Europe has been the dominant authority in shaping ESG guidelines around the globe, however, Russia’s invasion of Ukraine is bringing weapons to the forefront of ESG labeling. The bloc is redefining its ESG rules and the no-brainers include rules on gender pay equity, humane supply chains, and banning cigarettes and goods produced from forced labor. While there is hot debate on weapons German defense lobby group BDSV is pushing hard for the case as to why weapons are part of ESG. They are making the case that a strong defense is critical to the governance component of ESG. There is a willingness to hear these arguments by ESG labelers and it is being put under fair consideration.
FINSUM: Euro area defense companies have had a huge boost in the last couple of weeks and securing ESG financing could be pivotal to their future.
- esg
- ESG risk
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