Organizations today are increasingly turning toward renewable energy solutions, driven by sustainability goals and a global shift towards cleaner practices. However, even the most promising renewable energy projects can encounter hidden barriers—often rooted not in technology, but in cultural nuances within the organization. Research indicates that culture can act as a salient but often unacknowledged barrier to low-carbon transitions (Sovacool & Griffiths, 2020). In other words, technical merit alone doesn’t guarantee success; organizational and social factors play a defining role in project outcomes (Energy Sustainability Directory, 2023a).
In our work supporting global organizations to enhance performance, we've observed how cultural dynamics significantly influence the success or failure of renewable energy initiatives. Take, for instance, multinational companies implementing solar projects across sites in India, Europe, and North America. Each location presents distinct attitudes towards hierarchy, collaboration, risk tolerance, and managing public opinion, all of which critically shape project outcomes. Studies confirm that national and organizational cultures vary widely in their approaches to risk and decision-making; for example, some cultures are highly risk-averse, preferring cautious, incremental changes, while others are more comfortable taking bold steps and embracing innovation quickly; similarly, decision-making norms can range from hierarchical (authority-driven) to consensus-based, and a collaboration that spans these divergent styles can experience significant delays and friction if expectations are not aligned (Energy Sustainability Directory, 2023a).
One organization we pushed hard for an offshore wind project but encountered persistent delays and limited internal enthusiasm. It turned out that their organizational culture valued short-term results over long-term innovation, creating resistance at multiple leadership levels. This “short-termism” mindset—common in firms fixated on immediate returns—can stifle transformative sustainability projects that require a longer horizon. Indeed, management experts note that misalignment between a company’s culture and its sustainability initiatives often leads to poor outcomes, no matter how well-intentioned the project (Behravesh, 2023).
Conversely, another organization leveraged cultural strengths by promoting renewable projects as expressions of community care and shared responsibility, successfully driving enthusiasm and adoption throughout their teams. It’s no surprise, then, that case studies of successful renewable energy initiatives often highlight the importance of aligning projects with community values, engaging in transparent communication, and proactively addressing concerns (Energy Sustainability Directory, 2024a).
Finally, as renewable energy initiatives expand globally, embracing cultural intelligence becomes a powerful enabler—ensuring not only technical success but meaningful and sustained organizational change. Experts are increasingly urging that renewable energy policies and technologies be made “culturally appropriate” for each target context (Sovacool & Griffiths, 2020). A recent study on energy transitions and social equity found that acknowledging and respecting diverse cultural values and knowledge systems is essential for building the trust and partnerships needed to drive change (Energy Sustainability Directory, 2024b).
References
- Behravesh, S.-A. (2023). The Impact of Organizational Culture on Sustainability. Thunderbird School of Global Management Insights. Retrieved from https://thunderbird.asu.edu/thought-leadership/insights/impact-organizational-culture-sustainability-0
- Energy Sustainability Directory. (2023a). What Role Does Culture Play in Collaboration? Retrieved from https://energy.sustainability-directory.com/question/what-role-does-culture-play-in-collaboration/
- Energy Sustainability Directory. (2024a). How Do Community Values Affect Renewable Energy Adoption? Retrieved from https://energy.sustainability-directory.com/question/how-do-community-values-affect-renewable-energy-adoption/
- Energy Sustainability Directory. (2024b). Why Are Cross-Cultural Comparisons of Renewable Projects Valuable? Retrieved from https://energy.sustainability-directory.com/question/why-are-cross-cultural-comparisons-of-renewable-projects-valuable/
- Sovacool, B. K., & Griffiths, S. (2020). The Cultural Barriers to a Low-Carbon Future: A Review of Six Mobility and Energy Transitions Across 28 Countries. Renewable & Sustainable Energy Reviews, 119, 109569. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3532572
