Geopolitics Shackles Green Switch

Over 70% respondents say geopolitics has moderate to significant influence on their organisation's sustainability strategy, according to a recent survey

- Sudipto Dey

India Inc has a new worry line.

Apart from the usual labour issues, bottom lines, capex, expansion many companies are increasingly being affected by geopolitics.

Take for example China's decision last year to restrict export of rare earth elements. The shock waves were felt globally, including in India. Several auto players, like Mahindra & Mahindra, had to address rare earth magnet shortages, critical for electric vehicle production, by securing short-term alternative sourcing options. EVs are critical for M&M's plans. The group has set a target of EVs accounting for 25% of total sales by 2028.

Just as businesses are no longer insulated from global power shifts, sustainability priorities are now directly influenced by global events. Irrespective of whether a business caters to domestic demand, or have cross-border exposure, corporate sustainability strategies must now contend not only with environmental and social objectives, but also with geopolitical realities, including access to capital and technology, evolving trade barriers.

“In a volatile global landscape, sustainability is no longer just a ‘green’ initiative—it is a resilience strategy. As energy and material markets fluctuate, resource efficiency and supply chain security have transitioned from operational tasks to core board-level priorities,” says Naveen Ahlawat, president and head of sustainability and decarbonisation at Jindal Steel.

Jignesh Sharda, chairman, Sustainability Council at RPG Group agrees with this assessment. Geopolitical changes have effectively turned sustainability from a linear “2030 roadmap” into a continuous exercise, where energy-security shocks, supply-chain disruptions, and shifting compliance expectations affect both timelines and capital cost, he says. The RPG group has interests in tyre, infrastructure, pharmaceuticals, energy, among others.