September 12, 2024
Beyond sustainability: Getting fit for regeneration
From degenerative to regenerative business: Embracing regenerative practices
‘The boundaries between economic, environmental and social sustainability won’t shift. They will simply disappear.’
Thomas Schmidt Haniel, Franz Haniel & Cie. GmbH Interview Phineo Imagine Good Corporate Citizenship 2025, Impulse paper published 2023
In a world where sustainability, a term already widely used and stretched thin, is often seen as the goal, there's a growing sensing that sustaining, in terms of ‘not causing further harm’ may not be enough. To truly address the intertwined environmental, social, economic and financial challenges that we face globally, we need to think and aim beyond sustainability.
This is where regenerative practices come into play.
Unlike ‘shareholder value oriented business’ where financial return and compliance is all that matters or ‘shared value oriented business’, where business and financial performance still comes first and integration is limited with negative impacts set against ‘doing good’ elsewhere, regenerative practices are based on a paradigm shift: Business isn’t an addition to nature, but an intregal part of it.
BUT
How does a pivotal shift towards embracing regenerative practices for positive impact creation look like?
Why does it matter?
Which hidden barriers and underlying dynamics are impeding regenerative practices?
And
What can we do to overcome them?
For more, read more and listen to interview bites with Anna Yona, Co-founder and CEO of Wildling Shoes
In 2015, Anna Yona co-founded the company Wildling Shoes with her husband Ran Yona, producing handcrafted minimal shoes made from ecological natural materials and in compliance with fair working conditions. The company, based in Bergisches Land, Germany has won various design, start-up, and entrepreneurial awards, including the German Start-up Award in 2021 and the German Sustainability Award in 2023. Anna Yona also initiated the "Unlearn Business Lab" together with Einhorn and Folkdays.
"If a product is not fundamentally meaningful, important, and needed, then it is better not to produce anything at all. Because, no matter how we do it, we are naturally consuming resources and energy in the process. That is the basic prerequisite, the starting point (Note: for regeneration)."
Anna Yona, Wildling Shoes, Interview August 2024 (translated)
What is regeneration?
From degenerative to regenerative business
Regenerative practices are deriving from nature, going beyond sustainablility by not only reducing harm but actively aiming for a whole system approach towards long term positive impact, or system value creation: Restoring, revitalizing, and enhancing ecosystems, communities, and economies.
They are ultimately constributing to create systems that are self-sustaining and resilient, regenerating the resources they use rather than depleting them.
"How can we, as a company, operate in such a way that, hopefully, through the power of our economic activity, we create good outcomes... have a regenerative impact?"
Anna Yona, Wildling Shoes, im Interview August 2024 (translated)
Unlearn business (as-usual)
„It is primarily about a change in attitude or perspective. Truly reflecting on the learned perspective from which we view things... taking a few steps back, unlearning what we already know, and trying to look at things with a fresh perspective, or through the perspectives of others, in order to broaden our own view. ...We operate within a specific economic system, but it is a man-made system. It is not a law of nature. It can and should be adapted.”
Anna Yona, Wildling Shoes, im Interview August 2024 (translated)
Learn to walk the talk: regeneration!
"What does it mean when I consider the economy as an ecosystem?
Decentralized, independent, and diverse would now be the approach to value creation—not value chains, but value cycles. This applies to all areas of work: value creation, culture, finances..."
Anna Yona, Wildling Shoes, Interview August 2024 (translated)
- Circular economies: viewing the economy as an ecosystem’ The ecosystem thrives on diversity, distribution and collaborative approaches. Not (value) chains but cycles are the approach to positive impact creation: decentralized, independent and diverse. E.g. creating systems where waste is minimized, and resources are continually reused.
- Restoration of ecosystems: Repairing damage to natural environments and enhancing biodiversity. E.g. By the end of 2023, Rewilding Europe had 10 rewilding landscapes operational, comprising at least 5.8 million hectares of land and water.
- Economy and Community well-being: Improving social equity, health, and economic opportunities. E.g. In collaboration with Rewilding Europe, Wildling revitalized an ecosystem for wool production in Portugal, from sheep farming to washing and weaving the wool to the final product: the shoe, within a radius of 150 km
- Resilience: Ensuring that natural and human-made systems can withstand and adapt to changes and shocks. E.g. In 2023, Costa Rica was recognized for its efforts in restoring 52% of its degraded land through reforestation and regenerative agriculture, supported by country's policies promoting reforestation, payments for ecosystem services, and sustainable land management practices.
- Integration of human and artificial intelligence to support emerging future scenario planning for positive impact oriented strategies and resulting regenerative business models
Incorporated in a long term, positive impact oriented strategy all objectives are pushing for pivotal shifts in business, finance, environment and societal dynamics to create positive impact
Achievements so far?
"We have explored the most in the area of partnerships along the value chain, because as a manufacturing company, that is naturally where our biggest, and also negative, footprint is."
Anna Yona, Wildling Shoes, Interview August 2024 (translated)
Business adoption
Companies like Patagonia or Wildling have integrated regenerative practices into their operations, focusing on circularity and ecosystem restoration.
E.g.
Patagonia, as a leader in regenerative organic certification, announced in 2022 a transition to earth ownership, a trust and non-profit organisation that invests profits into initiatives against climate change and to protect undeveloped land - globally.
Policy initiatives
Some regions have started adopting policies that encourage regenerative practices, such as subsidies for sustainable agriculture and renewable energy projects.
E.g.
The European Green Deal, approved in 2020, is a set of policy initiatives by the European Commission with the overarching aim of making the European Union climate neutral in 2050.
Why does it matter?
Current status reports on UN sustainable goals for 2030, which were agreed in 2015, groundbreaking AI development and crucial elections in major economies in 2024 reinforce the urgency for action. Achieving, respectively going beyond these goals requires more than incremental improvements—it needs systemic, regenerative changes!
There is willingness to implement them by 2030 but often their nature and interconnnectedness is not understood. The point of no-return is likely no later than 2030.
A paradigm shift from shareholder value-driven business-as-usual to regenerative business as an intrinsic part of nature is required now:
"We do so much, and it is associated with a lot of effort and high costs. Our problems are global. And it feels like just a drop in the ocean. My vision for 2030 is really to say, this needs to become a proper network. Everything we develop should be made accessible to others, bringing together different levels and players. This way, the entire system can grow, leading to circular solutions that are jointly managed, because right now it feels like the wheel is being reinvented everywhere, but separately."
Anna Yona, Wildling Shoes, Interview August 2024 (translated)
Regeneration and its positive impact creation
Restoring, revitalizing nature
Regenerative practices help facing the polycrises by restoring damaged ecosystems, e.g. improving soil health, increasing biodiversity, decreasing ocean acidification.
Strong communities
Regeneration practices focus on diversity, fairness and sustainability, leading to more connected communities. By e.g. involving local people in decisions, everyone benefits, creating a better quality of life for all.
Building resilient economies
Regenerative practices promote using resources wisely and reducing waste, leading to economies that can better withstand and/or adapt to challenges.
Liveable future
Unlike methods that deplete resources, regenerative practices renew and enhance them, ensuring that business is an intrinsic part of nature and society.
Encouraging innovation
Regenerative practices drive new ways of thinking in business, technology, and policy, leading to economic growth and job creation while protecting the environment and promoting fairness.
Hidden barriers and underlying dynamics impeding the process
"We have a patriarchal economic system... Power positions are promoted there. It’s not so much about diversity and collaboration... Our economic system needs more of these attributed feminine qualities."
Anna Yona, Wildling Shoes, Interview August 2024 (translated)
Economic Systems
Current market dynamics often prioritize short-term profits over long-term positive impact, creating a significant barrier to the widespread adoption of regenerative practices.
E.g
In 2023, a report by the European Environmental Bureau highlighted that EU agricultural subsidies still favor conventional farming, with only 5% of the €387 billion CAP budget supporting regenerative agriculture.
European Environmental Bureau, CAP Analysis, 2023
"We do what we believe is right, not because we say it will increase our revenue by x percent, but... because it is necessary and right."
"The market is full of greenwashing."
Anna Yona, Wildling Shoes, Interview August 2024 (translated)
Lack of awareness and sustainability fatigue
Many stakeholders, including consumers and policymakers, are either unaware of regenerative practices, misunderstand their benefits or feel overwhelmed or disillusioned by the constant demands.
E.g.
A 2023 survey by the European Consumer Organization (BEUC) found that 58% of European consumers were unfamiliar with regenerative agriculture, indicating a significant gap in public awareness.
European Consumer Organization (BEUC) Survey, 2023.
“The society is completely exhausted, including sustainability fatigue, retreating into the private sphere. There is inflation, there are major pressing issues, and there is little energy for external matters."
Anna Yona, Wildling Shoes, Interview August 2024 (translated)
Regulatory Hurdles
Existing regulations are often outdated and do not support regenerative practices.
E.g. fiscal regulations in Germany:
„Keyword "fair prices." When consumers ultimately decide, they can only do so if there is fair pricing. If the worst product is the cheapest, then many people have no choice but to buy that product.“
For integrative approaches within the team, which are time-intensive, "we end up paying twice. Labor is taxed extremely high, while resources are not taxed as much."
Anna Yona, Wildling Shoes, Interview August 2024 (translated)
Transition Costs
Shifting from conventional to regenerative practices can be costly and risky for businesses.
The financial burden of transitioning to regenerative practices remains a significant barrier.
E.g. A 2023 study by Agroecology Europe found that the initial investment required for regenerative agriculture could be 30-40% higher than conventional farming, with a break-even point typically reached only after 5-7 years .
Agroecology Europe, Financial Analysis, 2023.
"We need a system that promotes a certain way of doing business (Note: regenerative). We do not have that (Note: in Germany)."
Anna Yona, Wildling Shoes, Interview August 2024 (translated)
Hidden barriers and underlying dynamics are powerful so what can we do to overcome them?
“"If we each tackle this individually, we won't succeed in time. This means that diversity and cooperation are essentially needed to find solutions much more quickly. So, we need the power of many."
Anna Yona, Wildling Shoes, Interview August 2024 (translated)
Policy Reform
Advocating for changes in regulations to support regenerative practices, including financial incentives and subsidies.
“What is needed is a bit of space and resources to actually leverage these synergies. With different political frameworks, I believe these energies would be unleashed."
Anna Yona, Wildling Shoes, Interview August 2024 (translated)
Collaborative Networks
Building coalitions and networks among businesses, governments, NGOs, and communities to share knowledge, resources, and best practices.
"I see in this generation of business leaders a great willingness to think differently and a great openness among many to collaborate."
Anna Yona, Wildling Shoes, im Interview August 2024.(translated)
Education and Advocacy:
Increasing awareness and ‚come into action‘ rregarding egenerative practices and related challengesthrough educational programs, campaigns and networks.
E.g.
Unlearn business Lab prototyping a just economy that is regenerative, redistributive and collective.
Financial Support:
Developing financial models and investment strategies that support the transition to regenerative practices, such as green bonds and impact investing.
More to come in this miniseries ‚Financing the future‘
4 tipps how to create a regenerative business that challenges the status quo and survives and overcomes powerful dynamics and barriers along the paths
„The priority is actually to change your perspective, to really try to understand how attached you are to what you have learned and how important it is to really take a different standpoint and look at it differently, because only then can you notice things.
The next thing would be to concentrate on the positive. So, of course reducing harm
and avoiding harm is very, very important.... With the team on site and saying what would really help you to improve your everyday work...There are a lot of low-hanging fruits in this area, because it hasn't been explored that much yet. And that brings a lot of motivation.
Another important point is not to aim for perfection, but to realize that every step counts. It doesn't have to be perfect. We don't have to wait until we have a perfect solution.
And the last point is this networking. I think many people have exactly the same questions and are facing exactly the same challenges.“
Anna Yona, Wildling Shoes, Interview August 2024 (translated)