Keysight Technologies | Customer due diligence at Keysight Technologies

AGM date
Previous AGM date
Resolution details
Company ticker
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Conflict and/or violence
Type of vote
Shareholder proposal
Filer type
Company sector
Company HQ country
United States
Resolved clause
RESOLVED: Shareholders request that the Board of Directors commission an independent third-party report, at reasonable expense and excluding proprietary information, on Keysight Technologies’ (Keysight) customer due diligence process to determine whether customers’ use of its products or services with surveillance technology and warfare simulation capability contributes to human rights harms. 
Whereas clause
Keysight’s Human Rights and Labor Policy states that the company is required to, “promote human rights within the company’s sphere of influence”;[1]
Human rights risks are acute in conflict-affected and high-risk areas (CAHRA), characterized by widespread human rights abuses and violations of national or international law.[2]  Certain CAHRA (e.g., China, Myanmar, Russia) are subject to arms controls and sanctions, demonstrating the United States government’s concern over risks to national security, international peace, and human rights.
Keysight has provided/is providing products and services to customers in CAHRA that are contributing to human rights harms, including:
Provided software, which can be used to model electronic warfare scenarios, to China and Russia, in violation of the United States International Traffic in Arms Regulations.[3] Russia unlawfully invaded Ukraine in February 2022 and currently occupies Ukrainian, Moldovan, and Georgian territory, while China is engaged in potentially unlawful military behavior in the South China Sea.Partnering with China Mobile, which has been used to surveil private users and led the Federal Communications Commission to block the company’s services in the United States based on surveillance risks to U.S. citizens.[4]Provided internet trafficking analytical tools to Russia, which are being used as part of its state surveillance system (SORM). SORM is also used to reroute Ukrainian internet traffic and surveil citizens.[5][6]Accused by Burmese civil society of providing the Myanmar Army’s Directorate of Signals (DoS) with technology to be used in electronic warfare.[7] The Department of Commerce imposed additional restrictions on goods or services provided to DoS following the military’s February 2021 coup.[8] Keysight’s activities in CAHRA may result in heightened human rights and material risks through violations of the UN Guiding Principles on Business and Human Rights, Keysight’s Human Rights and Labor Policy, United States’ laws and sanctions, and by contributing to China’s, Russia’s, and Myanmar's violations of human rights and humanitarian law. Policymakers have responded to these violations with sanctions and export controls against Russia[9], China[10], and Myanmar[11]; 
To mitigate risks associated with customer conduct, leading companies conduct “Know Your Customer” (KYC) due diligence. The process helps determine if a company’s products and services may be used to facilitate human rights harms. In November 2021, the Atlantic Council recommended the United States and NATO develop KYC policies for companies in the surveillance industry.[12] 
Supporting statement
Shareholders seek information, at board and management discretion, through a report that:
Discusses how human rights risks in CAHRA are identified, assessed, prevented, and mitigated; andAssesses if a KYC due diligence process is needed to address these risks.[1]
[8] .
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