15 leading and local financial institutions ban nuclear weapons-related loans and investments, survey shows
Nov. 19, 2023
by Fumiyasu Miyano, Staff Writer
According to a survey of 25 leading domestic financial institutions and local financial institutions in the Chugoku district conducted by the Chugoku Shimbun prior to the Second Meeting of States Parties to the Treaty on the Prohibition of Nuclear Weapons (TPNW), 15 have a policy of not lending to and investing in nuclear weapons-related companies or projects. These policies were decided after the TPNW was adopted by the United Nations in July 2017, illustrating the impact of the first international treaty to comprehensively ban nuclear weapons as an inhumane weapon.
Of the 19 companies that responded to the survey, seven, including Sumitomo Mitsui Financial Group (FG), Saikyo Bank (Shunan City), Chugoku Bank (Okayama's Kita Ward), and San-in Godo Bank (Matsue City), replied that they prohibit loans to and investments in the companies that manufacture nuclear weapons or related products, and eight, including Mitsubishi UFJ FG, Hirogin Holdings (HD), in Hiroshima's Naka Ward, Yamaguchi FG (Shimonoseki City), and Tottori Bank (Tottori City), said their restrictions are limited to projects related to nuclear weapons.
These companies made their decisions between September 2017 and August 2023. The top reason chosen by 14 companies was "A nuclear weapon is an inhumane weapon,” followed by "Reference to other domestic and foreign financial institutions," chosen by eight; and "Business activities and funding may be affected by the criticism from customers and institutional investors," chosen by six. (Multiple selections were allowed.)
At the same time, only eight companies had a definition and standard with regard to what qualifies as a nuclear weapons-related company or project. Nippon Life Insurance Company includes the production of nuclear missiles and related parts in its definition, which is: "A company that manufactures nuclear warheads and/or missiles, or develops and manufactures parts used exclusively for nuclear warheads and/or missiles."
Four companies that have not adopted a policy prohibiting loans and investments cited the following as reasons for not doing so: "We cannot rule out the risk of violating our own policy if products were ultimately diverted to nuclear weapons, including a case we cannot grasp." (Tokio Marine HD); "Japan has not presented its policy on the banning of nuclear weapons, such as whether it would ratify the TPNW." (Japan Post Insurance)
International non-governmental organizations (NGOs) continue to investigate and report on loans and investments in the nuclear weapons industry by financial institutions, aiming to cut off funding to the industry and pressure it to abolish nuclear weapons by enlightening the public. Coinciding with the Second Meeting of States Parties, which begins on November 27 at the United Nations Headquarters in New York, related events will be held on the ground.
Methodology of Survey
A survey was e-mailed to 17 leading Japanese banks, insurance companies and securities firms, as well as eight local banks in the Chugoku district in mid-October. Of these, 19 companies, excluding Meiji Yasuda Life Insurance Company, MS&AD HD, Nomura HD, Daiwa Securities Group, Government Pension Investment Fund (GPIF) and Shimane Bank (Matsue City), had responded by mid-November.
(Originally published on November 19, 2023)
According to a survey of 25 leading domestic financial institutions and local financial institutions in the Chugoku district conducted by the Chugoku Shimbun prior to the Second Meeting of States Parties to the Treaty on the Prohibition of Nuclear Weapons (TPNW), 15 have a policy of not lending to and investing in nuclear weapons-related companies or projects. These policies were decided after the TPNW was adopted by the United Nations in July 2017, illustrating the impact of the first international treaty to comprehensively ban nuclear weapons as an inhumane weapon.
Of the 19 companies that responded to the survey, seven, including Sumitomo Mitsui Financial Group (FG), Saikyo Bank (Shunan City), Chugoku Bank (Okayama's Kita Ward), and San-in Godo Bank (Matsue City), replied that they prohibit loans to and investments in the companies that manufacture nuclear weapons or related products, and eight, including Mitsubishi UFJ FG, Hirogin Holdings (HD), in Hiroshima's Naka Ward, Yamaguchi FG (Shimonoseki City), and Tottori Bank (Tottori City), said their restrictions are limited to projects related to nuclear weapons.
These companies made their decisions between September 2017 and August 2023. The top reason chosen by 14 companies was "A nuclear weapon is an inhumane weapon,” followed by "Reference to other domestic and foreign financial institutions," chosen by eight; and "Business activities and funding may be affected by the criticism from customers and institutional investors," chosen by six. (Multiple selections were allowed.)
At the same time, only eight companies had a definition and standard with regard to what qualifies as a nuclear weapons-related company or project. Nippon Life Insurance Company includes the production of nuclear missiles and related parts in its definition, which is: "A company that manufactures nuclear warheads and/or missiles, or develops and manufactures parts used exclusively for nuclear warheads and/or missiles."
Four companies that have not adopted a policy prohibiting loans and investments cited the following as reasons for not doing so: "We cannot rule out the risk of violating our own policy if products were ultimately diverted to nuclear weapons, including a case we cannot grasp." (Tokio Marine HD); "Japan has not presented its policy on the banning of nuclear weapons, such as whether it would ratify the TPNW." (Japan Post Insurance)
International non-governmental organizations (NGOs) continue to investigate and report on loans and investments in the nuclear weapons industry by financial institutions, aiming to cut off funding to the industry and pressure it to abolish nuclear weapons by enlightening the public. Coinciding with the Second Meeting of States Parties, which begins on November 27 at the United Nations Headquarters in New York, related events will be held on the ground.
Methodology of Survey
A survey was e-mailed to 17 leading Japanese banks, insurance companies and securities firms, as well as eight local banks in the Chugoku district in mid-October. Of these, 19 companies, excluding Meiji Yasuda Life Insurance Company, MS&AD HD, Nomura HD, Daiwa Securities Group, Government Pension Investment Fund (GPIF) and Shimane Bank (Matsue City), had responded by mid-November.
(Originally published on November 19, 2023)
