CLOSING THE GAP
Regenerative business can end the tug of war between pro itability and sustainability and start narrowing the execution gap on climate impact, says Kearney global sustainability director Angela Hultberg
T he gap between where we are currently in terms of climate impact and where we aspire to be is called the execution gap and closing this needs to be the focus of businesses and public organisations alike. While there are many reasons for the existence of the execution gap, they can largely be boiled down to a lack of speed and scale, with poorly thought-out practical strategies for achieving goals that are set. Setting goals is important, essential even, but it is equally critical to make sure they are agreed on with a clear strategy for how they are going to be achieved and the changes required to enable success. Without this, they are meaningless. For example, while many of us are setting decarbonisation targets “A regenerative business model adopts strategies that promote resilience, restoration and abundance”
today’s challenges, but also creates an environment for long-term success – a regenerative approach. In contrast to sustainable business models that centre around minimising harm or reducing environmental impact, a regenerative approach embraces a more expansive vision of success.
At its core, regenerative business seeks not only to minimise negative impacts but also to regenerate and enhance the ecosystems and communities it operates within. A regenerative business model adopts strategies that promote resilience, restoration and abundance to make a net-positive impact and leave a beneficial footprint on the environment and society. For instance, companies might invest in regenerative agricultural practices that enrich soil health, enhance biodiversity and sequester carbon. Similarly, a regenerative business might embrace circular business models, promote resource e ciency and minimise waste generation. The benefits of this approach will also allow businesses to positively impact those around them, as well as
or making net-zero commitments, the majority of these are long-term goals that need to be supported by shorter-term objectives and achievable actions that can be taken now. If we struggle to implement short-term practical solutions, we will have no long term to discuss. Emissions must peak by 2025 and drop 43 per cent by 2030, according to a 2023 report from the Intergovernmental Panel on Climate Change; a challenging timeline indeed. OUT WITH THE OLD, IN WITH THE NEW To close the execution gap, we need an approach that not only tackles
38 Business Impact ISSUE 1 2024
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