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Weapons Screening
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Vision
To catalyse the global shift to a
sustainable and responsible
financial system.
Mission
To equip market participants with
the ESG insight they need to
manage risks and better address
their social and environmental
impact.
Our Solutions
Assessments Data Research Benchmarks Analytics
Vigeo Eiris, a Moody’s Affiliate, is a global provider of environmental, social and governance solutions
serving the investor and issuer communities.
ESG Pioneer
Key Figures
30+ years of experience
Present in 12 countries
300 team members
Strictly Confidential
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Your Needs
Integrate weapons exclusion into investment processes to ensure alignment with
your own investment approach or to meet the mandates of your clients.
Manage and mitigate reputational risks.
Report on the exposure of your portfolio to weapons.
Engage with weapons companies in your portfolio.
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Our Solution
Flexible and granular. Clients set
their thresholds and parameters.
All listed companies and select
bond issuers globally – over
50,000+ companies from all
regions
Evidence-based research based
entirely on objective, verifiable
open source data.
Data spreadsheets
Quality certified research
methods and processes
In-house specialist
research team
Public sources
10 types of weapon screened across the full supply chain; from munitions,
to weapons platforms, key parts and services to general parts and services
Portfolio reporting
Monthly updates of the data to
integrate corporate actions and
shareholding changes. Annual
update of all data.
Our product provides in depth and up to date assessments on weapons involvement. With
comprehensive content and coverage, our experts are here to support a rigorous screening of your
investments.
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Product Overview
Cluster Munitions
Anti Personnel Landmines
Nuclear Weapons
Biological Weapons
Chemical Weapons
Blinding Laser Weapons
Incendiary Weapons
Non Detectable Fragments
Depleted Uranium Weapons
White Phosphorous Weapons
Full Weapons Systems [Munitions]
Full Weapons Systems [Platforms]
Key Parts or Services
General Parts or Services
Shareholders
Clear Evidence of involvement
Some Evidence of involvement
Not Relevant/Additional Commentary
Weapons Involvement Scope Assessments
10 types of weapon covered, 5 types of involvement examined and 3 assessments provided.
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Process Overview
Screening Peer Review Company Engagement Delivery
Companies are assessed using a rigorous data mining and research process driven by an in
house team of experts. Their research is supported by company engagement to ensure the
accuracy and credibility of the assessment.
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Deliverables & Delivery
VE DataLab Excel DatasetFTP API
Profiles (for each issuers) and datasets can be downloaded from the VE Datalab or delivered to
clients via multiple channels.
www.vigeo-eiris.com
OUR OFFICES:
New York . Brussels . Casablanca . Hong-Kong . London . Milan . Paris . Rabat . Santiago de Chile . Tokyo
OUR PARTNERS:
Hanover . Jerusalem . Mexico City . Rio de Janeiro . Zaragoza
Contacts:
Maila Beniera
Head of Specialised Research
T : +33 1 55 82 32 93
Vigeo Eiris
Les Mercuriales
40 rue Jean Jaurès
93170 Bagnolet, France
Nicolo Scarpat
Weapons Specialist
T : +32 2 206 11 18
Vigeo Eiris
Rue du Progrès 333 / B7
1030 Bruxelles
Belgique
Zain Hussain
Weapons Specialist
T : +32 2 206 67 97
Vigeo Eiris
Rue du Progrès 333 / B7
1030 Bruxelles
Belgique
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Appendices
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Full Weapons Systems
1.Company who designs, develops, produces, or acts as the primary
contractor of a weapon system, such as:
- warheads, rockets, etc
- warships, combat vehicles, bomber aircraft
- rocket launchers and other CW-designated delivery systems
2. Company who owns at least 50% equity shareholding in a another
company involved in (1) – majority shareholding [as a majority
shareholder, the company has control over the operations and
management of the consolidated subsidiary]
3. Shareholders - entities which own 0.1 to 49.99% equity shares in
weapons-involved companies
Key Parts or Services
Company who designs, develops, or produce a bespoke and essential
component of a controversial weapon system. This includes:
- Structural parts and primary subsystems – eg. airframes, wings,
fuses, propulsion systems, guidance systems, fire control systems,
and other that are subsystems of a whole weapon system/platform
- Engines of a warship
- Systems of C5ISR – command, control, communication, computer,
and countermeasures, intelligence, surveillance, and reconnaissance
- Sustainment and modernisation services specific to controversial
weapons platforms. This includes repair, upgrade, overhaul, and
other similar services, designed to enhance the functioning or
prolong the lifespan of a weapon system or its key components
- Combat training and simulation, weapons testing services, etc
Appendix 1 - Definitions
Minor parts or Services
Company who designs, develops, or produce a general component of a
controversial weapons system. This includes:
- Secondary subsystems – e.g. components of subsystems, such as
electro-mechanical components [eg valves, switches, circuits and
cables of a nuclear warhead’s guidance systems.
- IT-related systems or services supplied to state agencies
specifically tasked to operate and manage a controversial
weapons system [eg US Strategic Command USTRATCOM, HM
Naval base Clyde]
- ‘essential’ is meant indispensable to, or a precondition for, the
functioning of a weapon system or military operation.
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Appendix 2 - Definitions
Assessment Criteria
Clear Evidence
This grading applies when the involvement is:
1. Confirmed by the company [through its SEC filings, Annual Reports, Company presentations, Defence exhibits]
2. Confirmed by the government’s defence organisation [DoD publications, reports or database of any government
agency e.g. U.S. Congressional Research, India’s DRDO, UK MoD white papers]
3. Confirmed by multi-lateral defence organisations/groups, NATO, OSCE
4. Confirmed by actual defence contracts indicated in credible and verifiable defence contracting websites
5. When 1 – 4 are not available, at least 2 primary third party sources [see list of credible primary third party sources]
Some Evidence
This grading applies when the involvement is:
1. Confirmed by at least 3 secondary sources [see list of secondary sources], or a combination of 1 primary and at
least 2 secondary sources.
2. When a company is involved as part of the industry design and development team of a weapon that is currently in
operation, in service or stockpiled, but there is no clear evidence of the company’s ongoing sustainment or parts
replacement.
3. Within 3-10 years after the last weapons contract has ended, but no clear evidence of new weapons contract and
the company is not part of the design and development team, but still has the capability to develop the same
system
Not relevant
1. A not relevant grade is provided when:
2. The company manufactures components or provide services to any controversial weapons but are not within the
scope of the VE definition.
3. Involvement is not verified by any of the identified primary or secondary third party sources, but allegations exist
4. When a company is involved as part of the industry design and development team of a weapon that has been
decommissioned – expired involvement
5. 10 years after the last weapons contract has ended, but no clear evidence of new weapons contract and the
company is not part of the design and development team.
6. If the company has publicly declared that it ceased production of the CW system and the claim is verifiable through
credible third party sources
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Appendix 3 - Tiered Sources
Titre de la présentation
Primary Sources Secondary Sources
Established and globally recognised news sources, academic thinktanks
specialising in disarmaments and non proliferation
Established and globally recognised aerospace and defense specialised
websites
1. IHS Janes, The Diplomat, Reuters, other international online news-channels
eg BBC, CNN
2. Federation of American Scientists, Centre for Non-proliferation Studies,
Royal United Services Institute, Project Alpha – KCL, Arms Control, Nuclear
Threat Initiative, The Landmines and Cluster Munition Monitor
1. Army Technology
2. Defense News
3. Naval Technology
4. Others in the same level of credibility and market acceptability
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Appendix 4 – Example Manufacturer Analysis
Sources• Larsen & Toubro's company website, accessed 03/09/2019
• Larsen & Toubro's 2018-2019 Annual Report, p. 223
• Bulletin of Defence Research & Development Organization, Technology Focus. “Armament Technologies”, Vol. 14 No. 6,
2006 Dec
Assessment• Anti-personnel landmines
• Delivery Platform
• Clear Evidence
Context• India has not signed the Convention on Cluster Munitions.
• India has no legislation forbidding investments in Cluster Munitions.
Larsen & Toubro
Detail:• Larsen & Toubro manufactures the Pinaka Multi barrel rocket launcher (MBRL), a multiple rocket launcher which can fire 12
214mm rockets carrying various warheads. The Pinaka was developed by the Defense Research and Development
Organization (DRDO) of India’s Ministry of Defense in partnership with Larsen and Toubro and Tata Power SED, while the
rockets are produced by Indian Ordnance Factories.
• The DRDO confirms that a warhead containing antipersonnel minelets has been developed for Pinaka rockets. The Pinaka
is currently in serial production, with the latest contract awarded in November 2016. In addition, the Indian Army announced
in April 2017 its plan for an additional eight units of the Pinaka.
• Larsen & Toubro's 2018-2019 Annual Report disclosed that it delivered various weapons systems within the fiscal year,
including the Pinaka MLRS.
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Appendix 5 - Example Shareholder Analysis
Blackrock
Full Weapons System [Munitions]National Presto Industries 11.2%
Full Weapons System [Munitions]Hanwha 1.2%
Full Weapons System [Platform]Boeing 4.46%
Full Weapons System [Platform]Tata Power 1.06%
Key Parts or ServicesLockheed Martin 4.63%
Key Parts or ServicesSafran 2.58%
Relevant
Shareholdings
Associated
Involvements
Title of Document Weapons Screening – [Marketing Presentation]
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changesVersion Validated by Date
Maila Beniera Keeran Gwilliam-Beeharee Initial Release V0 Keeran Gwilliam-Beeharee 07/02/2020
