Airbus Raises Alarm Over City’s Stance on Defence
Airbus is sounding the alarm, warning that investors who are avoiding defence stocks are undermining both the British industry and the long-term security of the country.
As the world’s largest plane maker employing 11,000 people in the UK, Airbus joins a chorus of companies and politicians urging the City to support the defence industry in light of the Ukraine war.
The British Government is growing increasingly concerned about large financial institutions refusing to back defence stocks due to their environmental, social, and governance (ESG) policies.
Concern: Airbus joins a chorus of companies and politicians urging the City to support the defence industry in the wake of the Ukraine war
In July, Andrew Griffith, the City Minister, and James Cartlidge, the defence procurement Minister, expressed their concerns over the “perverse” decision by some investors to shun or divest from security companies during a time of war in Europe.
‘It wasn’t that long ago that the defence industry was being labeled as ‘uninvestable’ by certain sections of the City due to ESG criteria,’ said Ben Bridge, the UK chairman of Airbus’s defence business.
Bridge mentioned that since Russia’s invasion of Ukraine, there has been some change, but there is evidence suggesting it hasn’t gone far enough.
‘Recent data from Morningstar showed that British defence companies continue to be sold off by UK investors, undermining both our industrial landscape and our sovereign capability,’ he added.
The UK’s defence industry employs around 130,000 people, with approximately 3,000 domestic companies within its supply chain.
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