuring sustainability performance. Sustainable Apparel Coalition 2

The Sustainable Apparel Coalition’s vision is of an apparel, footwear and textile industry that produces no unnecessary environmental harm and has a positive impact on the people and communities associated with its activities. From this meeting of industry stakeholders, a vision was established of an apparel, footwear, and textile industry that produces no unnecessary environmental harm and has a positive impact on the people and communities associated with its activities. Sustainable Apparel Coalition 2

The Coalition Stakeholders Brands Retailers Manufacturers Government Industry Associations Nonprofits Service Providers Academia In a rather short period of time, the SAC has expanded to include more that 200 diverse member organizations from around the globe including retailers, brands, manufacturers, industry associations, service providers, academia, nonprofits, and government, all of whom are collaborating to dramatically improve the sustainability practices of our industry. Sustainable Apparel Coalition 4

Transparency is a Driver for Change Transparency is an opportunity to drive impact Transparency enhances accountability Transparency unlocks collaborative innovation This coalition embraces transparency as an essential driver for positive change. We believe transparency creates the opportunity to drive impact, enhances accountability, and unlocks collaborative innovation. It is with this in mind that the Coalition created a suite of tools known as the Higg Index. Foto cred: http://i.vimeocdn.com/ 5 18

Standardized Measurement with Intention The Higg Index, provides standardized measurement for social and environmental performance at each step along the value chain. Over the last 30 years we’ve learned that we can’t audit our way to a sustainable future. The only effective way to drive behavior is to collectively work to improve performance, by measuring the things that matter – with intention. 4 Sustainable Apparel Coalition Sustainable Apparel Coalition

Higg Tools for Each Step Along the Supply Chain DESIGN & PRODUCTION Design & Developments Module (DDM) RAW MATERIALS Materials Sustainability Index (MSI) CONSUMERS & COMMUNITIES Product Environmental Footprint (Launch in 2018) MANUFACTURERS Facilities Environment Module (FEM) Facilities Social/Labor Module (FSLM) LOGISTICS & POLICIES Brand/Retailer Environment Module Brand/Retailer Social/Labor Module RETAIL OPERATIONS Module Pilot (Incorporate into Brand/Retailer Modules In 2018) The Higg Index starts measurement at the design and production phase with the Higg Design and Development Module (Higg DDM), which empowers the product designer to make more informed decisions before they produce a physical sample. The Higg DDM’s raw material selection pulls from the Higg Material Sustainability Index (Higg MSI). The Higg MSI utilizes a Life Cycle Assessment approach to standardize the measurement of environmental impacts for numerous customizable materials and generates an easy to understand score. Next, the Higg Index covers all phases of the manufacturing process with the Higg Facility Environmental Module and the Higg Facility Social/Labor Module. Both modules cover a wide range of impact areas across all manufacturing processes types. Logistics and policies are primarily assessed by brands and retailers through the completion of the Higg Brand/Retailer Environmental Module and Social/Labor Module. Soon, we will be adding retail store operations to these modules as well. Finally, in 2018 we plan to launch the first version of the Higg Product Environmental Footprint tool, which will get us one step closer to ultimately communicating sustainability performance at the individual product level to the end consumer. All of these tools collectively help to drive transparency, collaboration, and scalable improvements that can dramatically change our industry for the better. Sustainable Apparel Coalition Data to Drive Change: How Higg Assesses Impact at All Stages of the Product Lifecycle 7