Forced labour remains a persistent and widespread issue, affecting businesses, individuals, and supply chains across industries. While it often occurs in the private economy, the global nature of supply chains means no sector is immune.

• G20 countries import over $468 billion worth of products at risk of being produced with forced labour.
• Forced labour generates $236 billion in illicit profits each year.
• An estimated 28 million people are trapped in forced labour today.

In total, 50 million people worldwide are estimated to be enslaved, with 28 million in forced labour and 22 million in forced marriage. This number has risen in recent years due to conflicts, climate change, and the impact of COVID-19.

According to the International Labour Organization (ILO), forced labour is defined as work performed under threat of penalty and not undertaken voluntarily. While the term “modern slavery” is often used—particularly in regions like Australia and the UK—understanding and addressing forced labour is essential for responsible supply chain management.

Forced labour risks can compromise supply chains and operations, requiring targeted risk assessments and remediation efforts. While trafficking, forced marriage, and other forms of exploitation are critical issues, businesses must focus on the specific labour abuses that may exist within their supplier networks.

Renewed spotlight on forced labour

Governments and media are increasingly scrutinising forced labour risks, prompting businesses to take action:

• December 2024: Major UK retailers responded to a BBC investigation into forced labour in tomato purée supply chains.
• March 2024: A U.S. court examined whether five of the largest American tech companies were liable for forced and child labour in cobalt mining—critical for laptops and electric vehicles.
• December 13, 2024: The EU’s forced labour ban officially took effect, prohibiting products made with forced labour from entering the EU market.
• July 2024: The EU Corporate Sustainability Due Diligence Directive (CSDDD) came into force, imposing stricter supply chain accountability.
• Global Regulations: Australia, the UK, France, Germany, Norway, and Switzerland require large companies to report on their actions to mitigate forced labour risks.

What is driving the renewed attention?

The growing attention on forced labour is being driven by a combination of regulatory pressure, reputational risks, operational disruptions, and economic consequences. Businesses can no longer afford to overlook the issue, as the cost of inaction is rising across multiple fronts.

Expanding global regulations

Governments worldwide are introducing stricter laws requiring businesses to identify, disclose, and address forced labour risks. Companies operating in North America, Europe, the UK, and Australia—markets that represent over half of global GDP— now face legal obligations to ensure ethical supply chains. Key regulations include:

• The US-Mexico-Canada Agreement (USMCA) (2020), which enforces restrictions on products made with forced labour.
• The EU’s 2024 regulation, which bans such products from the European market.

Rising reputational risks

Consumers and stakeholders expect businesses to act ethically. According to a United Nations Global Compact / Accenture survey, 76% of CEOs believe ethical business practices build trust. This aligns with consumer behavior:

• 81% of consumers aim to prioritise sustainability when making purchases.
• 67% of U.S. consumers would switch brands or pay more to avoid products linked to modern slavery.

Yet, despite these expectations, industries from solar panels to medical supplies, clothing to fishing continue to face forced labour controversies—highlighting the need for stronger action.

Operational and supply chain disruptions

Forced labour concerns have compounded existing global supply chain shocks caused by:

• COVID-19 disruptions
• Brexit trade changes
• The Suez Canal blockage
• Inflation and geopolitical tensions, such as the Russia-Ukraine war

With supply chains already under strain, forced labour issues introduce further bottlenecks, legal risks, and financial uncertainty for businesses.

Economic consequences and industry-wide damage

Beyond legal and reputational risks, it can be argued that there’s a wider business case for supply chains that are free from forced labour.Research has shown that forced labour undermines entire economies by:

• Reducing productivity and innovation
• Straining public finances
• Weakening governance
• Creating environmental harm

How to assess and address forced labour risks 

With forced labour generating $236 billion in illicit profits annually, businesses that fail to address it face unfair competition, reputational damage, and legal risks. Growing legal, consumer, and operational pressures make proactive risk management essential.

Best Practices for Mitigating Forced Labour Risks

Assess Exposure
Identify risks within operations and supply chains by evaluating:

• High-risk regions with weak labour protections
• Industry-specific vulnerabilities (e.g., mining, agriculture, apparel)
• Supplier relationships (tier 1 vs. deeper-tier suppliers)

Develop a Risk Profile
Map supply chain partners, review sourcing policies, and analyse past incidents and regulatory trends.

Adopt a Risk-Based Approach
Focus resources on the highest risks by:

• Prioritising high-risk suppliers and regions
• Conducting enhanced due diligence
• Using third-party audits and worker voice mechanisms

Implement a Scalable Risk Model
Leverage data-driven risk assessments, supplier risk scoring, and continuous monitoring.

Ensure Effective Remediation
Beyond identifying risks, businesses must:

• Train suppliers and build capacity
• Strengthen worker protections and grievance mechanisms
• Align with international standards like the UN Guiding Principles

This structured approach helps companies mitigate forced labour risks, ensure compliance, and protect supply chain integrity.

Modern slavery courses and online training

Effective training is essential in supply chain risk compliance, ensuring that employees understand regulations, identify potential risks, and implement best practices to act ethically, maintain compliance and protect the business.

VinciWorks’ modern slavery training helps your company or firm avoid being connected to activity that violates regulations, either directly or by proxy through supplier relationships. With a range of options, our modern slavery training suite is designed to meet the needs of an entire team, from general staff to procurement teams.