Defence Investing: Governance, Due Diligence & Stewardship

Programme information

Defence investment continues to evolve. Developments throughout 2026 have sharpened the questions facing institutional investors around defence, defence technology and dual-use businesses, while increasing the need for clear investment governance, robust due diligence and effective stewardship.

This 3-hour executive masterclass examines how responsible investment principles can be applied to defence investment in practice. Rather than general awareness, the programme is built around the specific judgements investment teams need to make day to day: what questions to ask of managers or portfolio companies, what should trigger enhanced due diligence, what evidence to request, and how to document and evidence a decision.

The programme also distinguishes between the two main audiences it serves. Asset owners typically need to assess a manager's defence exposure and the robustness of that manager's due diligence process. Asset managers typically need to assess individual companies, products and end-use risk directly. Both perspectives are addressed throughout, with module content flagged where the practical application differs.

Drawing on recent developments and GAA's work throughout 2026, participants will explore how existing responsible defence investment tools and frameworks can support investment analysis and decision-making. The programme will also consider lessons from investor engagement, heightened human rights due diligence and emerging issues across private markets and defence technology - including why traditional revenue screens and sector classifications are increasingly insufficient for identifying dual-use risk.

The objective is not to determine whether investors should or should not invest in defence. It is to help investment teams make informed, structured and well-governed decisions and prepare for the issues likely to shape defence investment in 2027.

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Structure

Module 1: The Defence Investment Landscape

Examine how the defence investment landscape has changed during 2026 and what these developments mean for institutional investors, investment mandates and governance.

Module 2: Responsible Defence Investment Frameworks & GRID

Explore how existing responsible defence investment tools and frameworks can be applied in practice, including the use of GRID to support investment analysis, due diligence and decision-making. Consider how application differs for an asset owner assessing a manager's process versus an asset manager assessing a company directly.

Module 3: Heightened Due Diligence, CAHRA & Investment Risk

Identify what triggers enhanced due diligence for defence and dual-use exposure, and what that process should cover: products and technologies, customers, countries, conflict-affected and high-risk areas (CAHRAs), end use, export controls and human rights impacts. Examine why revenue-based screens and standard sector classifications increasingly fail to capture dual-use risk, and what evidence and questions should be used instead - for managers assessing companies, and for owners assessing managers.

Module 4: Stewardship & Defence Transparency

Examine lessons from the Defence Transparency Engagement Initiative and their implications for investor stewardship. Consider how investors can assess company transparency, engage with defence-related holdings, and determine when further engagement or escalation may be required.

Module 5: Governance, Private Markets & 2027 Priorities

Consider emerging issues for private markets and defence technology, including how investment teams can strengthen governance and document defence-related investment decisions. Identify the key issues and capabilities investors should prepare for in 2027.

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