Funds that invest in companies making weapons are free to badge themselves as “ethical” or “sustainable”, the Treasury and the major fund management houses in Britain declared on Tuesday.
In a joint statement designed to bolster support for the UK defence industry, the Treasury and the Investment Association declared that the armaments investment was wholly compatible with the so-called ESG push.
ESG, or investment according to environmental, social and governance factors, is the umbrella term for a trend which has led to tens of billions of pounds being directed into funds described as ethical or sustainable.
The declaration appears to put the Treasury on a collision course over morality with the Church of England, which has severe restrictions on arms investments, saying they are “not
