Green Business and the Triple Bottom Line
If you are about to take the exciting step into launching a green business or are considering converting an existing business to more eco friendly practices; you may have heard the term “triple bottom line”.So what does it mean?
Sometimes referred to as “TBL”, triple bottom line simply stands for
People
Planet
Profit
Sounds like another fancy business jargon. But it’s actually a serious and increasingly recognised concept. Triple Bottom Line reporting is becoming an accepted way for businesses to demonstrate they have strategies for sustainable growth.
The triple bottom line is a form of reporting the impact your business has in terms of social and environmental values along with financial returns.
Triple bottom line accounting recognises that without happy, healthy people to staff a business and the natural environment able to sustain those people and supply resources for trade; business is simply unsustainable in the long run.
People
This is also known as Human Capital. It means not only treating your employees right but also the community where your business operates. In this part of the Triple Bottom Line model, business not only ensures a fair day’s work for a fair day’s pay; but also plows back some of its gains into the surrounding community through sponsorships, donation or projects that go towards the common good.
Planet
This is Natural Capital. A business will strive to minimise its ecological impact in all areas – from sourcing raw materials, to production processes, to shipping and administration.
Profit
This is more about making an honest profit than raking a profit at any cost – it must be made in harmony with the other two principles of People and Planet.
While many major corporations used to sneer at the idea of a Triple Bottom Line reporting system; some have taken the bull by the horns; with a positive flow on effect to their suppliers. Because supply chains are also accountable to the overall impact of a company, they also come under scrutiny in the triple bottom line audits. A good example of this is some big box stores “greening” up their act and in doing so, demanding that their suppliers use less packaging or banning certain ingredients from products.
Triple Bottom Line is not an award, accreditation or a certification you can achieve – it’s an ongoing process that just helps a company keep on track towards running a greener business and demonstrates to the community at large they are working not just towards riches, but the greater common good.
After all, without people and planet – there’s simply no profit to be made.
If you are a new or existing business which is currently implementing the triple bottom line in your company. GreenMe would love to hear from you.
Related posts:
- Sustainability – is it really a business concept?
- Sustainability: the new business paradigm
- Sustainability as a business strategy
- Employee innovation is the key to a sustainable business.
- Business, bees and sustainability
- Choose an ethical investment.
