ISS ESG Controversial Weapon Research Data (identify companies involved in illegal weapons)

Controversial Weapons Research is a well-established analysis methodology that helps investors make decisions regarding companies directly or indirectly involved in the development, production, maintenance or sale of weapons that are illegal—as their production and use is prohibited by international legal instruments—or deemed particularly controversial because of their indiscriminate effects and the disproportionate harm they cause. Specifically, ISS ESG’s service identifies and assesses corporate involvement the following: • Biological weapons • Chemical weapons • Anti-personnel mines • Cluster munitions • Incendiary weapons • White phosphorus weapons • Depleted uranium ammunition and armour • Nuclear weapons programmes in recognized nuclear-weapon states (United States, Russia, United Kingdom, France, and China) • Nuclear weapons programmes outside the Non-Proliferation Treaty (“NPT”), i.e. in countries other than the five recognized nuclear-weapon states, regardless of company domicile Controversial Weapons Research is conducted through a structured process carried out by ISS ESG’s professional team of analysts with expertise in military technologies, arms industry structures and international humanitarian law. The analysis results are categorized according to a traffic-light system reflecting degree of involvement and are updated on a continuous basis with new information. The Controversial Weapons Research service covers approximately 26,000 issuers. ISS ESG conducts a comprehensive, systematic review of open sources such as company publications, contract award notifications by government authorities, military specialized magazines and publications by research organizations and non-governmental organizations. Active company and stakeholder dialogues are also a key component of the research process. ISS ESG engages in a fact-finding dialogue with companies as soon as research is initiated and offers companies an opportunity to review the analysis and submit relevant complementary documentation. This dialogue continues for as long as ISS ESG maintains its assessment on the company. ISS ESG also consults with experts and field specialists (commonly representatives of state institutions, inter-governmental organizations, academia, NGOs) to cross-check information and deepen the understanding of benchmark corporate practices. Data is used by a broad range of institutional investors, asset managers, asset owners, fund managers, banks, government institutions, universities and research firms. The key attributes that differentiates this data are the granular flagging and scoring system. Controversial Weapons Research findings are categorized by traffic light signals based on status and level of involvement and verification and given a numeric score to provide additional granularity based on type of activity and ownership.