New Global Study explores financial tools that can be catalysts for change

Sustainable finance can play a critical role in preventing modern slavery and human trafficking; however, there have not been sufficient investments in finding long-term solutions to this global crisis. In order to overcome this barrier, the United Nations Development Programme (UNDP) Finance Against Slavery and Trafficking (FAST) Initiative has launched a study to identify the financial investments required to put an end to modern slavery and human trafficking once and for all.

Supported by the Government of the Principality of Liechtenstein, the study forms an integral part of the FAST Initiative’s 2030 Vision – a roadmap for engaging financing partners in eradicating modern slavery and human trafficking by aligning private investments with the Sustainable Development Goals (SDGs).

Utilizing established prevention costing methodologies, the study will provide evidence-based guidance for financial institutions and private-sector actors in assessing the amount and type of financing they need to combat modern slavery and human trafficking. 

With the proper financing in place, businesses can employ risk assessment, supply chain auditing and compliance mechanisms to ensure that no one in their supply chains is being exploited. These mechanisms align with Environmental, Social, and Governance (ESG) principles – particularly their focus on labour rights, due diligence, and remediation frameworks.

The study is examining five financial mechanisms that could play a transformative role in addressing modern slavery and human trafficking. These mechanisms – debt instruments, digital finance, insurance, impact investing, and social finance – utilize innovative approaches to mobilizing capital, enhancing financial inclusion, and addressing the systemic vulnerabilities that contribute to exploitation. 

All of these mechanisms are recommended in the 2019 Financial Sector Commission report ‘A Blueprint for Mobilizing Finance Against Slavery and Trafficking’. Mapping them helps ensure that financial resources are allocated strategically to tackle the (systemic) root causes of modern slavery and human trafficking.

They are: 

• Debt Instruments: Thematic bonds and performance-based loans can channel capital into anti-modern slavery initiatives by linking financing to social indicators.
• Digital Finance: Digital financial tools enable the rapid deployment of financing to at-risk populations. Digital payment platforms enhance financial transparency, reduce transaction costs, and streamline the delivery of resources, making financial support more accessible.
• Insurance and Risk Mutualization: Microinsurance and pooled risk mechanisms offer financial protection to displaced populations, serving as critical safety nets that help survivors regain stability and economic independence.
• Impact Investing: By directing capital toward businesses and social enterprises that prioritize the eradication of modern slavery and human trafficking, impact investing supports ethical fintech solutions, blockchain-based supply chain transparency, and AI-driven risk assessment tools that mitigate the risk of forced labour.
• Social Finance: Mechanisms such as microfinance and community-based lending enhance survivors’ economic resilience by providing access to capital for small businesses and startups. 

Through this research, the FAST Initiative is advancing evidence-based financial strategies that integrate financial integrity, and human rights protections into global efforts to combat modern slavery and human trafficking.

This study will yield a comprehensive set of recommendations for finance partners to take action against modern slavery and human trafficking. Expected outcomes include:

• Investment Mapping: A detailed assessment of investment needs and innovative finance mechanisms required to address modern slavery and human trafficking, ensuring that financial resources are allocated for maximum impact.
• Feasibility Analysis: An evaluation of the potential of financial mechanisms such as debt instruments, digital finance, and microinsurance – assessing their appropriateness in different contexts, scalability and integration into existing financial systems.
• Sustainability-linked Policies and Investment Strategies: Business strategies that leverage sustainability frameworks, such as ESG and Corporate Responsibility models, enable financial institutions to align their practices with anti-modern slavery objectives and enhance corporate accountability.

The 2025 Global Study is a key component of FAST’s mission to mobilize financial institutions and promote a sustainable financial system that upholds integrity, transparency, and human dignity and rights. By identifying scalable financial tools, FAST is working to drive systemic change, ensuring that global financial systems serve as a catalyst for eradicating modern slavery and human trafficking.

To learn more or contribute to this study, please contact: fast@undp.org.