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ACCA Applied Knowledge · Business and Technology · Environmental and sustainability factors

Which of the following best describes the 'triple bottom line' approach to sustainability reporting?

The triple bottom line means reporting an organisation's social, environmental and economic performance together, often called people, planet and profit. It extends reporting beyond financial results so stakeholders can judge the wider impact of the business, not just its profit.

  1. AReporting profit, liquidity and gearing as the three key financial measures
  2. BReporting on social, environmental and economic performance alongside each otherCorrect
  3. CReporting to shareholders, lenders and regulators in three separate reports

Explanation

The triple bottom line, often summarised as people, planet and profit, widens performance reporting beyond financial results to include social and environmental outcomes. The first option lists financial measures only, and the third confuses it with audience-based reporting.

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