Research
Market context

Considerations about ESG in the defence industry

March 2024

The importance of environmental, social and governance (ESG) criteria has increased among defence companies seeking funding, and ESG compliance is now often required for tenders and contracts.

However, the defence industry remains skeptical, as highlighted in the 33rd SERA course, with member states such as France raising concerns in parliament about categorising the sector as non-sustainable. Nevertheless, a PWC report shows that 80 percent of commercial banks have integrated sustainable financing into their strategies, viewing ESG regulations as an opportunity.
Both ESG and the defence industry carry complex implications, with the former aligned with positive environmental and social actions and the latter often associated with negative connotations because of its ties to war. The report aims to address inconsistencies in ESG exclusion policies to demonstrate the defence sector's potential for ESG compliance.

In this research you will learn more about:

  • Common perceptions regarding investment in the defence sector
  • Difficulties in understanding ESG in the defence industry
  • The role of ESG by design to improve compatibility between ESG and the industry
  • How to apply ESG criteria correctly
  • How to design a risk mapping for ESG

 

About Klecha & Co.

Klecha & Co. is a European private investment bank focused on technology, software, IT services, hardware and IoT, helping entrepreneurs, companies and financial investors with their strategy definition and post-acquisition integration issues, as well as for raising the necessary capital to execute their strategies.

With over 14 years in the market and offices in Milan, London, Paris, Madrid and New York, we have demonstrated global execution capabilities and a network of thousands of active C-level contacts and hundreds companies worldwide in the Tech industry.

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