Airbus is raising the alarm over City’s stance on defence
Airbus has warned that investors shunning defense stocks are undermining British industry and the country’s security in the long term.
The world’s largest aircraft maker, which employs 11,000 people in Britain, has joined a chorus of companies and politicians who have urged the city to support the defense industry in the wake of the war in Ukraine.
The government is increasingly concerned about major financial institutions’ refusal to back defense stocks due to their environmental, social and governance (ESG) policies.
Concerns: Airbus joins a chorus of companies and politicians who have urged the city to support the defense industry in the wake of the war in Ukraine
Andrew Griffith, the city’s minister, and James Cartlidge, the defense secretary, said in July it was “perverse” that some investors would shun or withdraw from security companies at a time of war in Europe.
“It wasn’t long ago that the defense industry was labeled ‘uninvestable’ by certain parts of town due to ESG criteria,” said Ben Bridge, the UK chairman of Airbus’ defense division.
Bridge said that since the Russian invasion of Ukraine, “some” of this has changed – but he added that there were indications this had not gone far enough.
“Recent data from Morningstar shows that UK defense companies continue to be sold off by UK investors, undermining both our industrial landscape and our sovereign capabilities,” he said.
The UK defense industry employs around 130,000 people and its supply chain includes around 3,000 domestic companies.