Group exclusions

At Schroders, we apply certain exclusionary criteria in the management of our clients’ assets where this is consistent with the following principles.

We fully support the international conventions on cluster munitions, anti-personnel mines, and chemical and biological weapons. Accordingly, we exclude companies that we identify as being involved in the production, stockpiling, transfer and use of these weapons. These restrictions apply across Schroders managed funds.

Coal is a major contributor to atmospheric greenhouse gas emissions and we believe that companies directly exposed to coal face growing social, political and financial pressures as a result. In order to protect the value of our clients’ investments, we exclude companies that generate more than 20% of their revenues from thermal coal mining. We apply this policy to Schroders managed funds, unless certain exceptions apply, for example in relation to companies with a corporate domicile or primary listing in Indonesia (for which we expect to apply the same criteria from January 2026) and client Portfolios with legacy exposure to thermal coal mining (for which exceptions may be agreed, for example when disposals are impractical or likely to result in client loss).

Our policy in relation to these exclusionary criteria applies to direct investments within relevant actively managed portfolios. It does not apply to portfolios managed by third party investment firms or investments where we do not have discretion over security selection. Where Schroder portfolios invest in or track market indices these exclusion criteria may not apply to the individual securities in those indices.

Individual Schroders managed funds may also exclude certain other securities as part of their investment strategy. If these offerings don’t fit with a client’s requirements, we are happy to discuss other solutions which may include managing to tailored criteria.

Controversial weapons exclusion list (as of April 2024)


Company Name

Country

Aerospace Long-March International Trade Co., Ltd.

China

Aeroteh SA

Romania

Air Weapons Complex

Pakistan

Alcast Pressure Dies Pvt Ltd.

India

American Ordnance LLC

United States of America

Anhui Great Wall Military Industry Co., Ltd.

China

Anhui Military Industry Group Holding

China

Arab Organization for Industrialization (AOI)

Egypt

Aryt Industries

Israel

Ashoka Industries Ltd.

India

Avibrás Indústria Aeroespacial

Brazil

Bharat Dynamics Ltd

India

China Aerospace Science and Industry (CASIC)

China

China Aerospace Science and Technology (CASC)

China

China North Industries Group Corporation Limited (NORINCO)

NB: this company does business internationally as 'China North Industries Corporation (NORINCO)'. In previous years, there has been some confusion over this company featuring multiple times under different names in third party screens: for the record, any references to 'China North Industries Group' or 'China North Industries Corporation' refer to the same company - NORINCO.

China

Compania Nationala ROMARM SA

Romania

Defense Industries Organization

Iran (Islamic Republic of)

Defense Research & Development Organization (DRDO)

India

Electromechanical Ordtech Ltd.

Greece

Global Industrial & Defence Solutions

Pakistan

HANWHA CORP

South Korea

Hanwha Corp (also goes by Hanwha Engineering & Construction Corp.)

South Korea

Hanwha Engineering & Construction Corp. (Hanwha Corporation)

South Korea

Israel Aerospace Industries Ltd.

Israel

Korea Defense Industry Corp.

South Korea

LIG Corp.

South Korea

LIG Nex1

South Korea

Manufacturing Engineering Scientific Industrial Concern OJSC (Tecmash)

Russian Federation

Mechanical and Chemical Industry Corporation (Makina VE Kimya Endustrisi Kurumu Genel Mudurlugu)

Turkey

Mil-spec Industries Corp

United States of America

Motovilikha Plants JSC

Russia

Munitions India Ltd

India

National Development Complex

Pakistan

National Engineering & Scientific Commission (NESCOM)

Pakistan

NATIONAL PRESTO INDUSTRIES, INC.

United States of America

Nityanand Udyog Pvt Ltd.

India

Norinco International Cooperation Ltd.

China

Pakistan Ordnance Factories

Pakistan

Poongsan Corporation

South Korea

POONGSAN HOLDINGS CORPORATION

South Korea

Premier Explosives

India

Rosoboronexport JSC

Russian Federation

Rostec Corp.

Russian Federation

RPA Splav named after A.N. Ganichev JSC

Russian Federation

Sakr Factory for Developed Industries

Egypt

Sichuan Academy of Aerospace Technology

China

Sichuan Aerospace Industrial Group Co., Ltd.

China

SNT DYNAMICS Co., Ltd.

South Korea

SNT Holdings Co., Ltd.

South Korea

Splav State Research

Russia

Synthetic Moulders Ltd.

India

The Day & Zimmermann Group, Inc.

United States of America

The Kaha Company For Chemical Industries

Egypt

Yugoimport-SDPR

Serbia

Important information:

Past performance is no guarantee of future performance. The value of investments and the income from them can go down as well as up, and you (or your clients) might not get back what you originally invested.


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Schroders (Bermuda) Limited is an indirect wholly-owned subsidiary of Schroders plc and is licensed to conduct Investment Business by the Bermuda Monetary Authority.

For illustrative purposes only and does not constitute a recommendation to invest in the above-mentioned security / sector / country.