The term triple bottom line (TBL) refers to the economic, social and environmental benefit or loss of an investment, but balancing the three can be tough for businesses.
Most consumers emotionally support the TBL benefits and are cost-conscious, while investors usually demand short-term capital repayment timelines. Many firms believe they need to ensure that the economic bottom-line is achieved before having the luxury of focusing on the broader TBL objectives.
However, in my recent role as CEO at Two Bunch Palms Spa Resort – which was being transformed into a carbon-neutral property – we were able to achieve economic, social and environmental objectives simultaneously and had the best revenue and occupancy ever.
Partnering with Pear Energy we built a 550 kW solar facility that generated the equivalent of the resort’s annual electrical needs. The capital investment generated a 10.5-12 per cent ROI through tax credits and cash payments based on a 21-year amortisation schedule. The 2015-2016 energy bill was 6 per cent less and the resort was less susceptible to public utility rate hikes. These savings flowed straight to the bottom-line and can proportionately reduce operating expenses if energy costs rise in the future.
Equally important, since 80 per cent of Two Bunch Palm’s spa-oriented target market resonated with being environmentally responsible, the brand was better aligned with its customers’ core values, which enhanced consumer loyalty.
Lastly, when the resort introduced a solar field it was able to save the equivalent of 455 trees in just eight months. In the same time, it was able to generate over 500,000 hours of electricity, conserve 14 million gallons of water and offset the equivalent of 200,000lbs of carbon from entering the atmosphere, with more environmental benefit accruing each day.
In my experience, TBL is definitely achievable and by doing good, businesses can do well by reducing operating costs, having a deeper connection with customers and helping the planet along the way.
Kevin Kelly
Email: [email protected]