FAB-D.03.A - Living Income Gap Assessment Disclosure
Does the company disclose how it assesses living income gaps for some commodities and/or regions?
About the data
This metric is part of the World Benchmarking Alliance's (WBA) suite of benchmarks, which measure and rank the world's most influential companies on their contributions to a sustainable and equitable future. More information on WBA's methodology can be found here.
Methodology
In many parts of the world, farming households continue to struggle to make ends meet,
with average incomes often hovering around or below the poverty line (Oxfam, 2021) and falling far
short of the living income benchmark. Living income, which represents the cost of a decent standard
of living, is conceptually different from living wages2F2F2F
3. It represents the earnings of those who are self-
employed and is particularly relevant to the food and agriculture sector, wherein a vast number of
small-scale farmers, fishers and other producers are self-employed. Companies that source products
from small-scale farmers, fishers and other producers have a shared responsibility to ensure these
producers earn a fair and decent livelihood.
Research Guidance:
The company discloses the regions and/or commodities for which it has identified living income benchmarks and describes how it calculates the difference between the living income benchmark and current income of a typical farming/fishing household in a particular location. It also discloses the source of these benchmarks, for example:
Living Income Community of Practice,
Anker Research Institute,
ALIGN,
Heifer International
For some regions, there are no benchmarks available, and in these cases the company can describe how it determines the benchmarks, or utilizes existing secondary data.
Example of how a company assesses living income gaps:
By collecting data on farmer/fisher and household income, and comparing it with a living income benchmark
Using existing secondary income data and, when relevant, applying adjustments and compare it with a living income benchmark
DEFINITIONS
Living income: The net annual income required for a household in a particular place to afford a decent standard of living for all members of that household. Elements of a decent standard of living include food, clean water, sanitary housing, education, healthcare, transportation, clothing, and other essential needs including provision for unexpected events.
How is it different from living wage? The concept of a living wage is applicable in the context of hired workers, such as farm or factory workers, who receive a salary for their labour. Living income, on the other hand, refers to situations of self-employment and is applicable to farmers, fishers and small-scale producers.
Living income benchmark: An estimate of the cost of a basic and decent standard of living for a household in the area. It answers the question: how much does a typical household in a particular place need to earn, from all income sources, in order to live a decent standard of living?‚
Living income gap: The difference between the living income benchmark and current income of a typical farming/fishing household in a certain location.
with average incomes often hovering around or below the poverty line (Oxfam, 2021) and falling far
short of the living income benchmark. Living income, which represents the cost of a decent standard
of living, is conceptually different from living wages2F2F2F
3. It represents the earnings of those who are self-
employed and is particularly relevant to the food and agriculture sector, wherein a vast number of
small-scale farmers, fishers and other producers are self-employed. Companies that source products
from small-scale farmers, fishers and other producers have a shared responsibility to ensure these
producers earn a fair and decent livelihood.
Research Guidance:
The company discloses the regions and/or commodities for which it has identified living income benchmarks and describes how it calculates the difference between the living income benchmark and current income of a typical farming/fishing household in a particular location. It also discloses the source of these benchmarks, for example:
Living Income Community of Practice,
Anker Research Institute,
ALIGN,
Heifer International
For some regions, there are no benchmarks available, and in these cases the company can describe how it determines the benchmarks, or utilizes existing secondary data.
Example of how a company assesses living income gaps:
By collecting data on farmer/fisher and household income, and comparing it with a living income benchmark
Using existing secondary income data and, when relevant, applying adjustments and compare it with a living income benchmark
DEFINITIONS
Living income: The net annual income required for a household in a particular place to afford a decent standard of living for all members of that household. Elements of a decent standard of living include food, clean water, sanitary housing, education, healthcare, transportation, clothing, and other essential needs including provision for unexpected events.
How is it different from living wage? The concept of a living wage is applicable in the context of hired workers, such as farm or factory workers, who receive a salary for their labour. Living income, on the other hand, refers to situations of self-employment and is applicable to farmers, fishers and small-scale producers.
Living income benchmark: An estimate of the cost of a basic and decent standard of living for a household in the area. It answers the question: how much does a typical household in a particular place need to earn, from all income sources, in order to live a decent standard of living?‚
Living income gap: The difference between the living income benchmark and current income of a typical farming/fishing household in a certain location.
License
Topics
Framework Mappings
Value Type
Category
Options
Yes
No
Assessment
Steward Assessed
Report Type
Aggregate Data Report