Regenerative Investing
Institute
Our mission is to bring business into regenerative relationship with the rest of the world through the practice of investing.
We are a think-tank developing a theory and practice of Regenerative Investing.
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This website makes our work-products available publicly, for use under the CC-BY-SA Creative Commons licence.
We offer this as our service to the field.
What if my daughter were to start a business?
How would I respond?
To our great surprise, this question generated a strong visceral response in us. It became the animating question on our journey towards developing the theory of Regenerative Investing.
We imagined making a financial investment in her business. As an investor, how would we treat her? Would we push her towards maximisation of returns? Towards extractive and transactional relationships? Towards prioritisation of the short-term over the long-term?
No, we would not. We would want her well-being. And her business to be a reflection of her potential, drawing respect and leaving a legacy.
Why does the business sector operate in such a way as to cause such fears and contradictions? Do business and investing need to be defined in the way that they are today? If not, how can we change them?
Read more about our journey on the Regenerative Business page.
What is Business?
Business is an activity created by humans, for the purpose of human thriving. We derive livelihood from business, and also a sense of purpose, and joy from the expression of our skills. Business is fundamentally a social activity, embedded within the context of human society. In all the talk about markets, indicators, etc., it is easy to forget that simple truth.
Human society, along with our entire universe, is a living system. Our current view of business as separate from the rest of life, is a result of the dominant reductionist scientific paradigm in which we take things apart under the assumption that each part has a separate existence. Bringing business back into connection requires us to use a different paradigm in which the universe is seen as a "web of life": parts that are interconnected into networks. We, therefore, based our work on living-systems principles, which is described in detail on the Living-Systems Principles page.
What is Regeneration?
The current scientific paradigm of reductionism separates humans from nature, and business from society. Our attempts to correct that has evolved over the past decades taking us from sustainability (less bad), to restorative (humans operating on nature), to reconciliatory (humans as an integral part of nature), and finally to regenerative (humans participating in nature and co-evolving the whole system). The page Why Regeneration? has more details.
Regeneration is about ensuring that today’s structures will support life tomorrow
in all its vitality and heterogeneity,
because today’s structures will become tomorrow’s infrastructures.
To clarify, by ‘structure’ and ‘infrastructure’ we refer to physical, mental, conceptual, tangible and intangible 'things'. Systems have structural elements in them.
Regenerative Business = Business as a Living System
A key property of living systems is constant adaptation along with the context within which they exist, while keeping its interconnections healthy. Businesses, in order to survive and thrive, must also do the same. Regenerative business is a way of being in business that brings it into regenerative relationship with its socio-economic-ecological context. Read details on the Regenerative Business page.
Business As Usual
Business As Usual is concerned with the ability of the market to purchase its product or service:
Ignores the interconnections, thereby creating unwanted negative externalities
Not concerned about what it leaves behind - sees the context as separate from itself
Regenerative Business
Regenerative Business is concerned with the ability of the ecosystem to thrive with its new product or service:
Builds healthy relationships and capabilities in the ecosystem
Leaves a healthy context behind
Given the central role that business plays in human activities, there are increasing voices calling for business to become more responsible. We propose that a regenerative approach is suitable for all types of businesses not just those tackling socio-economic-ecological challenges ('impact businesses'). The regenerative approach can make businesses more context-responsive thus more risk-prepared, and at the same time create fewer negative side-effects, provide greater resilience, and make businesses more responsible citizens of the world.
Regenerative Investing
Why Regenerative Investing?
We are in a polycrisis: climate change, economic inequity, resource shortage, declining agricultural output, etc. Business has a large part to play in how we got here. But, it is our thesis, that business can be an instrument of reform, provided that we re-think how business is done.
Within the broader business framework, which we call the economy, the creative energy that seeks out new markets, invents new products, pushes for new policies and creates growth is investing. Currently, the practice of investing has only one goal: profit. What if we could change that?
What if the practice of investing could itself become regenerative? Wouldn't the creative energy then seek not just profit but also systemic health? Wouldn't we reform the entire economic system?
What is Regenerative Investing?
Regenerative investing is not just about investing in regenerative businesses.
The investor has a special relationship with the investee, which too often is dominated by the investor; sometimes going so far as to change the goals of the investee itself. If we were to view their relationship as complementary, we can then create a dynamic partnership that is able to adapt, evolve, and be resilient.
Regenerative investing is an investing practice that seeks to connect business to its socio-economic-ecological context such that it enables thriving for both itself and its context.
How is Regenerative Investing done?
The Regenerative Investing Framework creates the capability for a business to grow regenerative relationships within its socio-economic-ecological context.
We have developed a theory that consists of 3 pillars grounded in complexity science. The 3 pillars Potential, Citizenship and Capabilities together form a holistic way for the business to “be” in its socio-economic-ecological context. The regenerative investor supports its investee to realise its potential, express its citizenship and develop its capabilities on its regenerative journey.
We are in the process of developing several work-products that can be used by both the investor and investee to guide them in the application of the regenerative investing framework.
Our first work-product is the investment term sheet, redesigned to include regenerative outcomes, and has an emphasis on relationships.
Please see our list of work-products in the Our Work-Products menu.
We see regeneration as a necessity for our future.
And Regenerative Investing as the creative energy moving the economic and financial systems towards regeneration.