Living Wage Policy (supply chain)
About the data
This metric is based on a set of indicators from the Corporate Human Rights Benchmark. Specifically, it is based on indicator D1.1.b/D2.1.b from the 2018 methodology.
The indicator is described as follows:
"The Company ensures its suppliers pay their workers a living wage, which is regularly reviewed and negotiated through collective bargaining with relevant trade unions where they are operating. There are numerous definitions of living wage but the core concept is to provide a decent standard of living for a worker and his or her family based on a regular work week not including overtime hours. A living wage is sufficient to cover food, water, clothing, transport, education, health care and other essential needs for workers and their entitled official dependents and provide some discretionary income. Workers also receive equal pay for equal work."
The categories for this metric have been determined by considering CHRB's scoring criteria.
The CHRB sets the following criteria for awarding a Score of 1:
The Company includes living wage guidelines in its contractual arrangements with its suppliers or its supplier code of conduct OR the Company describes how it works with suppliers to improve their living wage practices.
Methodology
Information about this metric could be found in a company's sustainability report or corporate social responsibility report, but it may also be found in other documents the company has published, most notably a supply chain policy or code of conduct document.
This metric is about collecting data on how living wage policies are described, it is therefore important to include quotations from sources that describe the company's living wage policies/practices.
Answer options should be selected as follows:
No Living Wage Policy: Where the company does not refer a living wage or a similar concept in relation to its communications with suppliers.
Living Wage guidelines: Where the company includes living wage guidelines in its contractual arrangements with its suppliers or its supplier code of conduct.
Living Wage practices: Where the company describes how it works with suppliers to improve their living wage practices.
Living Wage progress: Where the company provides an analysis of trends in progress made.
If no such policy is found, the answer is No Living Wage Policy (not Unknown).