Triple bottom line reporting is a form of corporate disclosure which supplies the standard financial disclosures together with disclosures in relation to the business operation’s impacts on society and the environment.
Initially described by John Elkington of SustainAbility, triple bottom line reporting or people, planet, profit reporting requires that businesses operate from a stakeholder rather than shareholder perspective.
Implementing Triple Bottom Line Reporting
Triple bottom line reporting is used by both governments and businesses to report outcomes; however like any corporate social responsibility activity, triple bottom line reporting needs to be adopted as part of a values based system for greater sustainability in business operations.
After the decision to implement triple bottom line reporting is made, a decision about the standards to implement must be made. Sustainability standards include the Global Reporting Initiative’s Guidelines and the UN Global Compact.
Global Reporting Initiative’s Guidelines
The Global Reporting Initiative’s Guidelines can be a useful starting point for a business wishing to implement triple bottom line reporting. The guidelines provide information and assistance on what issues to report and how to report. A template report is also provided to assist businesses to report sustainability outcomes in accordance with the reporting framework.
People Planet Profit – Measurements to be Disclosed in a Triple Bottom Line Report
Triple bottom line reports are a mechanism for companies to report initiatives and outcomes in relation to economic, environmental and societal impacts of business operations.
In relation to people or societal impacts, triple bottom line reports should consider measurements such as labour policies, diversity, participation in fair trade practices and human rights related practices in both the reporting company and its supply chain.
Planet measurements relate to environmental impact of business and can include measurements such as greenhouse gas emissions, participation in voluntary carbon offsetting, water usage and initiatives to decrease water consumption and projects which support natural biodiversity.
Financial disclosures may be part of a triple bottom line report or may be contained within a standard Annual Report.
The Benefits of Triple Bottom Line Reporting
Businesses who report sustainability outcomes have the opportunity to achieve a competitive advantage through:
- increased trust levels from consumers;
- increased credibility,
- potential to reduce cost of supplies through detailed analysis;
- potential to be viewed as a superior investment choice, and
- increased employee satisfaction and attraction of high calibre employees.
Triple bottom line reporting requires that businesses assess and address the social and environmental impacts of their operations and provides an opportunity for business to engage with stakeholders for the benefit of both parties.
Tracey Lloyd - Based in Australia, Tracey Lloyd is experienced in management & strategic development of community projects and non-profit ...
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