An ABC investigation into superannuation funds offering members 'ethical' or 'socially aware' options unearths millions of dollars of retirement savings invested in companies that make some of the most controversial and devastating weapons of war.
As war rages in Ukraine and the Middle East, weapons manufacturers are watching their profits and share prices soar.
The PGU-14/B is most commonly fired from the GAU-8, a high-powered Gatling gun mounted to fighter jets and warships.But the PGU-14/B's danger lingers long after the initial impact. General Dynamics will not say exactly what is inside the PGU-14/B , but US military documents confirm that the penetrator is made from depleted uranium.
ART's policy also promises not to invest in companies involved in nuclear weapons. General Dynamics has designed and installed guidance systems for the US nuclear missile program for more than 65 years. "While this brief collateral holding complied with our negative screening process at the time, we enhanced our approach within the Socially Conscious Balanced option to better meet the expectations of our members," it said.The holdings were discovered in an ABC analysis of the weapons and military industry investments of socially aware, ethical or sustainable branded options offered by Australian super funds.
The ABC compiled the most recent disclosures, which show the funds' holdings at the end of December last year, into a single data set. They held a further $34 million in shares of companies more broadly involved in firearms manufacturing and weapons contracting to the military. These companies are all involved in developing, maintaining or supplying components for nuclear weapons. Northrop Grumman, for example, in 2020 signed a $US13 billion contract to develop the United States' new intercontinental ballistic missile system.
"In selecting the screens, the fund balances members' desires to avoid certain categories of investments against their investment return risk tolerances," it said.In a later statement, it said it was making changes to its screen following the internal review. "There is not a universally agreed definition for what is considered 'controversial weapons' for the purpose of guiding trustee superannuation investment," it said in a statement.option on the confidential tips page
The superannuation industry is now facing calls to develop a consistent definition of "controversial weapons" to ensure members are fully informed about where their retirement savings are invested. "It also causes respiratory damage and can poison organs, but it's also important to note it causes lifelong suffering. Those who survive can experience psychological suffering, both from the trauma of the attack and the trauma of the treatment after the attack."
Spirit Super's responsible investment policy makes clear that it excludes investments in "any company which has any ties to … incendiary weapons." "Some financial institutions haven't done their homework correctly and have an incomplete definition of what they consider a controversial weapon," said weapons expert Frank Slijper from the Dutch group PAX, which has investigated financial institutions' investments in weapons.
The analysis found more examples of super funds with exclusions on incendiary weapons investing in companies involved in making white phosphorus bombs. "The smoke bombs manufactured by Daikin are used at the Self-Defense Forces' training grounds under the strict control of the Ministry of Defense and the Self-Defense Forces. They are not used in locations where they may affect civilians," Daikin said in a statement.
When contacted by the ABC, ICL Group initially denied any involvement in supplying white phosphorus to weapons manufacturers. "Hostplus' controversial weapons policy is developed in accordance with the international treaties and conventions which govern their use," it said. "Cbus will continue to invest in line with its responsible investment policy and monitor its exposures," it said.
It said the shares were discovered earlier this year during an external audit of the fund's holdings. In 2021, it announced it would not invest in companies that make more than 5 per cent of their revenue from nuclear weapons. "However, this may change depending on ongoing company reporting and research by specialist third-party data providers, and HESTA updates its exclusion list on a quarterly basis. We appreciate there's a wide range of views among our more than 1 million members."
"ASIC continues to investigate greenwashing and misconduct relating to ESG issues and Australians can expect more action from ASIC in the future."
Super Superannuation Data Nuclear Controversial Arms
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EU-regulated ‘sustainable’ funds invest £14bn in biggest pollutersInvestigation finds funds touting ethical credentials include fast fashion labels and fossil fuel companies
Read more »
‘Not a great fan’: Phillip Adams signs off with parting shot at ABC chairman Kim WilliamsAdams criticises Williams but wishes him well ‘in trying to save the joint’. Plus: turmoil at Seven as staff axed
Read more »
Judith Whelan, former Herald editor and ABC executive, remembered as a trailblazer for womenJudith Whelan, a former editor of The Sydney Morning Herald, died on Wednesday afternoon surrounded by her family.
Read more »
Judith Whelan, former Herald editor and ABC executive, remembered as a trailblazer for womenJudith Whelan, a former editor of The Sydney Morning Herald, died on Wednesday afternoon surrounded by her family.
Read more »
Judith Whelan, former Herald editor and ABC executive, remembered as a trailblazer for womenJudith Whelan, a former editor of The Sydney Morning Herald, died on Wednesday afternoon surrounded by her family.
Read more »
Media executive Judith Whelan remembered as 'true fighter' for journalism by ABC, Sydney Morning Herald colleaguesMedia executive Judith Whelan has died aged 62 after battling cancer for several years. She is being remembered as a fierce role model and advocate for young reporters.
Read more »