What does the term 'triple bottom line' mean?

The term 'triple bottom line' refers to a framework that evaluates a company's commitment to sustainability by considering three key dimensions: social, environmental, and financial performance. This holistic approach goes beyond traditional profit metrics, emphasizing that businesses should seek value not only in economic terms but also in their impacts on society and the planet.

The integration of social responsibility (how a company affects its employees, communities, and stakeholders), environmental stewardship (how its operations impact the earth), and financial success together allows businesses to assess their overall impact and sustainability. This framework encourages organizations to engage in responsible practices that benefit society and the environment while also being economically viable.

By measuring performance across these three areas, companies can better understand their sustainability efforts and make informed decisions that align with broader societal goals, ultimately leading to long-term success and resilience.