Let’s Talk Regeneration
Five years ago, when I joined the ranks of the impact investing workforce, sustainable was the word. Sustainable packaging, sustainable food, sustainable forestry, sustainable construction — you get the picture. But one of the risks of working in the world of impact investing and essentially challenging global crises with our armory of investable solutions every day is the ever-present temptation to be incredibly aspirational. Sustainable out, regenerative in. It’s no longer good enough to just sustain ourselves as far into the future as possible, we need to restore, rebuild and regenerate all the things we damaged in the first place, and create healthy, equitable systems.
I’m all for this — let’s regenerate. But what does that actually mean and how to we stop the already mightily greenwashed industries from commandeering our new buzzword beacon and, well, regen-washing? Agriculture has been one of the first industries to drive the regenerative concept forward, coined as early as the 1980s by the Rodale Institute, a longstanding institution for healthy and nature outcomes. In agriculture, the regen principles (in the right combination), are quite simple: while sustainable agriculture sought to use less water, use less chemicals, degrade less land, reduce emissions, all while feeding more people, the regenerative movement has bigger dreams. Use less water AND improve protection and natural filtration of natural water resources. Use less (or no) chemicals AND restore the biodiversity that was hammered by chemical pesticides. Use less land AND restore natural habitats, soils, and carbon sinks. And feed more people? Obviously. But feed them nutritiously, in a way that promotes physical wellbeing and a healthier relationship with food. While the concept of sustainability inherently leans on lessening footprints to extend lifespans, the regen concept promotes (re)growth — and thus presents the investment world and “big ag” industry with a unique chance to have their regen-branded cake and eat it.
Food and the way it’s produced is typically highly regulated. Terms such as organic which may result in farmers being able to charge a premium for their produce are hard-earned, and typically come with a transition (or lag) period, some form of cost, a lot of admin and potentially a yield sacrifice to get there. With no regulated definition or overarching success metric for regeneration, the word is being co-opted more and more to positively brand approaches to food production that in practice, deliver very little ultimate improvement. What this does is undermine examples of genuine regenerative operators — the ones who have observed improved water retention due to higher soil organic matter, the ones who have shown that grass-fed livestock integration reduces land preparation costs, and the ones who have reduced tillage (ploughing!) can reduce fuel costs and improve crop performance. Is fully authentic regenerative farming possible, avoiding synthetic inputs all together but somehow still rebuilding soil, and using less land but somehow intensifying yields on the land we do use? It’s aspirational, but the right combination of brave farmers and aligned capital might just make it happen.
Hayley Mole, Vice President, Investment Research
Regenerative Food System Investment (RFSI) has aggregated their 7 key themes from a year of observing the evolution of regenerative agriculture. From the lack of focus on nutrient density to the “missing middle” in regenerative agriculture supply chains, there is work to be done — but at least the industry is talking about it.
The system-based concept of regenerative agriculture seeks to utilize the outputs or by-products of one actor of the system in a way that benefits another actor in the system. After being told for many years that beef cattle (and their continual methane projections) are one of the worst contributors to climate change, protagonists of regenerative food systems see livestock as a key piece of the landscape. This does not mean “eat more meat”. Beef is still a key contributor to the emissions puzzle, but there may be a place for smaller numbers of beneficial herd animals among a much more diversified farming mosaic.
Regenerative agriculture is not a new concept — it’s just a trendy concept now. The Investing in Regenerative Agriculture podcast has been talking to some of the earliest regen thinkers in this space since 2016, with over 300 episodes of regenerative thinking to get you wondering about how your food is produced. If film is your preferred medium, the follow-on to Kiss the Ground — aptly named Common Ground — will be released this fall.
This newsletter is intended solely for informational purposes, and should not be construed as investment/trading advice and are not meant to be a solicitation or recommendation to buy, sell, or hold any securities mentioned. Any reproduction or distribution of this document, in whole or in part, or the disclosure of its contents, without the prior written consent of Flat World Partners is prohibited
Thank you for subscribing to our newsletter. Our privacy policy is available at anytime for you to review in order to understand how we protect your personal identifiable information. By subscribing to the newsletter you have consented to our policy
Forwarded this message? Subscribe Here!
Copyright © 2024 Flat World Partners, All rights reserved.
You are receiving this email as a believer in competitive financial and social returns.
Our mailing address is:
Flat World Partners
386 Park Avenue South
18th Floor
New York, Ny 10016
