Download - Mdia p3-01-socio-enviro-economic-150420
The GlobalSOCIO-ENVIRO-ECONOMIC
System
MULTI DIMENSION IMPACT ACCOUNTING
File: MDIA-p3-01-3-SOCIO-ENVIRO-ECONOMIC-150420.odp Peter Burgess (c) All rights reserved
MULTI DIMENSION IMPACT ACCOUNTING
WORK-IN-PROGRESS.SLIDESET STILL IN DEVELOPMENT.UPDATES WILL BE POSTED OVER
THE NEXT SEVERAL WEEKS
Socio-Enviro-Economicor
PEOPLE, ENVIRONMENT and MAN-BUILT CAPITAL
MULTI DIMENSION IMPACT ACCOUNTING
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
The next slide shows: PEOPLE
MORE THAN 7 BILLION NOW AND GROWING
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
The next slide shows: ENVIRONMENT
SUN, PLANET EARTH, FAUNA and FLORA
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
The next slides shows: MAN-BUILT CAPITAL
GOVERNMENT, CITIES, INDUSTRY AND A LOT MORE
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
HISTORY … HOW THE THREE SEGMENTS HAVE CHANGED OVER TIME
MULTI DIMENSION IMPACT ACCOUNTING
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
MULTI DIMENSION IMPACT ACCOUNTING
Human Capita
l
Man Built
Capital
Natural Capita
l
MULTI DIMENSION IMPACT ACCOUNTING
Human Capita
l
Man Built
Capital
Natural Capita
l
MULTI DIMENSION IMPACT ACCOUNTING
Human Capita
l
Man Built
Capital
Natural Capita
l
MULTI DIMENSION IMPACT ACCOUNTING
Human Capita
l
Man Built
Capital
Natural Capita
l
MULTI DIMENSION IMPACT ACCOUNTING
Human Capita
l
Man Built
Capital
Natural Capita
l
MULTI DIMENSION IMPACT ACCOUNTING
Human Capita
l
Man Built
Capital
Natural Capita
l
Trajectory to disaster!
This must be changed to this …
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
Human Capita
l
Man Built
Capital
Natural Capita
l
PEOPLE progressing
MBC* efficient
PLANET healthy
MULTI DIMENSION IMPACT ACCOUNTING
* Man Built Capital … Man Built Structures and Systems
To manage change there have to be METRICS for ALL the components of
the system.
MULTI DIMENSION IMPACT ACCOUNTING
This is the background for MULTI DIMENSION
IMPACT ACCOUNTING(MDIA)
MULTI DIMENSION IMPACT ACCOUNTING
MDIA tracks impact on ALL* the components of
the system …
MULTI DIMENSION IMPACT ACCOUNTING
* Not just the money based financial metrics
MULTI DIMENSION IMPACT ACCOUNTING
Sun
Fundamentals of the Socio-Enviro-Economic System
Sun
FinancialCapital
HumanCapital
Man BuiltCapital
NaturalCapital
Sun SunSun
FinancialCapital
HumanCapital
Man BuiltCapital
NaturalCapital
SunSunSun
Man BuiltCapital
NaturalCapital
Sun
HumanCapital
Add Sun … the source of all energy
Split out FinancialCapital from other
components of Man Built Capital
Reorder because Financial Capital
metrics exist
MDIA builds on double entry and the concept of
state and flow …
MULTI DIMENSION IMPACT ACCOUNTING
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 …
MULTI DIMENSION IMPACT ACCOUNTING
STEADY STATE
MULTI DIMENSION IMPACT ACCOUNTING
POSITIVE PROGRESS
MULTI DIMENSION IMPACT ACCOUNTING
DETERIORATION OF STATE
These reflect … ● Steady state;● Positive progress; and● Deterioration of state
MULTI DIMENSION IMPACT ACCOUNTING
No information about the activities is needed in order to understand PROGRESS
… only information about changes in STATE
MULTI DIMENSION IMPACT ACCOUNTING
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
MULTI DIMENSION IMPACT ACCOUNTING
EFFICIENCY AND EFFECTIVENESS
MULTI DIMENSION IMPACT ACCOUNTING
Sun
STATE … Beginning of Period - BOP STATE … End of Period - EOP
Sun
FinancialCapital
HumanCapital
Man BuiltCapital
NaturalCapital
Sun SunSun
FinancialCapital
HumanCapital
Man BuiltCapital
NaturalCapital
Sun
FLOWS*
ACTIVITIES*
PROCESSES*
* Any amount of complexity … STATE remains simple
MULTI DIMENSION IMPACT ACCOUNTING
Sun
Fundamentals of the Socio-Enviro-Economic SystemBOP EOP
Sun
FinancialCapital
HumanCapital
Man BuiltCapital
NaturalCapital
Sun SunSun
FinancialCapital
HumanCapital
Man BuiltCapital
NaturalCapital
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 determineeverything. NC is infinitely complex and resilient and will
outlast everything Man Built … and People are unlikely tosurvive in a future mass extinction that is quite certain.
The source of ALL energy to drive the system
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
MULTI DIMENSION IMPACT ACCOUNTING
ELEMENTS OF THE SYSTEM by SEGMENT
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
FinancialCapital
HumanCapital
Man BuiltStructures & Systems
NaturalCapital
Money FoodGovernmentNature (life)
Sun
Nature (life)
Capital Market Value
WaterLaws. RulesNature (life)Land
ShelterInfrastructureWater Clothes
IndustryNature (life)AirHealth
MiningEcoservicesEducation
Energy SkillsWaste
RecreationRetailCulture
Logistics ReligionKnowledge
Technology
Security
Energy
Mobility
Profit
Moving forward … Request for collaborationMoney 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 … [email protected]
MULTI DIMENSION IMPACT ACCOUNTING
Some links and contact information: Peter Burgess … [email protected]
Peter Burgess LinkedIn profilehttps://www.linkedin.com/in/peterburgess1
Link to TrueValueMetrics.org websitehttp://www.truevaluemetrics.org/
Link to navigation for MDIA slidesetshttp://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=list0200-Burgess-p3-Slidesets
MULTI DIMENSION IMPACT ACCOUNTING