When the Financial Conduct Authority clarified earlier this year that ESG rules do not restrict investments in defence, firms received a clear signal any long-held investment taboo in the sector was now up for question.
Similar guidance from the European Commission last October has further contributed to this broader debate within investment circles: can defence be compatible with ESG? It is no longer an abstract question. Within the context of shifting global security, the war in Ukraine and economic volatility, the industry has somewhat shifted its perceptions of security. Defence, once a fixture on exclusion lists alongside tobacco and fossil fuels, is now being examined through a new lens: one that considers national security, democratic resilience and geopolitical responsibility as ESG-aligned o...
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