Aviva ‘immoral’ as row over defence company investment hots up
Defence secretary Grant Shapps has warned insurance giant Aviva against divesting from defence companies after the insurer announced plans to exit some not meeting internal policy benchmarks.
Last week Aviva said it will phase out “certain companies that do not meet our Aviva Baseline Exclusion Policy”, including those involved in coal, weapons, and tobacco.
But Shapps, who took over as defence secretary in August, hit back, defending defence investments.
He told the Telegraph: “There is nothing remotely unethical about investing in UK defence and a thriving industry is crucial to protect our way of life, particularly at a time of such global uncertainty.
“It would be immoral for investors to turn away from our defence firms – which help employ more than 200,000 people across the UK – without whom we would not have been able to supply Ukraine with the means to defend its freedom.”
Aviva’s Environmental, Social, and Governance (ESG) exclusion policy says they are opposed to products causing “undue human suffering or fatalities” but ESG policies commonly exclude investment in arms companies.
A spokesperson told Morning Wire: “Aviva is a massive supporter of, and investor in, UK defence. The UK defence sector plays a critical role protecting the human rights of citizens and supporting international stability. Aviva is a significant investor in UK defence companies, with £600m invested in the sector’s equities, and we have no intention of changing this.”
Aviva’s environmental, social and governance (ESG) exclusion policy document says products that “cause undue human suffering or fatalities” are “fundamentally misaligned” with its “core values”.