Marta Postuła: Path for the defense sector

In the face of growing security challenges – such as the war in Ukraine, geopolitical tensions in Asia or the unstable situation in the Middle East – the defence sector has once again become the focus of policymakers and investors. In parallel, in recent years we have seen the increasing implementation of ESG (Environmental, Social, Governance) criteria in financial sector regulations, which may pose certain challenges for the defence industry. On the one hand, there is a growing demand for stable and effective financing of the modernisation of the armed forces, on the other – financial institutions are obliged to take into account the principles of sustainable development, which in some cases may limit the possibilities of financing sectors perceived as sensitive, such as some areas of the defence industry.