Multinational Companies’ Policies in Green Transition: Economic and Social Benefits

Abstract

The paper analyses the multinational companies’ policies in the green transition and its consequences for the environment, society, and economy. Multinational corporations (MNCs) in green transition operate across numerous nations and sectors and have the resources, and experience in sustainable development. MNCs became increasingly involved in large-scale renewable energy project development, such as wind and solar power, serving as project developers, investors, and technology suppliers. It is already well recognized that MNCs may play a key role in disseminating essential climate change mitigation technologies, particularly the transfer of knowledge and capacities from lead markets to the rest of the globe. The green transition faces many challenges: high costs, regulatory barriers, technological advancements, and costeffectiveness. These approaches explain the global reach of environmental problems and enhance significant changes in green policy. MNCs’ policies contribute to sustainability but face the multiple challenges caused by local regulations in environment protection policy, investment risks and financing constraints, and climate changes. MNCs provide policies in the green transition by integrating sustainability into their business strategies and operations. The legislation, incentives, and supportive frameworks of the subsidiaries’ country destination create the basis for the involvement of MNCs in the green transition.