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Net Positive vs. Net Zero: Why Climate-Ready Businesses Are Shifting Goals

In today’s era of environmental accountability, terms like “sustainability,” “net zero,” “regenerative,” and “net positive” are reshaping corporate strategy. While many businesses have set their sights on achieving net zero emissions, forward-thinking organizations are recognizing the need to go further. The concept of net positive—contributing more to the environment and society than is taken—offers a bold vision for regenerative business practices.

If this sounds like a monumental shift, that’s because it is. Let’s explore why forward-thinking businesses are making this leap and how they’re turning net positive into a reality.

This blog explores the evolution from net zero to net positive, guided by frameworks like Context-based Sustainability (CBS), the Planetary Boundaries Framework, and Doughnut Economics. Whether you’re a business leader or a student of a Sustainable MBA, this shift offers transformative opportunities to redefine success.

Net Zero vs. Net Positive

In simple terms, net positive means that a business contributes more to the environment and society than it takes away. Think of it like leaving a campsite cleaner than you found it. While net zero focuses on canceling out emissions (neutral impact), net positive aims for restorative impact—giving back more than you use.

For example:

  • A net zero company might offset 100% of its carbon emissions by planting trees or purchasing carbon credits.
  • A net positive company might go further by investing in renewable energy projects, regenerating ecosystems, and improving community well-being.

It’s about creating value for the planet and people, not just minimizing damage.

From Sustainability to Net Positive: Operating Within Limits

Sustainability has long been defined as meeting the needs of the present without compromising the ability of future generations to meet their own needs. However, achieving truly sustainable—and ultimately net positive—business practices requires understanding and respecting the limits of the planet’s natural and social systems. This is where frameworks like Planetary Boundaries, Doughnut Economics, and Context-based Sustainability (CBS) come into play, offering organizations actionable models to assess their impacts and chart a path forward.

Understanding Planetary Boundaries

The concept of planetary boundaries identifies nine critical systems, such as climate stability, biodiversity, and freshwater use, that define the “safe operating space” for humanity. Crossing these thresholds risks destabilizing the Earth’s systems and jeopardizing global resilience. Unfortunately, recent research indicates that we have already surpassed several boundaries, including those for climate change and biodiversity.

For businesses, planetary boundaries serve as a compass, helping them understand where their operations might be contributing to ecological degradation and how they can adapt to stay within sustainable limits. For example, a company can evaluate its carbon emissions in relation to global climate thresholds or analyze its water usage in regions facing scarcity.

Fig. 1. Current status of control variables for all nine planetary boundaries (from Richardson et al., 2023).

Linking Doughnut Economics and Business Strategy

Doughnut Economics builds on the planetary boundaries framework by integrating social foundations. It envisions a “doughnut” where the outer ring represents the ecological limits and the inner ring represents the minimum social standards—such as access to education, health care, and equity—that all people should have.

Businesses aiming for net positive outcomes must navigate this doughnut by operating within ecological ceilings while actively contributing to social foundations. For instance, a net positive company might reduce its greenhouse gas emissions (addressing the ecological ceiling) while also investing in workforce education and community development (strengthening social foundations).

Figure 2. DoughnutEconomics, CC BY-SA 4.0 <https://creativecommons.org/licenses/by-sa/4.0>, via Wikimedia Commons

The Role of Context-Based Sustainability (CBS)

CBS bridges these frameworks and helps businesses operationalize them. Unlike generic sustainability goals, CBS aligns organizational targets with the specific ecological and social contexts in which a business operates. For example, a company’s carbon reduction goals should be proportional to its contribution to global emissions and informed by climate science. Similarly, its water conservation strategies should consider local water scarcity challenges.

This context-driven approach ensures that businesses not only avoid harm but also actively contribute to restoring planetary and societal health. By adopting CBS, companies can develop measurable, regionally specific strategies to address planetary boundaries and align their actions with the principles of Doughnut Economics.

Toward Net Positive Outcomes

Integrating these frameworks allows businesses to move from basic sustainability toward net positive strategies. A net positive company doesn’t just mitigate its environmental and social impacts—it generates more positive outcomes than negative ones. It restores ecosystems, enhances community well-being, and contributes to global sustainability goals.

By using planetary boundaries to define ecological limits, Doughnut Economics to balance those limits with social needs, and CBS to localize their actions, businesses can navigate the complexities of achieving net positive outcomes. This approach not only ensures long-term resilience but also positions companies as leaders in the transition to a sustainable, thriving future.

Why Businesses Are Embracing Net Positive

So why should businesses aim for net positive? Three key reasons stand out:

  1. Stakeholder Expectations: Consumers, employees, and investors increasingly demand more than neutrality. Net positive signals a commitment to leadership and innovation.
  2. Systemic Impact: Net zero alone often addresses symptoms rather than root causes. Regenerative solutions tackle systemic challenges like supply chain sustainability and climate resilience.
  3. Profitability and Resilience: Regenerative practices, such as circular economies and renewable energy adoption, reduce costs and mitigate risks while fostering long-term growth.

Walmart: One Company’s Journey to Net Positive

Walmart, one of the largest retailers in the world, has set an ambitious target: achieving net zero emissions across its global operations by 2040. This goal reflects the company’s long-term vision for sustainability, acknowledging that the path to net zero—and eventually net positive—requires sustained effort and innovation.

The road to net zero is no small feat for a company of Walmart’s scale. It requires transforming energy usage, optimizing supply chains, and rethinking product life cycles. But Walmart isn’t stopping at net zero. Alongside reducing its footprint, Walmart is embracing regenerative practices to create positive environmental and social impacts, further supporting its journey toward becoming a net positive company.

Walmart’s regenerative efforts are designed to restore, renew, and rebuild ecosystems and communities in ways that align with the broader net positive framework:

  1. Regenerative Agriculture
    Walmart is funding initiatives with farmers and suppliers to adopt regenerative farming practices, such as improving soil health, increasing biodiversity, and capturing carbon. These efforts don’t just reduce Walmart’s carbon footprint—they also contribute to the long-term health of agricultural systems, which supports communities and ecosystems worldwide.
  2. Protecting Land and Ocean
    The company has committed to helping protect, manage, or restore 50 million acres of land and 1 million square miles of ocean by 2030. Walmart is partnering with the National Fish and Wildlife Foundation and the World Wildlife Fund. By prioritizing ecosystem restoration, Walmart is actively contributing more to the environment than it takes, moving closer to a net positive future.
  3. Eliminating Waste
    Through its zero-waste initiatives, Walmart is advancing circular economy principles to minimize waste in its operations and supply chain. This includes designing products and packaging for reuse and recycling, which not only reduces environmental harm but also supports a system of continual resource renewal.
  4. Empowering Communities
    Walmart’s efforts extend beyond environmental impacts to include social regeneration. The Walmart Foundation has funded StoryCorps, Welcoming America, and Trust for Public Land. By supporting diverse organizations, creating jobs, and investing in renewable energy projects, the company is uplifting the communities it serves and ensuring shared benefits along its value chain.

Walmart’s goal of reaching net zero by 2040 illustrates the time and commitment required to achieve transformative change. However, its regenerative initiatives show that companies can begin creating net positive impacts even as they work toward net zero. Regeneration and sustainability go hand in hand, building a foundation for Walmart to eventually give back more than it takes.

Walmart’s journey demonstrates that while achieving net positive is a complex and gradual process, it is possible when paired with bold commitments, innovative strategies, and a vision for a better future. It’s a roadmap that other companies can follow, proving that businesses can lead the way in creating a healthier planet and stronger communities.

The Future of Business: From Neutral to Positive

Transitioning from net zero to net positive is more than an ambitious goal—it’s a necessity for businesses committed to thriving in a climate-ready world. By applying principles from Context-based Sustainability, understanding planetary boundaries and doughnut economics, companies can redefine their impact for generations to come.

Whether you’re a student exploring sustainable management and climate-ready business or a leader looking to drive change, the path to net positive is an opportunity to transform not just your business but the world at large.

Are you ready to take the next step? Apply today for a Sustainable MBA in Climate-Ready Business and become a sustainability leader in a changing world. You can also find out how Unity Environmental University can help you future proof your career with flexible, online sustainable business courses.

Written by Dr. Kelly Boyer Ontl, Dean of Graduate Studies, with writing assistance from AI language model ChatGPT (OpenAI, 2024) to brainstorm ideas and optimize SEO.