Sustainability in a digital world: geopolitics, values and international business policy

Given the EU’s global interconnectedness through international trade and investment, and its critical dependence on other regions, this chapter focuses on key areas in the EU pertinent to the so-called ‘twin’ (green and digital) transition. The EU is the ‘arena’ where geopolitical, societal and technological complexities, including the inherent difficulties of arriving at coherent and effective decision-making, and the actual implementation of intentions and rules, come to the fore most prominently. After providing contextual information on the EU Green Deal, the authors delve into IBP issues central to sustainability in a digital world. These include the industrial transformation to net-zero technologies, critical raw materials, and semiconductors. The chapter concludes with a discussion on implications for IBP, bridging both research and practice. The central thesis of this chapter posits that geopolitical conflicts and the emergence of digital technologies, embedded in distinct societal values, increasingly influence the realization of social, economic and environmental sustainability. MNEs will have to adjust to these new realities and adopt a proactive role in shaping emerging policies.