Davos 2024: 'Regeneration' Emerges as the Future of Sustainable Business
At the World Economic Forum in Davos, discussions have shifted from merely reacting to climate-related business impacts to fostering proactive, positive contributions.
Rising climate disasters, such as devastating heatwaves and floods, underscore the urgent need for action largely expected of industries.
A Pew Research Center survey from October 2023 showed that 52% of Americans believe corporations can significantly combat climate change, while only 27% felt individuals had comparable influence.
Similarly, a 2022 Deloitte survey revealed 97% of executives have witnessed climate-change-related business disruptions.
Experts argue that businesses must adapt their practices for resilience against climate risks to thrive in the long term. This topic has been at the forefront of the Davos Forum.
Gim Huay Neo from the World Economic Forum stressed the urgent need for new business models and lifestyles that sustain growth and profit without harming the environment.
This "regeneration" strategy involves a complete overhaul of business and supply chain models, focusing on creating positive impacts rather than just lessening negative ones.
Anotable example is the clothing company Patagonia, which uses recycled materials or employs regenerative organic practices in its supply processes.
The push towards a regenerative approach in consumer goods is partly propelled by stricter regulations and evolving consumer expectations, with a dramatic shift in the demand for sustainability.
However, fostering resilience, not to mention regeneration, is challenging. McKinsey & Company's Bob Sternfels points out that only 16% of leaders feel prepared in terms of resilience, though building it could significantly boost the global GDP.
The urgency for transformation is clear, without viable alternatives. As Jesper Brodin from the Ingka Group (Ikea) states, a business model based on resource depletion is unsustainable. Despite the complexities, significant changes are deemed necessary by industry leaders.
A Pew Research Center survey from October 2023 showed that 52% of Americans believe corporations can significantly combat climate change, while only 27% felt individuals had comparable influence.
Similarly, a 2022 Deloitte survey revealed 97% of executives have witnessed climate-change-related business disruptions.
Experts argue that businesses must adapt their practices for resilience against climate risks to thrive in the long term. This topic has been at the forefront of the Davos Forum.
Gim Huay Neo from the World Economic Forum stressed the urgent need for new business models and lifestyles that sustain growth and profit without harming the environment.
This "regeneration" strategy involves a complete overhaul of business and supply chain models, focusing on creating positive impacts rather than just lessening negative ones.
Anotable example is the clothing company Patagonia, which uses recycled materials or employs regenerative organic practices in its supply processes.
The push towards a regenerative approach in consumer goods is partly propelled by stricter regulations and evolving consumer expectations, with a dramatic shift in the demand for sustainability.
However, fostering resilience, not to mention regeneration, is challenging. McKinsey & Company's Bob Sternfels points out that only 16% of leaders feel prepared in terms of resilience, though building it could significantly boost the global GDP.
The urgency for transformation is clear, without viable alternatives. As Jesper Brodin from the Ingka Group (Ikea) states, a business model based on resource depletion is unsustainable. Despite the complexities, significant changes are deemed necessary by industry leaders.
