2026 has opened with volatility and uncertainty, wrong-footing anyone who hoped last year was an outlier. Investors are already navigating a rise in conflicts around the world and that trend looks set to continue. Events in Venezuela currently dominate the headlines, but the Christmas break has also seen tense talks in Ukraine and a fragile ceasefire in Gaza, while violence in Sudan and the Democratic Republic of Congo continue. Financial institutions undoubtedly have a role to play in what comes next, but how can they navigate so much uncertainty while still protecting human rights in conflict?
The situation in Gaza remains desperate
ShareAction continues to see the situation in Gaza with horror and sadness. We condemn the violence committed by both Hamas and the Israeli Defence Forces and mourn all victims of the conflict.
In addition to the 1,200 victims of 7 October 2023 the UN estimates that since then more than 240,000 Palestinians have been killed or injured1, including more than 64,000 children across the Gaza strip. The delivery of food and vital supplies and services continues to be challenging and threatens to derail hopes of rebuilding infrastructure and repairing communities. Independent human rights experts including the International Court of Justice (ICJ2), UN experts3 and human rights organisations like Amnesty International4 and Human Rights Watch5 have identified serious human rights abuses by the Israeli government.
Financial institutions have a responsibility to act
Businesses profit from Israel’s occupation of Gaza and the West Bank, as do investors in these companies. Reports by multiple bodies including the UN special rapporteur on human rights in the occupied Palestinian territories and the Don’t Buy Into Occupation (DBIO) coalition have identified key businesses implicated. Bystanders No More have produced a specific new briefing for investors which offers further evidence and analysis of the risks to investors of exposure to the Gaza conflict.
At ShareAction we urge investors to review these useful sources of evidence-based research and analysis so they are aware of the actions of the companies they may be investing in and ensure their investments are not enabling human rights violations and breaches of international law.
In many cases decisions to exclude high risk companies will be straightforward: at the very least they will be justified on “financial risk” grounds alone. Some judgements will be more complex: responsible investors need to go beyond managing financial risk to take responsibility for the human, social and environmental impact their investments have in the world.
Global conflict is on the rise
While the devastation in Gaza is front of mind, investors are navigating a rise in conflicts around the world. ShareAction pointed to the crucial role investors can play as far back as March 2022 when the war in Ukraine began. Sadly, that conflict continues and others, in the Democratic Republic of Congo and Sudan as well as Gaza, have continued to escalate. As the world becomes more insecure, we are seeing an increased focus on private investment in defence. Given the heightened risk of human rights abuses where there is armed conflict, it is more critical than ever for investors to carefully scrutinise their choices.
Work to support lasting peace and rebuild damaged infrastructure continues to affect investment choices way after troops and the media have moved on. Investors need a clear and detailed human rights policy to understand the ways that their investments may enable or exacerbate conflict – and their responsibilities for repair where they do.
For investors, inaction is no longer an option. We are seeing investors starting to recognise the need to review their portfolios and divest funds from companies that are complicit in human rights abuses. For example, Norges Bank Investment Management (NBIM), the manager of Norway's sovereign wealth fund, divested from Caterpillar in August 2025.
NBIM’s Council on Ethics found that Caterpillar contributed to serious rights violations in the occupied West Bank and Gaza. Specifically, the council pointed to Israel’s use of Caterpillar bulldozers to destroy Palestinian property in Gaza and the West Bank, and found that the company had not taken steps to prevent this unlawful activity. The decision followed significant public and political pressure, with scrutiny on investment choices growing all the time.
Bystanders No More cite a number of additional case studies related to the Gaza conflict in their recent investor briefing.
We can see this increased pressure in other contexts too. In October 2025 shares in BNP Paribas fell after it was found liable for more than $20mn in damages to three Sudanese refugees over its role in providing banking services to the African country’s former ruler and enabling human rights abuses. BNP Paribas has said they will appeal the decision.
We want to see investors urgently take steps to understand where the money they are responsible for goes and how it’s being used.
Financial institutions need to follow human rights law - in principle and in practice
Financial institutions need to recognise their responsibilities to avoid their money being used to fund, or profit from, unlawful conflicts and human rights abuses. They should carry out heightened human rights due diligence to avoid contributing to human rights abuses and breaches of international law, following the steps set out in the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. And due diligence has to be backed up by action, including engagement and divestment.
The risks to financial institutions which fail to do proper due diligence are significant. Not only do conflicts lead to increased volatility, impacting on businesses’ ability to plan and invest, but public scrutiny is on the rise – the world is watching.
Footnotes
1 Between 7 October 2023 and 10 December 2025, according to the MoH in Gaza, as stated by OCHA, 70,369 Palestinians reportedly have been killed in the Gaza Strip and another 170,999 have been injured
2 The ICJ has not yet reached a verdict on whether Israel’s actions in Gaza constitute genocide, but it’s preliminary findings in January 2024 found the claim “plausible” and noted the catastrophic humanitarian situation in the Gaza strip. In March 2024 it added further measures, including demanding that humanitarian assistance be allowed to enter.
3 16.09.25 the UN Independent International Commission of Inquiry on the Occupied Palestinian Territory, including East Jerusalem, and Israel issued a statement based on a report saying that Israel has committed genocide against Palestinians in the Gaza Strip
4 05.12.24 Amnesty International concludes Israel is committing genocide against Palestinians in Gaza
5 19.12.24 states that ‘Israeli authorities are responsible for the crime against humanity of extermination and for acts of genocide
6 (Header Photo) KYIV, UKRAINE - Mar. 14, 2022: War in Ukraine. Completely destroyed residential building that was hit by a shell, as Russia's attack on Ukraine continues, in the Obolon district in Kyiv
