Mdia p3-01-socio-enviro-economic-150420

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Mdia p3-01-socio-enviro-economic-150420

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Mdia p3-01-socio-enviro-economic-150420

  1. 1. The Global SOCIO-ENVIRO-ECONOMIC System MULTI DIMENSION IMPACT ACCOUNTING File: MDIA-p3-01-3-SOCIO-ENVIRO-ECONOMIC-150420.odp Peter Burgess (c) All rights reserved
  2. 2. MULTI DIMENSION IMPACT ACCOUNTING WORK-IN-PROGRESS. SLIDESET STILL IN DEVELOPMENT. UPDATES WILL BE POSTED OVER THE NEXT SEVERAL WEEKS
  3. 3. Socio-Enviro-Economic or PEOPLE, ENVIRONMENT and MAN-BUILT CAPITAL MULTI DIMENSION IMPACT ACCOUNTING
  4. 4. 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! MULTI DIMENSION IMPACT ACCOUNTING
  5. 5. The next slide shows: PEOPLE MORE THAN 7 BILLION NOW AND GROWING MULTI DIMENSION IMPACT ACCOUNTING
  6. 6. MULTI DIMENSION IMPACT ACCOUNTING
  7. 7. The next slide shows: ENVIRONMENT SUN, PLANET EARTH, FAUNA and FLORA MULTI DIMENSION IMPACT ACCOUNTING
  8. 8. MULTI DIMENSION IMPACT ACCOUNTING
  9. 9. The next slides shows: MAN-BUILT CAPITAL GOVERNMENT, CITIES, INDUSTRY AND A LOT MORE MULTI DIMENSION IMPACT ACCOUNTING
  10. 10. MULTI DIMENSION IMPACT ACCOUNTING
  11. 11. MULTI DIMENSION IMPACT ACCOUNTING
  12. 12. MULTI DIMENSION IMPACT ACCOUNTING
  13. 13. MULTI DIMENSION IMPACT ACCOUNTING
  14. 14. MULTI DIMENSION IMPACT ACCOUNTING
  15. 15. MULTI DIMENSION IMPACT ACCOUNTING
  16. 16. HISTORY … HOW THE THREE SEGMENTS HAVE CHANGED OVER TIME MULTI DIMENSION IMPACT ACCOUNTING
  17. 17. YELLOW: The PEOPLE piece … Human Capital (NC) DIRTY BROWN: The ECONOMIC piece … Man Built Capital (MBC) GREEN: NATURE, ENVIRONMENT … Natural Capital (NC) MULTI DIMENSION IMPACT ACCOUNTING COLOR KEY
  18. 18. MULTI DIMENSION IMPACT ACCOUNTING Hum an Capital Man Built Capital Natural Capital
  19. 19. MULTI DIMENSION IMPACT ACCOUNTING Hum an Capital Man Built Capital Natural Capital
  20. 20. MULTI DIMENSION IMPACT ACCOUNTING Hum an Capital Man Built Capital Natural Capital
  21. 21. MULTI DIMENSION IMPACT ACCOUNTING Hum an Capital Man Built Capital Natural Capital
  22. 22. MULTI DIMENSION IMPACT ACCOUNTING Hum an Capital Man Built Capital Natural Capital
  23. 23. MULTI DIMENSION IMPACT ACCOUNTING Hum an Capital Man Built Capital Natural Capital
  24. 24. Trajectory to disaster! This must be changed to this … MULTI DIMENSION IMPACT ACCOUNTING
  25. 25. MULTI DIMENSION IMPACT ACCOUNTING Hum an Capital Man Built Capital Natural Capital
  26. 26. PEOPLE progressing MBC* efficient PLANET healthy MULTI DIMENSION IMPACT ACCOUNTING * Man Built Capital … Man Built Structures and Systems
  27. 27. To manage change there have to be METRICS for ALL the components of the system. MULTI DIMENSION IMPACT ACCOUNTING
  28. 28. This is the background for MULTI DIMENSION IMPACT ACCOUNTING (MDIA) MULTI DIMENSION IMPACT ACCOUNTING
  29. 29. MDIA tracks impact on ALL* the components of the system … MULTI DIMENSION IMPACT ACCOUNTING * Not just the money based financial metrics
  30. 30. MULTI DIMENSION IMPACT ACCOUNTING Sun Fundamentals of the Socio-Enviro-Economic System Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital SunSunSun Man Built Capital Natural Capital Sun Human Capital Add Sun … the source of all energy Split out Financial Capital from other components of Man Built Capital Reorder because Financial Capital metrics exist
  31. 31. MDIA builds on double entry and the concept of state and flow … MULTI DIMENSION IMPACT ACCOUNTING
  32. 32. MULTI DIMENSION IMPACT ACCOUNTING These 3 slides explain the concept of STATE and FLOW … or in accounting terms, the BALANCE SHEET / PROFIT AND LOSS relationship …
  33. 33. MULTI DIMENSION IMPACT ACCOUNTING STEADY STATE
  34. 34. MULTI DIMENSION IMPACT ACCOUNTING POSITIVE PROGRESS
  35. 35. MULTI DIMENSION IMPACT ACCOUNTING DETERIORATION OF STATE
  36. 36. These reflect … ● Steady state; ● Positive progress; and ● Deterioration of state MULTI DIMENSION IMPACT ACCOUNTING
  37. 37. No information about the activities is needed in order to understand PROGRESS … only information about changes in STATE MULTI DIMENSION IMPACT ACCOUNTING
  38. 38. 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. MULTI DIMENSION IMPACT ACCOUNTING
  39. 39. MULTI DIMENSION IMPACT ACCOUNTING EFFICIENCY AND EFFECTIVENESS
  40. 40. MULTI DIMENSION IMPACT ACCOUNTING Sun STATE … Beginning of Period - BOP STATE … End of Period - EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun FLOWS* ACTIVITIES* PROCESSES* * Any amount of complexity … STATE remains simple
  41. 41. MULTI DIMENSION IMPACT ACCOUNTING Sun Fundamentals of the Socio-Enviro-Economic SystemBOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital 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 determine everything. NC is infinitely complex and resilient and will outlast everything Man Built … and People are unlikely to survive in a future mass extinction that is quite certain. The source of ALL energy to drive the system
  42. 42. 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. MULTI DIMENSION IMPACT ACCOUNTING
  43. 43. MULTI DIMENSION IMPACT ACCOUNTING ELEMENTS OF THE SYSTEM by SEGMENT Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun Financial Capital Human Capital Man Built Structures & Systems Natural Capital Money FoodGovernmentNature (life) Sun Nature (life) Capital Market Value Water Laws. RulesNature (life)Land Shelter InfrastructureWater Clothes IndustryNature (life)Air Health MiningEcoservices Education Energy Skills Waste RecreationRetail Culture Logistics Religion Knowledge Technology Security Energy Mobility Profit
  44. 44. Moving forward … Request for collaboration Money 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 … peterbnyc@gmail.com MULTI DIMENSION IMPACT ACCOUNTING
  45. 45. 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 for MDIA slidesets http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=list0200-Burgess-p3-Slidesets MULTI DIMENSION IMPACT ACCOUNTING

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