Corporate sustainability often requires governments to navigate a complex balance between economic progress and environmental responsibility. The ILVA steel plant in Taranto, Italy, serves as a compelling example of this dilemma, where the plant's significant economic contributions stand in stark contrast to its severe environmental impact. As one of Europe's largest steel producers, ILVA plays a pivotal role in Italy's industrial output, yet its operations have raised concerns over the pollution affecting the surrounding region. This study explores the role of the Italian state in managing the sustainability risks associated with ILVA, examining the tensions between economic necessity and environmental protection. Using Mitchell Dean’s "analytics of government" framework, the research analyzes official documents from the key actors involved in governing these risks. It highlights the conflict between social risks—such as unemployment and economic instability—and societal risks, including environmental degradation. This tension created a paradox in governance, with the state having to balance the continuation of business operations with the urgent need to address environmental damage. The Italian government's decision to designate ILVA as a Strategic National Interest Site in 2012 is analyzed as a strategic move to ensure both economic stability and environmental accountability. By allowing the plant to continue operations while imposing stringent environmental controls, the government sought to mitigate risks and promote long-term sustainability. This case study offers valuable insights into the complexities of governing corporate sustainability in the face of competing interests, providing lessons that resonate beyond Italy, particularly for other countries grappling with similar challenges of industrial pollution and economic dependence.
