German banking and fund associations no longer want to prohibit investments in conventional armaments by sustainable investment products. The reason for abandoning an existing rule is current political developments and new regulatory requirements, according to the German Banking Industry Committee (DK). Weapons banned under international law should continue to be completely excluded from investment. The supervisory authorities still have to give the green light for the plans.
Abandoning the “no” to the defense industry, the so-called minimum exclusion, is “an important step towards the EU-wide standardization of the minimum requirements for sustainable funds,” says a spokesman for the German Fund Association BVI.
Against the backdrop of geopolitical changes, the Russian war of aggression against Ukraine and Europe’s competitiveness, the expansion of the local defense industry is becoming a political focus. The EU Commission, among others, wants the money for this to come from the European Investment Bank (EIB) on the one hand, and from the financial sector on the other. According to the Brussels authority, the EU framework for sustainable finance does not include or plan to include relevant regulations that would hinder private investment in the defense industry.
© dpa-infocom, dpa:240910-930-227946/1
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