• Energy Research

This paper focuses on the concept of Corporate Social Responsibility (CSR) and its relationship with sustainability. The authors investigate the linkages between CSR and sustainability at both enterprise and country levels. The main focus of this study is the energy sector due to its importance in terms of economic, environmental, and social impacts. There are some doubts as to whether a socially responsible business meets public welfare expectations and fosters the country’s social and economic development, as well as the successful achievement of sustainable development objectives. However, it becomes apparent that the development of corporate social responsibility in the energy sector faces a plethora of challenges. Corruption is one of the most important challenges of sustainable energy development. The study analyzes the main areas of CSR policies where energy companies are expected to make a positive contribution to sustainable energy development: mitigation of environmental impact, economic and social development, and good governance. The authors argue that the corruption risks represent a very important issue that is hampering sustainable energy development, and CSR can be applied to mitigate these risks in the energy sector. In addition, government policies might be necessary to create a favorable environment for corruption risk mitigation. The study analyzes the main tools of corporate social responsibility in the energy sector and addresses the impact of CSR on the sustainability of energy sector and corruption risk mitigation. The study analyzes a corruption risk mitigation model in the energy sector and provides recommendations for strengthening corporate social responsibility and mitigating corruption risk. Our results show that CSR can play a vital role in dealing with corruption in the energy sector at the enterprise level. It becomes apparent that anti-corruption standards represent the main supporting means for achieving other CSR goals and principles. Therefore, mitigation of corruption risks should become a priority for socially responsible companies that are operating in the energy sector.

European Union (EU) has set ambitious energy and climate targets for the EU Member States. Some EU Member States (MS) confirmed to attain 100% of renewables in power generation by 2050 and implement carbon-free economy target. The purpose of this study is to assess and compare the avoided external costs of electricity generation due to the penetration of renewables in the Baltic States by implementing EU energy and climate targets for 2020, 2030 and 2050. The switching to renewables has significant social benefits for the EU member states, as fossil fuel burning is linked with the climate change and emission of classical air pollutants (SO2, NOx, particulate matter, NH3, NMVOC), which can have various negative impacts on the human health. The analysis and forecasts of external costs of power generation by 2050 in the selected countries, i.e., the Baltic States, has shown that Estonia is able to achieve the highest avoided external costs and highest health benefits from renewable promotion due to the oil shale that is dominating in the power generation structure. The main input of this study performed in the Baltic States is to show how subsidies for renewables correspond to the reduction of external costs of power generation and to provide important policy implications for these countries. Moreover, this can be an example for other countries how to assess the benefits of renewables support.

This paper aims at developing the theoretical framework for linking the CSR of energy utilities with sustainable energy development achievements and at applying this framework in selected countries. The main issues of CSR relevant to the energy sector are discussed, and a comparative analysis of CSR reports of energy utilities and sustainable energy development trends in the Baltic States (Lithuania, Latvia, and Estonia) is performed based on the developed framework. There are three main interlinked sustainable energy development targets: increase in energy efficiency, the use of renewable energy sources, and GHG emission reduction. The significance of CSR in the energy sector is underlined based on the literature review, and the state policies to promote CSR in the energy sector are discussed and critically assessed based on the case studies of three Baltic States. The CSR practices of energy utilities of the Baltic States were assessed and compared with sustainable energy development achievements in these countries, based on the analysis of sustainable energy development trends. Estonia achieved the best results in approaching all sustainable energy development targets and was ranked with the highest scores in CSR ranking among the Baltic States, followed by Lithuania. The results of the case studies demonstrate that the Baltic countries have achieved different results in sustainable energy development progress, and the role of energy utilities and their corporate sustainability practices may have huge impacts on the achievement of sustainable energy development targets.

AbstractRenewable energy sources (RES) are the main drivers of sustainable energy development. Notwithstanding the substantial expansion of renewables in the past decade, boosted by the various policies and measures, renewable energy sources are still far from full incorporation into the energy markets. It is necessary to overcome the remaining impediments for renewables to realize the energy transition to 100% renewable energy. The aim of this research is to analyze the main barriers of renewables and success of policies dealing with these barriers. The case studies in the Baltic States provide concrete examples of policies and their impacts in terms of overcoming barriers in relevant sectors: heating and cooling, power and transport. The assessment of policies in the Baltic States shows that there are a few measures that are implemented in the transport sector, although this sector encounters many social, economic, technological, and regulatory barriers. The countries have achieved the lowest results in approaching RES targets in transport. New financial incentives and investments in the development of infrastructure for electric vehicles are crucial for the development of markets of electric vehicles.