Collective transitioning of a heavy industrial area towards ‘Net Zero Carbon’: the critical role of Governance in delivering Enterprise action

Abstract

Industrial enterprises around the world are grappling with greenhouse gas emission reduction expectations, whether being driven by respective government policy for climate change or by shareholders to drive corporate sustainability through maintaining access to their ‘net zero’-demanding markets. In some instances, the enterprises co-located within complex industrial areas are coming together to face the common carbon reduction challenge as a collective. The Kwinana Industrial Area in Perth, Western Australia is well regarded on the world's stage as a successful integrated heavy industrial precinct, presenting as an extensive, complex, and broad-based example of Industrial Symbiosis. In earlier papers, the authors have posited a novel four-dimensional framework to expand the definition of Industrial Symbiosis to be used to understand why one industrial precinct may be more successful for its resident industries to operate within than another, and for application in the design of new industrial areas. The four dimensions are described as Materials Exchange, Skilled Workforce, Support Industry, and Governance. Through the lens of climate change literature and policy frameworks, we investigate the governance dimension and industry's response to the contemporary climate challenge. The outputs of the paper include a literature review of the governance dimension, and a description of the cascading nature of climate change policy from global through to the enterprise level. We illustrate how climate change governance is enhanced in practice by detailing how the enterprises in Kwinana collectively responded to the global requirement for carbon reduction, achieved through the facilitative governance-based intervention of their industry association, the Kwinana Industries Council. Exploring this in-practice example helped to consolidate the hypothesis that successful industrial symbiosis is about positive relationships across several dimensions building towards improved Circular Economy outcomes.