Utrecht, January 16th — The 2023-2024 Annual Report from the Platform Living Wage Financials (PLWF) has revealed both promise and pressing challenges in the global push for living wages and incomes. While many brands in the Garment & Footwear sector have committed to multistakeholder initiatives addressing living wages, there remains limited evidence of real-world impact. In the Food Agriculture and Food Retail sectors, the findings suggest that some companies have set targets for living incomes but that the whole sector lacks structural progress.
As the 2030 Sustainable Development Goals (SDGs) deadline looms, the report stresses the urgency for companies to move beyond policy commitments to measurable actions.
Garment & Footwear Sector: Policies without Impact
The report found that nearly three-quarters of assessed companies disclosed the names and locations of their Tier 1 suppliers, indicating progress in supply chain transparency. Most brands are also active participants in multistakeholder initiatives, such as ACT and Fair Wear Foundation, aimed at advancing living wages. However, only a few companies have demonstrated measurable impact. For instance, while responsible purchasing policies are increasingly common, there is limited disclosure on whether these efforts have translated into meaningful wage increases for workers.
“We see the progress made on policy commitments – but want to help companies report more transparently on actual wages paid and supply chain location data. Through a change in the PLWF methodology, we´ve been more specific about our asks concerning real world impact. This enables us as investors to evaluate which companies are on track to closing the living wage gap, and which are lagging. Without reliable data and combined efforts from a range of stakeholders, millions of workers will continue to earn poverty wages.” says Petter Forslund, Engagement Manager at AP2.
Food Agriculture & Food Retail Sectors: Progress Lags Behind
Unfortunately, the food agriculture and food retail sectors fared no better: despite years of investor engagement, there is limited evidence that companies have implemented living income targets or closed wage gaps structurally. For example, recognition of living income in formal policies has improved, but this progress fails to translate into sector wide tangible outcomes. Most companies assessed still do not pay living wages to their employees, let alone address the issue in their supply chains.
Progress has been made by companies like Unilever and Olam Food and Ingredients (Ofi), which have shown leadership by setting specific targets for living incomes and leveraging supply chain collaborations to achieve measurable progress.
Time-bound targets and a need for collaboration
PLWF and its members call on companies to take urgent action by setting time-bound targets to close living wage and income gaps, publishing detailed roadmaps and regularly disclosing progress. The Platform Living Wage Financials also collaborates with different stakeholders and organisations to further enhance the progress on living wages.
“With the Corporate Sustainability Due Diligence Directive (CSDDD) taking effect, companies will soon be legally required to address human rights risks, including living wages, in their supply chains. This legislation presents an opportunity to hold businesses accountable for their impact on workers and communities,” said Maarten Busch, RI & Sustainability Manager at VBDO.