Reset | 04. The 3 P’s: a catalyst for change.
Hello and welcome to issue four of Reset.
In this issue, we pose the question, ‘Why do we need an unapologetically equal bias on profit, people and the planet?’
Through a blend of foresights and carefully selected case studies, we uncover the changing face of the business landscape and the tangible benefits of the triple bottom line.
The 3 P’s ?
It’s been called the “triple helix of change for tomorrow’s capitalism”: the 3 P’s, also known as the triple bottom line (TBL), is a method of designing business models that balance economic prosperity, environmental health and social responsibility.
Balance is the operative word here, as such frameworks don’t attempt to sacrifice profitability in favour of societal or environmental impact. Instead, brands committing to the TBL simply expand performance metrics to include contributions to sustainability, social well-being and a just economy.
Take forward-thinking brands like Patagonia, for example. As well as launching campaigns to promote a circular economy, Patagonia has actively sought out opportunities within existing systems to bring about positive change:
“Patagonia announced in December 2016 that it would donate all of its Black Friday sales to environmental causes — “100% for the planet” — customers helped the company reach an impressive achievement. Instead of the approximately $2 million in sales the company said it expected, sales climbed to $10 million, which, in turn, went to underfunded grassroots environmental groups.”
Patagonia, to date, has donated 100million dollars to environmental causes. Here’s a business that has succeeded in placing People, Products and Profit at the centre of their brand strategy, driving deeper relationships with modern consumers and reaping economic benefits in the process.
Why do we need to have an unapologetically equal bias on people, profit and the planet?
It’s not a new idea — in fact, the term ‘triple bottom line’ was coined in 1994 by strategist John Elkington. But in 2022, simply highlighting the importance of sustainability is not enough. Today, a holistic approach that reconciles financial interests with social responsibility and environmental protection is essential in creating better outcomes for everyone.
Leading brands like Danone are already showcasing the communal benefits from the 3 P’s framework and a lower reliance on natural capital. In April 2020, Evian became Danone’s first global brand to certify its life cycle product through the Carbon Trust. But Danone faced a water contamination issue, due to surrounding farmlands with water runoffs containing pesticides.
So, through Evian’s watershed protection program, Terragr’eau, a biodigester was built to turn cattle manure and organic waste from the surrounding municipalities into biogas for Evian city and organic compost for fertilising local land.
The watershed program utilised a 3P framework, to create a holistic plan of action, to ensure the business continued, the product (the water) was protected, and the local catchment area still maintained healthy clean water.
The project resulted in a success. By converting hazardous raw manure to nutrition bio-solids for neighbouring farmers, they ensured the protection of the water for the present and the future.
The tangible benefits of the triple bottom line.
Colin Mayer, a professor at Oxford University, has spoken about the prosperity and future of corporations. By realigning profit intentions, Mayer says, businesses can build trustworthiness and values, resulting in “loyal customers, more engaged employees, more supportive shareholders and, ultimately, greater revenues and lower costs.”
The 3Ps & TBL acknowledge that profit is still needed to run and sustain a business. However, it places emphasis on the economic profit, rather than the business profit. After all, organisations add value to society through employment, through innovation and through taxation. And that’s what profit, in this context, should stand for.
Changing this ethos of business allows for the adoption of sustainable change; it creates an environment in which money is fed back to the planet and people. An article from The Economic Forum writes how profit and sustainability can, and should co-insist.
The only potential negative of the TBL framework can be seen when businesses start to transition. Naturally, the need for initial costs up-front to make the necessary changes can be daunting, as can the prospect of a cultural shift away from strictly profits-based KPIs.
However, this should not put you off, as the many positive benefits of using the TBL outweigh the negatives in the long run — for your business and for society.
Here are a few brands that are changing the norms of how business is conducted and challenging how success is measured:
Toms
This well-known shoe brand has become synonymous with its impactful incentives, giving back ⅓ of profits to grass-root initiatives, offering cash grants and building partnerships with communities to bring about sustainable change.
On top of that, Toms has led a number of campaigns dedicated to boosting mental health, ending gun violence in the US and increasing access to opportunities. The possibilities when business and social/environmental initiatives are joined are endless; funding that is typically inaccessible becomes available and can have a domino effect of positive impact.
Veja
Veja places transparency of material sourcing with great importance, as they understand the need to know what impact it has on the planet and people. They mix social projects with economic justice and ecological materials. Moreover, their materials are sustainably sourced, which ramps up the normally associated prices of trainers.
“A pair of VEJA costs 5 to 7 times as much to produce, but since there are no advertising costs, they are sold for the same price.” A by-pass to this, to ensure consumer adoption, is through their ‘no add’ campaign, to allow a higher investment in spending more time on the ground, rather than investing in smoke and mirrors.
Haeckels
Potentially one of the most forward-thinking and holistically aligned brands, Haeckels offers cosmetics made from low impactful materials. Over the years, they have consistently innovated and pushed for higher consumer knowledge, education and opinions. Alongside the high consideration over packaging and natural ingredients, they have a strong strategy in place for reinvesting profit into local and global initiatives.
Going beyond the buzzwords
As with all CSR efforts, there is the potential for catchy terms like People, Planet and Profits to be tacked on to marketing campaigns for the sake of quick wins.
What we’re talking about is radical change. The TBL framework represents a regenerative future of business in which profit is not the only KPI. Emphasis needs to be placed upon the use of profit for prosperity to bring about societal gain and stronger consumer relations, ironically, resulting in better ROI on profits for the business.
As seen through the Danone watershed case studies, the TBL/3Ps open up unseen advantages for the business, local area and planet. Meanwhile, brands like Veja, Patagonia, Finisterre, Haeckles and Toms have shown how businesses can be environmentally impactful, and successful, in both, traditional profit, and the wider environment and community aligned sense.
It has been argued multiple times that businesses that realign their priorities, toward the 3Ps will be the winners of the future.
So, what if all brands adopted this method of practice for business? The amount of money kept private would instead have the chance to invest into the local economy, environmental charities and initiatives, addressing some of the most pressing social and environmental issues we collectively face.
The positive impact on people, the planet and the environment, could be huge.
A little bit about the Reset team.
Rodd have teamed up with Emma Lacey a sustainability researcher and strategist to jointly explore the landscape of sustainable design. Through a series of illustrated thought pieces we are looking to raise awareness, and create a greater understanding, of the important consumer brands and the design community alike — play in instigating and accelerating critical regenerative sustainable behavioural change at scale and how user centred innovation can massively increase the chances for success.
