mdia man built capital -150624

2. MULTI DIMENSION IMPACT ACCOUNTING WORK-IN-PROGRESS. SLIDESET STILL IN DEVELOPMENT. UPDATES WILL BE POSTED OVER THE NEXT SEVERAL WEEKS

3. MBC MAN BUILT CAPITAL ... is part of an extremely complex SOCIO-ENVIRO-ECONOMIC SYSTEM MULTI DIMENSION IMPACT ACCOUNTING

4. The next slides shows: MAN-BUILT CAPITAL GOVERNMENT, LAW, CITIES, INDUSTRY AND A LOT MORE MULTI DIMENSION IMPACT ACCOUNTING

5. MULTI DIMENSION IMPACT ACCOUNTING

11. MULTI DIMENSION IMPACT ACCOUNTING ELEMENTS OF THE SYSTEM by SEGMENT (1) Financial Capital Human Capital Man Built Capital Natural Capital Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun Part of Man Built Capital (MBC) Metrics around money and wealth are everywhere Human Capital is about the Quality of Life and Standard of Living of PEOPLE, and as such, is the most important purpose of economic activity but no metrics Man Built Capital(MBC) There are metrics for efficiency and effectiveness in private for profit organizations, but less so for the public sector and for the commons Everything is built on top of Natural Capital, that is all the resources that occur in nature, the environment in all its complexity and ecosystem services that it enables very complex detail metrics, difficult to understand and no way to summarize these metrics and use them effectively Sun the ultimate source of all energy

12. MULTI DIMENSION IMPACT ACCOUNTING ELEMENTS OF THE SYSTEM by SEGMENT Financial Capital Human Capital Man Built Capital Natural Capital Sun Financial Capital Human Capital Man Built Capital Natural Capital MoneyFood Government Nature (life) Sun Nature (life) Capital Market Value Water Laws. Rules Nature (life)Land Shelter Infrastructure WaterClothes Industry Nature (life)Air Health Mining Ecoservices Education EnergySkills Waste Recreation Retail Culture LogisticsReligion Knowledge Technology Security Energy Mobility Profit

13. The 5 Components of Man Built Capital: ... Financial ... Physical ... Knowledge ... Institutional ... Social MULTI DIMENSION IMPACT ACCOUNTING

14. MULTI DIMENSION IMPACT ACCOUNTING Money Government Laws/Rules Infrastructure Industry Mining Energy Waste Retail Logistics Knowledge Technology Financial Physical Knowledge Institutional Social Financial PhysicalKnowledgeInstitutional SocialMBC Water Sewer Regulations Security Private Sector Public Sector Energy Buildings Banks Capital Markets Community Culture Religion Recreation Insurance Health Education Roads Transport Land Research COMPONENTS OF MAN BUILT CAPITAL (MBC) Etc. Organizations Securitization

15. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Institutional Capital Physical Capital Knowledge Capital Social Capital Financial Capital About Man Built Capital

16. Man Built Capital Man Built Capital Man Built Structures and Systems (MBSS) are everything not PEOPLE and not NATURE. MULTI DIMENSION IMPACT ACCOUNTING

17. These ALL may be changed! MULTI DIMENSION IMPACT ACCOUNTING

18. The PURPOSE of all economic activity is: (1) to enable an improved Quality of Life and Standard of Living for PEOPLE; and, (2) to do this without stressing nature and the enabling natural systems. Man Built Capital in all its manifestations have been developed and deployed to make this possible. MULTI DIMENSION IMPACT ACCOUNTING

19. SOCIO-ENVIRO-ECONOMIC SOCIO is Human Capital PEOPLE; ENVIRO is Natural Capital NATURE; ECONOMIC is everything that MONEY measures that is MBC (Man Built Capital). MULTI DIMENSION IMPACT ACCOUNTING

20. SOCIO is a PEOPLE perspective. Everything should result in people progressing. ENVIRO is about NATURE and the ultimate source of everything that people can ever have; and, ECONOMIC is MAN BUILT CAPITAL all sorts of structures and systems that have been built to enable progress. MULTI DIMENSION IMPACT ACCOUNTING

21. Financial Capital is part of Man Built Capital but separated out for the purpose of analysis because it has become such an important part of the conventional way of measuring specifically: (1) business profit; (2) capital market valuations; and, (3) GDP growth. MULTI DIMENSION IMPACT ACCOUNTING

22. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun WHAT IS THIS? Future flows of profit determine capital market valuation. Change becomes an Increment to financial capital. This is the making of fictional or virtual wealth Debits and credits of money result in profit which Increments financial capital About Financial Capital Money Stocks and Bonds Ownership of Securities Real Estate Ownership of Physical Assets Ownership of Assets Ownership of Debt In the end, all FC is owned by people WHICH OF THESE IS RIGHT?

23. Institutional Capital comprises: Government Departments and Agencies; A framework of law; Systems of law enforcement and justice; Security capacities; Corporate organizations; Health systems; Education systems; etc. MULTI DIMENSION IMPACT ACCOUNTING

24. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Institutional Capital Physical Capital Knowledge Capital Social Capital Financial Capital About Man Built Capital Institutional Capital Government, Rule of Law, Companies, Organizations. Systems for: Health Education, Banking, Social Services, Security, etc.

25. Physical Capital Some of this is owned by Corporate Organizations, some by Private People and some by the Public Sector. Ownership has been a key feature of modern capitalism and is worthy of more study and understanding. MULTI DIMENSION IMPACT ACCOUNTING

26. Physical Capital comprises: Infrastructure; Factories; Machinery and equipment; Transports vehicles (ships, aircraft, trucks, railcars, etc.); Houses and apartments; Offices, hotels and commercial buildings; Computers, etc. MULTI DIMENSION IMPACT ACCOUNTING

27. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Institutional Capital Physical Capital Knowledge Capital Social Capital Financial Capital About Man Built Capital Physical Capital Commercial buildings, Factory buildings, Housing, Stores, Machinery and equipment, Vehicles, Infrastructure: Roads and bridges Railroads Seaports and airports Communications Water and sewer Electricity, Oil and Gas, Hospitals, Schools. etc.

28. Knowledge Capital What we know enables productivity and performance. Some of this is shared universally and is available for free use, and some is owned by Individuals and Business entities and may be used for their private gain at the expense of society as a whole. MULTI DIMENSION IMPACT ACCOUNTING

29. Knowledge Capital Knowledge Capital is expanding rapidly faster than at any previous time in history. Important parts of Knowledge Capital have been created with Government funds, often for military and security purposes. MULTI DIMENSION IMPACT ACCOUNTING

30. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Institutional Capital Physical Capital Knowledge Capital Social Capital Financial Capital About Man Built Capital Knowledge Capital Mathematics Physics Biology Chemistry Science of materials Computer science Information technology Biotechnology Artificial intelligence Robotics

31. Social Capital comprises: Networks of friends and family; Community; Culture; Religion; Community people; Community access to services; Social safety net; etc. MULTI DIMENSION IMPACT ACCOUNTING

32. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Institutional Capital Physical Capital Knowledge Capital Social Capital Financial Capital About Man Built Capital Social Capital Relationships Human interaction Teamwork Religion Culture History

33. OWNERSHIP AND FINANCING The matter of OWNERSHIP is important in the understanding of MBC. This is especially true in connection with the financing of MBC, Capital market financing is facilitated by private ownership, but the metrics for this mean that important things cannot get done because they cannot be financed. MULTI DIMENSION IMPACT ACCOUNTING

34. Funding for Man Built Capital The funding for MBC depends on ownership. If ownership is private, then funding is facilitated by profit potential. If ownership is public (government) then funding is constrained by political will and government revenue limitations. A sad reality is that initiatives with a huge potential for good go unfunded because the dominant financial system only has focus on profit hardly at all on good. MULTI DIMENSION IMPACT ACCOUNTING

35. CONCLUSION Our future depends almost entirely on how MAN BUILT CAPITAL (MBC) is managed. KNOWLEDGE has the potential to be used to optimize PHYSICAL CAPITAL, INSTITUTIONS and SOCIETY so that impact on PEOPLE is as good as possible with as little negative impact on NATURAL CAPITAL as possible. MULTI DIMENSION IMPACT ACCOUNTING

36. More than anything else, this will be achieved by implementing better metrics, metrics that account not only for the profits of the organization and the impact on FINANCIAL CAPITAL, but also impact the organization has on HUMAN CAPITAL (PEOPLE) and NATURAL CAPITAL (PLANET). This is the goal of the MDIA (Multi Dimension Impact Accounting) initiative. MULTI DIMENSION IMPACT ACCOUNTING

37. Follow up: Request for Feedback Getting these ideas fleshed out into a clear, simple but comprehensive structure is a big job and remains a work-in- progress. Many organizations are making progress with this, but there is no broad universal framework yet that will enable all the pieces to come together and work efficiently. I would like to get feedback from anyone and everyone to help move this initiative forward. While I have some clear concepts about much of this architecture, there are many details that I do not know enough about and need help. So, please feel free to contact me ([email protected]). Please put something relevant and catchy in the subject line. MULTI DIMENSION IMPACT ACCOUNTING

38. Some links and contact information: Peter Burgess [email protected] Peter Burgess LinkedIn profile https://www.linkedin.com/in/peterburgess1 Link to TrueValueMetrics.org website http://www.truevaluemetrics.org/ Link to navigation for MDIA slidesets http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=list0200-Burgess-p3-Slidesets MULTI DIMENSION IMPACT ACCOUNTING

mdia man built capital -150624

Economy & Finance