“Despite objections from the left, the European Parliament has approved a tweak to sustainable finance benchmarks that would open it up to companies producing “controversial weapons”.

[COMMENTARY] This debate as to whether weapons manufacturers can be classified as ESG ‘compliant’ or as ethical investments has heated up since the Russian invasion of Ukraine. Now it looks like the EU has said ‘yes’. that weapons manufacturers can be classified as ESG-compliant. However, I would assume these firms must still be examined and rated by relevant ESG rating entities.
EU opens door to ESG labels for companies producing ‘controversial’ weapons,  Paula Soler & Vincenzo Genovese, November 26, 2025, Euro News, France.