TABLE 1 Main decision domains to embed geopolitical muscle Decisions Descriptions Examples provided during interviews Procurement and supply chainAssessing supplier exposure, inventory levels, logistics chokepoints and potential sanctions impacts –Supplier localization: Healthcare company moving away from reliable and cost- effective Chinese suppliers for its US supply chain as part of localization efforts initiated during COVID-19 and accelerated with the implementation of US tariffs –Transport security: Chemical company coordinating with the US Navy to rescue a ship intercepted by pirates in the Gulf of Aden through cross-functional task force (GA, security, legal, supply chain) activated at 11pm to coordinate action Risk reviews and ERMReviewing geopolitical factors in the risk taxonomy and scenario planning –Asset protection: Company in extractive industry building and socializing three scenarios on US–China tensions mapping shipping disruption, procurement risk, dividend remittance limits, asset exposure to public shareholder scrutiny –Compliance anticipation: Industrial company preparing for the EU Battery Regulation to ensure proactive compliance and continued market access for its next generation of electric vehicles Policy advocacy and engagement strategyAligning engagement priorities with market and regulatory exposure –Direct engagement: Logistics operator engaging with ministries of health in several African countries affected by cuts to USAID to fill the gaps and position itself as an end-to-end healthcare supply-chain partner with a dedicated offering –Hostile takeover defence: Extractive industry company resisting hostile takeover thanks to connections with home market administration opposing the transaction Strategic planningIncorporating geopolitics into market entry, product launch and pricing decisions –Product launch: Healthcare company rethinking global product launch due to US MFN drug pricing8 and considering abstaining from certain markets as it would set a floor price too low to be replicated –Commercial focus: European company prioritizing commercial tenders in foreign countries through EU–US competitive angle and identifying potential clients and contracts to focus efforts Capital allocation and investmentGuiding manufacturing localization, M&A and capital expenditure allocation –Localization: Automotive company setting up new industrial hubs in India and Mexico to localize production closer to end markets and hedge its footprint against geopolitical disruptions –M&A clearance: Energy company bringing geopolitical muscle into M&A decisions to onboard domestic policy-makers, navigate target political landscape and secure approval of state actors Innovation and intellectual propertyIdentifying where to (re)localize R&D and intellectual property in light of technology sovereignty and export controls –Delays: Healthcare company considering wait-and-see approach to some complex high-risk R&D platforms, viable only at global commercial scale External communications and marketingEnsuring that public messaging aligns with local political sensitivities –House view: Healthcare company distributing weekly talking points to general managers during the tariffs announcement to ensure coherent and systematic messaging –Reputation: FMCG company leveraging favourable perception of its local companies and brands to counter boycott threats in one of its markets IT and cybersecurityConnecting cyber risk to geopolitical exposure, prioritizing countries or business lines for tech stack modernization –Tech modernization: Financial services company prioritizing tech stack modernization factoring geopolitical inputs, notably exposure to cybersecurity risk and how modernization signals resilience, commitment to local economies and alignment with government priorities Building Geopolitical Muscle: How Companies Turn Insights into Strategic Advantage 22

Building Geopolitical Muscle 2026