The Triple Bottom Line is the expression, in the form of an income statement, of the content of the Value Proposition of the Circular Business Model Canvas: value for the Market, value for the Planet and Social value.
The research on this topic is trying to find ways to practically measure the impact on social and planet indicators. But there is not one simple method that real life businesses can apply to present their Triple Bottom Line in a common framework - yet.
For those interested in learning more about this we recommend visiting the LCSA methodology.
LCSA
LCSA Life Cycle Sustainability Assessment Methodology. The LCSA methodology assesses all environmental, social, and economic impacts and benefits of products throughout their entire life cycle. LCSA combines LCA measuring Planet aspects, LCC measuring Economic factors, and SLCA measuring social elements.
LCSA = LCA + LCC + SLCA, where:
o LCA, (Life Cycle Assessment), a technique used to assess the environmental aspects associated with a product during its life cycle.
o LCC (Life Cycle Cost), a method of assessing the cumulative product cost over its life cycle (time interval between conception and decommissioning/EOL).
o SLCA (Social Life Cycle Analysis), considers the social impacts of products/services on life cycle actors: workers, local communities, consumers and society itself.
(Adapted from LCSA, Sustainn)
But for practical purposes in a real life Circular business there are many different ways of narrating the Triple Bottom Line. In the end it is all about credibility. If your customers accept your claims of circularity, and they are willing to pay extra for it, or indeed select the circular option in their shopping habits, then the narrative of the Triple Bottom Line is working.
There is always the danger of being accused of “Greenwashing” where a company tries to sell a product, or brand the company, using circular concepts, but it is not viewed as credible by the market. But all in all a circular business should always use its planet and social value indicators as a selling point.
