UK Government Presses Banks to Back Defence Industry Despite ESG Concerns

Ministers argue that ethical investment policies are hindering support for a sector critical to national security and economic growth.

Business Secretary Jonathan Reynolds and Defence Procurement Minister Maria Eagle are urging financial institutions to increase support for the UK defence sector.
A meeting with defence and finance leaders is addressing how environmental, social, and governance (ESG) principles are impacting investment in defence companies.
Small and medium-sized defence firms report difficulties accessing banking services, with some accounts closed due to ESG-related concerns.
Ministers emphasize the importance of the defence industry for national security, economic growth, and high-skilled employment across the UK.
Industry leaders warn that ESG-driven hesitancy to invest in defence could harm the sector's ability to innovate and respond to growing global threats.