Triple Bottom-line Reporting Presentation to the Resource Management Law AssociationJune 2002

By Gerard Willis

Scope TBL and the Resource

Management Act TBL and the Local Government

Bill 2001(Restricted largely to environmental

matters)

Triple Bottomline Reporting

• The term “TBL” is used loosely• Strictly speaking, TBL is simply an approach to

reporting – but TBL philosophy is much more• It’s a management tool (not just reporting and

not just marketing!)• TBL is an approach to decision-making and is

usually associated with use of an Environmental Management System.

TBL

DecisionActio

n

TBL and the RMA - what is the relationship?

• Do changing values and the corporate response spell an end for the need for regulatory codes like the RMA?

The relationship

• The RMA is limited as a change agent. It influences a relatively small number of the decisions that affect sustainability

• TBL goes where the RMA cannot go. It can influence dozens of day to day management decisions

thus…

• While the RMA is important for a sustainable future it will not get us there by itself

• TBL is an essential complementary tool

Building blocks of sustainability(History of environmental

action)

Philanthropy

Public services

NGOs &Civil society

Regulation

CorporateEthic &TBL

Sustainability

Can the relationship be symbiotic?

• Can firm’s RMA monitoring requirements be integrated with TBL reporting?

• Can TBL provide a means of raising the profile of RMA compliance amongst senior management?

• Can management responses (EMSs, Codes of practice etc) be integrated with RMA planning instruments?

TBL and the RMA – Key hypothesis

• Should those organisations engaged in TBL get some “concession” through the RMA process?

• If so, why? - and how?

Why might you give a concession?

• Because TBL is effective self regulation and RMA is unnecessary (or not necessary to the same extent)?

• As an incentive to get more organisations involved in TBL?

Are any of these reasons valid?• How comparable are TBL actions

to RMA requirements?• Is it equitable (or efficient) to

provide a concession that is unrelated to the benefit derived?

TBL in the LG Bill

• Does not require TBL but must, every 3 years, report on progress in achieving community outcomes (including social, economic environmental and cultural outcomes)(Clause 74)

• Annual Plan required to report actual performance against expected service performance for each “group of activities” (Focus on outputs although individual activities and community outcomes must be identified)(Clause 78 and Schedule 8 Part 3)

Local Governmen

t Bill

Defining Community outcomes

6 Yearly process

Community outcome

report

LTCCP

3 Yearly process

Annual Plan

Annual

Report

Annual process

Process Issues for Local Authorities• What is the relationship between the

annual report and the 3 year report on community outcomes?

• How does TBL reporting link to section 35 of the RMA?

• How to get buy-in across the organisation?• How to get buy-in (and information) from

external organisations?• What does TBL mean for CCOs • To what extent should external NGOs and

others review and audit the TBL?

Policy Issues for Local Authorities• Can’t look at reporting in isolation

from planning – what are the implications for planning documents?

• How do local authorities deal with conflicts (not every action is a “win win” solution)

• What is the relationship between RMA Plans and the LTCCP?

TBL and Local Government – work in progress• Pilot programme involving 8 local

authorities • About to report to MfE• Led by Audit NZ which has

developed a 7 step plan• Also a working group of the Institute

of Chartered Accountants of NZ