TVA p3 00 WASTE 151010

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WASTE is one of the biggest opportunities for improved performance in the modern SOCIO-ENVIRO-ECONOMIC system. Waste does not have much of a cost in conventional accounting, but the true cost of waste taking into account the impact on the environment, the huge.

The conventional incentives for better performance encourage consumption, but only measure this at the point of sale ... the waste all the way through the product life cycle are ignored.

Cleaning up the processes so that there is no production of waste should be a priority ... a getting consumers not to waste in another thing that needs to be done.

Waste is causing untold pollution on land, in rivers and now also in the oceans. This is not the way man built systems should be functioning, and it must be fixed.

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TVA p3 00 WASTE 151010

  1. 1. MULTI DIMENSION IMPACT ACCOUNTING File: MDIA-p3-06-WASTE-150420.odp Peter Burgess (c) All rights reserved MDIA POST USE WASTE CHAIN
  2. 2. MULTI DIMENSION IMPACT ACCOUNTING WORK-IN-PROGRESS. SLIDESET STILL IN DEVELOPMENT. UPDATES WILL BE POSTED OVER THE NEXT SEVERAL WEEKS
  3. 3. WASTE ● Waste happens because the system is not working, e.g. food spoilage; ● Waste happens because people are thoughtless and lazy; ● Waste happens because production process technology results in waste; ● Waste happens because companies care about costs but not much about impact on the environment. MULTI DIMENSION IMPACT ACCOUNTING
  4. 4. 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 Land Fill
  5. 5. 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 Food Waste
  6. 6. 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 Electronic Waste
  7. 7. 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 Plastic bottles
  8. 8. 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 Plastic bottles
  9. 9. 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 Plastic waste
  10. 10. 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 Beach waste
  11. 11. COMPANIES MAKE WASTE ● By how their PRODUCTS are designed; ● By how their marketing and advertising operates to get people to buy more than they need; ● By how their performance MIS puts a big emphasis on PROFIT without considering PEOPLE and PLANET MULTI DIMENSION IMPACT ACCOUNTING
  12. 12. PROCESSES produce WASTE ● The processes that transform inputs into products produce more or less waste; ● The use of most energy types results ● in various forms of waste pollution. MULTI DIMENSION IMPACT ACCOUNTING
  13. 13. PRODUCT results in WASTE ● The design of a PRODUCT has a role in reducing waste; ● Decisions about manufacturing PROCESS and SUPPLY CHAIN have a role in waste mitigation; ● The way PEOPLE use PRODUCT has a role in waste; ● The way PEOPLE discard PRODUCT and PACKAGING and the manner of recycling impact waste. MULTI DIMENSION IMPACT ACCOUNTING
  14. 14. PEOPLE MAKE WASTE ● By how they buy PRODUCTS without any reference to the related waste; ● By how they use PRODUCTS with little consideration of the associated waste; ● By how they discard PRODUCTS after use; ● By buying too much; ● By throwing away half used products; ● By sloppy recycling or none at all. MULTI DIMENSION IMPACT ACCOUNTING
  15. 15. SYSTEMIC ISSUES ● Conventional metrics ignore all costs of waste; ● There are few incentives to reduce waste; ● Recycling is usually inconvenient; ● More sales produces more PROFIT, while more sales producing more waste is ignored. MULTI DIMENSION IMPACT ACCOUNTING
  16. 16. ATMOSPHERIC WASTES The atmosphere is a convenient dumping ground. There are many different components: ● Greenhouse gases; ● Particulates; ● Sulphur dioxide and acid rain; ● Nitrous oxides and automobile pollution; ● Natural atmospheric pollution (e.g.volcanoes); ● Aerosol propellants. MULTI DIMENSION IMPACT ACCOUNTING
  17. 17. GREENHOUSE GASES The Kyoto Protocol cover emissions of these six main greenhouse gases: ● Carbon dioxide (CO2); ● Methane (CH4); ● Nitrous oxide (N2O); ● Hydrofluorocarbons (HFCs); ● Perfluorocarbons (PFCs); and ● Sulphur hexafluoride (SF6). SHAME: The US did not sign the accord and Canada subsequently withdrew its agreement MULTI DIMENSION IMPACT ACCOUNTING
  18. 18. WASTEWATER ● Conventional metrics ignore all costs of waste; ● MULTI DIMENSION IMPACT ACCOUNTING
  19. 19. SOLID WASTE ● Conventional metrics ignore all costs of waste; ● MULTI DIMENSION IMPACT ACCOUNTING
  20. 20. WASTE in the ENERGY CYCLE ● Air pollution has a bad impact on health and wellness, e.g.; ● Urban smog containing particulates and noxious compounds creates respiratory problems; ● Rural cooking on open fires. ● Water pollution … bad impact; ● Polluted water carries many water borne diseases including cholera, dysentery and others; ● Solid Waste; ● Dangerous toxins in solid waste migrate into the supply chain for food, potable water, etc. MULTI DIMENSION IMPACT ACCOUNTING
  21. 21. WASTE in the FOOD CYCLE ● Air pollution has a bad impact on health and wellness, e.g.; ● Urban smog containing particulates and noxious compounds creates respiratory problems; ● Rural cooking on open fires. ● Water pollution … bad impact; ● Polluted water carries many water borne diseases including cholera, dysentery and others; ● Solid Waste; ● Dangerous toxins in solid waste migrate into the supply chain for food, potable water, etc. MULTI DIMENSION IMPACT ACCOUNTING
  22. 22. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun SunSun Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun FINANCIAL ACCOUNTS DESCRIBE ECONOMIC ACTIVITY IN FINANCIAL OR MONEY TERMS WHILE COMPLETELY IGNORING IMPACT ON EVERYTHING ELSE
  23. 23. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Sun Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun SunSun Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun Financial Accounts describe Economic Activity Financial Costs Financial Profit Financial Revenues Financial Balance Sheet BOP Financial Balance Sheet EOP
  24. 24. MULTI DIMENSION IMPACT ACCOUNTING Sun Financial Accounts describe Economic ActivityBOP EOP Sun Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun SunSun Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun FINANCIAL P&L ACCOUNT REVENUES Products Sold X Price Products Bought X Price Energy Bought X Price Employee Benefits Employee Payroll Other expenditures Asset use costs Depreciation Financial expenses Pro-good expenditures Taxation PROFIT COSTS
  25. 25. MULTI DIMENSION IMPACT ACCOUNTING Sun ACCOUNTING FOR EVERYTHINGBOP EOP REVENUES Products Sold X Price VALUE to buyer Equals HUMAN CAPITAL ADD Wages and benefits What value to employee? Pro-good expenditures What value to society? Taxation What value to society? For products and energy bought and this process Free use of the commons and public services & infrastructure Degradation of land Water scarcity and degradation Air pollution: Impact on people Air pollution: Impact on climate Air pollution: Impact on people Solid waste Resource depletion Environmental Degradation POSITIVE IMPACT NOT ACCOUNTED FOR Negative impact Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun Sun Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun FINANCIAL P&L ACCOUNT REVENUES Products Sold X Price Products Bought X Price Energy Bought X Price Employee Benefits Employee Payroll Other expenditures Asset use costs Depreciation Financial expenses Pro-good expenditures Taxation PROFIT COSTS
  26. 26. 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 Recycling
  27. 27. SUPPLY CHAIN / LIFE CYCLE ● Waste happens at every stage of the supply chain ● Waste happens in every production process; ● Waste happens during the use of a product; ● Waste happens when a product is thrown away. MULTI DIMENSION IMPACT ACCOUNTING
  28. 28. MULTI DIMENSION IMPACT ACCOUNTING PRODUCT … the SUPPLY CHAIN Zero to start Costs this stage Profit this stage Price this stage Zero to start Costs this stage Profit this stage Price Stage 1 FINANCIAL ACCOUNTS EACH STEP OF THE SUPPLY CHAIN Cost = Price stage 1 Costs Stage 2 Profit Stage 2 Cum Costs Cum Profit Price Stage 2 Cost = Price stage 2 Costs Stage 3 Profit Stage 3 Cum Costs Cum Profit Price Stage 3 Cost = Price stage 3 Costs Stage 4 Profit Stage 4 Cum Costs Cum Profit Price Stage 4 Cost = Price stage 4 Costs Stage 5 Profit Stage 5 Cum Costs Cum Profit Price Stage 5 Cost = Price stage 4 Costs Stage 5 Profit Stage 5 Cum Costs Cum Profit Price Stage 5 ETC...
  29. 29. MULTI DIMENSION IMPACT ACCOUNTING MBSS Natural Capital Human Capital PRODUCT … the SUPPLY CHAIN ADJUSTMENTS TO REFLECT IMPACT (EXTERNALITIES) Zero to start Costs this stage Profit this stage Price this stage Zero to start Costs this stage Profit this stage Price Stage 1 FINANCIAL ACCOUNTS EACH STEP OF THE SUPPLY CHAIN Cost = Price stage 1 Costs Stage 2 Profit Stage 2 Impact Stage 1 Impact Stage 1 Impact Stage 1 Cum Costs Cum Profit Price Stage 2 Impact Stage 2 Impact Stage 2 Impact Stage 2 Cum Impact Cum Impact Cum Impact Cost = Price stage 2 Costs Stage 3 Profit Stage 3 Cum Costs Cum Profit Price Stage 3 Impact Stage 3 Impact Stage 3 Impact Stage 3 Cum Impact Cum Impact Cum Impact Financial Dimension
  30. 30. 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

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