MULTI DIMENSION IMPACT ACCOUNTING File: MDIA-p3-02-The-PEOPLE-Dimension-150420.odp Peter Burgess (c) All rights reserved MDIA PROCESS Oil and Gas
Jul 18, 2015
MULTI DIMENSION IMPACT ACCOUNTING
File: MDIA-p3-02-The-PEOPLE-Dimension-150420.odp Peter Burgess (c) All rights reserved
MDIAPROCESS
Oil and Gas
A PEOPLE CENTRIC PURPOSE
The real PURPOSE of all economic activity is to enable an improved Qualityof Life and Standard of Living➔ More MONEY and more STUFF has been the proxy for a better quality of life and standard of living.
➔ This has been one of the drivers of the Western style consumer economy.
MULTI DIMENSION IMPACT ACCOUNTING
File: MDIA-Framework-002-150406.odp Peter Burgess (c) All rights reserved
BUSINESS PURPOSE
Most often BUSINESS PURPOSE is seen as maximizing business profit for the benefit of the owners. ➔ There are advantages to this perspective.
➔ Efficiency is encouraged as well as innovation. ➔ More production is enabled and shortages avoided.
➔ There are also disadvantages. ➔ Efficiency means more production for less labor. ➔ Less labor is a negative for employees and society as a
whole. ➔ More profit may be derived by ignoring workplace safety
and environmental issues
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun SunSun
EOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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PROCESS
DEEPWATER OIL RIG
MULTI DIMENSION IMPACT ACCOUNTING
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BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun SunSun
EOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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PROCESS
DEEPWATER OIL RIG
MULTI DIMENSION IMPACT ACCOUNTING
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BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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EOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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PROCESS
OILFIELD SERVICES
MULTI DIMENSION IMPACT ACCOUNTING
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BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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EOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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PROCESS
OIL EXPLORATION
MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun SunSun
EOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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PROCESS
OIL DRILLING RIGS
MULTI DIMENSION IMPACT ACCOUNTING
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BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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EOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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PROCESS
VERY LARGE OIL TANKERS
MULTI DIMENSION IMPACT ACCOUNTING
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BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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EOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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PROCESS
TANK FARM
MULTI DIMENSION IMPACT ACCOUNTING
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BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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EOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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PROCESS
OIL PIPELINES
MULTI DIMENSION IMPACT ACCOUNTING
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BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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EOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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PROCESS
OIL REFINING
MULTI DIMENSION IMPACT ACCOUNTING
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BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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EOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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PROCESS
OIL TERMINALS
MULTI DIMENSION IMPACT ACCOUNTING
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BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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EOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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PROCESS
OIL TERMINALS
MULTI DIMENSION IMPACT ACCOUNTING
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BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun SunSun
EOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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PROCESS
OIL TERMINALS
MULTI DIMENSION IMPACT ACCOUNTING
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BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun SunSun
EOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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PROCESS
OIL TRAIN
MULTI DIMENSION IMPACT ACCOUNTING
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BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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EOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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PROCESS
TANKER CAR
PEOPLE CENTRIC EFFICIENCY
(1) There is a good Quality of Life and high Standard of Living;
and
(2) There is a minimum of degradation of the natural Capital
MULTI DIMENSION IMPACT ACCOUNTING
There are:
➔ People at the Bottom of the Pyramid;
➔ An increasingly large and affluent middle class of business people, professionals and employees; and
➔ A very small but rich and powerful elite with substantial ownership interests.
MULTI DIMENSION IMPACT ACCOUNTING
File: MDIA-Framework-002-150406.odp Peter Burgess (c) All rights reserved
There are:
➔ People who do jobs to earn income;
➔ People who earn their income from investments; and
➔ People who cannot work and do not have income.
MULTI DIMENSION IMPACT ACCOUNTING
File: MDIA-Framework-002-150406.odp Peter Burgess (c) All rights reserved
In the end, everything is about PEOPLE➔ PEOPLE make decisions about Capital
➔ PEOPLE make Government Policy
➔ PEOPLE run things
➔ PEOPLE buy products and use them
➔ PEOPLE are at of center of family and society
➔ PEOPLE are discovering knowledge
MULTI DIMENSION IMPACT ACCOUNTING
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
In the end, everything is about PEOPLE➔ PEOPLE make decisions about Capital➔ What matters, where to invest➔ PEOPLE make Government Policy➔ Legislation➔ Rules and regulations➔ Government priorities➔ PEOPLE run things➔ They are C level managers➔ They are middle managers➔ They are workers and junior staff➔ PEOPLE buy products and use them➔ Products (goods and services) are the source of much Quality of Life➔ PEOPLE are at of center of family and society➔ PEOPLE are discovering knowledge
MULTI DIMENSION IMPACT ACCOUNTING
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
MULTI DIMENSION IMPACT ACCOUNTING
ACTIVITIES OF AN INDIVIDUAL
Input ofHumanCapital:
Time, Effort,Skill, Ability, Knowledge
ImprovesSociety
ImprovesMBSS
Pro GoodActivities
Buy and UsePRODUCTS
e.g. Food, EnergyShelter, Transport
Pro MoneyActivities
e.g. Paid Work
Non-ImpactRecreation
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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ImprovesQoL andHumanCapital
WASTELiquidGasesSolids
NaturalCapital
Depleted
MaybeimprovesFC in HC
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
INPUTS ACTIVITIES BADImpact
State-EOPState-BOP
GOODImpact
Use ofMBSS
Use ofNaturalCapital
Use of Solar
MULTI DIMENSION IMPACT ACCOUNTING
Job-Money Work
Housing
Time
Skills
Income
Recreation
Education
ProGood Work
Energy
PLUS opportunities
Improvessociety
FoodClothes
ResourceDepletion
EnvironmentalDegradation
BOP EOPThe Individual
Sun
BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
PERSONALASSETS
Energy
Health
Enjoyment
Skills
Experience
Family
Shelter
Friends
Money
Stuff
QUALITYOF LIFE
Sun
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
PERSONALASSETS
Energy
Health
Enjoyment
Skills
Experience
Family
Shelter
Friends
Money
Stuff
QUALITYOF LIFE
PRODUCTSuse MBSS
PRODUCTSImpact NC
PRODUCTSUse
MBSS
PRODUCTSimprove QOL
Health
Energy
People … Human Capital … STATE➔ Quality of life is a function of:➔ The Individual➔ What has happened in the past➔ What are the possibilities for the future➔ What is happening right now➔ Quality of life is a function of many things:➔ Genetics➔ Personality traits➔ The family environment➔ The broader circle of friends and community➔ Knowledge from education➔ Knowledge from experience➔ Personal wellness➔ Access to food and water➔ Access to shelter➔ Access to goods and services➔ Security➔ Financial wealth➔ Job opportunities and income
MULTI DIMENSION IMPACT ACCOUNTING
People … Human Capital … FLOW➔ Basic needs are: ➔ Food➔ Water➔ Shelter➔ Basic stuff➔ A better quality of life requires:➔ Access to health services➔ Access to education➔ Funds to pay for things➔ Wealth or income from a job to provide funds ➔ Security➔ Access to spiritual support➔ A strong family➔ A circle of friends➔ A community that enhances QoL➔ The critical constraints are:➔ Time … only n hours per year➔ Health / energy / capacity of the individual
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
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ISSUES IN FOODSUPPLY CHAIN
Use of Pesticides
Use of Land
The IMPACT of FOOD
Use of Water
Use of Fertilizers
Air Pollution
Use of Growth Hormonesand Antibiotics
Use of Energy
Use of Equipment
Laborworkplace conditions
Use Energyfor cooking
Get nutrition for another day
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BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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EOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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Buy Food
Food storage
Prepare FoodEat Food
MULTI DIMENSION IMPACT ACCOUNTING
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The IMPACT of WATER
Use Water
Survive for another day
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BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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EOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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Get Water
WATER isincredibly
VALUABLE
MULTI DIMENSION IMPACT ACCOUNTING
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LAND USE
Sustainable agricultureWater purification
About LAND USE
Wetlands
Intensive monoculture
Coastal mangrove
Urban infrastructure
Roads, Parking Lots
There is a limited amount of landThere are multiple possible uses
Money Profit
Land is a factorin improving
human capital, producing goods
and services, locating MBSS,and providingvery criticalecosystemservices
Suburban sprawl
Housing
Tropical forestHabitat
Industrial operations
Sun
BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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EOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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MULTI DIMENSION IMPACT ACCOUNTING
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WATER USE
Food productionuses water
Beverage productionuses water
About WATER USE
Water is essential to LIFENothing is more important
Household wateruse essential
Industrial processesuse water
Rainfall and freshwater are abundant
in some placesbut not everywhere
Household wastealso pollutes
Waste water pollutionfrom processesa critical issue
Important forall processes to
treat water beforedischarge
Water is abundant,but most has toomuch dissolved
salts to be potable
Sun
BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun SunSun
EOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun
MULTI DIMENSION IMPACT ACCOUNTING
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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 emissionshave a direct
impact on health
Nitrous oxides
Freon-ozone layerdamage
Some emissionsare greenhouse
gases that causeglobal warming
The atmosphere is not an infinite free
dump for undesirableand toxic emissions
All emissionshave a costSun
BOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
Sun SunSun
EOP
FinancialCapital
HumanCapital
Man BuiltStructures& Systems
NaturalCapital
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