Intended learning outcomes: Produce an overview on the concept of the triple bottom line.
Triple bottom line refers to measuring success of today’s business activities not only in economic terms but also according to environmental and societal criteria, with the aim of “full cost accounting” (see, for example, [GRI02], [WiLe09]).
The annual performance of an organization in the economic, environmental, and social areas may be reported to the public and its impact on its surroundings evaluated. Figure 3.3.1.1 illustrates the concept with the three areas, which are also called the “three pillars of sustainability.”
Fig. 3.3.1.1 The concept of the triple bottom line is based on the three pillars of sustainability — namely, economy, society, and environment, which interact with companies (see [ScVo10]).
From the point of view of industry, the three pillars may be defined as follows:
- Environmental aspects (ENV) refer to nature as a closed system, with its limited resources and regenerative capacities (e.g., for greenhouse gases) as a base for any business activity.
- Social aspects (SOC) refer to society represented by governmental organizations (GOs), nongovernmental organizations (NGOs), individuals, employees, and customers.
- Economic aspects (ECO) refer to events and developments relevant to manufacturing industries’ competitiveness and their strategic and operational business practices.
The three aspects influence the development of each interdependently. Industry was affected in different ways, depending on the specific importance of each aspect as it changed over time. Every business activity, company, industry, supply chain, and economy is dependent in some way on the availability of (often limited) resources. Companies’ competitiveness is affected by these conditions and thus by the three pillars of sustainable development. Performance indicators such as quality, costs, delivery reliability, and flexibility undoubtedly remain relevant, but their importance has to be evaluated as the conditions, under which businesses operate, aim toward sustainable development.
Continuation in next subsection (3.3.1b).
Course section 3.3: Subsections and their intended learning outcomes
3.3 Sustainable Supply Chains
Intended learning outcomes: Explain the changing concept of sustainability with reference to the triple bottom line. Disclose economic opportunities for social commitment and for environmental commitment. Describe energy management concepts and measures for improved environmental performance. Produce an overview on the measurement of the environmental performance. Present social and environmental dimensions in industrial practice.
3.3.1 TBL — The Triple Bottom Line
Intended learning outcomes: Produce an overview on the concept of the triple bottom line.
3.3.1b The Changing Concept of Sustainability with Reference to the Triple Bottom Line
Intended learning outcomes: Present the paradigm change that correlates to the evolution of sustainability aspects and their interaction.
3.3.2 SCoC — The Supplier Code of Conduct: Economic Opportunities for Social Commitment of Sustainable Supply Chains
Intended learning outcomes: Disclose the term “double bottom line”. Produce an overview on ethical standards, or code of conduct (CoC). Differentiate between groups of company-internal ethical standards and groups of company-external ethical standards. Present the supplier code of conduct (SCoC) and the certificate of compliance.
3.3.3 Energy-intensive Industries — Using Waste From Other Industries: Economic Opportunities for Environmental Commitment of Sustainable Supply Chains
Intended learning outcomes: Produce an overview on energy-intensive industries. Disclose examples of using alternative fuels and raw materials in order to decrease the carbon footprint and the amount of fossil fuels required in the cement industry.
3.3.3b Proactive Environmental Involvement: Economic Opportunities for Environmental Commitment of Sustainable Supply Chains
Intended learning outcomes: Differentiate between opportunities and threats favoring proactive and reactive environmental involvement.
3.3.4 Energy Management Concepts Using Triple Bottom Line (TBL) Thinking
Intended learning outcomes: Describe energy management in production systems. Differentiate between energy-aware manufacturing processes and integrating energy efficiency in production information systems.
3.3.4b Industrial Symbiosis, and Measures for Improved Environmental Performance Using Triple Bottom Line (TBL) Thinking
Intended learning outcomes: Produce an overview on major aims of industrial symbiosis. Present measures such as enhanced utilization of wastes, the recovery of medium and low temperature waste heat, and the framework for alternative fuels and resources.
3.3.5 The Measurement of the Environmental Performance of Sustainable Supply Chains
Intended learning outcomes: Produce an overview on ecoefficiency. Describe an indicator system for the costs, quality and delivery, and environmental impact performance dimensions.
3.3.6 CSR and IPL Statement — Social and Environmental Dimensions of Sustainable Supply Chains in Industrial Practice
Intended learning outcomes: Produce an overview on Corporate Social Responsibility (CSR). Present in detail the integrated profit and loss statement (IPL) of Holcim Global.
