Navigating Portfolio Exposure to Conflict-Affected and High-Risk Areas: Practical Guidance for Investor Engagement with Companies

Practical guide for investors to manage heightened risks associated with their portfolio companies’ activities and relationships in these conflict-affected and high-risk areas

Description

Navigating Portfolio Exposure to Conflict-Affected and High-Risk Areas is a practical guidance resource for institutional investors on managing human rights and conflict-related risks linked to investments in conflict-affected and high-risk areas (CAHRA). Based on an investor-led pilot project with 22 asset owners and managers and confidential engagements with technology and renewable energy companies, the report situates investor responsibilities within the UN Guiding Principles on Business and Human Rights and emerging EU due diligence laws.

The resource provides actionable guidance to help investors identify salient CAHRA risks, engage companies beyond high-level policies, and assess the quality of heightened human rights due diligence. It highlights leading practices, persistent gaps, and recommendations across company policy, practice, and governance, with a focus on improving conflict-sensitive risk management and investor–company dialogue.