The Power of Divestment in Achieving Nuclear Disarmament
Divesting from nuclear weapon producers can help create financial pressure and societal stigma, ultimately urging them to cease production. Recent examples, such as the ban on cluster munitions investments and key contractors holding MoD's nuclear contracts, demonstrate the impact of divestment strategies on promoting peace and disarmament.
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Disarming Disarming Scotland through Scotland through divestment divestment Linda Pearson Don t Bank on the Bomb Scotland nukedivestmentscotland.org @NukeDivestScot
By divesting from By divesting from nuclear weapon nuclear weapon producers, we can producers, we can make it harder for make it harder for those that profit from those that profit from weapons of mass weapons of mass destruction and destruction and encourage them to cut encourage them to cut the production of the production of nuclear weapons from nuclear weapons from their business their business strategies. strategies. How can divestment help to achieve nuclear disarmament? Widespread divestment by banks would cut off nuclear weapons producers access to financing, giving them an incentive to stop producing. Each decision to divest increases the stigma associated with nuclear weapons. Beatrice Beatrice Fihn Director and Nobel Director and Nobel Peace Prize winner Peace Prize winner Fihn, ICAN , ICAN Divestment offers an easy way to mobilise opposition to nuclear weapons.
Cluster munitions convention entered into force in 2010. Four major British financial institutions banned investment in companies involved in making or supplying cluster munitions, including Lockheed Martin, General Dynamics and Textron. Example: Example: Cluster Cluster Munitions Munitions This brought fresh attention onto the harm caused by cluster munitions and intensified the pressure on companies to cease production. Lockheed Martin stopped producing cluster munitions components by end of 2013. By 2016, last remaining American manufacturer of the weapons, Textron, said that it would also cease production.
Four key contractors together hold 97% of MoDs nuclear contracts: BAE Systems: building new Dreadnought Class submarines; makes key components for US and UK Trident II (D5) missiles; also involved in development of French and other US nukes. Atomic Weapons Establishment, a consortium of Lockheed Martin (51%), Jacobs Engineering and Serco (24.5% each): responsible for manufacture and maintenance of UK s warheads. Lockheed Martin also makes Trident missiles in US. Companies Companies working on working on Trident Trident Rolls Royce: designing and manufacturing Dreadnought s new PWR3 nuclear reactors. Babcock International: maintains Navy s nuclear submarines and is a member of ABL Alliance, which provides support for Trident nuclear weapons system at Coulport and Faslane Other companies involved: Aerojet Rocketdyne; Boeing; BWX Technologies; Charles Stark Draper Laboratory; General Dynamics; Honeywell International; Moog; Northrop Grumman.
British banks financing Trident 2017 British banks financing Trident 2017- -2019 2019 BAE Systems Boeing General Dynamics Honeywell Int l Jacobs Engineering Lockheed Martin Northrop Grumman Serco Total million RBS 71.3 98.0 17.2 232.8 218.6 66.6 57.2 761.7 Lloyds 71.3 265.7 1610.5 47.0 58.8 558.0 413.8 30.6 3055.7 Barclays 857.4 406.7 25.9 1,41.1 156.7 221.8 197.5 3007.1 HSBC 232.8 218.6 57.2 508.6 Source: Shorting our Security Financing the Companies that Make Nuclear Weapons , by Susi Snyder (PAX, 2019). Note: Rolls Royce and Babcock are not covered by this report so investments in these companies have not been included in this table. 1 USD = 0.78369 GBP
Aim: to persuade your bank to adopt a comprehensive policy that prohibit any type of investment in any type of nuclear weapons producer. ACTION: ACTION: Tell your Tell your bank to stop bank to stop financing financing the bomb the bomb The policy should: Exclude all producers Exclude all activities Apply to all financial products
A: Find out whether your bank already has a comprehensive policy related to nuclear weapons. Is it comprehensive? Look up the Hall of Fame in the 2018 DBOTB report: https://www.dontbankonthebomb.com/2018-hof/ STEP 1 STEP 1 Do your Do your research research B: Find out whether your bank has investments in nuclear weapons producers. Look up the bank s list of investment in the 2019 Report, Shorting our Security: https://www.dontbankonthebomb.com/2019-hos/
If the bank does not have a comprehensive policy, write to your bank s chief executive: Say that you re an account holder. Say that you are aware of the bank s investments in nuclear weapons and explain why you believe that they should end their relationship with nuclear weapons producers. Request that the bank adopts a comprehensive policy. Let them know that you expect a response and say that you will move your money if the bank does not adopt a comprehensive policy. If you are not satisfied with the reply, seek a meeting with a representative of the bank. See this page for our template letter: https://nukedivestmentscotland.org/template-letters-2/ STEP 2 STEP 2 Talk to your Talk to your bank bank
STEP 3 STEP 3 Move your Move your money money If the bank refuses to change it s policy, consider moving your money. Let the bank know why you have closed your account.
Scottish Local Government Pension Scheme Scottish Local Government Pension Scheme NAME OF PENSION FUND COUNCILS COVERED (administering authority in italics) Dumfries and Galloway Dumfries and Galloway Falkirk Clackmannanshire, Falkirk, Stirling Fife Fife Highland Comhairle nan Eilean Siar, Highland Lothian City of Edinburgh, East Lothian, Midlothian, West Lothian North East Scotland Aberdeen City, Aberdeenshire, Moray Orkney Islands Orkney Islands Scottish Borders Scottish Borders Shetland Islands Shetland Islands Strathclyde Argyll and Bute, East Ayrshire, East Dunbartonshire, East Renfrewshire, Glasgow City, Inverclyde, North Ayrshire, North Lanarkshire, Renfrewshire, South Ayrshire, South Lanarkshire, West Dunbartonshire Tayside Angus, Dundee City, Perth and Kinross
Scottish LGPSs investments in Trident Scottish LGPS s investments in Trident Babcock BAE Systems Boeing General Dynamics Honeywell Int l Jacobs Engineering Lockheed Martin Northrop Grumman Rolls Royce Total 92,037,962 Lothian 1,158,151 18,702,122 65,140,508 7,037,181 165,687 712,107 20,327,880 49,726,761 Strathclyde 14,202,821 3,451,046 715,861 8,922,646 1,228,713 20,057,367 35,397,473 Falkirk 15,340,106 10,510,069 13,559,850 Tayside 3,049,781 5,801,100 11,492,146 Highland 5,691,046 4,050,897 NE Scotland 4,050,897 3,112,010 Fife 797,673 2,314,337 616,633 504,753 Borders 616,633 Orkney 504,753 1,158,151 7,749,288 61,868,699 210,498,485 TOTAL 33,390,381 3,451,046 25,109,029 11,236,983 165,687 66,369,221
Membership of Nuclear Free Local Authorities (NFLA) Membership of Nuclear Free Local Authorities (NFLA) Councils working for a renewable, safe and peaceful future Councils working for a renewable, safe and peaceful future Member Council Pension Fund Investments in Trident? Passed a resolution in support of TPNW? Passed a resolution in support of divestment? Dundee City Tayside East Ayrshire Strathclyde Lothian Edinburgh City Fife Fife Strathclyde Glasgow City Lothian Midlothian Strathclyde North Lanarkshire Tayside Perth and Kinross Strathclyde Renfrewshire Shetland Islands Unknown Shetland Islands Strathclyde West Dunbartonshire Highland Western Isles
In what is a dangerous and unstable world, it is really important that Councils stand up for doing things differently and encourage multilateral nuclear disarmament and divestment from companies involved in developing the ultimate weapon of mass destruction. By such actions we help to solve the nuclear emergency . Audrey Doig, Renfrewshire Councillor and NFLA Scotland Vice Convenor
Step 1: Find out if your councils pension fund has investments in nuclear weapons. Check section 3 or our website: nukedivestmentsotland.org Step 2: Write to your local councillors explaining why you think the fund should divest, request that they support a resolution calling on the fund to divest and that they pass on your concerns to the convenor of the pensions committee. ACTION: ACTION: Contact your Contact your local councillor local councillor about nuclear about nuclear weapons weapons divestment divestment Step 3: If you do not receive a satisfactory response, request a meeting with your councillors or attend one of their regular surgeries. Note: if you are an employee of a local authority or another employer that is a member of a local authority pension fund, write to the convenor of the pensions committee to explain why you object to your pension contributions funding nuclear weapons. You could also contact your union representative.
1. We have a fiduciary duty to our members which means we can t divest for ethical reasons. Common Common objections objections 2. It s not legally possible for us to divest from harmful industries." 3. We use engagement to influence companies on environmental, social and governance (ESG) issues.
Fiduciary duty Fund trustees do have a duty to act in the best, long-term interests of their members. How to How to respond respond There is a strong case that the interests of fund members will be best served by a fund which helps to limit the threat of nuclear war by divesting from nuclear weapons producers. Some funds, eg Borders and Tayside, have interpretation of fiduciary that goes beyond simply enhancing long-term financial returns.
The law applying to LGPS funds A legal opinion commissioned by the Scottish LGPS s advisory board states that funds can take into account non- financial factors in their investment decisions, so long as that does not risk material financial detriment to the Fund . How to How to respond respond Tayside Pension Fund s ESG policy states that fund aims to disinvest from tobacco stocks, showing that Scottish local authority pension funds can pursue divestment from certain industries. Scottish Borders Council Pension fund s investment policy partially restricts investments in controversial weapons. Waltham Forrest and Southwark are divesting from fossil fuels.
Engagement versus divestment Preference for engagement over divestment means that local authority pension funds continue investing in harmful industries. Attempts to change company behaviour through engagement tend to be limited in scope, rather than attempting to change core part of company s business. How to How to respond respond No evidence that Scottish local authority pension funds have engaged with companies regarding their involvement with nuclear weapons. Example of cluster munitions suggests that divestment is a far more effective way to curb the production indiscriminate weapons.
And finally... And finally... If you need any help, contact us! We can provide briefing sheets with information about each Scottish local authority pension fund and we can help you formulate correspondence: nukedivestmentscotland@gmail.com For campaign updates, follow us on Twitter: @NukeDivestScot
