Topic

As larger companies move away from cluster munition manufacture, smaller companies move in – responsible investors need to stay on top of industry developments.

March 12, 2021

Cluster Munitions – In or Out?

Below is an excerpt from ISS ESG’s thought leadership paper “Cluster Munitions – In or Out?” The full paper is available for download from the Institutional Shareholder Services (ISS) online library.

KEY TAKEAWAYS:
  • Large companies are increasingly stepping away from cluster munitions manufacture in a number of countries across the globe.
  • Pressure from responsible investors has been explicitly identified as a motivating factor for this shift.
  • With armed forces seeking to replace traditional cluster munitions capabilities, it is essential that investors monitor developments concerning corporate involvement.
  • As large companies move out, smaller companies appear to be moving in to replace industrial capabilities.
  • Investors concerned about cluster munitions are advised to broaden their focus to include non-issuer entities in their compliance mechanisms for corporate banking, insurance and potential M&A risks.

By:

Henning Weber, Vice President, ISS ESG

Lawrence Dermody, Associate Vice President, ISS ESG

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