Global threats: There are concerns that arms manufacturers are being excluded from accessing funds
Last night ministers backed investment in Britain’s defense sector in a rebuke to the woke agenda of some investors who have rejected it.
In a joint statement, the Treasury and the Investment Association, the trade body for the asset management industry, said the defense industry supported sustainable investing amid growing global threats.
There are concerns that arms manufacturers are being excluded from accessing funds by investors citing environmental, social and governance (ESG) issues.
The Russian invasion of Ukraine, the conflict in the Middle East and tensions between China and Taiwan have pushed Western governments to put a renewed focus on defense spending.
The joint statement said: “Investing in defense companies contributes to our national security, defends the civil liberties we all enjoy, while generating long-term returns for pension funds and retail investors.”
‘That’s why the UK’s world-leading investment management industry supports our defense sector, and members of the Investment Association have invested £35 billion in UK defense companies.
“Investing in good, high-quality and well-managed defense companies is compatible with ESG considerations, as long-term sustainable investing is about helping all sectors and all companies in the economy to succeed.”
And Prime Minister Rishi Sunak said he would increase defense spending to 2.5 per cent of national income to reach £87bn a year by 2030.