triplebottomline

Triple bottom line is a framework for evaluating an organization’s performance across three dimensions: economic viability, social equity, and environmental stewardship. It invites businesses to consider their profitability alongside their impacts on people and the planet, framing success as a balance of financial results, social responsibility, and ecological sustainability.

The term was coined by John Elkington in 1994 as a way to rethink traditional reporting. It gained prominence with the broader sustainability movement and has since influenced corporate reporting standards and governance practices. The concept does not prescribe a single metric; instead, it encourages organizations to develop metrics and targets for each dimension and to communicate trade-offs and outcomes to stakeholders.

Measurement and reporting are uneven and challenging. Economic results are familiar, but social and environmental indicators vary in scope and data quality. Frameworks such as the Global Reporting Initiative (GRI), the Sustainable Accounting Standards Board (SASB), and integrated reporting help align disclosures, though there is no universal standard. Some organizations embed the three dimensions into strategy, risk management, and decision-making rather than treating them as add-ons.

Critics argue that the triple bottom line can be vague, ambiguous, or susceptible to greenwashing if not anchored to transparent metrics and governance. It is also possible to optimize one dimension at the expense of another. Despite criticisms, the concept remains a common lens for guiding sustainable business decisions and stakeholder engagement.