Russia's invasion of Ukraine and increased global tensions in recent years have significantly altered the geopolitical security environment.
To ensure that its negative screening principles are compatible with the current environment, OP Asset Management has updated its screening criteria for defence industry companies. From now on, OP Asset Management may invest in nuclear weapons components and support services if the registered office of the company is in an EEA or NATO member country.
"We exclude companies involved in the manufacture of weapons banned by international conventions from our active direct investments. This means companies involved in the marketing, development or manufacturing of anti-personnel landmines, cluster munitions, chemical or biological weapons or nuclear weapons which are banned by international conventions. The updated negative screening criteria do not exclude nuclear weapons components or support services related to nuclear weapons in EEA and NATO countries," says Annika Esono Manninen, Head of ESG at OP Asset Management.
Growing defence budgets in the European Union and NATO and general preparedness for crises make the defence sector a strategically important and politically supported investment.
"Security is the foundation of a functioning society. Investing in defence can help uphold democratic values and combat authoritarian threats in a world where conflicts are becoming increasingly common. Investing in the defence industry also encourages innovation. Military technology is speeding up development in fields such as artificial intelligence, cybersecurity and quantum engineering," says Esono Manninen.
You can read more about our principles for responsible investment at: Responsible investing | OP