Criteria 3.1: Criteria 3.1: Prices paid for natural raw materials are fair
3.1.4 Measures are in place to contribute to a living income for producers of natural raw materials. Examples of measures to contribute to a living income are listed in guidance.
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Living income enables producers/collectors to achieve a decent standard of living. According to the Living Income Community of Practice, this is 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, water, housing, education, healthcare, transport, clothing, and other essential needs including provision for unexpected events.'
external assessments from professional organisations are used to define a local living income for producers/collectors according to defined items above
if no external studies are available, a survey could be conducted by the OaS (supported by third parties if necessary) to gather the information on the actual status of producers/collectors regarding the list of elements defined as providing a decent standard of living (periodic costs versus periodic income)
based on this information (definition of the amount of a living income as per profesional studies or direct surveys to the field operators), a progressive planned strategy to reach this living income could be set up, including in-kind benefits (timelines according to OaS' resources and negotiated supply chain agreement with buyers)
this strategy may include the empowerment of producers/collectors aimed at looking for other market opportunities or income diversification to reduce dependence on the OaS and to the activity itself (this can also be the diversification of commercial offers around the raw material: processed raw material with added value, touristic or handicraft development, etc)
Other examples of measures to contribute to a living income include:
valuing the average time spent by producers on cultivation or wild collection activities for the natural raw material at a rate proportional at least to a living wage (see 6.3.2 on definition and calculation of living wage). To achieve compliance for this indicator, it is not required to reach a wage for producers that is proportional to a living wage, but measures need to be significant and serious as evidence of improvement will need to be shown over the years.
investing in technologies that increase yield and quality
supporting the diversification of local revenue streams
providing in-kind benefits that can be valued as part of living income elements as defined by the Living Income Community of Practice.
When sub-suppliers are negotiating and directly involved in pricing with producers, this requirement will also apply at their level.
The scope of this indicator is the price paid by the OaS to the producers (not the prices paid along the supply chain).
This indicator is applicable to the relationship between OaS and producers, when they're both involved in the scope of the assessment. If the OaS is the producer in the supply chain, this indicator is not applicable.
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DOCUMENTATION
studies on living income or living wage
internal survey conducted by OaS on costs versus income according to elements of living wage (see guidance)
procedures, strategies or plans to reach living wage equivalent for the activities linked to the assessed ingredient
documentation on living wages in the sector
documentation of in-kind benefits
documentation on potential support for diversification (market opportunities and/or local activities generating new incomes)
INTERVIEWS
with OaS:
knowledge of local living income
knowledge of producers'/collectors' reality
willingness to reach a living income
with producers/collectors:
awareness and knowledge on local living income
interviewed by OaS (or other organisation) for a survey on local costs of living
additional activities and sources of revenue/income
additional incomes and whether they allow for decent living according to them and why
what basic needs are not fully satisfied
Scoring guidance
0 - No awareness or information on living income in the local context
1 - Some information available on cost of basic needs in the local context, but no strategy in place to contribute to living income
2 - A commitment is in place and measures being taken to gradually reach a living wage equivalent (proportionate to the activity linked to the assessed ingredient)
3 - Measures are in place to contribute to a living income for the time spent by producers/collectors for that activity (proportional rate to a local living wage) and other kind of support are also provided (e.g. in-kind benefits, support for diversification of local revenue, etc.)
Score 2 to be reached by third year
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Importance
Critical stepwise
ApplicabilityCultivation & wild collectionOaSSub-suppliersField operators |