Geopolitics and governance of global economies

ESCP Observatory

Alberta Di Giuli, ESCP Business School: 'In complex geopolitical contexts, boards return to the centre of strategic decisions'

"The role of boards of directors is transforming," according to Alberta Di Giuli, Professor of Finance and Dean of ESCP Business School in Turin, "from bodies mainly oriented towards supervision and control, to subjects increasingly involved in strategic direction, management of global interdependencies and safeguarding the resilience and values of the company

by Giorgia Colucci

29 May 2026

Thurstan Hinrichsen/peopleimages.com - stock.adobe.com

4' min read

Translated by AI

Versione italiana

4' min read

Translated by AI

Versione italiana

(Il Sole 24 Ore Radiocor) - Factors of geopolitical instability - such as the war in the Middle East - the security and resilience of supply chains, the increasingly widespread use of AI, but also "the choice of funding sources and financial partners, as well as the governance of institutional communication in contexts of high political and reputational sensitivity". These are some of the challenges facing CEOs and boards of directors today, 'in a scenario marked by political risks, market fragmentation, trade tensions and the redefinition of international balances'. Explaining this in an interview is Alberta Di Giuli, Professor of Finance and Dean of ESCP Business School in Turin, who emphasises how geopolitical tensions are bringing Boards and top management back to the centre of strategic decisions.

Political uncertainty at the centre

In recent years, ESG issues have occupied a central position in board and management discussions, especially in light of the growing awareness of critical climate issues and, at the same time, the importance of gender diversity and inclusion in corporate decision-making processes. However, between 2025 and 2026, due to tariffs and ongoing conflicts, political and economic uncertainty has become predominant. Indeed, in today's more unstable and polarised environment, "companies are being called upon to confront new vulnerabilities, from regulatory changes to geopolitical tensions," explains Di Giuli. For this reason, climate and diversity issues - which until recently seemed destined to remain at the centre of the debate - have gradually lost centrality, especially in the United States.

This trend is also confirmed by data. According to the Conference Board C-Suite Outlook 2026 Global Survey, in 2025, 37.5 per cent of European CEOs, and 36.3 per cent of US CEOs, cite political uncertainty as the main external governance factor that will have a negative impact on business. In addition, "within this transformation we also see a weakening of globalisation as we have known it so far," Di Giuli notes. In its place, a multipolar and more fragmented order is taking shape, 'in which large and medium-sized powers compete to define and impose rules and standards on a regional basis'. In this new order, the forms of economic intervention used as instruments of power are also strengthening: investment controls, sanctions, government subsidies, trade restrictions and currency measures.

Learning to manage uncertainty

Within such a scenario, 'the role of boards of directors is transforming,' according to Di Giuli, 'from bodies mainly oriented towards supervision and control, to subjects increasingly involved in the strategic direction, in the management of global interdependencies and in the protection of the company's resilience and values. Today, in fact, governing the business no longer means only overseeing traditional economic, financial and regulatory profiles, but also equipping oneself with new skills to interpret and manage political and geopolitical pressure. A variable that, together with artificial intelligence - increasingly intertwined with power dynamics, security and competitiveness - and cyber attacks, has emerged as a central theme in 2026.

This continuous evolution of the international landscape "requires Boards capacity to adapt and more sophisticated analysis tools". Therefore, looking at the characteristics of today's board members, there is a need to rethink governance, including through the entry of new profiles of directors, better prepared to interpret the context, regulatory volatility and political implications of corporate choices. However, it is unclear whether BoDs already have the necessary knowledge, time and organisational infrastructure to adequately deal with this new scenario, as also emerges in the Corporate Governance and Industrial Policy 2025 of the. European Corporate Governance Institute.

AI, ally and source of criticality

Artificial intelligence can, however, become an ally of boards, enabling them to analyse large amounts of data, interpret complexity and strengthen decision-making processes. At the same time, however, this technological tool 'is itself a source of criticality', warns Professor Di Giuli, as also confirmed by managers. According to the Conference Board C-Suite Outlook 2026 Global Survey, 34.5 per cent of CEOs in Europe indicate AI as the main source of concern among factors exogenous to the company, while 25.3 per cent consider AI regulatory developments as the main source of uncertainty among governance factors external to the company. Indeed, artificial intelligence 'can expose sensitive data, generate distorted outputs and create potential compliance problems', says Di Giuli. For these reasons, CDAs must possess, or rapidly develop, specific skills on AI, so that they can seize the opportunities without underestimating the possible consequences.

ESG as enterprise value

In general, in order to protect the resilience of companies, boards need to equip themselves with the necessary skills, time and organisational infrastructure to read complexity, interpret signs of instability at an early stage and make decisions consistent with long-term strategy. With this in mind, ESG strategies can also have more space again. In particular, these "can become a lever of growth when they stop being considered merely as a reputational safeguard and are integrated into the industrial, organisational and governance choices" of companies, continues Di Giuli.

However, it must be considered that, unlike political and geopolitical pressure, which is perceived as immediate, the climate issue continues to be seen by businesses as a longer-term challenge.

For this reason, more and more companies are becoming extremely selective with regard to environmental and gender issues: today there are "fewer generalist ambitions, more credible strategies, sustainable over time and also legally and politically defensible", she says. Companies are learning to link ESG strategies to their values. A key move at a time when short-term pressures, such as those related to geopolitical confrontation (source: World Economic Forum 2026), are more intense. In fact, today, in order to avoid 'that emergencies perceived as more urgent end up weakening their identity, mission and long-term vision', boards, Di Giuli concludes, 'must be even clearer about the organisation's guiding principles'.