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.