The new PAX- ICAN report “Rejecting Risk: 101 policies against nuclear weapons” shows that the entry into force of the UN Treaty on the Prohibition Nuclear Weapons has created new normal in the financial world in which investors are looking to maximize both profit and progress. The report found that the number of financial institutions with policies excluding nuclear weapons is growing and many are citing the Treaty on the Prohibition of Nuclear Weapons (TPNW) as a reason to reject investment in nuclear weapon producers.
In total, 101 financial institution policies are profiled, an increase of 24 policies from what was previously reported in “Beyond the Bomb” before the nuclear ban treaty went into effect. According to author Susi Snyder this increase shows how the shift in the legal landscape "is already changing the financial industry. Nuclear weapons are illegal under international law, and investors are seeing the companies behind the bomb for what they really are - a risky business”
The report also found:
- Most (59) of the financial institutions listed have comprehensive policies preventing any type of financial relationship with nuclear weapon producers, while the rest still have work to do.
- The growing numbers of financial institutions listed in provides a snapshot of the emerging norm to avoid investments in companies contributing to existential risks
- One year on from the effective date of the TPNW, it is ‘making a difference’ - Financial institutions representing $3.9 trillion ($3,964,016,300,000) specifically named the Treaty as a reason to exclude the nuclear weapon industry from investment or financing.
It has become increasingly common for the financial sector to recognise that it is embedded in a broader social context, and therefore has responsibilities to do more than make money at any cost.
ICAN Executive Director Beatrice Fihn welcomes this report, saying its findings underscore this shift and "shows exactly how the Treaty on the Prohibition of Nuclear Weapons is shifting norms and forcing the finance sector to reexamine their priorities, one year after entry-into-force of the treaty. These finance leaders are rejecting a new nuclear arms race.”