| Session 2: The balancing act |
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The report Balancing Act, uses the well developed analytical approach of ‘generalised input-output analysis’to develop a numerate triple bottom line account of the Australian economy for three financial, three social and four environmental indicators. For each of 135 economic sectors, every indicator is developed as an intensity, that is, per one dollar of final demand or per one dollar spent for consumption in everyday life. The indicators are generated with a supply chain approach where all activities are included or ‘embodied’in the final indicator number. Taken together, these ten indicators provide a macro-landscape against which many management issues can be benchmarked.
The analysis seeks to underpin broader societal calls for industry, government and institutions to make decisions on a broader basis than just the financial bottom line. At an international level, these concerns drive initiatives such as the Global Reporting Initiative (or GRI) for corporate reporting, and the Equator Principlesfor development project financing. At a national level many firms now report on a triple bottom line basis, while socially or ethically responsible investment guidelines are now used by the financial investment industry.
While the methodology used in this analysis is already well established, the scale and depth of this analysis represents a first nationally, if not internationally. Subsequent work could extend the range of reporting indicators and produce a time series for the last thirty years. Because the indicators are referenced against one dollar of final demand, there is a potential for numerate triple bottom line accounting to become routine in traditional accounting practices. The report has three sections as follows: three chapters of background and methodology; detailed reports on 135 economic sectors; and appendices of summarised data. A numerate ‘Triple Bottom Line’account
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