There's no avoiding sustainability initiatives for businesses since CSRD (Corporate Sustainability Reporting Directive) has become a reality while net zero emissions pledges are skyrocketing, with half the world's largest 2,000 publicly listed companies having a net zero target.
It is becoming evident that traditional sustainability strategies focusing on minimising environmental impacts will not be enough to achieve net zero goals and reverse the damage already done to ecosystems that enable economic growth besides supporting communities.
A new frontier for companies to improve their bottom line and build a low-carbon economy is embracing regenerative business models that “aim to improve ecosystems and communities, rather than simply minimise harm to them”, as described by Harvard Business Review.
Definitions vary in detail, but the general view of regeneration is that a business should restore and regenerate the natural and social systems in which it operates.
Translating theory into practice means that while reducing waste or introducing recycling initiatives are great steps, strategies should actively explore opportunities to create value for nature and society through restoration and enhancement of ecosystems.
These activities include conserving natural resources, reducing carbon footprints, and positively contributing to communities.
The World Economic Forum defines a regenerative firm as one that “seeks to boost the health and vitality of people, places, and the planet simultaneously in a synergistic manner”.
Consumers are also developing a preference for choosing regenerative brands. A recent study by ReGenFriends found that nearly 80 per cent of US consumers prefer “regenerative” brands to “sustainable” brands because they find the term “sustainable” too passive.
Forward-thinking companies already embrace this approach as they realise that adopting regenerative practices can yield multiple business advantages.
One of the global leaders in this field is Unilever, which introduced its Climate & Nature Fund in 2020 to accelerate and scale regenerative agriculture across its operations and supply chain. They committed to invest €1 billion by 2030 in meaningful climate, nature, and resource efficiency projects to transform how their products are made and reach the end of life.
As part of their strategy, they developed the Regenerative Agriculture Principles to help guide their actions and introduce new practices.
One of their actions is collaborating with Colman on their first regenerative agriculture project in the UK in 2024 to ensure food security and supply chain resilience for the business’s raw materials.
This project is part of a broader global roadmap that looks to see Unilever protect and regenerate 1.5 million hectares of land, forests and oceans by 2030.
Regenerative farming practices like keeping living roots in the soil, integrating animals and trees or growing a diverse range of crops can also be up to 60% more profitable after six years, according to Climate Farmers’ statistics.
Global sports retailer Decathlon is also piloting regenerative projects. They introduced a “Store as Nature” initiative in France in 2022 to revitalise biodiversity around its buildings by enhancing natural environments considering the typical local flora and fauna.
Before concluding that regeneration is only an option for bigger companies, small businesses are also paving the way.
Irish trailblazer entrepreneur Nicola Connolly is building her award-winning natural skincare brand Nunaïa on regenerative principles.
Since the beauty industry is famous for exploiting resources and greenwashing, she wanted to lead by example and show that adopting a regenerative business model allows for innovative new solutions while supporting communities and ecosystems to thrive across the supply chain.
She explains why she is focusing on creating a “soil-skin-soul” ethos with her small business:
“Nunaïa combines my passion for sustainable development and belief in purpose-driven, regenerative business models to solve many of our current climate and societal challenges while leaving places and communities thriving and more resilient.”
The road to regeneration might be less travelled, but it holds the promise of ensuring that businesses, communities, and natural ecosystems have a better future together.
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Written by Szilvia Szabo, climate journalist
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