Worldwide investments in CLUSTER MUNITIONS
report-worldwide_investments_cluster_munitions-2016
report-worldwide_investments_cluster_munitions-2016
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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, UBS should extend its policy to all actively managed funds and<br />
third-party <strong><strong>in</strong>vestments</strong>, as well as its passively managed funds.<br />
2.2.44 UniCredit Group (Italy)<br />
UniCredit Group is a large Italian bank<strong>in</strong>g group that provides corporate, <strong>in</strong>vestment and private bank<strong>in</strong>g<br />
services. 612 It operates <strong>in</strong> seventeen European countries. 613<br />
UniCredit’s position statement on the defense/weapons <strong>in</strong>dustry states that UniCredit absta<strong>in</strong>s from<br />
f<strong>in</strong>anc<strong>in</strong>g transactions <strong>in</strong>volv<strong>in</strong>g the development, manufacture, ma<strong>in</strong>tenance or trade <strong>in</strong> controversial/<br />
unconventional products such as cluster bombs. 614 UniCredit’s 2007 susta<strong>in</strong>ability report shows that<br />
companies <strong>in</strong>volved <strong>in</strong> these activities are excluded. 615 The policy applies to UniCredit’s commercial bank<strong>in</strong>g<br />
and <strong>in</strong>vestment bank<strong>in</strong>g activities. 616<br />
In 2011, Pioneer Investments, UniCredit’s’ asset management arm, decided to exclude <strong><strong>in</strong>vestments</strong> <strong>in</strong><br />
companies <strong>in</strong>volved <strong>in</strong> the production of cluster munitions. This policy applies to Pioneer Investments’<br />
actively managed funds. It makes an exception for quant funds and funds follow<strong>in</strong>g an <strong>in</strong>dex. In addition,<br />
it does not apply to US-domiciled funds or to all Pioneer portfolios’ third-party funds. 617<br />
UniCredit makes use of an exclusion list, but the list is not publicly available. The list is based on<br />
<strong>in</strong>formation from external sources such as Oekom Research, MSCI ESG Research and EC Capital. 618<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, UniCredit should apply its policy to all products it offers, <strong>in</strong>clud<strong>in</strong>g quant<br />
funds, funds follow<strong>in</strong>g an <strong>in</strong>dex, US-domiciled funds and all third-party funds.<br />
2.2.45 Van Lanschot (the Netherlands)<br />
Van Lanschot Bankiers offers private bank<strong>in</strong>g to wealthy private customers, entrepreneurs and family<br />
companies, and merchant bank<strong>in</strong>g to bus<strong>in</strong>ess professionals and executives, healthcare professionals,<br />
associations and foundations. Van Lanschot holds offices <strong>in</strong> the Netherlands, Belgium and Switzerland. 619<br />
Van Lanschot does not f<strong>in</strong>ance or <strong>in</strong>vest <strong>in</strong> companies <strong>in</strong>volved <strong>in</strong> the development, production, test<strong>in</strong>g,<br />
stor<strong>in</strong>g, ma<strong>in</strong>tenance and sell<strong>in</strong>g of controversial weapons, <strong>in</strong>clud<strong>in</strong>g cluster munitions, or essential<br />
elements thereof. 620<br />
Van Lanschot’s exclusion policy applies to its commercial bank<strong>in</strong>g, <strong>in</strong>vestment bank<strong>in</strong>g and its own asset<br />
management activities. 621 Van Lanschot <strong>in</strong>structs its external asset managers to comply with the responsible<br />
<strong>in</strong>vestment policy. However, <strong><strong>in</strong>vestments</strong> <strong>in</strong> external passively managed funds, <strong>in</strong>clud<strong>in</strong>g funds that follow<br />
an <strong>in</strong>dex, conta<strong>in</strong><strong>in</strong>g less than 5% of cluster munitions companies are not covered. XXXIX 622 This means that<br />
such funds may still conta<strong>in</strong> the specified percentage of cluster munitions produc<strong>in</strong>g companies.<br />
XXXIX This is <strong>in</strong> l<strong>in</strong>e with the Dutch prohibition on direct and demonstrable <strong><strong>in</strong>vestments</strong>. The prohibition conta<strong>in</strong>s several<br />
exceptions, such as for transactions follow<strong>in</strong>g an <strong>in</strong>dex, when <strong>in</strong>dividual companies that produce, sell, or distribute cluster munitions<br />
account for less than five per cent of the <strong>in</strong>dex. The ban conta<strong>in</strong>s a similar exception for transactions <strong>in</strong> <strong>in</strong>vestment funds managed<br />
by third parties. This means that funds follow<strong>in</strong>g an <strong>in</strong>dex and <strong>in</strong>vestment funds may still conta<strong>in</strong> the specified percentage of cluster<br />
munitions produc<strong>in</strong>g companies. This exception weakens the prohibition, especially s<strong>in</strong>ce companies <strong>in</strong>volved <strong>in</strong> the production of<br />
cluster munitions usually do not represent more than 5% <strong>in</strong> funds that follow an <strong>in</strong>dex or <strong>in</strong>vestment funds.<br />
185