Triple bottom line (TBL)

The triple bottom line (TBL) is an accounting framework that considers three dimensions of performance: social, environmental (or ecological), and financial. It recognizes that businesses have impacts and responsibilities beyond just generating profit. The three dimensions, often referred to as the ”3Ps,” stand for People, Planet, and Profit.

– People: The social dimension of the triple bottom line focuses on the well-being of people, both within and outside the organization. It encompasses factors such as labor practices, human rights, employee welfare, diversity and inclusion, community engagement, and social equity. Companies that prioritize the ”people” aspect strive to create positive social impacts and contribute to the betterment of society.

– Planet: The environmental dimension of the triple bottom line addresses the impact of business activities on the natural environment. It involves considerations such as resource consumption, waste management, pollution control, greenhouse gas emissions, biodiversity conservation, and sustainable use of natural resources. Businesses that emphasize the ”planet” aspect aim to operate in an environmentally responsible and sustainable manner.

– Profit: The financial dimension of the triple bottom line focuses on economic performance and profitability. It recognizes that businesses need to be financially viable to sustain their operations and create value for shareholders. While profit is an essential aspect, it is viewed within the context of social and environmental responsibilities. The goal is to achieve long-term profitability while simultaneously considering the well-being of people and the planet.

Key Matters and Considerations in ESG

The triple bottom line framework encourages organizations to take a holistic approach to decision-making and performance evaluation. It acknowledges that economic success should not come at the expense of social and environmental well-being. By integrating social and environmental considerations into their business practices, companies can achieve sustainable growth, enhance their reputation, attract socially conscious investors, and contribute positively to society and the environment.

The concept of the triple bottom line has gained significant traction in the field of sustainable business and corporate social responsibility. It provides a framework for organizations to measure and communicate their impacts beyond financial metrics, promoting a more comprehensive and balanced approach to business success.

About GreenCo

GreenCo is a professional ESG advisory firm accredited with ISO 9001 in ESG Reporting and Climate Policy Advisory Services. Established in 2016, we were born to tackle ESG and climate risk management challenges. GreenCo has a professional team consists of talents with multiple backgrounds with

  • PhD
  • Practitioner Member of the Institute of Environmental Management and Assessment (IEMA)
  • CFA (the CFA Institute) and Certificate in ESG Investing
  • EFFAS Certified ESG Analyst (CESGA)
  • Completion of Certified GRI Training Programme
  • Certified Public Accountant (for assurance in accordance with ISAE 3000)
  • Member of Global Association of Risk Professionals
  • Master’s degree in envirnomental science

GreenCo has solid track record in ESG advisory for over 60 listed companies in Hong Kong, Mainland China, Singapore and Korea, covering all industries under the Hang Seng Industry Classification System.

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