Seven steps to build a regenerative business

How can businesses transition from sustainable practices to fully regenerative models that actively restore and enrich the environment?

Faith Sayo

Faith Sayo

18 Nov, 2024

Seven steps to build a regenerative business

Sustainability has reached a critical turning point. The need to move beyond sustainability toward true regeneration has never been more pressing. 

Regenerative businesses focus not just on doing less harm, but on actively improving the environment, communities and economies they touch. They offer a reliable solution to combating the impacts of climate change by actively restoring ecosystems and sequestering carbon. 

For example, a recent

white paper from the Rodale Institute

revealed that widespread adoption of regenerative agriculture could potentially sequester over 100% of human-caused carbon emissions. This remarkable potential shows regenerative businesses models have a big role to play in mitigating climate change and creating a sustainable future.

Steps to creating a regenerative business model

Highland restoration - Tigray, Ethiopia

Highland restoration - Tigray, Ethiopia. The project invests 60% of carbon credit revenue in local communities, funding percolation ponds for water access and providing essential food assistance.

Step 1: Start with a systems approach

Taking a systems approach means understanding the interconnectedness of your business with both natural and social systems. It involves recognising how your company’s operations - from sourcing materials to delivering products - affect ecosystems and communities. 

By understanding this interdependence, you can identify where your business either depletes resources or has the potential to contribute positively to environmental and social well-being. 

By analysing these dependencies, companies can develop strategies that support the replenishment of natural resources, improve community well-being, and create long-term value for all stakeholders. For example, if your supply chain relies on agricultural inputs, a systems approach could lead you to partner with regenerative agriculture initiatives that restore soil health and enhance biodiversity.

Step 2: Engage stakeholders

Engaging stakeholders means collaborating with all groups that interact with or are affected by your business, including local communities, employees, suppliers and customers. These stakeholders often have valuable insights into the challenges and opportunities related to regeneration, because they are directly impacted by your operations. 

Transparency and collaboration are key to fostering trust among stakeholders. By clearly communicating your regenerative goals and progress, you ensure that stakeholders understand and support your efforts.

When stakeholders feel invested in your regenerative goals, they are more likely to actively participate in and champion these efforts.

Step 3: Adopt circular design thinking

Circular design thinking

involves reimagining products and services with their entire lifecycle in mind. Instead of designing for obsolescence, businesses can focus on creating products that are durable, easy to repair, and can be disassembled for recycling or reuse. 

This approach reduces waste and minimises the extraction of new raw materials. For example, designing a product with modular components that can be easily replaced extends its life and reduces the need for disposal. This mindset not only minimises waste but also creates opportunities for businesses to capture value from materials that would otherwise be discarded.

Shifting to non-toxic and biodegradable materials is another aspect of circular design. Many products today are made from synthetic, non-renewable materials that harm ecosystems when discarded. By transitioning to biodegradable or renewable resources, businesses can ensure that their products can safely re-enter the environment after use. For example, replacing plastic packaging with compostable alternatives reduces pollution and aligns with regenerative principles. This shift not only benefits the environment but also resonates with consumers who are increasingly

prioritising sustainability in their purchasing decisions

.

Closing the loop requires companies to develop systems for taking back products at the end of their life cycle for refurbishment, remanufacturing, or recycling. By doing so, businesses can reclaim valuable materials and reduce the need for virgin resources. Take-back programs can also provide customers with an incentive to return used products, creating a continuous loop of material reuse.

Step 4: Partner with regenerative projects and nature-based solutions

Partnering with regenerative projects enables businesses to integrate regenerative practices into their supply chains and operations. Collaborating with organisations that focus on sustainable agriculture, ecosystem restoration, or renewable energy can help businesses positively impact the environment while meeting their operational needs.

Adopting nature-based solutions allows businesses to work in harmony with natural processes rather than against them. Nature-based solutions leverage the power of ecosystems to address environmental challenges such as climate change, biodiversity loss, and water scarcity. For instance, using natural materials and renewable energy systems reduces your business’s ecological footprint and enhances resilience. These solutions not only reduce harm but also actively restore and regenerate ecosystems, making them a key element in regenerative business models.

Contributing to local ecosystems through investments in nature-based regeneration projects also strengthens your business’s connection to the communities and environments most affected by climate change and biodiversity loss. Supporting initiatives such as reforestation, wetland restoration, or sustainable agriculture benefits both the local ecosystem and the people who depend on it.

Step 5: Invest in regenerative innovation

Investing in regenerative innovation is essential for developing new solutions that advance both business and environmental objectives. Allocating resources to research and development in regenerative technologies, materials and practices can lead to breakthroughs that enhance your business model while promoting sustainability. Companies that prioritise innovation often find new ways to differentiate themselves in the market while contributing to the restoration of natural ecosystems.

Step 6: Measure and monitor

Measuring and monitoring your business’s regenerative efforts ensures accountability and helps track progress toward your goals. It’s essential to establish clear metrics related to your regenerative initiatives, such as carbon reductions, improvements in biodiversity, or positive social impacts.

Regular impact assessments provide valuable insights into the effectiveness of your regenerative efforts. By using frameworks like B Corp Certification, the Sustainable Development Goals (SDGs), or the Global Reporting Initiative (GRI), you can ensure that your regenerative initiatives are delivering measurable benefits. These assessments also help you identify areas for improvement and ensure that your business stays on track to meet its regenerative goals.

Accountability is key to maintaining credibility, and publishing regular sustainability and impact reports without

greenwashing

is one way to ensure transparency. By sharing your successes and areas for improvement with stakeholders, you foster a culture of continuous learning and adaptation. Transparent reporting also enhances customer trust, as consumers increasingly seek out

businesses that are transparent about their environmental and social impacts

.

Step 7: Embrace a long-term mindset

Rather than focusing on short-term benefits, regenerative businesses prioritise long-term sustainability and resilience. This means making decisions that not only benefit your business in the present but also contribute to the health and stability of ecosystems and communities for future generations.

kuamut-13

Rainforest conservation - Sabah, Malaysia. The project is protecting critical habitats for 34 rare, threatened, and endangered tree species, along with several endangered animals, including the Bornean elephant.

Frequently asked questions about how to become a regenerative business:

Why should my business adopt a regenerative model instead of a sustainable one?

While sustainability aims to reduce harm, regenerative models actively improve the environment and communities. This shift can result in better brand loyalty, reduced resource costs, and enhanced employee satisfaction.

Studies show

that 72% of consumers now prefer brands that contribute positively to society.

What are some examples of regenerative practices my business can implement?

Start with small steps like switching to renewable energy, reducing water usage, and adopting circular supply chains. Larger initiatives could include addressing your supply chain, partnering with regenerative farms, investing in carbon offset projects, or launching programs that restore ecosystems.

How do regenerative models impact profitability?

Regenerative models may require upfront investments, but they are often profitable in the long term. The circular economy alone is expected to generate $4.5 trillion in economic benefits by 2030. Companies adopting these practices often report higher employee retention, reduced resource costs, and stronger customer loyalty.

What are the biggest challenges in transitioning to a regenerative model?

Some of the primary challenges include the initial cost of implementing new systems, the need for stakeholder buy-in, and adapting current supply chains. However, the benefits - such as resource security, brand resilience and risk mitigation - often outweigh these obstacles.

Make nature-based solutions part of your regenerative business journey 

Nature-based solutions go beyond climate ‘neutrality’; they actively improve biodiversity, combat build resilience against climate impacts, and uplift communities. 

At Earthly we're incredibly excited to be helping these regenerative business leaders of tomorrow embed nature protection and regeneration into their businesses through our world-leading project partners.

Oliver Bolton, Earthly CEO

Earthly helps businesses

take this leap by connecting them to impactful nature-based projects worldwide.

Our projects

allow you to offset emissions naturally, strengthen ecosystems, and enhance your company’s sustainability credentials, all backed by transparent impact metrics.