FOR IMMEDIATE RELEASE

MEDIA CONTACT: Sophia Wilson, swilson@asyousow.org, (341) 600-1832

BERKELEY, CA—JUNE 18, 2024—New analysis from As You Sow finds that employee retirement 401(k) plans are channeling hundreds of billions of dollars into military weapons manufacturers, including companies involved with nuclear arms, cluster munitions, and other controversial weapons. Every plan analyzed had companies linked to nuclear or controversial weapons in their top 100 equity holdings, with RTX Corp, Boeing, and GE Aerospace among the most frequent investments.

The analysis presents retirement plans of 55 major employers, including S&P 500 companies, including Disney, Microsoft, Comcast, and Target using company financial filings. Several healthcare and pharmaceutical companies are also covered. In total, these plans account for more than $1.2 trillion dollars in employee savings.

“Our Invest Your Values platform is helping employees discover that their retirement savings are being funneled into companies that manufacture weapons of mass destruction, and it’s happening on autopilot, without their knowledge,” said Andrew Behar, CEO of As You Sow. “Employees need to be aware of this practice. Most employees would like their retirement funds invested in companies that are building a better, more sustainable future rather than in war, death, and destruction.”

Considered particularly risky to sustainable investors are companies involved with nuclear weapons and other weapons that are prohibited by international treaties, including cluster munitions, incendiary weapons, and anti-personnel landmines. For example, Boeing and RTX Corp are involved in the production of U.S. nuclear-armed missiles. Both companies were among the top holdings of all the analyzed plans.

Investors also raise concerns about the humanitarian impacts of conventional military weapons, as well as potential violations of international human rights laws. Reporting from the New York Times has identified Boeing-made weapons used in recent attacks that killed civilians, including an Israeli airstrike on a United Nations-run school in central Gaza. Previous New York Times reporting has found that weapons made by Raytheon (now RTX Corp) were used in Saudi Arabian airstrikes that killed Yemeni civilians.

As You Sow’s analysis covers both stock and bond investments. For example, Disney and Target employees had a combined $479 million invested in military weapons manufacturers, with $456 million invested in weapons stocks and $24 million invested in weapons bonds. Corporate bond holdings are especially concerning because the proceeds can be used by military weapon manufacturers to expand production of arms and ammunition.

Investors have brought shareholder proposals to express their humanitarian concerns to arms manufacturers. A recent proposal at RTX Corp asked the company for a Human Rights Impact Assessment (HRIA) examining human rights impacts associated with high-risk products and services, including those in conflict-affected areas and/or those violating international law. Proposals at Lockheed Martin and Northrop Grumman asked the companies to report on possible misalignment between the companies’ political lobbying and their Human Rights Policies.

The new analysis was performed as part of As You Sow’s Weapon Free Funds, a tool built to help responsible investors prioritize peace and people over war and violence. It uses research from non-profits and ethical investment firms to identify investor-owned companies involved with arms manufacturing, which are then cross-referenced with the holdings of thousands of mutual funds and exchange-traded funds.

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As You Sow is the nation’s leading shareholder representative, with a 30-year track record promoting environmental and social corporate responsibility and advancing values-aligned investing. Its issue areas include climate change, ocean plastics, toxins in the food system, biodiversity, racial justice, and workplace diversity. Click here to view As You Sow’s shareholder resolution tracker.