mdia p3-01-socio-enviro-economic-150420

The GlobalSOCIO-ENVIRO-ECONOMIC

System

MULTI DIMENSION IMPACT ACCOUNTING

File: MDIA-p3-01-3-SOCIO-ENVIRO-ECONOMIC-150420.odp Peter Burgess (c) All rights reserved


WORK-IN-PROGRESS.SLIDESET STILL IN DEVELOPMENT.UPDATES WILL BE POSTED OVER

THE NEXT SEVERAL WEEKS

Socio-Enviro-Economicor

PEOPLE, ENVIRONMENT and MAN-BUILT CAPITAL


Sustainable progress requires decision making that optimizes for all the segments of the system.

Metrics to optimize for company profit performance and capital market value ignoring externalities are not enough!


The next slide shows: PEOPLE

MORE THAN 7 BILLION NOW AND GROWING


The next slide shows: ENVIRONMENT

SUN, PLANET EARTH, FAUNA and FLORA


The next slides shows: MAN-BUILT CAPITAL

GOVERNMENT, CITIES, INDUSTRY AND A LOT MORE


HISTORY … HOW THE THREE SEGMENTS HAVE CHANGED OVER TIME


YELLOW: The PEOPLE piece … Human Capital (NC)

DIRTY BROWN: The ECONOMIC piece … Man Built Capital (MBC)

GREEN:NATURE, ENVIRONMENT … Natural Capital (NC)


COLOR KEY


Human Capita

l

Man Built

Capital

Natural Capita

l

Trajectory to disaster!

This must be changed to this …



Human Capita

l

Man Built

Capital

Natural Capita

l

PEOPLE progressing

MBC* efficient

PLANET healthy


* Man Built Capital … Man Built Structures and Systems

To manage change there have to be METRICS for ALL the components of

the system.


This is the background for MULTI DIMENSION

IMPACT ACCOUNTING(MDIA)


MDIA tracks impact on ALL* the components of

the system …


* Not just the money based financial metrics


Sun

Fundamentals of the Socio-Enviro-Economic System

Sun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun SunSun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

SunSunSun

Man BuiltCapital

NaturalCapital

Sun

HumanCapital

Add Sun … the source of all energy

Split out FinancialCapital from other

components of Man Built Capital

Reorder because Financial Capital

metrics exist

MDIA builds on double entry and the concept of

state and flow …



These 3 slides explain the concept of STATE and FLOW …

or in accounting terms, the BALANCE SHEET / PROFIT AND LOSS relationship …


STEADY STATE


POSITIVE PROGRESS


DETERIORATION OF STATE

These reflect … ● Steady state;● Positive progress; and● Deterioration of state


No information about the activities is needed in order to understand PROGRESS

… only information about changes in STATE


State, Progress and Performance● State is the Balance Sheet of the entity at a moment in time;

● Progress is measured by comparing Balance Sheet changes between the beginning and the end of the period;

● Performance is a measurement that relates Progress to the resources consumed.



EFFICIENCY AND EFFECTIVENESS


Sun

STATE … Beginning of Period - BOP STATE … End of Period - EOP

Sun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun SunSun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun

FLOWS*

ACTIVITIES*

PROCESSES*

* Any amount of complexity … STATE remains simple


Sun

Fundamentals of the Socio-Enviro-Economic SystemBOP EOP

Sun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun SunSun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun

Financial Capital … virtual masquerading as reality.

Human Capital … PEOPLE … are complex, because we originated through nature, but our inventions are simple.

Man Built Capital is so simplistic compared to Natural Capital. While in some part amazing, it is very crude

compared to what is the norm in Natural Capital.

In the end it is Natural Capital that is going to determineeverything. NC is infinitely complex and resilient and will

outlast everything Man Built … and People are unlikely tosurvive in a future mass extinction that is quite certain.

The source of ALL energy to drive the system

A fundamental reality …The origin of all FINANCIAL WEALTH has been NATURAL CAPITAL facilitated by a lot of human energy and man built knowledge, structures and systems.



ELEMENTS OF THE SYSTEM by SEGMENT

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

FinancialCapital

HumanCapital

Man BuiltStructures & Systems

NaturalCapital

Money FoodGovernmentNature (life)

Sun

Nature (life)

Capital Market Value

WaterLaws. RulesNature (life)Land

ShelterInfrastructureWater Clothes

IndustryNature (life)AirHealth

MiningEcoservicesEducation

Energy SkillsWaste

RecreationRetailCulture

Logistics ReligionKnowledge

Technology

Security

Energy

Mobility

Profit

Moving forward … Request for collaborationMoney is part of a complex socio-enviro-economic system. While it works … it does not work as well as it should, nor as well as it could. The work of MDIA is to enable this complex system to work better.

MDIA needs to be a team effort. Join in and help to make the world a better place. Please get in touch.

Peter Burgess … [email protected]


Some links and contact information: Peter Burgess … [email protected]

Peter Burgess LinkedIn profilehttps://www.linkedin.com/in/peterburgess1

Link to TrueValueMetrics.org websitehttp://www.truevaluemetrics.org/

Link to navigation for MDIA slidesetshttp://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=list0200-Burgess-p3-Slidesets


mailto:[email protected]

https://www.linkedin.com/in/peterburgess1

http://www.truevaluemetrics.org/

http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=list0200-Burgess-p3-Slidesets

mdia p3-01-socio-enviro-economic-150420

Data & Analytics

capitalnatural capital

financial capital metrics

capital mbc green

capital market value

human capital nc dirty

othercomponents of man

economic piece man

slide shows