Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, whether he has had discussions financial institutions on the potential impact of environmental, social and governance policies on the provision of banking services to defence (a) manufacturers and (b) suppliers; and what steps he is taking to ensure that legally operating defence firms have full access to financial services.

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.