Principle 5: Sustainable costing

Principle 5 of the CFRPP MI focuses on ensuring that purchasing decisions reflect the costs required to uphold living wages and responsible business conduct. This aligns with the CSDDD, particularly Articles 10 and 11, which require companies to adjust their operations—including purchasing practices—to prevent adverse impacts on human rights. 

Recital 47 reinforces the importance of purchasing policies that contribute to the payment of living wages and fair pricing, ensuring that suppliers are not exploited. Annex 13 aligns with CFRPP MI Sub-principle 5.5 by focusing on the respect for workers' rights, including the right to freedom of association and collective bargaining. Annex 6 highlights the need for just and favourable working conditions, including fair wages that provide a decent living. 

Sub-principles 5.1, 5.3, and 5.4 outline strategies for pricing that reflect responsible business conduct, a clear understanding of the living wage gap, and the development of costing strategies to support living wages. Recital 54 further reinforces this by urging companies to invest in measures—financial or non-financial—to minimise adverse impacts and ensure that their purchasing policies actively contribute to living wages without causing harm to human rights or the environment.