Nordea

Nordea is the largest financial services group in northern Europe. It offers private, retail, corporate, and institutional banking products, as well as life and pension products. Nordea serves approximately 10 million households and around 0.5 million corporate customers.[i]

Nordea excludes companies that contribute to the development or manufacture of new nuclear weapon programs, including delivery systems that are specifically designed for nuclear weapons[ii], in line with Nordea’s 2010 policy on illegal weapons.[iii] Nordea’s policy does not exclude companies that are involved in the trade of already developed nuclear weapons. Companies that contribute to the maintenance of new nuclear weapon programs are also not excluded.[iv]

Nordea’s exclusion policy applies to all asset management activities, except for discretionary mandates and its passively managed funds.[v] External asset managers are encouraged to implement Nordea’s Policy for Responsible Investment. [vi] Nordea does not apply the exclusion policy to its commercial banking activities[vii], nor to its investment banking activities.[viii]

Nordea’s exclusion list currently contains 11 companies for involvement with nuclear weapons: Airbus; Areva; Babcock International; BAE Systems; Boeing; CNIM; EADS[ix]; Finmeccanica; General Dynamics; Hanwha; Huntington Ingalls; Lockheed Martin; Northrop Grumman; Rolls-Royce; Safran; Thales and United Technologies.[x] The exclusion list is based on the findings of data provider Ethix SRI Advisors.[xi]

We commend Nordea for adopting a public policy on nuclear weapons. We recommend Nordea strengthen its policy to cover all nuclear weapons producing companies including those involved in nuclear weapon maintenance and modernisation. Furthermore, the policy should apply to all of Nordea’s financial products including commercial banking and investment banking activities, passively managed funds and external asset managers. We look forward to engaging with Nordea, so a strong and comprehensively applied policy may be listed in the Hall of Fame in a future update of this report.

 

 

Nordea's policy on nuclear weapons is leaky. Tell them to fix it!

Congratulations Nordea!

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Congratulations Nordea. 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 Nordea 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 Nordea made the following changes to make the policy airtight:
• Cover all nuclear weapons producing companies including those involved in nuclear weapon maintenance and modernisation;
• Apply the policy to all of Nordea’s financial products including commercial banking and investment banking activities, passively managed funds and external asset managers.

With kind regards,

Or :

Tweet: Even @Nordea knows investing in #nuclear weapons should be restricted. Strengthen the policy & say #goodbyenukes. http://ctt.ec/cO4wy+

 

Website: Twitter: Facebook:
www.nordea.com/ @Nordea https://www.facebook.com/Nordea

 

[i]           Nordea, “Our Customers”, website Nordea (http://www.nordea.com/en/about-nordea/who-we-serve/our-customers/index.html), viewed 17 June 2015.

[ii]           Nordea, “Responsible Investments & Identity. Annual Report 2012”, p.13, available at http://www.nordea.com/sitemod/upload/root/www.nordea.com%20-%20uk/aboutnordea/csr/RIG_Annual_2013_final_web.pdf, viewed 11 May 2015; Nordea, written response to Profundo dated 25 June 2014.

[iii]          Nordea, “Responsible Investments & Identity. Annual Report 2012”, p.13, available at http://www.nordea.com/sitemod/upload/root/www.nordea.com%20-%20uk/aboutnordea/csr/RIG_Annual_2013_final_web.pdf, viewed 11 May 2015.

[iv]          Nordea, written response to Pax dated 2 September 2013; Nordea, written response to Profundo dated 25 June 2014.

[v]           Nordea, written response to PAX dated May 6, 2015.

[vi]          Nordea, written response to Pax dated 26 August 2013.

[vii]          Nordea, written response to Pax dated 26 August 2013.

[viii]         Nordea, written response to Profundo dated 27 June 2014.

[ix]          EADS renamed itself in 2014 and is now known as Airbus Group.

[x]           Nordea, “Responsible Investment Report 2014”, p.9, available at http://www.nordea.com/Images/33-50580/Nordea_RII_Annual_Report_2014.pdf, viewed 17 June 2015.

[xi]          Nordea, “Responsible Investment Report 2014 ”, p.9, available at http://www.nordea.com/Images/33-50580/Nordea_RII_Annual_Report_2014.pdf, viewed 11 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.