Does The Triple Bottom Line work? [Woolworths Edition] – By Joey Huang [ECO3]

Woolworths is one of the largest Australian chain of supermarkets with about 201,000 employees serving 29 million customers over 3,000 stores on a weekly basis. Founded in 1924, its revenue in 2019 accounts to $39.57 billion. Along with Coles, they account for 80% of the Australian market.

The world has been paying much more attention to the ethical production of goods and services that they consume. Retail company, Woolworths Group, has been pursuing the Triple Bottom Line approach through aiming to focus more on people and planet rather solely on profit

Woolworths Group has been heavily investing in sustainability and they show this in their sustainability reports which could be viewed from their 2018 Sustainability report to the 2019 Sustainability Report outlining their contributions to better sustainability.

Source: https://www.woolworthsgroup.com.au/icms_docs/195583_2019-sustainability-report.pdf

Source: https://www.woolworthsgroup.com.au/icms_docs/195398_2018-sustainability-report.pdf

Woolworths smartly addresses their approach to the Triple Bottom Line as people, planet and prosperity.

As part of their focus on the planet, Woolworths has put effort in multiple instances such as collecting 22.0 million litres of rainwater in the year of 2016 to replace portable water used in truck washing, tower cooling, gardens and toilets. Woolworths is also determined to source key raw materials and commodities to an independent standard and to reach net zero supply chain deforestation within brand-products such as timber, pulp and the packaging.  

The belief of consumer sovereignty said by economists are, a lot of the times, rarely met but Woolworths has put in the effort and has made success in the triumph of consumer sovereignty through their scheme of ‘The Odd Bunch’.

More than 30% of purchase whatever good is cheaper regardless of appearance or ratings, Woolworths took advantage of this by offering misshapen fruit and vegetables through their ‘Odd Bunch’ initiative which sold more than 30 million kilograms which would’ve been food waste.

Regarding the second economic question of how to produce it, Woolworths has been working heavily in 2019 to reduce the use of plastic used to package the produce of multiple products. Last year 2019, Woolworths reduced 313 tonnes of plastic used to package fruit and vegetables followed by 505 tonnes in plastic packaging within their bakery items. Woolworths was also the first company to adopt the ‘Australian recycling label’ through producing 600ml water bottles, pre-packaged meals, yoghurt and bread on their own brand through ethical measures.

Regarding the impact of the approach towards the Triple Bottom Line, Woolworths Group Stocks seem to have a steady increase since the first 2018 Sustainability Report.

Stakeholders should feel more optimistic about purchasing more shares as Woolworths is showing to be very ethical and sustainable. Just like the famous logo, Woolworth’s effort in being as green as possible has been responded in an increase in sales and stock price.

From my perspective, the Triple Bottom Line is applicable and has worked out well. I hypothesis that Woolworths will continue to thrive but with the current situation of the COVID-19 I’d say there will be a massive increase in sales from panic-buying and then a plunge in sales after all needs are bought. Stock price should also go through a phase of decrease in the current bear market that has emerged.

Sources:

Triple Bottom Line Approach General Knowledge  

Woolworths Sustainability Reports [2018 and 2019]

Woolworth Group Stock Price