CIG members contacted Reed Elsevier, the educational publisher, over mounting concerns at the reputational consequences of its continuing to own a defence exhibitions business.
Although a very small part of Reed’s business interests, the portfolio of several leading international arms fairs was having a disproportionate effect on the Group’s reputation, not least from among its own publications, such as The Lancet, which mounted a vociferous campaign for the business to be sold.
CIG, alongside other responsible investors, wrote to the company questioning the rationale for owning the business given its main interests and activities are educational, medical and humanitarian.
In June 2007, the company announced it would withdraw from the defence exhibitions sector when current obligations had been completed, citing investor concerns as one of the reasons. CIG welcomed the decision.