Mediation is characterised as a voluntary, consensual process, with self-determination a core value. The literature does, however, indicate a significant evolution in its role within society. Scholars contend that government-backed mediation exhibits capacity to ‘govern’ where the process has disputants reconfigure their selves and orientation to the conflict and align their behaviour with a guiding norm (or ideal). In this way, ‘mentalities’ can be moulded by the state to secure wider political aims. This paper provides empirically grounded insights into the efficacy of mediation-based governance in the context of environmental disputes. It analyses complaints submitted to National Contact Points (NCPs) by interested parties (eg individuals and non-governmental organisations (NGOs)) against multinational enterprises. NCPs are state-based non-judicial grievance mechanisms which seek to assist the resolution of alleged breaches of the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct. I argue that the empirical reality exposes tensions within mediation-based governance which present challenges and opportunities for it: (in)consistency in the state’s influence over negotiations, background levels of (dis)trust between disputants and (future-orientated) temporal focus. Until these are remedied, it will remain incapable of realising wider political aims, such as sustainable development. Private interests are too deeply ingrained and prevailing power structures too dominant.