ESG Viewpoint: Managing conflict risk: Our engagement with companies in Myanmar

While widely out of the news right now, since the Myanmar military held a coup against the country’s democratically elected government in February 2021, coupled with the consequences of the Covid-19 pandemic, the country is facing a humanitarian crisis. The suppression of pro-democracy protestors and the persecution of the Rohingya minority resulted in sanctions, asset freezing and protests in efforts to stop financing the military or any linked operations. These implications have already undermined the substantial economic development that Myanmar has built, with the World Bank forecasting a 18% contraction in the economy this year. Companies operating in Myanmar, particularly those with links to the military, are increasingly exposed to financially material business, legal and social risks. As responsible investors, we are actively responding because of our fiduciary duty to protect the value of clients’ assets and to address the clear violations of the UN Guiding Principles on Business and Human Rights.