What is sustainability • A strategy by which communities seek economic development approaches that also benefit the local environment and quality of life
Is a process of achieving human development Contributed through effective management of social ,economic and environment benefits
Global Drivers of Sustainability • Increasing Industrialization • Proliferation & Interconnection of Civil Stakeholders • Emerging Technology • Effects of Globalization- poverty, inequity, population explosion
Triple Bottom Line TBL“ or "3BL",
What is TBL • An expanded spectrum of values and criteria for measuring organizational and societal success – economic, environmental, social. • In the private sector, a commitment to CSR implies a commitment to some form of TBL reporting.
The Triple Bottom Line is made up of "Social, Economic and Environmental" "People, Planet, Profit "
Triple Bottom Line Accounting • Expanding the traditional reporting framework • Take into account environmental and social performance in addition to financial performance. • Company's responsibility to 'stakeholders' rather than shareholders.
Legislation • Legislation permitting corporations to adopt a 'Triple Bottom Line' is under consideration in some jurisdictions. • The triple bottom line has been adopted as a part of the State Sustainability Strategy
What is triple bottom line reporting? “At its narrowest TBL reporting is a framework for measuring and reporting corporate (organizational) performance against economic, social and environmental parameters” www.sustainability.com A move from one dimensional economic reporting to three dimensional economic, social and environmental reporting
How is TBL reporting accomplished? Economic • Generally Accepted Accounting Principles • Customers • Suppliers • Employees Social • Bribery and corruption • Political contributions • Child labor • Security practices • Indigenous rights • Training and diversity Environmental • Energy • Water • Biodiversity • Emissions, effluents, and waste
How is TBL reporting accomplished? Through the application of what is called the Global Reporting Initiative 2002 or GRI and is defined as “a common framework for sustainability reporting”
Started in 1997 by the Coalition for Environmentally Responsible Economies and the United Nations GRI became independent in 2002, and is an official collaborating centre of the United Nations Environment Programme (UNEP) and works in cooperation with UN Secretary-General Kofi Annan’s Global Compact.
GLOBAL REPORTING INITIATIVEGRI The Global Reporting Initiative attempts to make the Triple Bottom Line operational VISION The Global Reporting Initiative’s (GRI) vision is that reporting on economic, environmental, and social performance by all organizations becomes as routine and comparable as financial reporting. GRI accomplishes this vision by developing, continually improving, and building capacity around the use of its Sustainability Reporting Framework.
How organizations strategically manageCSR through triple bottom line reporting TBL reporting enables organizations to: Measure and manage their financial and non-financial performance and impacts, or lack thereof Have their performance and impacts verified independently Communicate effectively with consumers, governments, investors, employees, other stakeholders and watchdog groups
The implementation of a TBL reporting approach to CSR is an incremental process, dealing with the complex and contestable issues involved in attempting to effectively integrate economic, environmental and social performance measurement into a single report