Four large banks scrap investments in the weapon industry
Following the bank groups KBC (2004) and ING (March 2005), Dexia and Fortis are the latest bank groups to develop new weapon investment policies.

Fortis has decided to no longer directly invest in producers of anti-personnel mines, biological and chemical weapons nuclear weapons and cluster munitions.

Dexia goes even further by excluding the majority of the weapon industry. Not only the most controversial weapons, but also weapon systems including fighter planes, conventional munitions, submarines and munitions factories will no longer be financed by Dexia.

ING had already announced in March 2005 that it was withdrawing from a number of controversial weapon systems: anti-personnel mines, biological and chemical weapons, cluster munitions, nuclear weapons and depleted uranium weapons.

For all three of these banks the policy is only valid for their own financing and direct investments. Investment funds, which the bank offers for sale to customers, continue to invest in these very controversial weapons. For the peace-loving investor there is still no reason to be content.

In contrast, KBC group has produced a more consistent policy. Producers of weapons systems that KBC believes to be unacceptable are excluded from all of KBC’s products. KBC investment funds are also therefore no longer investing in anti-personnel mines, cluster munitions, depleted uranium weapons and biological and chemical weapons.

Only AXA has shown little or no movement. At an international level, AXA does not even exclude investments in anti-personnel mines. AXA Belgium has withdrawn from investment in Singapore Technologies Engineering, a Singaporean company that produces anti-personnel mines amongst other items. In this way, AXA Belgium is simply conforming to Belgian law.

Belgium bans investments in anti-personnel mines
As a result of the campaign, a law proposal of Philippe Mahoux (PS, French speaking Social Democratic party) was agreed in the Belgian Parliament in June 2004. This law forbids the investment of investment funds in companies that produce, use or stockpile anti-personnel mines. Belgium is the first country in the world to pass such a law.

Work still to be done
Netwerk Vlaanderen and the peace organisations involved in the campaign are happy with the first results of the campaign. However, there are still many challenges that must be faced.

None of the banks have fully withdrawn from the arms industry. This means that these bank groups still run the risk of being associated in the future with questionable arms deals.

These bank groups have also understood that openness about their policy is also important. But complete transparency is needed to be able to control the implementation of the policy.

Now that a number of the most important banks have grasped the nettle, the time is ripe for initiatives across the sector. FEBELFIN, BVB and BEAMA (umbrella organisations for the financial sector in Belgium) are the right fora in which to start this process.

At a political level, the ban on investments in anti-personnel mines could certainly be extended to cover all forms of investment and financing. A law proposal has been proposed on this matter in the Belgian Senate. There is still a lot of work to be done at a political level on drawing up of transparency norms for financial institutions.

Strengthened by the results of the campaign so far, Netwerk Vlaanderen, Vrede, Forum voor Vredesactie and For Mother Earth, are calling on peace movements, humanitarian organisations, bank watchers, and other campaigns around the world to bring similar pressure against banks to end their investments in the weapon industry.

END Press Release

Spokespersons
Christophe Scheire and Inez Louwagie
Netwerk Vlaanderen vzw
Vooruitgangstraat 333/9
1030 Brussels
Tel: +32 (0)201 0770
Fax: +32 (0)201 0602
www.mymoneyclearconscience.be

Netwerk Vlaanderen is a member of BankTrack, an international movement for sustainability in the financial sector: http://www.banktrack.org