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
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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.
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The various interpretations of the sustainable investment definition introduced by the SFDR and leveraged in MiFID II leave many market participants unsettled, having to decide between approaches that have different benefits and limitations in the short to medium term.
The Governance of Autonomous Weapons: What Investors Should Know
The ethical implications of lethal autonomous weapons systems (LAWS), often referred to by their dramatic moniker ‘killer robots’, have long been a topic of interest. Until recently, debates about LAWS were relegated as hypothetical, with the technology assumed to be under development and out of reach. Such assumptions may be due for reevaluation, and while a firm conclusion is yet to be drawn, it is worthwhile presenting them to the ESG investment community.
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.
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.
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Global Standards Screening
Identify companies in breach of the UN Global Compact to support your norms-based screening strategy.