Regenerative economy lays foundation for standardization

Look at the bee: it takes and it gives back. All living things, in fact, do the same... except humans! We take, but we never give back. When I made this observation, it was a real eye-opener for me. Isabelle Delannoy, agricultural engineer, president and co-founder of L’Entreprise symbiotique, has been campaigning for several years for regenerative economics by training stakeholders and supporting them in setting up pilot projects. It is therefore no surprise to find her at the head of the working group that has just given birth to the AFNOR Spec 231 5 at the start of the 2024 academic year. Around the table were around twenty stakeholders from all walks of life, including local authorities, universities, and companies such as Axa Climate and the Pierre & Vacances Center Parcs group. The aim of the document is to share and disseminate information in order to establish a common definition of the regenerative economy, as is done by the ISO standards for the circular economy , and encourage reflection within executive committees by providing perspectives and ideas for action.

 The text points out that six of the nine planetary boundaries that guarantee the habitability of the world, modeled in 2009, have been exceeded. The consequences are ecological, health-related, social, economic, political, and geopolitical, according to Spec. The challenge is to shift to an economy powered by a different engine, one that, instead of destroying the planet's balance, helps to restore it and nourishes the ecosystems and principles that are at the origin of life. This engine exists: it is the regenerative economy. 

A 3D economy

The regenerative economy is still in its infancy, and this first set of standards lays the groundwork for aligning stakeholders. For example, to be sustainable, the system must be capable of regenerating itself in three dimensions: economic, ecological, and social . This may involve encouraging the de-artificialization of soils, but also quality employment , social ties, and individual well-being (physical, physiological, mental), or even value sharing. An example with the H2X industrial startup , in Brittany, specializing in the production of carbon-free hydrogen. Its approach: not to focus solely on production and distribution, but to start with uses and base its strategy on the real needs of businesses and local authorities: mobility, heating, lighting, production line operation, etc.

Another initiative involves Mob-Ion electric scooters (French origin guaranteed). Their modular design, based on components without molded or glued parts, combined with a rental model—functional economy—results in the direct reuse of more than 60% of parts and allows the remaining parts to be recycled in an optimal manner. Thanks to all this, the model is more than 70% independent of inflation, generates local jobs that cannot be relocated, avoids the constant extraction of the raw materials on which it depends, and helps to preserve the natural ecosystems of extraction permits. , explains Mob-Ion. 

Textile companies are also involved in this revolution, points out Catherine Dauriac, president of the NGO Fashion Revolution (French office). As we know, textiles affect both natural resources and human rights, with issues such as living wages and moral and sexual harassment in many countries. In France, there are already several specialized collectives. She cites two examples from the field, those of two cooperatives, Virgocoop (hemp sector) and Laines paysannes. They show us how we can better take into account the specific characteristics of a region and work together toward a specific goal. Regenerating means using everything at our disposal to recreate new resources... without extracting anything new! , says Catherine Dauriac.

Regenerative economy: 1+1 = 3 

Mathieu Vérillaud, Head of Impact Measurement and Regenerative Business Models, describes how Axa Climate, through consulting assignments, training, and insurance products, is trying to bring about change within the group and among its customers, while being well aware that this is a long-term endeavor: We must accept the idea that there is no finish line. It is about making continuous progress, and to do that we need to be able to agree on common ground, as this Spec allows us to do. We also need to be able to cooperate: this notion of cooperation is key to the regenerative approach. Cooperation is not collaboration; it is not limited to a project with a defined timeframe. You are working on a project that is bigger than both of you. 1+1 = 3! You are involved in a project that is beyond your control, and very often this project is territorial. 

Christian Bruère, president of Mob-ion, emphasizes the accounting aspect. To anchor regenerative practices in reality, sooner or later we will have to shift the accounting parameters. It's difficult because we're not looking for performance, we're looking for robustness. But guess what happens? We realize that we're actually very competitive! he says. The solution is accounting-related. Today, for example, we're not allowed to depreciate a product over a period of more than 20 years. But since 2016, it's been possible to depreciate component by component. And I believe that the 20-year rule will soon be abolished.

And Isabelle Delannoy drives the point home: After battery chickens, battery companies were invented: they exist to generate euros! We support the implementation of ecological, economic, and social performance systems because they are the driving force behind a new form of extended, sustainable, and resilient value creation. Tomorrow, we will need to equip it with multi-capital accounting that respects their specific characteristics: the idea is not to convert everything into euros. The regenerative economy is very effective because it makes us resilient to inflation and shortages of raw materials.