Huge drop revealed in cluster munitions investments
Some 88 financial institutions, including the Ticino firm Lemanik, invested $9 billion (CHF9 billion) in seven producers of banned cluster bombs this year, a new report has revealed. This represents a major downward trend compared to last year.
This content was published on
3 minutes
Born in London, Simon is a multimedia journalist who has worked for www.swissinfo.ch since 2006. He speaks French, German and Spanish and focuses on science, technology and innovation issues.
The overall number of financial institutions that fund the banned munitions fell from 166 in 2017 to 88 this year, said the report by the Dutch NGO Pax, which was released on Monday by the Geneva-based Cluster Munition CoalitionExternal link. The global level of financial investment fell from $31 billion to $9 billion.
The authors said this was partly due to halt in production and delivery of cluster munitions by two major US-based manufacturers, Textron and Orbital ATK.
Ten years after the international ban on cluster munitions was signed in Oslo, Norway, the Convention on Cluster Munitions has been “overwhelmingly successful”, the report added.
It said that there had been a marked increase in the number of financial institutions explicitly excluding investments in cluster munitions producers – now at 110. There has also been a significant rise in the number of states taking steps to prohibit investments in cluster munitions from 38 to 46.
Nonetheless, the report identified seven companies based in four countries that continue to produce the deadly munitions. These include four existing firms – China Aerospace Science and Industry (China), Hanwha (South Korea), Norinco (China) and Poongsan (South Korea) – and three newcomers – Avibras (Brazil), Bharat Dynamics Limited (India) and LIG Nex1 (South Korea).
For purportedly investing $1.5 million in Poongsan, the Ticino institution Lemanik was put on the report’s “Hall of ShameExternal link” – a list of banks, pension funds and other financial institutions that have invested in cluster munitions producers since June 2012. Credit Suisse dropped out of the listing in 2017.
Elsewhere, the Alternative Bank Schweiz became the first Swiss financial institution to be added to the report’s “Hall of Fame” – a list of 48 financial institutions from 13 countries with comprehensive ethical policies that aim to exclude any financing of armaments companies or defence providers.
The report ranked Swiss banks UBS and Vontobel as so-called “Runner’s Up” for reportedly small investments.
“To gain a place in the Hall of Fame, UBS should extend its policy to all actively managed funds, as well as its passively managed funds and all externally managed assets,” the authors wrote.
It added: “Vontobel should expand the scope of its policy to cover all products, including its passively managed funds and the assets managed for clients.”
Switzerland External linkratified the cluster munitions ban treaty in July 2012, four years after it was launched, after a lengthy national consultation process. It has been focusing on destroying a large stock of 201,895 cluster munitions, comprising four different types, built up between 1988 and 2004. It is expected to complete destruction of its stockpiles by the end of 2018.
New gel developed in Zurich renders alcohol harmless
This content was published on
A newly developed gel composed of whey proteins breaks down alcohol in the body and could reduce its harmful and intoxicating effects in humans.
Pro-Palestine protests extend to Basel and Fribourg universities
This content was published on
Demonstrators called for an academic boycott of all Israeli institutions and disassociation with Chaim Weizmann, the first Israeli president.
This content was published on
In many cases, China's use of AI undermines the national security of the US and its allies, according to a US government representative.
Swiss Hells Angels trial alleges rape and money laundering
This content was published on
An allegedly high-ranking member of the Hells Angels is accused of money laundering totalling millions and rape, among other serious crimes.
SWISS is airline ‘group flagship’ says Lufthansa boss
This content was published on
Despite challenges, Lufthansa and its most important subsidiary, Swiss International Airlines, promise increased satisfaction and continued growth.
Swiss rediscover communist zeal after 84-year hiatus
This content was published on
Over 300 participants founded the Revolutionary Communist Party (RKP) at its congress in Burgdorf in canton Bern at the weekend.
This content was published on
Nemo brought the Eurovision Song Contest to Switzerland with a victory on Saturday evening in Malmö, Sweden. It is Switzerland's third victory in the history of the music contest.
Report criticises banks for investing in nuclear weapons
This content was published on
The 2018 Don’t Bank on the Bomb report External linkpublished on Wednesday lists 329 banks, insurance companies, pension funds and asset managers from 24 countries that invested a total of $525 billion (CHF493 billion) in the top 20 biggest nuclear weapons producers based in France, India, the Netherlands, the United Kingdom and the United States.…
Swiss state pension fund stops investing in arms firms
This content was published on
According to a report by Swiss public radio, SRF, Publica, the biggest pension fund in Switzerland, is dropping five arms manufacturers from its investment portfolio and selling its stake in them. Publica currently has 63,000 people paying in to the fund and 43,000 recipients, mainly government civil servants and employees at the federal institutes of…
Credit Suisse in cluster bomb investors ‘Hall of Shame’
This content was published on
The 2016 “Worldwide Investments in Cluster Munitions: a shared responsibility” report External linkincludes a “Hall of Shame” – a list of 158 banks, pension funds and other financial institutions that have invested in cluster munitions producers since June 2012. Cluster bombs were banned under international law by the Convention on Cluster MunitionsExternal link, a 2008…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.