Ten leadership conversations to build a resilient and sustainable Defence economy

Europe’s Defence Readiness Roadmap 2030 is redefining what it means to be prepared. Defence is no longer just about military strength; it's also about building resilient, sustainable ecosystems that can withstand climate risks, energy transitions, and geopolitical volatility.

As outlined in PwC’s whitepaper ‘From Civil to Defence: A shared path to European readiness', achieving strategic preparedness requires bold investment, integrated planning and close collaboration across sectors such as energy, transport, telecommunications, logistics and advanced manufacturing. For business leaders, this transformation demands new conversations, ones that bridge security, innovation, sustainability, and long‑term value creation.

To help make the right leadership decisions, we identified ten strategic talking points to spark these meaningful conversations with your leadership team and key stakeholders to guide you through this transformation and to build a resilient Defence economy.  

Today’s Defence readiness must account for a broader spectrum of risks, including climate-driven disruptions, resource scarcity, and energy shocks. These factors put significant value at risk, not only in physical assets but also across supply chains and financial performance. A sudden failure of a key energy grid due to an extreme weather event could disrupt power supplies not only for military operations, but also for critical industrial facilities. Businesses must ask: How prepared are we to adapt quickly to evolving threats beyond conventional scenarios? This means embedding flexibility into business models, scenario planning for extreme weather events, and enabling rapid response capabilities for disruptions that could impact supply chains or energy access. Understanding the financial impact of climate risk and enhancing operational resilience are now essential to protecting business value.

With the EU increasing Defence spending, there is a clear expectation that investments will also advance clean energy and competitiveness. Leaders should consider whether procurement strategies and R&D efforts are aligned with Europe’s transition to a clean, resilient economy. This includes integrating renewable energy solutions into defense projects and enabling innovation to support long-term resilience. Businesses must also evaluate how incentives, such as tax credits and grants, can be leveraged to fund clean technology and make sustainable investments more attractive, reducing both costs and carbon footprint.

A robust Defence sector depends on an industrial base that is both resilient and sustainable. Energy-efficient processes, circular economy principles, and low-carbon manufacturing are now strategic imperatives. What steps does your business take to reduce emissions and energy use while supporting Defence objectives? Companies that lead in this area will not only meet regulatory expectations but also gain competitive advantages. Modernising supply chains to enhance transparency and traceability, and rethinking resource usage to embrace circularity, are critical to building resilience and long-term performance.

Critical infrastructure, such as energy grids, transport networks, and digital systems, must withstand both cyber threats and climate disruptions. Are your facilities designed to handle extreme weather and energy volatility? Investing in resilient infrastructure today will safeguard operations and enable continuity in times of crisis. For example, many European cities are now upgrading major bridges and highways to be more climate-resilient, using weather-resistant materials and smart sensors to monitor structural health in real time. This will help to minimise disruption to military logistics and civilian supply chains. An effective energy strategy is essential: optimising energy efficiency, modernising infrastructure, and maintaining access to clean, secure energy are all vital for future readiness. Businesses should also consider how to combine expertise in corporate finance and incentives to identify powerful business cases for investment in energy transition.

The Defence Readiness Roadmap¹ emphasises collaboration across borders to create resilient, low-carbon supply chains. This includes sourcing critical raw materials ethically and reducing fragmentation in procurement. How can your business partner enable ethical sourcing and lower emissions? Consider that, according to Eurostat for the European Commission², the EU is dependent on imports for over 90% of certain critical raw materials, such as rare earth elements, which are vital for both defense and clean energy technologies. Disruption in these supply chains could put high economic value at risk, impacting defense production and broader industrial competitiveness. Working together on joint procurement initiatives can strengthen Europe’s Defence posture while advancing sustainability goals. Supply chain transformation will help businesses anticipate changes, overcome challenges, and stay ahead in a volatile environment.

Defence innovation increasingly overlaps with civilian needs in areas such as AI, drones, advanced materials, and clean energy. Are you leveraging innovation to accelerate both security and sustainability? Partnerships that drive clean energy adoption and technological breakthroughs will be key to staying ahead. When it comes to available incentives and credits within the EU, the European Union has committed significant funding to support innovation, sustainability and dual-use technology development. For example, under the EU's Horizon Europe programme³, approximately € 95.5 billion is allocated for research and innovation. Businesses should also explore how to unlock value from incentives and credits to fund technology investments, making operational and capital spend more strategic.

The EU aims to reskill 600,000 workers⁴ for the Defence industry by 2030, focusing on digital skills. What is your plan for upskilling and attracting the workforce of the future? Investing in training programmes now will enable readiness for emerging technologies and sustainability requirements. Data-driven talent strategies, supported by robust data integration and analytics, will be essential for building a workforce that can navigate both Defence and energy transitions.

Capital is flowing toward Defence and clean energy transformation, creating opportunities for businesses to access sustainable finance instruments. Are you tapping into these resources to fund your roadmap? For example, the European Investment Bank (EIB)⁵ has launched dedicated financing initiatives for dual use projects, such as supporting defense manufacturers in upgrading their facilities to use renewable energy or reduce emissions. Aligning investments with long-term sustainability and security goals will not only unlock funding but also strengthen stakeholder confidence. Understanding the regulatory landscape and leveraging available incentives will be crucial for maximising the impact of sustainable finance.

Cross-sector alliances are essential for building resilience. Partnerships that combine Defence capabilities with clean energy innovation can deliver shared value. Effective partnerships also require transparent data sharing and alignment with regulatory requirements. The European Defence Fund⁶ has supported joint projects where defense companies collaborate with renewable energy firms to develop hybrid microgrid solutions for military bases. How are you building collaborations that advance both security and sustainability?

Annual Defence Readiness Reports will track progress on both defense and sustainability KPIs. Is your governance framework ready for this level of transparency? Businesses must be prepared to measure, report, and communicate performance in areas like capacity increases, supply chains, and strategic reserves of components and raw materials, among others. Navigating regulatory and data complexity is more challenging than ever; integrating diverse data sources and staying ahead of constant regulatory change are now business critical. Leveraging AI and advanced analytics can help unlock insights, meet stakeholder needs, and make smarter business decisions.

Key takeaways

The Defence Readiness Roadmap 2030 represents both a strategic challenge and a generational opportunity. By embedding security, sustainability and innovation into the core of their strategies, businesses can help strengthen Europe’s resilience while positioning themselves for long‑term leadership in a rapidly evolving Defence economy. Now is the moment for businesses to step forward with purpose, clarity and conviction to shape a Europe that is safer, more competitive and future ready.

_{© 2026 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only and should not be used as a substitute for consultation with professional advisors.}