Members of the Platform Living Wage Financials have prepared a joint letter addressed to the luxury goods sector: PLWF statement calling for improved transparency in the luxury fashion sector
Why the PLWF has decided to launch a joint letter focusing at luxury goods companies
The purpose of the letter is to call for increased transparency around the identification and management of material ESG issues in the sector, including efforts on living wage, and call for an improved dialogue on these issues.
The PLWF acknowledges that the luxury goods business model differs from ‘fast-fashion’. However, despite their differences, the non-payment of living wage remains a risk in the luxury goods sector, particularly in its supply chain. We also consider living wage to be a salient human right that needs to be protected and guaranteed by all players.
The letter also calls for more collaboration and improved dialogue on supply chain issues between brands, investors and stakeholders. To start the conversation, the PLWF has sent the letter to selected luxury brands that participate in a long-term shareholder dialogue on living wage with PLWF members. We asked the companies to react to the letter, hoping to push the conversation in the right direction as we move into the new decade.
Invitation to co-sign
Finally, we find it important to publish the letter online to publicly outline our stance on living wage and the management of material ESG issues in the luxury goods sector and invite other investors to co-sign the letter via the PRI Collaboration Platform. We encourage the wider stakeholder community to back our stance and continue to engage with luxury brands to encourage increased transparency on both their social and environmental practices.