The concept of regenerative business is pushing the sustainability movement toward courageous action in response to the worsening environmental crises of our time. To reverse the trajectory of accelerating climate change, pollution, resource depletion, and associated human suffering, it is not enough to sustain neutral impacts. What is truly required is a commitment to repair and restore the damage done and shift the extractive relationship between people and planet to a nourishing relationship that ensures a better future.
A term borrowed from ecosystem science, regenerative, in the business context, refers to the continual building and replenishing of natural capital, resources, materials, and people. The result is a healthier business ecosystem from which a business can thrive, with a positive long-term outlook.
The Benefits of Regenerative Practices
Influenced by the concepts of circular economy and other systems thinking frameworks, the regenerative approach adopts aspirational goals of net-positive impact. In simplest terms, leaving the world a better place as a result of business practices, decisions, and relationships. Whether it’s a corner store or a Fortune 500, the call to innovate and collaborate toward net-positive impacts drives opportunities for leadership, branding, profits, and longevity. Regenerative practices also create new markets, cut costs, secure supply relationships, and build customer loyalty.
Patagonia: A Pioneer of Regenerative Business
One the most well-known proponents of this business philosophy, the iconic apparel brand Patagonia, was a pioneer of organic cotton. Years ago, they advanced to “beyond organic,” supporting practices that build soil, sequester carbon, and enhance livelihoods. As Patagonia CEO Rose Marcario explains, “If we don’t act now, and act boldly, we give up the planet”. Accordingly, the company invests a significant portion of profits back into the supply chain, communities, and innovations. It is also helping to launch the Regenerative Organic Agriculture standard for carbon-friendly farming and remains one of the most forward-thinking brands. [1]
Investing in regenerative practices, especially during Covid-19 times, assures a certain level of business resiliency. In fact, as Carol Sanford, author of ‘The Regenerative Business’, explains, “Regeneration goes beyond resilience or sustainability. Whatever is resilient, restored, robust, or sustainable resists or recovers from shocks and stays the same. Shocks make a regenerative business better. It rebounds and has the capacity to do more and be more”. [2]
Regenerative Practices in Action
The practical applications and opportunities of this approach could be applied to energy, waste management, agriculture, transportation, community engagement and other key business functions and impact areas.
Advances in renewable energy make Net Zero or Net Positive Energy buildings achievable under the right conditions That is, on an annual basis, the building footprint (or nearby site) could produce as much as or more energy than it actually uses. So, why buy energy from the utility when you can produce your own energy on site, sell it back, and remain resilient to fluctuating energy costs? With low photovoltaic installation costs, energy efficiency technologies, and incentives, these types of buildings are becoming more feasible. [3].
In another example, Regenerative Agriculture is a growing food trend that focuses on farming practices restoring ecosystem services. It emphasizes building soil health to sequester carbon, an essential solution for addressing climate change.[5] Carbon farming practices include not tilling the soil, planting carbon absorbing crops, building organic soil fertility, and preventing soil loss and erosion. In fact, we recently helped incorporate these practices into the fabric of the California Green Business Network.
Food and fiber purchasers, manufacturers and restaurants, have opportunities to invest in these practices at the source of the supply chain. One EI project is a collaboration with Bay Area incubator KitchenTown to launch the Zero Foodprint Initiative. This program allows consumers to contribute 1% of their food bill to verified, quantifiable carbon farming projects. “It’s like improving the grid – for food,” according to the non-profit Zero Foodprint’s website. Businesses could also make these type of carbon investments through organizations such the Carbonfund and terrapass.
To promote transportation alternatives, a business can choose to invest in infrastructure that not only benefits their own employees, but also contributes to improvement of the overall transportation landscape. For example, installing EV charging stations that are available to the public or extending company vanpools to nearby businesses. Additionally, creating a functional telecommuting plan reduces transportation impacts. It also builds long-term resiliency for teams, customers, and collaborators to operate virtually, even when the physical office is closed. [6]
Many major corporations have committed to Zero Waste goals by recycling, reusing, and eliminating waste at the source. [7] Waste can also be used as fuel for regeneration. Examples include composting food waste into soil amendments, upcycling scraps, and converting waste into energy through biodigestion. Smaller-scale efforts like donating used equipment, furniture, or materials can also support small businesses.
For an example related to water conservation, Low Impact Development (LID) techniques—such as pervious pavement, bioswales, and rain gardens—capture and cleanse polluted runoff. These methods protect waterways and recharge groundwater. [8] EI implements these techniques for both municipal and business clients.
Leading the Way Toward a Regenerative Future
Finally, regenerative business translates into community leadership by asking the question of how to use a business’s platform to positively influence partners, customers, and communities. How can a company, institution, or agency inspire adoption of a net positive mindset throughout its sector? Which relationships and collaborations will allow the type of investments to take place for long term, measurable, and regenerative impacts?
Environmental Innovations can help identify opportunities for these types of innovations. We build the partnerships, technical expertise, and execution strategy to make lasting impact, build enduring businesses, and create a hopeful future.
Contact us for a free consultation.
[1] https://attheepicenter.com/podcast-archive/ep-1-rose-marcario/
[2] https://carolsanford.com/the-regenerative-business/
[3] https://sftool.gov/learn/about/422/net-examples#:~:text=Net%20Zero%20Energy%20buildings%20are,design%20with%20renewable%20energy%20generation.
[4] https://www.cnbc.com/2019/10/23/top-food-trends-for-2020-according-to-whole-foods.html#:~:text=Whole%20Foods%20defines%20regenerative%20agriculture,according%20to%20organic%20farming%20non%2D
[5] https://www.forbes.com/sites/lorinfries/2018/10/21/how-a-regenerative-revolution-could-reverse-climate-change/#45471c5210f2
[7] https://www.rubicon.com/blog/companies-zero-waste/
[8] https://www.epa.gov/soakuptherain/soak-rain-rain-gardens