Berenberg Says No Sustainability Without Defense: ESG Investing

June 25, 2025, 4:10 PM UTC

Analysts at Berenberg say almost every meeting they have with sustainability-minded investors these days includes questions about buying defense stocks.

In a report issued Monday, analysts Lauma Kalns-Timans and Marina Kitchen wrote that investing in defense does make sense. It’s become “a prerequisite for sustainable investment goals and for minimizing ESG risk to corporates,” they said.

This year, investors are reacting by devoting a larger share of their holdings to defense, the analysts said, citing data that show sustainable-focused funds have increased their stakes in the sector.

That includes buying shares of companies such as BAE Systems Plc, Rheinmetall ...





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