Bridging the data divide

Modern slavery and human trafficking (MS/HT) are pervasive global issues, affecting every country and sector. Research shows that 86 per cent of forced labour cases are perpetrated by private actors, revealing an opportunity for the finance sector to address the root causes of MS/HT and transform the global economy at large.

However, investors face a significant lack in actionable data on the issue, limiting their ability to address these challenges effectively. This report explores this challenge and identifies key stakeholders within the data ecosystem who can help bridge the data gap.

The brief advances several recommendations:

• Focus on data that evaluates outcomes: Investors should integrate outcome and impact data into investment strategies, prioritizing proactive company actions that address MS/HT rather than just focusing on compliance and risk management.
• Partner with affected communities and experts: Collaborating with CSOs, worker rights organizations and modern slavery experts can improve data quality and transparency, ensuring alignment with international norms.
• Advocate for data harmonization: Investors can push for standardized definitions and greater transparency in social data across ESG rating agencies and reporting frameworks, ensuring that modern slavery data is included in global reporting standards.
• Implement robust data governance: Strong data governance frameworks will help ensure that sustainability and human rights data are effectively captured, managed and reported, building trust in disclosed information.
• Invest in upskilling: Strengthening the data management skills of finance, procurement and supply chain teams will foster a culture of transparency and improve data quality, ultimately supporting better communication on human rights issues.

Access "Bridging the data divide: Unlocking the power of data to address modern slavery" here.