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
New Draft Disclosure Rules Change Timelines and Scope of EU Taxonomy
SFDR: Raising the bar for sustainability disclosures
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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A Single Market Standard
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25+ Years ESG Expertise
350+ ESG research analysts across our global offices.
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As recognized by Environmental Finance and the Climate Bonds Initiative.
Related Insights and Resources
New Draft Disclosure Rules Change Timelines and Scope of EU Taxonomy
In recent months, a lot has been said and written about the EU Taxonomy, the green classification system of economic activities that aims to drive capital flows to sustainable investments supporting the EU’s policy goals on climate and the environment. Political, corporate, and civil society lobbying reached its peak when the EU published draft rules last December, which deviated substantially from expert recommendations. However, the latest draft delegated act with rules on Taxonomy reporting published by the European Commission on May 7th has received far less attention even though some of the proposed changes affect the practical implementation timelines as well as the scope and ambition of the regulation.
Les points communs entre la réglementation française et européenne en matière d’ISR
Quand les nouvelles réglementations sur les investissements durables et responsables (ISR) furent annoncées avec le « EU Action Plan », les institutionnels français n'ont pas cillé. Depuis l'accord de Paris en 2015, de nombreuses nouvelles obligations réglementaires liées à la publication d’information et à l’analyse ESG ont influencé les stratégies d’investissements responsables des institutionnels français. Le règlement SFDR qui est entré en vigueur le 10 mars dernier vient s’ajouter au cadre réglementaire local en matière de reporting.
EU Sustainable Finance Disclosure Regulation: An Update
Update - 3 March, 2021: To help investors comply with the new requirements of the SFDR, Sustainalytics launched the PAI Data Solution that maps our research to the 60 indicators defined by the regulator. This new dataset will enable investors to consider the PAIs in their investment decisions as well as supporting disclosure requirements. Visit our website to learn how we can help with you SFDR compliance journey.
Related Solutions
Controversial Product Involvement
Screen for companies involved in specific product areas, such as tobacco and military contracting.
Human Rights Radar
Identify and understand companies’ involvement in countries and territories where there is a high risk of human rights violations.
Global Standards Screening
Identify companies in breach of the UN Global Compact to support your norms-based screening strategy.
