Worldwide investments in CLUSTER MUNITIONS
report-worldwide_investments_cluster_munitions-2016
report-worldwide_investments_cluster_munitions-2016
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Deutsche Bank’s Policy on Cluster Munitions “prohibits do<strong>in</strong>g bus<strong>in</strong>ess with conglomerates (and their<br />
subsidiaries) that manufacture or distribute cluster munitions, banned under the Oslo Convention on<br />
Cluster Munitions or similar to those, as well as key components.” 440 The policy applies to Deutsche Bank’s<br />
commercial bank<strong>in</strong>g and <strong>in</strong>vestment bank<strong>in</strong>g activities. 441<br />
Although the bank excludes future <strong>in</strong>vestment <strong>in</strong> cluster munitions companies, it honours prior contracts<br />
<strong>in</strong> cases where committed credit l<strong>in</strong>es exist. Accord<strong>in</strong>g to the policy, Deutsche Bank could still consider<br />
do<strong>in</strong>g bus<strong>in</strong>ess with cluster munitions producers if it obta<strong>in</strong>s a written statement confirm<strong>in</strong>g the<br />
term<strong>in</strong>ation of the company’s cluster munitions-related bus<strong>in</strong>ess. If such a company has exist<strong>in</strong>g contracts,<br />
Deutsche Bank may accept the time-bound <strong>in</strong>tent to term<strong>in</strong>ate production. 442<br />
The asset management divisions of Deutsche Bank <strong>in</strong> Europe do not directly <strong>in</strong>vest <strong>in</strong> companies associated<br />
with controversial conventional weapons, which <strong>in</strong>cludes cluster munitions, anti-personnel m<strong>in</strong>es 443 and<br />
depleted uranium weapons. 444 In 2014, the Asset & Wealth Management division started engagement with<br />
external managers on ESG issues. 445 In October 2014, new guidel<strong>in</strong>es entered <strong>in</strong>to force. Pursuant to these,<br />
funds that follow an <strong>in</strong>dex designed by Deutsche Bank exclude cluster munitions. The same applies to<br />
alternative <strong><strong>in</strong>vestments</strong>. However, <strong><strong>in</strong>vestments</strong> <strong>in</strong> passive funds managed by third parties that <strong>in</strong>clude<br />
cluster munitions are allowed. 446<br />
Deutsche Bank makes use of an exclusion list, which is based on the data of research <strong>in</strong>stitutes (e.g. Ethix<br />
SRI Advisors). The list is not publicly available. 447<br />
How to ga<strong>in</strong> a place <strong>in</strong> the Hall of Fame?<br />
We commend Deutsche Bank for improv<strong>in</strong>g its cluster munitions policy by exclud<strong>in</strong>g cluster munitions<br />
from its <strong>in</strong>ternally managed funds that follow an <strong>in</strong>dex. To be listed <strong>in</strong> the Hall of Fame, Deutsche Bank<br />
should extend its policy to cover all external asset management activities, <strong>in</strong>clud<strong>in</strong>g externally managed<br />
<strong>in</strong>dex-derivatives and passively managed external funds that follow and <strong>in</strong>dex. Furthermore, the stipulation<br />
<strong>in</strong> the policy that states that the bank considers to do bus<strong>in</strong>ess with a cluster munitions producer that<br />
confirms time-bound <strong>in</strong>tent to term<strong>in</strong>ate production seems contradictory to Deutsche Bank’s exclusion of<br />
cluster munitions producers, as the producer may still have exist<strong>in</strong>g contracts that are related to cluster<br />
munitions. We encourage Deutsche Bank to close this loophole and fully exclude all bus<strong>in</strong>ess relationships<br />
with cluster munitions producers.<br />
2.2.17 Ethias (Belgium)<br />
Ethias is a Belgian <strong>in</strong>surance company with around 1 million clients. 448 Ethias offers services to government<br />
<strong>in</strong>stitutions, organisations and <strong>in</strong>dividual clients. 449<br />
Ethias’s ethical <strong>in</strong>vestment code states that the <strong>in</strong>surance company does not <strong>in</strong>vest <strong>in</strong> companies that use,<br />
develop, produce, acquire, stockpile, reta<strong>in</strong> or transfer cluster munitions. 450 The ethical <strong>in</strong>vestment code<br />
applies to Ethias’s direct <strong><strong>in</strong>vestments</strong>, <strong>in</strong>clud<strong>in</strong>g all discretionary mandates Ethias gives to external<br />
managers. Ethias’s policy is not applied to externally managed funds, such as passively managed funds that<br />
follow an <strong>in</strong>dex. 451<br />
Ethias 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 that are excluded for <strong>in</strong>volvement <strong>in</strong> cluster munitions: Boe<strong>in</strong>g, Doosan Corporation, GenCorp,<br />
General Dynamics, Hanwha Corporation, Honeywell International, L-3 Communications, Lockheed Mart<strong>in</strong>,<br />
Nor<strong>in</strong>co, Orbital ATK, Poongsan, Raytheon, S<strong>in</strong>gapore Technologies Eng<strong>in</strong>eer<strong>in</strong>g, Temasek and Textron. 452<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, Ethias should extend its policy to all <strong><strong>in</strong>vestments</strong> <strong>in</strong> externally managed<br />
funds, <strong>in</strong>clud<strong>in</strong>g passively managed funds such as funds that follow an <strong>in</strong>dex.<br />
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