← Back to Westminster Hall Debates
Defence Industry: Environmental, Social and Governance Requirements
28 January 2026
Lead MP
Jack Rankin
Windsor
Con
Responding Minister
Louise Sandher-Jones
Tags
EconomyTaxationScotland
Word Count: 13323
Other Contributors: 16
At a Glance
Jack Rankin raised concerns about defence industry: environmental, social and governance requirements in Westminster Hall. A government minister responded.
Key Requests to Government:
The hon. Member asked the Government to recognise the importance of private investment in British defence companies and urged them to unlock billions of pounds in funding waiting to be utilised without costing taxpayers.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The hon. Member for Windsor expressed concern that old assumptions embedded in various industries are having a damaging effect on British defence companies. He cited an example of a Scottish parliamentary reception being shut down by protesters, resulting in the cancellation of events and damage to businesses' capacities. The MP also highlighted how this affects the attractiveness of the defence sector as a career choice for young people.
Adam Dance
Con
Yeovil
Defence firms such as Leonardo in Yeovil are actively investing in environmental and social products. The hon. Member raised the point that if defence firms do not receive contracts, benefits for their communities will be lost. Emphasised the importance of support for Leonardo and helicopters, highlighting their significance in the defence industry.
Alex Baker
Con
Aldershot
Along with Jacob Rees-Mogg, Alex Baker has worked on addressing ESG concerns in defence financing, resulting in sustainable funds considering investment in defence companies.
Edward Morello
Con
West Dorset
The hon. Member thanked Jack Rankin for securing the debate and clarified that parties of all colours support increased defence spending. He highlighted the importance of high-skilled job opportunities provided by defence manufacturers in his constituency. Addressed specific issues regarding helicopter manufacturing and training support, stressing the need for continued dialogue with relevant stakeholders.
Epsom and Ewell
Private investment is crucial for the defence industry, which faces challenges such as long production cycles and export controls. The MP calls for certainty to invest in capacity, innovation, and workforce development and proposes war bonds to raise up to £20 billion for military spending. Asked for more clarity on the bonds idea raised in the Chamber two nights ago regarding the Armed Forces Bill.
Jack Rankin
Con
Weald of Kent
Set the tone for the debate by discussing the need to change the culture and push back against ESG criteria that prevent defence investments. Emphasised support for a safe and confident Britain, noting that investment in defence is patriotic and necessary to make war less likely.
Jim Shannon
DUP
Strangford
The hon. Member highlights the importance of private investment in the defence sector and underlines that a strong defence industrial base is essential for security. He also discusses specific examples like Thales UK's role in producing lightweight air defence missiles, which supports around 700 jobs. Encouraged by Thales’s introduction of apprenticeships and Harland & Wolff shipyard's £1.6 billion contract to build fleet support ships for the Royal Fleet Auxiliary Service. Spoke about Northern Ireland companies such as Thales and Harland & Wolff, ensuring they stay on Government frameworks despite ESG pressures.
Katie Lam
Con
Weald of Kent
Ms Lam highlighted the increasing dangers in the world and emphasised that defending the realm should be prioritised over social value requirements. She mentioned the RAF's pause on hiring white men to increase diversity, which she deemed counterproductive. Talked about how ESG was used in the RAF to socially engineer certain outcomes and discussed national legislation, FCA, and red tape around companies.
Luke Akehurst
Lab
North Durham
Called for clearer policy guidance on responsible investment in UK defence companies, highlighting ethical necessity and economic benefits for deprived regions like North Durham. Emphasised the importance of investing in defence now to keep everyone safe, highlighting deterrence as a priority.
Luke Charters
Lab
York Outer
The MP thanks Jack Rankin for securing the debate and acknowledges the importance of changing the culture across financial services. He clarifies that ESG does not need to get in the way of lending to SMEs but highlights an artificial distinction between dual-use military technology and single-use military equipment. He provides examples such as Needles and Pins Aerospace, which produces insulation for military helicopters, and Edmund Optics, which manufactures prisms and lenses with both civilian and military applications.
Charters
Lab
York Outer
Brought deep knowledge of contract formulation across Government and industry, distinguishing between funding for hard capabilities and dual-use technologies. Discussed the 'Rewiring British Defence Financing' report.
Luke Akehurst
Discussed the impact of climate-related risks on national security and the need to reduce environmental impacts.
Rightly spoke about debanking and highlighted challenges SMEs face with long payment cycles.
Jim Shannon
Highlighted the importance of the defence industry for apprenticeships and securing Northern Ireland's defence industry.
Katie Lam
Underlined the importance of defence for the nation and highlighted previous Government’s poor record on recruitment and exports.
Helen Maguire
Emphasised that ESG and defence are not contradictory, noted the importance of continuously assessing threats and stability in the defence industry.
David Reed
Stressed the importance of allocations of capital, defence industries' role in security and prosperity, and the necessity to distinguish between dual-use military technologies and core defence capabilities.
Government Response
Louise Sandher-Jones
The Minister for Veterans and People
Government Response
Acknowledged the unduly negative light in which defence can sometimes be viewed in investment circles and highlighted the Government's target of spending £7.5 billion with SMEs by 2027-28, a 50% increase from current levels. The Government are committed to dismantling barriers that might hold back defence investment, ensuring closer partnership between industry, innovators, and investors. They acknowledge the debate about ESG considerations potentially acting as a brake on defence investment but note the FCA’s statement clarifying its rules do not prohibit financing in the sector. Anecdotal evidence suggests negative perceptions and lack of understanding hinder individual and financial institution investments. The Defence Office for Small Business Growth was launched to address barriers SMEs face, aiming to secure £2.5 billion spending target by 2027-28.
▸
Assessment & feedback
Summary accuracy
About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.