ZDHC & ESG Investment Report
Executive Summary: Making hazardous chemistry risk measurable using shared standards, tools, and independent verification.
What ZDHC is and why it matters
ZDHC helps make hazardous chemistry risk measurable using shared standards, tools and independent verification. For investors and other stakeholders, this moves chemical management and wastewater performance away from self-reported claims and towards more structured evidence that can be compared across suppliers and tracked over time.
What the ZDHC system provides
ZDHC's Roadmap to Zero includes MRSL, Gateway, InCheck, ClearStream, and Supplier to Zero and Brands to Zero. Together, these tools help set consistent expectations for chemical inputs, provide facility-level performance information, and generate verified wastewater performance outputs that can be used in reporting.
Gateway
Relates to input chemistry. Contains 142k+ MRSL verified formulations.
InCheck
Provides MRS conformance levels.
ClearStream
Provides wastewater test results against the ZDHC Wastewater Guidelines.
Why investors and ESG raters care
ZDHC data can strengthen the evidence base used in ESG assessment and engagement by improving the quality, comparability, and traceability of chemical and wastewater related data.
92% reduction in testing costs
Case studies show practical value on the ground, including a 92% reduction in testing costs and a 16% reduction in RSL failures linked to MRSL Level 3 progress, alongside reported resource efficiency gains and facility-level cost savings.
Regulatory and reporting relevance
ZDHC evidence can support EU reporting and due diligence by providing structured inputs that are relevant to CSRD reporting under ESRS E2 to E5, particularly on chemicals, wastewater, and related impacts. It also strengthens CSDDD due diligence evidence through supplier requirements, verification outputs, and documented improvement pathways.
For EU investor disclosure, ZDHC programmes and data can strengthen the evidence and data quality used for SFDR PAI reporting:
- AI 8 (Emissions to water): Using supplier wastewater participation and performance evidence.
- PAI 9 (Hazardous waste): Using chemical management conformance outcomes and evidence of hazardous chemical elimination and substitution.