Divestment

Divesting in companies that make nuclear weapons is an effective way of educating the public about the nuclear weapons industry and putting economic pressure on companies that are in violation of the United Nations Treaty on the Prohibition of Nuclear Weapons (which entered into force in January 2021). Like the UN Treaty, divestment helps stigmatize nuclear weapons, and serve as a catalyst for their elimination.

In December 2021, NYC divested nearly $500 million of its pension funds in companies involved in nuclear weapon production and maintenance. See Susie Snyder’s testimony to the NYC City Council as they deliberated on whether to divest.

Thirteen other US cities have committed to nuclear weapon free investments and/or contracts since 1978. Unlike NYC, most cities’ pension funds are tied up in their state’s retirement/pension system e.g. CalPERS, so they have no ability to divest on their own. Instead, they have chosen to limit investments in US Treasury Bonds (which support nuclear weapons spending) and/or limit contracts to vendors with no ties to the nuclear weapons industry.

Slow and Steady Wins the Race

Convincing your City/County to limit investments in and contracts with nuclear weapons producers will take longer than simply asking them to call publicly for nuclear disarmament, but it is possible.

Investments

Ask your City/County to shift from US Treasury to Federal Agency Issues (which support homeowner and student loans) and Municipal Bonds. Oakland, CA and Berkeley, CA have shifted from US Treasury Bonds to Federal Agency issues because they are backed by the government and are as liquid and profitable as US Treasuries.

Contracts

End Contracts With Big Producers

Ask your City/County elected officials to end direct contracts with the 24 big nuclear weapon producers. Indirect ties between the tech industry and nuclear weapon manufacturers are difficult to target as most US cities use Microsoft software and computers developed by IBM, Dell, Apple and other companies that have Department of Defense contracts.

Be Flexible

Give your city or county the choice of how to limit contracts. You can ask City staff to vet every vendor competing for a contract as they do in Takoma Park, MD OR to only vet vendors competing for big contracts as they do in Madison, WI OR to require all vendors/contractors to sign a self-attestation saying they are not involved in nuclear weapons production as they do in Berkeley and Oakland.

Allow Waivers

Give the City the leeway to grant waivers re. investments/contracts if no “reasonable alternative” can be found or if the price of alternatives is prohibitive. All US cities with limits on nuclear weapon contracts have a provision for waivers.

Reassure City/County Officials and Staff

Have your City Finance Director speak to finance directors in other cities that have limited investments/contracts such as Madison, Oakland, Berkeley and Takoma Park. Assure your elected representatives and city staff that switching from US Treasury Bonds to Federal Agency issues would not put the City at risk financially. Agency issues are just as safe and as profitable as US Treasuries. Assure them that vetting companies/vendors competing for contracts will require minimal time by city staff. Madison WI only screens companies/vendors bidding on large contracts for ties to the nuclear weapon industry. Berkeley and Oakland city staff members do not screen themselves, but ask potential vendors to self-attest that they are not engaged in the manufacture of nuclear weapons. If they do not sign the self-attestation, then the city uses another vendor.