1. MULTI DIMENSION IMPACT ACCOUNTING File:
MDIA-p3-03-PLACE-150705.odp Peter Burgess (c) All rights reserved
MDIA PLACE EVERYTHING HAPPENS IN A PLACE
2. MULTI DIMENSION IMPACT ACCOUNTING WORK-IN-PROGRESS. SLIDESET
STILL IN DEVELOPMENT. UPDATES WILL BE POSTED OVER THE NEXT SEVERAL
WEEKS
3. PLACE Where people live Where people work Where mines,
factories are located Where part of the supply chain is located
Where retail stores are located Where resources are depleted Where
environment is degraded Where ecosystems operate MULTI DIMENSION
IMPACT ACCOUNTING
4. PLACE is also ... The universe; The planet earth; Multi
country regions; Individual countries; Individual states, counties
or parishes; Cities, towns, municipalities; Communities and
neighborhoods. MULTI DIMENSION IMPACT ACCOUNTING
5. PLACE has permanence - it doesn't move or disappear I grew
up in Okehampton, a small town in the South- West of England. In
the 1930s the populations was around 3,500, in the 1950s a little
over 4,000 and in the 11th century in the hundreds according to the
Domesday Book compiled by William the Conqueror. PLACE is a very
good place to measure PROGRESS and PERFORMANCE. MULTI DIMENSION
IMPACT ACCOUNTING
6. ALL economic activity is located in a PLACE MULTI DIMENSION
IMPACT ACCOUNTING
7. Performance of a PLACE is the result of aggregation of all
the economic activity located in the place MULTI DIMENSION IMPACT
ACCOUNTING
8. PLACE is complex but a whole lot simpler that the
socio-enviro-economic system at the national or global (planet)
level. The follow slides will give you an idea ... MULTI DIMENSION
IMPACT ACCOUNTING
9. MULTI DIMENSION IMPACT ACCOUNTING
10. MULTI DIMENSION IMPACT ACCOUNTING
11. MULTI DIMENSION IMPACT ACCOUNTING
12. Data and analysis at the level of community, town or city
(PLACE) is a whole lot more effective than data and decision making
higher up the system. The follow slide shows this ... MULTI
DIMENSION IMPACT ACCOUNTING
13. MULTI DIMENSION IMPACT ACCOUNTING
14. PLACE reflects ALL the dimensions of the
Socio-Enviro-Economic system The follow slides are a reminder of
the elements of this complex system ... MULTI DIMENSION IMPACT
ACCOUNTING
15. MULTI DIMENSION IMPACT ACCOUNTING Sun Fundamentals of the
Socio-Enviro-Economic SystemBOP 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
EOP
16. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial
Capital Human Capital Man Built Capital Natural Capital Sun SunSun
Financial Capital Human Capital Man Built Capital Natural Capital
Sun EOP BOP = Beginning of Period STATE EOP = End of Period STATE
PROGRESS is Change in STATE during the period. ALL the elements of
the BOP and EOP STATES need to be quantified PEOPLE PROGRESS when
MY STATE and EVERYONE'S STATE improves AND there is little
degradation of NATURAL CAPITAL SOCIO-ENVIRO-ECONOMIC SYSTEM AND In
addition little degradation of MAN BUILT CAPITAL AND PLACE is where
all of this comes together
17. MULTI DIMENSION IMPACT ACCOUNTING ELEMENTS OF THE SYSTEM by
SEGMENT Financial Capital Human Capital Man Built Capital Natural
Capital Sun Financial Capital Human Capital Man Built Capital
Natural Capital MoneyFood Nature (life) Sun Nature (life) Capital
Market Value Water Nature (life)Land Shelter WaterClothes Nature
(life)Air Health Ecoservices Education Skills Recreation Culture
Physical capital Religion Knowledge capital Security Energy
Mobility Profit Physical capital Physical capital Social
capital
18. MULTI DIMENSION IMPACT ACCOUNTING FOCUS ON PLACE and the
PLACE PERSPECTIVE
19. All the activities and impacts of PEOPLE are located in a
PLACE MULTI DIMENSION IMPACT ACCOUNTING
20. 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 Person uses money to satisfy needs Food Water Shelter
Clothing Recreation etc Person Lives Eats Drinks Is protected Has
clothes Recreates etc Person contributes time, energy and talent:
to family; to friends; to society; to employer. Person thrives
Family thrives Friends thrive Society thrives Impact metrics update
social capital Organization thrives money metrics update financial
capital Consumption impacts Man Built Capital and Natural Capital
through supply chain, use and post use waste chain. Impact metrics
update MBC and Natural Capital Activities and Impact of a Person
Activities Person Impact External Impact Person Works Value to
employer Uses time and skill Earns money
21. The PLACE has a relationship with the power of the SUN ...
MULTI DIMENSION IMPACT ACCOUNTING
22. 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 The energy for everything has come from the sun. Fossil fuels
are the result of ancient photo- synthesis. The sun possesses
enough energy to power the future, but we do not know how best to
fund such a change using conventional analysis. Sun About the
SunAbout the Sun
23. and there are elements of NATURAL CAPITAL in the PLACE ...
MULTI DIMENSION IMPACT ACCOUNTING
24. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial
Capital Human Capital Man Built Capital Natural Capital Sun SunSun
Financial Capital Human Capital Man Built Capital Natural Capital
Sun Nature (life) Land Water Air pollution Ecoservices GHG
emissions About Natural Capital EOP
25. as well as various elements of MAN BUILT CAPITAL ... MULTI
DIMENSION IMPACT ACCOUNTING
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 Institutional Capital Physical Capital Knowledge Capital Social
Capital Financial Capital About Man Built Capital
27. Because PLACE does not move it is always in the same
physical location it is an ideal entity for the measurement of
PROGRESS and PERFORMANCE MULTI DIMENSION IMPACT ACCOUNTING
28. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial
Capital Human Capital Man Built Capital Natural Capital Sun SunSun
Financial Capital Human Capital Man Built Capital Natural Capital
Sun EOP EFFICIENCY AND EFFECTIVENESS Reference see MDIA - CORE
CONCEPTS
29. The STATE of a PLACE at any moment in time is a function of
the past (history), the present, and the future MULTI DIMENSION
IMPACT ACCOUNTING
30. it is an aggregation of the STATE of each and everyone of
the PEOPLE in the PLACE and aggregation of these PEOPLE
characteristics ... MULTI DIMENSION IMPACT ACCOUNTING
31. 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 Genetic makeup About Human CapitalSTATE is a function of Past,
Present and Future Our nurturing Our surroundings Our education Our
health care The Past Our food Our water Present Future Accumulated
past The present value of the future The situation in the present
Opportunities based on the characteristics of the PLACE
Opportunities based on the capabilities of the individual
32. 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 Human Capital Food Water Shelter Clothes Health Education
Skills Recreation Culture Religion Security Energy Mobility Our
genetic makeup About Human CapitalA Person's Past Our nurturing Our
surroundings Our education Our health care Our food Our water
33. How does the PLACE perform with respect to ALL of these
aspects of a PERSON'S QUALITY OF LIFE? MULTI DIMENSION IMPACT
ACCOUNTING
34. 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 Wellness STATE Quality of Life Capabilities Financial wealth
Housing Surroundings Wellness State of health is a major
determinant of quality of life. With good health, everything is
possible, without good health, much less. A big part of wellness is
determined by lifestyle what we eat and drink and how we exercise
Family and friends Community Opportunities Security
35. 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 Capabilities Capabilities are enhanced by education and skill
training. They are also enhanced by lifetime learning. STATE
Quality of Life Wellness Capabilities Financial wealth Housing
Surroundings Family and friends Community Opportunities
Security
36. 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 Wealth A modest amount of financial wealth, enough to
provide financial security is valuable and reduces stress
enormously. A vast amount of financial wealth adds rather little to
quality of life but does give bragging rights in a money centric
society STATE Quality of Life Wellness Capabilities Financial
wealth Housing Surroundings Family and friends Community
Opportunities Security
37. 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 Housing An adequate amount of shelter is a basic need. STATE
Quality of Life Wellness Capabilities Financial wealth Housing
Surroundings Family and friends Community Opportunities
Security
38. 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 Surroundings Surroundings matter especially for children.
Children learn from their surroundings. STATE Quality of Life
Wellness Capabilities Financial wealth Housing Surroundings Family
and friends Community Opportunities Security
39. 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 Security Security being safe is important to quality of life
STATE Quality of Life Wellness Capabilities Financial wealth
Housing Surroundings Family and friends Community Opportunities
Security
40. 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 Family and friends Family and friends are central to quality of
life because, above all else, people are social beings STATE
Quality of Life Wellness Capabilities Financial wealth Housing
Surroundings Family and friends Community Opportunities
Security
41. 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 Community Community is something beyond family and friends.
Community is place, and where there is access to the goods and
services that are needed. Community is where there is access to
education and health services, to utilities, etc STATE Quality of
Life Wellness Capabilities Financial wealth Housing Surroundings
Family and friends Community Opportunities Security
42. 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 Opportunities Capability on its own is not enough. There also
must be opportunity, and this is usually beyond the scope of an
individual STATE Quality of Life Wellness Capabilities Financial
wealth Housing Surroundings Family and friends Community
Opportunities Security
43. How the PLACE performs with respect to ALL aspects of a
PERSON'S QUALITY OF LIFE is the critical measure of the performance
of a PLACE. MULTI DIMENSION IMPACT ACCOUNTING
44. The PLACE is constrained by the NATURAL CAPITAL of the
PLACE ... MULTI DIMENSION IMPACT ACCOUNTING
45. My first memory of PLACE in my formal economics training
was to do with LOCATION OF INDUSTRY and the fact that almost all
the old great cities were located at the mouths of great rivers
something clearly to do with the NATURAL CAPITAL of the PLACE MULTI
DIMENSION IMPACT ACCOUNTING
46. Typically human habitation requires LAND and the living of
life by PEOPLE does damage to many or all of the elements that make
up our NATURAL CAPITAL Doing the least damage to NATURAL CAPITAL
must be a metric in the analysis of PROGRESS and PERFORMANCE. MULTI
DIMENSION IMPACT ACCOUNTING
47. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial
Capital Human Capital Man Built Capital Natural Capital Sun SunSun
Financial Capital Human Capital Man Built Capital Natural Capital
Sun Nature (life) Land Water Air pollution Ecoservices GHG
emissions About Natural Capital EOP
48. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial
Capital Human Capital Man Built Capital Natural Capital Sun SunSun
Financial Capital Human Capital Man Built Capital Natural Capital
Sun Nature (life) Land Water Air pollution Ecoservices GHG
emissions About nature (life) Nature (life) Biodiversity The
amazing story of evolution and the diversity that has emerged
EOP
49. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial
Capital Human Capital Man Built Capital Natural Capital Sun SunSun
Financial Capital Human Capital Man Built Capital Natural Capital
Sun Nature (life) Land Water Air pollution Ecoservices GHG
emissions About ecoservices Ecoservices Nature is extremely
complex, but it is balanced with a place for everything and
everything it its place. Ecosystem services provide photosynthesis,
nitrogen fixing, carbon sequestration, and EOP
50. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial
Capital Human Capital Man Built Capital Natural Capital Sun SunSun
Financial Capital Human Capital Man Built Capital Natural Capital
Sun Nature (life) Land Water Air pollution Ecoservices GHG
emissions About air pollution Air pollution People and man built
structures and systems pollute the air which in turn degrades
quality of life. This has become a major issue in urban centers
around the world. EOP
51. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial
Capital Human Capital Man Built Capital Natural Capital Sun SunSun
Financial Capital Human Capital Man Built Capital Natural Capital
Sun Nature (life) Land Water Air pollution Ecoservices GHG
emissions About GHG emissions GHG Emissions Green House Gas (GHG)
emissions like CO2, CH4 and others cause global warming, which is
having impact on weather patterns and other systems. The natural
ecosystem service capacity is not enough to balance the emissions
originating from man built systems EOP
52. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial
Capital Human Capital Man Built Capital Natural Capital Sun SunSun
Financial Capital Human Capital Man Built Capital Natural Capital
Sun Nature (life) Land Water Air pollution Ecoservices GHG
emissions About Land Land Land is a limiting factor with many
competing uses. Natural processes and ecosystem services require
land and so do man built structures and systems EOP
53. MULTI DIMENSION IMPACT ACCOUNTING Sun BOP Sun Financial
Capital Human Capital Man Built Capital Natural Capital Sun SunSun
Financial Capital Human Capital Man Built Capital Natural Capital
Sun Nature (life) Land Water Air pollution Ecoservices GHG
emissions About Water Water Water is a also a limiting factor and
essential for life and many man built processes. There is abundant
water but only limited fresh water. Some places have abundant
natural water, other places have water shortage EOP
54. It is MAN BUILT CAPITAL in its many forms that makes it
possible for PEOPLE to have a good QUALITY OF LIFE and STANDARD OF
LIVING MAN BUILT CAPITAL should enable the highest QUALITY OF LIFE
for PEOPLE while doing the least damage to NATURAL CAPITAL MULTI
DIMENSION IMPACT ACCOUNTING
55. 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 Institutional Capital Physical Capital Knowledge Capital Social
Capital Financial Capital About Man Built Capital
56. Institutional Capital comprises: Government Departments and
Agencies; A framework of law; Systems of law enforcement and
justice; Security capacities; Corporate organizations; Health
systems; Education systems; etc. MULTI DIMENSION IMPACT
ACCOUNTING
57. 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 Institutional Capital Physical Capital Knowledge Capital Social
Capital Financial Capital About Man Built Capital Institutional
Capital Government, Rule of Law, Companies, Organizations. Systems
for: Health Education, Banking, Social Services, Security,
etc.
58. Physical Capital Some of this is owned by Corporate
Organizations, some by Private People and some by the Public
Sector. Ownership has been a key feature of modern capitalism and
is worthy of more study and understanding. MULTI DIMENSION IMPACT
ACCOUNTING
59. Physical Capital comprises: Infrastructure; Factories;
Machinery and equipment; Transports vehicles (ships, aircraft,
trucks, railcars, etc.); Houses and apartments; Offices, hotels and
commercial buildings; Computers, etc. MULTI DIMENSION IMPACT
ACCOUNTING
60. 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 Institutional Capital Physical Capital Knowledge Capital Social
Capital Financial Capital About Man Built Capital Physical Capital
Commercial buildings, Factory buildings, Housing, Stores, Machinery
and equipment, Vehicles, Infrastructure: Roads and bridges
Railroads Seaports and airports Communications Water and sewer
Electricity, Oil and Gas, Hospitals, Schools. etc.
61. Knowledge Capital What we know enables productivity and
performance. Some of this is shared universally and is available
for free use, and some is owned by Individuals and Business
entities and may be used for their private gain at the expense of
society as a whole. MULTI DIMENSION IMPACT ACCOUNTING
62. Knowledge Capital Knowledge Capital is expanding rapidly
faster than at any previous time in history. Important parts of
Knowledge Capital have been created with Government funds, often
for military and security purposes. MULTI DIMENSION IMPACT
ACCOUNTING
63. 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 Institutional Capital Physical Capital Knowledge Capital Social
Capital Financial Capital About Man Built Capital Knowledge Capital
Mathematics Physics Biology Chemistry Science of materials Computer
science Information technology Biotechnology Artificial
intelligence Robotics
64. Social Capital comprises: Networks of friends and family;
Community; Culture; Religion; Community people; Community access to
services; Social safety net; etc. MULTI DIMENSION IMPACT
ACCOUNTING
65. 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 Institutional Capital Physical Capital Knowledge Capital Social
Capital Financial Capital About Man Built Capital Social Capital
Relationships Human interaction Teamwork Religion Culture
History
66. Financial Capital is part of Man Built Capital but
separated out for the purpose of analysis because it has become
such an important part of the conventional way of measuring
specifically (1) business profit; (2) capital market valuations;
and, (3) GDP growth. MULTI DIMENSION IMPACT ACCOUNTING
67. 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 WHAT IS THIS? Future flows of profit determine capital market
valuation. Change becomes an Increment to financial capital. This
is the making of fictional or virtual wealth Debits and credits of
money result in profit which Increments financial capital About
Financial Capital Money Stocks and Bonds Ownership of Securities
Real Estate Ownership of Physical Assets Ownership of Assets
Ownership of Debt In the end, all FC is owned by people WHICH OF
THESE IS RIGHT?
68. The BUSINESS ORGANIZATION is a key driver of PROGRESS and
PERFORMANCE in a PLACE but this is only achieved when BUSINESS
takes into consideration the EXTERNALITIES. MULTI DIMENSION IMPACT
ACCOUNTING
69. Maximizing for PROFIT is not enough the GOOD IMPACTS and
the BAD IMPACTS on PEOPLE and NATURAL CAPITAL must also be brought
into account MULTI DIMENSION IMPACT ACCOUNTING
70. The next 4 slides STATE BOP ACTIVITY ACCOUNTING STATE EOP
Financial accounting: Financial accounting plus GOOD impacts;
Financial accounting minus BAD impacts; Financial accounting with
BOTH impacts. MULTI DIMENSION IMPACT ACCOUNTING
71. MULTI DIMENSION IMPACT ACCOUNTING Sun FINANCIAL ACCOUNTS
Financial Accounts describe Economic Activity 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 File: MDIA-Framework-004-150411-WIP.odp Peter
Burgess (c) All rights reserved Sun Financial Capital Human Capital
Man Built Capital Natural Capital Sun SunSun Financial Capital
Human Capital Man Built Capital Natural Capital Sun
72. MULTI DIMENSION IMPACT ACCOUNTING Sun FINANCIAL ACCOUNTS
ADD positive impact not accounted for 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? POSITIVE IMPACT NOT ACCOUNTED FOR File:
MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights
reserved Financial Capital Human Capital Man Built Capital Natural
Capital Sun Sun Financial Capital Human Capital Man Built Capital
Natural Capital Sun
73. MULTI DIMENSION IMPACT ACCOUNTING Sun FINANCIAL ACCOUNTS
DEDUCT negative impact not accounted for 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 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 File: MDIA-Framework-004-150411-WIP.odp
Peter Burgess (c) All rights reserved Financial Capital Human
Capital Man Built Capital Natural Capital Sun Sun Financial Capital
Human Capital Man Built Capital Natural Capital Sun
74. MULTI DIMENSION IMPACT ACCOUNTING Sun FINANCIAL ACCOUNTS
ACCOUNTING FOR EVERYTHING 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 Financial Capital Human Capital Man
Built Capital Natural Capital Sun Sun Financial Capital Human
Capital Man Built Capital Natural Capital Sun
75. The next slide shows how the operations of a process: (1)
through the FINANCIAL 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
76. 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
77. 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
78. Decision makers for the PLACE ... The accounting for
decisions for the PLACE should have a similar form to that of a
BUSINESS. The accounting should include BOTH the financial
dimension AND the impact on both the PEOPLE and NATURAL CAPITAL.
MULTI DIMENSION IMPACT ACCOUNTING
79. 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
80. PUBLIC FINANCE ... Funding for the PROGRESS of a PLACE
should be based on PROGRESS for PEOPLE rather than on the
prevailing Money Models PUBLIC FINANCE should be enabling the
building and maintenance of MAN BUILT CAPITAL (such as
INFRASTRUCTURE) so that PEOPLE progress and NATURAL CAPITAL does
not suffer degradation but is remediated. MULTI DIMENSION IMPACT
ACCOUNTING
81. GLOBAL CRISIS ... The funding systems for PLACE are a
shambles with the results that investment in a better future for
PEOPLE is being constrained in ways that put the future at risk.
More than half the world's population live in PLACES where basic
services are either non- existent or inadequate. MULTI DIMENSION
IMPACT ACCOUNTING
82. This a systemic failure that should not have been possible
and much of the blame for this rests with the FINANCIAL COMMUNITY
that is using an outdated system of metrics to make very big
decisions. Metrics that look at the PROGRESS and PERFORMANCE of
PLACE, with a view that embraces SOCIETY (PEOPLE) and the
ENVIRONMENT (PLANET) as well as MONEY (PROFIT) is a step in the
right direction. MULTI DIMENSION IMPACT ACCOUNTING
83. Follow up: Request for Feedback Getting these ideas fleshed
out into a clear, simple but comprehensive structure is a big job
and remains a work-in- progress. Many organizations are making
progress with this, but there is no broad universal framework yet
that will enable all the pieces to come together and work
efficiently. I would like to get feedback from anyone and everyone
to help move this initiative forward. While I have some clear
concepts about much of this architecture, there are many details
that I do not know enough about and need help. So, please feel free
to contact me ([email protected]). Please put something relevant
and catchy in the subject line. MULTI DIMENSION IMPACT
ACCOUNTING
84. Some links and contact information: Peter Burgess
[email protected] 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