Europe’s ‘Green’ Agenda Could Be a Godsend to Russia

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NATO and defense industry leaders, including BAE Systems, have expressed concerns that environmental, social, and governance (ESG) criteria are restricting investments in Europe’s defense sector. Admiral Rob Bauer criticized financial institutions for denying support to defense companies due to moral and ESG concerns, warning this undermines Europe’s military readiness amid rising security threats. BAE Systems and Saab highlighted that ESG restrictions hinder investment in critical skills, technologies, and innovation, while smaller supply chain businesses face even greater financial challenges. Bauer proposed reevaluating credit rating criteria, suggesting defense investments be treated with the same urgency as climate change mitigation. As Europe increases military spending to counter threats from Russia and others, defense leaders caution that regulatory reform is crucial to avoid falling behind in defense capabilities.

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