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ICAN and PAX brought together a diverse group of investors and advocates for an informal dialogue on ways and means to deal with efforts to undermine existing controversial weapons and defence sector investment policies on the margins of the UN Forum on Business and Human Rights.
Expert speakers included Alejandra Muñoz of PAX, Sam Jones of Heartland Initiative and, Karolina Malisauskaite from KLP (Norway). Each of the speakers raised key questions and challenges they are currently facing, as well as ways in which to mitigate them.
Concerns were raised about how to balance ethical, legal and fiduciary responsibilities in a landscape where reliable data is limited. Participants also highlighted worries about the increasingly blurred boundaries between the defence sector and the technology industry, and the lack of strong policies to deal with these issues—especially when the questions relate not to specific products but to behaviour. It was noted, however, that investors whose policies are firmly grounded in international law, including international humanitarian law (IHL), and who already exclude companies producing weapons that would typically breach IHL, may be better equipped to consider the military use of emerging technologies.
Another issue that emerged during the included a recognition that the push for increased defence sector investment is less about generating capital (as there is already a clear abundance of liquidity in the sector) rather it is about providing legitimacy and cover for the companies that are operating in ways that are in direct opposition to public opinion, preparing for the grossest of human rights violations, and consistently operating in ways that run contrary to existing norms and obligations- including the UNGPs, the Arms Trade Treaty and more.
The discussion brought additional insights, including the arms industry’s reliance on export licensing instead of their own corporate human rights due diligence (or, in conflict affected and high risk areas, heightened human rights due diligence). Across the industry, there is a clear desire as well for more data - from NGOs, service providers and others, to facilitate these processes.
The event took place against a backdrop of rising global tensions, and participants recognised that investors are now under much greater pressure to fund the defence sector, sometimes despite long-standing policies designed to avoid the risks linked to indiscriminate weapons or the high-risk arms trade. Some financial institutions have already relaxed their policies as a result, particularly in relation to companies involved in producing components for nuclear weapons.