Approaches to Sustainable Development: Triple Bottom Line and Circular Economy

Approaches to Sustainable Development 1
APPROACHES TO SUSTAINABLE DEVELOPMENT
Name
Course
Professor’s Name
Institution
Location of Institution
Date

Approaches to Sustainable Development 2
Introduction.
Sustainable development can be defined as an organizing principle geared toward the
realization of goals. It brings into perspective an aspect of sustaining the process of resource
provision by natural systems. It does not advocate for interference with the stability and form of
the natural systems from which resources are obtained. This paper brings into perspective a
summarized analysis of various approaches that are geared towards sustainable development.
These approaches include the triple bottom line, the five capitals, natural capitalism, cradle to
cradle, the circular economy, and the balanced scorecard. The study goes ahead to illustrate a
practical application of two approaches that is the triple bottom line and the circular economy
approach to sustainable development to a given organization. In this case, the subject
organization being Alra Foods. Under the triple bottom line approach calculation of the triple
bottom line is brought into perspective with a consideration on the indexing approach where
three measures are brought into perspective. The three measures include the economic measures,
the environmental measures, and social measures. The paper goes further to discuss the
application of the circular economy approach which brings an aspect of waste reduction. Here
the challenges and opportunities that are likely to emanate from the adoption of the circular
economy approach are brought into perspective. Finally, the study brings into perspective a
comparison between the two approaches adopted.
Approaches to Sustainable Development
The Triple Bottom Line.
The triple bottom line is an accounting framework that brings into perspective the three
dimensions of performance (University of Wisconsin, 2018). These dimensions include the
social, environmental, and financial. The triple bottom line differs from traditional reporting due
to the fact that it incorporates the environment that is environmental and social measures that
prove difficult to assign means of measurement that are appropriate. The three dimensions, in a
nutshell, can be defined as people, planet, and profits. Organizations adopt the triple bottom line
to analyze and evaluate performance on the basis of creating greater business value. The concept
brings into perspective the fact that the stakeholders are the bearers of company responsibility
and not the shareholders.

Approaches to Sustainable Development 3
The Five Capitals.
The five capitals model refers to a model that brings into perspective the
conceptualization of economic sustainability. It focuses on asset valuation apart from financial
asset valuation (Barclay, 2017). The key assets considered here include capital on an economic
perspective, the capital on a human perspective, natural capital, built capital, and capital on a
social perspective. This model facilitates the integration of management systems taking into
consideration the sector or industry. It can also be used as an analytical tool for sustainability
evaluation. This model is essential in providing for sustainability with a focus on wealth creation
economic concepts.
Natural Capitalism.
Natural capitalism is a concept that brings into perspective the interdependence of the
global economy and the natural resources. The concept critiques traditional industrial capitalism.
Natural capitalism believes that interdependence between the production of human-made capital
and its use (Hawken et al., 2013, p. 168). It also brings into perspective the natural capital supply
and maintenance. Natural capitalism is based on three key principles which include using
resources at 10 to 100 times more productively, redesigning production on biological lines, and a
shift from selling goods to leasing a continuous flow of services that meet the dynamic needs of
customers and clients.
Cradle To Cradle.
Cradle to cradle refers to a product design approach that takes into consideration a human
perspective of nature’s processes. It takes into consideration materials as an equivalent to
nutrients revolving in a health and safe metabolism (Haggar, 2010, p. 98). The model brings into
perspective sustainability and the consideration of the life of future generations. The model
suggests that protection must be offered to the environment and its ecosystem. The framework
can be described as economic and social. It seeks to produce systems that are effective and
efficient and are geared towards the production of minimal waste.

Approaches to Sustainable Development 4
The Circular Economy.
The concept of the circular economy gives a response to sustainable growth. It focuses on
the growing pressure of production and consumption on the resources available in the world
(Charter, 2018, p. 125). The concept offers a solution to the take-make-dispose model where
every product has an expiration period or end life. The model can be understood better by taking
into consideration natural living systems that function effectively because each of its components
operates with others as one.
The Balanced Scorecard.
A balanced scorecard refers to a tool that is used by organizations to effect strategic
planning and management (Balanced Scorecard Institute, 2018). It is essential in communicating
what organizations intend to achieve, alignment of day to day operations and activities in an
organization, project, products and service prioritization. It is also essential I the measurement
and monitoring strategic target achievement progress. The concept acts as a link between
organizational goal s and objectives and operational objectives. The tool brings into perspective
four elements which include the financial, customer or client, internal organizational processes,
and organizational capacity.
Practical Application
Subject Organization.
The subject organization in this study will be Arla foods, an international organization
located in Viby in Denmark. The company has been identified as the largest producer of products
related to dairy. The company arose as a result of a merger between two companies that is Arla
and MD foods in the year 2000. The company produces products such as Lurpak and Castello
cheese which both have attracted the international market and are sold all over the world. The
company qualifies to be both a corporative brand and one that stretches across all product
categories. The company prides itself in understating corporate social responsibility and
sustainability. In achieving the sustainability objective, the company may employ the use of the
triple bottom line approach to sustainable development and the circular economy approach to
sustainable development.