In the past, defense stocks were considered by many to be at least morally questionable. Then came the Ukraine war and some investors changed their minds. Michael Heumann, business ethicist and ethics analyst for the asset management firm Arete Ethik Invest in Zurich, explains in an interview how one can argue for or against investing in weapons – and what judgment he comes to about Rheinmetall and Co. for his company.
WirtschaftsWoche: Mr. Heumann, the shares of the Düsseldorf arms manufacturer Rheinmetall have developed splendidly recently. Let’s assume the stock now lands on your table for consideration. What do you do?
Michael Heumann: Suppose the portfolio management came to us saying they were interested in Rheinmetall, the shares ultimately went through the roof, that would be financially worthwhile. Then this question goes to us ethics analysts. We work with so-called positive criteria and evaluate a sense of responsibility, ecological and social aspects and some other criteria. At the end there is a score. If a company has achieved at least 50 out of 100 points and does not violate any exclusion criteria, we can send the proposal to an independent ethics committee – where it also has a chance of success. The committee then discusses the proposal and makes the decision.