Campaigning on divestment is a way to build up the stigma and strengthen the norm against nuclear weapons. It is also a way to build up compliance wi the Treaty on the Prohibition of Nuclear Weapons. 

What do we want? 

All types of investors- banks, pension funds, asset managers, universities, churches, foundations and more to reject any form of financial relationship with the companies behind the bomb.

Banks, pension funds, asset managers 

Financial institutions can adopt, and make public, policies that prevent financing or investment in the companies associated with the production of nuclear weapons. In doing so, they should also divest from any holdings they might currently have and make that divestment announcement public. 

KLP, the largest private pension fund in Norway, is a good example of this. In strengthening their controversial weapons policy, they also divested $35.4 from the companies involved in nuclear weapon arsenals. KLP spokesperson Kiran Aziz said “A U.N. treaty on eliminating nuclear weapons took effect in January, so investors like KLP must apply more stringent standards to companies that contribute to making those weapons”

Insurance companies

Insurance companies maintain investments so should create investment policies preventing exposure to the companies involved in the production of nuclear weapons. Insurance companies can also choose not to provide corporate insurances services to companies involved in the nuclear weapon industry. 

Cities

If you are looking for a way to keep engaged with your city council/ local authority, after they’ve already joined up to the ICAN City Appeal, starting a dialogue on divestment of city pensions or other funds from investments in nuclear weapon producer holdings is a great way to go.

In the proposal for New York City legislation on this issue, there is relevant language which may be of use as a model:

Whereas, The pension system for the City of New York retirees has significant investments in these financial institutions and other companies involved in producing key components for and maintaining nuclear weapons through equity holdings, bond holdings, and other assets, according to the annual report issued by the New York City Employees’ Retirement System;

 

Resolved, The Council of the City of New York calls upon the New York City Comptroller to instruct the pension funds of public employees in New York City to divest from and avoid any financial exposure to companies involved in the production and maintenance of nuclear weapons.

 

Universities

Universities often hold large endowment funds which might contain investments in nuclear weapon producers. (Universities might also be connected to the production of nuclear weapons in other ways). Universities can set their investment standards and criteria and choose to divest from nuclear weapon producers. 

Churches, foundations, and other institutional investors

Similar to universities, other institutions often have investments. Investment oversight committees can choose how to invest for the future of the institution. Most of these maintain their fiduciary duty - the responsibility to get a good financial return- as their primary responsibility. However, it has become increasingly common to recognize that a company is embedded in a broader social context. Studies have shown that socially responsible actors are also more consistent in generating positive returns, it’s just good business.

What does a good policy look like?

A good policy is public and deals with the 

• Excludes the whole company associated with the production of nuclear weapons. The policy applies to whole companies, not not only nuclear weapons related projects; companies involved including through joint ventures, and; companies regardless of their country of origin or country of operation.
• Excludes companies involved with all prohibited nuclear weapon activities, including development, testing, production, maintenance or trade of nuclear weapons related technology, parts, products or services, and; delivery systems such as missiles, that are specifically developed for nuclear tasks. 
• Applies to all financial relationships. The policy should apply to the entire Group, including subsidiaries; in all markets; all asset management classes – passive and active, internal and external.

Example:

We will not support the production of any weapons banned by international treaties and protocols. This includes the Treaty on the Prohibition of Nuclear Weapons ( TPNW ), the Chemical Weapons Convention ( CWC ), the Biological and Toxin Weapons Convention ( BWC ), Cluster Munitions Convention (Oslo Treaty), and the Anti-Personnel Landmines Convention ( Ottawa Treaty ) among others.

For the purpose of this policy, the term Nuclear weapon includes the weapon as a whole, as well as its key component parts, specifically designed to form part of the nuclear weapon (e.g. nuclear warheads, missiles carrying the warheads, tailor-made electric/electronic systems, enriched plutonium / uranium, specifically designed engines and guidance systems). Services such as testing and maintaining / upgrading of nuclear weapons qualify as servicing nuclear weapons and therefore are also covered by the armament policy criterion.

We do not in any way finance or invest in companies which manufacture, supply, or develop weapons systems, including highly controversial weapons. Consequently, we maintain an Exclusion List and refrain from investing in or financing companies on the list. This exclusion is applied to whole companies.

When communicating to a financial institution, some tips:

• Inform the financial institution that you are aware of their investments in nuclear weapons companies.
• Specify which companies and briefly describe the activities these companies are engaged in.
• Outline why you believe that financing nuclear weapons is illegitimate.
• Ask for Information: Do they have an arms or defense sector policy? If so, ask how its investments in nuclear weapons companies can be justified under the terms of the policy.
• Call for Action: Call on the financial institution to divest from all nuclear weapons companies. Explain that nuclear weapons are illegitimate, prohibited and designed to cause indiscriminate catastrophic harm.
• Consider adapting this sample letter and sending it.

Refer to our FAQs for more on likely responses and continuing the conversation.