An overview of CSR in the renewable energy sector: Examples from the Masdar Initiative in Abu Dhabi

Purpose – The purpose of this paper is the introduce corporate social responsibility (CSR) in Abu Dhabi, the biggest Emirate and one with the largest oil reserve in United Arab Emirates (UAE). Abu Dhabi set the first renewable energy policy in the region in January 2009. The policy calls for at least 7 percent of Abu Dhabi's power generation capacity to come from renewable energy sources by 2020. In 2006, the leadership of Abu Dhabi made a strategic decision to establish a globally competitive renewable energy sector in the country and hence the Masdar Initiative was created. It is driven by the Abu Dhabi Future Energy Company (ADFEC), also called Masdar. Design/methodology/approach – The paper focuses on the corporate social responsibility of Masdar and the role the firm is playing as the “prime mover” in the renewable energy sector in UAE and the region. The paper is structured in the following manner. First, the literature on corporate social responsibility is reviewed. Second, the environmental challenges of UAE are highlighted. Third, the paper discusses the different business units of Masdar and their related projects and investments at local, regional and global levels. Finally, the role of ADFEC as a “prime mover” in sustainability and corporate social responsibility is highlighted. Findings – Masdar has taken leadership in CSR and sustainable energy technologies in Abu Dhabi, UAE and the region. Originality/value – The case demonstrates the willingness of oil-producing countries to become more sustainable and to do something about climate change. The Masdar Initiative, which includes the first carbon-neutral city, can be regarded as a benchmark for future similar projects in the region and around the world.