How to apply the triple bottom line framework in a small business

 

In today’s business world, success isn’t just about making money, it’s also about how a business impacts people and the planet. This is known as the triple bottom line (TBL).  

By adopting the TBL framework, small and medium-sized enterprises (SMEs) can measure success by considering:  

How to apply the three triple bottom line pillars in your business  

1. Profit: Building a financially sustainable business 

Profitability is key to running a successful business. To fully benefit from the triple bottom line approach as a small business, you should look to balance ethical and sustainable practices with strong financial performance:  

Reduce costs 

You can control your direct costs through actions such as negotiating better rates with suppliers to get the best deals and optimising your inventory management to avoid waste and damage. 

You should also look to reduce your operating expenses such as rent, utilities, and office supplies. Simple steps include using co-working spaces instead of running your own full office, working from home, switching to LED lights, and turning off equipment when not in use. 

Finally, embracing technology such as software can help to streamline your operations by automating processes and improving accuracy.   

Access funding and tax incentives 

There are several funding and tax initiatives for green and sustainable business practices.  

You can apply for various Government and private sector loans and grants, and tax reliefs include 100% first-year relief on investments in energy-saving equipment including electric vehicles. 

For more tips on finding and applying for grants, read this guide. 

Ethical growth  

When growing your business, you should focus on ethical growth. This means delivering long-term value over short-term profits by considering sustainable and ethical business models. 

2. People: Strengthening your workforce and community 

A business thrives when its employees and community benefit. Consider these steps:  

Fair wages and wellbeing programmes 

You should provide fair and competitive pay for your employees.  

There are statutory minimum and living wage rates, but consider offering the real living wage, a higher hourly rate voluntarily paid by over 15,000 UK businesses. The UK rate is currently £12.60 and £13.85 in London. If you pay it, you can be accredited by the Living Wage Foundation.  

Providing flexible working options to workers can benefit them personally as well as benefiting your business. It can help your business to retain existing staff and attract new ones, with studies showing that it can also boost productivity. 

Other potential staff benefits include free snacks and drinks, discounts on leisure activities and access to physical and mental health advice. 

Diversity and inclusion 

Creating a diverse workforce with people from different backgrounds, cultures and lifestyles has many benefits to businesses and employees.  

Think about the different ways you can recruit staff to ensure you have a diverse workforce. As well as traditional methods like job ads and recruitment agencies, you could also use social media platforms and partner with organisations that provide employment opportunities to underrepresented groups. 

Once you’ve got a shortlist of candidates, think about your approach to interviews. A traditional in person face-to-face interview may not work for everyone, so consider other methods like video calls or challenge days when you get groups of potential staff together to carry out tasks.  

Engage with the local community  

Building relationships with your local community demonstrates your commitment to TBL.  

You can do this with a corporate social responsibility strategy, such as supporting local charities through donations and fundraising events and sponsoring community gatherings like school fetes.  

Employing apprentices allows you to support the development of local young people, and nurture skilled employees in your business. Read our guide to apprenticeships. 

3. Planet: Reducing environmental impact 

Sustainable practices aren’t just good for the planet; they can also be good for business. Here’s how SMEs can reduce their environmental footprint:  

Energy efficiency 

Switching to more efficient energy methods can reduce your environmental impact. Examples include using LED lighting, renewable energy, and smart heating systems.  

Other steps you can take are switching appliances such as dishwashers and printers to eco mode, turning off electrical equipment when not in use and installing double glazing and insulation to reduce unnecessary heat loss. 

Sustainable sourcing  

Consider sustainability when selecting suppliers and choose those with ethical and eco-friendly practices.  

Ways to review their credentials include checking if they’ve been audited by standards such as ISO 14001, is a member of schemes like Green Mark and World Fair Trade Association and has accreditation from environmentally friendly product initiatives like Soil Association and Global Ecolabelling Network. 

Waste reduction 

Cutting down on waste can help to reduce your environmental impact. Look at ways to reduce packaging, improve your recycling, and introduce initiatives such as car sharing and bike schemes.  

Practical steps to implement TBL in your small business 

Here are steps to take to implement the triple bottom line framework across your business.  

Assess your current impact 

To work out your current impact, conduct an audit to understand your profit, people and planet status. This will help you understand where you are and where you need to be.   

Set measurable goals 

To track your progress, set business goals. These goals should be measurable and realistic, such as reducing energy use by 20% in a year.  

As we explain in this guide, a good formula is the S.M.A.R.T system. This stands for: 

For sustainability objectives, you could link them to the United Nations’ 17 Sustainable Development Goals. 

Monitor and report progress  

Regularly track progress towards your goals to ensure you stay on track. If things are going well or you need to do more, adjust the objectives appropriately. 

To help you monitor goals, create key performance indicators (KPIs). There are tips on financial KPIs here. 

There are various digital tools you can use to measure your progress on sustainability and community benefits including environmental, social, and governance (ESG) platforms and carbon footprint calculators.  

The SME Climate Hub has a free tool for creating annual greenhouse gas emission reports and track your reduction efforts. 

Engage stakeholders 

Objectives work best when everyone affected is involved so include employees, customers, suppliers and other stakeholders in your triple bottom line efforts. Giving staff a say helps to keep them motivated and know that they play a key role in your business achieving its aims. 

Promoting your ethical business model in your marketing can also be beneficial for sales because it can encourage people to buy your products or service because they fit with their own personal values.  

Success stories: UK SMEs applying TBL 

​There are many SMEs successfully implementing the triple bottom Line framework. Examples include: 

How TaxAssist accountants can help  

Balancing profit, people, and planet can be challenging, but you don’t have to do it alone. TaxAssist Accountants helps SMEs with:  

 Get in touch today to find out how we can help your business grow sustainably. 

Last updated: 2nd May 2025