mdia - presentation c - 140514 (work in progress)
TRANSCRIPT
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MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
Peter BurgessMay 2014
www.truevaluemetrics.org
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MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
People (society)
Nature's bounty
People builtconstructs
The FRAMEWORK for Measurement
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MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
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Quality of life
IndividualFamilyFriendsCommunityNational SocietyGlobal Society
PRODUCTS AND SERVICESFoodWaterShelterClothingEnergyHealthEducationTransportSecurity
PEOPLE BUILT CONSTRUCTS
NATURE'S BOUNTY
Place (cities, towns, etc)Business organizationsIndustrial processesMiningEnergy productionBuilt infrastructureGovernance institutionsRule of lawCivil society organizations
Mineral resourcesEnergy resourcesLandWaterAirAnimal life (fauna)Plant life (flora)
Resource depletionEnvironmental degradation
Supp
ly c
hain
truco
st
PEOPLE
State of Place … impact on people, resource depletion and environmental degradation
Profit of Business … impact on people,Resource depletion and environmental degradation.
Impact of consumptionW
aste chain trucostStandard values
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MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
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Quality of life
IndividualFamilyFriendsCommunityNational SocietyGlobal Society
PRODUCTS AND SERVICESFoodWaterShelterClothingEnergyHealthEducationTransportSecurity
PEOPLE BUILT CONSTRUCTS
NATURE'S BOUNTY
Place (cities, towns, etc)Business organizationsIndustrial processesMiningEnergy productionBuilt infrastructureGovernance institutionsRule of lawCivil society organizations
Mineral resourcesEnergy resourcesLandWaterAirAnimal life (fauna)Plant life (flora)
Resource depletionEnvironmental degradation
Supp
ly c
hain
truco
st
PEOPLE
State of Place … impact on people, resource depletion and environmental degradation
Profit of Business … impact on people,Resource depletion and environmental degradation.
Impact of consumptionW
aste chain trucostStandard values
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MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
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PEOPLE BUILTCONSTRUCTS
NATURE'S BOUNTYState … resources (BOP)State … environment (BOP)
Place … benefits from people in the place and organizations in the place
Organizationsmake what is needed earn profit
PEOPLEState (BOP) State (EOP)
Government … gets tax income to fund development of the commons
Needs
TVImpact from post use waste
Unmet needs
TVImpact from use
TVImpact from production
TVImpact benefit for people (utility)TVImpact resourcesTVImpact environment
TVImpact benefit for people (payroll)TVImpact resourcesTVImpact environment
PEOPLE NEED PRODUCTS
WASTE
Decision … to buy or not to buy
State - resources (EOP)State - environment (EOP)
BOP = Beginning of PeriodEOP = End of Period
Ecological Services – critical for life!
Profits benefit investorsPayroll benefits workersTaxes benefit governmentJobs benefit communityProcess impacts resourcesand environment
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MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
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PEOPLE BUILTCONSTRUCTS
NATURE'S BOUNTYState … resources (BOP)State … environment (BOP)
Place … benefits from people in the place and organizations in the place
Organizationsmake what is needed earn profit
PEOPLEState (BOP) State (EOP)
Government … gets tax income to fund development of the commons
Needs
TVImpact from post use waste
Unmet needs
TVImpact from use
TVImpact from production
TVImpact benefit for people (utility)TVImpact resourcesTVImpact environment
TVImpact benefit for people (payroll)TVImpact resourcesTVImpact environment
PEOPLE NEED PRODUCTS
WASTEPRODUCTS
Decision … to buy or not to buy
State - resources (EOP)State - environment (EOP)
BOP = Beginning of PeriodEOP = End of Period
Ecological Services – critical for life!
Profits benefit investorsPayroll benefits workersTaxes benefit governmentJobs benefit communityProcess impacts resourcesand environment
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MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
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Every process in nature has a waste component
Industrial processes have waste components
Industrial agriculture has waste
Cities and municipalities have waste
In a circular economy waste from one processbecomes a raw material for another process.
People make waste
Waste does damage to the environment in many ways: Land fill issues Water pollution Air pollution and greenhouse gases
Impact of WASTE – Post Use Waste Chain
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MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
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Every process in nature has a waste componentWhen trees rot, there is a release of greenhouse gas
All animals produce excrement … wild animals, farm animals, humans
Animals breathe and pass wind … producing carbon dioxide, methane
Impact of WASTE – Post Use Waste Chain
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MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
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Industrial processes have waste componentsMany industrial processes use large quantities of water. After use in the process this water has the potential to pollute rivers and aquafers.
Many industrial processes use large amounts of energy. Energy derived from fossil fuels releases greenhouse gases that contribute to global warming
Impact of WASTE – Post Use Waste Chain
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MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
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Industrial agriculture has wasteIndustrial agriculture uses large quantities of chemical fertilizer, herbicides and pesticides. Run off into rivers is a large scale serious hazard which is now reported to be causing a huge 'dead area' in the Gulf of Mexico.
Mass production of meat is a major source of greenhouse gases.
Impact of WASTE – Post Use Waste Chain
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MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
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Cities and municipalities have waste
Impact of WASTE – Post Use Waste Chain
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MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
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People make waste
Impact of WASTE – Post Use Waste Chain
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MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
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PEOPLE … the game of life!BoP
NEEDSThere are needs to sustain thestatus quo
There arebasic needssimply to survive
HAVEBased onwhat hashappenedin the past
What is thesituation atthe present
What are thepossibilitiesfor the future
HAVEBased onwhat hashappenedin the past
What is thesituation atthe present
What are thepossibilitiesfor the future
EoP
MONEY LIFEIt is only themoney basedcomponentsof life that areaccounted forin conventionalaccounting andeconomics
UNPAID EFFORTMany very importantactivities are unpaid
RECREATIONValuablefor quality of life
UNMETNEEDSSome placeseven basicneeds cannotbe satisfied
PRODUCT SUPPLYCHAIN IMPACTto satisfy needs
USE AND POST USE WASTE CHAIN IMPACTon resources and environment
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MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
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PEOPLE … the game of life!BoPHAVEBased onwhat hashappenedin the past
What is thesituation atthe present
What are thepossibilitiesfor the future
HAVEBased onwhat hashappenedin the past
What is thesituation atthe present
What are thepossibilitiesfor the future
EoP
What a personcontributes to society
What a person pulls from society
RECREATIONValuablefor quality of life
PRODUCT SUPPLYCHAIN IMPACTto satisfy needs
USE AND POST USE WASTE CHAIN IMPACTon resources and environment
What a person does to betterthemselves
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MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
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PEOPLE … the game of life!BoP
NEEDSFoodWaterShelterClothingEnergyHealthEducationTransportSecurityRecreation
HAVEWealthJob - incomeOpportunityEducationSkillsExperienceGood healthShelterClothingHappinessFamilyFriendsCommunityAccess to transportAccess to goodsAccess to servicesAccess to health servicesSecure environmentAccess to recreationAccess to foodAccess to waterAccess to energyAccess to educationNational securityLocal security
HAVEWealthJobOpportunityEducationSkillsExperienceGood healthShelterClothingHappinessFamilyFriendsCommunityAccess to transportAccess to goodsAccess to servicesAccess to health servicesSecure environmentAccess to recreationAccess to foodAccess to waterAccess to energyAccess to educationNational securityLocal security
EoP
MONEY LIFEEarn money: orconsume wealthto buy needs
UNPAID EFFORTDo good thingsto help otherswithout pay
RECREATIONDo things tomake life worth living
UNMETNEEDSFoodWaterShelterClothingEnergyHealthEducationTransportSecurityRecreation
PRODUCT SUPPLYCHAIN IMPACTto satisfy needs
USE AND POST USE WASTE CHAIN IMPACTon resources and environment
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MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
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A slide from the 'Share Value Leadership Summit in NYC
Economic Activity by Sector U.S. (2013) Gross non-profit sector Total government spending Estimated total corporate revenue
$1.2 trillion$3.1 trillion$23.1 trillion
What is this really saying?
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MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
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What is this really saying?
Economic Activity by Sector U.S. (2013) Gross non-profit sector Total government spending Estimated total corporate revenue
$1.2 trillion$3.1 trillion$23.1 trillion
If this is the shape of the US economy, how do you pay for: Education Health Infrastructure National security Law and order, justice Research