Worldwide investments in CLUSTER MUNITIONS
report-worldwide_investments_cluster_munitions-2016
report-worldwide_investments_cluster_munitions-2016
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2.2.24 KBC (Belgium)<br />
KBC Group is a Belgian bank<strong>in</strong>g and <strong>in</strong>surance group focus<strong>in</strong>g on retail, small and medium enterprises<br />
(SME) and midcap customers. It concentrates on its home markets of Belgium and several countries <strong>in</strong><br />
Central and Eastern Europe. KBC serves approximately ten million clients worldwide. 492<br />
KBC’s controversial weapons policy states that KBC does not f<strong>in</strong>ance or <strong>in</strong>vest <strong>in</strong> companies that are <strong>in</strong>volved<br />
<strong>in</strong> the development and manufacture of, or trade <strong>in</strong>, controversial weapons. KBC def<strong>in</strong>es controversial<br />
weapons as cluster munitions, anti-personnel m<strong>in</strong>es, biological weapons, <strong>in</strong>cendiary weapons and weapons<br />
conta<strong>in</strong><strong>in</strong>g depleted uranium. 493<br />
The policy covers all of KBC’s commercial bank<strong>in</strong>g, <strong>in</strong>vestment bank<strong>in</strong>g and asset management activities.<br />
KBC’s policy, however, makes exceptions for some funds follow<strong>in</strong>g an <strong>in</strong>dex and for execution only<br />
activities. 494<br />
KBC publishes an exclusion list, which is based on external research by Ethix SRI Advisors. It currently<br />
conta<strong>in</strong>s 93 companies for <strong>in</strong>volvement <strong>in</strong> controversial weapons. All companies, except CASIC, <strong>in</strong>cluded<br />
<strong>in</strong> this report’s red flag list are on the exclusion list. 495<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, KBC’s policy should cover all <strong><strong>in</strong>vestments</strong>. KBC now exempts some funds<br />
follow<strong>in</strong>g an <strong>in</strong>dex for <strong>in</strong>stitutional <strong>in</strong>vestors. KBC should also elim<strong>in</strong>ate the exception for clients’ requests<br />
for <strong><strong>in</strong>vestments</strong> <strong>in</strong> cluster munitions producers.<br />
2.2.25 Länsförsäkr<strong>in</strong>gar (Sweden)<br />
Länsförsäkr<strong>in</strong>gar AB is a Swedish bank and <strong>in</strong>surance group owned by 23 regional <strong>in</strong>surance companies.<br />
Länsförsäkr<strong>in</strong>gar AB serves about 3.5 million clients. 496<br />
Länsförsäkr<strong>in</strong>gar def<strong>in</strong>es controversial weapons as anti-personnel landm<strong>in</strong>es, cluster munitions and nuclear<br />
weapons. 497 The f<strong>in</strong>ancial <strong>in</strong>stitution follows the def<strong>in</strong>ition of the Convention on Cluster Munitions as<br />
ratified by the Swedish government.<br />
Länsförsäkr<strong>in</strong>gar’s policy applies to direct <strong><strong>in</strong>vestments</strong> <strong>in</strong> stocks and bonds of companies <strong>in</strong>volved <strong>in</strong><br />
controversial weapons. Länsförsäkr<strong>in</strong>gar only provides loans to <strong>in</strong>dividuals, small companies and farmers<br />
<strong>in</strong> Sweden. Therefore, the arms sector is not part of its lend<strong>in</strong>g universe. Similarly, <strong><strong>in</strong>vestments</strong> for own<br />
account are only <strong>in</strong> small Swedish companies and government bonds. These companies are not active <strong>in</strong><br />
cluster munitions production.<br />
Länsförsäkr<strong>in</strong>gar’s own funds and segregated mandates are managed by external asset managers. For these<br />
asset categories, the external managers are required to follow Länsförsäkr<strong>in</strong>gar’s exclusion policy. For other<br />
externally managed asset categories, Länsförsäkr<strong>in</strong>gar encourages but does not oblige its external managers<br />
to follow its exclusion list and to have an exclusion policy on controversial weapons <strong>in</strong> place. Several<br />
external managers have such exclusion criteria <strong>in</strong> place while others lack a policy. 498<br />
To implement its policy, Länsförsäkr<strong>in</strong>gar makes use of the advice of service provider Global Engagement<br />
Services (GES). 499 The exclusion list conta<strong>in</strong>s the follow<strong>in</strong>g companies for <strong>in</strong>volvement <strong>in</strong> cluster munitions:<br />
Aerojet Rocketdyne, General Dynamics, Hanwha, L-3 Communications, Lockheed Mart<strong>in</strong>, Orbital ATK,<br />
Poongsan Corporation, Poongsan Hold<strong>in</strong>gs Corporation and Textron. 500<br />
How to ga<strong>in</strong> a place <strong>in</strong> the Hall of Fame?<br />
To ga<strong>in</strong> a place <strong>in</strong> the Hall of Fame, Länsförsäkr<strong>in</strong>gar should <strong>in</strong>struct all external asset managers to ensure<br />
all of its externally managed funds exclude companies <strong>in</strong>volved with cluster munitions.<br />
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