Regenerative Innovation: An Elixir For Climate-disrupted Corporations

The Global Risk Report 2025 by the World Economic Forum presented the alarming findings of the Global Risks perception survey, highlighting the urgent need for solutions to environmental problems caused by extreme weather and pollution. The environmental risk categories, including extreme weather events, biodiversity loss, ecosystem collapse, critical changes to Earth systems, and natural resource shortages, are the top risks over a 10-year period. 2024 was recorded as the hottest year, and crop production experiences environmental risk as the most significant source of concern over the past two decades.

In my research article, co-authored with Prof. Vanita Yadav from Western Sydney University, Australia, we propose a solution to this situation for corporations, namely regenerative innovation. We operationally define regenerative innovation as a novel approach to addressing the challenges of planetary health and societal well-being, aiming to establish a sustainable, nature-positive solution for a resilient socio-ecological system. The benefits of regenerative innovation primarily benefit nature as a key stakeholder, followed by various other stakeholders, including communities, customers, suppliers, investors, employees, and the organisation itself.

How firms are coping with these issues by utilising regenerative innovation and exploring new business opportunities can be exemplified by a few leading global corporations. ITC, an Indian based conglomerate that operates in sectors such as fast-moving consumer goods, agribusiness, hospitality, information technology, paper goods, and packaging. ITC’s initiative, focused on climate-smart agriculture (CSA) aims to promote sustainability, regeneration, and resilience to climate change in farming. CSA includes a variety of practices and technologies tailored to specific agro-ecological conditions and socio-economic contexts, such as the use of climate-resilient crop varieties, conservation agriculture methods, agroforestry, precision farming, and water-efficient practices that maximise crop yield per unit of water. These methods contribute to enhanced productivity, increased resilience, reduced emissions, and the support of sustainable livelihoods. Additionally, ITC is focusing on establishing new and diverse farm value chains for crops like millets to enhance climate resilience and ensure nutritional and food security. The initiative supports farmers in managing risks associated with climate-related challenges. ITC aims to have 4 million acres included in the CSA program by the year 2030. In the fiscal year 2024-25, 3.1 million acres in 19 states were incorporated into the initiative.

Looking ahead, ITC is concentrating on enhancing its systems for assessing and tracking farm-level emissions from its primary agri-value chains.

Patagonia, a prominent American retailer specialising in outdoor recreation apparel, is dedicated to its primary stakeholder, i.e. the planet. The company is committed to producing high-quality products while minimising unnecessary harm to the planet and its inhabitants. To achieve this objective, Patagonia focuses on the design and manufacture of durable, multifunctional, and timeless products, utilising materials that are easily repairable and recyclable. Throughout its supply chain, Patagonia strives to reduce water consumption, energy use, greenhouse gas emissions, and waste generation. Furthermore, the company encourages a shared responsibility for the lifecycle of its products by motivating customers to repair, reuse, and recycle. Additionally, Patagonia actively participates in initiatives such as its Regenerative Organic Certification pilots, which involve 800 organic cotton farmers in India. The organisation allocates 1% of its annual net revenue towards environmental conservation and sustainability initiatives. Additionally, it provides substantial grants to enhance the production of regenerative organic fabrics and to support farmers in adopting practices that improve soil health.

ARUP is a UK-based consulting firm specialising in sustainable urban design, providing services in buildings, digital technology, climate, and infrastructure. A central theme of ARUP’s work is urban rewilding, which aims to restore natural ecosystems within cities, thereby enhancing resilience, improving the health and well-being of residents, and strengthening community ties and local economies. By recognising the importance of nature in fostering sustainable communities and businesses, ARUP highlights that environmental preservation is crucial for urban quality of life. With support from the Rockefeller Foundation, ARUP has developed a City Resilience Index, which evaluates urban resilience using 52 indicators based on qualitative and quantitative data. This framework aligns with 12 specific goals and has been piloted in cities including Liverpool, Hong Kong, Shimla, Concepcion, and Arusha. Additionally, ARUP’s climate change team formulated the Bristol One City Climate Strategy, addressing carbon emissions across scopes 1, 2, and 3, thereby focusing on both local emissions and the broader consumption-based footprints of residents and businesses.

These leading examples showcase a pathway for regenerative business that keeps planetary health and societal well-being at the centre of their strategy and operations. Now, the question arises: how do firms integrate regenerative innovation in the existing systems and processes?

We propose regenerative innovation archetypes that provide illustrations of various types of innovations adopted by global corporations. These innovations are categorised into Urban Transformation innovation, Technology innovation, Responsible innovation, and Business Model innovation.

These archetypes can serve as an effective template for companies and startups to identify opportunities for fostering regenerative value through their products and services. The leading organisations may realign their business models in ways that support nature, biodiversity, and social well-being. As we transition into the Industry 5.0 era, characterised by a shift from a primarily economic and efficiency-driven approach to one that emphasises social value and well-being, organisations can utilise this approach to adopt an eco-centric, people-oriented business model that embraces regenerative practices.

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of the publication.