[Geneva, 15 March 2024]

Today, the most globally diversified investment portfolios are highly exposed to conflict risks, but this phenomenon is often invisible to investors. This is because the exposure to conflict risks is often indirect through the supply chains of large multinational companies. Many critical minerals and raw materials needed for the energy transition and various sought after consumer goods, however, often come from some of the world’s most conflict-affected countries. These raw materials include copper, cobalt, tin, tantalum, tungsten, rare earth metals, gold, coffee, cocoa, cotton, leather, and so on. This trend will only increase as we move towards a more sustainable future.

To discuss the topic of responsible investment in fragile and conflict-affected settings (FCS) – known as ‘Peace Finance’ – TrustWorks CEO and founder, Josie Lianna Kaye was invited by the Geneva Chamber of Commerce to participate in the radio show Parlons économie, hosted by Benjamin Smadja and Radio Lac. Josie was joined by her colleague Claude Voillat, senior advisor at TrustWorks, Dominique Habegger, Sustainability Manager at de Pury Pictet Turrettini. Together, the group explored how responsible management can contribute to peace and stability, offering essential insights for investors and economic decision-makers into how to invest responsibly and intentionally in FCS.

The discussion focused on rising levels of conflict, and the dynamics of globalisation: combined, this means that it is almost impossible for business and investors to avoid having business activities in FCS. As a result, our electric cars, our watches, our jewellery, our food and beverages – almost all have a relationship with contexts affected by conflict. It is imperative, therefore, that businesses adopt conflict sensitive approaches to minimise their negative impacts on conflict and explore opportunities to have positive impacts on peace and stability.

The special episode on ‘Peace Finance’ is available in podcast and video format:

Podcast link: https://www.radiolac.ch/podcasts/emission-integrale-15-03-2024-1446/

Video link: https://carac.tv/replay/parlons-economie/1174

In our blog “What is peace finance anyway” – the first entry into our Responsible Investing in Fragile and Conflict-Affected Settings series – we try and address some of the conceptual challenges around the current use of the term and suggest three principles that the discourse should follow moving forward. (link)