The minority government of Germany has decided to label as “sustainable” those companies in the military-industrial complex, claiming that building “resilience” against military threats is part of sustainability. It is designed to motivate private investors in military production. It likely reflects the input of Green Economics Minister Robert Habeck. However, since discussion began long before the Nov. 6 Free Democrats’ exit, it is also likely that the Finance Ministry, then under FDP’s Christian Lindner, played a role.
The German plan follows an EU Commission decision several months ago for similar labels for the military-industrial complex throughout the EU. The European Securities and Markets Authority imposed a limitation in May 2024, deciding that only military companies that manufacture banned weapons should be excluded from receiving Environment, Social, Governance (ESG) funds. But companies such as RollsRoyce, the second-largest manufacturer of military engines, or Airbus, involved in the Eurofighter, or Leonardo with a turnover of €15 billion being one of the world’s largest arms manufacturers, could now be rewarded with the sustainable ESG funds.
