/SUSTAINABILITY DEVELOPMENT
/TRIPLE BOTTOM LINE
Tripple Bottom Line (TBL)
Triple Bottom Line or Triple Balance refers to a company that is measured in terms of economic, social and environmental performance. Companies that are committed to sustainable development voluntarily publish all of these elements in their annual reports.
The expression Triple Bottom Line, which was coined by John Elkington in 1994, requires that companies be answerable to their group of stakeholders and not just to their shareholders.
TBL can be described using three expressions: people or human capital, planet or natural capital and profit.
By human capital we mean the reciprocal social relations established within a company and which seek to benefit the greatest possible number of stakeholders. This is achieved by avoiding unethical or discriminatory practices, such as using child labour and establishing appropriate working hours and fair wages. Companies that adopt a sustainable model also collaborate with society through education and health projects.
The reference to planet or natural capital means the benefiting of the environment or the reduction, in as much as is possible, of environmental impacts. Companies that adopt the Triple Bottom Line concept try to reduce negative environmental impacts through responsible energy use, reducing their consumption during production and avoiding the use of toxic products whenever possible.
Lastly, profit comprises the element that is common to all companies. Profit, in the context of sustainability, must be deemed to be the lasting economic impact that the organisation is able to generate in the sector in which it operates its business. This concept is not just considered to be an internal economic figure, in other words, it is not just restricted to the profit of the organisation proper.
The Global Reporting Initiative (GRI) directives are a set of indicators and recommendations that have been established in order to create a global standard for disclosing information concerning economic, environmental and social performance. A company’s adherence to these directives means that it concurs with the concept and practices of sustainability. EDP commenced reporting in accordance with GRI guidelines in 2001.
LINKS
- GRI Website: www.globalreporting.org