Ministers warn Britain's security is at risk from virtue-signaling banks

Secretary of Defense James Cartlidge warned that investor aversion to the defense industry could undermine peace and stability. Credit: Chris McAndrew/UK Parliament

Andrew Griffith, city minister, and James Cartlidge, secretary of defense, argued that it was «evil» for investors to either deliberately discriminate against defense and security companies or take a «broad approach» to ethical investing at the same time. when British aid was crucial for Ukraine.

On Sunday, ministers wrote in the Mail: «The world needs defense and defense needs an industrial base.»

They added: «There is a worrying misunderstanding about the preferences of investors and the defense sector, which includes firms such as BAE Systems, Babcock and QinetiQ, which risks depriving the industry of capital at competitive valuations.”

BAE Systems, for example, makes tanks and munitions that played a vital role in the war against Russia.

However, a recent survey showed that almost two-thirds of institutional investors have already sold their stakes in security and defense companies for environmental, social protection and governance (ESG) reasons or are considering exiting these companies.< /p>

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The ministers wrote: «It is blindly obvious that all businesses rely on the peace and stability provided by the military and the industrial base that supports them… There can hardly be a greater or more positive social responsibility than investing in peace.» /p>

“If Russian tanks move further into Europe, the freedom we all take for granted will disappear. The sooner investors understand this and join in, the better.”

The comments come amid growing concerns about how banks and investment firms are applying ESG policies.

Earlier this month, The Telegraph reported that NatWest-owned Coutts had closed Nigel Farage's bank accounts after deciding his views were «not aligned with our values.»

A 40-page Coutts dossier, first published by The Telegraph, details why ESG policy means the company should no longer provide services to Mr. Farage.

The scandal led to the resignations of Peter Flavel, Coutts boss, and Dame Alison Rose, chief executive of NatWest. account.

Former Cabinet Minister David Davies criticized the companies fashion for «showing and signaling virtue», saying that so-called woke up capitalism «will be moving into a mad phase.»

G Mr. Griffith last week announced a crackdown on creditors who freeze accounts due to personal views of customers.The Telegraph reported this weekend that it is also considering extending the rule to businesses.