Wars typically cause massive suffering, but are hugely lucrative for weapons companies. Since October 2023, the share prices of some of the largest global weapons manufacturers have soared. The share price of Lockheed Martin, who make fighter jets used by Israel in Gaza has grown by 18%, while the price of RTX (another major US manufacturer) has risen by 43%.
Some KiwiSaver providers have invested in these companies, making money from weapons that have killed thousands of civilians.
Recent events have highlighted the connection between some KiwiSaver funds and companies producing weapons used in the Gaza conflict. If you're concerned about where your money is going, this guide will help you investigate and potentially make changes to align your investments with your values.
Why This Matters
Some of the weapons that have horrific impacts on civilians are now banned, but some aren’t. There is evidence that white phosphorus, which causes burning of flesh and life-long injuries, has been used by the Israeli military in Gaza. Bombs and other weapons have also been used in high density areas, killing and injuring thousands of civilians. Around 40,000 people have been killed in Gaza and around 1200 civilians in Israel.
Weapons can be used for purely defensive reasons, such as allowing Ukraine to defend itself against attacks by Russia. Unfortunately, it is not possible to take only the profits from the ‘good’ uses. Weapons companies are happy to sell to whoever will buy and weapons often end up in the hands of terrorists. Although NATO countries have some controls around export, weapons are still sold to regimes that use them in unjust conflicts, such as in Yemen, or in targeting areas with large numbers of civilians. In addition, weapons companies are also often linked to corruption due to the ‘incentives’ offered to encourage governments to procure from that company.
Some weapons are subject to international treaties such as the Convention on Cluster Munitions and the Anti-Personnel Mine Ban Convention which prohibit use by any nation. New Zealand is a signatory to these treaties and has passed laws banning use and making it illegal for NZ funds or individuals to make investments into companies which produce these weapons.
However, there are other weapons not covered by conventions that cause long-lasting pain and suffering. Depleted uranium causes damage to vital organs and increased rates of cancers in areas where used. White phosphorus (an incendiary substance) is used to create a dense smoke screen or to mark targets. It burns at extremely high temperatures, causing horrific pain and life-long injuries. There is evidence from Amnesty International and Human Rights Watch that Israel has used white phosphorus in conflicts in Gaza and Lebanon.
Other weapons are not classed as ‘controversial’, but the way they are used may breach the Geneva Convention protecting civilian rights and other international treaties on human rights. Heavy ‘dumb’ bombs, which have no targeting, cause widespread harm and destruction, especially when used in dense, urban areas. Even when sophisticated GPS guidance systems are used to guide missiles at specific targets, there is risk of civilians, paramedics, aid workers and others being killed or wounded when those targets are in high population areas.
Weapons like these have been used with devastating effect in densely populated areas in Gaza with around 38,000 people killed (87,000 injured) since the start of the conflict. Other weapons used by Hamas have also caused death and injury to people in Israel (1,200 killed and 8,700 injured).
Steps to Check Your KiwiSaver Investments
- Visit our Fund Checker: This free resource allows you to look up your KiwiSaver investments quickly and easily.
- Find your KiwiSaver provider: Select your current KiwiSaver fund from the list provided.
- Review the companies in your fund: The website will show you a breakdown of the companies your fund invests in, including any weapons manufacturers.
What Symbols to Look For:
Nuclear Weapons – Where companies are involved in the manufacturing or sale of nuclear weapons or components or services thereof.
Controversial Weapons - Where companies are involved in the manufacturing or retail of controversial weapons (e.g., landmines and cluster munitions) or components or services thereof.
Firearms - Where companies are involved in the manufacturing or retail of firearms, including guns, rifles, pistols, or components or services thereof.
Military Weapons - Where companies derive revenue from the manufacturing of weapons or weapon components and services to the defence industry. We do not include non-weapons-related military support.
Human Rights Abuses - War & Conflict – Where a company is complicit in its products or services enabling violations of the Geneva Convention and infringement of the rights of individuals in war or conflict situations.
Below there is a list of the companies supplying weapons or components used by the Israeli military in Gaza.
Taking Action
If you find that your KiwiSaver fund invests in weapons companies and you want to make a change:
- Research alternative funds that align with your values. We have created a Mindful Fund Finder tool, which will ask you questions about your values and match you with a fund that fits your criteria.
- We have listed all funds that have 0% holdings of weapons companies as of March 2024 here.
- Contact your KiwiSaver provider and let them know how you feel about their investments in weapons manufacturing companies.
- If your provider doesn't offer suitable options, consider switching to a different provider altogether.
Remember, your money has power. By making informed choices about your investments, you can ensure that your retirement savings are not hurting the planet, people or animals.
Weapons companies funded by NZ Retail Funds
| Companies supplying weapons or components used by the Israeli military in Gaza | NZ investment ($ million) at 31 March 2024 |
| BAE Systems: mobile artillery system. There is evidence this system was used to fire shells containing white phosphorus into Gaza. | 3.3 |
| Boeing: the largest supplier of weapons to Israel, particularly of missile guidance systems, as well as bombs and aircraft. | 9.3 |
| Elbit Systems: supplies weapons and surveillance systems, including drones. | 0.1 |
| General Dynamics: makes artillery ammunition, large bombs and warheads which may contain depleted uranium. | 3.8 |
| Honeywell: makes components for missiles and drones. | 8.1 |
| L3 Harris Technologies: manufactures components that are integrated into multiple weapons systems. Also makes weapons with depleted uranium (no evidence these have been supplied to Israel). | 3.2 |
| Leonardo: makes guns for navy ships. In October 2023, these guns were used to fire into Gaza. | 0.3 |
| Lockheed Martin: the world’s largest defence contractor. Makes the F-35 fighter jet and missiles which have been used in Gaza. | 5.9 |
| Northrup Gruman: provides missile delivery systems for helicopters and laser weapon delivery systems for fighter jets. | 4.0 |
| Oshkosh: makes trucks used by the Israel Defence Force. | 0.7 |
| Rheinmetall: supplies tank shells to Israel | 3.1 |
| Rolls-Royce Holdings plc: its German subsidiary, MTU, makes specialist engines for Israeli battle tanks. | 9.6 |
| RTX Corp: (formerly called Raytheon), makes missiles, sensors and communications kits. | 7.8 |
| Textron: supplies a range of aircraft to Israel | 1.2 |
| Woodward: makes components used in positioning systems. | 0.5 |
| TOTAL | $60.7 million |