But with years to go before a social taxonomy is ready, lobbyists are using what they see as a window of opportunity to try to shape the outcome. According to BDSV, a German defense industry lobby group, Russia’s invasion of Ukraine last week is highly relevant to the question of social sustainability in Europe.
“The invasion of Ukraine shows how important it is to have strong national defense,” said Hans Christoph Atzpodien, who runs BDSV. “I appeal to the EU to recognize the defense industry as a positive contribution to ‘social sustainability’ under the ESG taxonomy.”
Meanwhile, the defense industry says it has struggled to get loans as ESG concerns steer funding in the finance sector. Rheinmetall AG Chief Executive Officer Armin Papperger told local media in January that his firm had been cut off from credit by German lenders LBBW and BayernLB, due to their ESG concerns.