A living wage is a fundamental human right – nn-group.com

Report on NN Group’s Human Rights Engagement and Contribution to Sustainable Development Goals

Introduction: Corporate Purpose and Commitment to Human Rights

NN Group operates with the purpose of helping people care for what matters most. Central to this mission is a fundamental commitment to respecting human rights. As a significant financial services company, NN Group acknowledges its role and responsibility in addressing key societal challenges, thereby contributing to the United Nations Sustainable Development Goals (SDGs). The company’s strategy recognizes that issues such as inequality and labour rights violations are detrimental to individual well-being and inhibit the creation of sustainable long-term value. This report outlines NN Group’s initiatives, particularly its focus on living wages as a critical component of its commitment to human rights and its alignment with several SDGs.

Active Ownership and ESG Integration

As an active investor, NN Group engages with its investee companies to foster improvements in Environmental, Social, and Governance (ESG) performance. Human rights constitute a principal area of this engagement strategy. By encouraging companies to align their operations with international human rights standards, NN Group aims to generate a positive societal impact.

Strategic Focus on Living Wage and SDG 8 (Decent Work and Economic Growth)

A primary focus of NN Group’s human rights advocacy is the promotion of a living wage. A living wage is defined as remuneration sufficient for a worker and their family to afford a decent standard of living, including basic necessities. This directly supports the objectives of SDG 8.

• The Challenge: According to the UN Global Compact, an estimated one-third of the global workforce earns less than a living wage, an issue particularly prevalent in the food, agriculture, and garment industries.
• Catalytic Impact: Addressing the living wage issue can trigger broader improvements and advance other SDGs.

1. SDG 1 (No Poverty): A living wage is a direct mechanism for lifting working families out of poverty.
2. SDG 4 (Quality Education): When parents earn a living wage, the likelihood of child labour decreases, enabling children to attend school and receive a quality education.
3. SDG 10 (Reduced Inequalities): Promoting fair compensation helps to reduce income inequality within and among countries.

Partnerships for the Goals (SDG 17)

The Platform Living Wage Financials (PLWF)

Recognizing that systemic issues like living wages require collective action, NN Group participates in the Platform Living Wage Financials (PLWF). This coalition of 23 financial institutions, managing over EUR 7 trillion in assets, leverages its collective influence to engage with companies on implementing living wages in their global supply chains. The PLWF focuses on over 50 companies in the garment, footwear, and food sectors, employing a sector-wide approach to tackle this complex challenge.

NN Group’s Contribution to the PLWF

• Became a direct member of the PLWF in 2023.
• Joined the Food Agri and Food Retail Working Group in early 2024, expanding engagement with food retail companies.
• Utilises the PLWF assessment methodology, which is aligned with the UN Global Compact reporting framework, to evaluate and score company performance.
• Hosted the annual PLWF conference in early 2025, facilitating the sharing of best practices among companies.

Integrating Social and Climate Objectives (SDG 13 & SDG 8)

Advocating for a Just Transition

In 2024, NN Group reviewed its climate-related ownership activities to increase its focus on the social dimension of the climate transition. This initiative aligns with SDG 13 (Climate Action) by ensuring that climate strategies also support SDG 8 (Decent Work and Economic Growth). The company actively encourages investee companies to integrate “just transition” principles into their climate plans. This involves addressing the social consequences of transitioning to a low-carbon economy, ensuring that workers and communities are not left behind. This work is synergistic with the company’s efforts within the PLWF and other collaborative climate engagements, embedding social responsibility into its core investment activities.

Analysis of SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 1: No Poverty
   • The article’s central theme is the promotion of a “living wage,” defined as pay that allows workers to afford basic needs like food, shelter, and healthcare. This directly addresses the goal of eradicating poverty, especially for the “over a billion working people worldwide” who earn less than they need for a decent standard of living.
2. SDG 4: Quality Education
   • The article explicitly links living wages to educational outcomes, stating that when parents earn enough, “children are more likely to be able to attend school and receive a proper education.” This connects the economic issue of wages to the social goal of ensuring quality education.
3. SDG 8: Decent Work and Economic Growth
   • This goal is at the core of the article. The discussion revolves around “labour rights violations,” the importance of a “living wage,” and how fair pay can reduce the likelihood of “child labour.” The entire initiative by NN Group and the PLWF aims to promote decent work within the global supply chains of the companies they invest in.
4. SDG 10: Reduced Inequalities
   • The article begins by stating a commitment to addressing societal challenges like “inequality” and “discrimination.” By advocating for a living wage, especially in sectors where low pay is prevalent, the initiative aims to reduce income inequality between low-wage workers and the rest of society.
5. SDG 13: Climate Action
   • The article mentions a review of “climate-related active ownership activities” with a focus on the “social angle of the transition.” This concept, often called a “just transition,” directly links climate action with social and economic well-being, ensuring that the shift to a greener economy does not negatively impact workers and communities.
6. SDG 17: Partnerships for the Goals
   • The article heavily emphasizes collaboration. NN Group’s work is conducted through the “Platform Living Wage Financials (PLWF),” described as “a group of 23 financial institutions.” This coalition-based approach, where investors “work together” to engage with companies, is a clear example of a multi-stakeholder partnership to achieve sustainable development.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 1.2: By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions.
   • The focus on a “living wage” is a direct strategy to lift working people out of poverty, as the article notes that one-third of all workers earn less than they need for a decent standard of living.
2. Target 4.1: By 2030, ensure that all girls and boys complete free, equitable and quality primary and secondary education.
   • The article implies that achieving a living wage is a prerequisite for this target, as it enables parents to support their families, making it more likely that “children are more likely to be able to attend school.”
3. Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value.
   • The advocacy for a “living wage” directly supports the concept of decent work and fair remuneration for all workers in global supply chains.
4. Target 8.7: Take immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labour…
   • The article explicitly states that providing a living wage reduces the “likelihood of child labour,” directly contributing to this target.
5. Target 10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality.
   • The engagement with companies to implement living wage policies is a private-sector effort to influence corporate wage policies to achieve greater income equality.
6. Target 13.2: Integrate climate change measures into national policies, strategies and planning.
   • At a corporate level, NN Group is integrating social aspects (“just transition”) into their “climate-related active ownership activities” and encouraging investee companies to integrate these social aspects into their “transition plans,” mirroring the spirit of this target.
7. Target 17.17: Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships.
   • The Platform Living Wage Financials (PLWF) is a perfect example of this target in action, being a “coalition” of financial institutions using their collective “influence and leverage” to address a systemic issue.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Proportion of the working population earning less than a living wage:
   • The article cites a UN Global Compact statistic that “one third of all workers – are estimated to earn less than they need to afford a decent standard of living.” This serves as a baseline indicator for measuring progress on poverty (Target 1.2) and decent work (Target 8.5).
2. Corporate performance assessment on living wages:
   • The PLWF uses an “assessment methodology aligned with the UN Global Compact reporting framework” that “scores companies in five categories (embryonic, developing, maturing, advanced and leading).” This scoring system is a direct indicator of corporate progress and commitment to providing living wages.
3. Number of entities participating in partnerships:
   • The article provides concrete numbers to measure the scale of the partnership (Target 17.17), such as the “23 financial institutions” in the PLWF and the engagement with “more than 50 companies.”
4. Financial resources mobilized:
   • The scale of financial leverage is indicated by the “over EUR 7 trillion of assets under management and advice” managed by the PLWF members. This is an indicator of the financial weight behind the partnership’s engagement activities.
5. Publication of sustainability and engagement reports:
   • The mention of the PLWF’s “annual report,” NN Group’s “Active Ownership Report,” and the “Climate Action Plan” serves as an indicator of transparency and accountability, allowing stakeholders to track progress and commitments.

4. Summary Table of SDGs, Targets, and Indicators

Source: nn-group.com