Ethical screening on controversial weapons - Oct 2017

1. OCTOBER 2017
ETHICAL SCREENING
ON CONTROVERSIAL WEAPONS

2. Solaron Sustainability Services - Confidential report2
Disclaimer
Solaron Sustainability Services does not under-
take to advise you of changes in the information
contained in this report, unless explicitly men-
tioned in the contract. These materials have
been prepared solely for informational purposes
based upon information generally available to
the public as well as our on the ground research
from sources believed to be reliable. This report
has been prepared on a Best effort basis. While
we make a significant effort to get accurate in-
formation, it is certainly possible to miss certain
elements of a Company’s true sustainability
information, due to limitations in talking to all
possible stakeholders exhaustively. Besides, this
information changes with changing market con-
text. Therefore, Solaron Sustainability Services
makes no representation with respect to the
accuracy or completeness of these materials,
the content of which may change without notice
based on market and other conditions. Solaron
Sustainability Services disclaims any and all li-
ability relating to these materials and makes no
express or implied representations or warranties
concerning the accuracy or completeness of the
report. Solaron Sustainability Services accepts
no liability for financial prejudice allegedly re-
sulting from inaccuracy of assessments or data
or from the misinterpretation of their scope.
ABOUT SOLARON
Solaron is an independent ESG Research and Ratings agency that specializes in assessing Emerging Market Risk
and Opportunity exposure of Global Institutional Investors.
We analyze the ESG performance of large listed companies that have supply chain and consumer market exposure in
emerging markets. We also analyze local emerging market companies that are of interest to Institutional Investors.
We serve investors with ESG data, analysis, ratings and actionable insights for specific companies and portfolio
wide exposure.
Solaron is a pioneer in Emerging Markets ESG research and has built a track record of highlighting hidden risks
across portfolios. To date USD 100billion of ESG risks have been identified by us, ahead of time, helping create
unique and significant value for our institutional clients. We are proud to be the first ESG rating and research
agency to bring primary research to the ESG industry. Solaron’s proprietary Stakeholder Input Process brings
key insights from local and stakeholder research to source and validate unique risks that are usually hidden in
secondary data.
Since 2007, we have supported the ESG industry with 350,000+ hours of primary and secondary research. We
employ the world’s largest on-the-ground team of 60 analysts tracking local risks across the globe with a special
focus on emerging markets.
Location of Solaron analysts
Solaron Europe
Tweede Weteringdwarsstraat 12 H,
1017SW, NH, Netherlands
Phone: +31 6 8390 3583
sales@solaron.in
www.solaronworld.com
Solaron U.S.A.
2600 El Camino Real, Suite 415, Palo
Alto, CA 94306, United States
Phone number: +1 818 462 4362
sales@solaron.in
www.solaronworld.com
Solaron India
No. 766, 8th Main, 3rd
Block,
Koramangala, Bangalore 560034,
India. Phone: +91 80 4120 3449
sales@solaron.in
www.solaronworld.com

3. Solaron Sustainability Services - Confidential report3
Involvement in ‘Controversial Weapon’
SN. NAME TYPE SECTOR COUNTRY
Direct
Involve-
ment
Indirect
Involve-
ment
Details of the involvement
Revenue
% (where
available /
applicable)
Date of
Assessment
1 Accenture Company
Support
Services
United States
of America
No Yes
Through its subsidiary, Accenture Federal Services,
the company is helping the military decision makers
from Army, Navy and Marine Corps, Air Force,
Defence Agencies and Intelligence Communities to
optimize resources from the front lines to the back
office. The company claims to bring the innovative
solutions that dramatically improve operational
performance. Its professionals also provide the
military and supporting civilian workforces with the
strategic thinking and skills they need to successfully
perform their mission.
NA May-2017
2
Brimstone Site
Investigation
Small or
Medium-sized
Enterprise
Aerospace
& Defense
United
Kingdom
No No NA NA Oct-2017
3 BT Group plc Company
Fixed Line
Tele-com-
munica-
tions
United
Kingdom
No Yes
The Defence Fixed Telecommunications Service
(DFTS) Agreement between BT and the Ministry of
Defence (MOD) created a single multi-service plat-
form. It replaced 19 separate legacy networks serving
the Royal Navy, the British Army, The Royal Air Force,
and the MoD itself. Signed in 1997, the Agreement
has been extended twice and will run till 2015. BT
states that it has introduced service innovations
that make Britain’s Armed Forces more agile and
efficient, while meeting the most stringent security
requirements anywhere in the world.
NA Dec-2016

4. Solaron Sustainability Services - Confidential report4
4 Citi Group Company Banks
United States
of America
No Yes
Don’t Bank on the Bomb’s 2016 report informs that
Citigroup offered USD 304 million in corporate loans
to nuclear weapon producers, including Aecom and
Aerojet Rocketdyne. Other USD 12,685 million have
been offered as revolving credit facilities to the
defence industry manufacturers Aerojet Rocketdyne,
BAE System, Bechtel, Boeing and Airbus Group.
Citigroup’s total bond and share issued to nuclear
weapons producers reached USD 4,532 million in
2016. In 2015, Citigroup invested a total of USD
14,449 million in nuclear weapons’ producers.
NA Aug-2017
5
Computacen-
ter Group
Company
Software &
Computer
Services
United
Kingdom
No Yes
Computacenter provides IT infrastructure services
and solutions as IT asset management, international
call centre, and IT application services for the
Regional and Central Government, including Ministry
of Defence.
NA Jul-2017
6 DS Smith Plc Company
General
Industrials
United
Kingdom
No No NA NA Jun-2017
7
eCompany-
Store
Small or
Medium-sized
Enterprise
Diversified
United States
of America
No No NA NA Oct-2017
8
General
Electric
Company
Company
General
Industrials
United States
of America
No Yes
“GE sells military products and services either directly
to the US Department of Defence or to a foreign
government’s military agency, or indirectly to the US
Department of Defence and foreign militaries via
another commercial entity. GE’s military products
consist of components or subsystems of primary sys-
tems, including engines and propellers for propulsion
of military aircraft and engines for military vessels;
flight actuation, flight control, and mission and flight
management systems for military aircraft; power
generation, distribution and conversion for military
aircraft and vessels; aero structures for military
aircraft; gears and other transmission components
for military aircraft and vessels; and non-explosive
components and parts for weapons systems.
NA Sep-2017

5. Solaron Sustainability Services - Confidential report5
9
Lloyds
Banking Group
Company
Financial
Services
United
Kingdom
No Yes
The 2016 report “Don’t Bank on the Bomb” states
that Lloyds Banking Group made USD 2,092 million
available to the nuclear weapons producers mainly
through revolving credit. This is in spite of the group’s
policy which states that the bank does not finance
or invest in companies that are in breach of the
Convention on Cluster Munitions. The policy applies
to the commercial banking and investment banking
activities, as well as Lloyds Banking Group’s own
investments, including actively managed funds and
passively managed funds.
NA Dec-2016
10 Plasson UK
Small or
Medium-sized
Enterprise
General
Industrials
United
Kingdom
No No NA NA Oct-2017
11
Royal Bank of
Scotland
Company
Financial
Services
United
Kingdom
No Yes
Over the last four years RBS has lent USD 4.5 billion
to 16 major companies involved in nuclear weapons in
the UK, the US, France and India. The list of compa-
nies includes BAE Systems, Lockheed Martin, Jacobs
Engineering and Serco. For instance, RBS made
available a GBP 27 million loan to Larsen & Toubro,
which develops the launcher system for India’s Akash
nuclear missiles.
NA Dec-2016
12
Standard
Chartered
Bank
Company
Financial
Services
United
Kingdom
No Yes
Standard Chartered’s Defence Goods – Policy Sum-
mary states that Standard Chartered “will not under
any circumstances support the manufacture or distri-
bution of any weapons or munitions including cluster
munitions.” According to Standard Chartered, this
means that it excludes companies that are involved
in cluster munitions. However, Standard Chartered
was also found to have several investments in nuclear
weapon producing companies as identified by “Don’t
Bank on the Bomb” 2016 report.
NA Dec-2016