On  29 October 2009, campaigners in Europe launched a call for governments to stem the flow of money to cluster munition producers operating in countries that have not joined the 2008 Convention on Cluster Munitions. The Cluster Munition Coalition (CMC) is calling on all governments unilaterally ban the funding of cluster munition production, calling the weapon “morally and commercially unviable.”

According to the report, entitled “Worldwide Investments in Cluster Munitions: A Shared Responsibility” launched by CMC members IKV Pax Christi and Netwerk Vlaanderen, over $5 billion USD has been provided in loans to cluster munition producers. The report lists 138 banks and financial institutions from around the world that invest in cluster bomb producers.  According to the Guardian, HSBC has profited more than any other institution from companies that manufacture cluster munitions. Other top loan providers were Bank of America, Citigroup, JP Morgan, Barclays, and Goldman Sachs.  The researchers used publicly available information, such as that supplied by stock exchanges and financial databases, to produce the study.

A total of 101 governments have signed the Convention on Cluster Munitions, of which 23 have ratified. The agreement comprehensively bans cluster munitions and provides for clearance and victim assistance.  It also prohibits assistance with banned acts, which–as with antipersonnel landmines–is being interpreted as prohibiting investment in manufacturers of the banned weapon.  The CMC is asking all governments, particularly treaty signatories, to acknowledge the prohibition on assist by putting in place laws or policies that explicitly prohibit any investment in the weapon.

The report identifies some banks and other financial institutions in ten countries that have signed the Convention–including the UK, Germany and Japan–that continue to invest in companies producing cluster munitions.  Financial institutions in five countries and territories that have not signed the Convention are investing in cluster munition producers: Saudi Arabia, Singapore, South Korea, Turkey and the United States, as well as Taiwan.

Belgium, Ireland and Luxembourg have prohibited investment in cluster bombs through national law, while government-managed pension funds in New Zealand and Norway have excluded cluster munition producers from the lists of companies in which they invest.

In April 2009, the Board of Guardians of the New Zealand Superannuation Fund announced that it would divest from companies that manufacture cluster munitions. In September 2009, the Aotearoa New Zealand Cluster Munition Coalition called for the Cluster Munitions (Prohibition) Bill to be amended to specifically  prohibit “investment” in the production of cluster munitions.

In Australia, campaigners have called for the ANZ Bank to cease its relationship with Lockheed Martin, which has manufactured cluster munitions.

For more information, please see:

• Report by IKV Pax Christi and Netwerk Vlaandere
• Website for Stop Explosive Investments
• Article in The Guardian
• Toolkit for divestment campaigning

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