Challenges for the defense industry against the background of ESG (environmental, social, governance) concepts

Abstract

PURPOSE: The purpose of this article was to present the defense industry in the context of ESG.

DESIGN/METHODOLOGY/APPROACH: For a variety of reasons, the defense sector has so far not cared to build awareness of the importance of the defense industry in supporting the armed forces' efforts to ensure the security of their country's citizens. The fact that this sector has a strategic status requires reinforcement at the level of communication and separation from other sectors of the economy.

FINDINGS: National security, including the defense industry, will increasingly be seen as a necessity in support of ESG.

PRACTICAL IMPLICATIONS: It would certainly be helpful for the European Commission to develop a coherent and consistent policy on the defense industry, not only denying its harmfulness, but emphasizing its strategic importance, hence requiring special status and special conditions in the context of the ESG taxonomy.

ORIGINALITY/VALUE: For a variety of reasons, the defense sector has so far not cared to build awareness of the importance of the defense industry in supporting the armed forces' efforts to ensure the security of their country's citizens. The fact that the sector has a strategic status requires reinforcement at the level of communication and separation from other sectors of the economy (possibly also through the application of different regulations specific to the sector) as in this research.