This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Daimler AG, through its Mercedes-Benz division, was a central participant in the global diesel emissions cheating scandal. In September 2020, the U.S. Department of Justice, Environmental Protection Agency, and California Air Resources Board reached a $1.5 billion civil settlement with the company for installing illegal "defeat device" software in Mercedes-Benz diesel vehicles sold in the United States. This software caused the vehicles to emit nitrogen oxides (NOx) at levels far exceeding legal limits during normal road operation.
The settlement resolved allegations that Daimler violated the Clean Air Act by selling approximately 250,000 cars and vans that were not certified to comply with U.S. emissions standards. This conduct contributed directly to harmful air pollution. The case followed a 2017 raid by German prosecutors on Daimler sites as part of a fraud probe into diesel exhaust manipulation. The systematic nature of the deception across multiple vehicle models and years constitutes documented environmental damage through the intentional release of excess pollutants.
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The Naughty List
A digest of changes to our exclusion list — new additions, removals, and the evidence behind them. We review the list continuously as new evidence surfaces.
Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
Ethical Capital LLC is a state-registered investment adviser in Utah (CRD #316032). Registration does not imply a certain level of skill or training.