Businesses engaging in energy transitions are developing sophisticated tools to report their commitment to tackling environmental, social, and corporate governance (ESG) issues. But how credible are these reports in contexts without peace? It is unclear how businesses investing in institutional contexts with a lack of “good governance” – a failure by the government to meet the needs of society – can report a commitment to ESG when they do not contribute towards human rights protection, peacebuilding, and reconciliation in the countries and communities in which they are investing, despite the urgent social need.

In Colombia, since the signing of a Peace Agreement between the Colombian government and the Revolutionary Armed Forces of Colombia (FARC) in 2016, green energy investments have had an important role in progress towards peacebuilding, as per Goal 16 of the SDGs. Green investment and SDG 7 are also emphasised through Colombia’s Energy Plan for 2050 (E2050), which aims to achieve socioeconomic goals whilst setting realistic long-term goals for reducing greenhouse gas emissions and achieving climate resilience.  

The launch of the E2050 plan in 2020 appears to have bolstered the confidence of businesses involved in green investments – currently, there are 33 wind and 13 solar energy projects underway in Colombia. The region of La Guajira has emerged as the epicentre of these investments. According to the Colombian government, green investments worth $10 billion Colombian pesos will be made in La Guajira, generating 11,000 jobs and consolidating La Guajira as the gateway for green energy. The construction of the wind farm in Colombia, “La Guajira I”, was inaugurated on January 22, 2022 by the President of Colombia, Iván Duque in La Guajira, with wind turbines supplied by the Danish firm Vestas.

However, there is a darker dimension to this green investment growth. The National Army of Colombia has stationed troops at the site of the La Guajira I wind farm, claiming they are there to guarantee the safety of the inhabitants of La Guajira as well as the “strategic assets of the State”. La Guajira is a geopolitically important region due to its geographical location, border with Venezuela, and abundant natural resources (coal, oil, wind and sun), and it has been declared a Strategic Zone of Comprehensive Intervention (ZEII) as the epicentre of the green transition. But green investments have fuelled social unrest and created new conflicts between the Wayúu people – the ancestral owners of La Guajira’s territory – and representatives of the government and businesses. The national army asserts that militarising La Guajira is part of its constitutional obligations to safeguard the country’s vital assets through the “Defence and Security Policy for Legality, Entrepreneurship and Equity”. However, militarisation inevitably raises questions regarding the coherence between governance and sustainability, peacebuilding, and quality of life. Thus, militarisation contradicts the fulfilment of the rights and guarantees of the Wayúu people.

The primary obstacle to Colombia’s E2050 plan is the lack of comprehensive regulatory framework to ensure political stability and protect human rights. According to Indepaz, in 2021, 168 human rights leaders were assassinated in Colombia, 26 of whom were women; 48 signers of the peace agreement were assassinated, four of whom were women; and 326 people were victimised during 92 massacres. Further, Justice for Colombia reported that 22 trade unionists were murdered in Colombia in 2021, making Colombia the world’s deadliest country for trade unionists. Additionally, there is a convergence of unwelcome factors in the region, including instability, high crime, and insecurity, as well as unsatisfied basic needs, extreme poverty, and a population victimised by violence. For example, in 2021, 17 children in La Guajira died from malnutrition. These aspects point to a humanitarian crisis. This is the unfortunate reality in Colombia – a country that, on paper, appears to have a commitment to business and human rights: Colombia is a member state of the OECD and has a National Action Plan on Business and Human Rights, launched in cooperation with the Danish Institute of Human Rights. The E2050 investment plan was established to demonstrate Colombia’s commitment to climate change and the SDGs, particularly Goal 7. However, we posit that if the government and businesses were truly committed to the Paris agreement and ESG, they would consider investing in the governance and social development of La Guajira to solve critical necessities such as hunger (SDG 2) more “urgent” than building wind farms.

In order to secure a peaceful green transition in Colombia, energy policy should address SDG 16 directly. According to the World Economic Council, this means advocating for a coordinated action plan to deal with global issues like energy and climate neutrality and social justice in a new, more affordable way. The E2050 plan is deficient in energy literacy education, a process that humanises energy debate. There is a need to create a safe space for open discussion on the cost of a rapid transition to energy and climate neutrality, so that societies can determine if and how they can afford it. However, in the complex context of La Guajira – the epicentre of green investment in Colombia – how can the Wayúu people engage in such “open dialogue” if they lack access to food or water and if their children are dying of hunger?

Ensuring that all parties are involved in discussions is critical given Colombia’s long history of social movements, particularly of indigenous peoples, seeking to guarantee that all Colombians are included as stakeholders in decision-making processes affecting them. This involves an interest in debating energy transition while advocating for a more bottom-up approach to energy supply concerns. This bottom-up approach has prompted governments and energy sectors around the world to examine end-user access and supply security in order to develop more sustainable long-term solutions for local populations to survive.

On paper, the sophisticated ESG reports of the businesses investing in the energy transition in Colombia are attractive. But how sustainable can green investments be when the national army needs to be stationed there to protect them? Without peace, attempts to achieve Goal 7 of the SDGs through green investments are jeopardised, which could ultimately prove unsustainable for all. If businesses and governments were to commit to peacebuilding and human rights protection when investing in projects for climate change mitigation, it could provide the foundations for peace, justice, and strong institutions, as per SDG 16.

Jacobo Ramirez is a consultant and associate professor of Latin American business development at the Department of Management, Society and Communication (MSC) of Copenhagen Business School (CBS) in Denmark. Ramirez’s main research interest is organizational strategy in fragile states and other complex institutional environments facing security risks, displacement, and social unrest. Ramirez’s current work focuses on how renewable energy investments affect indigenous peoples’ communities and livelihoods. Ramirez is a Mexican-Danish dual national, born in Mexico to indigenous Mexican parents from the Isthmus of Tehuantepec. He has lived and worked in Copenhagen since 2006. Jacobo Ramirez can be contacted at jara.msc@cbs.dk.

Claudia Vélez-Zapata is a titular professor of the School of Economy, Management and International Business at Universidad Pontificia Bolivariana in Medellín, Colombia. Vélez-Zapata acquired her PhD at CEU San Pablo in Madrid, Spain. Her research focuses on Colombia’s illegitimate environments and their organisational impacts. Vélez-Zapata is currently an advisor for undergraduate and masters level management students and holds research seminars on Colombia, encounters, disagreements, and organisations. Claudia Vélez-Zapata can be contacted at claudiap.velez@upb.edu.co.

Diego Abraham Angelino Velázquez is a research assistant at the Department of Management, Society and Communication (MSC) of Copenhagen Business School (CBS) in Denmark, and an international advisor for sustainable development. He holds a master’s degree in international development from the Mora Research Institute in Mexico and is a member of the Managing Global Governance programme of the German Development Institute (DIE) in Germany. Angelino Velázquez’s work focuses on topics such as energy transition, resource scarcity, entrepreneurship, business and development, and partnerships for sustainable development. Diego Abraham Angelino Velázquez can be contacted at diegoangelinov@gmail.com.