Kiwi investors are funding over $60 million of weapons used in Gaza

Media Release
Kiwi investors are funding over $60 million of weapons used in Gaza

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. Kate Vennell, Mindful Money co-CEO explained: “our annual surveys show that most Kiwis don’t want to make money out of the misery and suffering of others. Weapons are high on the list of issues that most Kiwis want to avoid in their investments.”

But KiwiSaver investors aren’t told about the companies they invest in when they sign up for a KiwiSaver fund. Few Kiwis realise that their funds are invested in weapons. Now, ethical investment charity, Mindful Money has provided a free and easy way for Kiwis to find out. It is quick, easy and free to check which companies are in their fund, including those on the list below and to find a weapons-free fund.

Here is a guide of how to check your fund for investments in companies supplying weapons or components used by the Israeli military in Gaza. 

Barry Coates, co-CEO of Mindful Money explains: “Anyone with a KiwiSaver fund can go and look up their KiwiSaver investments on the Mindful Money website. It is quick, easy and free for them to see the companies they invest in. They can then choose whether they want a fund that invests in weapons used in Gaza or whether they want to shift to a weapons-free fund.” 

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.

Kate Vennell observed: “The evidence shows that, over the long run, investing ethically provides returns that are at least as high as conventional investing, usually with lower risk. However, there are times when wars and conflicts provide short term profits. We are currently seeing many fund managers chasing those sugar-hit returns, even if they extract a high human cost.”

Barry Coates concluded, “Over the past five years, we have seen a huge change in investing. More KiwiSaver and investment fund managers are saying they are ethical, or sustainable or using ‘ESG policies’. But the objective test is where they invest our money. Investing in weapons companies that profiteer from unjust wars is deeply offensive to most Kiwis.” 

Background on weapons

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). 

Kiwis can choose not to invest in weapons

Aside from political action to call for stronger arms control and a just peace, Kiwis can take action through their KiwiSaver fund and other investments. Most New Zealanders do not want their money to be used to invest in weapons. However, very few KiwiSaver providers provide a full list of the companies they invest in. This has prompted the charity, Mindful Money, to provide transparency on where Kiwi’s hard-earned savings are invested. Members of the public can now fund out, for free, where their money is invested by looking on the Mindful Money website. 

Mindful Money has undertaken research into the links between NZ managed funds (KiwiSaver and investment funds) and the weapons companies that are supplying weapons into the conflict in Gaza. Hamas gets most of its weapons from Iran, transported through Egypt and smuggled into Gaza through tunnels. There appears to be no direct financing from New Zealand investors towards weapons used by Hamas.

However, NZ KiwiSaver and investment funds still invest in global weapons companies, despite evidence that most Kiwis do not want to invest in companies that cause suffering and breach human rights standards. Reports from reputable media sources and international humanitarian organisations, including American Friends Service Committee, a Quaker organisation and the UK-based Action on Armed Violence (AOVC), reveals an extensive list of companies that produce weapons used by the Israeli military in Gaza.

Weapons companies funded by NZ Retail Funds