'Deviants are entrepreneurs who are marginalized because they challenge the status quo, or 'business as usual.'
Interview with Mawuena Tendar and Lara Pagnier, founders @Standard Deviation
For this new edition of Both, we are very pleased to spend some time with Mawuena Tendar and Lara Pagnier, founders of Standard Deviation, to talk about regenerative business.
Standard Deviation helps a new generation of impact-entrepreneurs move from fringe to mainstream, and supports business leaders in understanding the transition towards an economy within planetary boundaries.
Can you share a bit about the history of Standard Deviation and both of your backgrounds?
Mawuena Tendar: Lara and I have a unique professional history, having known each other for over 15 years. We first met in graduate school and have been working together in various capacities ever since. Much of our collaboration took place in the U.S., where we each spent nearly a decade. We worked together at faberNovel, a digital innovation agency, managing their US studios. Along the way, we had an epiphany about the severity of the ecological crisis, which led us to reconsider our roles. We asked ourselves, "What is our responsibility?", understanding this as our 'ability to respond'.
We decided to use our extensive network and expertise to help business leaders and entrepreneurs understand the emerging new economy and be a part of it, focusing on ecological transition. Our mission became to help existing business giants to reorient to address our environmental and social crises, and to also support impact-driven entrepreneurs to become the new standard. That's how Standard Deviation was born, and we remain particularly focused on industries that rely on natural ecosystems, like food, fiber, and textiles.
How do you describe a 'deviant'?
Mawuena Tendar: In this context, a 'deviant' is immediately recognizable. These are entrepreneurs who are marginalized because they challenge the ‘business as usual’ status quo. They make choices that seem to contradict the established norms, even to investment funds who purport to be looking for “disruptors”. What binds them is their will to outside and beyond existing systems and to introduce new ones.
Lara Pagnier: For some, the term 'deviant' may carry an edgy or negative connotation. But in sociology, deviance designates any behavior that is against the norm, even when positive.. When you attempt zero-waste shopping, for example, you deviate from the norm – and it’s very hard! Our entrepreneurs identify with this; they are 'troublemakers' in a very positive sense, deviating from a “business norm” that is clearly leading to collapse.
Mawuena Tendar: These individuals will knowingly complicate their lives out of conviction. It's not always an intellectual decision; sometimes it's intuitive. They understand the systemic stakes and realize that a profound transformation is needed. It's not just about making a greener product; they question everything from governance to HR to marketing. They have a holistic approach.
What is at the core of your support for these "deviant" companies?
Lara Pagnier: Our support revolves around three main pillars and a nascent one around investment. The first centers on mstrategic narrative and marketing; companies often have to rebuild entire ecosystems or value chains and offer new language because they're pioneering in areas like bio-waste or moss-based green roofs. The second pillar focuses on partnering with large corporations, helping them integrate transformative solutions into their supply and value chains. The third pillar is about advancing the company’s impact roadmap. Many of these companies have gaps in their impact goals and we help them to fill these in. This could entail anything from rethinking their future offerings to new governance or ownership structures.
Mawuena Tendar: The fourth emerging pillar is investment. We've been doing informal matchmaking, helping entrepreneurs find the right investment, at the right time and place. We also assist them in preparing their impact KPIs and being a sounding board throughout the investment cycle.
You mentioned the term "regenerative business," what does it mean for you?
Mawuena Tendar: First, we should issue a warning about the risk of greenwashing with the term "regenerative business." There's a backlash around its indiscriminate use. The underlying question is, is a genuinely regenerative business possible? Can a business help bend the curves of the climate crisis ? Can a business help build back biodiversity ? Can it reduce social inequalities ? Can a business be good news for Humanity ?
We believe the concept is powerful because it offers a new view and enables companies to strive towards a paradigm shift. We do not have to accept living in a society where companies systematically degrade ecosystems. Business should be part of the solution, and aspire to address the crisis we’re facing and bending our trajectory towards regeneration. It’s a powerful concept to set a new vision, and probably should not be used as a claim.
Are we be born deviant, or can we become one? Can we break out of the standards, or do you think salvation will only come from a new generation of companies that will create this new standard? Is a real transition possible?
Mawuena Tendar: This is a complex question, and one that we also grapple with. We believe any company can course-correct to contribute to ecosystem health. Take Interface, a leading B2B carpet manufacturer. Their CEO had an epiphany about the pollution they were causing, set a 20-year plan to zero impact and has shown remarkable success. This shows that billion-dollar businesses can change course. We also see the emergence of new businesses focusing on ecosystem health. In many ways it's easier to invent a new world when you aren’t anchored in the old one. This is why we focus on aiding entrepreneurs and deviants – it speeds up execution.
Lara Pagnier: Existing companies have a huge role to play. The message from Interface is that if you have the will, you can change. These companies have capabilities, capital, and credibility. Our role is to create as many bridges as possible between the ‘standard’ corporate world and these ‘deviant’ ventures.
What is your vision of the role of financiers in this transition, and how can they play their part?
Lara Pagnier: The financial sector has immense power and immense responsibility, especially in regions where business outweighs politics. Funds need to rapidly transition from reinforcing extractive models to promoting regenerative ones. Many continue to make contradictory and counterproductive investments. Patience is crucial in capital investment, especially for companies that are genuinely working to shift behaviors and reorient markets. Performance metrics need to be diversified, financial expectations need to be realistic, and ‘externalities’ need to be appropriately internalized. Lastly, while many “impact” funds claim to offer operational support, this support may lean too far toward “business as usual”, and not push far enough toward a regenerative objective.
Mawuena Tendar: These disruptive companies need specific kinds of investment support. Founders are aware of the potential pressures and constraints inherent in typical VC funding models, and are becoming increasingly intentional about how they finance their companies.
Standard Deviation also defines itself as a "business activist." What does that mean? Do investment funds also have a role to play in this?
Mawuena Tendar: The term "business activist" resonates with us because it combines our background in business with activism, and challenges us to remain true to our cause. One way we embody this is by making as much of our content and methodology freely accessible to all. Our hope is that by making our adventure open-source, we can help propagate the culture of open and free contribution that is taking hold in the deviant community. Secondly, we aren’t in the business of simply clients what they want to hear. We prioritize honesty and courage, sometimes leading to uncomfortable conversations, but these conversations are essential for meaningful change. As we look forward, we’re also continually revisiting our own decision-making processes and operational structure to better align with our activist mission.