Regenerative finance vs. traditional finance: How do they differ?

Regenerative finance and traditional finance differ in several ways, including their goals, values, and methods. Here are some of the key differences:

1. Goals: Traditional finance is often focused on maximizing short-term profits for shareholders, while regenerative finance prioritizes long-term sustainability and social and environmental impact.
2. Values: Traditional finance tends to prioritize individual gain and competition, while regenerative finance emphasizes collaboration, community, and shared value.
3. Methods: Traditional finance often relies on centralized decision-making and top-down control, while regenerative finance favors decentralized decision-making and participatory processes.
4. Measurement: Traditional finance often uses financial metrics like return on investment (ROI) as the primary measure of success, while regenerative finance also considers non-financial metrics like social and environmental impact.
5. Risk management: Traditional finance focuses primarily on minimizing financial risk, while regenerative finance also considers social and environmental risks and seeks to mitigate them.
6. Investment approach: Traditional finance often relies on a narrow range of investment vehicles like stocks and bonds, while regenerative finance seeks to diversify investment options and support innovative, community-led projects.

Overall, regenerative finance seeks to create a more sustainable and equitable financial system by prioritizing long-term impact and considering social and environmental factors in decision-making. Traditional finance, on the other hand, tends to prioritize short-term profits and financial metrics above all else.