When companies operate in areas, marked by conflict, instability and violence, their role extends far beyond commercial activity, they cannot do business as usual. In Conflict Affected and High Risk Areas (CAHRA’s), business decisions can influence conflict dynamics, human rights outcomes and public trust. Israel, the West Bank and Gaza are no exception and the business community, including many European and Dutch companies, is already deeply involved.
Yet despite extensive reporting by NGOs, the UN and research institutions, very few companies publicly demonstrate that they apply heightened human rights due diligence in relation to their activities in this context.
That is both surprising and risky.
serious risks are involved
Recent reports, including those from SOMO and The Rights Forum, indicate that EU business, including Dutch companies play a significant role in business activities linked to the conflict in the occupied territories. The Netherlands is currently one of the largest foreign investors in the Israeli economy (even larger than the US) and a major trading partner.
Despite that scale of involvement, open corporate reflection or action to prevent potential complicity remains the exception rather than the norm.
This gap exposes companies to serious risks: legal, ethical, operational and reputational. Increasingly, public scrutiny is directed not only at governments and armed actors, but also at the businesses enabling or supporting activities in such contexts.
why heightened and conflict specific due diligence is not optional?
Companies operating in CAHRAs hold leverage. They influence supply chains, financial flows, infrastructure and technology. That leverage can worsen a conflict or help prevent further harm.
International standards are clear. Under the UN Guiding Principles on Business and Human Rights and OECD Guidelines, companies operating in CAHRAs must apply heightened human rights due diligence. Companies must go beyond standard ESG or supplier screening. Conflict specific due diligence is needed.
Heightened or conflict specific due diligence requires:
- Mapping conflict dynamics and power relations
- Understanding how business activities interact with conflict
- Assessing risks of contributing to breaches of international humanitarian law
- Identifying vulnerable populations affected by operations
- Considering whether continued operations help or harm
- Engaging with stakeholders, including workers and affected communities
It also means ensuring that decisions, whether to continue, adapt or exit, are informed, responsible and rights-based. The goal is not only to avoid complicy, but to prevent contributing to the conflict itself.
What We See Instead
Public documentation of meaningful heightened HRDD remains limited. So far, company responses tend to fall into three categories:
- Commissioning a one-off HRIA / HRDD (Meta/BSR) in 2021, without follow up, as shows the investigation Human Rights Watch did two years later.
- Reactive responses driven by NGO, investors or media pressure, e.g. NGO or investor questionnaires (HPE, Ericsson, TikTok, Expedia, Maersk);
- Exclusion or divestment policies, mostly among institutional investors (e.g., NBIM, Amundi, Union Investment)
There Is a Framework - Companies Just Need to Use It
The good news: companies are not expected to navigate this complexity alone. The UNDP, OECD and UN Guiding Principles offer clear guidance for doing business responsibly in conflict zones.
Key questions include:
- How do our activities interact with local power dynamics and conflict?
- Are our business partners linked to human rights or humanitarian law violations?
- Could our operations worsen the situation for vulnerable groups?
- What responsible options do we have: adapt, mitigate, engage or exit?
The answers are rarely simple but they are crucial.
A Path Forward And an Invitation
In working with companies on human rights due diligence, I often see more uncertainty than unwillingness. Many organisations want to do the right thing, but lack clarity, confidence or tools.
What is needed now is not silence, but a structured, informed approach grounded in international standards and local context.
This moment offers companies an opportunity to:
- Reduce operational and reputational risks
- Use their leverage constructively
- Align with emerging regulatory expectations and investor scrutiny
- Demonstrate leadership in one of the most visible conflict contexts of our time.
If your organisation is operating, sourcing, financing or investing in this region or if you are unsure whether heightened due diligence applies it is not too late to act.
I support companies in navigating these questions responsibly and practically, using a conflict-sensitive due diligence approach tailored to their activities and level of involvement.
If you would like to explore what heightened due diligence would look like in your specific context, or where to begin, feel free to reach out for a conversation.
If your company is active or connected to business in Israel, the West Bank or Gaza, now is the moment to assess your position thoughtfully and responsibly. I’d be glad to help.
