Outline:
1. Triple Bottom Line (TBL)
- Background – what is the goal? What does it aim to achieve?
- Why do corporations use it?
- What are the strengths of the model?
- What are the limitations?
- In practice, the TBL often appears to favour the economic dimension, with the social or ecological dimensions considered as an afterthought rather than being given equal weighting at the beginning.
- What are the underlying assumptions of the framework?
- TBL was developed by John Elkington in 1994 – at a time when the concept of “sustainability” was gaining increased attention.
2. Sustainability
- Varying definitions of “sustainability” – for example Al Bartlett states “what does it mean to be “socially sustainable” and “environmentally sustainable”. Is it possible to have one without the other?
- Political leaders and corporations have various measures which promote “sustainability” – Eg. “Sustainable growth” – however is this really possible when both seem to be at conflict with each other?
- Unfortunately, sustainability is often defined using economic and political assumptions.
- Can the TBL help to achieve sustainability?
- for whom?
- for how long?
- at what level?
- The concept of sustainability has received widespread attention due to the increasing prevalence of global problems – according to Jackson there are two critical factors that limit our capability to live well: the increasing global population and the finite nature of resources
3. Population Growth, Depletion of Resources
- The world today is being challenged by many of the same issues that once destroyed ancient empires – the main difference is that the challenges we face today are global rather than region in scale.
- Diamond’s concepts – 5 point framework
- Current state (6B people):
- The richest 20% of the world’s population 75% of the total global income while the poorest 20% have to live on only 1.5%.
- (Get % of global population living in poverty)
- Future state (9B people):
- Another 2.6B people are predicted by 2050. The proportion of the world’s people living in less developed countries will increase from 80% in 2000 to 88% in 2050.
- We barely have the resources to support our current global population, what will the scenario look like with 9B people? How are we going to support 9B people?
- One of the serious consequences associated with population growth is the depletion of resources.
- Water shortages, over-fishing, depletion of oil reserves etc.
4. Economic Model, Capitalism
- In a capitalist system, economic growth benefits the rich more than the poor:
- The capitalist system has lead to structural inequality in which at the very top, there are thousands of billionaires who control many of the world’s largest corporations. At the very bottom there are tens of millions of labourers, child slaves etc.
- The Economic Model is driven by:
- Exploitation of natural resources
- Growth and innovation (novelty, creative destruction)
- Consumption. (Consumption drives growth, growth and technological progress drives consumption).
- Productivity – the global economic system has been designed to increase productivity and profits – not to redistribute wealth or protect the environment. (Also mass production).
- Annie Leonard: Extraction, Production, Distribution, Consumption & Disposal = “Materials Economy”
- It is a linear system – however we cannot run a linear system on a finite planet. The industrial system we have today is linear: it is focused on making a product and getting it to a customer quickly and cheaply without considering much else.
- A linear, one-way cradle-to-grave model. Resources are extracted, shaped into products, sold and eventually disposed of in a “grave” of some kind, usually a landfill or incinerator. Cradle-to-grave designs dominate modern manufacturing. Sometimes it is often cheaper to buy a new version of even the most expensive appliance than to have it repaired. Many products are designed with “built-in-obsolescence,” to last only for a certain period of time, to allow – and to encourage the customer to get rid of the item and buy a new model.
- Although the Industrial Revolution has undoubtedly produced significant scientific and technological advances which have enabled living standards to rise, Industrialisation has come at a cost – to the environment.
- The “mechanistic and materialistic” worldview of the Industrial system has produced a consumer society in which natural capital is converted into manufactured and financial capital without taking into account environmental or social costs.
- Industrial capitalism is unsustainable is because it is organised by a belief system that does not recognise the need for limits – limits on environmental exploitation, limits on economic competition and limits on social inequality. Industrial capitalism is like a car that has an accelerator but no brakes.
5. What needs to be done?
- Not a condemnation of the Triple Bottom Line – but critiquing and asking new questions.
- Tim Jackson suggests we need to re-think our economic model and our definition of “prosperity”.
- In order for a global economy to be sustainable, it must be able to accurately determine the real costs and benefits of human and biophysical activities.
- This involves re-assessing the underlying assumptions of the Triple Bottom Line – perhaps corporations need to think of this framework as the “Triple Top Line” whereby concerns are addressed upfront rather than returning to them after the fact. – Often a project that begins with pronounced concerns of Ecology or Equity (How do I create habitat? How can I create jobs?) can turn out to be tremendously productive in ways that would never have been imagined if you’d started from a purely economic perspective. –McDonough & Braungart.
- We also need to re-assess the assumption that the GDP is the ideal measure of economic activity. (The GDP essentially ignores the Social and Environmental dimensions of the Triple Bottom Line).
- We need to recognise that financial and ecological sustainability are intimately linked.
- Instead of treating the environment as external to the economy as a place where we extract raw resources and dump waste – we will have to recognise that the economy is a subsystem of the environment. This involves changing our worldview: in reality the environment is not outside and separate from the economy; the economy is inside of and a part of the environment.