Europe's largest defence company came under fire yesterday after it emerged that it is working on "environmentally friendly" munitions, including lead-free bullets.

The Campaign Against Arms Trade described the policies of BAE Systems as a "laughable" attempt to make the company appear ethical.

But BAE Systems said it was not embarrassed about its efforts to protect the environment or by a statement on its website that "lead used in ammunition can harm the environment and pose a risk to people".

The firm's director of corporate social responsibility, Dr Debbie Allen, said that although it may seem strange to have a "green" policy for munitions, it was important to consider their environmental impact.

"Weapons are going to be used and, when they are, we try to make them safe for the user, to limit the collateral damage and to impact as little as possible on the environment."

Symon Hill, of the Campaign Against Arms Trade, said: "BAE is determined to try to make itself look ethical, but they make weapons to kill people and it's ridiculous to suggest they are environmentally friendly."

A spokesman for BAE Systems said the firm had a clear policy governing efforts to safeguard the environment.