Wastewater input-outputs are regularly tested as per Local Government standard and not ZDHC Methods. Will it be acceptable as per Higg FEM 4.0?

Yes, a facility can choose to get the wastewater tested as per local government standards. That will be accepted as per Higg FEM 4.0. However, if the facility has selected ‘reporting against ZDHC standard’, in the module then they are required to follow ZDHC methods.