Climate And Environmental Governance: The power of a regenerative economic approach

This article first appeared in Forum, The Edge Malaysia Weekly on April 28, 2025 - May 4, 2025

In April 2016, as part of a nature conservation organisation, I found myself in a small canoe travelling upriver on the Caura, a tributary of the mighty Orinoco. This biodiversity-rich Venezuelan watershed borders the Amazon basin and is home to several indigenous tribes and local communities who roam the jungles in search of non-timber forest products (NTFPs). At that time of year, many local families enter the immense and remote forests of the Caura to harvest seeds from the towering Tonka tree (Dipteryx odorata, also known as Sarrapia or Cumarú) — a tropical species that can grow over 40m tall and live for more than 200 years. The income from this harvest represents a significant portion of their annual earnings.

Joining me on this adventure were a non-governmental organisation colleague, several representatives of a local Venezuelan NGO, a crew of French cinematographers, a world-renowned perfumer, a sourcing director and a sustainability manager — all from one of the largest aroma and flavour companies in the world. Most importantly, we were accompanied by men, women and children from local indigenous communities. You might wonder: why was such a diverse group gathered in the heart of the neotropical rainforest?

Although all humans depend on biodiversity and the countless services nature provides — such as water purification, pollination, flood mitigation and clean air — some businesses are more directly linked to these resources. Companies that use natural inputs like NTFPs in their supply chains are uniquely positioned to positively influence biodiversity conservation and support the people and economies that depend on nature-based value chains.

Tonka beans are a key ingredient in many of the fine perfumes this company produces for top global luxury brands. The presence of its staff on the expedition wasn’t just about documenting the source of a prized natural ingredient; it was also about witnessing how the company’s investments in a community-based conservation project were regenerating ecosystems, supporting livelihoods and transforming the way they source ingredients.

Historically, our development mindset has followed what the Dasgupta Review on the economics of biodiversity and others call a degenerative model — one driven by short-term, self-interested economic goals that often deplete natural resources and degrade ecosystems. As awareness of these consequences grew, a sustainability paradigm emerged, emphasising collaboration and aiming to shift impacts from negative to neutral — “net zero” — while introducing concepts like recycling and circular economies. This shift gave rise to corporate social responsibility and environmental, social and governance principles, which began reshaping business practices.

Read Full Article Here