International conventions that ban the production and sale of controversial weapons as well as the United Nation’s Arms Trade Treaty are increasingly adopted by national regulators. But even outside of these regulatory regimes, exposure to these types of holdings can result in substantial reputational damage.
Sustainalytics’ Defense Research enables investors to screen companies involved in controversial weapons and arms trade.
The research includes our Controversial Weapons Radar as well as our Arms Trade Research. Controversial Weapons Radar provides research on companies’ involvement in the direct or indirect manufacture, sale or support of controversial weapons, such as cluster munitions and nuclear weapons, while Arms Trade Research provides information on public companies selling arms to sanctioned countries or countries where there is a high risk of violence against civilians.
Latest Insights
EU Taxonomy in Limbo - Reporting Alignment of Article 8 and 9 Funds in 2022
3 Reasons to Skill Up and Scale Up ESG Stewardship in 2022
5 Sustainability Themes to Expect in 2022
Key Benefits
Compliance
Comply with relevant regulations and client mandates and align your portfolio to international treaties
Reputation Management
Manage reputational risk by expanding your Defense and Human Rights policies to cover controversial arms as well as the sale of arms to regimes where there is a high risk of violence against civilians
Deeper Insights
Gain clear oversight of the nature of involvement in controversial weapons and arms trade and dive deeper into the issues with links to supporting sources and references
Analyst Access
Speak directly to our Defense analysts who are able to provide more context and nuance as you dive into the issues
Global Coverage
Controversial Weapons Research
All public and private companies with involvement
Arms Trade
All public companies
Regulatory Drivers
Countries are increasingly signing up to international treaties and regulations that prohibit controversial weapons or restrict arms trade to controversial regimes.
1968
Non-proliferation Treaty
1972
Biological and Toxin Weapons Convention
1997
Chemical Weapons Convention
1999
Anti-personnel Mine Ban Convention
2008
Convention on Cluster Munitions
2014
United Nations’ Arms Trade Treaty
2021
Treaty on the Prohibition of Nuclear Weapons
Controversial Weapons Radar Report Insights
The report provides background information on the involvement of the companies included in the Controversial Weapons Radar such as sources used, estimates of revenues derived from activities in the defense sector, and relevant corporate relationships.
Arms Trade Report Insights
Identify companies that export arms to countries where they are used against civilians or where there is a high risk thereof. Learn about relevant arms embargos, which countries imposed them and read a description of the transaction with links to media sources.
Why Sustainalytics?
A Single Market Standard
Consistent approach to ESG assessments across the investment spectrum.
Award-Winning Research and Data
Firm recognized as Best ESG Research and Data Provider by Environmental Finance and Investment Week.
End-to-End ESG Solutions
ESG products and services that serve the entire investment value chain.
30 Years of ESG Expertise
500+ ESG research analysts across our global offices.
A Leading SPO Provider
As recognized by Environmental Finance and the Climate Bonds Initiative.
Related Insights and Resources
EU Taxonomy in Limbo - Reporting Alignment of Article 8 and 9 Funds in 2022
For observers of the EU’s Sustainable Finance Strategy, 2022 kicked off with a crack and a bang as the European Commission went ahead with plans to include natural gas and nuclear-related activities as potentially sustainable under their ‘Green Taxonomy’. However, in midst of this furor, seemingly less attention has been paid to other components of the regulation that have quietly taken effect from the 1st of January 2022, presenting their own set of challenges.
3 Reasons to Skill Up and Scale Up ESG Stewardship in 2022
As our clients and the industry at large focus on proactively mitigating risk and capitalizing on this evolving landscape, stewardship will be a key lever for savvy investors—particularly those facing external pressure to divest. Here are the ESG themes we see influencing stewardship priorities this year.
5 Sustainability Themes to Expect in 2022
As we enter 2022, it struck me that VUCA--a concept that originated in the mid-1980s at the U.S. Army War College to describe the volatility, uncertainty, complexity, and ambiguity of the world after the Cold War—is still a useful framework to think of where we are now.
For Investors with Ambitions to Lead on Climate Action Post COP26
In the weeks following COP26, investors in the UK and worldwide face a myriad of upcoming climate-related regulations heading towards the implementation phase. In addition, major global coalitions such as the Glasgow Financial Alliance for Net Zero have sprung up to attempt to accelerate decarbonization via targeted investment.
Related Solutions
Controversial Product Involvement
Screen for companies involved in specific product areas, such as tobacco and military contracting.
Global Standards Engagement
Engage with companies that breach international norms and standards as identified by our Global Standards Screening research.
Learn More
Global Standards Screening
Identify companies in breach of the UN Global Compact to support your norms-based screening strategy.