Which set of metrics is used to measure an organization's economic, social, and environmental impact?

The triple bottom line is a framework used to evaluate an organization's commitment to sustainable development by assessing its economic, social, and environmental impacts. This concept emphasizes that organizations should focus not only on financial success but also on their responsibilities to society and the environment. The economic dimension examines profit and financial performance, while the social dimension assesses the organization’s impact on employees, customers, and communities. The environmental aspect evaluates sustainability practices and the organization's ecological footprint. This comprehensive approach allows businesses to understand their effects on the world and improve their overall sustainability efforts.

In contrast, corporate metrics and key performance indicators (KPIs) often focus primarily on financial outcomes and performance measures rather than providing a holistic view that incorporates social and environmental factors. The balanced scorecard, while it does strive for a more rounded picture of performance by integrating various perspectives, does not explicitly emphasize sustainability in the same way the triple bottom line does. Thus, the triple bottom line is recognized as the most relevant framework for measuring an organization's full impact across the three critical areas of sustainability.