The “Triple Bottom Line” origin

The term “triple bottom line” was coined in 1994 by the environmental consultant, John Elkington, while looking for new language to express what he saw at the time as an inevitable expansion of the environmental agenda. He felt that the social and economic dimensions of the agenda – which had already been flagged in the Brundtland Report – would have to be addressed in a more integrated way if real environmental progress was to be made with special reference to the business environment.

The TBL, as described and presented by Elkington and his team, “focuses not just on the economic value a company or project add, but also on the environmental and social value they add – or destroy. At its narrowest, the term ‘triple bottom line’ is used as a framework for measuring and reporting corporate performance against economic, social and environmental parameters. At its broadest, the term is used to capture the whole set of values, issues and processes that companies must address in order to minimize any harm resulting from their activities and to create economic, social and environmental value. This involves being clear about the company’s purpose and taking into consideration the needs of all the company’s stakeholders – shareholders, customers, employees, business partners, governments, local communities and the public.”

“The three primary value drivers, economic, environmental and social could be considered as “continental plates” that are not stable; but  in constant flux, moving independently from each other due to social, political, economic and environmental pressures, cycles and conflicts.”(4).

The TBL concept took off during the late 1990’s to a point where PricewaterhouseCoopers published a survey of 140 U.S. corporations in 2003, arguing that companies that ignore the triple bottom line are "courting disaster." The triple bottom line, PwC concludes, "will increasingly be regarded as an important measure of value."(5)

An increasing number of Fortune 500 companies now table their annual reports taking cognizance, through separate analysis and reporting, of the corporation’s contribution to relevant aspects of the TBL within their sphere of operation.