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, track or otherwise gain exposure to market indices, these exclusionary 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 2025)
Company Name | Country |
Anhui Great Wall Military Industry Co., Ltd. | China |
Anhui Military Industry Group Holding | China |
Aryt Industries | Israel |
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 MSCI screens: for the record, any references to 'China North Industries Group' or 'China North Industries Corporation' refer to the same company - NORINCO. | China |
LIG Nex1 | South Korea |
Mechanical and Chemical Industry Corporation (Makina VE Kimya Endustrisi Kurumu Genel Mudurlugu) | Turkey |
Motovilikha Plants JSC | Russia |
Munitions India Ltd | India |
NATIONAL PRESTO INDUSTRIES, INC. | United States of America |
Norinco International Cooperation Ltd. | China |
Poongsan Corporation | South Korea |
POONGSAN HOLDINGS CORPORATION | South Korea |
Premier Explosives | India |
Sichuan Academy of Aerospace Technology | China |
SNT DYNAMICS Co., Ltd. | South Korea |
SNT Holdings Co., Ltd. | South Korea |
Splav State Research | Russia |