Inequality and persistent poverty
Smallholder farmers and producers, who are vital to biodiversity-rich industries, often face systemic barriers such as poverty, limited access to resources, and economic and political inequities that prevent them from earning a fair, sustainable income.
These challenges undermine efforts to promote ethical trade and sustainability. Without tackling these root causes, our global sustainability standards and initiatives fall short. ISEAL’s focus on this area is essential for fostering long-term resilience in supply chains, ensuring that producers can not only survive but thrive, and that sustainability standards deliver meaningful, lasting improvements for the most vulnerable communities.
ISEAL’s work on inequality and persistent poverty aims to address these systemic challenges by exploring innovative strategies and models. The programme of work leverages the ISEAL Innovations Fund, emerging research, and practical resources to identify and support effective approaches that enhance resilience and equity within value chains. This includes showcasing best practices, supporting emerging innovations, and promoting equitable benefit-sharing. By taking a holistic, multi-stakeholder approach, ISEAL aims to unite various actors in developing sector-specific solutions that tackle the root causes of inequities and improve the ability of smallholders to secure fair and sustainable livelihoods.
The Living Income Community of Practice, an initiative of GIZ, Sustainable Food Lab and ISEAL, that convenes thousands of interested stakeholders, is an example of our multi-stakeholder approach to align various actors on the concept of living income, its measurement and relevant strategies to close the income gap across sectors and commodities.
Sustainability systems are actively addressing inequality and persistent poverty by implementing diverse, impactful strategies tailored to specific sectors and regions. ISEAL Community members employ various tools and mechanisms to tackle the complex challenges of achieving equitable and sustainable livelihoods across industries. These strategies are profoundly influenced by the sector, geography, and focus of each scheme, leading to varied approaches in closing income gaps. Key categories of these strategies include:
- Defining Responsible Practices: Establishing clear guidelines and standards that promote equitable treatment and fair compensation for all stakeholders involved.
- Assessing Implementation: Regularly evaluating adherence to established practices to ensure continuous improvement and accountability.
- Measuring and Communicating Results: Tracking progress and transparently sharing outcomes to foster trust and collaborative action among stakeholders.
By leveraging these interrelated tools, sustainability systems aim to transform market dynamics, empower marginalized communities, and create pathways out of poverty. This comprehensive approach not only addresses immediate economic disparities but also fosters long-term resilience and equity within global supply chains.
ISEAL Community Members are actively pioneering innovative solutions to combat inequality and persistent poverty through the strategic use of the ISEAL Innovations Fund. Established in 2016 with support from the Swiss State Secretariat for Economic Affairs (SECO) and UK International Development, the fund serves as a catalyst for sustainability systems to develop and scale impactful initiatives. By providing financial resources, technical assistance, and fostering cross-sector collaboration, the fund empowers members to address complex socio-economic challenges in diverse contexts.
One notable initiative supported by the Innovations Fund is the Demonstrating and Improving Poverty Impacts (DIPI) project. This collaborative effort involves seven ISEAL members from the forestry and agriculture sectors working together to enhance their monitoring and evaluation systems. By refining these systems, the project aims to provide more accurate assessments of poverty alleviation efforts, enabling continuous learning and improvement. This collective approach not only strengthens the capacity of individual organizations but also sets a precedent for collaborative impact within the certification movement.
The Innovations Fund has also facilitated projects that explore ambitious solutions to systemic issues. For instance, recent funding rounds have supported eight new initiatives designed to overcome barriers to innovation and build upon previous learnings. These projects span various geographical locations and sectors, addressing challenges such as deforestation, biodiversity loss, and socio-economic disparities. By creating an enabling environment for experimentation and piloting new approaches, the fund accelerates the development of scalable solutions that drive meaningful change in reducing inequality and poverty.
Sustainability systems have emerged as pivotal tools in addressing inequality and poverty, particularly within global supply chains. By establishing rigorous standards and fostering collaborative partnerships, these systems aim to uplift marginalized communities and promote equitable economic growth. For instance, the concept of a living income is integral to several United Nations Sustainable Development Goals (SDGs), including No Poverty (SDG 1), Zero Hunger (SDG 2), Decent Work and Economic Growth (SDG 8), and Reduced Inequalities (SDG 10). By advocating for fair compensation and improved working conditions, sustainability systems contribute directly to these global objectives.
Empirical evidence underscores the positive impacts of these systems. Collaborations between governments and sustainability standards have yielded benefits for producers, consumers, and the environment. Such partnerships enhance transparency, ensure fair practices, and empower local communities, thereby fostering sustainable development. Moreover, initiatives like the Living Income Community of Practice motivate cross-sector actors to bridge income gaps, ensuring that smallholders can achieve a decent standard of living—a fundamental human right.
ISEAL’s programmatic work is possible thanks to funding and support from our partners and donors. Our work on inequality and persistent poverty has been funded with support from FCDO, SECO, GIZ, Ford Foundation and Laudes Foundation.