Worldwide investments in CLUSTER MUNITIONS

ETHICAL FINANCIAL INSTITUTIONS
Ethical financial institutions are usually smaller banks or fund managers, founded to serve as a source of
capital for sustainable projects and companies. Sustainable energy, organic food, social projects and cultural
activities are examples of fields in which these financial institutions invest. By their nature these financial
institutions do not get involved in investments in the arms industry. They usually have detailed procedures
to avoid investing in unethical industries like arms production. The ethical financial institutions in this
chapter are representative of the many ethical financial institutions whose sharp focus on sustainable or
value-driven investments merits a place here.
2.1.1 ASN Bank (the Netherlands)
ASN Bank is an ethical bank from the Netherlands. It aims to promote a sustainable and just society by
incorporating into its services a focus on human rights, biodiversity and the climate. 117 ASN Bank serves over
600.000 customers. 118
ASN Bank’s Issue Paper on Human Rights sets absolute criteria excluding all investment in the arms and
security sector. This means it excludes companies that engage in or benefit from war or armed conflict,
or that manufacture or trade in arms. ASN Bank states that as a result of this policy it will refrain from
providing any type of funding for or investment in companies that develop, manufacture, distribute or
trade in arms. The term arms refers to all types of conventional weapons, ammunition, weapon parts,
supporting technologies and associated expertise. For a precise definition of arms, ASN Bank refers to the
Common Military List of the European Union and a selection of international standards, including the
Convention on Cluster Munitions. The Common Military List of the European Union contains an extensive
summary of arms, parts and chemicals, as well as ICT products and services. Furthermore, ASN Bank
excludes companies that manufacture products used primarily in armaments in addition to having a civil
application. 119
ASN Bank’s policy to exclude companies involved in cluster munitions applies to all of its activities
including commercial banking, investment banking and asset management activities. 120
The bank publishes an inclusion list, which contains all companies eligible for funding and investments.
In correspondence with ASN Bank’s policy, the list does not contain cluster munitions companies. 121 The list
reflects ASN Bank’s aim to be transparent, as well as its proactive stance towards banning cluster munitions. 122
The list is based on the findings of data providers EIRIS and Sustainalytics, news reports, company websites
and reports by civil society organisations. 123
2.1.2 Banca Etica (Italy)
Banca Etica is an Italian cooperative bank that operates exclusively in the field of sustainable, alternative
finance. 124 It manages savings from private customers, businesses, organisations and institutions and invests
in initiatives focusing on social and economic goals. 125 Banca Etica serves over 30,000 private customers and
over 6,000 organisations. 126
Article 5 of Banca Etica’s founding charter states that “any and all financial relations with the economic
activities that, even in an indirect manner, inhibit the human development and contribute to fundamental
human rights violations are excluded.” 127 According to the bank, this article prohibits any involvement
in the arms industry. 128 Consequently, Banca Etica excludes all companies with activities related to the
production or development of cluster munitions, as well as their parent companies. 129
144