Nuclear Weapons Free Finance Initiative

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Nuclear weapons present a grave and growing threat to humanity. The world’s nine nuclear-armed nations are engaging in a dangerous new nuclear arms race. Increased geo-political tensions are making the possibility of nuclear weapons use greater than at any other time in history.

 

Nuclear weapons destructive capacity is tremendous - these are weapons designed for indiscriminate mass harm. Nuclear weapons could flatten cities in moments. Impacts would not be limited to ground zero. Global climate scientists warn that using even a tiny fraction of today’s global arsenal would result in catastrophic famine, starving the world. 

 

In response to their humanitarian and environmental impact, nuclear weapons were outlawed under the Treaty on the Prohibition of Nuclear Weapons (TPNW). The treaty became international law in January 2021, and has been ratified by 70 states so far. The TPNW bans the use, production, transfer, manufacture, testing and development of nuclear weapons as well as any form of assistance of these prohibited activities.  

 

Nuclear weapons are controlled by governments, but their production is often contracted to private companies. Approximately 25 companies from  China, France, India, Russia, the United Kingdom, and the United States hold significant contracts for activities violating the TPNW. These companies have a vested interest in keeping the nuclear arms race going, and spend millions each year on lobbying and financing think tanks to justify the acquisition of more and more weapons. In doing so, they create a demand that only they can supply. 

 

This can no longer be tolerated. The risks are too high. We choose to be part of the solution to bring about a nuclear weapons free world. 

 

Therefore, by signing the Nuclear Weapons Free Finance Initiative, we will:

 

  • Welcome the UN Treaty on the Prohibition of Nuclear Weapons as a significant step towards the realisation of a nuclear-weapon-free world; 

  • Collaborate to raise awareness of the issue of lending to, investing in, and insuring companies producing nuclear weapons;

  • Encourage the adoption of nuclear weapons-free finance policies across lending, investment and insurance;

  • Engage with index and other service providers to ensure the availability of products excluding the companies involved in nuclear weapons; 

  • Seize opportunities to engage with companies involved in nuclear weapons production to encourage an end to those activities, and should they not be willing to change within 24 months, exit our financial relationships including through divestment, and; 

  • Actively encourage others to join this initiative.

 

 

Sign on

Definitions

  • Nuclear weapons: A nuclear weapon is a nuclear explosive device that has been weaponized, meaning that it is contained in and delivered by, for example, a missile, rocket, or bomb.
  • Companies producing nuclear weapons: Companies that are involved directly or through significantly-owned subsidiaries, in the development, testing, production or maintenance of nuclear weapons related technology, parts, products or services. The company’s involvement is related to warheads, or to specifically designed nuclear capable delivery systems such as missiles. This includes ‘dual use’ (military and civilian) technology but excludes technology that is not specifically designed for, but can be adapted or configured for use in nuclear warfare.
  • Finance: Finance is used as a collective term that encompasses banking (lending and investing), insurance, investment management, and other types of financial services (including advice).
  • Nuclear weapons-free: The exclusion of companies  whose operations include manufacturing, developing, testing, or producing nuclear weapons, or assisting in those acts which are prohibited under the UN Treaty on the Prohibition of Nuclear Weapons.

Who should sign the initiative?

  • Financial institutions: Banks, pension and superannuation funds, insurance and reinsurance companies and intermediaries, sovereign wealth funds, investment managers, asset consultants and advisors.
  • Philanthropic foundations: Corporate, private and family foundations.
  • University endowments.
  • Other organisations participating in lending, insurance or investment, and not mentioned in the sub-categories mentioned above.

Who should support the initiative? 

  • Banking, insurance and investment associations; institutes and initiatives; financial regulatory and supervisory authorities; civil society organisations; and other institutions that work with the finance sector. Organisations focused on preventing catastrophic risk, peacebuilding and protecting the planet are also welcome supporters.