Is ESG Really Blocking Europe’s Defence Investments?
As wars return to Europe’s borders, ESG frameworks have become an unexpected political target, accused of obstructing defence spending. But is ESG truly the problem, or does the real barrier lie in the need for transparency, disclosure, and alignment with international norms?
This briefing reflects on how European sustainable finance regulations, such as the Sustainable Finance Disclosure Regulation (SFDR), affect European defence investments, from controversial weapons bans to the regulatory grey zone around nuclear arms. It also discusses the legal and reputational challenges faced by the defence industry. As the defence sector grapples with these pressures, it must ask itself whether it’s truly prepared for the transparency ESG demands.
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About Minerva Briefings
Minerva’s regulatory briefings look at new and emerging issues from the UK and Continental European perspectives. Also Available:
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Last Updated: 7 July 2025