In the process of implementing the International Responsible Business Conduct Agreement (or in Dutch: IMVB-Covenant), PGGM created an OECD screening method. This screening identifies severe violators of the OECD Guidelines based on incidents in business operations and supply chains. This includes the UNGPs, focusing on human rights. PGGM engages with violating companies when we believe engagement can be of added value and exclusion does not initially apply. When such engagement fails, an escalation procedure will start which can eventually lead to exclusion. Our engagement asks differ based on the nature of the incidents. Often the incidents derive from implementation gaps, despite the company having a sound human rights policy in place. PGGM therefore typically asks companies to (1) improve human rights due diligence process, (2) engage on systemic issues in their supply chains, and (3) strengthen the grievance mechanism and provide access to remedy.
Platform Living Wage Financials
Earning a living wage or living income is a human right. A living wage or living income should fulfill elements of a decent standard of living, including food, water, housing, education, healthcare, transportation, clothing, and other essential needs including provisions for unexpected events. In many countries, such level of compensation exceeds the legally required minimum wage. We therefore ask companies to share responsibilities in promoting living wages and living incomes in their own operations and in their supply chains.
As a member of the Platform Living Wage Financials (PLWF), PGGM conducts collective engagement together with like-minded peers. Over the years the platform has evaluated a set of companies in garment, agriculture, and food sector, which have significant impact on living wage and living income. Although the assessment methodology is different per sector, PLWF’s engagement strives for improvement on policy, stakeholder engagement, impact assessment, action plan, tracking performance and remediation in relation to living wage and income. PGGM includes the assessment results in its voting decisions.