Charities, NHS trusts, trade unions and the Labour party are still holding millions of pounds in arms company shares despite pressure to invest ethically, a new report reveals today.

Campaign Against Arms Trade, which conducts an annual survey to find out which organisations hold shares in the UK's biggest arms companies, has found that some of the largest shareholdings come from organisations, including the Co-op, which publicly promotes ethical policies.

Organisations whose holdings are likely to cause embarrassment for their supporters include the Leukaemia Research Fund, a charity with more than 200 research teams. It has 10,000 shares in BAE Systems, Britain's biggest arms company. It manufactures shells tipped with depleted uranium which have been linked to leukeamia and other cancers.

Depleted uranium shells were used by US aircraft in Kosovo and by British and US tanks in the Gulf war.

The Labour party, whose government pledged an ethical dimension to its foreign policy and to work for human rights - and has banned the use of anti-personnel landmines by British troops - has 34,721 shares in BAE Systems.

Publicity surrounding organisations committed to ethical trading and found to have shares in arms companies has led to some disinvestment. The Red Cross was found to have arms trade shares two years ago and has since disinvested. The Church of England has followed the lead of the Catholic Church in getting rid of its shares in arms companies.

A spokesman for the Leukaemia Research Fund said he saw no contradiction in devoting itself to curing leukaemia and investing in a company whose shells are alleged to cause the illness.

"BAE Systems is a respected British company. We need to invest widely and wisely and ensure that we get the best returns for our money. BAE Systems are not responsible for what went on in Kosovo" a spokesman said. The position regarding the Co-op is more complicated. There are several individual societies which the Co-op Group says are separate entities and determine their own ethical policies. The Co-op Group owns the Co-op Insurance Society, one of the biggest shareholders surveyed with 21,375,136 shares in BAE Systems.

But it says CIS is a separate entity despite being owned by the group and makes its own decisions. The Co-op Group holds shares in BAE Systems, Rolls Royce and GKN in their pension fund. It is a matter, they say, for their trustees to determine.

The Labour party's response was similar. A spokesman confirmed that Labour's position on investing in the arms trade had not changed since it was "outed" a year ago. "Our pension fund investments are a matter for the pension fund trustees," he said.

Crest, the new electronic system for holding shares, means they are often held in undesignated nominee accounts so that it is not possible to trace the beneficial owner by inspecting the company register. The law only requires that a custodian is identified and does not require the identity of the beneficial owner be publicly available. The campaign is calling for all shares to be held in designated accounts and for one shareholder to be able to request the identity of another to improve transparency and accountability.

A campaign spokesperson said: "We know that the majority of people in the UK oppose most arms sales and support ethical investment. Despite the annual naming and shaming by CAAT, hundreds of public institutions continue to compromise their own objectives and principles by taking this dirty money."

Charities

Leukemia Research Fund 10,000 shares in BAe Systems
Mencap 58 shares in BAe Systems and 90 shares in Rolls Royce
Nacro 1,000 shares in BAe Systems
Battersea Dogs Home 29,702 shares in BAe Systems, 9,381 shares in BAES Stock, 30,355 shares in GKN
Royal National Institute for Deaf People 1,679 shares in BAe Systems, 530 shares in BAES Stock

Pension funds

Labour party 34,721 shares in BAe Systems
British Rail 24,280,210 shares in BAe Systems, 5,485,345 shares in BAES Stock, 1,226,032 shares in Rolls Royce, 8,865,700 shares in GKN, 325,500 shares in Alvis
Cornwall county council 483,693 shares in BAe Systems, 93,100 shares in GKN
Cumbria county council 419,980 shares in BAe Systems
West Sussex county council 560,176 shares in BAe Systems

Education

Balliol College, Oxford 52,745 shares in BAE Systems,10,657 shares in BAES Stock, 153,227 shares in Rolls Royce, 40,000 shares in GKN
Nuffield College, Oxford 30,015 shares in BAe Systems
University of Manchester superannuation scheme 642,000 shares in BAe Systems
University of Sussex 986 shares in BAe Systems, 311 shares in BAES Stock, 2,020 shares in GKN
East Berkshire College Trust Ltd 1,286 shares in BAe Systems, 406 shares in BAES Stock

Religious

Boys Brigade 6,624 shares in BAe Systems
Dean and Chapter of Christ Church, Oxford 64,500 shares in BAe Systems, 6,771 shares in BAES Stock, 85,400 shares in GKN
Evangelical Trust Ltd 1,384 shares in BAe Systems, 436 shares in BAES Stock
London Central Mosque Trust Ltd 5,025 shares in BAe Systems, 1,587 shares in BAES Stock.
United Reformed Church Trust 37,000 shares in GKN

Miscellaneous

Co-op Insurance Society Ltd (owned by the Co-op Group) 13,798,294 shares in BAe Systems, 2,305,102 shares in BAES Stock, 5,137,521 shares in Rolls Royce, 6,857,486 shares in GKN, 1,327,107 shares in Hunting, 837,263 shares in Cobham, 830,880 shares in Alvis
Colchester & East Essex Co-op Society pension fund 88,882 shares in BAe Systems, 55,768 shares in Rolls Royce
Amalgamated Engineering and Electrical Union general fund 34,000 shares in Rolls Royce, 13,000 shares in GKN, 15,220 shares in Cobham
TUC superannuation society 302,540 shares in BAe Systems
Unison, long term investments 88,248 shares in BAe Systems, 594,557 shares in BAES Stock, 60,500 shares in Rolls Royce, 41,820 shares in GKN

Health

Blackburn, Hyndburn and Ribble Valley Healthcare NHS Trust 3,215 shares in BAe Systems
Bolton Hospice Ltd 9,157 shares in BAe Systems, 365 shares in BAES Stock
British Medical Association staff fund 63,712 shares in BAe Systems
Cancer Research Campaign 81 shares in BAES Stock
Royal College of Pathologists: 29,502 shares in BAe Systems, 6,250 shares in GKN, 3,000 shares in Cobham