The Triple Bottom Line: A Sustainable Business Model
In today's world, businesses are increasingly under pressure to operate in a sustainable way. And quite rightly so...
This is due to a number of factors, including growing public awareness of environmental issues, increasing government regulation, changing consumer preferences and all driven by the data that is very clear about climate change causing catastrophic issues for humanity (but more on that another day!).
“Personally, I believe that businesses have a responsibility to work out what their negative impact is on the planet and its people and create ways to limit harm. And if that ultimately means changing their business model, investing in infrastructure, systems or processes, or having their shareholders miss out on their next dividend, then so be it.” - Cath Harris, Ipsa Consulting, Director
One way that businesses can meet these challenges is by adopting a triple bottom line (TBL) approach. The TBL is a framework for measuring a company's performance in terms of three key areas: people, planet, and profit.
People
The people pillar of the TBL focuses on a company's impact on its employees, customers, and the wider community. This includes factors such as employee satisfaction, workplace safety, fair wages, and community involvement.
Planet
The planet pillar of the TBL focuses on a company's impact on the environment. This includes factors such as greenhouse gas emissions, waste production, and water usage.
Profit
The profit pillar of the TBL focuses on a company's financial performance. This includes factors such as revenue, profit margins, and return on investment.
By adopting a TBL approach, businesses can create a more sustainable future for themselves, their employees, their customers, and the planet.
Here are some suggestions for how businesses can implement a TBL approach:
Set ambitious sustainability goals and track your progress against them.
Record carbon emissions, work out where you can reduce them - Carbon Literacy Project is an excellent place to learn how to do to this.
Make sustainability a core part of your company culture.
Invest in renewable energy and energy efficiency measures.
Reduce your waste production and recycle more.
Use sustainable materials in your products and packaging.
Support local community, local businesses and local suppliers.
Give back to your community through charitable donations or volunteer work.
There are many benefits to implementing a TBL approach in your business, including:
Increased employee satisfaction and productivity
Improved customer loyalty and brand reputation
Reduced risk of regulatory fines
Increased access to capital and investment
Enhanced innovation and creativity
Increased market share and profitability
The triple bottom line is a sustainable business model that can benefit businesses in the UK in a number of ways. If you're looking to create a more sustainable future for your business, I encourage you to consider a TBL approach.
If you’d like to learn more about how to implement this approach in your business, book a discovery call with Cath here.