Intended learning outcomes: Produce an overview on Corporate Social Responsibility (CSR). Present in detail the integrated profit and loss statement (IPL) of Holcim Global.
The awareness from various stakeholders for Triple-Bottom-Line (TBL) thinking and acting becomes evident when looking at the increasing effort of multinational corporations related to Corporate Social Responsibility (CSR). Sustainability reporting can be misused to “greenwash” the image of a company. To prevent this, reporting reqires transparency, completeness, relevance, and auditability. See here also [SuRi16].
A current example from industrial practice for the above mentioned method of “full costing” is the integrated profit and loss statement (IPL) of Holcim Ltd. [Holc22], one of the global market leaders in the building materials industry (cement, concrete, aggregates and asphalt). Holcim has been listed in the Dow Jones Sustainability Index for more than 10 years. The aim of this index is to track the financial performance of best-in-class companies worldwide. It examines economic, environmental and social criteria with a focus on long-term value for stakeholders. Holcim's IPL was first used in 2014 with an effort to quantitatively measure TBL. Fig. 3.3.6.1 shows the IPL as a waterfall representation. This lists the various indicators that contribute to TBL.
Fig. 3.3.6.1. The integrated profit and loss statement (IPL) of Holcim Global [Holc22].
In [Holc22], Holcim mentions that “Triple bottom line can be used to assess opportunities beyond compliance”, whereby it mentions “compliance with governance, social and environmental requirements and standards”. In essence, IPL emphasizes the goal of continuously striving for sustainability and measuring progress over time. Moreover, IPL can already be used to “to identify where 1 US dollar invested would bring the highest societal return”.
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.
