Regenerative Business: The Next Level of Green Business

Regenerative Business: Beyond Sustainability to Restoration

As the world faces a crisis within a crisis, whether it’s the increasingly severe climate change, social inequality, or the loss of biodiversity, the term “sustainability,” which once served as the ultimate goal for environmentally-conscious businesses, is now being questioned for its adequacy. The concept of regenerative business has emerged amidst a new awakening in the global business community, based on the belief that businesses should not only be "non-harmful" but must step up to become "drivers of positive change" that help restore and heal ecosystems, society, and the economy simultaneously.

What is Regenerative Business? From Sustainability to Industry Revitalization

Moving beyond the traditional focus on merely reducing environmental harm, a new business model called "Regenerative" is gaining more attention. This approach takes sustainability a step further by focusing on the restoration of ecosystems and resources, aiming to bring them back to a state of abundance.

Regenerative business refers to a way of doing business that goes beyond simply reducing, preventing, or mitigating negative impacts. Its goal is to create positive effects by restoring value to the environment and ecosystems, as well as actively contributing to solving social issues. This represents a significant step forward in business practices.

What is the Difference Between Regenerative Business and Sustainable Business?

The key difference between Sustainable and Regenerative Business is that sustainable businesses focus on "avoiding harm" or "reducing negative impacts," while regenerative businesses focus on "creating positive impacts" and "actively restoring systems" in a tangible way.

What are the Key Principles of Regenerative Business?

Holistic System Thinking

This principle involves viewing problems and solutions in a holistic way by considering the interconnectedness of different systems—environmental, economic, and social. It emphasizes understanding and responding to the complexity of these systems, rather than just addressing isolated issues.

Co-evolution

Business is seen as a way to create shared value between organizations, society, and the environment. Organizations and systems develop together in harmony, rather than in isolation or competition.

Living Innovation

The focus is on creating innovations that are flexible, adaptable, and continuously evolving. These innovations should align with and reinforce the living systems around them, rather than being disconnected from their environment.

Regenerative Cycles

The core of regenerative business is designing processes that circulate continuously. For example, reusing waste or by-products to create a complete natural cycle, without causing long-term loss or negative impacts.

Long-term Resilience

The focus is on continuous development to ensure long-term sustainability, including the ability to adapt to and manage future changes.

Advantages of Regenerative Business

Creating Sustainable Positive Value

Not only does it reduce negative impacts, but it also creates positive effects and restores ecosystems to a better state. Additionally, it fosters development that sustains natural systems and society in the long run.

Competitive Advantage

It helps build a strong brand image and trust with consumers, organizations, and investors, while also enabling the creation of new innovations and added value for products and services.

Adaptability to Change

Regenerative businesses are highly flexible and capable of adapting to challenges and changes in the future.

Fostering Long-term Collaboration and Development

It promotes sustainable development that aligns and supports the business, society, and environment, encouraging long-term cooperation and interdependence.

Disadvantages of Regenerative Business

Investment Challenges

Transitioning to a regenerative business model requires significant resources and investment, along with time to adjust and develop processes.

Difficulty in Measuring Outcomes

Performance metrics are often unclear and challenging to assess, and success tends to manifest over the long term, not immediately.

Resistance from Traditional Organizations and Systems

There may be misunderstandings and resistance from some stakeholders, and the business may need to change its organizational mindset and culture.

Regenerative Business and Real-World Examples of Application

• Patagonia, a manufacturer of outdoor gear and clothing, designs its products to be reusable by using recycled materials and eco-friendly resources. The company also supports movements to protect the environment and nature.
• IKEA, a producer and retailer of furniture and home goods, aims to use 100% renewable or recycled materials by 2030. Additionally, it designs products that can be disassembled and reused, offering repair services and promoting the reuse of old furniture.
• Interface, a manufacturer of carpets and flooring materials, aims to become "Carbon negative" by 2040. Currently, the company incorporates waste materials and recycled resources in its production, and designs its products to be reusable.

In summary, regenerative business is a revolutionary approach to business that is essential for survival in the 21st century. Organizations that understand and adapt quickly will lead in the newmarket era, where consumers are increasingly focused on the positive impact on society and the environment. Transitioning to a regenerative business model may seem challenging, but it presents a great opportunity to gain a competitive advantage while contributing to building a better future for everyone.