Key facts:
Before the war in Ukraine, the defense sector faced a decline in interest from institutional investors due to Environmental, Social and Governance (ESG) concerns. The start of the war in Ukraine in February 2022, however, represented a turning point. Public perception shifted, and interest among institutional investors in the defense sector resurged. This changing landscape inevitably raises pertinent questions about whether defense companies can be compatible with an ESG investment focus and how these companies can position themselves over a sustained period within the ESG domain.
This study concentrates on a subset of 16 companies, with defense-related revenues accounting for a minimum of 30 percent of total revenue.