Living Wage Due Diligence Under the CSDDD

This guidance offers recommendations for conducting due diligence on living wages under the Corporate Sustainability Due Diligence Directive (CSDDD). It helps companies understand when and how to carry out living wage due diligence.

Many public tools and resources already support companies in this work. Rather than repeating their content, the guidance sets out an overarching framework and points to those resources.

It was developed as shadow guidance, modelled on the official language and format used by the European Commission, so that it can directly inform the Commission's own guidance development. It does not replace or amend the CSDDD or any official Commission guidelines.

Development was coordinated by IDH and the United Nations Global Compact, with substantive input from WageIndicator, Shift, the Sustainable Agricultural Supply Chains Initiative (SASI), and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), along with several private sector contributors. It draws on the UN Global Compact's Living Wage Guidance, developed through a multi-stakeholder process in 2025 involving specialists, global companies, and their suppliers. It aligns with the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct, the ILO living wage concept, and the UN Guiding Principles on Business and Human Rights, and builds on the OECD Handbook on Due Diligence for Enabling Living Incomes and Living Wages.

Link: Coming Soon