Utrecht, January 14th — Living wages are gaining ground on both political and corporate agendas. The 2024–2025 Annual Report from the Platform Living Wage Financials (PLWF) highlights tangible progress across the Garment & Footwear and Food Agriculture and Food Retail sectors, in step with growing political attention.
“The inclusion of living wages in the political declaration of the Second World Summit for Social Development could spark stronger global governmental accountability and accelerate corporate action,” says Fransje Puts, Advisor Responsible Investment at MN. “Without credible wage data and measurable outcomes, companies risk failing to meet political expectations and facing heightened investor scrutiny.”
Garment & Footwear sector: upward movement, limited transparency
The report identifies encouraging developments in the Garment & Footwear sector. Six out of 28 companies moved up a category this year, including three now classified as Leading. Access to remedy showed the strongest improvement, and all assessed companies now uphold freedom of association and collective bargaining rights, with most communicating these commitments to suppliers. Responsible purchasing practices are relatively well established, providing a stronger foundation for wage progress.
However, progress remains uneven and significant gaps persist. Nearly 80% of companies do not disclose the length of relationships with their main suppliers, limiting transparency regarding supply chain stability. In addition, almost two-thirds of companies make little or no use of indicators to assess the effectiveness of their living wage efforts, making it difficult to evaluate real-world impact. Collaboration is widespread, but its impact remains difficult to substantiate. While most companies participate in multi-stakeholder initiatives, evidence that collaboration leads to measurable wage improvements is still limited.
Food Agriculture and Food Retail sectors: stronger policies, uneven outcomes
Progress is evident across the Food Agriculture and Food Retail sectors, signalling a growing recognition of living wages as a business priority. Four out of 22 companies moved up a category, and most agricultural companies now have formal living wage policies in place. Complaints mechanisms are widely available across food companies and, in most cases, accessible to external stakeholders, reflecting increased attention to worker voice.
Nevertheless, stronger policies have not consistently translated into higher wages on the ground. Companies still need to improve purchasing practices, data collection on wage and income gaps, and transparency around grievances. Tracking performance remains a key weakness across both food sectors. Without reliable performance data, companies struggle to demonstrate progress to investors, regulators and other stakeholders demanding evidence-based sustainability strategies.
2026: from commitments to measurable impact
As living wages gain traction on the political agenda, 2026 presents a real opportunity to turn progress into lasting change. While the overall trend is upward, more than half of the companies assessed in 2025 remain in the two lowest performance categories: Embryonic and Developing. This highlights the need for companies to move beyond commitments and policies and accelerate tangible action to close living wage and living income gaps in their supply chains. Adjusting purchasing practices, embedding living wages into core business decisions and measuring progress will be critical to ensuring that momentum delivers real improvements for workers.
“In the coming year, the Platform’s ambition remains unchanged,” says Liselotte Koole, RI and Sustainability Manager at VBDO. “To normalise the payment of living wages and incomes globally, not only as a social imperative, but as a cornerstone of sustainable, resilient value chains and long-term investor value.”