Security, Sustainability and the New Geopolitical Reality

The 2026 Deep Dive series is focused on various aspects of security.  The June Deep Dive, focusing on defence could not be more timely.  Geopolitical tensions and global re-alignment have driven up interest and investment in defence allocation.

Can defence ever qualify as a responsible or even sustainable investment?  For decades, many sustainable funds excluded defence outright. But recent geopolitical tension have forced a reassessment. Defence budgets among EU member states have surged by over 30% since 2021, and regulators are signaling a shift. The European Commission now recognizes defence as a potential contributor to social sustainability, and SFDR classifications have evolved to allow for greater exposure,. 

Principles for Responsible Defence Investment (PRDI) is a new initiative that aims to fill the current governance gap by providing practical, rights-based guidance for evaluating defence-related companies.  How will  R&D, funding and patents for new technologies in an ever interconnected world support and secure individual states and or regions? Is investment in defence companies both listed and unlisted, although potentially financially profitable at a diametrically opposed strategic position to national security?