Regenerative Business Models Explained

For decades, sustainability has focused on meeting the needs of the present without limiting the ability of future generations to meet their own needs. Yet today’s linear, extractive economy has pushed ecosystems beyond their ability to recover. As biodiversity declines, forests shrink, and climate impacts intensify, it has become clear that sustaining current systems is no longer enough to ensure long-term human and planetary well-being. This has fueled growing interest in regeneration, the ability of living systems to restore themselves, build resilience, and create the conditions for thriving.

A study from researchers in the Netherlands explored how these ideas apply to business. While “regenerative business models” have been used more often in recent years, the term remains loosely defined. To clarify it, the researchers conducted an extensive literature review and then held six international focus groups with sustainability professionals and Indigenous representatives from South America and India. Their goal was to understand how businesses can shift from reducing harm to actively restoring health in natural and human systems.

Across the literature and focus groups, one theme dominated: humans are not separate from nature. Planetary health—the idea that the well-being of people depends on the well-being of Earth—was central. Regenerative organizations acknowledge that “humans are embedded in, part of and fundamentally dependent on nature.” This represents a major perspective shift away from an anthropocentric worldview where nature is treated mainly as a resource for human use.

The study found that regenerative business models “create and deliver value at multiple stakeholder levels—including nature, societies, customers, suppliers and partners, shareholders and investors, and employees—through activities promoting regenerative leadership, co-creative partnerships with nature, and justice and fairness.” Many Indigenous participants emphasized being “in service to nature,” adapting their activities to environmental conditions instead of forcing nature to meet business needs. One example described communities leaving land fallow in times of water scarcity and shifting temporarily to other livelihoods, demonstrating deep respect for ecological limits.

Regenerative leadership also matters. Employees are encouraged to engage in “inner work,” including reflection, emotional intelligence, and meaningful conversations about complex problems. This supports innovation and helps organizations operate in alignment with natural systems. A focus group example from the Paraja tribe showed how a shift away from extractive farming practices led to the return of biodiversity and improved local food sources within a decade.

Importantly, the authors argue that regenerative business research must include Indigenous perspectives, as Indigenous peoples manage about 40 percent of the world’s remaining biodiversity-rich areas.

Ultimately, the study defined regenerative business models as:

“Organizations with regenerative business models focus on planetary health and societal wellbeing… Capturing value through multi-capital accounting, they aim for a net positive impact across all stakeholder levels.”

Compared to sustainable and circular models, regenerative business models share similar design tools but differ in their primary goal: not just reducing harm, but restoring and improving the health of social and ecological systems.