Sustainable Business Practices in the Defense Industry: Between Efficiency and National Security

Sustainability vs. security: must defence choose?

Arief Prayitno analyses how defence organisations can pursue greener and more efficient business practices in "Sustainable Business Practices in the Defense Industry: Between Efficiency and National Security".

Adopting a qualitative descriptive approach, the study draws on literature, policy analysis and expert interviews to evaluate where sustainability initiatives align with or strain defence objectives and conclude:

• Sustainable practices like energy diversification, cleaner tech, and supply chain optimisation can improve efficiency, competitiveness, and innovation.
• These changes also help the defence sector respond to geopolitical shocks, comply with regulations, and strengthen operational resilience.
• Green innovation creates workforce and academic co-benefits through new technologies and upskilling.
• Sustainability initiatives come with risks to be managed, especially foreign tech dependence and cybersecurity threats that may arise with new digital systems.
• Sustainable strategies must be calibrated to protect national autonomy, technological sovereignty, and combat capability.
• Excessive cost-cutting can degrade military readiness, slow mobilisation, and weaken the defence industry's deterrence.

For governments, often both customers and investors, this means designing incentives and regulations that align environmental progress with national security goals.

Energy efficiency, waste reduction, and resource recycling can deliver financial and reputational gains, but only if they don't hollow out critical capabilities. Fragile just-in-time logistics or under-resourced IT can carry massive hidden costs in times of crisis.

The study's insights are high-level and qualitative, with limited quantification of benefits or trade-offs. Its national focus (Indonesia) may limit generalisability but offers relevant lessons.