Happy Birthday TPNW- time for divestment!

A year ago, the Treaty on the Prohibition of Nuclear Weapons (Ban Treaty) was adopted by an overwhelming majority at the United Nations. This landmark agreement prohibits nuclear weapons and related nuclear weapon activities. Since the adoption of the treaty the financial sector is moving significant money away from anything to do with nuclear weapons.

In just a year, the Ban Treaty is delivering results. Our research showed a notable drop in the number of institutional investors in nuclear weapon producers- 30 fewer than the year before. These financial institutions understand that the Treaty will impact their investments and see that it is wise to divest now. Some notable divestors include GE Capital (divested $493 million); Vulcan Value Partners ($493 million), and; Blue Cross & Blue Shield Association ($2 million).

Two of the biggest pension funds in the world changed their relationship to nucelar weapons since the adoption of the Ban Treaty. The Dutch public sector pension fund ABP announced it would divest, and noted that the adoption of the treaty helped make up its mind. While the Nowegian trillion dollar pension fund, Government Pension Fund Global added companies producing nuclear weapons to their exclusion list- including AECOM, BAE Systems, Fluor Corp and Huntington Ingalls Industries Inc because of their involvement in the production of nuclear weapons. Companies like BAE Systems produce key components integral to the nuclear weapons systems of France, the UK and the US.

Banks are also changing their minds around nuclear weapons. KBC, headquartered in in Belgium announced a new policy “following the line of the United Nations Treaty on the Prohibition of Nuclear Weapons.” KBC serves more than 11 million clients with core markets in Belgium, Bulgaria, the Czech Republic, Hungary, Ireland and Slovakia.

Deutsche Bank also expanded its exclusion of controversial weapons companies. The new policy excludes companies with “clear, direct links” to controversial weapons businesses, including those involved in nuclear weapons. The new policy is a step in the right direction, though can still be strengthened to be sure it divests from the six billion US dollars investments it currently holds.

We are seeing definite momentum in the divestment from nuclear weapons. It is clear that these weapons are toxic in terms of public opinion, and people don’t want their pension or bank funds invested in that manner. It’s impressive to see the financial sector taking positive action as the Treaty moves towards entry into force. While the financial sector cannot sign or ratify, these divestment activities and policy changes send a clear signal to governments that the time has come to fully reject nuclear weapons and to join the Treaty today.