Beyond the Financial Balance Sheet: Embracing the Triple Bottom Line for Sustainable Business Success

Abstract

Our decisions today are part of an economic thinking which aims to fix problems and increase the efficiency of capital markets. Our economy is still largely approached as a system which is unrelated to our environment or social returns like community well-being, social cohesion, equitable distribution of resources, etc. To fully incorporate sustainability into cost-benefit analysis, businesses need to change their financial approach, showcasing how long-term thinking impacts profits. Money's value is not static and evolves with time and technology. We propose to introduce a variation of cost/benefit and present value calculations. Precise calculations reveal the benefits of long-term strategies over short-term profit focus. As financial systems evolve and technology advances, the accurate calculation of money's time value will continue to play a crucial role in shaping economic landscapes and guiding financial choices. In this article, we demonstrate that updated calculations could be a key enabler to visualize the benefits of long-term thinking or “patient finance” as compared to a short-term focus on profit. We introduce the concept and calculation of a Present Future Value (PFV).