Europe: Investor relationships with ESG and the defence sector shaken by Ukraine conflict

Investors are rolling back their decisions to remove defence stocks from sustainable funds due to security concerns caused by geopolitical tensions related to the Russia-Ukraine conflict.

This comes after years of accepted thought on the behalf of investors to exclude controversial defence stocks from ESG funds believed to be part of an unethical arms trade.

Now it is believed that such companies should be readily able to access capital to help them fulfil their defensive obligations.


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