October 20, 2019

What is Triple Bottom Line (TBL) concept?

  • A new framework to measure performance in corporate world which went beyond the traditional measures of profits, ROI etc to include environmental and social dimensions. 
  • An important tool to support sustainability goals.
  • It is based on the pillars – People, Planet and Profit.
  • An accounting framework that incorporates three dimensions of performance: social, environmental and financial. 
  • To measure 3 Ps – monetary value or index.
  • TBL is able to be project specific or allow a broad scope – measuring impacts across large geographic boundaries.
  • Who use TBL framework – businesses, non-profits and government entities.

3 Ps of TBL

  1. People
    1. Fair and beneficial business practices towards labour and community. 
  2. Planet
    1. Sustainable environmental practices
    2. Managing consumption of energy, reducing wastage, proper disposal of toxic waste etc
  3. Profit 
    1. Economic value created by the organisation after deducting cost of all inputs. 
    2. This aspect needs to be seen also as the economic impact the organisation has on the host society. 

Measures of TBL

  1. Economic measures – variables that deal with flow of money
    1. Income
    2. Expenditure
    3. Taxes
    4. Personal income
    5. Establishment sizes
    6. Job growth
    7. Percentage of firms in each sector
    8. Revenue by sector 
  2. Environmental measures –
    1. Air quality
    2. Water quality
    3. Energy consumption
    4. Natural resources
    5. Waste
    6. Land use
    7. Land cover
  3. Social measures
    1. Education
    2. Equity access to social resources
    3. Health and wellbeing
    4. Quality of life

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