Barriers to Progress: How Geopolitical Risks Affect the EU’s SDG Agenda

Geopolitical risksGeopolitical risksGeopolitical risks present a significant challenge to achieving the Sustainable Development GoalsSustainable Development Goals (SDGs) (SDGs) in the European Union, disrupting economic stability, environmental sustainabilityenvironmental sustainability, and social progress. This chapter examines how geopolitical conflictsconflicts reshape corporate sustainability efforts by creating barriersbarriers at the environmental, economic, and social levels. Using the Triple Bottom LineTriple Bottom Line (TBL) approach, which integrates environmental, social and economic dimensions, the research explores how companies are managing these disruptions while maintaining their sustainability commitments. Geopolitical instability exacerbates financial uncertainty, disrupts supply chains and weakens regulatory frameworks, forcing companies to prioritise short-term survival over long-term sustainability goals. Economic performance is strained by declining investment levels, infrastructure and increasing market volatility, while social sustainabilitysocial sustainability suffers from labour displacement, declining labour protections and weakened community engagement. In addition, environmental sustainability is compromised since conflicts contribute to resource depletion, pollution and weakened enforcement of environmental standards. Despite these challenges, some companies are demonstrating resilience through adaptive strategies such as decentralised energy solutions, ESGESG integration and financial risk management. However, the effectiveness of these approaches depends on the broader geopolitical landscape, regulatory stability and international cooperation. The chapter highlights the urgent need for greater collaboration between businesses, policymakers and global institutions to strengthen business resilience and ensure sustainable progress towards the SDGs in an era of growing geopolitical uncertainty. The findings call for a reassessment of corporate governance and risk assessment models to better address the complex and evolving nature of geopolitical risk.