What does the triple bottom line measure?

The triple bottom line measures environmental, social, and economic sustainability, reflecting a holistic approach to assessing a company's impact. This concept goes beyond traditional financial metrics by considering how business operations affect the environment and broader social issues.

The environmental aspect evaluates a company's ecological footprint, including resource use and waste production. The social component addresses the company's impact on communities and stakeholder relations, looking at labor practices, community engagement, and overall societal contributions. The economic aspect still encompasses financial performance but does so within the context of the other two dimensions.

This integrated framework encourages organizations to operate sustainably, ensuring that profit generation does not come at the expense of the planet or society. It challenges companies to create value in multiple dimensions, fostering responsible and ethical business practices that contribute to long-term success and sustainability.