Activity Badges will be displayed when participating in clubs, sports teams, etc. Each activity has a primary image, which can optionally be uploaded for use as the badge as well. To upload a badge image, go to the Activities page. Select the activity you would like to add a badge for, then click the tab labeled "Badge". Finally, click "select new image file" and upload your image.
Schools can also create Activities for lists like 'Early Release' or 'Honor Roll' to implement digital badges for those specific groups of students.