Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, if he will make an assessment of the potential impact of environmental, social, and governance criteria on the financing of (a) small and medium-sized enterprises and (b) other defence companies.

The Secretary of State for Business and Trade met representatives of the defence and financial services industries on 12 December 2024, to discuss how environmental, social and governance (ESG) principles are being applied to companies in defence and the impact they are having on investment and access to financial services. The discussion highlighted that there are multiple stakeholders and issues within the sectors and within government. The Department is now following up on that discussion across government and wider to find the best way to address them, to ensure that ESG policies do not have unintended consequences for the health of the defence sector.