SIZE MATTERS-5

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SIZE MATTERS 5 ... IMPACTS
A workshop at MIT to link mathematics with the realities of a very complex global integrated socio-enviro-economic system that has been very badly served by money as a metric and a dangerously simplified financial system.

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SIZE MATTERS-5

  1. 1. SIZE MATTERS 5 - IMPACTS File: TVA-p3-01-SIZE-MATTERS-2-160220.odp Peter Burgess (c) All rights reserved TRUE VALUE ACCOUNTING
  2. 2. CONTEXT This slideset is a Work-in-Progress and will be updated from time to time. It is part of a series that aims to enable better metrics for the complex socio-enviro-economic system that we all live in. Metrics are powerful, but they must be the right metrics. TRUE VALUE ACCOUNTING
  3. 3. IMPACTS are the result of decisions that are made by people. Change has to be driven by every human being making better decisions. TRUE VALUE ACCOUNTING
  4. 4. The Socio-Enviro-Economic System is very complex, and in this situation, small decisions can have a big IMPACT and in ways that are difficult to anticipate accurately. TRUE VALUE ACCOUNTING
  5. 5. The system has these components: ● Human Capital; ● Financial Capital; ● Man Built Capital*; and ● Natural Capital and each of these is made up of many elements all of which are inter-connected in some way … * Sometimes referred to as MBSS – Man Built Structures and Systems TRUE VALUE ACCOUNTING
  6. 6. ELEMENTS OF THE SYSTEM by SEGMENT Financial Capital Human Capital Man Built Structures & Systems Natural Capital MoneyFood Government Nature (life) Sun Nature (life) Capital Market Value Water Laws. Rules Nature (life)Land Shelter Infrastructure WaterClothes Industry Nature (life)Air Health Mining Ecoservices Education EnergySkills Waste Recreation Retail Culture LogisticsReligion Knowledge Technology Security Energy Mobility Profit TRUE VALUE ACCOUNTING SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun
  7. 7. Human activity … man built structures and systems … change the STATE of the elements of the system along these lines … TRUE VALUE ACCOUNTING
  8. 8. Resource extraction which depletes resources Super Rich Industrial Mining Energy Government Not-for-Profit Paperwork Banking Water Air EcoServices Habitat Law Minerals Energy Land Buildings and infrastructure do good but degrade environment Products are used to enhance Quality of Life for People Financial Losses and Profits Renewables Waste creation and its use as a resource Sun STATE Beginning of Period Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun STATE End of Period Employment contributes to Society … unemployment destroys TRUE VALUE ACCOUNTING SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun Industrial Mining Energy Government Not-for-Profit Paperwork Banking Water Air EcoServices Habitat Law Minerals Energy Land Degradation or Improvement Quality of Life Degradation or improvement of the environment BoP Affluent Super Rich BoP Affluent Impact of Activities Bad Impact Good Impact
  9. 9. The next series of slides ... STATE BOP … ACTIVITY … STATE EOP Shows how an individual optimizes his/her performance relative to quality of life … but at the same time is having a lot of impact on everything else. TRUE VALUE ACCOUNTING
  10. 10. ACTIVITIES OF AN INDIVIDUAL Input of Human Capital: Time, Effort, Skill, Ability, Knowledge Improves Society Improves MBSS Pro Good Activities Buy and Use PRODUCTS e.g. Food, Energy Shelter, Transport Pro Money Activities e.g. Paid Work Non-Impact Recreation Financial Capital Human Capital Man Built Structures & Systems Natural Capital Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun Improves QoL and Human Capital WASTE Liquid Gases Solids Natural Capital Depleted Maybe improves FC in HC Financial Capital Human Capital Man Built Capital Natural Capital Sun INPUTS ACTIVITIES BAD Impact State-EOPState-BOP GOOD Impact Use of MBSS Use of Natural Capital Use of Solar TRUE VALUE ACCOUNTING
  11. 11. Job-Money Work Housing Health Time Skills Income Recreation Education ProGood Work Energy PLUS opportunities Improves society Food Clothes Resource Depletion Environmental Degradation BOP EOPThe Individual Sun BOP Financial Capital Human Capital Man Built Capital Natural Capital Sun PERSONAL ASSETS Energy Health Enjoyment Skills Experience Family Shelter Friends Money Stuff QUALITY OF LIFE Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun PERSONAL ASSETS Energy Health Enjoyment Skills Experience Family Shelter Friends Money Stuff QUALITY OF LIFE PRODUCTS use MBSS PRODUCTS Impact NC PRODUCTS Use MBSS PRODUCTS improve QOL TRUE VALUE ACCOUNTING
  12. 12. Sun Small decisions by people make all the differenceBOP EOP Sun Financial Capital Human Capital Man Built Capital Natural Capital Sun SunSun Financial Capital Human Capital Man Built Capital Natural Capital Sun MEWHAT I BUY WHERE I WORK WHERE I LIVE The supply chain for PRODUCTS HOW I USE THINGS The post use waste chain Decisions about what I buy or don't buy are of great importance! TRUE VALUE ACCOUNTING
  13. 13. Sun 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 Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun Good food improves wellness Wellness improves quality of life INPUTS ACTIVITIES BAD Impact GOOD Impact TRUE VALUE ACCOUNTING
  14. 14. Sun Use of Land The IMPACT of ENERGY Use of Water Use of Finite Resources Air Pollution 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 Capital Natural Capital Sun SunSun EOP Financial Capital Human Capital Man Built Capital Natural Capital Sun Good food improves wellness Wellness improves quality of life Undue influence and corruption Land and water pollution INPUTS ACTIVITIES BAD Impact GOOD Impact TRUE VALUE ACCOUNTING
  15. 15. Sun LAND USE Sustainable agriculture Water purification About LAND USE Wetlands Intensive monoculture Coastal mangrove Urban infrastructure Roads, Parking Lots There is a limited amount of land There are multiple possible uses Money Profit Land is a factor in improving human capital, producing goods and services, locating MBSS, and providing very critical ecosystem services Suburban sprawl Housing Tropical forest Habitat Industrial operations File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved 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 TRUE VALUE ACCOUNTING
  16. 16. Sun WATER USE Food production uses water Beverage production uses water About WATER USE Water is essential to LIFE Nothing is more important Household water use essential Industrial processes use water Rainfall and fresh water are abundant in some places but not everywhere Household waste also pollutes Waste water pollution from processes a critical issue Important for all processes to treat water before discharge Water is abundant, but most has too much dissolved salts to be potable 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 TRUE VALUE ACCOUNTING
  17. 17. Sun EMISSIONS SO2 … acid rain CO2-Greenhouse Gas About ATMOSPHERIC POLLUTION Air pollution has many forms, all of which are more or less detrimental to people and planet Particulates MH4-Methane-GHG Some emissions have a direct impact on health Nitrous oxides Freon-ozone layer damage Some emissions are greenhouse gases that cause global warming The atmosphere is not an infinite free dump for undesirable and toxic emissions All emissions have a 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 TRUE VALUE ACCOUNTING
  18. 18. MBSS Man-Built Structures & Systems Sun Natural Capital FINANCIAL ACCOUNTSHuman Capital MBSS Man-Built Structures & Systems Sun Natural Capital Human Capital Economic Activity … Process Accounts REVENUES Products Sold X Price Products Bought X Price BOP EOP Energy Bought X Price Employee Benefits Employee Payroll Other expenditures Asset use costs Depreciation Financial expenses Pro-good expenditures Taxation Profit 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 TRUE VALUE ACCOUNTING
  19. 19. THIS SLIDESET IS 5 OF 5 SIZE MATTERS 1 … OVERVIEW http://www.slideshare.net/PeterBurgess2/size-matters1 SIZE MATTERS 2 … KEY CONCEPTS http://www.slideshare.net/PeterBurgess2/size-matters2 SIZE MATTERS 3 … SYSTEM CYCLES http://www.slideshare.net/PeterBurgess2/size-matters3 SIZE MATTERS 4 … PERSPECTIVES http://www.slideshare.net/PeterBurgess2/size-matters4 SIZE MATTERS 5 … IMPACTS TRUE VALUE ACCOUNTING
  20. 20. REMINDER This slideset is A WORK-IN-PROGRESS. It will be upgraded periodically. It is part of a series of more than 100 slidesets. Navigation to these is available here: http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=N1-Slidesets-p3 More about the True Value Metrics initiative is at: http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=list0100-MainNav 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) or webpage involved. TRUE VALUE ACCOUNTING
  21. 21. THANK YOU Some links and contact information: Email 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 resources: http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=list0100-MainNav#1 TRUE VALUE ACCOUNTING

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