Inputs Needed for a Regenerative Future
Regenerative approaches aim for complete systems changes that address the root causes of our climate crisis and other global crises (they are all connected). The goal is to create the conditions for all life to thrive, generating self-sustaining positive outcomes for nature, people and the economy. Regeneration offers a bold vision of the future we need to achieve, instead of the climate catastrophe we need to avoid.
Why haven’t the circular economy and the UN’s Sustainable Business Goals been adopted globally? They should be our business as usual by now, but circular remains at 8% of total economic output, and SDGs are being adopted, but in small initiatives here and there… nothing systemic. #systemschange
If we are to design and deliver a regenerative future, we must make some drastic changes in how we live on the planet, how we feed and shelter ourselves, how we transition from an extractive economy to one that delivers abundance without waste or toxicity (like Nature does).
Sharing Platforms
Sharing platforms are applications that facilitate shared access to products. More and more people are pursuing a resource-efficient lifestyle that minimizes waste. What we choose to wear, where we travel and even what we eat are closely related with the greenhouse gas emissions that cause global warming.
Sharing is one way to reduce some of those emissions. As the sharing economy grows in popularity, it could be an explicit way to tackle the problem. There are peer-to-peer platforms for just about every service you can imagine. If we can make these platforms appealing to use (whether because they save people money or because they are more convenient), they could also help reduce greenhouse gas emissions per capita.
Sharing is more than just bikes and house rentals. By encouraging people to think in new ways, like sharing rather than owning, and reusing and recycling rather than single-use consumption, we can further reduce emissions. It can be as basic as buying a second-hand book, returning old clothes to retailers with recycling programs (they are out there… look for them locally), and carrying a cloth bag to shop instead of a single use plastic bag.
Product as a Service
By retaining ownership of products and offering them as a service, companies can ensure longer product lifetimes and efficient recycling. This model is particularly effective in electronics and appliance industries, where products can be refurbished and reused, reducing electronic waste.
Product-as-a-service (PaaS) is a concept associated with the use of products: consumers purchase the desired result instead of the equipment or product itself. The system itself is supported via the subscription-based business model.
Here’s an example: ENSO is a UK tire (tyre) manufacturer that has established a circular economy business model that rents out tires that it takes back to recycle when the treads are worn. ENSO does not sell through wholesalers or retailers. They don’t sell at all. They charge for their tires by the mile, and then reclaim the tires when it’s time. (Each tire is equipped with a sensor that decides when new treads are needed).
ENSO takes its name from this Zen symbol for renewal.
ENSO swaps out the old tires and replaces them with new tires, then recycles the old tires to make even newer ones. That’s important because it’s a new business model that rewards ENSO for making tires that last far longer. The dominant business model in the tire industry today incents manufacturers to produce tires that wear out quickly (so people have to buy new ones).
Product Use Extension
Extending the life of products through maintenance, repair and upgrades prevents premature disposal. This business model is crucial in sectors like automotive, fashion and technology where extending product life can significantly reduce environmental impact (and save money).
Resource Recovery
Efficiently recovering and reusing materials from spent products closes the loop in product life cycles. Businesses can implement by developing systems to collect and recycle materials, such as metals and plastics, from end-of-life products.
Unlocking Economic and Environmental Value
Adopting regenerative business models unlocks significant economic value. Companies report reduced operational costs, increased customer loyalty, and new revenue streams. Moreover, these models align with growing consumer and regulatory demands for regenerative practices, offering a competitive advantage in the market.
The transition to a regenerative economy is and will continue to be challenging. It requires a fundamental shift in business models, supply chains and consumer behavior. However, the benefits far outweigh the costs, offering a regenerative and profitable pathway for businesses in the face of climate change.
The Path Forward
A regenerative future demands a new breed of leadership consciousness. Take a peek at the headlines… Boeing, Kroger, Norfolk Southern. The list goes on and on of blue chip corporations being run by MBAs whose North Star is profit at all costs.
We need to establish new systems that create more value than they take. Rather than merely reducing our negative impact (doing less bad), we must seize the opportunity to do more (much more) good. Yet it’s difficult operating within the confines of our current cultural, economic and societal systems. #systemschange
“True wisdom consists of not departing from Nature, but on molding our conduct according to her laws.” – Seneca
We need to allow the breakdown of old systems in order to enable the breakthrough of the new. When Darwin used the label “fittest species”, he didn’t mean the physically strongest, or most aggressive. He meant the ones best able to adapt to changes in the environment. The same concept applies to our organizations. Systems change is required to develop climate resilience. Climate resilience can be conjured with crew consciousness.
The regenerative economy is not just a trend; it’s an imperative for modern business strategies. By adopting circular business models, sharing platforms, products as services, resource recovery and other regenerative practices, companies can not only mitigate the risks associated with extreme weather events, but also contribute to a more regenerative and resilient future.
Regenerative leaders catalyze exploration, stakeholder dialogues and creative employees by establishing and growing crew consciousness. Crew consciousness provides clear values, a resonant corporate purpose and a company culture that is climate resilient.
Much more on crew consciousness in future Crew Commentaries.
