Turning Net Zero Into Business Value

We all appreciate how important it is to respond to the climate and ecological crises. But it's difficult to escape that a net zero strategy could be experienced as an additional business burden. What if we could look at it with fresh eyes?

Most businesses say that their biggest net zero challenge is their supply chain. This can be a big task.

However, looking at this challenge through the lens of 'regenerative' thinking can turn this into a great opportunity to review your product offerings, and in the process get to know customers even better. Even save unnecessary cost.

So what is regenerative thinking?

In the 70's and 80's a visionary chemical engineer turned consultant called Charlie Krone, did some revolutionary work with the likes of Proctor and Gamble and Dupont. He helped these companies see whole systems: that business was always embedded in wider systems: its operating environment; its sector; its customers. And that business generates value in a reciprocal relationship with these systems. It was this thinking that took Crest toothpaste, the first 'no fillings' brand to No.1, knocking Colgate off the top spot. Because the brand decided to invest in the relationship with its operating system, the dentists. Together they identified the next evolution of value that dentistry could offer: instead of seeing their role as filling cavities, they could promote dental health. This brought patients regularly to check ups, rather than only to dreaded drilling. And resulted in many recommendations of Crest toothpaste.

Krone introduced a framework called Levels of Work. 

1. Operate

2. Maintain

3. Improve

4. Regenerate 

All levels are necessary for a business to function, to generate value and to evolve. The two first levels Operate and Maintain enable a business to create value, and maintain this value within a constantly changing environment. At Improve potential new value can be realised in the relationship between the business and the system it's nested within - its operating system. For a toothpaste brand the operating environment is dentists; for designers of aircraft engines it is the airline industry, for a specialist consumer brand whether electronics or clothing it may be one specialist retail brand. We ask: what is the next level of value offer that our operating system can evolve to? And how can we, from what we uniquely do or offer, enable this to happen together with this wider system, to create reciprocal value.

Regenerate extends this notion of dynamic healthy, evolving nested systems to all the systems we’re a part of - starting at base, with the individual, you and me, all the way up to the biosphere which we need for all value to be possible in the first place. We’re bringing the whole of life into view, Thus thus we call Regeneration 'Whole systems' or ‘Living Systems thinking’.

Looking at net zero through the lens of Regenerate we would ask: do our product offerings enable our customers or end users to fully deliver the value they wish to deliver, to their own beneficiaries, including their own net zero commitments. So both can grow and thrive? Do our offerings help them develop the capacity to grow this value offer? Can we find out? Should we redesign?

Looked at this way net zero is a great opportunity to unlock new potential value, and significant customer loyalty.

Then, and only then consider what this means for the supply chain. You could be saving yourself enormous effort and cost. And in the process find there is significant new value to realise.

Talk to us if you'd like to know more hello@regenerative-partners.com. And see our seminar series here: https://www.regenerative-partners.com/2022-seminar-series