Going beyond tackling carbon emissions

Companies now understand that they must reduce carbon emissions, and they're about to solve the issue as they have done previously with other matters (cost reduction, customer satisfaction, ...): by using a new optimizable numerical indicator and a strict execution plan spread over time. They will undoubtedly face some surprises along the way.

The first surprise is that behind the carbon cycle tree lies a forest of many other natural cycles: water, nitrogen and biodiversity. Companies will also have to reduce their footprint in these areas.

The second surprise is that these cycles are all linked to each other: global warming is the third cause of our biodiversity's decline... these cycles form a complex system in constant dynamic equilibrium.

The last surprise, probably the most worrying, is that companies will quickly realize that reducing our negative impact is not enough. 6 of the 9 planetary boundaries, which if crossed all humanity would witness an irreversible ecosystem transformation, have already been largely exceeded (global hydrological cycle, chemical pollution, biodiversity loss and extinctions, ...). You don't need to be a mathematician to understand that the sum of several negative factors (even slightly negative) does not result in a positive number.

The current CSR, ESG, or sustainability Doxa is collectively driving us into a wall. We're encouraged to reduce the negative, but we need to regenerate to contribute positively to all natural and human cycles. For example, we should not be satisfied with reducing the volume of pesticides. Instead focus on our agricultural practices that regenerate soil. This is possible today thanks to alternating crops and leguminous plants, so that microbial and fungal life can develop once again and bring nutrients to plants. Don't just insulate individual houses. Make them contribute to the ecosystem more than they consume, by installing solar panels to produce and distribute energy. Favor constructions made from wood as this material absorbs carbon by collecting rainwater...

There?is?now an?urgent?need to?build a regenerative economy

Don't just prevent the risks of burn-out at work but transform and liberate corporate cultures so that employees can flourish in an environment that makes sense to them. Empower them to help them connect the company’s mission to their individual purpose in life.

We could consider companies’ first step towards ESG as an awareness milestone in their transition roadmap, if we had the time. But there's no time. It's urgent to build a regenerative economy. This transition requires a decisive change in companies, their business model, and their culture. Regeneration is a simple principle where companies aren't dissociated from the living, the biosphere, but are an integral part of it—a living entity, like any other. Finding inspiration from the workings of living ecosystems will allow companies to contribute positively to the ecosystem.

First of all, companies have to accept its strong dependency. A company is nothing without its stakeholders. It depends on employees, production sites, natural resources, suppliers, ..., just as the Earth needs the Sun, trees need mushrooms, or vultures need decaying microbes.

Companies must integrate this simple principle: they will only grow if each entity of their ecosystem grows, following its only reason for being. The purpose of many employees is to develop their skills, the purpose of suppliers is to encourage local employment, and the purpose of soil is to grow plants. Therefore, companies should focus on developing the potential of each entity they depend on.

By going beyond tackling carbon emissions, the regenerative economy will fundamentally transform businesses.

Like any shift, it's simple as long as we change our perspective. And it's urgent; the planet is burning.?

By Antoine Denoix