Worldwide investments in CLUSTER MUNITIONS
report-worldwide_investments_cluster_munitions-2016
report-worldwide_investments_cluster_munitions-2016
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The exclusion policy applies to all commercial bank<strong>in</strong>g, <strong>in</strong>vestment bank<strong>in</strong>g and asset management<br />
activities, except for passively managed funds such as funds that follow an <strong>in</strong>dex. Furthermore, clients can<br />
request to <strong>in</strong>vest <strong>in</strong> cluster munitions companies via execution only services. 428 The policy does not apply<br />
to Credit Suisse’s external asset managers. 429<br />
Credit Suisse’s uses an exclusion list to implement its policy, which is based on <strong>in</strong>formation provided by<br />
external research provider Susta<strong>in</strong>alytics. The bank does not make this list public. 430<br />
How to ga<strong>in</strong> a place <strong>in</strong> the Hall of Fame?<br />
To be listed <strong>in</strong> the Hall of Fame, the policy should apply to funds follow<strong>in</strong>g an <strong>in</strong>dex. Credit Suisse should<br />
also elim<strong>in</strong>ate the exception for <strong>in</strong>dividual clients that explicitly ask to <strong>in</strong>vest <strong>in</strong> a company known to be<br />
a cluster munitions producer. Such requests should be refused. Furthermore, the policy should apply to<br />
external asset managers as well.<br />
2.2.15 Danske Bank (Denmark)<br />
Danske Bank Group is a large Danish f<strong>in</strong>ancial enterprise, operat<strong>in</strong>g <strong>in</strong> fifteen countries. The group offers<br />
bank<strong>in</strong>g, <strong>in</strong>surance, mortgage f<strong>in</strong>ance and asset management services to Danish and <strong>in</strong>ternational<br />
customers. 431<br />
Initially, Danske Bank adopted a SRI (socially responsible <strong>in</strong>vestment) policy for <strong>in</strong>vest<strong>in</strong>g customer funds<br />
and the group’s own strategic portfolio. This policy was based on several <strong>in</strong>ternationally recognised norms,<br />
one of them be<strong>in</strong>g the Convention on Cluster Munitions. 432 This resulted <strong>in</strong> the exclusion of companies<br />
<strong>in</strong>volved <strong>in</strong> the production and development of cluster munitions. 433 In 2011, Danske Bank decided that<br />
companies excluded from its <strong>in</strong>vestment universe would also be excluded from its other bank<strong>in</strong>g<br />
activities. 434 As such, the policy applies to all commercial bank<strong>in</strong>g and <strong>in</strong>vestment bank<strong>in</strong>g activities of<br />
Danske Bank. 435<br />
With regard to asset management, the policy applies to <strong><strong>in</strong>vestments</strong> for own account and funds where<br />
Danske Bank manages the <strong>in</strong>vestment of customer funds. However, the policy is not applied to “funds-offunds,<br />
structured products, <strong>in</strong>dividual securities or derivatives, <strong>in</strong>stitutional mandates, <strong>in</strong>stitutional funds<br />
or managed accounts.” 436 For externally managed funds, Danske Bank strives to select funds that are based<br />
on <strong>in</strong>ternationally recognised pr<strong>in</strong>ciples for responsible <strong>in</strong>vest<strong>in</strong>g. It enters <strong>in</strong>to dialogue with portfolio<br />
companies to enforce the policy. 437<br />
Danske Bank ma<strong>in</strong>ta<strong>in</strong>s an exclusion list to implement its policy. The list currently conta<strong>in</strong>s the follow<strong>in</strong>g<br />
companies for <strong>in</strong>volvement <strong>in</strong> cluster munitions: Aeroteh, Aryt Industries, Hanwha Corporation, L-3<br />
Communications Hold<strong>in</strong>gs, Lockheed Mart<strong>in</strong>, Motovilikha Plants, Orbital ATK, Poongsan Corporation and<br />
Textron. The list is based on the advice of Ethix SRI Advisors. 438<br />
How to ga<strong>in</strong> a place <strong>in</strong> the Hall of Fame?<br />
To be listed <strong>in</strong> the Hall of Fame, Danske Bank should extend its policy to all its asset management activities.<br />
The policy does not cover funds-of-funds, structured products, <strong>in</strong>dividual securities or derivatives,<br />
<strong>in</strong>stitutional mandates, <strong>in</strong>stitutional funds and managed accounts.<br />
2.2.16 Deutsche Bank (Germany)<br />
Deutsche Bank is a large global bank from Germany. It offers a diverse range of products and services <strong>in</strong><br />
<strong>in</strong>vestment bank<strong>in</strong>g, private and commercial bank<strong>in</strong>g, transaction bank<strong>in</strong>g, and asset and wealth<br />
management. Deutsche Bank enjoys a lead<strong>in</strong>g position <strong>in</strong> its home market, other parts of Europe, North<br />
America and key emerg<strong>in</strong>g markets. 439<br />
170