European sustainable investment funds are financing weapons companies used in current wars.
In Europe, “sustainable” investment funds direct money towards environmentally and socially responsible activities.
But some of these sustainable funds are financing weapons companies used in current wars, such as in Gaza.
An investigation shows that there is a legal loophole. The European regulatory framework practically does not limit the presence of the military sector in financial products with a green seal.
The explains that European Union rules consider only certain types of controversial weapons harmful: anti-personnel mines, cluster munitions or chemical and biological weapons.
But there are weapons that do not make this list: tanks, armed drones or conventional ammunition. And so, companies that manufacture this type of material receive money from “sustainable” funds.
Examples of companies: Elbit Systems, Bet Shemesh Engines and FMS Enterprise Migun – which have weapons used in recent conflicts, including in Gaza.
And it’s a profitable business: since the war in Gaza began in October 2023, Elbit Systems’ shares have doubled. This year alone, 22 million euros of European funds went to this company.
