What is the price of sustainability? And who should take up paying the price of fostering sustainable and inclusive global value chains? Our new research, Price in global commodity value chains: Key to achieving living income and living wage, dives into pricing in global commodity value chains such as cotton and textiles, gold, palm oil, cocoa and coffee. The report examines the role of pricing as well as purchasing practices in ensuring living wages and incomes for the producers at the beginning of the value chain. This research was carried out by AidEnvironment and SÜDWIND. Download the full report here (PDF).
Without better prices and without adjusting purchasing practices, it is impossible to tackle the persisting sustainability issues in global commodity sectors. Solidaridad is convinced that companies can take much more responsibility for paying better prices and adjusting purchasing practices – and that these efforts should be mainstreamed, rather than simply relegated to niche ‘sustainable’ companies.
The report recognizes the complexity of pricing across various commodity sectors. It outlines both cross-sector challenges and possible solutions, and provides a deep-dive into each sector with concrete examples of what needs to be done to improve the situation for the producers.
We examine why prices matter, what factors play an important role in influencing prices, and what strategies can be applied in order to influence prices. The report also examines the role of European actors in this matter, including the EU’s Corporate Sustainability Due Diligence Directive (CSDDD). The last chapter provides some key insights and recommendations to inform future action.