Question to the Ministry of Defence:

To ask the Secretary of State for Defence, with reference to the consultation entitled UK Green Taxonomy, published on 13 November 2024, if he will make an assessment of the potential impact of a green taxonomy on trends in the level of divestment in the defence sector.

The proposed green taxonomy aims to promote market integrity and transparency, and mobilise further investment to help the UK achieve its sustainability goals. This Government has been clear that we see no conflict between sustainable investment and investment in our world-leading defence sector, of which we are rightly proud.

The Defence Industrial Strategy Statement of Intent, published in December 2024, identified the ‘crowding-in’ of private sector investment as critical to the Government’s agenda to grow our economy and strengthen our nation’s defences.

The Trade Association ADS recently released their first defence Environment, Social and Governance Charter Report, highlighting the positive contribution that the defence industry is making to supporting our environment and our communities.