Thales
THLLY
Industrials
2
exclusion reasons
2 themes
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.
Thales is a French multinational defense and aerospace company whose electronic components have been documented in Russian military equipment used in the invasion of Ukraine. In 2023, Reuters reported that Thales-made thermal imaging cameras were found in Russian Orlan-10 drones recovered on the battlefield. The company stated it had stopped deliveries to Russia after the 2014 annexation of Crimea and that these components may have been diverted through third countries. This pattern of its specialized technology appearing in weapons systems used in an active conflict zone demonstrates material support to a belligerent party. The presence of its components in Russian drones, which are used for reconnaissance and artillery targeting in Ukraine, directly sustains armed conflict operations.
Thales derives approximately 53% of its total revenue from arms sales, totaling $15.9 billion in 2024 according to SIPRI data. The company is consistently ranked among the world's top 20 arms producers, specializing in defense electronics, aerospace systems, and military communications. Its product portfolio includes radar systems, sonar, optronics, and command-and-control systems integral to modern weapons platforms.
SIPRI's 2025 report lists Thales as the 10th largest arms-producing company globally, with defense revenues increasing by 11.3% in 2023. The company partners with other major defense contractors on specific weapons systems and holds significant Pentagon contracts, including one valued at over $207 million according to 2022 U.S. government data. Thales develops specialized military technology where the primary application is warfare, meeting the exclusion threshold for companies whose core business materially supports the war-industrial complex.
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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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