Economic Degrowth and Regeneration - What does that mean?
Paul Hawken - the founder of projects Drawdown and Regeneration - is not a scientist. But he understands the science behind the climate crisis. He says:
If we want to get the attention of humanity, humanity needs to feel it is getting attention. Regeneration creates livelihoods that bring life to people and people to life. It is work that links us to each other’s wellbeing, that provides those in poverty with purpose and a future of dignity and respect.
Jason Hickel published “Less is more - how degrowth will save the world”. Degrowth is the planned reduction of energy and resource use designed to bring the economy back into balance with the living world in a way that reduces inequality and improves human wellbeing.
Most countries pursue the growth of the economy, measured in GDP (gross domestic product), which is all of the output generated within the borders of a country. Unfortunately emissions have been rising alongside the growth of economies. GDP growth was never intended to be the main indicator of success but alas, that’s what countries are chasing.
So Degrowth for small business means to NOT go along with the commonly advised “scaling” and “growing”, eg MORE sales, CUT cost and MAKE MORE profit. Or developing something with the aim of selling out to the big corporates and making an absolute killing. Many small businesses are already very aligned with social enterprise principles and happy not to grow beyond the stress levels. They are keeping things local, supporting local charities, keeping people in employment and not price gouging the communities. Now all they need is some help understanding the numbers so they can do MORE of the good stuff without burning out, and sometimes that means less. Less growth, less busy, less cut-throat, less consumption.
Degrowth and Regeneration are not featured in the professional bodies climate action charter, which the accounting peak body of NZ and Australia has signed to show climate action. Or missing thereof. Another industry not using the touchpoints with small businesses to create real change.
In Aotearoa New Zealand there is no peak body for Social Enterprises. A peak body is an organisation which represents an entire sector of industry or the community to the government, often incorporating other organisations in that area. Australia got one yesterday, Thursday 21 July 2022. It will be a good thing, I hope. Social enterprises could be the way for humanity to get attention, because the dedicated social entrepreneurs are already focused on much more than profit and growth.
As far as small businesses go that don’t have the proper social enterprise status or whatever accreditation exists for “good” businesses, most of them have accountants. I worked for many years in chartered accountants practices and the client get to see the accountant once a few months after the balance date for a chat about the tax bill, and they are likely charged by the minute. Of course businesses ask their accountant not many questions, when there is a bill every time.
What if accountants as an industry would take a stand: to work only with clients who are measuring their impact on community, planet and people, honestly and with great transparency. And pledging to do better. No badges, no greenwashing.
And yes, losing clients will be on the cards.
But it’s likely that it will get much, much worse. It is pretty hard to wrap the brain around the planned reduction of energy and resources and that’s why it needs to come from everywhere. One person at a time. One business at a time.