Investing in weapons? No thanks
Content warning: Armed conflict
Weapons manufacturers, whose businesses revolve around selling weapons to different governments, have broadly seen their share prices rise as war continues in Ukraine and the Middle East. War is good for business in the short-term for these private companies.
But at Future Super we don’t believe that profit should come before human life. We apply screens to our investments that prevent us from investing in weapons companies, as well as companies that have documented contracts with military forces that make up a significant portion of their revenues.
How war impacts civilians
A century ago, most casualties in war were military personnel, but in modern wars almost 90% are estimated to be civilians, the majority women and children.
In Gaza, almost 70% of those killed so far have been women and children. An estimated 37 mothers are killed every day in Gaza. Since war broke out in the region in October 2023, more than a million women and young girls have lost their homes, loved ones and way of life. A further 19,000 women have been injured and thousands more widowed.
Does Future Super invest in weapons companies?
The vast majority of these casualties were inflicted by explosive weapons, manufactured by companies such as BAE and Lockheed Martin who profit from supplying them.
Future Super does not invest in companies that manufacture weapons. We think screening out these companies is a simple decision; companies that manufacture bombs aren’t compatible with the future we want to see.
The thing is, a lot of super funds in Australia do invest in weapons manufacturers.
A recent investigation from the ABC found that not only are super funds investing in weapons manufacturers, they’re doing so in the investment options they’ve labelled as “ethical” or “responsible”.
It just doesn’t make sense. Is there an ethical or responsible way to make a bomb that will kill innocent civilians?
How is superannuation linked to war?
One of Australia’s largest super funds was found to be invested in a US company called General Dynamics that manufactures weapons. Specifically, it makes depleted uranium bullets designed to pierce armour and to be fired from weapons which fire more than 4,000 rounds per minute.
The super fund the ABC investigated was found to hold shares in General Dynamic in their ‘socially conscious’ investment option. Depleted uranium bullets cause cancer when people are exposed to the dust they create on impact. Doesn't sound very socially conscious to us.
Keeping your super transparent
We think the ABC did a brilliant job with this investigation. But you shouldn’t have to be an investigative reporter to work out what your super fund invests in. By law, super funds must disclose their investments on their website, but it can be tricky to read these disclosures.
At Future Super, we believe in transparency without compromise. Read How We Invest for information about our screening and investment processes, including everything we invest in. Super is your money; you’re entitled to know what it’s up to!
The Forum of Australian Services for Survivors of Torture and Trauma (FASSTT) is a network of agencies that work with survivors of conflict overseas. If you or someone you know has been affected by overseas conflicts, help is available. Please reach out to the free, multilingual Witness To War hotline 1800 843 198.
All information is general in nature and does not take account of your personal objectives, financial situation or needs. Before deciding whether a particular product is appropriate for you, please read the relevant Product Disclosure Statement, Target Market Determination and Financial Services Guide available at futuresuper.com.au, and consider speaking with a financial adviser.