Kbc Makes Investments in Defense Industry More Accessible

Bank and insurer KBC has adjusted its policy and no longer excludes investments in nuclear weapons manufacturers. The change is a result of the need for Europe to become responsible for its own nuclear defence.

Previously, investing in defense companies was at odds with the sustainability policies of many couchesHowever, recent developments in Ukraine have led to a reassessment within the sector.

Last year, KBC changed its position and decided to allow financing, insurance and advice to defence companies and arms industry activities. The requirement is that these are companies that are established in one of KBC's home markets, and that the sales are intended for armies and police services in NATO countries or Ukraine. Internationally banned or controversial weapons remain excluded.

New policy adjustment

A year later, KBC has again adjusted its policy and now also allows investments in companies that generate income from the production or maintenance of nuclear weapons. However, nuclear weapons specialists from outside NATO countries and from outside Switzerland, Austria and Ireland remain excluded.

“Companies that are exclusively involved in the production of nuclear weapons are no longer excluded,” confirms Filip Ferrante, head of sustainability at KBC. He emphasises that companies involved in the production of controversial weapons are still excluded. These include cluster munitions, biological or chemical weapons and anti-personnel mines.

These restrictions are imposed by the sofa however, not imposed on its clients. Investors who manage their own portfolio at KBC can therefore still trade in shares of companies that are on the group's blacklist.

The three other major Belgian banks – BNP Paribas Fortis, ING Belgium and Belfius – also distinguish between conventional and controversial weapons in their defence policy.