Would you want your money invested in developing nuclear weapons?

We assume most YLC readers are part of the peace and love generation and would be horrified by the thought, but it turns out your super could be helping create weapons of war.

New research from the Australia Institute and Quit Nukes reveals most major Australian superannuation funds have holdings in nuclear weapons companies, such as Airbus, Raytheon and Lockheed Martin. While many exclude so-called ‘controversial weapons’, they do not include nuclear weapons in the definition and continue to invest in nuclear weapons companies.

Nearly one year into the UN Treaty on the Prohibition of Nuclear Weapons (TPNW) entering into force (January 2021), which made nuclear weapons illegal under international law (joining chemical weapons, biological weapons, landmines and cluster munitions as undeniably ‘controversial weapons’) Australian super funds have had ample time to divest from nuclear weapons investments, and revise their definitions of controversial weapons to include nuclear weapons in line with the United Nations.

Australian Super, the largest fund in Australia by both membership and funds under management, have almost $1.5 billion in nuclear weapons companies.

Most major Australian superannuation funds invest in nuclear weapons, but do not disclose these investments to current or potential members. Details of holdings are often only available in shareholder proxy-voting records, which are often difficult to find.

A number of superannuation fund websites state that they exclude controversial weapons, but do not include nuclear weapons as controversial despite also being banned by an international treaty.

Seven in 10 (69%) Australians would expect nuclear weapons to be included in ‘controversial weapons.’ Only 10% would expect them to not be included.

“With just over two dozen companies involved in nuclear weapons production, Australian superannuation funds can make a meaningful contribution to the stigmatisation and elimination of nuclear weapons by excluding them. Nuclear weapons are now illegal under international law and abhorred by fund members,” said Dr Margaret Beavis, Quit Nukes Co-Director.

“While there is big money invested in nuclear weapons companies, these investments are usually a tiny percentage of the whole funds under management. There is no evidence to suggest that divestment will negatively impact returns. Some funds are making change, including Hostplus, which recently decided to divest all nuclear weapons holdings by end of January 2022,” Dr Beavis said.

How would you feel about your retirement savings being used to invest in nuclear weapons?