Shortcomings of a Triple Bottom Line Mentality

The big talk of businesses' goal to achieve sustainability revolves around the idea of the triple bottom line. The triple bottom line is an accounting principle that takes beyond the idea of just mere profit. It also include the ideas of measuring the impact on the planet and people. Thus, a business that is able to manage all three aspects well, is considered a sustainable company. It's especially useful for (social) investors to understand businesses' social impact and value.

Although useful, there is a problem with this triple bottom line mentality - it's not actually sustainable. The triple bottom line is, as mentioned above, an accounting principle that gives businesses an incentive to cut down on C02 emissions, amongst other forms of pollution, and produce some sort of value to society (e.g. women empowering jobs). However, such an attitude should not be considered sustainable. Slapping on "sustainable" to business just because they can manage the triple bottom line is greenwashing. If they were to be more transparent, they'd be able to call themselves "responsible" at best. Business need to better strive for true sustainability by measurements based on the Circle Economy concept.

Although the triple bottom line represent huge strides toward a sustainable economy, it only goes halfway and should instead be labeled as "responsible." It is only by setting the goal towards creating a Circle Economy, and achieving that goal, that a company could then call itself a "sustainable business."