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New recognition process for living wage benchmark methodologies - IDH - the sustainable trade initiative

New recognition process for living wage benchmark methodologies

To assist companies in identifying living wage benchmarks they can work with to further their own strategies on living wages, IDH has developed a process that gives recognition to robust methodologies that comply with a set key predefined criteria.

Reliable living wage estimates within different producing regions are essential to advancing dialogue between sector actors in their respective value chains, including producers, workers’ organizations, and buyers. So equipped, these players can set goals and work on solutions to address potential living wage gaps, but it is often challenging to identify living wage benchmarks developed using sound methodologies.

The Anker methodology recommended by IDH is one such robust and widely accepted methodology. In several key producing regions, however, living wage benchmarks have been developed using other methodologies, and IDH acknowledges that these could also help interested parties move forward with living wage efforts.

To this end, IDH has over the past year worked to create a mechanism to solve this constrain:

  1. Creating alignment by launching the Roadmap on Living Wages, an initiative steered by a dozen leading companies with advice from key sustainability organizations, to build consensus on definitions, tools, and approaches for companies to work on living wages in a uniformed way.
  2. Developing guidelines by compiling a set of Criteria for Recognizing Living Wage Benchmark Methodologies, based on the above characteristics with the support and approval of the members of the Roadmap on Living Wages.
  3. Giving recognition to other robust methodologies that are available in the market that complete a process to prove their compliance with such criteria.

The development of this recognition process is an integral part of IDH’s Roadmap on Living Wages and becomes particularly important in countries or regions where there is no available benchmark developed using the Anker methodology.

All living wage benchmark methodologies are invited to apply for recognition. The process starts with an application form, followed by a self-assessment against the aforementioned criteria, and an independent verification of compliance.

IDH is committed to assisting companies in measuring potential gaps between current wages and up-to-date, credible living wage estimates that are relevant to their respective locations. We expect that this process will guide interested parties working on living wages in selecting benchmarks generated through IDH-recognized methodologies as a way of advancing dialogue and creating solutions to address potential living wage gaps

Sonia Cordera, IDH Deputy Director for Fresh & Ingredients

Click here for more information on the Recognition Process for Living Wage Benchmark Methodologies