Pension committees in the north and north-east have invested more than £1million in arms manufacturers in the last decade.
Documents released under the freedom of information legislation have shown the North East Pension Committee – administered by Aberdeen City Council – held a £1,001,187 stake in defence and technology firm Lockheed Martin until March this year.
The body – which is also made up of members of Aberdeenshire and Moray councils – also traded in shares in BAE systems between 2006 and 2009, which were eventually sold for £1,011,933.
The Highland Council Pension Fund also held an investment of £398,000 in Lockheed Martin in December last year.
Last night the revelations were described as “disturbing” and calls were made for a ban on arms investments.
Andrew Smith, of the Campaign Against Arms Trade, said: “BAE and Lockheed Martin have profited from arming some of the most oppressive dictators and human rights abusers in the world.
“Local authorities should be striving to promote the social good and leave as positive a footprint as possible.
“The North East Scotland and Highland Pension Funds should lead by example.
“It should put people first and adopt an ethical investment policy.”
Both companies are also involved in the construction of the UK’s trident missile defence system – which MPs will vote on whether to renew this week.
Callum McCaig, MP for Aberdeen South, also called for a ban.
He said: “I think it’s disturbing that North East Pension funds in investing in arms dealers, and most people would find this shocking and upsetting.
“People will expect these funds to be investing responsibly.
“When I was on the council I made calls for better investment.
“I called for it to be used to build low-cost housing in Aberdeen but instead it is going to build bombs instead.
“As we are preparing to spend hundreds of billions on nuclear weapons it adds to the situation further.
“Aberdeen City Council should put a ban on investment in arms companies.”
Councillor Barney Crockett, who convenes the north-east’s pension fund, said some investments presented “difficult choices” but members used votes to encourage “high standards of corporate social responsibility.”
A spokeswoman for Highland Council said: “The council has instructed the investment managers to take into account the key principles of socially responsible investment, primarily through a policy of engagement with companies that demonstrate appropriate observance of these principles.”
