Living income and living wage tools support effective due diligence

Despite recent regulatory shifts within the EU, effective risk based due diligence remains a vital process for enhancing the sustainability and resilience of supply chains .

Corporate due diligence, guided by the Organisation for Economic Co-operation and Development Guidelines and the UN Guiding Principles, has been around for years and provides an important foundation for companies to address key environmental and social risks within their supply chains.

Ensuring fair wages and incomes is not only a growing expectation under frameworks like the EU Corporate Sustainability Due Diligence Directive (CSDDD) and OECD Guidelines but also a fundamental human right recognised in international law. This is essential for dignity, equality, and sustainable global supply chains.

Moreover, ensuring a living income and living wage can also bring business benefits.

When a farming household earns a living income, they are able to meet their basic needs  - such as food, water, housing, healthcare and education), while  having the means to invest in their farm. That can mean reduced risk, better quality products, improved yields and longer-term viability for buyers. This is a win-win for both farmers and the businesses that source from them.

The same benefits apply to ensuring a living wage .  Leading companies worldwide are working to safeguard human rights in their supply chains and to ensure decent work.  This will bring tangible business advantages, such as increased productivity and lower employee turnover as well as improved recognition and growth in market share.

As due diligence efforts move ahead, it is essential that we seize this momentum to close living income and wage gaps within global supply chains. 

In this publication, we explore how IDH supported tools and resources, designed to support living income and living wage approaches, help companies implement effective due diligence and create tangible, lasting impact.

Discover how the collaborative efforts IDH facilitates can support companies to not only comply but go beyond compliance, achieving real, positive change.

Download the publication "Navigating Due Diligence" here.