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.
Kawasaki Heavy Industries is a major Japanese defense contractor specializing in military aerospace and maritime systems. According to SIPRI, the company generated $2.65 billion in arms sales in 2024, representing approximately 19% of its total revenue. This exceeds the 15% materiality threshold for military contracting exclusions. Its primary military products include the C-2 military transport aircraft, P-1 maritime patrol aircraft, and submarines for the Japan Maritime Self-Defense Force.
In December 2025, Japan's Ministry of Defense announced plans to temporarily bar Kawasaki Heavy Industries from bidding on new contracts following an investigation into submarine repairs and marine engines. The ministry cited serious contractual violations, though it stated submarine safety was not compromised. This followed a 2024 scandal that exposed systematic collusion between the company and the Maritime Self-Defense Force, highlighting deeply embedded structural issues in the procurement relationship.
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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.
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