What is conflict sensitivity?

Conflict sensitivity involves understanding how business activities influence or are influenced by the conflict context, particularly in regions like the Sahel. Private sector companies must adopt a “do no harm” approach to avoid exacerbating conflicts and identify opportunities to reduce conflict risks and contribute positively.

Why is conflict sensitivity important for the private sector?

Conflict sensitivity helps identify and manage project risks in fragile contexts where situations can escalate quickly, leading to unintended consequences. For instance, leveraging security forces involved in conflict can implicate a company in broader conflict dynamics, exposing it to reputational risks. In one case, a company in a civil war zone inadvertently funded armed groups by arranging safe passage for its operations, leading to international scrutiny and litigation.

How can conflict sensitivity be applied at the project level?

Conflict sensitivity should be embedded throughout the project lifecycle. During the planning phase, companies should conduct conflict risk screening and stakeholder mapping. This includes understanding security and conflict risks and their potential spillover effects on the project. In implementation, mitigation measures should be based on identified conflict risks and integrated into existing processes. Continuous monitoring throughout the project’s life is essential to manage both existing and emerging conflict risks.

How can investors support their clients?

Investors play a crucial role by offering additional support or capacity building to clients, including early risk identification and the development of mitigation measures. By leveraging existing networks, investors can assist clients in accessing high-quality conflict analysis, improving the resilience of their investments. Mainstreaming conflict analysis into due diligence processes and continuing risk monitoring can enhance long-term investment resilience and avoid adverse impacts.

Recommendations

The report recommends that companies integrate conflict risk considerations into existing systems, such as environmental and social management systems. This proactive approach can help avoid conflicts escalating within project communities. Companies should also build partnerships with stakeholders to better understand and address risks, maximising the positive impact of their projects. Emphasising positive impact, such as providing economic opportunities in conflict-affected areas, can contribute to peace and stability. For example, creating trainee programmes for local youth in high-unemployment areas can reduce the likelihood of them joining armed groups, while simultaneously building a sustainable local workforce for the company.

Quantitative evidence

Companies operating in complex and conflict-affected markets face unforeseen challenges, delays, and higher costs. Early screenings and proactive stakeholder engagement can mitigate these risks, saving companies millions in potential work stoppages and reputational damage.