RE: Re-Annual Results7 Mar 2025 11:27
Sunshinedesserts
I'm only the messenger
https://www.telegraph.co.uk/business/2025/03/06/top-pension-funds-refuse-to-back-defence-industry/#:~:text=Aviva%2C%20Royal%20London%20and%20the,funds%20and%20offer%20customers%20choice.
Some of Britain’s biggest pension firms have been accused of blocking plans to boost defence in the wake of the Ukraine war.
Aviva, Royal London and the National Employment Savings Trust (Nest) are among a group of pension giants that restrict or block investment in the defence industry on “ethical” grounds.
The companies, which provide pensions to millions of Britons, say the restrictions apply to select funds and offer customers choice.
However, the fact that defence is excluded on claimed ethical grounds has alarmed ministers and is likely to provoke anger among some customers.
Rachel Reeves, the Chancellor, is understood to agree that investment in the British defence sector is ethical. She is working on plans to make it easier for investors to see if environmental, social and governance (ESG) funds exclude military spending.
A Treasury spokesman said on Thursday night: “If opaque ESG ratings are blocking vital private investment to our defence sector, this has to change.”
The spokesman did not refer to any specific companies, but ministers are understood to have concerns about the industry as a whole.
Sir Keir Starmer last week announced plans to increase government defence spending to 2.5pc of GDP to guard against “tyrants like Putin” in a move that it is hoped will boost both national security and growth.
The Prime Minister said: “The realities of our dangerous new era mean that the defence and national security of our country must always come first.”
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