STANDARDS FRAGMENTATION Fighting Against the Divide The year 2020 has seen a clear sharpening of divisions over the future of international standards governing business activities in a wide range of industries and settings. Established investment and trade rules and related processes have provided great certainty for companies over the past quarter century, allowing, for example, for the rapid expansion of global supply chains and cross border economic exchange. However, these arrangements face considerable strain today as can be seen in ongoing divisions within the World Trade Organisation and in negotiations over bilateral and regional agreements. How will new rules so urgently needed in other key areas – such as strengthening data security and digital infrastructure, responding to climate change and energy transitions, and building more inclusive and sustainable economies – be negotiated in a time of rising uncertainties, in particular between major powers like the United States and China? Will states seek to further marginalise traditional international organisations and approaches they view as limiting or ineffectual? Will they instead work to further develop and strengthen new, competing, parallel coalitions and exclusive economic zones of influence, all with potentially far less consideration for transparency and respect for human rights or labour and environmental protections? Businesses, governments, trade unions, and civil society organisations committed to human rights will need to have a clear and strong voice as these debates continue to unfold in 2021. Calls for accountability and adherence to existing international standards will be more important than ever as geopolitical competition continues to heat up in strategic governance areas, such as the technology sector and in particular geographic contexts such as & Human Rights 2021 Business Top 10 Issues the world’s oceans. Such leadership will also be critical in ensuring fairness and equity as new partnerships form to deliver COVID-19 vaccines to all regions. What seems certain is that a further rush to forge new standards and governance cooperation based on power politics, as well regional or ideological blocs in important sectors and contexts, could result in severe and unexpected adverse economic and social impacts, in particular for the people most vulnerable to exclusion. “ Defending and strengthening existing international standards relating to business transparency and good governance, including adherence to environmental, labour, and human rights standards, will be a crucial challenge for 2021 in ongoing times of unprecedented change. ” Such steps could further undermine the global order that has been built up over past decades and that now needs to be strengthened and reformed. Defending and strengthening existing international standards relating to business transparency and good governance, including adherence to environmental, labour, and human rights standards, will be a crucial challenge for 2021 in ongoing times of unprecedented change. Institute for Human Rights and Business 21