People, Planet and Prosperity
The triple bottom line for business sustainability and resilience
Floods, fires, droughts and heatwaves dominate news headlines, while industries have been brought to a standstill by a pandemic and the pandemonium that followed. Natural disasters are affecting local and global supply chains and the window for addressing the global climate crisis is closing fast. Drastic action is needed — tomorrow may be too late.
If the world is to mitigate the catastrophic impact of climate change, the international community must prioritise the global objectives as outlined by the United Nations and their local sustainable development goals (SDG) in place to improve ecosystems and planetary health, reduce pollution, waste and carbon emissions and increase food and water security. To succeed in these objectives there is a need to transition from policy to action, with specific focus on governance, finance and technology, as well as knowledge and capacity building to promote environmental protection and preservation.
In these endeavours, business must lead the way. The responsibility is on every individual, institution and corporation to do their part to ensure a viable and sustainable future. For this reason, sustainability must be more than just a buzzword — it must be a business goal, a corporate value and an integral part of business goals for the future.
People, planet and profits can no longer be seperated and the businesses that will thrive will be those enterprises that realise and work towards this “triple bottom line”, committing to measuring their social and environmental impact — in addition to their financial performance — rather than solely focusing on generating profit, or the standard or traditional “bottom line.”
South Africa’s energy crisis has left the country and its people in the dark, and businesses and their employees are increasing. lt is impacted by social unrest and political shortcomings. Corporate South Africa knows that waiting for state-implemented solutions is not viable — business and industry leaders must step up to become societal leaders and make the changes that the nation needs for a sustainable and resilient future.
The Triple Bottom Line
Harvard Business School (HBS) describes CSR or “the third bottom line” as the ultimate way for companies and business leaders to understand and engage with ethical corporate citizenry, good governance and sustainable business strategy.
This triple bottom line is focused on three pillars — profit, people and the planet. Business success today depends on a company’s performance in these three sectors.
The profit pillar is self-explanatory in the corporate world — businesses exist to make money and generate a profit for its shareholders. In the past, this might have been enough, but business leaders know that profit cannot exist in a vacuum and no business will thrive while the community and environment it operates in are suffering.
The next pillar is people, as defined by a company’s commitment to the community it finds itself in and its subsequent societal impact. The needs of stakeholders, not just shareholders, are not of paramount importance for business health and corporate success. This pillar — people — can be cultivated, either internally through investment into employees, or externally through outreach programmes and community engagement.
The third pillar and final bottom line is the planet, without which there would be no people and there would be no profit. Historically, big business has been one of the worst perpetrators of environmental crimes and one of the worst contributors to the climate crisis. However, the opportunity exists for them to restore the injustices of the past, drive positive change and position themselves on the right side of history.
The South African government recognises the need for increased awareness to remind citizens of the interdependence that exists among humans, other species and the planet they all inhabit.
“Climate change represents the biggest challenge to the future of humanity and the lifesupport systems that make our world habitable. In order to achieve a just balance among the economic, social and environmental needs of present and future generations, it is necessary to promote harmony with nature and Earth.”
Climate Change, Energy and CSR
Climate change is a shared societal burden and climate action is therefore a shared responsibility. Every citizen must make the fight for a better world and a brighter future a priority. Part of this is demanding that companies and institutions honour their commitment to the triple bottom line where people, planet and profits intersect to ensure prosperity for all. Corporate social responsibility is one way for companies to not just show their commitment to people and planet, but to live it too.
As of 2021, South Africa has been identified as the twelfth-biggest source of greenhouse gases in the world. This accounts for roughly half of the total greenhouse gas emissions from Africa. Climate change poses a significant risk to life and livelihoods and affects day-today business functions. For this reason, it is imperative that businesses are prepared to react and act proactively to prevent the situation from worsening.
This state of affairs has also placed pressure on CEOS and other business leaders to take a stand. Customers are no longer satisfied with companies who remain silent — and inactive — when it matters the most. Consumers are driving the conversation and driving the agenda and it is up to businesses to heed this call and remain relevant, or risk getting left behind as the world moves into the future.
The issue of energy, energy efficiency and sustainable and renewable energy solutions is not new to South Africa, and the end to the country’s power woes is not yet in sight. In October, Eskom announced that its generation capacity would remain constrained until at least the end of August — a date that is fast approaching while solutions remain elusive.
This crisis of power, coupled with the issues of climate change has pushed organisations to investigate and invest in energy efficiency, sustainability and environment-friendly solutions. For companies who want to take the step towards renewable and eco-energy solutions, the Western Cape government suggests conducting an energy audit that will help frame the challenges and highlight the steps that need to be taken to start optimising their energy use and become energy efficient.
It is also important to note that issues of climate change and sustainability have, and will continue to have, severe and lasting impacts on economic and social development. Those who are among the most vulnerable and marginalised experience the deepest consequences. Women are also increasingly being recognised as more vulnerable to the impact of climate change than men. Women constitute the majority of the world’s poor and are more dependent on natural resources most threatened by climate change. The climate crisis has amplified existing inequalities and puts the lives and livelihoods of the world’s most vulnerable populations at risk. Despite being more dependent on these natural resources, these populations have less access and often bear a disproportionate responsibility for securing food, water and fuel.
As custodians of communities and of the natural environment, business has a role to play to promote social well-being and environmental health. Business leaders must step into their position of power to empower people, protect the planet and in doing so, drive profits to ensure that no one is left behind as the world accelerates into the future.