Question to the Ministry of Defence:

To ask the Secretary of State for Defence, what assessment he has made of the potential impact of (a) Environmental, Social and Governance, (b) green finance and (c) net zero on levels of (i) divestment and (ii) debanking of (A) defence companies and (B) weapons manufacturers; and whether he has held discussions with his NATO counterparts on this matter.

This Government is clear that we see no conflict between sustainable investment and investment in our world-leading defence sector. The Defence Industrial Strategy Statement of Intent, published in December 2024, identified the mobilisation of additional private sector investment as essential to the Government’s agenda to strengthen our nation’s defences and grow our economy. We welcome the forward-leaning approach taken by industry in this area. 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.

We recognise that access to finance, including being able to open a bank account or secure a loan, can be a problem for smaller Defence suppliers. We continue to consult widely with defence and financial services stakeholders on tackling barriers such as these, so that we can meet our ambitions for a better, more integrated, more innovative and more resilient defence sector.

We continue to work closely with our partners in NATO across the full range of issues relevant to our collective security.