"More than a quarter of respondents believe defence investment will rise "much more" in the next 12 months. The findings mark a sharp pivot for the City after years in which environmental, social and governance (ESG) investing dominated boardroom thinking and defence was often treated as an ethical red line. That position is now rapidly eroding as security concerns move to the centre of economic and financial stability planning."
"Earlier this month, NATO secretary-general Mark Rutte warned that Russia could be in a position to attack a Nato member state within five years, citing Moscow's escalating covert and cyber activity across Europe. "Russia is already escalating its covert campaign against our societies," Rutte said. "We must be prepared for the scale of war our grandparents or great-grandparents endured." Putin has denied plans to wage war against Europe, but said Russia was prepared to act "right now" if it felt threatened."
The City of London is preparing to direct significantly more capital into defence as rising geopolitical tensions and the growing threat from Vladimir Putin's Russia prompt a rethink of investment priorities. Almost two-thirds of senior financial services leaders expect spending on Britain's military capabilities to increase over the next year, and more than a quarter expect a substantial rise within 12 months. The long dominance of ESG investing and ethical restrictions on defence allocation is eroding as national security and market integrity become central to financial stability planning. City leaders now rank defence investment above other strategic priorities.
Read at Business Matters
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