‘Globat vironmental Change 70 22) 102349 Global Environmental Change journal homepage: waww.clsevier comilocatelgloenvcha Conceptualizing and achieving industrial system transition for a dematerialized and decarbonized world Pramod K. Singh’, Harpalsinh Chudasama rae of Bure Monon Atel RBA, nel 35801, a eyo Dereon “The concep of instil sym Hnston invaded in he IPCC special iepoxt on Global Waning of 1.5 °C remains pot canepalae. tn this paper, we deepen the conceptslizatio ofthe indasta sea asian to decarbonzatio, enaterakzatio, and sistainablelndustal production. Alded by fuzzy copatve mags that tse perception base data fom stakeholders to model complex ad fel omuodel systems, we chart the paieys for Insta system tansion. The indus! stem tanstion ena nteratons between dense felalzation and decasonization goals wile enabling governance and systemic corporate statis. The 1 spondens ofthe fizzy cgative maps bed strveys comprised practioner rom companies, autho, ad the policymaking comnniy.Fuzy cognitive map-tase simulations reveal that resorting to technical eases of ematvalization and decarbonizatio is insufficient wo accomplish indus sjstem austen. The efficent Industal sytem arson to dematerialization and deeabonlzation requires the combined measies of () emacevalizaton and decarboaization (i) goremance, policies, and regulations (fective governance including twansational governance, technology push, matket pl, tecoiogy taser and financial Bows, cabon pice snd catbon market, and Gi) etaing corporate suateiesCegenetatve and conscons capitalise Conception of transparency, and collaborative and consruve lobbying). Large companies ake mos rane tational entities ecesstting the adoption of efetivetansational goveimanee satis for Ache the tbjecives of demateiiztion and dee bonization. Several tastatonal governance networks hake patee Under the publi-pivateeo governance uchanln In the dscrboniation space dominated by ely lager players. The advent of polyentiegoveriance provides ew opportniis for an local governance ete nie Dunbers of sual and medium enerpses can patepae ia the advancement of at lat decesboizain ob jeerves; however, sich etworks tequesuppact fom national goverment. Besides inplleations for gover ‘ance, polly and regulations, the Gndng ofthis research could also ave plietions fr cosporate bebatir in terms of promoting conscious and transpire organizational cute 1. Introduction 11. Deepening the concepraltzaion of tndestrial system transi Industilization, 9 ertical engine of growth, Is also a sign of ‘modernity. Industealization contributes to hunian wellbeing by ‘generating employment, economic growth, reducing poverty and in ‘equalities, and soci inclusiveness (UNIDO, 2013). Global anthropo ‘genie GHG emissions totaled 59 4 5.9 GtCOreq in 2018, with about ‘one-third of the total emissions contributed by the industry sector, if indirect emissions from energy use are considered (Cripp el, 2010). ‘The energy-intensive sectors of iron and steel, cement and refining together contribute over 30% of the overall industrial energy con: sumption (Napp et, 2014). * Gonesponding anor, ‘The 1PCC special report on Global Warming of 1.5°C introduced the concept of industrial system: transition, According to this report, in astral system transition involves carbon dioxide eapeure wtilization and storage (CCUS), energy efficiency, bio-based and etculariy, shift ing to low-or ero-emission power generation, such as renewables and hydrogen, electrifying transport and developing green infrastructure, ‘and improving energy efficiency by smart urban planning (de Coninck tal, 2018), The International Energy Agency (IEA) identified six partly ‘overlapping and interdependent mitigation options in the industrial sector: () demand management, (it) materials efficiency, (i) cicular Emel erste: prnmodine.acin,pramodima umi.con (PK Singh, Hapa Chdasania@kaovg (A, Chan) np /doLorg/10.1016/ gloenveh,2021.102349 Receive 14 Oxtber 2020 Received in essed form § May 2021; Accepted 6 Avgist 2021 [Availabe online 25 Ast 2021 (0956'3780/€ 2021 Esler Li, All gs reservedPX Sgh et H.C ‘economy an industial wast, (iv) energy effcleney, (0) eleeteation ana fuel switching, and (vi) CCUS, feedstock, and biogenic carbon fuel switching GEA, 20175 2019) ‘Material effiieney—the delivery of goods and services with less aerial (Wortellet i, 2016; 124, 2019), erelar economy along With demand management of raw materials (Geenilewiez eal, 2018), green Innovations (Shi era, 2012), and green supply chain’ management ‘bhishok and Divyashree, 2019) stimulate dematerialization measures. ‘Material demand ns been cited asthe primary reason for driving energy consumption and industrial emissions (IEA, 2019) In addition, material efficiency is inerewsingly seen as a crucial strategy for reducing indus tial GHG emissions (IEA, 2017; Material Economies 2019). Hence, both domteralzation and decacbonization are aeeded for industrial system “The sustainability transitions involve multiple, co-evolving elements including “technologies, markets, infrastructures, policies, industry structites, and supply and distribution chains” (Kabler et sl, 2019), ‘which are structured into stable regimes often Interpreted as technolo als, istrtions, and actors. Hence, the roe of governance, polities, ad ‘Teglation Is relevant. A poliey drive in terms of tecnological transition {s required to Improve material efficiency (Alyood etl, 2019), the eieular economy (Garmulewice et al, 2018), and the demand management of raw me terials, Similarly, a marker pul in terms of high and rising consumer demand for material efficiency (Rizos et al, 2016) and raw materials ‘management (Ola et al, 2019) is Hkely to induce manufacturers 10 invest in decarbonization. Market pull, powered by end customers, will encourage the adoption of new technologies, energysource de velopments (llwood er al. 2019), and energy efficiency (Kang and Le, 2016) when there isa direct corelation with increased revenue and ‘etums. Additionally, arbon pricing Is seen to bea vial ool fr low-cost ‘nd low-carbon mitigation strategies (yan ta, 2011). Enabling corporate strategies such as regenerative and conscious capitalism, market transformation, collaborative and. constructive lobbying, and @ new conception of transparency have been shaping the next phase of business sustainability (Horan, 2018), However, _greenwasing, «deceptive corporate strategy, often exerts profounely ‘etrimental consequences on consumer and Investor confidence while threatening business sustainability (Newell etal, 2015; De Jong et al., 2017) ‘Thus, industrial system transition involves dematerialization and md HNLalma change 7 (2021) 102948 PX Sagh eH, Chame aoa yeas ss poo aaPX Sgh et H.C el mnt change 70 (2021) 102949 depleting the strength of the relationships berween different concepts resmi and Onesni, 2004; Singh and Nai, 2014; Singh and Chua ‘sma, 2017, 2020, 20214; Zi etl, 2018). The valves ranging within 1-2 signified very ow, 3-4 low, 5-6 moderate, 7-8 high, and 3-10 very hhgh stengihs. We also requested the respondents to incorporate ad ‘ional relationship’ in the instrament onthe basis oftheir experience, ‘knowledge, and perceptions. No addition of say ness tolationship was suggested by the respondents. We requested the participants ro assign a zero value where they did not agree with a relationship. However, no respondent came up with «zero value ‘We sen the instruments 10 1360 respondent, including global for: ‘une 1000 companies excluding the financial sector, along with non fortune 1000 companies representing nerospace and defense, automo. bile, aviation, cement, chemicals, electrical equipment, energy, engi neering, construction, heavy equipment, mining, and steel sectors. In ‘order to obtain the responses, mid-level, senior, and top-level func ‘onaries of mainly large firms were targeted While small and median enterprises, t00, are involved in technological advancements, it was challenging. to Tormulate good sampling criteria to Include them considering their large number. That Is why’ they were excluded from this study. We also requested 44 authors to respond to the survey in struments who have published in relevant fields since 2014. We asked ‘56 policymaking community members (government, regulatory bodies and transnational network representatives) to respond to the survey instruments on the basis of suggestions made by one ofthe reviewers. Despite intense persion, we were only able to gather 119 responses, ‘of which 87,19, and 13 belonged to business practitioners, authors, and representatives ofthe policymaking community, in that order. The final data canie frm representatives of 17 countries six percent of whom comprised female respondents. i : sett say Pha i i i 2.2. Exploring the data esos Iased on the strengths of the causal relationships (1-2: very Tow, ‘9-4: low, 9-6: moderate, 7-6: high, and 9-10; very high) the response Frequencies were generated, Having received Iimited responses fom authors and policymakers, we merged them, We ended up comparing the frequencies of relationships berwen the respondents of eompanies and those of “authors and policymakers’. However, forthe network ‘analysis and FCM based simulations, we evaluated all the 119 samples colletvely, labeling them ‘overall’, apart from 87 samples from ‘con panies’, and 32 from ‘authors and policymakers’ combined, mnt 2.3. Consruting ajacency weight matrix ‘The concepts from individual cognitive maps were listed on the vertical and Horizontal axes on separate excel sheets forming square adjacency weight matrices, with weights coded into the adjaceney m ‘tix for each relationship between the concepts, The weights were divided by 10 to normalize between =1 and +1 before coding into an adjacency matrix. A similar approach has been adopted by many re searchers (Gzesmi and Ozesmi, 2004; Singh and Chudasama, 2017, 2020, 20212,b; Ziv etal, 2018; Pereira otal, 2020) loving 2.4, Quanteaive agregtion of Individual cogntive maps Individual square adjacency weight matrices were quantitatively aggregated to construct x collective cognitive map by normalizing exch adjacency matrix element according to its decisional weight w; and the ‘number of participants k who supported it. The quantitative aggregation ‘was implemented by computing three arithmetic means ofthe weights, ‘which shows the collective perception/ view of ll the study participants labeled as ‘overall’ plus ‘companies, and “authors and polieymakers. ‘Thus, we achieved three collective weight matrices ‘overall’, ‘com panies’, and ‘authors and policymakers.” Equation (1) illustrates the ‘quantitative aggregation of individual adjacency matrices: i i i ‘altrave ad wnsarecive ie