Working with wealth funds to encourage divestment from weapons production and trade
A powerful way to reduce arms trading is to actively encourage the divestment of funds away from weapons production by key entities of the financial sector such as pension funds, endowments and sovereign wealth funds.
We see that major corporations and investors are becoming alert to the advantages of divesting from unethical investment such as arms production, as peaceful environmentally conscious societies are beginning to be seen as a gold mine for new sources of progress and profitability.
Business Plan for Peace, together with our partners, is building links with existing mechanisms such as the Sustainable Investment Forums (SIFs), and the UN Principles for Responsible Investment (PRI), in order to garner maximum impact on creating a shift toward divestment with investment firms and asset managers.
More than 6,500 funds sold to retail investors around the world have high exposure to controversial weapons such as cluster munitions, according to new research that has cast doubt over asset managers’ efforts to invest responsibly.
-Financial Times, March 2017