Armaments Investments


Issue 140

Last updated: February 2013

 

 

Armament Investments

 

The International Campaign to Abolish Nuclear Weapons (ICAN) published the report ‘Don’t Bank on the Bomb: A Global Report on the Financing of Nuclear Weapons Producers’.
 

nuclear bomb

 

The research argued that "by lending money to nuclear weapons companies, and purchasing their shares and bonds, banks and other financial institutions are indirectly facilitating the build-up and modernization of nuclear forces, thereby heightening the risk that one day these ultimate weapons of terror will be used again."

ICAN is calling for a co-ordinated global campaign for nuclear weapons divestment. The report listed 322 financial institutions it described as "being substantively involved in financing 20 major nuclear weapons producers".

According to the report, the insurance companies most heavily involved in financing nuclear arms makers include Allianz, Lloyds Banking and Royal Bank of Scotland.
 

 

Who invests in whom

 

Below we list the underwriters covered in the insurance buyers guides and their investments in nuclear weapons companies.

  • Allianz has shares in Alliant Techsystems, BAE Systems, Boeing, Lockheed Martin, Northrop Grumman, Safran and Serco. The bank was also reported to have bonds with Alliant Techsystems, BAE Systems, General Dynamics, Honeywell International Lockheed Martin, Northrop Grumman and Safran.
  • Royal Bank of Scotland had shares in Redhall Group. RBS also had bonds in Alliant Techsystems. Furthermore, RBS had provided bank loans to Alliant Techsystems, Babcock International, BAE Systems, Bechtel, Boeing, EADS, Finmeccanica, General Dynamics, Honeywell International, Northrop Grumman, Rolls-Royce, Safran, Serco Group and Thales. Finally, RBS had bond issues with Alliant Techsystems, Boeing, EADS, Finmeccanica, General Dynamics, Honeywell International, Lockheed Martin, Northrop Grumman, Rolls-Royce, Safran and Thales.
  • Lloyds Banking Group has shares in Babcock International, BAE Systems, Rolls-Royce and Serco Group. The company had also made bank loans to Babcock International, BAE Systems, Bechtel, Boeing, EADS, General Dynamics, Lockheed Martin, Rolls-Royce and Serco Group. Finally, the company had bond issues with Boeing, General Dynamics and Lockheed Martin.
  • Aviva has shares in Babcock International and BAE Systems, and bonds in BAE Systems, Boeing, Gencorp, Honeywell International, Lockheed Martin, Northrop Grumman.
  • AXA has shares in Babcock & Wilson, BAE Systems, Northrop Grumman, Rolls-Royce and Serco Group. Also the firm was reported to have bonds with Alliant Techsystems, Boeing, Honeywell International and Northrop Grumman.
  • AIG has bonds in BAE Systems, Boeing, Finmeccanica, Honeywell International, Lockheed Martin and Northrop Grumman.
  • Munich Re had bonds with BAE Systems.
  • Legal & General has shares in Babcock International, BAE Systems, Rolls-Royce and Serco Group.
  • NFU holds shares in Babcock International.
  • The Co-operative Group was reported as owning or managing shares in Serco Group and owning or managing bonds from Rolls-Royce.

 

 

Other armaments investments

 

Onex owns Hawker Beechcraft which is the sole source to the US Air Force and US Navy of the world’s best-selling primary military trainer aircraft, the T-6.(11)

The Royal Bank of Scotland also sent delegates to a 2011 conference promoting weapons sales to Saudi Arabia, the UAE, Bahrain and Oman, regimes frequently accused of human rights abuses.(12)

According to our investments research, the following companies also have investments in companies that have been criticised in our Arms & Military Supply category: Ecclesiastical, ACE, Liverpool Victoria, Zurich and RSA.

 


 

 

 

 

 

Product Guides

cars

Car Insurance

What to buy and what to avoid. Ethical ratings and Best Buys covering nearly 100 underwriters in four different markets. 

 

Read More


   

 

Ethical made easy

Detailed ethical ratings for over 40,000 companies, brands and products, plus Ethical Consumer magazine.

30 day trial subscription - find out more