Responsibility assessment tools for defence and security sector start-ups

The destabilised global security environment compels the European Union to strengthen its preparedness and defence. The defence market alone is expected to grow at a compound annual growth rate of 7.7% until 2029. Western Europe is the fastest growing region. (Defence Global Market Report, 2025) As the defence and security (DS) sector emerges as a rapidly growing industry, many start-ups lack the skills and resources to align their innovation processes with the sector’s specific responsibility and compliance requirement.

The DS industry requires in their star-up operations that the corporate social responsibility (CSR) of the partners must be scalable, cost-effective, and an integrated part of innovation and development processes. European defence industry requires following of the principles of sustainable development, like the ESG (the categories environmental, social, and governance used to assess a company’s impact, risks, and performance related to sustainability) and circular economy principles (Mitkow et al., 2022; Reis et al., 2025). Mitkow et al. (2022) postulated that European defence industry is increasingly supporting the ESG. Reis et al. (2025) identified concerted efforts in repurposing, remanufacturing, repairing, reusing, reducing, and rethinking military materials. Small operators often cannot implement extensive reporting models, so responsibility must be reflected specifically in practical innovations, business models and everyday activities. (Vilochani et al., 2024, 1525.)

This article introduces five research-based start-up responsibility tools tailored in the BeScaled project. The tools comprise

• The corporate social responsibility (CSR) self-assessment and maturity tool
• Resource-efficiency and circular economy dashboard
• Stakeholder engagement and trust mapping tool
• CSR-driven innovation and technology matrix
• Sustainability work handbook

The tools can be used in defence and security sector start-up accelerator programs as well as in training students for responsible entrepreneurship.

For the Baltic and Nordic countries, national security and crisis resilience have become central themes and key areas of investment. One of the main drivers of growth and innovation in the DS sector are the so-called dual-use applications, which encompass technologies that can be used for both civil and defence purposes. Promoting dual-use technologies is an important part of the EU strategy to address critical dependencies and strengthen preparedness and defence (European Commission, 2025).

Both Finland and Estonia host a vibrant start-up culture with a strong focus on technological and digital solutions. Yet, despite growing interest in the DS sector, many Finnish and Estonian start-ups fail to see the sustainable dual-use potential of their technologies and products. Also, start-ups often lack the necessary defence sector-specific know-how and resources to innovate, develop, adapt, and test their applications in the DS sector context. Supporting Finnish and Estonian start-ups to overcome these challenges would realise considerable growth potential in this sector and provide aspiring companies with pathways to capitalise on further resources, such as the European Investment Bank (EIB), the European Defence Fund (EDF), and NATO Innovation Fund. These funding partners require a thorough responsibility assessment in all company operations. Transforming responsibility into daily practice requires practical, low-threshold tools that enable start-ups to develop their innovation competence and growth. Since most environmental impacts of a product are determined during the design phase, responsible choices and circular economy alignment form the foundation of sustainable business. Ethical management and regulatory compliance create an additional unique operational environment for start-ups, where internal capabilities must be harnessed to ensure technological safety, data governance and ethical innovation (Smirnova & Travieso Morales, 2025).

We delimit this article to those corporate social responsibility (CSR) tools that we think will add most value in product and business development as the Defence Forces require ecologically sustainable procurements and embed environmental aspects directly into procurement procedures (Finnish defence administration’s sustainability report for 2024). Sustainable product development (SPD) is used as a method integrating environmental and social considerations into the design and creation of products. To ensure sustainability in product development, start-ups are recommended to adopt the Framework for Strategic Sustainable Development (FSSD) framework (Broman & Robèrt, 2017), which guides businesses in making decisions that are beneficial for both the environment and society. Key aspects include minimizing environmental impact through waste prevention and resource management and considering the entire lifecycle of the product from extraction to end-of-life.

Building responsible foundations for dual-use start-ups

The early stages of product development have a great influence on the environmental impacts of a product’s life cycle, as the majority of these are determined during the design phase (Luttropp & Lagerstedt, 2006; Milios, 2018). The principle of dual-use-by-design suggests that technologies are developed with both civilian and defence requirements in mind, with responsibility embedded into innovation from the very beginning (European Union, 2025, 14). Responsible choices concerning materials, safety and usage restrictions can be determined even when the technology is still in its infancy, and it is essential for sustainable development, that ESG (environmental, social, governance) criteria are integrated already into innovation specifications (Luttropp & Lagerstedt, 2006; Stilgoe et al., 2013). Developing well-managed responsibility processes is possible even with varying resources and a low level of responsibility work maturity (Vilochani et al., 2024).

Circular economy is a systemic economic model based on life cycle thinking, in which the value of products and materials remain in use and circulation for as long as possible and the generation of waste is minimized. The circular economy is a socio-economic transition that requires everyone’s participation and contribution (Milios, 2018). This is where the DS sector start-ups also have a role to play.

Circular economy and resource efficiency are also emerging as key themes in the DS sector, where their significance is primarily related to strengthening the technical cycle (Milios, 2018). The technical cycle refers to the circulation of products, components and materials within the economy, emphasizing processes that maintain their value through modular design, repair, reuse and upgrading. (Ellen MacArthur Foundation, 2019). This approach is strategically important for the DS sector, as it increases security of supply and technological self-sufficiency. Applying circular economy principles in the DS sector supports the continuity production chains and reduces dependence on critical raw materials and external suppliers, which is important in strengthening the EU’s strategic autonomy (Milios, 2018; European Commission, 2025). The Circular Economy Action Plan (European Commission, n.-d.-a) and Strategic Raw Materials Act (European Commission, n.d.-b) also emphasize the circulation and substitution of materials in critical production chains. These principles are also relevant to the DS sector and should be considered in its innovation, production and supply chain practices.

From export control to ethical responsibility: understanding the EU dual-use regulation

In the DS sector, responsibility work also means ethical management of dual-use innovations and knowledge of export regulations. With the dual-use export control regulation 2021/821, which was issued in 2021, the EU wishes to prevent the potential adverse effects of dual-use exports, such as the proliferation weapons of mass destruction, in accordance with UN Security Council resolution in 2004 (European Union, 2024).

The dual-use export control system aims to ensure compliance with international commitments that promote security and stability (European Union, 2024). The regulation aims to improve supervision, and it can also be seen to strengthen technological safety, security of supply and critical production chains. The regulation helps managing technology dependencies, supports the protection of critical infrastructure and reinforces the principles of preparedness.

Sustainability challenges and opportunities in dual-use start-ups

Start-ups have many internal capabilities, which create opportunities for them in sustainability work and innovation. The commitment of owners and managers and a company’s value-based strategic guidance is one of the key resources of start-ups (Bakos et al., 2020; Bacinello et al., 2021) A shared vision, organizational learning, change capacity and digitalization are build-in capabilities in start-ups, supporting also the CSR (Torugsa et al., 2013; Torkkeli & Durst, 2022; Albertini, 2013). Operating in unstable environment, agility and fast decision making enable a design for responsibility from the very beginning (Stilgoe et al., 2013).

In the DS sector, responsibility extends beyond the traditional ESG framework, as it also includes technological safety, information management, ethical development, and societal trust. Responsibility covers the entire value chain, from technological design and production to use and data protection. (Kostenko & Manzhula, 2025; Sezal & Giumelli, 2022.)

Start-ups in the DS-sector have a special responsibility for ethical management of innovation, new technologies and products. This means internal, process-level transparency in development processes and assessment of potential dual-use impacts of technologies. This is part of responsible innovation, where technological development, societal benefit and security factors are balanced. (Stilgoe et al., 2013; Ulnicane et al., 2022). For start-ups, this translates into simple export-control screening, end-use statements and tradeable design documentation integrated into daily workflows.

Practical CSR tools for the DS-sector

Transitioning responsibility into daily practice requires tools that make sustainability measurable, comparable and actionable. CSR tools help start-ups align their innovation, technological development and operations with environmental, social, economic and ethical goals. In the following, some concrete tools are introduced to ensure that responsibility may become a part of everyday business. The tools are depicted as “tool cards” so that they can be easily added to presentations and other start-up materials.

CSR self-assessment and maturity tool

The purpose of the CSR self-assessment and maturity tool is to help companies evaluate their current CSR level and identify key development areas (Tool card 1).

It is a structured self-evaluation questionnaire covering the areas of CSR and generating a profile showing the strengths and development areas. It is relevant for dual-use start-ups as it comprises ethical and security dimensions assessing dual-use risk awareness, export-control compliance, and human rights due diligence.

Resource-efficiency and circular economy dashboard

The purpose of the Resource-efficiency and circular economy dashboard is to measure direct quantifiable impacts of CSR on cost savings and operational efficiency (Tool card 2.). Indicators of this tool are energy use, waste-to-value percentage, recycled material share, and logistics efficiency.

The dashboard can be built as a simple Excel or Power BI where monthly or quarterly data is inserted. Results appear as trend lines or bars showing where efficiency improvements deliver both environmental and financial gains. The tool is relevant in dual-use contexts as it links resource efficiency with supply-chain resilience and strategic autonomy.

Stakeholder engagement and trust mapping tool

The purpose of the Stakeholder engagement and trust mapping tool is to identify, prioritize, and monitor relationships that create long-term social capital and strengthen organisational credibility (Tool card 3). When using the tool, the company lists its key stakeholders and positions them on a two-axis map: influence on company success (low-high) and level of trust and engagement (weak-strong). Regular updates show how relationships evolve.

This tool is relevant in dual-use contexts as it ensures that responsibility and transparency extend across the entire dual-use value chain by including governmental actors, defence clients, export-control authorities, and ethical-review bodies in the stakeholder map. Systematic monitoring of these relationships supports compliance, trust-building, and preparedness, which are essential for operating in the DS ecosystem.

Sustainability-driven innovation and technology matrix

The purpose of the Sustainability-driven innovation and technology matrix is to integrate CSR into innovation and product design from the earliest stage (Tool card 4).

The tool is structured as a 4×4 matrix, where the horizontal axis represents innovation types and the vertical axis CSR dimensions. All innovation and product design teams fill in the matrix cells with concrete design actions, risks or opportunities under each intersection (Example in figure 1.). The outcome is a visual overview showing where responsibility is already embedded and where further development or risk management is needed. It is relevant in dual-use context as it ensures that innovations, products, and processes comply with general CSR principles and ethical, safety and regulatory requirements specific to the DS sector.

Sustainability work handbook

Sustainability work handbook is a low-threshold tool that serves as a practical guide for a company’s sustainability efforts (Tool card 5.).

Based on CSR self-assessment and maturity tool, and assessment of the company’s operating environment, a tailored handbook can be written for building a foundation for sustainable business without complex processes. A tailored handbook provides a structured way to combine ethical compliance, regulatory preparedness, and resilience planning within one framework.

Conclusion

Understanding responsibility requires recognising that science and technology are shaped as much by social and political forces as by technical design (Stilgoe et al., 2013). While regulatory, CSR and ethical frameworks are common to all. Every company operates in its own context with distinct goals and conditions. At the foundation of responsible business are always the values, mission, vision and customer promise. This is true also in start-ups.

More broadly, sustainability and responsible business practices are increasingly treated as baseline expectations by key stakeholders, rather than as differentiating features, across public and private procurement contexts. Taking sustainable development in consideration strengthens and supports startups’ ability to enter defence procurement, as the Finnish Defence Forces require environmental responsibility, energy efficiency, and resource wisdom in their activities and procurement processes (Finnish Defence Forces, 2022–2025; Finnish Defence Forces, 2024). However, corporate social responsibility (CSR) can be successful only when embedded in a company’s strategy, when the management is fully committed, and the employees are engaged from the very first mention of sustainability in the organisation. In this way, each company can build its own scale and form of sustainability work fitting its unique identity and capabilities.

The BeScaled (Baltic Scale-up Ecosystem for Security, National Defence, and Crisis Resilience Businesses) project helps young growth companies in the Baltic Sea region identify their dual-use potential and orient themselves towards the defence and security sector. Learn more https://www.hamk.fi/en/projects/bescaled/.

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