Business for Sustainable Development (BSD) sparked a discussion on regenerative business in the country immediately following the membership screening event of the documentary “Beyond Zero”, which was held recently at De La Salle University.
What is Regenerative Business?
A regenerative business is a company that goes beyond traditional sustainability and actively works to create a positive, “net-positive” impact on the environment, society, and economy. Instead of simply aiming to “do less harm,” a regenerative business strives to “do more good” by restoring, renewing, and revitalizing the systems it operates within.
This concept is a significant shift from the conventional business model and even from the idea of “sustainability,” which often focuses on minimizing a negative footprint. Regenerative businesses see themselves as part of a larger, interconnected system and aim to enhance the overall well-being of that system.
Key characteristics of a regenerative business include:
- Net-Positive Impact: The business aims to give back more to the world than it takes. This means improving the health of ecosystems, communities, and people.
- Systems Thinking: It operates with an understanding of the complex relationships between social, environmental, and economic factors. Decisions are made with a holistic view of the entire value chain and its impact.
- Restoration and Renewal: Instead of just reducing waste or emissions, the company actively engages in practices that restore natural resources and social systems. This can include regenerating soil health, revitalizing local communities, or creating circular material flows.
- Circular Economy Principles: Regenerative businesses often adopt circular models, where products are designed for durability, repair, reuse, and recycling, minimizing the need for new resource extraction and eliminating waste.
- Stakeholder Engagement: They involve all stakeholders—employees, customers, suppliers, and local communities—in their decision-making processes to create shared value and foster collaboration.
- Long-Term Value Creation: The focus is on long-term value creation across all areas of impact, rather than just short-term profit maximization.
Examples of Regenerative Business in Action:
- Regenerative Agriculture: Food and apparel companies are adopting farming practices that improve soil health, increase biodiversity, and sequester carbon.
- Circular Business Models: Companies like Fairphone design their products for longevity and repairability, and have take-back programs to recycle and reuse materials, reducing electronic waste.
- Community-Focused Initiatives: Businesses may invest profits into community-led projects, offer fair wages, and provide employment opportunities to marginalized groups, actively regenerating the social fabric of the areas they operate in.
The documentary “Beyond Zero” is about how the founder and chairman of a global manufacturing company made bold changes to address the environmental impact of his organization. His decisions not only sought to reduce environmental harm but regenerate his business model to restore natural resources and social systems, proving that sustainability and profitability can work together.
“Sustainability is not an option; it’s essential. We hope that through this film, we can get valuable insights and spark ideas that go beyond sustainability efforts. We can learn from each other here and together build a strong regenerative business community,” said Abraham Perez, Executive Director of BSD.
Dubbed “The Journey to Regenerative Business”, the event included a video message by the documentary’s director and producer Nathan Havey. The ensuing panel discussion included Ma. Victoria Tan, Executive Director, Group Sustainability and Risk Management Unit, Ayala Corporation; Rafael A.S.G. Ongpin, Executive Director, Makati Business Club; Joseph R. Rosal, Director of Sustainability, De La Salle University; Neil Ian Lumanlan, Consultant-Circular Economy and Carbon Removal, SUSTAINOVA Representative.
The event was co-presented by BSD, Sustainable Development Solutions Network Philippines, and SUSTAINOVA.
During the discussion, the panel touched on two of the most common sustainability efforts that businesses need to improve: reforestation and economic sustainability through agriculture.
Ongpin emphasized that while Philippine companies are required by the SEC to plant a certain number of trees, the initiative should not stop at planting but rather continue with a tree-growing program.
Tan added that there is a science behind a successful reforestation program.
“Planting trees sounds sexy, but there should be a science to that. There’s an opportunity because if you can grow something from a denuded forest, then there is a chance of getting carbon credits, which is very important in net zero greenhouse gas ambition.”
Tan also said that companies can learn from nature in developing products.
The Makati Business Club, according to Ongpin, has been focusing on making agriculture in the country more sustainable. He emphasized that this initiative would help around 50 million agricultural workers grow economically.
“Let’s focus on the economic sustainability of that sector and we believe that environmental sustainability can progress alongside that,” Ongpin said.
Formerly known as Philippine Business for the Environment, BSD has been at the forefront in advocating for the integration of sustainability in the country’s private sector since 1992. The organization has helped its member companies with their sustainability reporting and the accomplishment of their Sustainable Development Goals.
BSD is a pioneer global network partner of the World Business Council for Sustainable Development as well as a global partner of Business for Nature, a global coalition calling for nature-based solutions to sustainability issues. It is also a Certified Training Partner of the Global Reporting Initiative (GRI), which is the world’s most widely used sustainability reporting framework.
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