Open Institute of Technology (OPIT) masterclasses bring students face-to-face with real-world business challenges. In OPIT’s July masterclass, OPIT Professor Francesco Derchi and Ph.D. candidate Robert Mario de Stefano explained the principles of regenerative businesses and how regeneration goes hand in hand with growth.

Regenerative Business Models

Professor Derchi began by explaining what exactly is meant by regenerative business models, clearly differentiating them from sustainable or circular models.

Many companies pursue sustainable business models in which they offset their negative impact by investing elsewhere. For example, businesses that are big carbon consumers will support nature regeneration projects. Circular business models are similar but are more focused on their own product chain, aiming to minimize waste by keeping products in use as long as possible through recycling. Both models essentially aim to have a “net-zero” negative impact on the environment.

Regenerative models are different because they actively aim to have a “net-positive” impact on the environment, not just offsetting their own use but actively regenerating the planet.

Massive Transformative Purpose

While regenerative business models are often associated with philanthropic endeavors, Professor Derchi explained that they do not have to be, and that investment in regeneration can be a driver of growth.

He discussed the importance of corporate purpose in the modern business space. Having a strong and clearly stated corporate purpose is considered essential to drive business decision-making, encourage employee buy-in, and promote customer loyalty.

But today, simple corporate missions, such as “make good shoes,” don’t go far enough. People are looking for a Massive Transformational Purpose (MTP) that can take the business to the next level.

Take, for example, Ben & Jerry’s. The business’s initial corporate purpose may have been to make great ice cream and serve it up in a way that people will enjoy. But the business really began to grow when they embraced an MTP. As they announced in their mission statement, “We believe that ice cream can change the world.” Their business activities also have the aim of advancing human rights and dignity, supporting social and economic justice, and protecting and restoring the Earth’s natural systems. While these aims are philanthropic, they have also helped the business grow.

RePlanet

Professor Derchi next talked about RePlanet, a business he recently worked to develop their MTP. Founded in 2015, RePlanet designs and implements customized renewable energy solutions for businesses and projects. The company already operates in the renewable energy field and ranked as the 21st fastest-growing business in Italy in 2023. So while they were already enjoying great success, Derchi worked with them to see if actively embracing a regenerative business model could unlock additional growth.

Working together, RePlanet moved towards an MTP of building a greener future based on today’s choices, ensuring a cleaner world for generations. Meeting this goal started with the energy products that RePlanet sells, such as energy systems that recover heat from dairy farms. But as the business’s MTP, it goes beyond that. RePlanet doesn’t just engage suppliers; it chooses partners that share its specific values. It also influences the projects they choose to work on – they prioritize high-impact social projects, such as recently installing photovoltaic energy systems at a local hospital in Nigeria – and how RePlanet treats its talent, acknowledging that people are the true energy of the company.

Regenerative Business Strategies

Based on work with RePlanet and other businesses, Derchi has identified six archetypal regenerative business strategies for businesses that want to have both a regenerative impact and drive growth:

• Regenerative Leadership – Laying the foundation for regeneration in a broader sense throughout the company
• Nature Regeneration – Strategies to improve the health of the natural world
• Social Regeneration – Regenerating human ecosystems through things such as fair-trade practices
• Responsible Sourcing – Empowering and strengthening suppliers and their communities
• Health & Well-being – Creating products and services that have a positive effect on customers
• Employee Focus – Improve work conditions, lives, and well-being of employees.

Case Studies

Building on the concept of regenerative business models, Roberto Mario de Stefano shared other case studies of businesses that are having a positive impact and enjoying growth thanks to regenerative business models and strategies.

Biorfarm

Biorfarm is a digital platform that supports small-scale agriculture by creating a direct link between small farmers and consumers. Cutting out the middleman in modern supply chains means that farmers earn about 50% more for their produce. They set consumers up as “digital farmers” who actively support and learn about farming activities to promote more conscious food consumption.

Their vision is to create a food economy in which those who produce food and those who consume it are connected. This moves consumers from passive cash cows for large corporations that prioritize profits over the well-being of farmers to actively supporting natural production and a more sustainable system.

Rifo Lab

Rifo Lab is a circular clothing brand with the vision of addressing the problem of overproduction in the clothing industry. Established in Prato, Italy, a traditional textile-producing area, the company produces clothes made from textile waste and biodegradable materials. There are no physical stores, and all orders must be placed online; everything is made to order, reducing excess production.

With an eye on social regeneration, all production takes place within 30 kilometers of their offices, allowing the business to support ethical and local production. They also work with companies that actively integrate migrants into the local community, sharing their local artisan crafts with future generations.

Ogyre

Ogyre is a digital platform that allows you to pay fishermen to fish for waste. When fishermen are out conducting their livelihood, they also collect a significant amount of waste from the ocean, especially plastic waste. Ogyre arranges for fishermen to get paid for collecting that waste, which in turn supports the local fishing communities, and then transforms the waste collected into new sustainable products.

Moving Towards a Regenerative Future

The masterclass concluded with a Q&A session, where it explained that working in regenerative businesses requires the same skills as any other business. But it also requires you to embrace a mindset where value comes from giving and that growth is about working together for a better future, and not just competition.