How much does an EcoVadis assessment cost?

EcoVadis platform subscriptions typically range from $500 to $1,500 annually for small businesses, $1,500 to $3,500 for mid-sized companies, and $3,500 to $9,000+ per year for large enterprises depending on company size and feature tiers.

How long does it take to prepare an EcoVadis submission?

Preparation typically takes 6 to 10 weeks. Unassisted internal completion usually requires 40 to 80 hours of team time to collect documentation and track metrics.

How can a company improve its EcoVadis score?

Companies can improve their score by formalizing undocumented policies, tracking measurable KPIs (such as Scope 1–3 carbon emissions), conducting supplier risk assessments, and demonstrating year-over-year continuous improvement.

What Is a Living Wage? A Guide for Businesses

November 27, 2024

ESG, Sustainability

Introduction: Living Wage

If your business is paying employees the minimum wage, you may be wondering if that’s enough to meet the living wage requirements in your region. Spoiler alert: it often isn’t. A living wage is coming up more frequently in conversations about sustainability—and for good reason.

Let’s break it down: What is a living wage, why does it matter, and how can your business address it?

What Is a Living Wage?

A living wage is the income a worker needs to meet their essential needs, such as housing, food, healthcare, and education. It goes beyond the legally mandated minimum wage, which often falls short of covering basic living costs.

For example:

The U.S. federal minimum wage is $7.25/hour, but in San Francisco, the living wage is estimated at $25/hour.
In Toronto, the minimum wage might be $15/hour, while a living wage for 2024 could be $22.28/hour, reflecting the higher cost of living.

Unlike minimum wages, living wages vary by city, region, and even neighborhood, considering factors such as housing costs, transportation, and childcare. Tools like the MIT Living Wage Calculator are invaluable for determining living wages for specific locations.

How Is a Living Wage Calculated?

Living wages consider the following key components:

Housing – Rent, utilities, and other costs of securing safe shelter.
Food – The cost of a balanced diet.
Healthcare – Out-of-pocket medical expenses or insurance costs.
Transportation – Public transit or the cost of owning a vehicle.
Childcare and Education – For employees with children.
Savings and Discretionary Spending – Emergency funds or leisure expenses.

For example, in Illinois:

Living wage: $24.16/hour for a single adult with no children. This figure increases significantly for employees with dependants.

Minimum wage: $14/hour

Why Living Wages Matter

For Employees

Better Health and Wellbeing: Workers earning a living wage can afford healthier food, stable housing, and adequate healthcare.
Financial Security: Reduces stress and lifts workers out of poverty.

For Employers

Higher Productivity: Employees who aren’t stressed about basic needs perform better.
Increased Loyalty: A living wage can reduce turnover and increase employee satisfaction.
Certification and Compliance: Many sustainability certifications, such as EcoVadis, now include living wage considerations.

For Communities

Economic Growth: More disposable income means more spending in local economies.
Social Equity: A living wage helps reduce poverty and inequality.

How to Implement a Living Wage in Your Business

Calculate Your Living Wage: Use tools like the MIT Living Wage Calculator or consult local living wage organizations.
Analyze Your Workforce: Create a spreadsheet of employee wages by location. Compare their wages to the living wage in each area.
Set Goals: If only 50% of your workforce meets the living wage, set a target—e.g., “100% of employees will earn a living wage by 2026.”
Certify Your Efforts: Organizations such as Living Wage Canada, Fair Trade USA, and B Corp offer certifications for businesses paying living wages.

Challenges to Paying a Living Wage

Cost for Small Businesses: Balancing fair wages with profitability can be tough for startups and small businesses.
Global Variability: Managing living wages across global supply chains adds complexity.
Inflation Adjustments: Regular wage reviews are necessary to stay aligned with cost-of-living changes.

Living Wages and the UN SDGs

Paying a living wage aligns with several UN Sustainable Development Goals (SDGs), including:

No Poverty (SDG 1)
Decent Work and Economic Growth (SDG 8)
Reduced Inequalities (SDG 10)
Gender Equality (SDG 5)

By adopting living wages, businesses can contribute to global sustainability efforts while improving their ESG performance.

Businesses Leading the Way

Many global companies have embraced living wages, including:

Unilever
Schneider Electric
Accenture
L’Oréal

These leaders demonstrate that living wages are feasible across industries, from manufacturing to services.

Ready to Take the First Step?

Adopting a living wage policy can seem daunting, but it’s an investment in your people, your community, and your business’s future. At ThisRock Inc., we help businesses analyze wages, set achievable goals, and align with sustainability certifications like EcoVadis.

Ready to elevate your sustainability strategy? Book a call with Lindsay today and discover how ThisRock Inc. can help you exceed your sustainability goals.

Book 15-minute consult