Fifty shades of grey: investing in arms and defence
A sensitive topic
“Geopolitical tensions boost the Dutch defense industry,” reported the NOS on May 28, 2024. Many institutional investors typically excluded arms manufacturers from their sustainability policies. Has that changed since the moment aggressor Russia invaded Ukraine in early 2022? Investing in weapons and/or the defense sector has always been a sensitive topic. It raises moral questions and emotions. In this article, we explain the dilemmas in the thought process. Spoiler alert: this is not a black-and-white story but an article with a broad palette of gray areas. Should pension funds invest in weapons and/or defense or not? And will defense fall under the S of ESG? At the end of this article, you will find a handy list of key points to consider.
A sensitive topic
“Geopolitical tensions boost the Dutch defense industry,” reported the NOS on May 28, 2024. Many institutional investors typically excluded arms manufacturers from their sustainability policies. Has that changed since the moment aggressor Russia invaded Ukraine in early 2022? Investing in weapons and/or the defense sector has always been a sensitive topic. It raises moral questions and emotions. In this article, we explain the dilemmas in the thought process. Spoiler alert: this is not a black-and-white story but an article with a broad palette of gray areas. Should pension funds invest in weapons and/or defense or not? And will defense fall under the S of ESG? At the end of this article, you will find a handy list of key points to consider.
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