FCA: Defence companies allowed to receive funds labelled as ‘sustainable’
ESG fund labelling rules “do not prescribe which activities or investments are sustainable”.
The Financial Conduct Authority has issued a statement clarifying that its sustainable investment rules do not prevent financial institutions from working with defence companies.
As geopolitical tensions drive higher defence spending across Europe, the UK’s financial regulator has made its position clear: no financial institution will be punished for funding arms companies, even as part of their sustainable finance activities.
