Set consequences and incentives for continuous improvement

The brand should impose consequences if suppliers don't meet the brand's requirements.

Clear consequences and incentives are essential to reinforce expectations and encourage continuous improvement across the supply chain. In line with due diligence principles, brands should define how they will respond when suppliers fail to meet ZDHC-related requirements, as well as how strong performers will be recognised or rewarded.

Consequences may include corrective action plans, required root cause analysis, required training, increased monitoring, temporary restrictions or, in severe cases, phasing out the supplier. These measures should be proportional, transparent and communicated in advance.

At the same time, brands should establish incentives that promote proactive engagement, such as preferential sourcing, public recognition, or access to capacity-building opportunities and funding support (e.g., training programmes or Implementation Support Tokens (BISV)).

A balanced system of consequences and incentives motivates suppliers to meet expectations, supports long-term improvement and aligns supplier behaviour with the brand’s sustainable chemical management goals and ZDHC implementation pathway.