Financing defense in the age of ESG: changing the measure of risk
The financing of European sovereignty faces a paradox: while the security emergency is essential, our defence companies still too often encounter the filters of inadequate sustainable finance. How to transform ESG, often perceived as a constraint, into a real driver of robustness? Discover why the VSME+ framework is becoming the indispensable translator between the requirements of BITD and the requirements of funders to guarantee our strategic independence.
Temps de lecture estimé : X min
While Europe is rediscovering the imperatives of the war economy, a paradox persists: some companies in our Defence Industrial and Technological Base (BITD) are struggling to finance or insure themselves.
In question? A “non-green” or “sensitive” perception of their activities that weakens our strengthening of strategic independence.
However, sustainable transition cannot come at the expense of national security. There is no sustainable transition without security, and no security without a financed sovereign industry.
The challenge: adapt risk measurement to strategic issues
ESG makes it possible to measure the performance and extra-financial risks of the company based on sustainability issues relating to Environment, Social and Governance issues. However, for a BITD company, extra-financial risks take on a specific and highly operational dimension. Managing extra-financial performance in defense must integrate operational and geopolitical robustness in order to deal in particular with:
- The break in continuity on a strategic component or a critical raw material.
- Energy vulnerability has a direct impact on production capacities.
- Technological dependence on non-sovereign digital solutions.
At Ascend, we empower this performance. With the VSME+ Territories and Sovereignty, we allow companies to assess these risks in a relevant and contextualized manner, in line with the expectations of their sector and their stakeholders, in order to make them real management indicators.
VSME+: The translator between Finance and Defense
To bring the world of finance and defense closer together, a translator is needed. This translator is data. This is why we support the VSME+ Territories and Sovereignty framework, an extension of the European VSME framework by adapting it to the real challenges of resilience.
This frame is the essential base for:
- Valuing the contribution of BITD to stability, innovation and employment in the territories.
- Qualify specific risks (critical dependencies, digital sovereignty) through a rigorous data model.
- Access to large-scale financing : To raise the capital necessary for reindustrialization, the sector must be able to rely on powerful tools such as Eurobonds at the service of sovereignty. Without reliable and standardized extra-financial data, these international instruments remain out of reach for our SMEs and ETIs.
A coalition for action
Definitely, this project is not theoretical. It is also supported by a coalition of committed actors such as Eurodéfense-France, the DGA, professional organizations (GIFAS, GICAT, GICAN).
This extra-financial management is the only way to ensure that Europe remains free to make its own choices. Because while sovereignty has a cost, its absence will definitely cost far too much for generations who expect their leaders and actors essential to our democracy to work together - and quickly - to find solutions that allow for accessible and tangible sustainability.
Take action for the sector.
Together with our partners, we are launching a major national consultation with BITD SMEs and ETIs. Your contribution is essential to build the framework that our industry needs to be better financed, insured and protected.
👉 Click here to respond to surveying (answers collected anonymously).