By Frankie Hewitson

We at ARI are thrilled that the living wage and Living income movement is gaining serious momentum, with critical policy changes in the EU and beyond that mandate transparency and fairness in wages.

A lot has happened over the last few months, so here’s what you need to know about these important developments and why they matter for workers, businesses, and society at large.

1. EU CSRD-ESRS: Adequate Wages are Now Mandatory for Reporting

The Corporate Sustainability Reporting Directive (CSRD) and its European Sustainability Reporting Standards(ESRS) now require companies to report on the payment of adequate wages. This is groundbreaking because businesses must be transparent about whether they’re paying wages that meet workers' basic needs. For the living wage movement, this marks a significant step towards accountability and ensuring wages that provide dignity to workers across industries.

2. The EU CSDDD and German Supply Chain Act

The Corporate Sustainability Due Diligence Directive (CSDDD) and Germany's Supply Chain Act go a step further: they explicitly prohibit withholding adequate living wages throughout the supply chain. This means companies must actively monitor and ensure fair wage practices not just within their own operations, but also across global suppliers. For the first time, living wages and living incomes are becoming a non-negotiable part of responsible business conduct.

3. Global Momentum: ILO Advances Living Wage Discussions

The International Labour Organization (ILO) recently convened a Meeting of Experts on Wage Policies, advancing global discussions on living wages and incomes. The ILO’s leadership in fostering dialogue and setting wage policy standards brings international alignment and reinforces the urgency of living wages as a global human rights issue.

Why Does This Matter?

Living wages are fundamental to building an equitable and sustainable economy. They:

• Lift workers and families out of poverty, improving quality of life.

• Enable businesses to foster ethical supply chains, reducing exploitation.

• Create stronger, more resilient communities and economies.

With these policies in place, the living wage movement is no longer a niche ideal—it’s becoming a legal, social, and moral imperative for businesses worldwide.

This momentum brings us closer to a world where every worker earns enough to live with dignity. The task ahead is ensuring implementation and action, but the foundations for change are stronger than ever.

Referenced blogs

Frankie Hewitson is a consultant and working with ARI as Development and Communications Lead.

For general inquiries about the Anker Research Institute’s work, contact: inquiries@ankerinstitute.org