ECIIA has reviewed the article “Beyond the Financial Balance Sheet: Embracing the Triple Bottom Line for Sustainable Business Success” by Audrey-Flore Ngomsik and Leen Vermeersch and shared insights.
The article explores how businesses can rethink financial strategies by integrating sustainability factors alongside profit considerations.
Key Insights from the Article
The authors propose rethinking traditional financial metrics by introducing the concepts of:
- Triple Bottom Line: Encouraging companies to balance People, Planet, and Profit rather than focusing solely on short-term financial gains.
- Present Future Value (PFV): A new financial formula designed to measure long-term business success by considering environmental and social impact alongside profitability.
- Connectivity Coefficient: A scoring method reflecting how well a company contributes to sustainable development, encouraging more transparent and responsible investment decisions.
The article highlights how integrating these models can help businesses become both profitable and responsible, showcasing long-term benefits over short-term financial wins.
Sustainability must be embedded in the company strategy and operations! Internal auditors have an important role to play in this journey as advisors in the first step.