Australia’s Future Fund bans investment in Israeli defence contractor over cluster munitions allegations

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Norway’s largest pension fund KLP also excludes Israeli defence contractor, Elbit, from its portfolio

Government tender data shows that Elbit, which employs the former minister for defence Christopher Pyne as a lobbyist, is a major supplier to the Australian defence force, winning more than $1.8bn of work since 2007. This includes a controversial battle management system, designed to keep commanders in touch with troops in the field. The army last year ordered troops to stop using the system amidamong soldiers. Elbit has consistently denied there are any security issues with its system.

The Future Fund declined to explain in detail why it last year excluded Elbit from investment, with a spokesperson saying the decision was based on data that could not be passed on to Guardian Australia because it was the intellectual property of a third-party information provider company.released in November, KLP said it was excluding Elbit Systems from its investments because “it is clear that the company produces cluster munitions”.

Asked why KLP did not believe Elbit’s denials of involvement in cluster munitions, she said: “We relied on information we have from MSCI as our data provider which is quite updated.” “They have now also been excluded under our criterion of involvement in controversial weapons. The reason why we exclude companies with reference to several criteria when they have already been excluded, is that all the reasons are important to state, and that we do not want to risk the companies being included in the portfolio again if the first exclusion basis ceases.”

 

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