Thales Corruption Probe Threatens Defense Firm’s ESG Index Spot

Thales SA’s recently-gained place in the top French ESG stock index is at risk due to the bribery and corruption probe at the defense-equipment supplier, according to a Kepler Cheuvreux analyst.

Downgrading his ratings on both Thales and its second-biggest investor, Dassault Aviation SA, analyst Aymeric Poulain noted that the CAC 40 ESG Index excludes companies involved in serious controversies, including corruption. He cut both stocks to hold, ending more than three years at buy.

Bloomberg News has reached out to Thales and index provider Euronext NV for comment. Thales said on Friday that it was cooperating with the ...