Why Verve Super won’t invest in weapons companies
by Verve
Content warning: Sexual violence, armed conflict
Weapons manufacturers, whose businesses revolve around selling weapons to different governments, have broadly seen their share prices rise as war continues in Ukraine and the Middle East. War is good for business in the short-term for these private companies.
Women in war
Women and girls caught up in armed conflict experience increased sexual violence, physical and verbal abuse, exploitation, poverty and difficulty accessing basic resources, including healthcare and social services. Rape is frequently used as a weapon of war and oppression. The life-changing impacts on women include psychological trauma, sexually transmitted diseases, unwanted pregnancies and forced displacement.
A century ago, most casualties in war were military personnel, but in modern wars almost 90% are civilians, the majority women and children. Since war broke out in Gaza in October 2023, more than a million women and young girls have lost their homes, loved ones and way of life. More than 10,000 women have reportedly been killed, a further 19,000 injured and 3,000 widowed. An estimated 37 mothers are killed every day in Gaza.
Weapons investment investigated
At Verve Super, we do not invest in companies that manufacture weapons. We think screening out these companies is a simple decision; companies that manufacture bombs aren’t compatible with the future we want to see.
Our job is to protect your investments over the long term. Weapons companies can carry risks that share markets don’t always consider, so we think blindly following the herd and chasing returns by profiting off war, only to expose members to those risks, isn’t good business either.
The thing is, a lot of super funds in Australia do invest in weapons manufacturers.
A recent investigation from the ABC found that not only are super funds investing in weapons manufacturers, they’re doing so in the investment options they’ve labelled as “ethical” or “responsible”.
It just doesn’t make sense. Is there an ethical or responsible way to make a bomb that will kill women and children?
One of Australia’s largest super funds was found to be invested in a US company called General Dynamics. That company manufactures weapons, specifically it makes depleted uranium bullets designed to pierce armour and to be fired from weapons which fire more than 4,000 rounds per minute.
The super fund the ABC investigated was found to hold shares in General Dynamic in their “socially conscious” investment option. Depleted uranium bullets cause cancer when people are exposed to the dust they create on impact – doesn’t sound very socially conscious.
Keeping your super transparent
We think the ABC has done a brilliant job with this investigation. But you shouldn’t have to be an investigative reporter to work out what your super fund invests in. By law, super funds must disclose their investments on their website, but it can be tricky to read these disclosures.
At Verve Super, we believe in transparency without compromise. Head to vervesuper.com.au/ethical-investing for information about our screening and investment processes, including everything we invest in. Super is your money; you’re entitled to know what it’s up to!
The Forum of Australian Services for Survivors of Torture and Trauma (FASSTT) is a network of agencies that work with survivors of conflict overseas. If you or someone you know has been affected by overseas conflicts, help is available. Please reach out to the free, multilingual Witness To War hotline 1800 843 198. For sexual assault and violence support services, please visit 1800respect.org.au or call 1800 737 732.
