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Triple Bottom Line Approach

Triple Bottom Line Approach

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Author: Yina Song
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Tutorial

Triple Bottom Line

The TBL is an accounting framework that includes three dimensions of performance: social, environmental and financial (economic)

This differs from traditional reporting frameworks as it includes ecological (or environmental) and social measures that can be difficult to assign appropriate means of measurement. 

The TBL factors are also commonly called the Three Ps: People, Planet and Profits.

Triple bottom line approach explanation

Economic Factors


Economic factors are variables that deal with the bottom line and the flow of money. It could look at income or expenditures, taxes, business climate factors, employment, and business diversity factors. Specific examples include:

  • Personal income
  • Cost of underemployment
  • Establishment sizes
  • Job growth
  • Employment distribution by sector
  • Revenue by sector contributing to gross state product

Social Factors


Social factors are the social dimensions of a community or region. It could include measurements of education, equity and access to social resources, health and well-being, quality of life, and social capital. 

The examples are:

  • Unemployment rate
  • Female labor force participation rate
  • Median household income
  • Relative poverty
  • Percentage of population with a post-secondary degree or certificate
  • Average commute time
  • Violent crimes per capita
  • Health-adjusted life expectancy

Environmental Factors


Environmental factors represent measurements of natural resources and reflect the company's sustainability. It may include air and water quality, energy consumption, natural resources, solid and toxic waste, and land use/land cover. 

Specific examples include:

  • Concentration of nitrogen oxides
  • Selected priority pollutants (substances which pollute the water)
  • Electricity consumption
  • Fossil fuel consumption
  • Solid waste management
  • Hazardous waste management
  • Change in land use/land cover

A non-profit organisation promoting Triple bottom line approach for enterpreneurs

Triple Bottom Line Approach PDF

The PDF file contains resources to study Triple Bottom Line approach (also known as Three P's) and what are the factors considered for the approach i.e. economic (profit), social (people), and environmental (planet).

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