Energy Research & Social Science 16 (2016) 69–77 Contents lists available at ScienceDirect Energy Research & Social Science jo ur nal homepage: www.elsevier.co m/locate/erss Original research article Negotiating uncertainty: Corporate responsibility and Greenland’s energy future Emma Wilson Associate of the Scott Polar Research Institute, University of Cambridge, United Kingdom a r t i c l e i n f o Article history: Received 27 September 2015 Received in revised form 7 March 2016 Accepted 16 March 2016 Available online 8 April 2016 a b s t r a c t Until recently energy and minerals development were seen as a promising way for Greenland to earn the revenues to gain full independence from Denmark. Yet with the collapse in the price of oil in 2014, a future that is reliant on commodity markets is looking less certain. This paper looks at Greenland’s hydrocarbon sector through the lens of corporate social responsibility. Greenland’s business community has a well-developed sense of what CSR means in the Greenlandic context, while foreign companies have introduced the need to systematise these values as business strategy and policies. A weakness in the potential of foreign companies to contribute to sustainable local-level development is the possibility of them withdrawing when investments no longer appear viable, as some oil majors did in January 2015. Government capacities need to evolve to address the heightened risks of environmental damage, societal vulnerability and the unpredictability of investment and revenues associated with extractive industry development. A particular challenge is the lack of meaningful public involvement in decision making and the risk that the ‘social licence to operate’ of future energy projects will be determined by a few elected politicians. The role of civil society is critical to help tackle this challenge. © 2016 Elsevier Ltd. All rights reserved. 1. Introduction Until 2014, Greenland’s energy and mineral resources were seen by many as the country’s great hope for securing independence from Denmark [86]. Yet several factors have caused the govern- ment and industry to reassess this potential. In January 2015 three oil majors pulled out of exploration in Baffin Bay following the oil price crash of 2014, and a major iron ore project was rescued from bankruptcy by the Chinese [2,56,41]. At the same time, a long- awaited aluminium smelting project that would utilise Greenland’s hydropower potential remains inactive; while the relaxation of a moratorium on uranium mining has led to public protest and polit- ical disagreement [78,67]. All of this indicates uncertainty around an independent future that is heavily reliant on the extractive industries and associated commodity markets. Yet the prospect is enticing. Greenland has some of the world’s richest resources, including rare earth metals, iron ore, gold, copper, zinc, gem- stones, uranium and hydropower. Oil development is still in the exploratory stages, but exploration itself has a range of effects, as this article explores. 1 E-mail address: emma.wilson@ecwenergy.com 1 Greenland’s gas is currently less interesting for investors due to the difficulty of transportation to markets, which are well supplied at present. In the context of unpredictable and often politicised energy and mineral resource development, a lack of experience within govern- ment and local industry in managing large-scale industrial projects, and an overstretched civil society, this paper considers the respon- sibilities of business – both local and international – in ensuring that Greenland’s energy future is sustainable. How do corporate social responsibility (CSR) approaches differ among Greenlandic and foreign businesses and how do they complement one another? Should the government provide stronger regulation and guidance on CSR? 2 How do the responsibilities of business relate to those of other sectors of society, in particular government and civil society? To what extent should the responsibilities of business relate to the sustainable future development of Greenland, even in cases where companies themselves are unsure about their long-term commit- ment to resource extraction in the country?. 2. Contextual analysis: energy and minerals in Greenland Global energy markets and trends could shape Greenland’s future in different ways, and there is considerable international 2 Abbreviations: CSR—corporate social responsibility; EIA—environmental impact assessment; FPIC—free, prior and informed consent; GOIA—the Greenland Oil Indus- try Association; IBA—impact and benefit agreement; UNDRIP - the UN Declaration on the Rights of Indigenous Peoples. http://dx.doi.org/10.1016/j.erss.2016.03.009 2214-6296/© 2016 Elsevier Ltd. All rights reserved.