20 januari 2025
With only five years left to achieve the United Nations' Sustainable Development Goals (SDGs), ensuring living incomes in the supply chains of the garment and food sectors is crucial.
MN, as a fiduciary asset manager on behalf of pension fund clients, participates in the Platform Living Wage Financials (PLWF). This platform encourages companies to promote living wages for workers and incomes for the self-employed in their production chains. PLWF consists of a coalition of 24 financial institutions representing over €7 trillion in assets under management.
On January 16, PLWF published its 2024 annual report. Key findings include:
Garment & Footwear Sector: Nearly three-quarters of the assessed companies disclosed the location of their own sites and Tier 1 suppliers. However, gaps remain in policy alignment with international standards, and limited evidence exists of the effectiveness of living wage strategies.
Food Agriculture and Retail Sector: Despite some progress, there is no substantial evidence of structural improvements in closing living income gaps. Recognition of living wages in policies has improved, but implementation and data tracking remain insufficient.
Impact of Legislation: Upcoming European regulations (CSRD and CSDDD) are influencing company behaviour. While they drive transparency, companies are cautious in disclosures, often delaying detailed reporting until regulations are fully enforced.
Call to Action: MN observes that an increasing number of pioneering companies are taking concrete steps to enhance incomes within their supply chains. However, broader implementation is essential to achieve significant global change.
Event
On the day the report was launched, stakeholders gathered at the office of PLWF member NN Group in The Hague to discuss the results. The International Labour Organization (ILO), the Dutch Initiative on Sustainable Cacao, and clothing brand Adidas were among the speakers.
Adidas –invited by MN - published an extensive supplier list, detailed statistics on grievances, and comprehensive wage data of workers in their supply chain.
‘’This level of transparency, especially regarding wage data, is valuable, since this is the only way to have insight into whether the living wage gap is actually being closed,’’ said Fransje Puts (pictured), Advisor Responsible Investment at MN, at the event.
What does PLWF do?
PLWF was founded in 2018 by Triodos, ASN Bank, and MN. The members of PLWF work together to encourage and support investee companies in addressing low wages and incomes in their global supply chains.