Swedish AP2 is represented on the Financial Sector Commission on Modern Slavery and Human Trafficking, an initiative launched during the United Nations General Assembly in New York.

The initiative, backed by the government of Liechtenstein and Australia, involves leaders from the financial sector, global regulators, survivors and non-governmental organisations to find innovative ways to end these human rights abuses.

AP2 is one of the two sovereign wealth funds represented on the commission, the other being the New Zealand Superannuation Fund. Both AP2 and the AP funds’ collective Council on Ethics declined to comment on the fund’s involvement.

Over the next year, the commission will focus on specific areas where the sector can take action against human rights abuses through innovative and sustainable solutions.

According to the Centre for Policy Research at UN University, the financial sector is uniquely positioned to combat modern slavery and human trafficking as it can come into contact through handling the proceeds and funds generated from the illegal industry. With a global reach and access to financial data to target abuses, the sector could be pivotal to the solution.

The commission is chaired by Principles for Responsible Investment (PRI) managing director Fiona Reynolds, who said the outcome of the commission will outline practical, relevant and actionable steps forward in the fight.

“The financial sector has a significant role to play in working to eradicate modern slavery and human trafficking. The Financial Sector Commission is the first of its kind to leverage expertise from all parts of the sector to take coordinated and comprehensive action on these pervasive human rights abuses,” Reynolds said in a statement.

Other commission members include executives from Barclays, ABN Amro and Bridgewater Associates while Muhammad Yunus, the Nobel Laureate for microcredit, is one of the convenors.

Over 40 million people were enslaved in 2016, equalling one in every 185, UN reports. As 193 countries pledged to take measures against the industry in 2015, the new commission and its financial institutions play an important role in detecting and disrupting the financial flows. Modern slavery and human trafficking is estimated to generate around $150bn annually.

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