MULTI DIMENSION IMPACT ACCOUNTING
File: MDIA-p3-04-WATER-150730.odp Peter Burgess (c) All rights reserved
MDIA
WATER
A COM...
EXPLANATION
This slideset is A WORK-IN-PROGRESS. It will be
upgraded periodically. It is part of a series of more than
50 ...
The IMPORTANCE of WATER
Without WATER, a person is dead
in less than three days. In a major
drought, plants die, then anim...
MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
...
MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
...
… the next slide shows how the
various water issues fit into the
True Value Impact Accounting
framework …
MULTI DIMENSION ...
MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun...
The value of RESOURCE
DEPLETION associated with the
mining of old water that does not
replenish has to be quantified ...
M...
The value of ENVIRONMENTAL
DEGRADATION associated with
the flow of polluted water into the
environment has to be
quantifie...
MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun...
PEOPLE drive everything
because both agriculture and
industry operate to produce the
food and 'stuff' needed to
maintain a...
SO … what are the elements of the
WATER CYCLE?
Without WATER, a person is dead in less than
three days. In a major drought...
MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
...
MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
...
MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
...
The CHALLENGES
To use water in a more efficient way so that:
● We have water we need for people;
● We have water to grow w...
WATER, a product of NATURE
● Purified by natural systems;
● Historically a 'free' good;
● Now, increasingly there are shor...
The next slide:
WATER …
Perhaps the most VALUABLE substance on
the planet.
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
WATER
DRINKING WATER
SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natura...
The next 2 slides:
BOTTLED WATER …
One of the most PROFITABLE products on the
planet …
… as long as external negative IMPA...
MULTI DIMENSION IMPACT ACCOUNTING
WATER
BOTTLED WATER
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural...
MULTI DIMENSION IMPACT ACCOUNTING
WATER
BOTTLED WATER
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural...
The next slides:
Freshwater ...
● Lakes;
● Rivers;
● Rain.
Saltwater ...
● Oceans
MULTI DIMENSION IMPACT ACCOUNTING
“Water...
MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
...
MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
...
MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
...
MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
...
MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
...
MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
...
The next slides:
Water Shortages
● Dry river in Pakistan;
● Nearly empty reservoir in California
● Collecting water in Nor...
MULTI DIMENSION IMPACT ACCOUNTING
WATER
WATER SHORTAGE
Pakistan … 2009
SunSun
BOP
Financial
Capital
Human
Capital
Man Buil...
MULTI DIMENSION IMPACT ACCOUNTING
WATER
WATER SHORTAGE
California … 2014
SunSun
BOP
Financial
Capital
Human
Capital
Man Bu...
MULTI DIMENSION IMPACT ACCOUNTING
WATER
COLLECTING WATER
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natu...
MULTI DIMENSION IMPACT ACCOUNTING
WATER
COLLECTING WATER
Myanmar … 2011
SunSun
BOP
Financial
Capital
Human
Capital
Man Bui...
The next slides:
Too much water … floods
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
WATER
FLOODS
Myanmar … 2011
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital...
MULTI DIMENSION IMPACT ACCOUNTING
WATER
FLOODS
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capita...
The next slides:
Flood control measures
● River Thames in London;
● Dam in China;
● Dam in USA.
MULTI DIMENSION IMPACT ACC...
MULTI DIMENSION IMPACT ACCOUNTING
WATER
FLOOD CONTROL
Thames barrage
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
...
MULTI DIMENSION IMPACT ACCOUNTING
WATER
FLOOD CONTROL
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural...
MULTI DIMENSION IMPACT ACCOUNTING
WATER
FLOOD CONTROL
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural...
2 ISSUES …
● Quantity of water
● Quality of water
MULTI DIMENSION IMPACT ACCOUNTING
WATER POLLUTION
MULTI DIMENSION IMPACT ACCOUNTING
WATER is an amazing solvent …
and this is a huge problem
because water dissolves both
good things and very bad things.
MUL...
WATER POLLUTION comes from:
Personal use … gray water;
Storm water run off;
Agriculture run off;
Industrial process efflue...
WATER POLLUTION examples ...
● Polluted rivers … solid waste;
● Industrial waste water;
● Abandoned mines runoff;
● Defore...
MULTI DIMENSION IMPACT ACCOUNTING
WATER
RIVER POLLUTION … SOLID WASTE
River Ganges in IndiaSunSun
BOP
Financial
Capital
Hu...
MULTI DIMENSION IMPACT ACCOUNTING
WATER
INDUSTRIAL WATER POLLUTION
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Ca...
MULTI DIMENSION IMPACT ACCOUNTING
WATER
ABANDONED MINE RUN-OFF
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capita...
MULTI DIMENSION IMPACT ACCOUNTING
WATER
DEFORESTATION
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural...
MULTI DIMENSION IMPACT ACCOUNTING
WATER
SEDIMENT LADEN RIVER
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
...
REMEDIATION
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
ELEMENTS OF WATER TREATMENT
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital...
MULTI DIMENSION IMPACT ACCOUNTING
NATURAL WATER TREATMENT
REMEDIATING ABANDONED MINE DRAINAGE
Pennsylvania
SunSun
BOP
Fina...
MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun...
The WATER dimension of the
socio-enviro-economic system
depends on the characteristics of
the water sources in the PLACE
…...
PROCESSES that use WATER
should be efficient in the context
of the PLACE.
Post PROCESS water should not
pollute the enviro...
Next … WATER CYCLE graphics ...
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
WATER
WATER FLOW
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Ca...
MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
...
MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
...
MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
...
MULTI DIMENSION IMPACT ACCOUNTING
Values in 1000 cubic km/yr
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
...
MULTI DIMENSION IMPACT ACCOUNTING
Values in 1000 cubic km/yr
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
...
MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
...
MULTI DIMENSION IMPACT ACCOUNTING
Link to: University-of-Michigan ... The-Global-Water-and-Nitrogen-Cycles
WATER CYCLE
A v...
The STOCK of WATER
Cubic Kilometers
Rocks (not usable)
Oceans (97.4% of usable water)
Ice
Groundwater
Lakes and Rivers
Atm...
MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
...
IF ½ OF THE ICE MELTED, this
would result in a 26.2 metre rise
in sea level … about 86 feet!
Cubic Kilometers
Total ice
50...
USES FOR WATER
MULTI DIMENSION IMPACT ACCOUNTING
The main uses for WATER:
Personal use … hydration;
Personal use … washing, cooking, etc;
Personal use … landscaping, etc;
...
The main sources of WATER:
Rain, rivers and surface reservoirs;
Underground aquifers;
Deep old water aquifers;
Desalinatio...
Unlike oil and gas, there is no
'man built' system of logistics to
move water around the world.
MULTI DIMENSION IMPACT ACC...
Transport of water is readily
justified based on value … but not
easily justified with the cost and
pricing constructs tha...
FINANCIAL AND IMPACT
ACCOUNTING FOR WATER
MULTI DIMENSION IMPACT ACCOUNTING
So … how to do the accounting
for impact for water?
MULTI DIMENSION IMPACT ACCOUNTING
The amount paid for water is in
the financial accounts.
It is likely that the quantity of
water going into the process is
...
It is less likely that the quantity of
water leaving the process is
recorded.
Both the quantity of the water
leaving the p...
The IMPACT is a function of these
PROCESS parameters:
… the consumption of fresh water
i.e. fresh water in less water out;...
The IMPACT is also a function of
water sources in the PLACE:
The availability of water from sources that
are replenished n...
And the IMPACT is also a function
of water needs in the PLACE:
The essential needs for PEOPLE use;
Less less essential nee...
… the next slide is a graphic that
puts much of this into the MDIA
framework …
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun...
The value of RESOURCE
DEPLETION associated with the
mining of old water that does not
replenish has to be quantified ...
M...
… and the reason for the
agriculture and the industrial
production is so that PEOPLE
have the food and 'stuff' they
need t...
MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun...
Next step … QUANTIFICATION
The next step is to quantify the VALUE of old
water that is mined … the quantification of
resou...
Units of Measure …
There are 1012
litres in a cubic kilometer
A US gallon equals approximately 3.785 litres
MULTI DIMENSIO...
Water Value depends on the
situation …
… and the situation varies from place
to place and the STATE of the water
in the pl...
WATER DEPLETION
If the VALUE (TrueValueWater or 'tvw') of water
is defined as follows:
The value of 1 (one) litre of fresh...
WATER DEGRADATION
When the cost of remediating degraded water
to fresh is $5 per litre
Then the IMPACT of resource degrada...
AND …
When toxic water gets into freshwater
(watershed or groundwater) the IMPACT may
be quantified by reference to the am...
AND …
To the extent that toxic water contaminates
freshwater (watershed or groundwater) the
IMPACT may also be quantified ...
AND in addition …
To the extent that toxic water reaches
estuaries and other important ecosystems and
natural habitats, th...
AND lastly …
To the extent that toxic water reaches the
oceans the IMPACT should be quantified by
reference to the damage ...
SOME INTERIM OBSERVATIONS:
It is urgent that some form of numbering and
quantification is applied to water … the flow
and ...
REMINDER
This slideset is A WORK-IN-PROGRESS. It will be
upgraded periodically. It is part of a series of more than
50 sli...
THANK YOU
Some links and contact information:
Peter Burgess … peterbnyc@gmail.com
Peter Burgess LinkedIn profile
https://w...
Upcoming SlideShare
Loading in …5
×

MDIA p3 04 WATER 150730

315 views

Published on

Water is a very important component of life. There is more water than land on planet earth. but most of it is highly saline. There is much less freshwater, essential for human existence and for industrial processes and agriculture. and as population grows it is likely that good freshwater will be in increasingly short supply. Drought is ugly. The management of water has not been a priority in the past, but it is becoming increasingly more important. MDIA is a part of the framework of metrics that will facilitate better decisions in relation to water.

Published in: Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
315
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

MDIA p3 04 WATER 150730

  1. 1. MULTI DIMENSION IMPACT ACCOUNTING File: MDIA-p3-04-WATER-150730.odp Peter Burgess (c) All rights reserved MDIA WATER A COMPONENT OF NATURAL CAPITAL
  2. 2. EXPLANATION This slideset is A WORK-IN-PROGRESS. It will be upgraded periodically. It is part of a series of more than 50 slidesets. Navigation to all of these is available here: FEEDBACK is welcome. Please email to Peter Burgess … peterbnyc@gmail.com … with a catchy phrase in the subject line so that it gets attention, and please identify the specific slideset(s) involved. This explanation is version v150801. The most current text is available at: MULTI DIMENSION IMPACT ACCOUNTING http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=txt00010199 http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=N1-Slidesets-p3
  3. 3. The IMPORTANCE of WATER Without WATER, a person is dead in less than three days. In a major drought, plants die, then animals and then people. MULTI DIMENSION IMPACT ACCOUNTING
  4. 4. MULTI DIMENSION IMPACT ACCOUNTING SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun DROUGHT Crops fail
  5. 5. MULTI DIMENSION IMPACT ACCOUNTING SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun DROUGHT Water shortage in New Mexico
  6. 6. … the next slide shows how the various water issues fit into the True Value Impact Accounting framework … MULTI DIMENSION IMPACT ACCOUNTING
  7. 7. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Rain WATER EOP River Reservoir Old water Industrial Irrigated Agriculture People Use Fresh Water Mined Fresh Water Total Fresh Water Into Use IN IN Polluted Polluted Water Rain River Reservoir Old water Replenishment Rain / Water Flows Resource Depletion Environmental Degradation Polluted Polluted Water Polluted Water Fresh Mining & Industry Fresh Polluted Water
  8. 8. The value of RESOURCE DEPLETION associated with the mining of old water that does not replenish has to be quantified ... MULTI DIMENSION IMPACT ACCOUNTING
  9. 9. The value of ENVIRONMENTAL DEGRADATION associated with the flow of polluted water into the environment has to be quantified ... MULTI DIMENSION IMPACT ACCOUNTING
  10. 10. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun WATER EOP Industrial Irrigated Agriculture People Use Polluted Polluted Water Rain River Reservoir Replenishment Rain / Water Flows Resource Depletion Environmental Degradation Polluted Polluted Water Polluted Water Fresh Mining & Industry Fresh Polluted Water Water from regular flows People Use Drives Everything Net Water Use Mined old water BOP Old water EOP Old water
  11. 11. PEOPLE drive everything because both agriculture and industry operate to produce the food and 'stuff' needed to maintain a modern lifestyle and quality of life. MULTI DIMENSION IMPACT ACCOUNTING
  12. 12. SO … what are the elements of the WATER CYCLE? Without WATER, a person is dead in less than three days. In a major drought, plants die, then animals and then people. Huge amounts of water are needed to grow almost everything. Huge amounts of water are needed to make almost everything. MULTI DIMENSION IMPACT ACCOUNTING
  13. 13. MULTI DIMENSION IMPACT ACCOUNTING SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun DROUGHT Crops fail
  14. 14. MULTI DIMENSION IMPACT ACCOUNTING SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun DROUGHT Camel carcass … Horn of Africa
  15. 15. MULTI DIMENSION IMPACT ACCOUNTING SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun DROUGHT Dead animals … Horn of Africa
  16. 16. The CHALLENGES To use water in a more efficient way so that: ● We have water we need for people; ● We have water to grow what we need; ● We have water to produce what we need To end water pollution from human activities: ● Runoff from agriculture; ● Effluent from urban areas; ● Wastewater from industrial activities; ● Domestic wastewater. MULTI DIMENSION IMPACT ACCOUNTING
  17. 17. WATER, a product of NATURE ● Purified by natural systems; ● Historically a 'free' good; ● Now, increasingly there are shortages; ● Essential for all forms of life; People die after 3 days with no water ● Huge amounts used in agriculture; ● Huge amounts used in industrial operations; ● And lots of wastewater and pollution issues to be addressed MULTI DIMENSION IMPACT ACCOUNTING
  18. 18. The next slide: WATER … Perhaps the most VALUABLE substance on the planet. MULTI DIMENSION IMPACT ACCOUNTING
  19. 19. MULTI DIMENSION IMPACT ACCOUNTING WATER DRINKING WATER SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital SunSunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  20. 20. The next 2 slides: BOTTLED WATER … One of the most PROFITABLE products on the planet … … as long as external negative IMPACTS are ignored MULTI DIMENSION IMPACT ACCOUNTING
  21. 21. MULTI DIMENSION IMPACT ACCOUNTING WATER BOTTLED WATER SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  22. 22. MULTI DIMENSION IMPACT ACCOUNTING WATER BOTTLED WATER SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  23. 23. The next slides: Freshwater ... ● Lakes; ● Rivers; ● Rain. Saltwater ... ● Oceans MULTI DIMENSION IMPACT ACCOUNTING “Water, water, everywhere … and not a drop to drink”
  24. 24. MULTI DIMENSION IMPACT ACCOUNTING SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun WATER - LAKES
  25. 25. MULTI DIMENSION IMPACT ACCOUNTING SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun WATER – RIVERS / STREAMS
  26. 26. MULTI DIMENSION IMPACT ACCOUNTING SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun WATER – RIVERS / STREAMS
  27. 27. MULTI DIMENSION IMPACT ACCOUNTING SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun WATER - RAIN
  28. 28. MULTI DIMENSION IMPACT ACCOUNTING SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun WATER - RAIN
  29. 29. MULTI DIMENSION IMPACT ACCOUNTING SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun WATER - OCEAN
  30. 30. The next slides: Water Shortages ● Dry river in Pakistan; ● Nearly empty reservoir in California ● Collecting water in North Kenya; ● Waiting for water in Myanmar. MULTI DIMENSION IMPACT ACCOUNTING
  31. 31. MULTI DIMENSION IMPACT ACCOUNTING WATER WATER SHORTAGE Pakistan … 2009 SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  32. 32. MULTI DIMENSION IMPACT ACCOUNTING WATER WATER SHORTAGE California … 2014 SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  33. 33. MULTI DIMENSION IMPACT ACCOUNTING WATER COLLECTING WATER SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  34. 34. MULTI DIMENSION IMPACT ACCOUNTING WATER COLLECTING WATER Myanmar … 2011 SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  35. 35. The next slides: Too much water … floods MULTI DIMENSION IMPACT ACCOUNTING
  36. 36. MULTI DIMENSION IMPACT ACCOUNTING WATER FLOODS Myanmar … 2011 SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  37. 37. MULTI DIMENSION IMPACT ACCOUNTING WATER FLOODS SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  38. 38. The next slides: Flood control measures ● River Thames in London; ● Dam in China; ● Dam in USA. MULTI DIMENSION IMPACT ACCOUNTING
  39. 39. MULTI DIMENSION IMPACT ACCOUNTING WATER FLOOD CONTROL Thames barrage SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  40. 40. MULTI DIMENSION IMPACT ACCOUNTING WATER FLOOD CONTROL SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  41. 41. MULTI DIMENSION IMPACT ACCOUNTING WATER FLOOD CONTROL SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  42. 42. 2 ISSUES … ● Quantity of water ● Quality of water MULTI DIMENSION IMPACT ACCOUNTING
  43. 43. WATER POLLUTION MULTI DIMENSION IMPACT ACCOUNTING
  44. 44. WATER is an amazing solvent … and this is a huge problem because water dissolves both good things and very bad things. MULTI DIMENSION IMPACT ACCOUNTING
  45. 45. WATER POLLUTION comes from: Personal use … gray water; Storm water run off; Agriculture run off; Industrial process effluents; Industrial process leakages; Abandoned mines; Seepage from land fill (waste). MULTI DIMENSION IMPACT ACCOUNTING
  46. 46. WATER POLLUTION examples ... ● Polluted rivers … solid waste; ● Industrial waste water; ● Abandoned mines runoff; ● Deforestation; ● Sediment laden river in China MULTI DIMENSION IMPACT ACCOUNTING
  47. 47. MULTI DIMENSION IMPACT ACCOUNTING WATER RIVER POLLUTION … SOLID WASTE River Ganges in IndiaSunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  48. 48. MULTI DIMENSION IMPACT ACCOUNTING WATER INDUSTRIAL WATER POLLUTION SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  49. 49. MULTI DIMENSION IMPACT ACCOUNTING WATER ABANDONED MINE RUN-OFF SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  50. 50. MULTI DIMENSION IMPACT ACCOUNTING WATER DEFORESTATION SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  51. 51. MULTI DIMENSION IMPACT ACCOUNTING WATER SEDIMENT LADEN RIVER SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  52. 52. REMEDIATION MULTI DIMENSION IMPACT ACCOUNTING
  53. 53. MULTI DIMENSION IMPACT ACCOUNTING ELEMENTS OF WATER TREATMENT SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  54. 54. MULTI DIMENSION IMPACT ACCOUNTING NATURAL WATER TREATMENT REMEDIATING ABANDONED MINE DRAINAGE Pennsylvania SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  55. 55. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun EOPWater enters a stream … but is this clean water?
  56. 56. The WATER dimension of the socio-enviro-economic system depends on the characteristics of the water sources in the PLACE … the rainfall, the streams and rivers, the aquifers and their replenishment. MULTI DIMENSION IMPACT ACCOUNTING
  57. 57. PROCESSES that use WATER should be efficient in the context of the PLACE. Post PROCESS water should not pollute the environment. MULTI DIMENSION IMPACT ACCOUNTING
  58. 58. Next … WATER CYCLE graphics ... MULTI DIMENSION IMPACT ACCOUNTING
  59. 59. MULTI DIMENSION IMPACT ACCOUNTING WATER WATER FLOW SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  60. 60. MULTI DIMENSION IMPACT ACCOUNTING SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  61. 61. MULTI DIMENSION IMPACT ACCOUNTING SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  62. 62. MULTI DIMENSION IMPACT ACCOUNTING SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  63. 63. MULTI DIMENSION IMPACT ACCOUNTING Values in 1000 cubic km/yr SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  64. 64. MULTI DIMENSION IMPACT ACCOUNTING Values in 1000 cubic km/yr SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun Nitrogen cycle
  65. 65. MULTI DIMENSION IMPACT ACCOUNTING SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  66. 66. MULTI DIMENSION IMPACT ACCOUNTING Link to: University-of-Michigan ... The-Global-Water-and-Nitrogen-Cycles WATER CYCLE A very readable paper about the WATER CYCLE is this from the University of Michigan …
  67. 67. The STOCK of WATER Cubic Kilometers Rocks (not usable) Oceans (97.4% of usable water) Ice Groundwater Lakes and Rivers Atmosphere (vapor) MULTI DIMENSION IMPACT ACCOUNTING 150,000,000 1,350,000,000 27,500,000 15,300,000 25,000 13,000
  68. 68. MULTI DIMENSION IMPACT ACCOUNTING SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun A huge amount of water … but most is not potable
  69. 69. IF ½ OF THE ICE MELTED, this would result in a 26.2 metre rise in sea level … about 86 feet! Cubic Kilometers Total ice 50% of ice = Square kilometers Surface area of the oceans Metres Sea level rise (average) MULTI DIMENSION IMPACT ACCOUNTING 27,500,000 13,750,000 360,000,000 26.2
  70. 70. USES FOR WATER MULTI DIMENSION IMPACT ACCOUNTING
  71. 71. The main uses for WATER: Personal use … hydration; Personal use … washing, cooking, etc; Personal use … landscaping, etc; Agriculture … irrigation; Agriculture … livestock husbandry; Industrial process … manufacturing; Natural process support; Water transport losses; MULTI DIMENSION IMPACT ACCOUNTING
  72. 72. The main sources of WATER: Rain, rivers and surface reservoirs; Underground aquifers; Deep old water aquifers; Desalination systems. MULTI DIMENSION IMPACT ACCOUNTING
  73. 73. Unlike oil and gas, there is no 'man built' system of logistics to move water around the world. MULTI DIMENSION IMPACT ACCOUNTING
  74. 74. Transport of water is readily justified based on value … but not easily justified with the cost and pricing constructs that are usually used in financial analysis* MULTI DIMENSION IMPACT ACCOUNTING * See MDIA discussion on Bottled Water
  75. 75. FINANCIAL AND IMPACT ACCOUNTING FOR WATER MULTI DIMENSION IMPACT ACCOUNTING
  76. 76. So … how to do the accounting for impact for water? MULTI DIMENSION IMPACT ACCOUNTING
  77. 77. The amount paid for water is in the financial accounts. It is likely that the quantity of water going into the process is also recorded as a 'memo' item. MULTI DIMENSION IMPACT ACCOUNTING
  78. 78. It is less likely that the quantity of water leaving the process is recorded. Both the quantity of the water leaving the process and the quality of the water is required. MULTI DIMENSION IMPACT ACCOUNTING
  79. 79. The IMPACT is a function of these PROCESS parameters: … the consumption of fresh water i.e. fresh water in less water out; … the quantity of the water out; … and the quality of the water out. MULTI DIMENSION IMPACT ACCOUNTING
  80. 80. The IMPACT is also a function of water sources in the PLACE: The availability of water from sources that are replenished naturally (local rain, rivers etc.) The stocks of ancient water that may be mined MULTI DIMENSION IMPACT ACCOUNTING
  81. 81. And the IMPACT is also a function of water needs in the PLACE: The essential needs for PEOPLE use; Less less essential needs for PEOPLE; The needs of AGRICULTURE; The needs of INDUSTRY. MULTI DIMENSION IMPACT ACCOUNTING
  82. 82. … the next slide is a graphic that puts much of this into the MDIA framework … MULTI DIMENSION IMPACT ACCOUNTING
  83. 83. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Rain WATER EOP River Reservoir Old water Industrial Irrigated Agriculture People Use Fresh Water Mined Fresh Water Total Fresh Water Into Use IN IN Polluted Polluted Water Rain River Reservoir Old water Replenishment Rain / Water Flows Resource Depletion Environmental Degradation Polluted Polluted Water Polluted Water Fresh Mining & Industry Fresh Polluted Water
  84. 84. The value of RESOURCE DEPLETION associated with the mining of old water that does not replenish has to be quantified ... MULTI DIMENSION IMPACT ACCOUNTING
  85. 85. … and the reason for the agriculture and the industrial production is so that PEOPLE have the food and 'stuff' they need to maintain their lifestyle. MULTI DIMENSION IMPACT ACCOUNTING
  86. 86. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun WATER EOP Industrial Irrigated Agriculture People Use Polluted Polluted Water Rain River Reservoir Replenishment Rain / Water Flows Resource Depletion Environmental Degradation Polluted Polluted Water Polluted Water Fresh Mining & Industry Fresh Polluted Water Water from regular flows People Use Drives Everything Net Water Use Mined old water BOP Old water EOP Old water
  87. 87. Next step … QUANTIFICATION The next step is to quantify the VALUE of old water that is mined … the quantification of resource depletion; and To quantify the IMPACT or VALUE DESTRUCTION associated with fresh water becoming contaminated. There are 1012 litres in a cubic kilometer of water A US gallon equals approximately 3.785 litres. MULTI DIMENSION IMPACT ACCOUNTING
  88. 88. Units of Measure … There are 1012 litres in a cubic kilometer A US gallon equals approximately 3.785 litres MULTI DIMENSION IMPACT ACCOUNTING
  89. 89. Water Value depends on the situation … … and the situation varies from place to place and the STATE of the water in the place. MULTI DIMENSION IMPACT ACCOUNTING
  90. 90. WATER DEPLETION If the VALUE (TrueValueWater or 'tvw') of water is defined as follows: The value of 1 (one) litre of fresh water = 1tvw Then the VALUE of resource depletion in tvw will be the product of: Number of litres mined X 1 MULTI DIMENSION IMPACT ACCOUNTING
  91. 91. WATER DEGRADATION When the cost of remediating degraded water to fresh is $5 per litre Then the IMPACT of resource degradation will be: Litres degraded X $5 MULTI DIMENSION IMPACT ACCOUNTING
  92. 92. AND … When toxic water gets into freshwater (watershed or groundwater) the IMPACT may be quantified by reference to the amount of water impacted and the cost of full remediation of this amount of water Litres impacted X ($ remediation cost/litre) MULTI DIMENSION IMPACT ACCOUNTING
  93. 93. AND … To the extent that toxic water contaminates freshwater (watershed or groundwater) the IMPACT may also be quantified by reference to the amount of land impacted, the amount of groundwater impacted and the people population impacted. This is important because many business operations choose to ignore these matters when they are in remote locations with weak regulatory regime MULTI DIMENSION IMPACT ACCOUNTING
  94. 94. AND in addition … To the extent that toxic water reaches estuaries and other important ecosystems and natural habitats, the IMPACT should be quantified by reference to the damage being done to ALL the living systems. MULTI DIMENSION IMPACT ACCOUNTING
  95. 95. AND lastly … To the extent that toxic water reaches the oceans the IMPACT should be quantified by reference to the damage being done to this ecosystem. MULTI DIMENSION IMPACT ACCOUNTING
  96. 96. SOME INTERIM OBSERVATIONS: It is urgent that some form of numbering and quantification is applied to water … the flow and the state. The idea of 'standard values' can help in the quantification process … this is an important next step … stay tuned! MULTI DIMENSION IMPACT ACCOUNTING
  97. 97. REMINDER This slideset is A WORK-IN-PROGRESS. It will be upgraded periodically. It is part of a series of more than 50 slidesets. Navigation to all of these is available here: FEEDBACK is welcome. Please email to Peter Burgess … peterbnyc@gmail.com … with a catchy phrase in the subject line so that it gets attention, and please identify the specific slideset(s) involved. This explanation is version v150801. The most current text is available at: MULTI DIMENSION IMPACT ACCOUNTING http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=txt00010199 http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=N1-Slidesets-p3
  98. 98. THANK YOU Some links and contact information: Peter Burgess … peterbnyc@gmail.com Peter Burgess LinkedIn profile https://www.linkedin.com/in/peterburgess1 Link to TrueValueMetrics.org website http://www.truevaluemetrics.org/ Link to navigation to other slides in this series: MULTI DIMENSION IMPACT ACCOUNTING http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=N1-Slidesets-p3

×