What frameworks are available for quantifying success in a Triple Bottom Line organization?
A. The most convincing argument for a corporation to pay attention to sustainability is that it will be more successful if it does. Traditionally, business success has been measured by profit and share price. The Triple Bottom Line – a phrase coined by John Elkington, founder of the SustainAbility consulting firm – acknowledges that both profit and share price can be positively impacted by paying attention to a company’s environmental and social impacts as well it’s economic / financial impacts. Unfortunately, accountants have yet to provide standard metrics for environmental and especially social impacts. It is encouraging, though, that the Balanced Scorecard provided more holistic measures of success and organizations like Innovest are leading the way on how to assess and rank leaders in sustainability in each industry sector. As mainstream institutional investment companies incorporate these considerations into their risk analysis models, better frameworks and metrics will emerge. Q
