Rooting for Change: How Forestry Powers Sustainability and Growth

Dec 20, 2024

This week, we turn our focus to forestry, exploring its pivotal role in ecological restoration, climate resilience, and sustainable economic growth. Forests are more than natural resources—they are critical ecosystems that support biodiversity, sequester carbon, and sustain livelihoods worldwide. Our Featured Article highlights Guayakí Yerba Mate's innovative "Market-Driven Regeneration™" model, showcasing how businesses can implement regenerative practices to restore ecosystems and empower communities.

In our Essential Reads, we delve into forestry initiatives that redefine sustainability. From large-scale tree planting projects in Idaho to Pro Silva forestry management in Belgium, these stories demonstrate how diverse stakeholders are leveraging forestry to balance ecological health with economic development. Urban forestry programs, youth-led reforestation efforts, and innovative bioenergy solutions further emphasize the multifaceted impact of forests in addressing global challenges like urban heat, clean energy access, and biodiversity loss.

Our Research Corner presents insights into optimizing forest harvesting under uncertainty. This study combines financial risk models with sustainable forestry practices, offering strategies for balancing profit and ecosystem stability in the face of climate variability.

Announcing a new 3 day executive education program on Leading Regenerative Business at the Cambridge Judge Business School led by Christopher Marquis, click below for more information or feel free to email him directly with any questions!

Forests hold the potential to be both a shield against environmental crises and a springboard for economic opportunity. This week’s stories remind us of the critical role forestry plays in shaping a regenerative future. Dive into these inspiring examples of how people and organizations worldwide are working to ensure forests thrive for generations to come!

Featured Article:

Beyond Sustainability: Guayakí's Regenerative Business Model

In a world where "sustainability" is often an overused term, Guayakí Yerba Mate distinguishes itself with its groundbreaking "Market-Driven Regeneration™" model. Highlighted in my recent Forbes article, this South American beverage company shows how businesses can actively restore ecosystems while empowering communities. Rather than merely maintaining the status quo, Guayakí’s approach seeks to enhance biodiversity and foster environmental restoration, starting at the source: its yerba mate farms in Brazil, Paraguay, and Argentina.

At the heart of Guayakí’s model is a commitment to shade-grown, regenerative organic farming practices. These methods support biodiversity and nourish the soil, aligning with nature’s rhythms. However, the company’s impact extends beyond agriculture. With certifications like "Fair for Life," Guayakí ensures livable wages for all workers in its supply chain, from Indigenous communities to factory employees. Their partnerships prioritize equity and community empowerment, promoting long-term economic sustainability.

This case demonstrates that business success and environmental regeneration can go hand in hand, providing a blueprint for a new era of responsible entrepreneurship.
Read more: Beyond Sustainability: Guayakí's Regenerative Approach to Business

Essential Reads:

Tree Planting Efficiency

PotlatchDeltic, an American diversified forest products company, plants 6 million seedlings across 15,000 acres annually in Idaho, focusing on diversity and resilience. With a challenging 6–8 week planting season, logistics ensure seedlings thrive in warming soils before summer. The effort involves 200+ workers planting 280,000 seedlings daily, fostering sustainability and forest health.

Cooperative Progress

The 60th International Tropical Timber Council (ITTC-60) session fostered unity among members, advancing preparations for renegotiating the International Tropical Timber Agreement (ITTA). Key achievements include extending the executive director’s term, forming a structured Preparatory Working Group, and adopting a financing strategy to enhance ITTO’s profile and sustainability.

Centennial Sustainability

Ashland Inc., an American chemical company, celebrates 100 years of innovation through a partnership with the Arbor Day Foundation to plant 15,200 trees across ecosystems in Brazil, Mexico, and the U.S. This initiative supports biodiversity, combats climate change, and underscores Ashland’s commitment to sustainable sourcing and environmental stewardship.

Urban Forest Resilience

Tempe's Community Tree Stewards Program tackles urban heat islands by empowering residents in vulnerable neighborhoods to expand shade canopies. Through education, outreach, and hands-on training, the program addresses climate justice, enhances biodiversity, and builds a resilient, sustainable future for all.

Eco-Economy Harmony

In Belgium, University of Namur economics students explored sustainable forestry in Haugimont, learning Pro Silva management (the European federation of foresters who advocate forest management based on natural processes), which balances biodiversity with economic gains. This immersive workshop emphasized how ecological stewardship and economic profitability can coexist, equipping future economists with insights for sustainable development.

Sustainable Mountain Tourism

United Nations Development Programme (UNDP) Malaysia, in partnership with the Forestry Department, is enhancing mountain tourism through sustainable practices, safety guidelines, and professional training for guides. The initiative promotes environmental stewardship, fair wages, and skill certification, ensuring mountains provide economic and ecological benefits while preserving biodiversity.

Empowering Energy Independence

The University of British Columbia (UBC)'s Alex Fraser Research Forest (at Faculty of Forestry) and FPInnovations (not-for-profit organization in support of the Canadian forest sector) launched a training program to help Indigenous and remote communities transition to wood-based bioenergy. Participants gain hands-on skills in biomass power operations, fostering clean energy, local jobs, and sustainable energy independence.

Youth Reforest Armenia

In Goris, Armenia, Agriculture Organization of the United Nations (FAO) and partners trained high school students in sustainable forestry practices. Through hands-on workshops, 70 students learned seedling production, energy efficiency, and reforestation techniques, fostering youth engagement in environmental preservation and building a greener future.

Research Corner:

Optimizing Forest Harvesting for Profit Stability

Lejeune and Kettunen (2017) explore how forest owners can optimize harvesting schedules to balance profit stability and reliability under uncertain conditions, such as tree growth rates and wood product prices. By applying a financial risk-based optimization framework to a forestry problem in Finland, the study highlights strategies like early harvesting and prioritizing slow-growing forests. These methods outperform traditional approaches, offering practical insights for forestry operations. Published in Manufacturing & Service Operations Management, this research bridges stochastic programming and sustainable forestry, showcasing a scenario-based model that addresses uncertainties effectively.

The regenerative business practices and sustainability innovations highlighted in this week's Regenerative Insights directly tackle the critical issues of corporate responsibility explored in my recent book explored in my recent book, The Profiteers: How Business Privatizes Profit and Socializes Cost.

Quick Takeaways:

Efficient reforestation: Streamline planting schedules and logistics for higher seedling survival rates.
Collaborative action: Strategic groups and funding accelerate sustainability goals.
Long-term commitment: Corporate partnerships drive impactful conservation.
Community cooling: Engage locals to expand shade canopies against urban heat.
Eco-economic balance: Train in forestry management to blend biodiversity with economic benefits.
Sustainable tourism: Develop policies to protect nature and support fair economic growth.
Clean energy skills: Teach bioenergy practices to foster local energy independence.
Youth reforestation: Inspire stewardship with hands-on forestry programs for young leaders.

Jonathan Tonkin

Dec 21

Thanks for sharing. You might find these posts interesting. They provide some guideposts for reforestation or afforestation, including identifying that afforestation is a bad idea in the wrong places.

Regenerative Insights