Skandinaviska Enskilda Banken (SEB) is a Swedish corporate and investment bank operating in the Nordic and countries, serving large global corporations and financial institutions with corporate banking, trading and capital markets and global transaction services. SEB also serves about 4 million individual customers in Sweden and the Baltic countries.[1] At the end of 2017, SEB managed over SEK 950 billion (€96 billion) in assets.[2]
SEB revised its Arms and Defence Sector Policy in August 2014.[3] The policy states: “SEB considers nuclear weapons to be controversial weapons as they are indiscriminate and the use would generally be unlawful under international humanitarian law. In addition, although certain countries are allowed to hold and maintain nuclear weapons according to the Nuclear Non-Proliferation Treaty of 1968, all parties have committed to nuclear disarmament. Therefore, SEB does not finance nuclear weapons, nor does SEB finance or invest in companies involved in nuclear weapons programmes.”[4]
SEB’s new policy covers maintenance and specifically designed delivery systems[5] but is not applied to existing customers who are involved in nuclear weapons related activities through subsidiaries or joint ventures, provided that the company promises that SEB funds will not be used for nuclear weapons related activities.[6]
The exclusion policy applies to all assets managed by SEB, except for discretionary mandates. External asset managers have to comply with SEB’s exclusion policy, but an exception is made for externally managed active funds not carrying the SEB name.[7]
SEB’s exclusion list is based on the findings of data provider Ethix SRI Advisors.[8] As of 22 December 2017, the companies excluded for their involvement with nuclear weapons are: Aerojet Rocketdyne Holding; Airbus; Babcock International; BWX Technologies; BAE Systems; Boeing; CACI International; China Shipbuilding Industry; Constructions Industrielles de la Mediterranee – CNIM; Leonardo; General Dynamics; Huntington Ingalls Industries; Jacobs Engineering; Larsen & Toubro; Lockheed Martin; Northrop Grumman; Premier Explosives; Raytheon; Rolls-Royce Holdings; Safran; Tata Power; Thales; United Technologies and Walchandnagar Industries. [9]
SEB was also found to have several investments in nuclear weapon producing companies identified by this report, more information can be found in the Hall of Shame.
We commend SEB for adopting a public policy on nuclear weapons. We recommend SEB apply the policy to existing contracts and to all financial products including discretionary mandates and externally managed funds. We look forward to engaging with SEB, so a strong and comprehensively applied policy may be listed in the Hall of Fame in a future update of this report.
[1] SEB, “Our Customers”, website SEB (http://sebgroup.com/about-seb/who-we-are/our-customers), viewed 23 January 2018.
[2] SEB, “PRI reporting framework 2017”, available at https://reporting.unpri.org/surveys/PRI-reporting-framework-2017/82D7BC66-E695-41B7-8691-05522A7AA48A/79894dbc337a40828d895f9402aa63de/html/2/?lang=English&a=1, viewed 23 January 2018.
[3]SEB, “Arms and Defence sector policy”, 20 Augustus 2014, p.2, available at http://sebgroup.com/siteassets/about_seb1/sustainability/sustainability_governance/policies/sector_policy_arms_and_defence.pdf, viewed 23 January 2018.
[4] SEB, “Arms and Defence sector policy”, 20 Augustus 2014, p.3, available at http://sebgroup.com/siteassets/about_seb1/sustainability/sustainability_governance/policies/sector_policy_arms_and_defence.pdf, viewed 23 January 2018.
[5] SEB, Correspondence with PAX dated 8 May 2015.
[6] SEB, “Arms and Defence sector policy”, 20 Augustus 2014, p.3, available at http://sebgroup.com/siteassets/about_seb1/sustainability/sustainability_governance/policies/sector_policy_arms_and_defence.pdf, viewed 23 January 2018.
[7] SEB, Correspondence with PAX dated 8 May 2015.
[8] SEB, Correspondence with PAX dated 8 May 2015.
[9] SEB, “Exclusion: core criteria”, available at https://sebgroup.com/contentassets/cc6bb0156d9a4717813f6e20e85b363c/exclusion_sebimab_corecriteria_december2017.pdf, viewed 23 January 2018.
Last updated March 2018