Switzerland’s major financial institutions have invested over $9 billion in companies in the global weapons industry. This includes a focus on nuclear weapons manufacturing. A report by the Dutch NGO Pax and the International Campaign to Abolish Nuclear Weapons (ICAN) highlighted this information. The report noted that between 2017 and 2018, four Swiss institutions made significant investments in nuclear weapons producers. These institutions are UBS, Credit Suisse, the Swiss National Bank (SNB), and Fisch Asset Management.
Key Details
The SNB alone has invested more than $2 billion (CHF1.8 billion) in the U.S. weapons sector. The report showed that these investments mainly consist of shares and bonds. Credit Suisse and UBS also provided loans of CHF507 million and CHF145 million, respectively. Susi Snyder, one of the report’s authors, pointed out the challenge of getting complete data on these investments. She stated, "There is always a notable lack of information on the subject."
Background
On November 29, Swiss voters will decide on a proposed initiative to enforce ethical investment rules. This initiative could affect the future of such investments. It aims to impose limits on financial institutions that invest in companies producing nuclear weapons. The report classified firms that earn income from nuclear weapon production as part of the industry, no matter how small the revenue percentage from these activities.
Related coverage: Nvidia Commits Nearly $10 Billion to German AI Initiatives.
The investments by Swiss banks in the weapons sector could change public opinion and lead to regulatory changes about ethical investing. A shift in policy could reduce funding for companies involved in military production. The outcome of the November 29 vote will determine the future of ethical investment rules in Switzerland.
Based on reporting by: swissinfo.ch