Morgan Stanley Says Defense Could Get $119 Billion ESG Boost.
ESG funds in Europe could substantially increase their allocations to the defense industry should existing restrictions be fully removed, according to analysts at Morgan Stanley.
Funds registered as Article 8 and Article 9 — the European Union’s two main ESG disclosure categories — would have the potential to drive between $53 billion and $119 billion in flows into the aerospace and defense sector, Morgan Stanley analysts including Arushi Agarwal and Rachel Fletcher wrote in a note on Monday.
Fund managers claiming to target environmental, social and governance goals are already stepping up their holdings of defense assets, amid a wider shift in investment sentiment toward the sector. The move is being encouraged by policymakers in Europe, as the bloc responds to souring ties with the US and an increasingly aggressive Russian war machine.
Source: Finance.Yahoo
