Perspectives on Leadership; Sustainability, and Investor Confidence After Trump’s Brussels Trade Deal, EU Digital Sovereignty Ambitions, Europe’s Lithium Paradox, ECB Climate Lending Factor, Independence Days of Pakistan & India

IN WEEK 33, 2025
Quiz

What is the name of the EU directive introduced in 2022 that requires large companies to publicly disclose verified data on their environmental, social and governance (ESG) impacts—applying a „double materiality“ standard?

The Corporate Sustainability Reporting Directive (CSRD)

Welcome

Dear Readers,

Welcome to the Diplomacy Berlin Newsletter,

True diversity starts where the power lies, not in the branding. This week, we welcome the insights of a remarkable woman working at the intersection of business and sustainability. She speaks frankly about the inertia of tradition-rich industries, the balancing act between shareholder demands and environmental commitments, and why diversity must move beyond branding to become embedded in real decision-making power.

We also take a moment to mark several important dates: the Independence Day of Pakistan (14th August) and India (15th August).

On a personal note, I can’t help but admire the latest Lichtturm edition in collaboration with Monocle — a perfect example of elegance meeting substance. In this edition, we are also taking a closer look at Donald Trump’s Brussels trade deal and its impact on EU investor confidence, as well as the broader shifts in Europe’s economic landscape. We invite you to read and share your thoughts with us.

If you would like to submit a text for our upcoming newsletters or press releases, please send it to editorial@diplomacy.berlin.

With best regards,
Sigrid Arteaga

In The Hood

Perspectives on Leadership, Sustainability, and Change: An Interview with Nicola Brüning

Nicola Brüning served as the head of the BMW Group’s representative office in Berlin for over a decade, where she was the key spokesperson coordinating the automotive company’s stakeholder network across politics, ministries, embassies, and business associations. Before joining BMW, Ms Brüning built her career as a journalist, reporting for national and international media on business and politics. She is fluent in English, French, and Spanish. In April 2021, Nicola Brüning founded Startup Mobile4Minds, a company dedicated to developing innovative mobility solutions for urban and rural areas in collaboration with policymakers, associations, municipalities, and industry partners. Beyond her entrepreneurial activities, Nicola Brüning advises executives on strategic positioning and leverages her extensive network to foster lasting stakeholder connections.

In your work at the intersection of business and politics, what do you see as the most urgent barrier to embedding sustainability into long-term corporate strategy?

One of the most urgent barriers to embedding sustainability into long-term corporate strategy is the inertia of large, tradition-rich industries such as the German automotive sector While there is a clear understanding of importance of sustainability, these companies ofte operate within deeply entrenched business models, supply chain structures and a strong focus on cost optimization. Decision making ca be slowed by complex governance layers and the constant balancing act between shareholder expectations and environmental commitments. On the political side, regulatory frameworks – for example the EU’s evolving climate and circular economy legislation – are often ambitious but can also be fragmented or inconsistent in their implementation timelines. This creates uncertainty for long-term investment planning. The challenge is not a lack of vision, but the difficulty aligning short-term financial imperatives, internal transformation processes and shifting policy requirements into coherent, forward looking strategy – and doing so quickly enough to remain competitive in a global very fast moving market.

How can organizations move from performative diversity initiatives to real structural change in leadership and staff representation?

My advice: Stop treating diversity as a branding exercise and start treating it as a business-critical transformation. That means changing who makes decisions, not just who’s in the marketing photos. Tie leadership incentives directly to measurable diversity outcomes. Remove structural barriers in recruitment and promotion and accept that real change will be uncomfortable – especially for those who have long benefited from the status quo. If diversity is embedded in power structures and not just in HR programs, it will be performative.

What’s one unexpected habit or mindset from your career that you now consider essential — even if it seemed small at first?

I used to think the fastest way to make things change was to charge ahead with big ideas and energy. Early in my career especially in large, traditional organizations I often found myself outpacing the system – and in environments with endless layers of multiple teams – that just mens you end up running alone Over time I learned that the real skill is to slow down, map the processes and identify where those are, who decide. In big corporations it is rarely about convinging everyone at once; it’s about building the right coalitions, one step by time. It feels less dramatic than a big launch, but it’s far more effective – because your ideas don’t just make noise, they survive the system an actually take root.

Measure

Investor confidence in the EU drops after Trump's Brussels trade deal

A recent report in The Guardian (August 4, 2025) highlights a significant decline in investor confidence across the European Union following the controversial trade agreement struck between the EU and the United States under the Trump administration. The deal, touted as a breakthrough, has drawn widespread criticism from business groups and political leaders who argue that it favors short-term avoidance of trade tensions over long-term strategic interests of Europe. Many investors fear it may deepen Europe’s economic dependence on the US, undermining ambitions for defense and economic sovereignty.

The skepticism toward the deal reflects broader concerns about unpredictable US policies and the perceived necessity for Europe to balance cooperation with caution. This development adds to ongoing debates within the EU about charting a more independent course in trade and foreign policy, emphasizing the need to strengthen European industrial capacity and reduce reliance on transatlantic frameworks that may no longer align with European strategic goals. You can read the full article here on the Guardian.

Read

The EU’s Digital Sovereignty Ambitions and Conceptual Politics

This research examines how the European Union’s pursuit of digital sovereignty is shaped by an active contest over foundational political concepts such as rights, governance, and agency within fast-moving technology policy debates. Applying a conceptual politics framework, the study illustrates how EU policy discussions both reflect and reshape the meaning of these key notions as the EU balances visionary, future-oriented discourse and rising technocratic governance. Through cases like digital rights and blockchain regulation, the research shows the EU frames technological innovation as both inevitable and progressive, which paradoxically narrows democratic debate and entrenches technocratic tendencies. This framing influences how governance models evolve and impacts the digital future of Europe. For a deeper exploration of how conceptual politics underlie EU governance and digital ambitions, see the full article at Morrison Foerster.

Listen

Economic Consequences of Europe’s New Geopolitical Situation, with Moritz Schularick

This episode of “The Week That Was in Europe” features Moritz Schularick, President of the Kiel Institute for the World Economy, as he explores how Europe’s changing geopolitical context is reshaping its economic future. The conversation addresses the impact of an increasingly assertive Russia, ambiguous US commitments to European security, and China’s evolving role in global markets. Schularick discusses what these geopolitical shifts mean for Europe’s economic strategies, the stability of its industrial base, and the policy responses needed to safeguard growth and resilience in turbulent times. For informed, accessible analysis on the intersection of politics and economics in Europe today, listen to the full episode on Apple Podcasts.

Watch

Europe’s Lithium Paradox: Critical Resource for Green Transition Meets Supply Challenges

The documentary “Europe’s Lithium Paradox” investigates the growing demand for lithium as a vital resource in Europe’s ambitious green transition, particularly for electric vehicles and renewable energy storage. The film explores how Europe faces a complex dilemma: the need to secure sustainable and ethical lithium supplies while grappling with environmental, geopolitical, and social challenges. Despite vast potential for lithium extraction in Europe, regulatory hurdles, local opposition, and technological constraints hamper supply expansion. Meanwhile, dependence on lithium imports from politically sensitive regions raises questions about Europe’s resource sovereignty and strategic autonomy. The documentary provides critical insights into the balancing act between environmental ambitions and real-world mining realities, emphasizing the need for integrated policies that address sustainability, innovation, and geopolitics. For more information and to view the documentary, see the joint press release from CICERO Horizon.

Highlighted
  • Director Arthur Franck on his Doku about the Helsinki-Conference: „I’ve decided to be an optimist.“ diplo.news
  • UN names Nigerian poet global peace advocate. africanews.com
  • UK homelessness minister quits over eviction, rent hike claims. scmp.com
Learn

ECB to consider 'climate factor' when lending to banks

The article reports that the European Central Bank (ECB) is set to incorporate a „climate factor“ into its lending criteria for banks, signaling a strategic move to align monetary policy with the EU’s climate goals. This initiative aims to encourage banks to increase financing for sustainable projects by providing preferential treatment to those demonstrating strong climate risk management and green investment portfolios. The policy shift reflects growing recognition of climate change as a systemic financial risk and reinforces the ECB’s commitment to support the EU’s transition to a low-carbon economy. By adjusting collateral frameworks and lending operations, the ECB seeks to influence banks’ behavior, incentivizing them to integrate environmental considerations into their risk assessments and lending decisions. This development highlights the expanding role of central banks in addressing climate change beyond traditional monetary policy tools. For comprehensive details, see the full article on Reuters.

Follow

Bruegel: Europe’s Premier Think Tank Specializing in Economics

Bruegel is a Brussels-based European think tank established in 2005, specializing in economics. It is independent and non-doctrinal, dedicated to improving the quality of economic policy through open, fact-based research, analysis, and debate. Bruegel’s membership comprises EU Member State governments, international corporations, and institutions. Its core research areas include European and global economics and governance, finance and financial regulation, innovation and competition, and energy and climate policy.

The think tank operates on a three-year research cycle with annually updated priorities, adopted after broad consultations with scholars, members, and stakeholders. It hosts around 80 events yearly and regularly shares in-depth research, policy briefs, and real-time insights to influence economic policymaking. For comprehensive economic insights and updates, explore Bruegel’s extensive resources and follow their engagements online. For more information, visit their official website.

Attend

World Forum on Democracy & Peace 2025 – Advancing Development, Democracy, and Peace

Join the World Forum on Democracy & Peace taking place from October 1st to 4th, 2025, in Potsdam and Berlin. Hosted by the Academy for Cultural Diplomacy in cooperation with global governance organizations, this forum offers a neutral platform dedicated to advancing development, democracy, and peace worldwide. The event features a rich agenda of lectures, discussions, debates, and cultural activities, attracting renowned figures from international politics, academia, and diplomacy, including political representatives, scholars, and young professionals.

The forum fosters interdisciplinary dialogue, bringing together diverse perspectives to inspire innovative thinking and promote interactive engagement among all participants formally and informally throughout the event. It is part of a broader five-year initiative focused on using cultural diplomacy to improve international relations.

For details on the program, speakers, and registration, visit the official World Forum on Democracy & Peace website.

Buy

Monocle by LEUCHTTURM1917: Elegant Notebooks for Design and Inspiration

Experience the exquisite blend of design and functionality with the Monocle by LEUCHTTURM1917 collection. These notebooks feature a luxurious hardcover made from book linen with a distinctive gold Monocle logo embossing, perfectly crafted for those who appreciate style and substance. Each notebook contains high-quality, lightly chamomile-colored paper with 117 to 181 numbered pages, available in dotted line format, ideal for notes, sketches, or journaling. The Monocle Guide included on six folded pages offers thoughtful ideas for living a quieter, more considered life.
Perfect for professionals, creatives, and anyone seeking inspiration in their daily writing or planning, the Monocle notebooks bring together timeless aesthetics with modern content.
Explore the collection and order your Monocle by LEUCHTTURM1917 notebook today from official retailers or online at LEUCHTTURM1917 Monocle Collection.

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