What does the term "triple bottom line" in sustainability accounting refer to?

The term "triple bottom line" in sustainability accounting refers to the three dimensions of sustainability: people, planet, and profit. This concept emphasizes that for a business to be truly sustainable, it must not only focus on financial performance (profit) but also consider its social responsibilities (people) and environmental impact (planet).

By measuring success through these three interconnected components, organizations can better assess their overall impact and strive for a balance that promotes long-term sustainability. It encourages companies to look beyond traditional financial metrics and integrate social and environmental goals into their operations and strategies, leading to a more holistic approach to business performance. This perspective is essential for achieving sustainable development and fostering a positive impact on society and the environment alongside achieving economic success.