Christian Super - Superannuation

Topical Issues - Weapons

Summary Position

In the light of our framework of Commands, Character and Consequences and in line with our policy on disproportionately socially damaging industries such as alcohol production we should avoid investment in weapons production, and seek to invest in ways that promote peace.

Reasoning

The Church of England Ethical Investment advisory group has a useful summary statement as a guide:

The Church accepts the rights of nations to defend themselves and engage in peace-keeping activities. However the Church does not invest in companies that supply weapons, weapon systems or weapon platforms such as aircraft, helicopters, naval vessels or tanks. Investment is allowed in companies that provide non-offensive systems such as instrumentation or avionics or radar so long as this is not a major part of the company’s business. The supply of non-defence related products such as catering or clothing is allowed. Domini Social Investments has a useful more specific benchmark we suggest we adapt to our usual 5% tolerance level.

Military Weapons

Christian Super will avoid in its investments companies that derive more than 5% of revenues from the manufacture of military weapons. This screen primarily excludes major military contractors. The screen also excludes military subcontractors that manufacture military aircraft controls, spacecraft and missile controls, and industrial electronics and electric drives that also have military uses, and companies whose military work includes shipboard electronics, airborne training systems, range instrument systems, and mechanical systems, where those companies derive more than 5% of their revenue from such activities.

Firearms

Christian Super will avoid in its investment companies deriving more than 5% of revenues from the manufacture of firearms or small arms ammunition. This screen excludes producers of pistols, handguns, rifles, shotguns, and handheld automatic or semi-automatic weapons. It also excludes producers of ammunition for such weapons.

Christian Super will apply an absolute exclusion to any company involved in the production or distribution of atomic, biological or chemical weapons. We reject these weapons as inappropriate in every sense. No tolerance level is applied to these forms of weapons.