Define ZDHC-related indicators for business decisions

Version 1 - Last updated 15 Apr 2026

Brands should keep track of the progress of implementation of their supply chain as well as their own impact. In order to do so, KPIs are needed to be able to quantify performance.

ZDHC-related criteria and strategy should be integrated into regular business processes and procedures. To drive effective implementation of sustainable chemical management, brands should integrate sustainable chemical management-related indicators into their business decision-making processes. Procurement decisions should be based on supplier performance that goes beyond compliance with minimum industry requirements, with ZDHC-related criteria integrated into decision and procurement processes. KPIs allow brands to monitor supply chain progress, evaluate their own performance, and assess the impact of their strategy over time

These indicators should reflect the scale of supplier adoption, the quality of implementation and progress towards targets.

Examples - Indicators
Share of facilities completing Performance InCheck or ClearStream reporting,  percentage of MRSL conformant chemical products used in the facility, wastewater compliance rates, and participation levels in Supplier to Zero.

Incorporating such KPIs into sourcing decisions, supplier scorecards and internal reporting ensures that sustainable chemical management performance becomes an integral part of business operations rather than a parallel process. This data-driven approach strengthens accountability, supports risk-based prioritisation and enables leadership to evaluate progress in a transparent and measurable way.

Example - Brands should:
- Implement a KPI-based system or scorecard to measure how the Buying/Sourcing/Purchasing department's decision-making is impacting the ZDHC implementation efforts.
- Implement a suppliers rating system, including ZDHC-related criteria and integrate the system and the ZDHC-related criteria into the procurement/decision process.