Airbus expresses alarm at City’s stance on defense

Airbus has warned that investors avoiding defense stocks are undermining British industry and the country’s long-term security.

The world’s largest aircraft maker, which employs 11,000 people in Britain, joins a chorus of businesses and politicians who have called on the city to support the defense industry in the wake of the Ukraine war.

The government is increasingly concerned about the refusal of major financial institutions to support defense stocks due to their environmental, social and governance (ESG) policies.

Concern: Airbus joins a chorus of companies and politicians who have called on the city to support the defense industry in the wake of the Ukraine war

Andrew Griffith, the cities minister, and James Cartlidge, the defense procurement minister, said in July it was “perverse” that some investors were shunning or withdrawing from security companies at a time of war in Europe.

“It wasn’t that long ago that the defense industry was deemed ‘uninvestable’ by certain parts of the city based on ESG criteria,” said Ben Bridge, the UK chairman of Airbus’ defense business.

Bridge said that “some” of this had changed since Russia’s invasion of Ukraine – but he added that there was evidence that it had not gone far enough.

“Recent data from Morningstar showed that UK defense companies continue to be sold off by UK investors, undermining both our industrial landscape and our sovereignty capability,” he said.

Around 130,000 people work in the UK defense industry and the supply chain includes around 3,000 local companies.