Defence and responsible investing

This decade is being reshaped by global conflict – from war in Europe and turmoil in the Middle East to growing tensions in the Pacific, which signals a return to Cold War-level geopolitical uncertainty.

Defence spending is on the rise, with European nations pledging significant military investments despite tight fiscal environments. Private capital is increasingly viewed as crucial to these efforts, but institutional investors, particularly those managing public funds, face a host of complex issues, including ethical dilemmas, stakeholder resistance and regulatory constraints. As the defence sector regains legitimacy, investors must engage with these sensitive challenges transparently and with full awareness of their deep human consequences.