UK defence secretary warns Aviva over ethical investment policies on defence

Written by Adam Cadle

06/11/2023

UK defence secretary Grant Shapps has warned Aviva against any “immoral” withdrawal of backing for defence companies.

In a letter sent to investors last week, Aviva said it would be selling out of “certain companies that do not meet our Aviva Baseline Exclusion Policy”. These would include companies that “might be involved in coal production, weapons/arms, and tobacco production”, it added.

Shapps stated that “there is nothing remotely unethical about investing in UK defence and a thriving industry is critical 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. We will always champion defence companies, both large and small, to ensure access to the financing they need to continue supplying our Armed Forces.”

Aviva has since downplayed the letter however and argued that it 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.”

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