FAB-D.03.D - Living Income Gap Progress Tracking
Does the company track progress towards closing living income gaps in its supply chain?
About the data
The WBA Food and Agriculture Benchmark measures and ranks the world's most influential food and agriculture companies on their efforts to transform global food systems, tracking how companies work towards food that is healthy and nutritious, produced sustainably within planetary boundaries, and accessible and fairly produced for all. The 2026 edition assessed 350 companies spanning the entirety of the food and agriculture value chain, from agricultural inputs and commodities through to manufacturing, retail, and food service. Companies were scored on 23 food and agriculture-specific indicators and 18 core social indicators across four measurement areas: governance, sustainable food systems, healthy food systems, and inclusive food systems. The benchmark is developed in close collaboration with an Expert Review Committee and is designed to incentivise the most influential companies in the sector to adopt sustainable business practices across their own operations and supply chains, addressing critical issues including greenhouse gas emissions, deforestation, freshwater use, nutrition, and living incomes for farmers, with human rights and social equity at its core. More information 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 must provide quantitative data on how it has improved over the years on closing living income gaps in its supply chain.
To meet this element, the company must have a living income programme in place and thus it must meet two requirements:
Quantitative data
To fulfil this requirement, companies need to disclose quantitative data on living income. Living income metrics can include actual net income of focus area and change in the living income gap, or other progress metrics to track changes in income drivers over time. Examples are (non-exhaustive):
Net household income
Number/share of producers who earn a living income
Progress metrics related to income drivers: total volume sold; yield; production cost; volume purchased with premium; off-farm income.
Progress
To fulfil this requirement, the quantitative data reported by the company needs be comparable and demonstrate improvement.
The data should not be older than the last two years.
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 must provide quantitative data on how it has improved over the years on closing living income gaps in its supply chain.
To meet this element, the company must have a living income programme in place and thus it must meet two requirements:
Quantitative data
To fulfil this requirement, companies need to disclose quantitative data on living income. Living income metrics can include actual net income of focus area and change in the living income gap, or other progress metrics to track changes in income drivers over time. Examples are (non-exhaustive):
Net household income
Number/share of producers who earn a living income
Progress metrics related to income drivers: total volume sold; yield; production cost; volume purchased with premium; off-farm income.
Progress
To fulfil this requirement, the quantitative data reported by the company needs be comparable and demonstrate improvement.
The data should not be older than the last two years.
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