The case for building Regenerative Products
What is it and why is it urgent?
Introduction
The purpose of this white paper is to propose a new approach to building technology, through regenerative products. In practical terms, I want this to be a guide book for startup founders, system thinkers, organizational leaders, and product managers.
In this article, I’ll introduce some high-level concepts and explore regenerative products at a societal scale (the “why” and the “what”). If this article gains enough interest, I’ll follow up with a more practical guide focused on building products, and measuring impact at the organizational level (the “how”).
At the core, a regenerative product enhances all forms of capital; cultural, social and environmental — rather than depleting them. This means that using such a product avoids contributing to the “tragedy of the commons,” where shared resources are overused and eventually exhausted. Most current products and companies don’t account for these externalities, leading to negative impacts on society and the environment.
Imagine a world where products actually reinforce social fabric, make people smarter, wiser. A society which makes culture more vibrant, and more poignant. Improving human wellbeing. In the light of AI being injected into every product, we need to design the right intentions, objectives and rules of play.
In a world where companies become increasingly product-led rather than offering services, building regenerative products becomes ever-more important!
Such a world is possible, and I want to take you on a journey that convinces you of the same.
The status quo: Meta, a case study.
Meta’s suite of products is used daily by 40% of the world’s population. Yes, you read that correctly.
Meta, as an organization, has created the blueprint for what is today known as the attention economy. Companies such as YouTube and TikTok have followed suit, adopting this monetization model. This approach has enabled incredible growth and success; after last quarter’s earnings report, Meta added the market cap equivalent to the GDP of Portugal.
This model facilitates the artificial clustering of opinions, emotions, and narratives (OENs). In a natural state, society has a relatively even distribution of these elements. However, Meta’s polarizing algorithms actively clump clusters together, creating no-man’s lands in nuanced or moderate OEN territories. As a result, overcrowded spaces emerge where people hold uncompromising and un-nuanced views — views they might not otherwise maintain without such clustering. Why is this polarization appealing to a company like Meta? Because it creates well-defined clusters that are easier to target for advertising.
This artificial clustering, coupled with compulsive behavior induced by polarizing content, makes these groups more susceptible to targeted advertising.
The problem with this clustering is that it weakens societal structure by artificially distancing these clusters from one another. Consider the analogy of driving through Switzerland versus the Netherlands. Driving through Switzerland takes longer due to its mountainous terrain, while the Netherlands’ flat landscape allows for quicker travel, even if the distances are the same. Similarly, societal polarization creates metaphorical mountains, extending the distances between different groups and fostering division.
Meta has designed a planetary-scale system to generate shareholder value at the expense of societal stability and overall human well-being. What it has built is effectively a centralized societal dashboard for controlling opinions, emotions, and narratives. This design extracts value by emptying people of their agency. It depletes society of its social fabric, and cultural assets.
Why am I telling you this?
I don’t want to scare you or cause alarm. I also do not want to demonize our institutions, we all know social media has brought about a lot of good. I however do want to provide a clear depiction of what happens when organizations operate from an extractive stance. The bad news is, this architectural blueprint applies to most tech companies today.
The good news is, we can do better.
Why Regenerative products?
Regenerative agriculture is an innovative farming method that replenishes environmental capital (which essentially means the increase in biodiversity and ecosystem vitality.) on and around farms, enhancing soil resilience and promoting biodiversity. This approach has given rise to the broader regenerative paradigm, which aims to create a resilient society that replenishes all forms of capital — environmental, cultural, social, and more.
In 1986, Pierre Bourdieu introduced the concept of different forms of capital, initially focusing on cultural and social capital. Bourdieu emphasized the importance of recognizing and replenishing these non-economic forms of wealth, broadening the societal “balance sheet.”
Bourdieu also described the embodied, objectified, and institutionalized states of capital. The embodied state refers to individuals embodying culture, the objectified state involves the creation of objects and tools that extend that culture, and the third state, the institutionalized state involves the establishment of institutions that embody cultural values.
Let’s consider the rise of organic food culture as an example of Bourdieu’s three states of capital.
Embodied State: In the early stages, organic food culture was embodied in the personal choices and values of individuals who prioritized natural and sustainable food sources. These early adopters were often health-conscious consumers or environmentally aware farmers who practiced organic farming methods, even when they weren’t widely recognized or supported by mainstream society.
Objectified State: As the demand for organic products grew, these values began to be objectified in tangible products. Farmers markets, organic food brands, and certified organic products started appearing in grocery stores, representing the physical manifestation of the organic movement. These products extended the values of the organic culture into everyday life, making it possible for a broader audience to engage with and support these principles.
Institutionalized State: Over time, the organic movement became institutionalized through the establishment of certification bodies, regulations, and standards such as the USDA Organic label. Institutions like these ensure that organic farming practices are maintained and that products labeled as organic meet specific criteria. This institutionalization helped to legitimize the movement and integrate it into the broader economic and regulatory systems, thereby reinforcing and expanding the reach of organic culture.
This progression — from individual values to tangible products to formal institutions — mirrors how regenerative principles can move from being personal or niche beliefs to widespread practices embedded in our economic and social structures.
Regenerative products represent the objectified state of the regenerative paradigm. These products are designed not only to serve their primary function but also to contribute positively to various forms of capital. In this paper, we will talk about how to reach the objectified state of the regenerative paradigm by building regenerative products.
By understanding and applying these principles, we can create products that align and actively contribute to societal replenishment.
Why now?
1. Regulatory Pressure is Intensifying: Regulation in Washington D.C. is finally gaining momentum, with FTC lawsuits and other legislative measures tightening the reins on the tech industry. In parallel, the European Union is making significant strides with more stringent regulations, marking a quantum leap in oversight.
2. AI is Driving the Ubiquity of Digital Products: As AI and no-code tools continue to advance, there’s an increasing expectation that most services will be delivered as digital products. This shift will further accelerate the digitization of traditional services. (Read more about this in my article.)
3. Networks are Fragmenting into Local Communities: Major networks, from Meta to Uber, are localizing and fragmenting into smaller, niche communities. This trend opens up opportunities for greater differentiation as users gravitate towards products that align more closely with their values and interests.
4. Growing Awareness of Harmful Tech: User awareness of the negative impacts of technology has reached a tipping point. More people are now willing to bypass harmful tools in favor of safer, more ethical alternatives when they are available.
Not a Moral Judgment!
Please note, regenerative products is not about making moral judgments about companies and products or categorizing them as inherently “good” or “bad.” Instead, it is a framework for analyzing how well companies are managing specific risks and opportunities. A company might score poorly on regeneration but still be financially successful in the short-term.
Conditions for Nurturing Regenerative Products
For regenerative products to thrive, specific environmental and social conditions must be present. These conditions align with the Creativist societal model that fosters a more resilient society in the face of AI and other pressures.
1. Scale Tolerance
Regenerative products must operate within a scale that maintains connection with users and the local environment. When products become too large and global, they risk depleting local resources, reducing diversity, and alienating users. For example, Amazon’s massive scale has led to various negative externalities, such as the displacement of small local businesses and environmental degradation.
Example: Shopify, in contrast, provides a platform that enables small and medium-sized businesses to thrive globally while maintaining their local identity and control. This allows for a larger scale operation without the negative impacts seen in more monolithic models like Amazon.
Proposed Levers:
Policy: Implement policies favoring local digital products and technologies, especially within the European Union, to encourage smaller, more sustainable businesses. Also core technologies should only be sourced domestically.
Support for Localism: Encourage ease of product development at the local level, as detailed in the Creativism paper, to naturally promote the localization of products.
2. Incentive Design
The incentives within a society directly influence its actor’s actions. “Show me the incentives and I will show you the outcome” Charlie Munger famously said. Companies focused solely on maximizing shareholder profit may neglect other forms of capital, such as social and environmental. To promote regenerative products, incentives must be designed to reward broader responsibilities and positive impacts.
Example: Norway is a leading example of how government incentives can drive positive environmental outcomes. The Norwegian government implemented a series of strong incentives to encourage the adoption of electric vehicles (EVs), aiming to reduce carbon emissions and promote sustainable transportation.
These incentives included tax exemptions on EV purchases, free access to toll roads and ferries, reduced parking fees, and permission to use bus lanes. These measures made owning and operating an EV significantly cheaper and more convenient than traditional gasoline vehicles.
As a result, Norway has seen a dramatic increase in the adoption of electric vehicles. By 2020, electric cars accounted for over 54% of all new car sales in Norway, making it the world leader in EV market share. The government’s incentives successfully shifted consumer behavior towards a more sustainable option, reducing the country’s overall carbon footprint.
Proposed Levers:
Monetary Incentives: Similar financial incentives can be applied to businesses that focus on producing regenerative products, encouraging them to prioritize sustainability from the outset.
Government support: Governments can provide grants, tax breaks, or subsidies for companies developing regenerative technologies, ensuring these innovations are financially viable and competitive in the market.
This example illustrates how well-designed government incentives can lead to widespread adoption of practices and technologies that are beneficial to the environment and society.
3. User Mindset
For a product to be regenerative, it must resonate with users who value sustainability and regeneration. This aligns with Bourdieu’s concept of the embodied state of capital, where the values of the culture are internalized by individuals. The success of regenerative products depends on a user base that prioritizes these values.
Example: Patagonia’s success is largely due to its appeal to consumers who are already committed to environmental preservation and sustainability. The company has cultivated a loyal customer base by embedding regenerative and sustainable practices into its products and brand ethos. Patagonia’s customers are not just buying outdoor gear — they are supporting a brand that reflects their personal values around environmental responsibility.
Proposed Levers:
Cultural Momentum: Society is naturally moving towards a more regenerative mindset, driven by environmental and technological pressures. This shift is not just a trend but a response to real, pressing challenges. As a result, the demand for regenerative products is likely to continue growing, supported by a cultural environment that increasingly values it.
These examples and levers help illustrate how specific conditions can foster the development and success of regenerative products.
“Show me the incentives and I will show you the outcome” — Charlie Munger
Challenges to Building Regenerative Products
1. Competing with Extractive Businesses
Regenerative products will face stiff competition from extractive businesses that operate on models prioritizing short-term profit over long-term and systemic impact. These companies tend to have lower costs and faster production cycles due to practices that exploit natural, social, and cultural resources without replenishing them.
The lower prices and faster market entry of extractive products can make it difficult for regenerative products, which may have higher costs, to compete.
Mitigation Strategies:
Other organizational vehicles: Regenerative products do not need to be within a for profit org! They can be built for NGOs, government services, etc. In fact there is not a very strong culture of product management in non-startup or for-profit ventures, this should be remediated.
Differentiation: Emphasize the unique value proposition of regenerative products, such as long-term environmental benefits, higher quality, and alignment with consumer values around sustainability.
Partnerships: Collaborate with other regenerative businesses to create a stronger market presence and share resources.
2. Lack of Fair Assessment and Verification
There would need to be standardized assessment and verification processes for regenerative products, for consumers and businesses to distinguish truly regenerative products from those that only claim to be so.
Mitigation Strategies:
Third-Party Certifications: Advocate for and adopt third-party certifications that validate regenerative practices, similar to how the USDA Organic label certifies organic food. We must create more B Corp type certifications for regenerative products.
Stronger consumer communities: Evaluating and verifying which products are genuinely regenerative, through more rigorous peer-to-peer assessments is key. However, this approach carries the risk of becoming subjective, with assessments potentially turning into debates driven by personal opinions rather than objective criteria.
Collaboration with NGOs: Partner with relevant NGOs and other trusted entities to develop and promote rigorous standards for regenerative products.
3. Scalability Issues
Scaling regenerative practices while maintaining their integrity can be difficult, especially when trying to balance local relevance with broader market reach.
As companies grow, there’s a risk of diluting the regenerative impact due to pressures to conform to more traditional, extractive business models.
Mitigation Strategies:
Localized Scaling: Focus on scaling through a network of localized operations that adhere to regenerative principles, rather than a single, monolithic expansion.
Modular Business Models: Develop modular business models that can be easily adapted to different regional contexts while maintaining core regenerative principles.
Strong Governance: Establish strong governance structures that ensure commitment to regenerative practices as the company scales.
These challenges highlight the complexities of developing and scaling regenerative products in a market dominated by extractive models. However, with strategic planning, innovation, and a strong commitment to regenerative principles, these obstacles can be overcome, leading to long-term success and positive impact.
Next step: How do we build it?
I have specific, actionable strategies for developing regenerative products at the organizational level. If there’s enough interest in this topic, I will follow up with a second part that provides practical, hands-on guidance for execution.
UPDATE: For the regenerative products methodology, please read on here for part 2
Sources
Systemic ventures framework, Metabolic 2021: https://www.metabolic.nl/news/systemic-venture-framework/
The Centre for Humane Technology: https://www.humanetech.com/
Who killed the ESG Party? Financial Times: