Danske Bank

Danske Bank Group is a Danish financial enterprise, operating in 15 countries mainly in the Nordic region and serving around 3.7 million customers. The group offers banking, insurance, mortgage finance and asset management services to Danish and international customers.[i]

Danske Bank’s 2014 arms policy states: “Although the possession of nuclear weapons is not in conflict with international law, their use would most likely violate the human rights. Therefore, Danske Bank does not invest in producers of nuclear weapons nor in companies that contribute to the production of illegal weapons.”[ii] The policy excludes investment in companies involved in nuclear weapons production, development, maintenance, trade and specifically designed delivery systems.

The exclusion policy applies to all asset classes, including both internally and externally managed funds, and also including passively managed funds. However, “the policy does not apply to funds-of-funds, structured products, individual securities or derivatives, institutional mandates, institutional funds or managed accounts.”[iii]

Danske Bank maintains an exclusion list based on research by Ethix SRI advisors. Danske Bank currently excludes the following companies for involvement with nuclear weapons: Airbus; Alliant Techsystems; General Dynamics; Gencorp[iv]; Lockheed Martin; MOOG; Northrop Grumman; Safran; Serco and United Technologies.[v]

We commend Danske Bank for adopting a public policy on nuclear weapons. We recommend Danske Bank expand the scope of its policy to cover all finanical products, including assets managed. We look forward to engaging Danske Bank, so a strong and comprehensively applied policy may be listed in the Hall of Fame in a future update of this report.

 

Danske Bank's policy on nuclear weapons is leaky! Let's fix it!

Congratulations Dankse Bank!

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Congratulations Danske Bank. I saw on www.dontbankonthebomb.com that you have a policy limiting investments in nuclear weapons. I think it’s really important that you share my concern about these weapons, and I appreciate that there is a public policy.

However, the policy does have some loopholes and the Don’t Bank on the Bomb report shows how you still might invest in nuclear weapons producers. I am concerned about this, because Danske Bank also invests my money and I don’t want to be associated in any way with the production of these inhumane weapons.

It would be great if Danske Bank made the following change to make the policy airtight:
• Expand the scope of the policy to cover all finanical products, including assets managed.

With kind regards,

Or :

Tweet: Even @DanskeBank_DK knows investing in #nuclear weapons should be restricted. Strengthen the policy& say #goodbyenukes! http://ctt.ec/X710N+

Website: Twitter: Facebook:
http://danskebank.dk/en-dk/Personal/Pages/personal.aspx @DanskeBank_DK https://www.facebook.com/DanskeBankDanmark

 

[i]           Danske Bank, “Our Business”, website Danske Bank (http://danskebank.com/en-uk/About-us/Our-business/Pages/Danske-bank-business.aspx), viewed 20 May 2015; Danske Bank, “Our markets” website Danske Bank (http://danskebank.com/en-uk/About-us/Our-business/Pages/our-markets.aspx), viewed 20 May 2015;

[ii]           Danske Bank, “Arms”, 7 May 2014, website Danske Bank (http://danskebank.com/en-uk/CSR/business/SRI/Pages/Arms.aspx), viewed 20 May 2015.

[iii]          Danske Bank, “Responsibility Policy”, 28 November 2014, p.1, available at http://danskebank.com/en-uk/About-us/strategy/policies/Documents/Responsibility_policy_2014.pdf, viewed 19 June 2015.

[iv]          GenCorp renamed itself in 2015 and is now known as Aerojet Rocketdyne.

[v]           Danske Bank, “Excluded Companies”, 25 March 2015, website Danske Bank (http://danskebank.com/en-uk/CSR/business/SRI/Pages/exclusionlist.aspx), viewed 20 May 2015.

Who divests?

Policy Research

The financial institutions presented all have publicly available policies – or summaries thereof – excluding investments in nuclear weapons producing companies. Since the banking group usually sets the investment policy and since the group directly or indirectly supervises its subsidiaries, we research the group policy only.

The Hall of Fame section highlights financial institutions that have comprehensive policies preventing investments in nuclear weapon producers. These policies meet all of the criteria.
The Runners-Up provides information on existing policies and makes recommendations for how to strengthen them.

Criteria:

Hall of Fame finanical institution policies policy must:

1. Exclude all nuclear weapon associated companies

The policy excludes:

  • whole companies not only nuclear weapons related projects
  • companies associated with nuclear weapons including through joint ventures
  • companies regardless of their country of origin
  • companies regardless their country of operation

2. Exclude all nuclear weapon associated activities

The policy excludes companies associated with:

  • development, testing, production, maintenance or trade of nuclear weapons related technology, parts, products or services, and;
  • delivery systems such as missiles, that are specifically developed for nuclear tasks. This includes technology that is designed for ‘dual use’ (military and civilian) but excludes technology that is not designed for, but can be used in nuclear warfare. It does not include delivery platforms such as bombers and submarines.

3. Apply to all the institution’s products and services

The institution applies the policy:

  • for the entire Group, including subsidiaries
  • in all markets
  • to all asset management classes – passive and active, internal and external.
  • to all existing and future investments.

The financial institutions in the Hall of Fame have not engaged in any financial relationships with any of the nuclear weapon associated companies listed in this report. The policies of over 80 financial institutions were analysed for this report.

Runners-Up are financial institutions whose nuclear weapons policy does not meet all of the above criteria .

Methodology

To identify financial institutions with a policy on nuclear weapons, we research a variety of sources: NGO reports, screening-agency information, financial institution reports and websites, information from campaigners and other public sources. For practical reasons, the scope of this report is limited to those financial institutions that have an investment policy or a summary of that policy in English. The list of institutions in the Hall of Fame is not exhaustive. We welcome additions from those able to provide them.

For the purposes of this report, nuclear weapon producers are defined as companies that produce key components to test, develop, maintain, modernise and deploy nuclear weapons. There are countless companies involved in the broad nuclear weapons complex, and this report only details those most heavily involved in the production and maintenance of nuclear warheads and their delivery systems (such as missiles and launch tubes). The report does not include companies involved in the production of delivery platforms (such as nuclear capable bombers and submarines).

In advance of this report, all financial institutions were asked to fill in a standardised questionnaire with detailed questions on the scope and content of their policies. Financial institutions that did not respond are not included. Of the thirteen financial institutions listed in the Hall of Fame, six publish a list of companies that they exclude from their investment universe. The companies excluded are listed in the profiles of the financial institutions as a resource. Three other financial institutions in the Hall of Fame work with an inclusion list rather than an exclusion list. The remaining four do not make their lists public.

Each financial institution profile in the Hall of Fame includes a brief description of the institution, a summary of key policy elements, and the exclusion list if applicable. We researched investments in companies on our producers list for each of the financial institutions listed in the Hall of Fame. None of the financial institutions listed in the Hall of Fame invest in any of the 26 identified nuclear weapon producers.