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UK FCA Says that Defence Companies Can Be Treated

UK FCA Says that Defence Companies Can Be Treated as "Sustainable", Trending Now in ESG

March 19, 2025 Reprint

The FCA has put out an interesting statement essentially supporting investment and lending to companies in the defence sector. Some investors routinely exclude defense companies from their investment criteria, whether for sustainability or ethical concerns or otherwise. However, presumably in response to geopolitical events, the FCA now appears to be giving the UK financial sector the green light to support defence companies without fear of being subject to regulatory criticism, and potentially opening the door for defense company shares to be included within funds marketed as being “sustainable”.  

The FCA statement finishes by highlighting that transparency remains key: “Rightly, it is up to individual lenders and investors whether they provide the capital defence companies need. Some consumers will also want options to invest in line with their ethical values, so it is important they have the freedom to make choices about where they invest their money.”

The FCA statement is here: https://www.fca.org.uk/news/statements/our-position-sustainability-regulations-and-uk-defence 

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