How to Report the Triple Bottom Line
The most challenging argument for green activist is one of quality; that is, people argue that sustainable products are inferior to their non-sustainable cousins, i.e. a sexy sports car compared to a hunchback hybrid. Critics of sustainability also like to argue that sustainable products cost more. The triple bottom line is a measure of the effect of sustainability on a company's bottom line. While there is no set calculation for determining the 3BL, it is being used as a way to show a commitment to sustainability and social responsibility.
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Instructions
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Review the terminology. The triple bottom line, also referred to as TBL or 3BL, is a form of reporting that measures your business' impact on social and environmental issues. It provides firms with another number to be held accountable to on a quarterly basis other than pure profit.
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Determine a calculation. There is no standard way to calculate the TBL. Each company must come up with its own scoring system. The basic approach is to analyze the effect of sustainability on the the environment, human capital and profitability of the business. Next, write a detailed action plan with metrics used to determine the effect of the deployment. Finally, list the expected outcomes or improvements associated with the plan.
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Measure human capital. That is, measure the way you are treating your employees and community in which you service. It looks at pay, donations, and volunteerism in hours as an objective metric.
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Measure impact on the planet. This attempts to look at the ecological impact of the business on the planet, from raw materials and product processes, to shipping and administration. Emissions, carbon credits, and other established environmental control metrics can be used as a metric.
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Re-engineer profitability to include a cost for people and planet. Create a point system to acknowledge things like reduced packaging or banning certain ingredients from products.
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Ask suppliers to report quarterly reviews using a triple bottom line format. This not only reinforces the concept, but makes your job easier.
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