Human Rights Obligations in the Arms Trade: Rethinking Risk for Institutional Investors

Geneva Peacebuilding Platform Co-Hosts Expert Discussion on Emerging Investment Risks

On 28 May 2026, the Geneva Peacebuilding Platform co-hosted an online discussion exploring how human rights obligations in the arms trade are reshaping risk for institutional investors. Organized in partnership with Heartland Initiative, the Essex Business and Human Rights Project, and St. Mary's University, the event brought together leading experts to examine the evolving intersection of human rights, finance, and global security.

Moderated by Florence Foster, Special Advisor to the Geneva Peacebuilding Platform, the discussion featured Dr. Tara Van Ho (St. Mary's University), Sam Jones (Heartland Initiative), and Anil Yilmaz Vastardis (Essex Law School and Human Rights Centre).

The conversation explored how emerging human rights expectations are transforming the way investors assess risk, conduct due diligence, and exercise stewardship in sectors connected to the arms trade.

Expanding the Understanding of the Arms Trade

A key theme throughout the discussion was the need to broaden traditional understandings of the arms trade.

Participants highlighted that today's conflict environments are supported not only by conventional weapons systems, but also by a wider ecosystem that includes:

• Dual-use technologies such as semiconductors, artificial intelligence, and cloud infrastructure;
• Financial services and investment flows;
• Industrial supply chains and critical infrastructure;
• Technologies that can be repurposed for military applications.

For institutional investors, this means that exposure to arms-related risks may be present across a far wider range of portfolios than previously assumed.

From Compliance to Human Rights Due Diligence

Speakers emphasized that regulatory compliance alone is no longer sufficient to manage risk effectively.

Drawing on the UN Guiding Principles on Business and Human Rights (UNGPs), the discussion highlighted the growing expectation that investors undertake ongoing and forward-looking human rights due diligence. This includes identifying risks, assessing potential impacts, implementing mitigation measures, and responding where harm occurs.

Importantly, the focus is shifting from whether harm has already taken place to whether it is reasonably foreseeable.

Key Takeaways

Several important insights emerged from the discussion:

• The scope of the arms trade is expanding. Exposure now extends beyond traditional defence companies to include dual-use technologies, financial flows, and critical infrastructure.
• Compliance is only the starting point. Investors are increasingly expected to move beyond regulatory requirements and adopt continuous human rights due diligence processes.
• Human rights risks are material investment risks. Effective management of these risks is increasingly viewed as part of prudent long-term fiduciary responsibility.
• Investor responsibility is dynamic. Failure to act on known risks can increase an investor's level of responsibility, moving from being linked to harm toward contributing to it.
• Data is available—but requires a broader lens. Investors should look beyond standard ESG indicators and draw on sources such as investigative journalism, academic research, and civil society reporting.
• Active stewardship matters. Meaningful engagement with companies and business partners is becoming an increasingly important component of responsible investment practice.

Human Rights and Fiduciary Duty

The discussion challenged the notion that human rights considerations are separate from fiduciary obligations.

Participants argued that fiduciary duty is fundamentally long-term in nature. Ignoring foreseeable human rights risks in pursuit of short-term gains can expose investors to legal, reputational, and financial consequences that ultimately undermine asset value.

In this context, human rights due diligence was framed not as an ethical add-on, but as an essential component of sound risk management.

Looking Ahead

As geopolitical tensions rise and defence-related investments continue to grow, investors face increasing expectations to understand and address the human rights implications of their decisions.

The discussion underscored that human rights obligations are reshaping how risk is understood and managed across the arms trade ecosystem. For institutional investors, this requires a shift from passive compliance toward active, informed, and accountable decision-making.

Watch the Recording and Read the Full Event Summary

The Geneva Peacebuilding Platform extends its sincere thanks to the speakers, moderator, and all participants for contributing to this timely and thought-provoking discussion.

A recording of the panel discussion and the full event read-out are available for those interested in exploring the discussion in greater depth.