Much has been written about the “Triple Bottom-Line” since the term was coined in the mid-1980’s.

A lot has changed since then. Four decades later, society continues to face existential threats, from climate change and social engineering to geopolitical polarization, pandemics unlike any we’ve seen before, and a sharp rise in violence in what we perceived as the most peaceful and safe communities.

The general goal of a sustainable business strategy is to positively impact the environment, society, or both, while also benefiting shareholders, but until now, the tensions between profitability and progress when it comes to a more equitable and peaceful society have left too many Triple Bottom-Line initiatives unrealized.

The triple bottom line is a business concept that suggests businesses should commit to measuring their social and environmental impact—in addition to their financial performance—rather than solely focusing on generating profit, or the standard “bottom line.”

This has evolved into ESG (Environmental, Social, and Corporate Governance), which is an approach to investing that recommends taking environmental, social, and governance issues into account when deciding which companies to invest in. ESG now forms the bedrock of most sustainable investing processes.

Those of us at Genesis who continue to build a platform for supporting innovative companies whose potential to change the game is significant appreciate the metrics that have emerged from Triple Bottom-Line to ESG and turn to those metrics in our decision-making processes.

The triple bottom line can be broken down into “three Ps”:

1. Profit
2. People
3. Planet

In a capitalist economy, a firm’s success most heavily depends on its financial performance, or the profit it generates for shareholders.

In the past, many firms’ goals have solely focused on economic growth. Now, purpose-driven leaders are discovering they have the power to use their businesses to effect positive change in the world without hampering financial performance. In many cases, adopting sustainability initiatives has proven to drive business success.

When it comes to people, traditionally, businesses have favored shareholder value as the success driver and measurement.

As businesses have increasingly embraced sustainability, they are continuing to shift their focus toward creating value for all stakeholders impacted by business decisions, including customers, employees, and community members.

When we consider an investment in a company, we drill down into how the company is making an impact on people, include ensuring fair hiring practices, ensuring equal pay for equal work, and encouraging volunteerism in the workplace. We also explore how companies are forging successful strategic partnerships with nonprofit organizations that share a common purpose-driven goal.

When it comes to the planet, we assess how companies are committing to net-zero carbon emissions. Since the birth of the Industrial Revolution, large corporations have contributed a staggering amount of pollution to the environment. While awareness and programs are growing more popular, a recent report by the International Energy Agency found that the global energy industry released 135 million tons of methane into the atmosphere in 2022. Adjustments like using ethically sourced materials, cutting down on energy consumption, and streamlining shipping practices are steps in the right direction toward long-term sustainability.

Proof Positive: Innovative companies have shown time and again that it’s possible to do well by doing good.

In our work with startups, we’ve proven over and again that it is entirely possible to do the right thing and make money at the same time. In fact, we support startup entrepreneurs who understand, as we do, that solving the world’s problems presents trillions of dollars’ worth of economic opportunity.

We’d love to hear what you think, and to see what you are seeing out there in the real world. We’re always on the lookout for inspired entrepreneurs and teams who genuinely seek to do all they can to improve life on the planet, while measuring and managing their company’s own practices in responsible and sustainable ways.

Our bar is high, but so are the stakes.

If you admire a company that fits our criteria, let’s engage! Share here.

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