Modern slavery is relentless, but funding is thinning

Why is modern slavery – encompassing forced labour, debt bondage, and human trafficking – deeply embedded in global supply chains? It’s simple. Modern slavery is incredibly profitable. Let’s zoom in on just forced labour. Illegal profits from forced labour generate USD236 billion, annually. That’s more than the combined profits of JPMorganChase, Berkshire Hathaway, Amazon, and Bank of America in 2025. Framed another way, a population larger than that of Australia’s (27.6 million) is coerced to work and is more profitable than four of Forbes’s top ten publicly listed companies. We live in 2025, not 1820, and this is still happening. Slavery has taken a different form, but one thing hasn’t changed, it remains lucrative.

As a global convener of leaders fighting against modern slavery, the Mekong Club constantly collaborates and exchanges with brands, nonprofits, and research institutions. One concern unites us – the increasing funding gap due to a government deprioritisation.

How did we get here?

Funding has always been tight in sustainability, especially social sustainability topics like modern slavery. Nevertheless, the past two decades saw significant social due diligence wins. Governments signalled to the private sector a changing tide of more regulation. Europe in particular promised a new chapter in sustainable supply chains via landmarks like the EU Corporate Sustainability Due Diligence Directive (CSDDD). Investors were ready to act, based on CSRD & SASB reporting. Sustainability teams were dialling their most trusted consultants to prepare for the EU Deforestation Regulation (EUDR). And then, the pendulum swung the opposite direction.

EU and US political priorities shifted to extreme deregulation and politicisation of nonpartisan initiatives. The end of 2023 saw the centre-right revolt against its own poster child, the Green Deal, to secure the rightward shift before the 2024 parliamentary elections. Similarly, January 2025’s US election triggered a blitzkrieg of devastating deregulation. US program budgets linked to the environment, diversity and inclusion (DEI), ESG, and foreign aid have all been bled dry. Even EU nonprofits are being threatened by politically led funding freezes. These turbulent times mean we cannot count on regulation or federal funding to address social and environmental challenges. Innovative financing models are essential to protect, at minimum, the progress we have made.  

The Mekong Club identified several creative and collaborative financing models. Our hope is to share lessons that build financial resilience against political volatility with our members, partners and the wider community to protect the social progress we have all worked hard for. Below, we summarise our findings which are based on three established case studies.

1. Financing Compliance: IFC’s Global Trade Supplier Finance (GTSF)

A flagship example is the Global Trade Supplier Finance (GTSF) program from the International Finance Corporation (IFC). The IFC is a long-term investor largely funded by the World Bank Group. The program incentivises better labour standards by offering preferential invoice discounting to suppliers who meet environmental and social criteria.

How it works: If a supplier meets performance standards, including labour rights, they receive faster and cheaper access to working capital. Since its inception in 2012, GTSF has financed over $3 billion in receivables across 1,000+ suppliers globally. Its Board of Governors and Board of Directors are composed of representatives from its 186 member countries.

Why it’s impactful: Suppliers in low-margin, high-risk industries often cut costs by exploiting workers. GTSF flips the model by rewarding ethical behaviour with financial benefits.

2. Seed Funding Innovation: Working Capital Fund

The Working Capital Fund, supported by Stardust Equity and the nonprofit Humanity United, takes a venture capital approach by investing in early-stage tech solutions that expose and reduce labour exploitation.

How it works: By injecting capital into scalable transparency tools, the fund helps global buyers identify modern slavery risks before they escalate.

Portfolio examples:

• Ulula – a mobile platform for anonymous worker feedback. In 2024, EcoVadis, the French Unicorn sustainability rating platform, acquired Ulula. The partnership aims to mainstream workervoice technology in the social compliance space.
• Provenance – a blockchain-powered platform enabling product traceability for consumer goods brands and retailers. It helps derisk, validate, and leverage sustainability claims within the customer journey. Provenance’s 2022 funding round raised $5 million.

Why it’s impactful: Compliance technology is often out of reach for smaller suppliers. Working Capital Fund bridges that gap to drive innovation in the anti-slavery space. According to a report by Business for Social Responsibility, the market is expected to hit a US$660 million valuation and generate US$6 billion in revenue for financial service providers.

3. Worker-Driven Premiums: The Fair Food Program

In Florida’s tomato industry, the Fair Food Program introduces a different innovation: buyers pay a premium per pound directly to workers, in exchange for binding commitments to uphold labour rights.

How it works: This worker-driven social responsibility (WSR) model not only raises wages but also gives workers the power to report violations, triggering enforcement by the buyer. Brands like Walmart, McDonald’s, and Whole Foods participate in this model. Governance is overseen by the Fair Foods Standards Council, not buyers.

Since its 2011 launch, the program expanded to 13 US states and 11 crops. Pilots are also set to launch in Chile and South Africa, and possibly Mexico, in 2025.  

Why it’s impactful: Traditional certifications often fail to detect exploitation. WSR contracts bind brands to consequences, making ethical sourcing enforceable. Workers are empowered to anonymously communicate labour issues that are then legally enforced. A 2022 study demonstrates that worker-driven, rights enforcement models are more effective at safeguarding workers’ rights than corporate-backed or multi-stakeholder initiatives. Moreover, suppliers are given the resources they oftentimes lack to fulfil their labour commitments.

Building financing resilience against political volatility

These financing models build resilience against political funding shifts by providing stability:

• Partnerships reduce reliance on federal aid by blending capital sources. This reduces risk among the partners and maximises impact (e.g., Working Capital Fund and Fair Food Program).
• Market driven, scalable startups supported by mission-driven funders (e.g., Working Capital Fund).
• Structure funds with multi-year commitments and independent boards to protect against political changes (e.g., GTSF, Working Capital Group, and Fair Food Program).
  
• Supply chain supports shift supply chains toward ethical production, suppliers using targeted financial support from private financiers (e.g., GTSF and Fair Food Program). 
• Private-sector governance shields initiatives from policy reversals and reduces reliance on any single government budget (e.g., GTSF and Working Capital Fund).
• Outcome-based funding links results to capital, not to policy agendas (e.g., GTSF).
  

Amid today’s changing political winds, these financing features are critical to protect progress made against modern slavery and other social and environmental challenges.

Final Thought

Modern slavery is a pervasive risk in global trade. Yet through innovative financing models, sustainability professionals have levers to reduce harm, drive transparency, and shift incentives. Funding has always been the elephant in the room. Previously, NGOs and trade unions pointed at brands to fund projects. The brands pointed to their suppliers, and suppliers pushed the burden onto workers. It’s time to stop pointing fingers and to work together. While there is much to lose if we do not, could there be even more to gain?

Have you come across any surprising, creative financing models? Add a comment or link below to inspire others in dreaming up our next big labour rights win.

Author: Tess Zinnes-de Risi, Senior Advisor, Advisory Services at The Mekong Club