The Scottish organisations that choose to invest in nuclear weapons producers are out of step with international law on nuclear weapons.
Nuclear Non-Proliferation Treaty
Nuclear armed nations are currently spending vast sums of money maintaining and upgrading their nuclear arsenals, including the UK.[1] The UK is spending upwards of 172 billion pounds renewing its Trident nuclear weapons system and in March 2021 the government announced that it would increase the number of warheads in its stockpile by up to 40%.
Most of the companies covered by this report are profiting from these “modernisation” programmes. Some are involved in the development of new types of nuclear weapons and are, as such, deeply involved in a dangerous new nuclear arms race.[2]
Nuclear-armed nations the UK, US, Russia, France and China are members of the 1968 Nuclear Non-Proliferation Treaty (NPT). Under Article VI of the NPT, member states committed to pursuing “negotiations in good faith on effective measures relating to cessation of the nuclear arms race at an early date and to nuclear disarmament”.
The current “modernisation” programmes are clearly at odds with these obligations. In May 2015, an authoritative legal opinion commissioned by CND found that “the announcement by the UK government of the increase in nuclear warheads and its modernisation of its weapons system constitutes a breach of the NPT article VI”.
Organisations that invest in nuclear weapons producers are thus supporting activities that contravene commitments made under the NPT.
Treaty on the Prohibition of Nuclear Weapons
International law on nuclear weapons has been strengthened by the entry into force in January 2021 of the UN Treaty on the Prohibition of Nuclear Weapons (TPNW). The treaty prohibits the development, production, testing, possession, transfer, use and threat of use of nuclear weapons.
Importantly for investors, article 1(e) of the treaty prohibits state parties from assisting with any activity prohibited under the treaty. Article 5 obligates state parties to “take all appropriate legal, administrative and other measures, including the imposition of penal sanctions” to prevent and suppress acts prohibited by the treaty. Several other longstanding disarmament treaties contain a similarly worded prohibition, and there is an established understanding in international law that unlawful assistance includes financial assistance.
States that are not party to the treaty, such as the UK, are not legally bound by its provisions. Nevertheless, the TPNW establishes a global norm against nuclear weapons. Experience with similar treaties suggests that the TPNW will influence the actions of governments and shape the policies of financial institutions within states not party to the treaty (see further the discussion of financial risk in section 1.3).[3]
Nuclear weapons violate the right to life
In another significant legal development, the UN Human Rights Committee issued a General Comment in 2018 stating that the threat or use of nuclear weapons violates the right to life.[4] The right to life is enshrined in art 6(1) of the 1966 International Covenant on Civil and Political Rights. The committee’s General Comments are regarded as authoritative interpretations of treaty law and contribute to the development of customary international law.[5]
There is growing momentum worldwide among governments to require companies to undertake human rights due diligence, ensuring that companies are not complicit in human rights violations. These range from preventing human trafficking or modern slavery, to conflict-sourced minerals, to regulation of fisheries and other non-financial reporting directives.[6]
Scottish financial institutions and public bodies should take heed of these developments. Most describe themselves as responsible investors but this claim does not square with continued investment in weapons of mass destruction that are condemned by the international community.
NOTES
[1] https://reachingcriticalwill.org/resources/publications-and-research/publications/14711-assuring-destruction-forever-2020-edition.
[2] See S Snyder, Producing Mass Destruction – Private companies and the nuclear weapons industry (PAX, 2019) which profiles 28 companies’ involvement with nuclear weapons: https://www.dontbankonthebomb.com/wp-content/uploads/2019/05/2019_Producers-Report-FINAL.pdf.
[3] Ie treaties banning cluster munitions and landmines: see https://www.icanw.org/entry_into_force_briefing_paper.
[4] https://tbinternet.ohchr.org/Treaties/CCPR/Shared%20Documents/1_Global/CCPR_C_GC_36_8785_E.pdf.
[5] http://www.unfoldzero.org/un-human-rights-committee-condemns-the-threat-or-use-of-nuclear-weapons-and-other-wmd/.
[6] UN Human Rights “Issues Paper” on legislative proposals for mandatory human rights due diligence by companies (June 2020): https://www.ohchr.org/Documents/Issues/Business/MandatoryHR_Due_Diligence_Issues_Paper.pdf.
Don't Bank on the Bomb Scotland 