‘By sending weapons, parts, components and ammunition to Israeli forces,’ the above risk being ‘complicit in serious violations of international human rights laws,’ UN experts warn
STATES and companies must end arms sales to Israel immediately or risk responsibility for human rights violations, UN experts have warned.
The transfer of weapons and ammunition to Israel may “constitute serious violations of international humanitarian laws and risk complicity in international crimes, possibly including genocide,” UN Special Rapporteurs for the Human Rights Council said in a statement on Thursday night.
The experts also called on BAE Systems, Boeing, Caterpillar, Lockheed Martin, Rolls-Royce Power Systems, and many other arms firms to end sales to Israel even if they have been granted licences to do so.
“These companies, by sending weapons, parts, components and ammunition to Israeli forces, risk being complicit in serious violations of international human rights and international humanitarian laws,” the experts said.
“This risk is heightened by the recent decision from the International Court of Justice ordering Israel to immediately halt its military offensive in Rafah, having recognised genocide as a plausible risk, as well as the request filed by the prosecutor of the International Criminal Court seeking arrest warrants for Israeli leaders on allegations of war crimes and crimes against humanity,” the statement said.
“In this context, continuing arms transfers to Israel may be seen as knowingly providing assistance for operations that contravene international human rights and international humanitarian laws and may result in profit from such assistance.”
The experts also warned that financial institutions investing in arms companies could also be held accountable, and called on Bank of America, BlackRock, Citigroup, JP Morgan Chase, Morgan Stanley, and many others to take urgent action.
“As the Biden administration attempts to deny the death toll of Israel’s campaign of mass murder in Gaza and sell genocide as a stimulus for the U.S. economy, these are the death merchants profiting from the war machine.”
With more than 7,300 Palestinians killed so far in Israel’s three-week bombardment of Gaza, a series of reports this week have exposed how U.S. weapon-makers and billionaire donors are enabling what legal scholars say could amount to genocide.
After Israel declared war in response to Hamas killing over 1,400 Israelis and taking around 200 hostages, the stocks of major American and European war profiteers soared. A Thursday report from Eyes on the Ties—the news site of LittleSis and Public Accountability Initiative—targets five U.S. firms with a record of providing weaponry to Israel.
The outlet stressed that while announcing a supplemental funding request that includes $14.3 billion for Israel, U.S. President Joe Biden last week “invoked ‘patriotic American workers’ who are ‘building the arsenal of democracy and serving the cause of freedom,’ but it’s the defense company CEOs who rake in tens of millions a year, and Wall Street shareholders, who are the real beneficiaries of warmongering.”
The five targeted industry giants collectively recorded $196.5 billion in military-related revenue last year, Eyes on the Ties reported. They are Boeing ($30.8 billion), General Dynamics ($30.4 billion), Lockheed Martin ($63.3 billion), Northrop Grumman ($32.4 billion), and RTX, formerly Raytheon ($39.6 billion).
“The top shareholders in these five defense companies largely consist of big asset managers, or big banks with asset management wings, that include BlackRock, Vanguard, State Street, Fidelity, Capital Group, Wellington, JPMorgan Chase, Morgan Stanley, Newport Trust Company, Longview Asset Management, Massachusetts Financial Services Company, Geode Capital, and Bank of America,” the news outlet noted.
Eyes on the Ties also highlighted how chief executives are handsomely compensated—and the CEOs’ ties to Big Pharma, the fossil fuel industry, Wall Street, and foreign policy think tanks such as the Council on Foreign Relations and Center for Strategic and International Studies.
According to the report:
Boeing CEO David Calhoun took in over $64 million in total compensation from 2020-22 and as of February held 193,247 shares;
General Dynamics CEO Phebe N. Novakovic took in over $64 million in total compensation from 202-22 and as of March held 1,616,279 shares;
Lockheed Martin CEO Jim Taiclet took in over $66 million in total compensation from 2020-22 and as of February held 56,054 shares;
Northrop Grumman CEO Kathy J. Warden took in over $61 million in total compensation from 2020-22 and as of March held 161,231 shares; and
RTX CEO Gregory J. Hayes took in over $63 million in total compensation from 2020-22 and as of February held 801,339 shares.
Other reporting this week has taken aim at those CEOs for their suggestions that Israel’s assault on Gaza is good for business.
During Lockheed Martin’s latest earnings call, Taiclet correctly predicted Biden’s request last week, saying that “there continues to be the option… for supplemental requests related to support Ukraine, Israel, and potentially Taiwan.”
In addition to the request for Israel—which already gets nearly $4 billion in annual U.S. military aid—Biden asked for $4 billion to counter Chinese influence in the Indo-Pacific region and $61.4 billion more for Ukraine, which is battling a Russian invasion.
“We are all witnessing significant geopolitical tensions across the globe, including the ongoing war in Ukraine and the horrific attacks in Israel,” Warden said during Northrop Grumman’s Thursday earnings call, according toVICE. “As we saw last week, the [Biden] administration continues to make supplemental requests for urgent needs, including those in Ukraine and Israel, to include investments in weapons systems and defense industrial base readiness.”
“The Israel situation obviously is a terrible one, frankly, and one that’s just evolving as we speak,” said Jason Aiken, chief financial officer and executive vice president at General Dynamics, on Wednesday. “But I think if you look at the incremental demand potential coming out of that, the biggest one to highlight and that really sticks out is probably on the artillery side.”
He continued: “Obviously that’s been a big pressure point up to now with Ukraine, one that we’ve been doing everything we can to support our Army customer. We’ve gone from 14,000 rounds per month to 20,000 very quickly. We’re working ahead of schedule to accelerate that production capacity up to 85,000, even as high as 100,000 rounds per month, and I think the Israel situation is only going to put upward pressure on that demand.”
Last week, roughly 100 activists gathered outside of General Dynamics’ weapons plant in Pittsfield, Massachusetts, to protest the Israeli war, holding signs with slogans like, “Genocide: Brought To You By General Dynamics.”
Both The Lever and VICE also pointed out that during RTX’s Tuesday call, Hayes started by “acknowledging the tragic situation playing out in Israel” before turning to “an update on our end markets.”
If Congress approves Biden’s request for Israel, VICE explained, “some of the money would be used to restock Israel’s Iron Dome rocket defense system, which RTX manufactured.” Hayes said: “I think really across the entire Raytheon portfolio, you’re going to see a benefit of this restocking. On top of what we think is going to be an increase in [U.S. Department of Defense] top line.”
It’s not just defense executives enabling Israel’s mass slaughter of civilians in Gaza. As Eyes on the Ties reported, “Lobbying groups including the American Israel Public Affairs Committee (AIPAC) and Democratic Majority for Israel have been active in Washington, calling on lawmakers to send money and weapons to Israel.”
The report names some billionaire donors to the lobbying groups, including New England Patriots and the Kraft Group CEO Robert Kraft, private equity investor Marc Rowan, venture capitalist Gary Lauder, hedge fund managers Daniel Loeb and Paul Singer, and Home Depot co-founder Bernard Marcus, who is also the founding president of the Israel Democracy Institute.
U.S. Rep. Summer Lee (D-Pa.) said Wednesday that Americans “know that funneling billions more dollars into arms dealers’ pockets won’t keep our children safe from weapons of war at home or across the world. It won’t keep our loved ones safe from toxins in our air and drinking water. They know that lining the pockets of weapons manufacturers won’t help families struggling to afford housing, medicine, or grocery costs. They know defense contractors won’t safeguard Medicare and Social Security or shield our communities against the climate crisis.”
Unlike the CEOs of firms like Lockheed Martin and RTX, “moms who can’t afford childcare, young folks who can’t pay off their debt, veterans who can’t keep up with housing costs, and children who go to school hungry don’t have million-dollar lobbying budgets,” added Lee, one of the few members of Congress pushing for a cease-fire in Gaza. “So it’s up to us to stand up for their needs.”
Any climate commitment from a bank that is still financing fossil fuel expansion is greenwashing, pure and simple,” said a Stop the Money Pipeline campaigner.
Taking aim at Wall Street banks financing the oil, gas, and coal extraction fueling the climate crisis, a coalition of institutional investors on Tuesday announced the filing of climate-related shareholder resolutions in an effort to force “more climate-friendly policies that better align with” the firms’ public commitments to combating the planetary emergency.
In the resolutions, members of the Interfaith Center on Corporate Responsibility (ICCR) and Harrington Investments asked six banks—Bank of America, Goldman Sachs, JPMorgan Chase, Morgan Stanley, Citigroup, and Wells Fargo—to enact policies phasing out fossil fuel finance, disclose plans for aligning their financing with their stated near-term emissions reduction goals, and to set absolute end-of-decade emissions reduction targets for their energy sector financing.
Shareholders also filed climate resolutions at four companies—Chubb, Travelers, The Hartford, and Berkshire Hathaway—that insure fossil fuel projects.
“Each of the major banks has publicly committed to aligning its financing with the goals of the Paris agreement to achieve net-zero emissions by 2050, a target widely considered imperative to avoid catastrophic climate impacts and financial losses,” ICCR said in a statement. “Scientific consensus shows that new fossil fuel expansion is incompatible with achieving net-zero by 2050, yet these banks continue to invest billions of dollars each year in new fossil fuel development—a fact corroborated by a new Reclaim Finance report released last week.”
As Stop the Money Pipeline—a coalition of over 200 groups seeking to hold “financial backers of climate chaos accountable”—noted:
A slate of resolutions calling for policies to phase out financing for fossil fuel expansion was filed by the same investors at U.S. banks in 2022. They received between 9% and 13% support, which was a significant milestone for these first-of-their-kind proposals. This year’s fossil fuel financing proposals have been updated to encourage banks to finance clients’ low-carbon transition so long as those plans are credible and verified. The previous resolutions were supported by many major institutional investors, including the New York State and New York City Common Retirement Funds.
New in 2023 are the resolutions on absolute emissions reduction targets for energy sector financing filed by the New York City and New York State comptrollers, and the resolutions calling for disclosure of climate transition plans filed by As You Sow. The day before the resolutions were filed, Denmark’s largest bank, Danske, announced a phaseout of corporate financing for companies engaged in new coal, oil and, gas development.
“Any climate commitment from a bank that is still financing fossil fuel expansion is greenwashing, pure and simple,” Arielle Swernoff, U.S. banks campaign manager at Stop the Money Pipeline, said in a statement. “By supporting these resolutions, shareholders can hold banks accountable to their own climate commitments, effectively manage risk, and protect people and the planet.”
Dan Chu, executive director of the Sierra Club Foundation—which led the filing at JPMorgan Chase—lamented that “all major U.S. banks continue to finance billions of dollars for new coal, oil, and gas projects every year. Such financing undermines the banks’ net-zero commitments and exposes investors to material risks.”
“These shareholder resolutions simply ask banks to align their promises with their actions and to adopt policies to phase out the financing of new fossil fuel development,” Chu added.
Referring to a warning from the International Energy Agency, Kate Monahan of Trillium Asset Management—which spearheaded the Bank of America filing—said that “we will not be able to achieve the Paris agreement’s goal of limiting warming to 1.5°C if banks continue to finance new fossil fuel exploration and development.”
“Bank of America has publicly committed to the Paris agreement but continues to finance fossil fuel expansion with no phaseout plan, exposing itself to accusations of greenwashing and reputational damage,” Monahan contended. ” By continuing to fund new fossil fuels, Bank of America and others are taking actions with potentially catastrophic consequences.”
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