The green transition is causing increasing pressure for new land use projects in Sápmi (Saamiland), in Finland, Norway, Russia and Sweden. Numerous projects related to wind power and mining are being planned and initiated.
These projects have positive effects if they contribute to breaking free from fossil raw materials and energy, thereby mitigating climate change. They also create new jobs and generate land lease and tax revenues, often benefiting sparsely populated regions, thereby strengthening local employment, regional and national economies.
However, if the implementation of these projects does not consider social sustainability and the rights of indigenous peoples, they are not truly sustainable or responsible, despite being labeled as green. The Sámi people have for centuries been forced to yield to the needs of the majority population and have played their part in implementing the energy transition. One of the harshest examples in Finnish history is the construction of the Lokka and Porttipahta artificial lakes in the 1960s for hydropower. Entire Sámi villages and extensive reindeer grazing lands were submerged, and numerous people had to leave their homes. Now, accelerating investments in the green transition mean further shrinking of living space. The prospects and opportunities for Sámi youth to continue their traditional livelihoods are diminishing. Sámi culture is deeply connected to the land, and without a connection to the land and traditional livelihoods, the survival of Sámi culture is in jeopardy.
One of the prominent examples in failing to respect Sámi rights, is the construction of a wind farm with 151 turbines in Central Norway’s Fovsen (Fosen). The windmills were built before their impact on Sámi culture was properly assessed. Only after the construction was concluded and after the local reindeer herders had challenged the company in court, did the Norway’s Supreme Court rule that the wind power plants hinder reindeer herding, thus violating the rights of the Sámi as an indigenous people. The windmills, now labelled as illegal, have been operating in Norway for over two years, sparking significant international attention and protests. The wind power company Fosen Vind was also ordered to pay half a million euros in compensation to local reindeer herders.
Protected position ensured by the constitution and international agreements
The Finnish constitution guarantees the Sámi the right, as an indigenous people, to develop their own language and culture. This right is further regulated in various legislation, mainly related to land use. In addition, several international agreements secure the rights of indigenous peoples. In international law, the recognition and position of indigenous peoples has taken significant strides forward in recent years, while in many countries, including the Nordic countries, national legislation is lagging behind. Finland, as are the other Nordic countries, is obligated through international agreements to ensure and uphold indigenous rights, but has thus far failed to do so through its national legislation. Therefore, adhering to national law is not enough to secure the rights of indigenous peoples.
Benefits can be reconciled
In international law, the foundation of indigenous rights is the principle of Free, Prior and Informed Consent (FPIC). According to this principle, indigenous peoples shall be involved in projects well in advance and strive, in good faith, to reach a mutual understanding through negotiations. This does not mean that indigenous peoples have veto power and the ability to prevent all types of land use, but the project implementer must be able to credibly demonstrate that it has engaged in dialogue with a view to reaching an agreement and has assessed the cumulative impacts of the project on Sámi culture and ways of life.
It is evident that a responsible company considers the rights of indigenous peoples in its operations. This is also encouraged by the upcoming EU corporate responsibility law with due diligence obligations and the already effective corporate sustainability reporting directive (CSRD). If a company’s activities affect indigenous peoples, it must report on the impacts and the measures it takes to ensure the realization of the rights of indigenous peoples.
Now is a good time for businesses to take control of indigenous rights and understand how their own operations are linked to them. Considering these rights in a timely manner is an advantage for business and its effective risk management, as well as for its ability to meaningfully commit and conduct its sustainability efforts in practice.