Countries’ Best Practices to Ban Investments in Cluster MunItIons

IKV Pax Christi is a civil society organisation that supports local efforts for peace, reconciliation and justice in conflict areas worldwide.

On 3 and 4 December 2008 a group of 94 states signed the Convention on Cluster Munitions (CCM), which categorically prohibits the use, production, transfer and stockpiling of cluster munitions. Driven by a commitment to end the humanitarian harm caused by cluster munitions,
the CCM is now signed by 111 states.

Cluster munitions continue to be produced in some states that have not yet outlawed these weapons. Although States Parties to the CCM must stop producing cluster munitions, some banks and other financial institutions in or from these states may
continue to fund their production by investing in corporations that manufacture them elsewhere. Financing and investing are active choices, based on a clear assessment of a company
and its plans. Investing in a cluster munition producer therefore is a choice to support the development and production of these weapons that cause unacceptable harm.

Any governmental effort to oppose the unacceptable humanitarian harm that cluster munitions cause should include efforts to dry up the supply capital that funds cluster munitions
production. Therefore, states should explicitly acknowledge that the treaty prohibits investments in producers of cluster munitions and should install legislation that prohibits
investments in companies that develop and/or produce cluster munitions or key components thereof.