Lidl GB has announced the launch of a pioneering analysis tool aimed at addressing wage disparities among banana workers. The innovative system is set to be implemented across the company's supply chain in September.

Described as a "first-of-its-kind" initiative, the tool was developed in collaboration with the sustainable trade advocate organization IDH. The app calculates the amount Lidl needs to pay to close the living wage gap for individual workers and plantations.

The system promises to provide regular analysis and annual adjustments to allow suppliers to develop an action plan to close the wage disparity. The tool will collect and audit supply chain data and identify local living wages and actual wages paid to workers. 

Suppliers will be trained on the tool and once the supply chain data is validated, they can choose their preferred method of payment to workers: salary increase, bonuses, or vouchers for local services. 

The initiative comes a year after Lidl GB committed to closing the wage gap across its banana supply chain, something the retailer is on track to meet ahead of the national 2027 target.

Lidl is sharing findings with producers and suppliers and will provide other supermarkets with access to the tool to encourage other chains to adopt similar practices.

According to the statement, the tool has already demonstrated success in trials, "as evidenced by the Banana Living Wage Project in Germany, where Lidl stores now exclusively offer bananas that ensure the discounter’s premium has been paid so its proportion of the living wage gap is closed."