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#Banks and financial institutions profiting from #weapons
By Clare Carlile
Friday 7th of April 2023
High street banks are funding some of the world’s most notorious #ArmsCompanies. We look at which banks are involved and what consumers can do. We also look at the wider financial industry and its links with #NuclearWeapons in particular.
How are banks financing the arms industry?
"Banks are behind almost every industry in the world, through their loans, insurance and other kinds of financing, including the arms industry.
"By funding arms companies, banks allow them to grow and innovate – developing new forms of #lethal weapons.
"In fact, banks are behind companies involved in the very worst forms of arms, such as nuclear weapons and #ClusterMunitions, despite the latter being banned by 120 countries.
"Unsurprisingly, arms companies are not generally picky about who they sell weapons to. This means that if a bank is funding an arms company, it may well be one that is selling to oppressive regimes.
Which banks are involved in financing arms companies?
"Unfortunately, many banks still finance arms companies.
"While some have said they will not fund the most destructive weapons, lots fall far short of refusing funding to arms companies altogether. And it is not just banks that are involved in the global arms trade. Lots of other financial institutions, such as investors, are also involved.
"Over three quarters of the brands included in our ethical current accounts guide lost half a mark under Arms & Military supply for their investments. This included all the five major high street banks: #Barclays, #HSBC, #Lloyds, #NatWest and #Santander.
"Banks such as Barclays, Lloyds, NatWest, Santander and #Citigroup, and other financial institutions such as #Aviva and #OldMutual have been named in relation to funding cluster munitions, nuclear weapons on the sale of arms to #Yemen.
What weapons are banks funding?
Banks funding cluster munitions
“Cluster munitions are indiscriminate weapons that pose a serious threat to civilian populations during and long after an attack. They spread dozens, or even hundreds, of bomblets called submunitions over an area the size of a football stadium or even more. On impact cluster munitions kill or maim anyone that is in that area. Also, many submunitions fail to explode on impact: they remain on the ground like landmines that kill and injure civilians long after the conflict has ended.'
"120 countries have signed a Convention that that bans the use, production, stockpiling and transfer of #ClusterBombs.
"Yet, in 2018, the Cluster Munition Coalition found that financial institutions had invested almost $9 billion in companies producing cluster munitions. Citigroup and Old Mutual were both found to invest in companies involved.
"Amongst the banks named in the report, Triodos, Co-operative Bank and Royal Bank of Scotland were all praised for having divestment policies in place.
"However, Aviva, Axa, Deutsche Bank, Edentree Investment Management, HSBC, Lloyds Banking Group, Bank of Scotland and Standard Chartered were all found to have incomplete policies in place."