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

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. MULTI DIMENSION IMPACT ACCOUNTING
WORK-IN-PROGRESS.
SLIDESET STILL IN DEVELOPMENT.
UPDATES WILL BE POSTED OVER
THE NEXT SEVERAL WEEKS

3. Socio-Enviro-Economic
or
PEOPLE, ENVIRONMENT
and MAN-BUILT CAPITAL
MULTI DIMENSION IMPACT ACCOUNTING

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. The next slide shows:
PEOPLE
MORE THAN 7 BILLION NOW AND GROWING
MULTI DIMENSION IMPACT ACCOUNTING

6. MULTI DIMENSION IMPACT ACCOUNTING

7. The next slide shows:
ENVIRONMENT
SUN, PLANET EARTH, FAUNA and FLORA
MULTI DIMENSION IMPACT ACCOUNTING

8. MULTI DIMENSION IMPACT ACCOUNTING

9. The next slides shows:
MAN-BUILT CAPITAL
GOVERNMENT, CITIES, INDUSTRY
AND A LOT MORE
MULTI DIMENSION IMPACT ACCOUNTING

10. MULTI DIMENSION IMPACT ACCOUNTING

11. MULTI DIMENSION IMPACT ACCOUNTING

12. MULTI DIMENSION IMPACT ACCOUNTING

13. MULTI DIMENSION IMPACT ACCOUNTING

14. MULTI DIMENSION IMPACT ACCOUNTING

15. MULTI DIMENSION IMPACT ACCOUNTING

16. HISTORY …
HOW THE THREE SEGMENTS HAVE
CHANGED OVER TIME
MULTI DIMENSION IMPACT ACCOUNTING

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. MULTI DIMENSION IMPACT ACCOUNTING
Hum
an
Capital
Man
Built Capital
Natural Capital

19. MULTI DIMENSION IMPACT ACCOUNTING
Hum
an
Capital
Man
Built Capital
Natural Capital

20. MULTI DIMENSION IMPACT ACCOUNTING
Hum
an
Capital
Man
Built Capital
Natural Capital

21. MULTI DIMENSION IMPACT ACCOUNTING
Hum
an
Capital
Man
Built Capital
Natural Capital

22. MULTI DIMENSION IMPACT ACCOUNTING
Hum
an
Capital
Man
Built Capital
Natural Capital

23. MULTI DIMENSION IMPACT ACCOUNTING
Hum
an
Capital
Man
Built Capital
Natural Capital

24. Trajectory to disaster!
This must be changed
to this …
MULTI DIMENSION IMPACT ACCOUNTING

25. MULTI DIMENSION IMPACT ACCOUNTING
Hum
an
Capital
Man
Built Capital
Natural Capital

26. PEOPLE progressing
MBC* efficient
PLANET healthy
MULTI DIMENSION IMPACT ACCOUNTING
* Man Built Capital … Man Built Structures and Systems

27. To manage change there
have to be METRICS for
ALL the components of
the system.
MULTI DIMENSION IMPACT ACCOUNTING

28. This is the background for
MULTI DIMENSION
IMPACT ACCOUNTING
(MDIA)
MULTI DIMENSION IMPACT ACCOUNTING

29. MDIA tracks impact on
ALL* the components of
the system …
MULTI DIMENSION IMPACT ACCOUNTING
* Not just the money based financial metrics

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. MDIA builds on double
entry and the concept of
state and flow …
MULTI DIMENSION IMPACT ACCOUNTING

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. MULTI DIMENSION IMPACT ACCOUNTING
STEADY STATE

34. MULTI DIMENSION IMPACT ACCOUNTING
POSITIVE PROGRESS

35. MULTI DIMENSION IMPACT ACCOUNTING
DETERIORATION OF STATE

36. These reflect …
● Steady state;
● Positive progress; and
● Deterioration of state
MULTI DIMENSION IMPACT ACCOUNTING

37. No information about the activities is needed
in order to understand PROGRESS
… only information about changes in STATE
MULTI DIMENSION IMPACT ACCOUNTING

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. MULTI DIMENSION IMPACT ACCOUNTING
EFFICIENCY AND EFFECTIVENESS

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. 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. 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. 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. 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. 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