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MDIA The role of FOOD in quality of life

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The role of FOOD in quality of life is important and complex. The most important dimension of food is the impact it has on quality of life, but at the same time there are other dimensions of which the profit dimension has been very important. Financial metrics give measures of profit, but there are no easy measures for the impact that food is having on the many dimensions of natural capital.

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MDIA The role of FOOD in quality of life

  1. 1. MULTI DIMENSION IMPACT ACCOUNTING File: MDIA-p3-05-FOOD-150629.odp Peter Burgess (c) All rights reserved MDIA FOOD
  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. FOOD is a very large part of the global economy … important for society and with a substantial environmental footprint. MULTI DIMENSION IMPACT ACCOUNTING
  4. 4. MULTI DIMENSION IMPACT ACCOUNTING THE PURPOSE OF FOOD
  5. 5. The PURPOSE of FOOD FOOD is essential for people to live. Without FOOD people starve to death. MULTI DIMENSION IMPACT ACCOUNTING
  6. 6. MULTI DIMENSION IMPACT ACCOUNTING FOOD ISSUES – FOOD SHORTAGE SunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  7. 7. But too much food … and the wrong food results in obesity. Especially when it is coupled with a sedentary life style. MULTI DIMENSION IMPACT ACCOUNTING
  8. 8. 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 FOOD ISSUES – FOOD ABUNDANCE
  9. 9. MULTI DIMENSION IMPACT ACCOUNTING FOOD ISSUES – FOOD ABUNDANCE SunSun EOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital SunSunSun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  10. 10. Good food … and exercise … is the formula for wellness MULTI DIMENSION IMPACT ACCOUNTING
  11. 11. MULTI DIMENSION IMPACT ACCOUNTING Sun WELLNESS – LIFESTYLE - EXERCISE Sun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  12. 12. … especially for children MULTI DIMENSION IMPACT ACCOUNTING
  13. 13. MULTI DIMENSION IMPACT ACCOUNTING Sun WELLNESS – LIFESTYLE – EXERCISE especially for children Sun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun
  14. 14. MULTI DIMENSION IMPACT ACCOUNTING INDUSTRIAL SCALE PRODUCTION
  15. 15. MULTI DIMENSION IMPACT ACCOUNTING Sun FOOD ISSUES Sun BOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun FEED LOT BEEF
  16. 16. MULTI DIMENSION IMPACT ACCOUNTING Sun FOOD ISSUES Sun BOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun FEED LOT BEEF
  17. 17. MULTI DIMENSION IMPACT ACCOUNTING Sun FOOD ISSUES Sun BOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun BATTERY CHICKEN
  18. 18. MULTI DIMENSION IMPACT ACCOUNTING Sun FOOD ISSUES Sun BOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun BATTERY CHICKEN
  19. 19. MULTI DIMENSION IMPACT ACCOUNTING ENVIRONMENTAL FOOTPRINT
  20. 20. MULTI DIMENSION IMPACT ACCOUNTING IMPACT ON WATER
  21. 21. MULTI DIMENSION IMPACT ACCOUNTING Sun FOOD ISSUES Sun BOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun IRRIGATION
  22. 22. MULTI DIMENSION IMPACT ACCOUNTING Sun FOOD ISSUES Sun BOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun IRRIGATION
  23. 23. MULTI DIMENSION IMPACT ACCOUNTING Sun FOOD ISSUES Sun BOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun IRRIGATION
  24. 24. MULTI DIMENSION IMPACT ACCOUNTING Sun FOOD ISSUES Sun BOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun PALM OIL PLANTATION
  25. 25. MULTI DIMENSION IMPACT ACCOUNTING Sun FOOD ISSUES Sun BOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun PALM OIL DEFORESTATION
  26. 26. MULTI DIMENSION IMPACT ACCOUNTING FOOD CYCLE
  27. 27. MULTI DIMENSION IMPACT ACCOUNTING Sun FOOD ISSUES Sun BOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun FOOD CYCLE
  28. 28. MULTI DIMENSION IMPACT ACCOUNTING Sun FOOD ISSUES Sun BOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun FOOD CYCLE
  29. 29. MULTI DIMENSION IMPACT ACCOUNTING Sun FOOD ISSUES Sun BOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun FOOD CYCLE
  30. 30. MULTI DIMENSION IMPACT ACCOUNTING Credit: Daniel Hood, Project Director, Agritech Media - Nexasphere Platform
  31. 31. MULTI DIMENSION IMPACT ACCOUNTING INDUSTRY PERSPECTIVE
  32. 32. The FOOD industry ● A growing number of very large food companies; ● Agriculture increasingly dominated by corporate farms; ● Technology supported monoculture a big part of modern food production; ● MULTI DIMENSION IMPACT ACCOUNTING
  33. 33. FOOD industry pollution ● River pollution from farmland runoff containing residues of pesticides, fertilizer and other chemicals; ● Chemical residues on and in the crops; ● MULTI DIMENSION IMPACT ACCOUNTING
  34. 34. FOOD industry and WATER ● There is a growing shortage of water, and the agriculture sector is the world's largest user of water; ● Without water for irrigation, food crop production would be much smaller; ● In recent decades water for irrigation has been 'mined' to enable agriculture … examples are Israel, Libya and California ● Water pollution is being caused by farm runoff containing agricultural chemicals. MULTI DIMENSION IMPACT ACCOUNTING
  35. 35. MULTI DIMENSION IMPACT ACCOUNTING PRODUCT PERSPECTIVE
  36. 36. FOOD is a PRODUCT Used by people to live their lives; Made by companies; Inputs to economic activities; Outputs from economic activities; Flows through a supply chain; Has impact during use; Has impact post use in the waste chain; Product links everything. MULTI DIMENSION IMPACT ACCOUNTING
  37. 37. GOOD FOODS for wellness ● Food is an important part of living, but the impact of different foods on wellness varies a lot; ● Freshly cooked vegetables tend to be very good; ● Processed foods containing ingredients like sugar and sugar substitutes tend to be bad; ● Variety is good; ● Nutrition density is an emerging metric. MULTI DIMENSION IMPACT ACCOUNTING
  38. 38. FOOD impacts on HEALTH ● Food provides nutrition that is essential to life; ● Foods that contain sugar in all of its forms contribute to many bad health outcomes; ● There is an understanding that micronutrients are important for good health. Similarly microtoxins detract from good health; ● Fresh food is usually better than processed food; MULTI DIMENSION IMPACT ACCOUNTING
  39. 39. MEAT versus VEGETABLES ● The money cost of meat is much higher than most vegetables simply because the rearing of livestock takes longer and requires more inputs. ● There may be a taste advantage with meat, but the nutrition and wellness benefit of vegetables is just as high, or higher. ● The environmental impact of meat production is much greater than for vegetables MULTI DIMENSION IMPACT ACCOUNTING
  40. 40. FISH and SEAFOOD ● Fish and seafood are healthy foods; ● The environmental impact of eating fish or seafood depends on the specie and where it came from; ● Many resources are over-exploited; ● Many fish farms are located in places which result in environmental damage. MULTI DIMENSION IMPACT ACCOUNTING
  41. 41. MULTI DIMENSION IMPACT ACCOUNTING Sun The IMPACT of FOOD Sun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun WASTE IN THE LIFE CYCLE OF FOOD
  42. 42. MULTI DIMENSION IMPACT ACCOUNTING FOOD WASTE
  43. 43. A lot of FOOD is wasted: ● It is wasted on farms; ● It is wasted during post harvest transport, storage and processing; ● It is wasted in supermarkets and shops; ● It is wasted in restaurants; ● It is wasted in household kitchens, and on the dining room table. According to UNEP in 2010, about 1/3 of all food produced for human consumption is wasted … some 1.3 billion tons a year MULTI DIMENSION IMPACT ACCOUNTING
  44. 44. MULTI DIMENSION IMPACT ACCOUNTING TRUEVALUE IMPACT ACCOUNTING
  45. 45. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun Sun Financial Capital Human Capital Man Built Capital 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 FINANCIAL ACCOUNTING
  46. 46. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP 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 Funds government. Good value to society. POSITIVE IMPACT NOT ACCOUNTED FOR Financial Capital Human Capital Man Built Capital Natural Capital Sun Sun Financial Capital Human Capital Man Built Capital 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 FINANCIAL ACCOUNTING PLUS GOOD IMPACT
  47. 47. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP EOP 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 Negative impact Financial Capital Human Capital Man Built Capital Natural Capital Sun Sun Financial Capital Human Capital Man Built Capital 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 FINANCIAL ACCOUNTING LESS BAD IMPACT
  48. 48. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP 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 Funds government. Good 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 Capital Natural Capital Sun Sun Financial Capital Human Capital Man Built Capital 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 FINANCIAL ACCOUNTING PLUS GOOD & BAD
  49. 49. The next slide shows how the operations of a process: (1) through the money P&L report impact on the money balance sheet of the operation; and, (2) through the IMPACT accounts report on the impact the operation is having on society and the environment. MULTI DIMENSION IMPACT ACCOUNTING
  50. 50. 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 Financial Accounts describe Financial Impact Financial Costs Financial Profit Financial Revenues Financial Balance Sheet BOP Financial Balance Sheet EOP Impact Accounts reflect Externalities Balance Sheet Changes Impact on Institutions Impact on People Impact on Society Impact on Physical Impact on Knowledge Impact on Resources Impact on Environment Impact on EcoSystem Balance Sheet Changes Balance Sheet Changes Balance Sheet Changes
  51. 51. 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 Financial Accounts describe Financial Impact Financial Costs Financial Profit Financial Revenues Financial Balance Sheet BOP Financial Balance Sheet EOP Impact Accounts reflect Externalities Balance Sheet Changes Impact on Institutions Impact on People Impact on Society Impact on Physical Impact on Knowledge Impact on Resources Impact on Environment Impact on EcoSystem Balance Sheet Changes Balance Sheet Changes Balance Sheet Changes
  52. 52. MULTI DIMENSION IMPACT ACCOUNTING Sun FOOD Activities Individual QoL Individual QoL Use of Pesticides Use of Land The IMPACT of FOOD Use of Water Use of Fertilizers Air Pollution Use of Growth Hormones and Antibiotics Use of Energy Use of Equipment Use of Labor Inputs Money Price Money Profit Money Cost True Value Value Add True Cost Sun BOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun
  53. 53. MULTI DIMENSION IMPACT ACCOUNTING Sun FOOD Activities Individual QoL Individual QoL What FOOD to BUY or NOT-TO-BUY Sun BOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun Money Price Money Profit Money Cost True Value Total Value Add True Cost Perceived Value User Value Add Money Price The USER or CONSUMER PERSPECTIVE The SOCIAL or TOTAL TRUE PERSPECTIVE The BUSINESS or CORPORATE PERSPECTIVE
  54. 54. MULTI DIMENSION IMPACT ACCOUNTING Sun The FOOD Dynamic Use Energy for cooking Get Nutrition Sun BOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun Buy Food Cook Food Eat Food SUPPLY CHAIN Energy Fertilizers Pesticides Land Water Air Labor Growth Hormones Equipment Organization Know How Light Transportation INPUTS Heat Mechanization Food storage Antibiotics Use MoneyFinancial Accounts Revenues Money Costs Pays taxes Profit Degrade Land GHG emissions Water pollution Packaging Wears out Public infrastructure Human Capital Private Business Public Commons Impact Accounts Impact on PEOPLE Impact on NATURAL CAPITAL Wears out Physical Capital
  55. 55. 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
  56. 56. 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

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