Leonardo calls on EU to add defence to sustainable investment list – Reuters

The logo of defence group Leonardo in Geneva, Switzerland, May 22, 2017. REUTERS/Denis Balibouse
MILAN, Dec 23 (Reuters) – Italian aerospace and defence group Leonardo (LDOF.MI) called on the European Commission to avoid putting investments in the defence sector on the "naughty list", urging it instead to label the industry as sustainable rather than socially harmful.
Brussels is preparing to publish its classification system for green investments early next year as investors become more conscious about sustainability and some industries are worried about the negative consequences for future funding.
"If the defence industry is put on the naughty list… the money will go elsewhere," Leonardo's Chief Financial Officer Alessandra Genco said.
"This is particularly true for thousands of small and medium enterprises in Europe, which have less bargaining power with banks than big groups, such as Leonardo," she said.
Leonardo this year secured a total of 3 billion euro ($3.39 billion) bank financing whose costs are tied to reaching several sustainability targets, making ESG-linked credit half of the group's sources of funding. read more
"We want to expand further the portion of our ESG-linked financing towards 100%, but this will be only possible if defence is considered among the sustainable activities," Genco said.
A spokesman for the European Commission declined to comment.
The EU is also considering launching a "social taxonomy", to define which economic activities contribute positively to society and those that do not.
A draft report on the social taxonomy by EU's expert advisers grouped weapon production together with tobacco and gambling as harmful sectors.
Difficult access to capital markets would mean less investments in technology and innovation from the defence industry and the risk of weakening the sector at a time when EU member states are discussing greater collaboration on security, Leonardo's Genco said.
"You can have a healthy environment without Co2, but if you live in a place under terrorist attack, I'm sorry but it won't do you much good," Genco said.
($1 = 0.8849 euros)
Our Standards: The Thomson Reuters Trust Principles.
Subscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2021 Reuters. All rights reserved

source

The Top Ten Modern Business Skills For 2022

NEW YORK--(BUSINESS WIRE)--“Communication”, “critical thinking” and “data literacy” are among the skills that workers need in order to thrive in 2022, according to a...

Softbank leads $127 million funding round for Brazilian healthcare startup Alice – Reuters

The logo of SoftBank Group Corp is displayed at SoftBank World 2017 conference in Tokyo, Japan, July 20, 2017. REUTERS/Issei Kato/File PhotoSAO PAULO, Dec...

How many unicorn companies are in the UK? | Fool UK – Motley Fool UK

The Motley Fool's personal finance site is devoted to helping you live a richer life.Let’s conquer your financial goals together… faster!The Motley Fool's ...

- Advertisement -

The Top Ten Modern Business Skills For 2022

NEW YORK--(BUSINESS WIRE)--“Communication”, “critical thinking” and “data literacy” are among the skills that workers need in order to thrive...

Expose your thoughts

LEAVE A REPLY

Please enter your comment!
Please enter your name here