Report lists financial institutions involved in financing cluster bombs

Photo: a deminer looking for explosive remnants of war in Bosnia.

A new report from the Dutch civil society group, PAX, states that four Canadian financial companies – CI Financial, Manulife Financial, Royal Bank of Canada and Sun Life Financial jointly invested US$565 million in cluster munitions producers between June 2012 and April 2016.

The report says Canada is one of seven countries which have signed on to the Convention on Cluster Munitions (CCM) where financial institutions have put money into the production of cluster bombs. France, Germany, Japan, Spain, Switzerland and the United Kingdom do the same.

There is good news though – globally, 38 financial institutions are listed in the report’s so-called Hall of Fame for no longer investing in cluster munitions producers. NEI Investments is the first Canadian financial institution to be included in the Hall of Fame list.

“We think that many more Canadian financial institutions can and should be in the Hall of Fame, said Paul Hannon, executive director of the Ottawa-based NGO, Mines Action Canada (MAC), in an email interview. “NEI Investments has hopefully started a trend in Canada with the comprehensive policy that covers all their operations.

Mr. Hannon said MAC has met with Members of Parliament about the issue of financing cluster bombs and is hoping the Liberal government will provide more clarity for financial institutions.

“The message to all MPs is that the world needs more from Canada on this issue,” said Mr. Hannon. “While we would like to see the existing legislation in Canada improved there are many steps the government can make as well that don't require legislative changes. Now is the time to make those policy and practice improvements.”

Cluster munitions have been banned since 2010. Since then, the international NGO community has been trying to stigmatize the use of cluster bombs by countries outside the treaty. This report will further add to that stigmatization.

In 2015 - 2016, 91 per cent of all know cluster munition casualties in Yemen were civilians; of those 22 per cent were children. 

In addition, Mr. Hannon is hoping the Liberal government increases funding to mine action after several years of neglect by the previous government.

“Mines Action Canada has always called for Canada to be a top-five donor to mine action – it is called the Ottawa Treaty after all – and suggest that a dollar per Canadian per year would be an appropriate level to ensure that top-five placing. It has been done in the past so we are hopeful the Trudeau government will start to move towards those levels,” said Mr. Hannon.