What is Regenerative Business?

A new management model that addresses the root causes of problems and gives back to the planet more than it takes.

The European Union is guiding companies towards a regenerative growth model that gives back to the planet more than it takes. The market environment is rapidly changing to align with this target, and every company should set a regenerative growth objective.

Regenerative business takes sustainability to the next level. Where traditional sustainability work and ESG reporting focus on minimising harm, the regenerative approach strives for net-positive impact – the company gives more back to the environment and society than it takes.

Instead of trying to solve various complex problems separately with limited specialist resources – such as climate emissions, waste, resource scarcity, biodiversity loss and social inequality – we learn a new management model that addresses the root causes of problems.

As circular economy pioneers have stated: we don't have a waste problem, we have a design problem. The goal is for a company's strategy, business development and R&D to shift towards a preventive operating model – where business is designed and executed so that these problems don't arise in the future.

The green transition and tightening regulation – such as the EU's CSRD directive – make regenerative business economically sensible as well. Companies that anticipate the change build lasting competitive advantage.

Themes of regenerative business

What does regenerative business consist of?

Regenerative business covers the entire organisation – from leadership to product development and from value networks to corporate culture.

01

Regenerative leadership

It all starts with a mindset shift

Is the world a better place because your company exists? Before we can talk about a company's operating model, a mindset shift is needed. Regenerative leadership starts with the courage to challenge prevailing assumptions and the desire to build business that creates value for all stakeholders.

Example: Soilfood

A Finnish company producing recycled fertilisers, born from the desire to create solutions that improve the state of the world. Soilfood is a prime example of a growing and profitable company whose business is built on a regenerative mindset.

02

Sustainable business strategy

The path of regenerative circular economy

When it comes to strategy in a regenerative context, a clear direction is needed. A company must define its own path towards a regenerative business model – step by step, but ambitiously. Strategy guides resources and decision-making towards a net-positive future.

Example: Interface

A US flooring manufacturer that published its "Mission Zero" mission back in 1994 and later its "Climate Take Back" strategy to reverse climate change. The four-part strategy covers zero harm, carbon as a resource, industry as a force for the future, and supporting the biosphere's capacity.

03

Net-positive business model

Net-positive business models

Companies either strive to create solutions that improve the state of the environment and society, or use solutions that deplete the planet's resources. Net-positive business models demonstrate how everyone can win – the environment, society and business.

Example: Houdini Sportswear

A Swedish sportswear brand whose entire product range is designed according to circular economy principles. Houdini has launched a resale platform for used products and is on a determined transformation journey towards regenerative business.

04

Circular economy value network

From a one-way street to an ecosystem

Regenerative circular economy business ecosystems are complete value networks that jointly develop products, services and solutions by utilising circular economy principles and business models. The linear value chain transforms into a living network.

Example: Infinited Fiber Company

A VTT spin-off commercialising chemical textile recycling technology. The technology turns used textiles into as-new fibre. The company was born within a broad value network and its customers include Inditex and PVH Group.

05

Sustainable product and service development

Design that supports circular flows

Nature has been doing product development for 3.8 billion years. In product development, we should look to biology – nature's models, materials and processes. Design that supports circular flows ensures that products and services support a regenerative business model.

Examples: Fluffstuff & Blueview

Fluffstuff produces climate-positive textile fillings from cattail fibre – restoring peatland back to wetland while reducing emissions. Blueview manufactures footwear from fully bio-based materials that safely biodegrade in nature.

06

Regenerative production and real estate

Facilities and properties as part of nature

Nature continuously produces an increasingly diverse range of materials, differentiated organisms and varied habitats. In the same way, human production facilities and properties could function more closely as part of ecosystems and also generate benefits for the environment.

Example: Interface

With its "Factory as a Forest" concept, Interface aims to transform industrial facilities into ecosystems. Through biomimicry, production facilities support biodiversity instead of diminishing it.

07

Responsible sales and marketing

Products and services that deepen customer relationships

A regenerative sales and marketing strategy aims to foster and deepen long-term customer relationships and offer products and services that address customers' genuine needs. Authentic customer understanding is key.

Example: Guayaki

An American mate drink company whose entire marketing communication is built on the vision "Inspire us all to come to life". The holistic approach covers the individual, community, environment and culture – a particularly strong model of social regeneration for supporting local communities.

08

Regenerative corporate culture

Leading internal change

In a regenerative corporate culture, the most essential element is a mindset shift. Problems related to ecological, social and economic sustainability are often deeply intertwined – solving one may create problems elsewhere. That is why systems thinking is needed.

Example: Seventh Generation

An American hygiene and cleaning products company whose mission is to transform the entire industry to be healthier and safer for the environment. The company identified and changed old operating models that emphasised competition and conformity.

09

Impact measurement

New ways to measure impact

Regenerative business also requires new forms of measurement alongside traditional business metrics. These may include the company's impact on biodiversity, carbon handprint or the enhancement of community well-being.

Examples: L&T, Metsä Group & S Group

Lassila & Tikanoja is growing its carbon handprint faster than its revenue. Metsä Group has developed metrics for regenerative forestry. S Group was the first retail group in the world to calculate its nature footprint.

Get in touch

We respond to all inquiries by the next business day.

Ville Grönlund

Ville Grönlund

CEO

+358 50 506 2110 ville.gronlund@ethica.fi