Years of hard-line exclusions of the defence industry kept many asset owners out of one of the strongest-performing sectors. Now, as Europe rearms, investors are reworking defence policies – cautiously and under intense scrutiny.
Years of hard-line exclusions of the defence industry kept many asset owners out of one of the strongest-performing sectors. Now, as Europe rearms, investors are reworking defence policies – cautiously and under intense scrutiny.
As geopolitical uncertainty leaves many European pension funds exploring how to invest more in defence, Norway's KLP has just divested two listed defence companies for selling weapons to Israel because of human rights concerns in Gaza.
As growing geopolitical tension and government control has caused some investors to exit China, Norway's $78 billion pension fund KLP has stepped up engagement with Chinese mining companies at risk of breaching labour rights and responsible extraction.
Large investors across Europe share the elements of their success when it comes to ESG integration and engagement, including in sovereign bonds.
Last June, Norway’s KLP excluded 18 companies due to links with Israeli settlements in the occupied West Bank. A few months later, Kiran Aziz, took the helm as the head of RI stepping into a contentious ESG debate that captures the divide between US and European shareholders.
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