February 2026: Published in the Financial Times on the future of responsible investing

The line between sustainability and security is being redrawn behind closed doors, exposing a growing mismatch between ESG labels and real-world portfolios, writes Tenke Zoltani in the FT’s Professional Wealth Management Supplement. Read her full op-ed here.

In summary, Europe’s sustainable investors are increasingly allocating capital to defence and dual-use technologies, driven by rising geopolitical tensions and strong financial performance. While many ESG funds maintain formal exclusions, exposure is growing through investments in aerospace, cybersecurity, and infrastructure resilience. Defence spending across Europe has surged, and related stocks have outperformed broader markets, forcing investors to reconcile fiduciary duty with sustainability commitments. Family offices and institutions are redefining ESG to distinguish between controversial weapons and technologies supporting security and stability. This marks a structural shift: defence is no longer universally excluded, but increasingly viewed as compatible with sustainability, resilience, and long-term value creation.