Transcript of MDIA p3 04 WATER 150707
- 1. MULTI DIMENSION IMPACT ACCOUNTING File:
MDIA-p3-04-WATER-150708.odp Peter Burgess (c) All rights reserved
MDIA WATER A COMPONENT OF NATURAL CAPITAL
- 2. MULTI DIMENSION IMPACT ACCOUNTING WORK-IN-PROGRESS. SLIDESET
STILL IN DEVELOPMENT. UPDATES WILL BE POSTED OVER THE NEXT SEVERAL
WEEKS
- 3. The IMPORTANCE of WATER Without WATER, a person is dead in
less than three days. In a major drought, plants die, then animals
and then people. Huge amounts of water are needed to grow almost
everything. Huge amounts of water are needed to make almost
everything. MULTI DIMENSION IMPACT ACCOUNTING
- 4. 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 DROUGHT Crops fail
- 5. 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 DROUGHT Water shortage in New Mexico
- 6. 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 DROUGHT Camel carcass Horn of Africa
- 7. 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 DROUGHT Dead animals Horn of Africa
- 8. The CHALLENGES To use water in a more efficient way so that:
We have water we need for people; We have water to grow what we
need; We have water to produce what we need To end water pollution
from human activities: Runoff from agriculture; Effluent from urban
areas; Wastewater from industrial activities. MULTI DIMENSION
IMPACT ACCOUNTING
- 9. WATER, a product of NATURE Purified by natural systems;
Historically a 'free' good; Now, increasingly there are shortages;
Essential for all forms of life; People die after 3 days with no
water; Huge amounts used in agriculture; Huge amounts used in
industrial operations; And lots of wastewater and pollution issues
to be addressed MULTI DIMENSION IMPACT ACCOUNTING
- 10. The next slide: WATER Perhaps the most VALUABLE substance
on the planet. MULTI DIMENSION IMPACT ACCOUNTING
- 11. MULTI DIMENSION IMPACT ACCOUNTING WATER DRINKING WATER
SunSun EOP Financial Capital Human Capital Man Built Capital
Natural Capital SunSunSun BOP Financial Capital Human Capital Man
Built Capital Natural Capital Sun
- 12. The next 2 slides: BOTTLED WATER One of the most PROFITABLE
products on the planet as long as external negative IMPACTS are
ignored MULTI DIMENSION IMPACT ACCOUNTING
- 13. MULTI DIMENSION IMPACT ACCOUNTING WATER BOTTLED WATER
SunSun BOP Financial Capital Human Capital Man Built Capital
Natural Capital Sun SunSun EOP Financial Capital Human Capital Man
Built Capital Natural Capital Sun
- 14. MULTI DIMENSION IMPACT ACCOUNTING WATER BOTTLED WATER
SunSun BOP Financial Capital Human Capital Man Built Capital
Natural Capital Sun SunSun EOP Financial Capital Human Capital Man
Built Capital Natural Capital Sun
- 15. The next slides: Freshwater ... Lakes; Rivers; Rain.
Saltwater ... Oceans MULTI DIMENSION IMPACT ACCOUNTING Water,
water, everywhere and not a drop to drink
- 16. 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 WATER - LAKES
- 17. 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 WATER RIVERS / STREAMS
- 18. 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 WATER RIVERS / STREAMS
- 19. 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 WATER - RAIN
- 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 WATER - RAIN
- 21. 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 WATER - OCEAN
- 22. The next slides: Water Shortages Dry river in Pakistan;
Nearly empty reservoir in California Collecting water in North
Kenya; Waiting for water in Myanmar. MULTI DIMENSION IMPACT
ACCOUNTING
- 23. MULTI DIMENSION IMPACT ACCOUNTING WATER WATER SHORTAGE
Pakistan 2009 SunSun BOP Financial Capital Human Capital Man Built
Capital Natural Capital Sun SunSun EOP Financial Capital Human
Capital Man Built Capital Natural Capital Sun
- 24. MULTI DIMENSION IMPACT ACCOUNTING WATER WATER SHORTAGE
California 2014 SunSun BOP Financial Capital Human Capital Man
Built Capital Natural Capital Sun SunSun EOP Financial Capital
Human Capital Man Built Capital Natural Capital Sun
- 25. MULTI DIMENSION IMPACT ACCOUNTING WATER COLLECTING WATER
SunSun BOP Financial Capital Human Capital Man Built Capital
Natural Capital Sun SunSun EOP Financial Capital Human Capital Man
Built Capital Natural Capital Sun
- 26. MULTI DIMENSION IMPACT ACCOUNTING WATER COLLECTING WATER
Myanmar 2011 SunSun BOP Financial Capital Human Capital Man Built
Capital Natural Capital Sun SunSun EOP Financial Capital Human
Capital Man Built Capital Natural Capital Sun
- 27. The next slides: Too much water floods MULTI DIMENSION
IMPACT ACCOUNTING
- 28. MULTI DIMENSION IMPACT ACCOUNTING WATER FLOODS Myanmar 2011
SunSun BOP Financial Capital Human Capital Man Built Capital
Natural Capital Sun SunSun EOP Financial Capital Human Capital Man
Built Capital Natural Capital Sun
- 29. MULTI DIMENSION IMPACT ACCOUNTING WATER FLOODS SunSun BOP
Financial Capital Human Capital Man Built Capital Natural Capital
Sun SunSun EOP Financial Capital Human Capital Man Built Capital
Natural Capital Sun
- 30. The next slides: Flood control measures River Thames in
London; Dam in China; Dam in USA. MULTI DIMENSION IMPACT
ACCOUNTING
- 31. MULTI DIMENSION IMPACT ACCOUNTING WATER FLOOD CONTROL
Thames barrage SunSun BOP Financial Capital Human Capital Man Built
Capital Natural Capital Sun SunSun EOP Financial Capital Human
Capital Man Built Capital Natural Capital Sun
- 32. MULTI DIMENSION IMPACT ACCOUNTING WATER FLOOD CONTROL
SunSun BOP Financial Capital Human Capital Man Built Capital
Natural Capital Sun SunSun EOP Financial Capital Human Capital Man
Built Capital Natural Capital Sun
- 33. MULTI DIMENSION IMPACT ACCOUNTING WATER FLOOD CONTROL
SunSun BOP Financial Capital Human Capital Man Built Capital
Natural Capital Sun SunSun EOP Financial Capital Human Capital Man
Built Capital Natural Capital Sun
- 34. WATER POLLUTION MULTI DIMENSION IMPACT ACCOUNTING
- 35. WATER is an amazing solvent and this is a huge problem
because water dissolves both good things and very bad things. MULTI
DIMENSION IMPACT ACCOUNTING
- 36. WATER POLLUTION comes from: Personal use gray water; Storm
water run off; Agriculture run off; Industrial process effluents;
Industrial process leakages; Abandoned mines; Seepage from land
fill (waste). MULTI DIMENSION IMPACT ACCOUNTING
- 37. The next slides: Water Pollution Polluted rivers solid
waste; Industrial waste water; Abandoned mines runoff;
Deforestation; Sediment laden river in China MULTI DIMENSION IMPACT
ACCOUNTING
- 38. MULTI DIMENSION IMPACT ACCOUNTING WATER RIVER POLLUTION
SOLID WASTE River Ganges in IndiaSunSun BOP Financial Capital Human
Capital Man Built Capital Natural Capital Sun SunSun EOP Financial
Capital Human Capital Man Built Capital Natural Capital Sun
- 39. MULTI DIMENSION IMPACT ACCOUNTING WATER INDUSTRIAL WATER
POLLUTION SunSun BOP Financial Capital Human Capital Man Built
Capital Natural Capital Sun SunSun EOP Financial Capital Human
Capital Man Built Capital Natural Capital Sun
- 40. MULTI DIMENSION IMPACT ACCOUNTING WATER ABANDONED MINE
POLLUTION SunSun BOP Financial Capital Human Capital Man Built
Capital Natural Capital Sun SunSun EOP Financial Capital Human
Capital Man Built Capital Natural Capital Sun
- 41. MULTI DIMENSION IMPACT ACCOUNTING WATER DEFORESTATION
SunSun BOP Financial Capital Human Capital Man Built Capital
Natural Capital Sun SunSun EOP Financial Capital Human Capital Man
Built Capital Natural Capital Sun
- 42. MULTI DIMENSION IMPACT ACCOUNTING WATER SEDIMENT LADEN
RIVER SunSun BOP Financial Capital Human Capital Man Built Capital
Natural Capital Sun SunSun EOP Financial Capital Human Capital Man
Built Capital Natural Capital Sun
- 43. REMEDIATION MULTI DIMENSION IMPACT ACCOUNTING
- 44. MULTI DIMENSION IMPACT ACCOUNTING NATURAL WATER TREATMENT
REMEDIATING ABANDONED MINE DRAINAGE Pennsylvania SunSun BOP
Financial Capital Human Capital Man Built Capital Natural Capital
Sun SunSun EOP Financial Capital Human Capital Man Built Capital
Natural Capital Sun
- 45. 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 EOPWater enters a stream but is this clean water?
- 46. The WATER dimension of the socio-enviro- economic system
depends on the characteristics of the water sources in the PLACE
the rainfall, the streams and rivers, the aquifers and their
replenishment. MULTI DIMENSION IMPACT ACCOUNTING
- 47. PROCESSES that use WATER should be efficient in the context
of the PLACE. Post PROCESS water should not pollute the
environment. MULTI DIMENSION IMPACT ACCOUNTING
- 48. The next slides: Water Cycle graphics MULTI DIMENSION
IMPACT ACCOUNTING
- 49. MULTI DIMENSION IMPACT ACCOUNTING WATER WATER FLOW SunSun
BOP Financial Capital Human Capital Man Built Capital Natural
Capital Sun SunSun EOP Financial Capital Human Capital Man Built
Capital Natural Capital Sun
- 50. 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
- 51. 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
- 52. 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
- 53. 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
- 54. MULTI DIMENSION IMPACT ACCOUNTING Values in 1000 cubic
km/yr SunSun BOP Financial Capital Human Capital Man Built Capital
Natural Capital Sun SunSun EOP Financial Capital Human Capital Man
Built Capital Natural Capital Sun
- 55. MULTI DIMENSION IMPACT ACCOUNTING
http://truevaluemetrics.org/DBpdfs/NaturalCapital/Natural-Cycles/University-of-Michigan-The-Global-Water-and-Nitrogen-Cycles.pdf
- 56. USES FOR WATER MULTI DIMENSION IMPACT ACCOUNTING
- 57. The main uses for WATER: Personal use hydration; Personal
use washing, cooking, etc; Personal use landscaping, etc;
Agriculture irrigation; Agriculture livestock husbandry; Industrial
process manufacturing; Natural process support; Water transport
losses; MULTI DIMENSION IMPACT ACCOUNTING
- 58. The main sources of WATER: Rain, rivers and surface
reservoirs; Underground aquifers; Deep old water aquifers;
Desalination systems. MULTI DIMENSION IMPACT ACCOUNTING
- 59. Unlike oil and gas, there is no global system of logistics
to move water around the world. MULTI DIMENSION IMPACT
ACCOUNTING
- 60. Transport of water is readily justified based on value but
not easily justified with the cost and pricing constructs that are
usually used in financial analysis* MULTI DIMENSION IMPACT
ACCOUNTING * See MDIA discussion on Bottled Water
- 61. FINANCIAL AND IMPACT ACCOUNTING FOR WATER MULTI DIMENSION
IMPACT ACCOUNTING
- 62. So how to do the accounting for impact for water? MULTI
DIMENSION IMPACT ACCOUNTING
- 63. The amount paid for water is in the financial accounts. It
is likely that the quantity of water going into the process is also
recorded as a 'memo' item. MULTI DIMENSION IMPACT ACCOUNTING
- 64. It is less likely that the quantity of water leaving the
process is recorded. Both the quantity of the water leaving the
process and the quality of the water is required. MULTI DIMENSION
IMPACT ACCOUNTING
- 65. The IMPACT is a function of these PROCESS parameters: the
consumption of fresh water i.e. fresh water in less water out; the
quantity of the water out; and, the quality of the water out. MULTI
DIMENSION IMPACT ACCOUNTING
- 66. The IMPACT is also a function of water sources in the
PLACE: The availability of water from sources that are replenished
naturally (local rain, rivers etc.) The stocks of ancient water
that may be mined MULTI DIMENSION IMPACT ACCOUNTING
- 67. And the IMPACT is also a function of water needs in the
PLACE: The need for PEOPLE use essential needs; The need for PEOPLE
use less-essential; The needs of AGRICULTURE; The needs of
INDUSTRY. MULTI DIMENSION IMPACT ACCOUNTING
- 68. the next slide is a graphic that puts much of this into the
MDIA framework MULTI DIMENSION IMPACT ACCOUNTING
- 69. 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 Rain WATER EOP River Reservoir Old water Industrial Irrigated
Agriculture People Use Fresh Water Mined Fresh Water Total Fresh
Water Into Use IN IN Polluted Polluted Water Rain River Reservoir
Old water Replenishment Rain / Water Flows Resource Depletion
Environmental Degradation Polluted Polluted Water Polluted Water
Fresh Mining & Industry Fresh Polluted Water
- 70. The value of RESOURCE DEPLETION associated with the mining
of old water that does not replenish has to be quantified ... MULTI
DIMENSION IMPACT ACCOUNTING
- 71. and the reason for the agriculture and the industrial
production is so that PEOPLE have the food and 'stuff' they need to
maintain their lifestyle. MULTI DIMENSION IMPACT ACCOUNTING
- 72. 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 WATER EOP Industrial Irrigated Agriculture People Use Polluted
Polluted Water Rain River Reservoir Replenishment Rain / Water
Flows Resource Depletion Environmental Degradation Polluted
Polluted Water Polluted Water Fresh Mining & Industry Fresh
Polluted Water Water from regular flows People Use Drives
Everything Net Water Use Mined old water BOP Old water EOP Old
water
- 73. Next step QUANTIFICATION The next step is to quantify the
VALUE of old water that is mined the quantification of resource
depletion; and To quantify the IMPACT or VALUE DESTRUCTION
associated with fresh water becoming contaminated. MULTI DIMENSION
IMPACT ACCOUNTING
- 74. WATER DEPLETION If the VALUE (TrueValueWater or 'tvw') of
water is defined as follows: The value of 1 (one) litre of fresh
water = 1tvw Then the VALUE of resource depletion in tvw will be
the product of: Number of litres mined X 1 MULTI DIMENSION IMPACT
ACCOUNTING
- 75. WATER DEGRADATION When the cost of remediating degraded
water to fresh is $5 per litre Then the IMPACT of resource
degradation will be: Litres degraded X $5 MULTI DIMENSION IMPACT
ACCOUNTING
- 76. AND When toxic water gets into freshwater (watershed or
groundwater) the IMPACT may be quantified by reference to the
amount of water impacted and the cost of full remediation of this
amount of water Litres impacted X ($ remediation cost/litre) MULTI
DIMENSION IMPACT ACCOUNTING
- 77. AND To the extent that toxic water contaminates freshwater
(watershed or groundwater) the IMPACT may also be quantified by
reference to the amount of land impacted, the amount of groundwater
impacted and the people population impacted. This is important
because many business operations choose to ignore these matters
when they are in remote locations with weak regulatory regime MULTI
DIMENSION IMPACT ACCOUNTING
- 78. AND in addition To the extent that toxic water reaches
estuaries and other important ecosystems and natural habitats, the
IMPACT should be quantified by reference to the damage being done
to ALL the living systems. MULTI DIMENSION IMPACT ACCOUNTING
- 79. AND lastly To the extent that toxic water reaches the
oceans the IMPACT should be quantified by reference to the damage
being done to this ecosystem. MULTI DIMENSION IMPACT
ACCOUNTING
- 80. SOME INTERIM OBSERVATIONS: It is urgent that some form of
numbering and quantification is applied to water the flow and the
state. The idea of 'standard values' can help in the quantification
process this is an important next step stay tuned! MULTI DIMENSION
IMPACT ACCOUNTING
- 81. Requesting collaboration The prevailing metrics for our
complex socio-enviro- economic system are inadequate. Conventional
money accounting works for corporate profit performance, but does
not work well for impact on society, impact on the environment or
future risks. The work of MDIA is to enable metrics so that this
complex system works better. MDIA needs to be a team effort. Please
join in and help to make the world a better place. Please get in
touch. Peter Burgess peterbnyc@gmail.com MULTI DIMENSION IMPACT
ACCOUNTING
- 82. 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
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MULTI DIMENSION IMPACT ACCOUNTING