Strengthening Purchasing Practices Through Assessments and Legal Guidance
Retailers across Europe are taking a closer look at how their own buying decisions affect suppliers, producers, and workers in their global banana supply chains. The German Retailers Working Group and other European retailers, coordinated by IDH, are collaborating with the Ethical Trading Initiative (ETI) to assess the retailers’ purchasing practices and inform concrete improvements. In parallel, the German working group handed in another test case to the German antitrust authority to explore legal pathways for an aligned approach of stepping up responsible pricing strategies.
Achieving living wages in the banana sector requires strengthening mechanisms at multiple levels. A key lever are the retailers’ own purchasing decisions, including e.g. prices, payment and contract terms, which shape daily realities for suppliers and workers. Recognising this shared responsibility, the German Retailers Working Group and other European retailers, coordinated by IDH, are partnering with ETI and Banana Link on a joint assessment of the retailers’ purchasing practices. Participating retailers of this initiative are Albert Heijn, Aldi South, Aldi North, Asda, Coop, Delhaize, Jumbo, Kaufland, Morrisons, REWE, Sainsbury’s, and Tesco.
A comprehensive, sector-wide assessment
The assessment gathers anonymised insights from the retailers’ key supply chain actors, including importers, exporters, producers and workers. ETI ensures full confidentiality of input to create a trustful environment.
The assessment is based on ETI’s Common Framework for Responsible Purchasing Practices in Food and examines areas such as forecasting, payment terms and pricing strategies. It aims to highlight where commercial decisions may create pressure, and where adjustments can support more stable and equitable supply relationships and working conditions. Interviews with worker representatives and workers aim to connect purchasing dynamics to human rights impacts on the ground.
From insights to action
Each retailer will receive an individual report with anonymized and aggregated feedback from their supply chain partners indicating strengths, gaps and opportunities to further improve purchasing practices. The individual, but anonymized results of each retailer will be included in a summary report to allow benchmarking among retailers and identify shared good practices and challenges across the sector. In the case of the German working group these insights will guide action plans that retailers will develop in 2026, with support of ETI and in consultation with supply chain partners.
Responsible Pricing in the light of antitrust law: A parallel step forward
In parallel to the assessments, the German working group is currently seeking clarification from the German antitrust authority on the potential use of living wage reference prices as a joint approach for minimum pricing at farm level. This process plays an important role in increasing efficiency and enabling pricing models that support living wages in the long-term.
By assessing current purchasing practices and exploring possible approaches for the future, retailers gain clearer direction on how to ensure that commercial decisions support decent work and living wages. These developments support progress towards stronger and more equitable supply chain partnerships.