Has war changed the rules on sustainable investing?

Earlier this year Swedish bank SEB announced it was reversing a blanket ban on the defence sector.

This change to its sustainability policy, sparked by Russia’s invasion of Ukraine, may only have applied to a handful of its funds, but was nonetheless significant.  

The decision (and others like it) reopened a debate on the rights and wrongs of putting your money into weapons manufacturers and other associated businesses.

Investors often view defence as a ‘no-go area’, up there alongside tobacco or oil and gas. But, as governments increase defence spending, shares in defence-related companies have soared.  

And there’s even suggestion from some quarters that these stocks could be unlikely, but legitimate, targets for investors interested in environmental, social and governance factors, aka ESG. Has war really changed the rules on sustainable investing?

Do weapons have a place in ESG? Read more on Nucleus’s illuminate blog.