Relevance, Potentials and Success Factors of Regional Multi-Stakeholder Cooperation for Corporate Decarbonization – Evidence from German Business

Abstract Background A growing number of companies worldwide develop proactive strategies for climate protection. These efforts for corporate decarbonization are frequently embedded in the transformation of entire sectors and infrastructures. However, such transformative processes inevitably impact on local communities and lead to growing interdependencies between companies and multiple local stakeholders. While these interdependencies create a compelling case for regional multi-stakeholder cooperation, management-oriented research has hitherto neglected the regional dimension of multi-stakeholder cooperation and its benefits for corporate decarbonization. Results This research introduces a framework and taxonomy enabling us to identify suitable forms, potential areas and success factors for collaborative approaches to corporate climate protection at local level. Presenting the results of an in-depth study on German business, this paper shows that regional multi-stakeholder cooperation is increasingly recognized as a critical dimension of corporate strategies for climate protection. The acknowledged need for transformative change constitutes the overarching common purpose for such collaborative approaches. Infrastructure-related areas such as energy, mobility, or industrial and commercial district development emerge as particularly meaningful fields for regional cooperation. The study finds that a competently managed, institutionalized multi-stakeholder network; implementation-oriented joint projects; and the empowerment of regional managers to act as local change agents are the key ingredients for effective regional cooperation benefitting corporate decarbonization. Conclusion The study argues that regional multi-stakeholder cooperation is still a neglected but essential strategic dimension for corporate decarbonization. Effective collaborative corporate strategies for climate protection at local level require the systematic integration of this dimension into prevailing management practices, processes and tools inside their organizations. Corporate leaders need to demonstrate a strong sense of agency to champion transformative change at local level.