Question to the Ministry of Defence:

To ask the Secretary of State for Defence, what discussions he has has with the defence sector on the potential impact of environmental, social and governance policies on levels of divestment.

There is nothing contradictory between Environmental, Social and Governance (ESG) consideration and the defence sector. A strong national defence is a pre-requisite for the freedoms and aspirations that investors and financial services companies seek to address using ESG considerations.

The Government is committed to bringing forward a Defence Industrial Strategy which ensures the imperatives of national security and a high-growth economy are aligned. Through the Defence Industrial Strategy we will consider the impact of environmental, social and governance policies. The Ministry of Defence also strongly supports the introduction of the regulation of ESG ratings providers which will improve transparency and promote good conduct and address some of the issues which defence companies have raised.