Hidden in plain sight: modern slavery in global supply chains

January 2026  |  FEATURE | RISK MANAGEMENT

Financier Worldwide Magazine

January 2026 Issue

Modern slavery – also referred to as contemporary slavery or neo-slavery – exists in many forms, including trafficking for criminal activities such as cannabis cultivation, sexual exploitation, domestic servitude, and forced labour in construction or manufacturing.

Far from being a relic of history, modern slavery is one of the most pervasive crises of our time. Affecting over 50 million individuals globally, according to the Global Slavery Index, it transcends industries and national borders, feeding into systemic vulnerabilities.

Analysis by the International Labour Organization indicates that forced labour alone generates approximately $236bn in illegal profits each year. These illicit gains divert resources from legitimate economies and impose significant costs on public institutions – up to $250,000 per victim in law enforcement, healthcare and victim support services.

According to the Walk Free Foundation, several practices increase a company’s vulnerability to modern slavery. These include reliance on migrant workers recruited through labour agencies or brokers, the use of multi-tiered supply chains that extend beyond direct oversight, and operations in countries with weak regulatory frameworks.

“The majority of companies will be exposed to some risk of forced labour and slavery in their supply chains,” notes the Walk Free Foundation’s ‘Tackling Modern Slavery in Supply Chains report’. “These risks are not always immediately evident and are not necessarily uncovered during a standard factory inspection.”

As companies pursue lower input costs and higher profits in an increasingly disrupted and fast-evolving global economy, the risk of worker exploitation and enslavement rises – particularly in supply chains where oversight is limited or fragmented.

Identification and mitigation

The ability of companies to identify and mitigate the risk of slavery within their supply chains is critical. This requires a robust anti-slavery strategy, a multi-step approach and alignment with stakeholders at every level.

In its analysis ‘Modern Slavery: How to Identify Risks in Your Supply Chain’, Worldfavor outlines several measures companies should adopt to safeguard the integrity of their supply chains and protect workers.

One such measure is the publication of a modern slavery statement. In some jurisdictions, companies above a certain size and operating international supply chains are legally required to publish such a statement. In the UK, for example, companies must issue a public report detailing the steps they are taking to prevent slavery within their operations and supply chains.

A comprehensive risk assessment is also essential. A basic understanding of modern slavery is insufficient to eliminate it from supply chains. Companies must examine how slavery relates to their specific industry and production processes – identifying which services are most susceptible, which regions are high risk and which categories of workers are most vulnerable.

Due diligence must be conducted across the entire supply chain. This includes researching suppliers and partners to ensure they are not compromising ethical standards to meet deadlines or targets. It also involves consulting human rights organisations and non-governmental bodies operating in relevant regions. Site visits and audits of production facilities are vital to verify compliance and working conditions.

Effective communication and coordination are equally important. Suppliers and partners must be made aware of a company’s concerns regarding supply chain integrity. Modern slavery statements should be shared with suppliers, who should be encouraged – or required – to produce their own. Communication should extend beyond direct suppliers to include their subcontractors and partners.

“With supply chains now able to span an increasingly interconnected globe, this brings a heightened risk of exposure to poor working conditions and compliance gaps, making it more likely that unethical practices can go undetected,” states Alcamus in its ‘Preventing Modern Slavery in the Supply Chain’ whitepaper. “As such, businesses need to take action to protect victims and make sure they actively audit, investigate and reduce exploitation, which will go a long way to pushing modern slavery out of legitimate supply chains.”

No longer acceptable

Although legislative progress has been made – through instruments such as the UK’s Modern Slavery Act 2015 and Australia’s Modern Slavery Act 2018 – the grim reality remains that many thousands of people continue to be exploited, and many companies continue to benefit from unethical practices.

“Almost any business in almost every industry must be prepared to fight modern slavery throughout its entire supply chain,” affirms Worldfavor. “We not only have to know it exists and understand that it comes in different forms to how it is portrayed in media, but also that it can exist within the supply chain of almost any company or product. Preventing and rooting it out requires us all to be proactive and vigilant.

“Previous business models of exploitation are no longer acceptable,” concludes Worldfavor. “In a step toward equality and fair living standards, companies must guard their supply chains from modern slavery. And while the short-term effects may limit profits and incur adverse results, the long-term effects provide greater hope for the future.”

Modern slavery thrives in the shadows cast by complexity, distance and indifference. As global supply chains stretch further and grow more intricate, the challenge is not only to trace their paths but to illuminate them – ensuring that every link is forged with dignity, transparency and accountability.

© Financier Worldwide

BY

Fraser Tennant