 |
|
|
|
|
|
|
|
|
|
|
 |
 |
 |
|
|||||||
 |
 |
 |
 |
 |
 |
 |
 |
|
||
The triple bottom line
Promoting social, economic and environmental well-being in local communities is the goal for local government, according to the Local Government Act 2002. But how can local authorities measure whether the services that they provide actually contribute meaningfully to that goal?
Producing a sustainable development report (SDR) has proven to be a valuable way for successful businesses and other organisations to identify the economic, environmental and social issues and impacts of their operations.
Environmental, social, and financial SDR, sometimes known as triple bottom line reporting, is the process of collecting and publicly presenting information describing a company’s environmental, social, and financial performance. SDR provides a clearer picture than traditional isolated financial reporting of a company’s long-term viability. It highlights areas where performance can be improved and reveals areas where new opportunities can be developed. SDR is much more than just a report – it is an overall approach that delivers real improvements in an organisation’s economic, environmental and social performance.
“Although producing such reports can be resource-intensive, organisations that make a commitment to be a sustainability reporter are rated above their peers. Their ability to respond to risks facing their organisation and their commitment to the long-term survival of their business are qualities that are highly regarded by both community and market alike,” the New Zealand Business Council for Sustainable Development says.
“Business does not operate in a vacuum, and companies that embrace sustainable development are finding that they have a better understanding of how their business is affected by other areas of society,” says the chairman Stephen Tindall. “SDR provides a means for publicly presenting our values and achievements, and for initiating dialogue with stakeholders. The shared understanding that can result from the SDR process has many positive spin-offs for business.”
Many of the methods and practices that successful businesses use can be applied to the work of local government. Triple bottom line reporting (SDR) is one of these. It can assist councils and their communities to assess whether the services, policies and decisions of local government do concretely contribute to achieving the goals of social, economic and environmental well-being.
While local government reporting in New Zealand requires an element of coverage of service provision, which is a step on the way to a holistic SDR, two local councils, Christchurch City Council and Waitakere City Council, have moved to comprehensive reporting. Organisations such as City Care and Centre Port NZ, which provide services to councils, have also published comprehensive reports.
Since embarking on our project of producing reports that more accurately reflect the impact City Care has as a business, staff have become far more adept at addressing financial performance issues in ways where social and environmental outcomes are improved at the same time” says Richard Lauder, chief executive of City Care Ltd.
The New Zealand Business Council for Sustainable Development is an Auckland-based coalition of around 50 leading businesses with a shared commitment to sustainable development. It is a partner organisation to the World Business Council for Sustainable Development, which is an alliance of 170 international companies from more than 30 countries.
In 2002 the New Zealand Business Council for Sustainable Development (Business Council) with the support of the Ministry for the Environment produced a guide outlining the business case and guidelines for Sustainable Development Reporting.
The Business Council guide can be downloaded from www.nzbcsd.org.nz/sdr. It discusses how to produce a sustainable development report, and provides examples of the approaches, indicators, benefits and structures of a number of New Zealand organisations. This guide also draws on the work of the World Business Council for Sustainable Development and provides insights into the drivers for SDR, developing a business case, and international trends in the value of reporting environmental and social as well as economic performance to many stakeholder groups – including the financial community. Finally, the guide also provides suggestions for stakeholder engagement and the use of the Global Reporting Initiative (GRI) reporting framework.