Does the market value the environment? As active stakeholders we can start this evaluation simply by identifying if an organization is taking active steps to improve their environmental performance. The action itself, hopefully yielding positive benefits, is the key to balancing the business scorecard.
Let’s take a brief look at the concepts needed to accomplish this task and ways to stay better informed:
- “The triple bottom line (TBL) […] consists of three Ps: profit, people and planet. It aims to measure the financial, social and environmental performance of the corporation over a period of time. Only a company that produces a TBL is taking account of the full cost involved in doing business” (The Economist).
- The “life cycle analysis is a technique to assess the environmental aspects and potential impacts associated with a product, process, or service” (Environmental Protection Agency). It’s accomplished through environmental accountability, evaluation, and interpretation.
Combining triple bottom line with the concept of the life cycle analysis, an organization can look at environmental imprints at each level of the supply chain.
Let’s look at the basic supply chain to bring it full circle.
- Raw Materials => Manufacturing => Wholesalers/Retailer => Consumer
Management is able to integrate improvements at each level, maximize outputs, and conduct risk analysis. Inefficiencies can be identified and ethical decisions can be made. In some cases it can reduce regulation. Ultimately, it creates a more efficient and sustainable business model. It’s essential for the ecosystem and essential in the business environment.