Leonardo Calls On EU To Include Defence To Sustainable Investment List

A Brief Summary

Leonardo an Italian aerospace and defence company, has urged the European Commission to avoid putting defence investments on the "naughty list" Instead, label the industry as sustainable rather than socially destructive. According to the company's financial officer, "if the defence industry is put on a naughty list, the money will go away."

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Brussels is hoping to publish its classification system for green investments from early next year onwards owing to investors becoming more concerned about sustainability.

"If the defence industry is put on a naughty list, the money will go away," said Leonardo's financial officer.

Let alone three billion euros ($3,39 billion) allocated to achieving several sustainability goals, all thanks to ESG's involvement and the amount of credit.

The EU is considering enacting a "social taxonomy," which would specify which economic activities are beneficial to society and which are not.

Weapon production, like cigarettes and gambling, is a severe threat, according to a European Union report on social categorization.

It would imply more money spent on technology and innovation by the defence industry, and a lack of technology would undermine the sector at a time when EU member states are debating how to strengthen security cooperation, according to Leonardo's Genco.