The ESG arms race: How responsible investors are navigating defence

2025-07-16

Increasing geopolitical uncertainty and the USA's decreasing reliability as an ally has triggered a massive boost in global defence spending. As investment managers and asset owners look to capitalise on the new opportunities, this has led to a wave of fund launches and changes to exclusions policies across the market. In this episode, senior reporter Dominic Webb talks to deputy editor Elza Holmstedt Pell about the latest developments in the market, the regulatory backdrop and how ESG investors are changing their minds on...

Increasing geopolitical uncertainty and the USA's decreasing reliability as an ally has triggered a massive boost in global defence spending.

As investment managers and asset owners look to capitalise on the new opportunities, this has led to a wave of fund launches and changes to exclusions policies across the market.

In this episode, senior reporter Dominic Webb talks to deputy editor Elza Holmstedt Pell about the latest developments in the market, the regulatory backdrop and how ESG investors are changing their minds on defence.

Recent RI defence-related coverage includes:

French and passive investors make up most Article 9 defence investments
UK government and business call on investors to review defence exclusions
ESG exclusions not preventing European defence investments, say French investors
Pressure grows on UK LGPS funds over Israel divestment
Defence round-up: Sector ‘generally incompatible’ with use-of-proceeds bonds, says Principles chair

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