Elevated geopolitical tension has led the North Atlantic Treaty Organization (NATO) to increase defense spending targets from 2% to 5% of GDP by 2035. This change in tone from policymakers has supported the share prices of aerospace and defense (A&D) companies, particularly in Europe, which has been a headwind to sustainability-oriented investors. This month, we discuss evolving views on A&D as well as other sustainability trends influencing capital markets globally.

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