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.
- 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.
Henning Weber, Vice President, ISS ESG
Lawrence Dermody, Associate Vice President, ISS ESG