Leonardo cited as why defence must not be sidelined

The Leonardo helicopter operation in Yeovil was cited in Parliament as an example of how environmental, social and governance requirements risk undermining Britain’s defence industry if they are not matched by firm government procurement decisions.

During a Westminster Hall debate on the impact of ESG rules on defence, MPs from across the House pointed to Leonardo as a company that has actively invested in communities, skills and environmental initiatives, while warning that such commitments depend on predictable defence contracts.

Adam Dance, Liberal Democrat MP for Yeovil, told MPs that Leonardo had demonstrated a willingness to engage with environmental and social responsibilities alongside its defence work, but said this needed to be backed by government action.

“Defence firms such as Leonardo in Yeovil are happy to invest in environmental and social products,” he said. “Leonardo has invested heavily in Yeovil College and entertainment venues and is building its own solar farm, but if defence firms are to meet those obligations, the Government need to award contracts such as the new medium-lift helicopter. If not, we will lose the benefits for our community forever.”

Jack Rankin, the Conservative MP who secured the debate, agreed and said Leonardo’s presence in Yeovil illustrated the wider contradiction facing the defence sector. Companies are encouraged to meet ESG expectations, he argued, while investment rules and procurement delays simultaneously restrict their ability to plan and grow. “The hon. Gentleman makes a powerful point about Leonardo, which builds helicopters in his constituency,” Rankin said, adding that the issue was not unique to one company but reflected a systemic problem affecting British defence manufacturers.

Other MPs reinforced the point, highlighting Leonardo’s role as a major employer and skills provider across the South West. Edward Morello, Liberal Democrat MP for West Dorset, said the company’s links with schools and higher education were critical to sustaining high-skilled employment in the region. “Leonardo in Yeovil employs vast numbers of people in my West Dorset constituency,” he said. “Those links with local schools and higher education institutions are vital to creating a pathway for people in the south-west, especially in rural communities, who might not have another avenue into high-skilled labour.”

Rankin argued that ESG frameworks often imply defence investment is unethical, despite the reliance of national security on firms such as Leonardo. He warned that excluding defence from finance and procurement risks hollowing out industrial capacity, even as governments pledge to increase defence spending.

“There is nothing less ethical than sending British sons and daughters into battle under-equipped,” he said, adding that Parliament itself sends conflicting signals when defence is praised rhetorically but constrained in practice.