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MULTI DIMENSION IMPACT ACCOUNTING File: MDIA-p3-04-32-WATER-150620.odp Peter Burgess (c) All rights reserved MDIA WATER A COMPONENT OF NATURAL CAPITAL
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Page 1: Mdia p3-05-tvd-water-150420

MULTI DIMENSION IMPACT ACCOUNTING

File: MDIA-p3-04-32-WATER-150620.odp Peter Burgess (c) All rights reserved

MDIAWATER

A COMPONENT OF NATURAL CAPITAL

Page 2: Mdia p3-05-tvd-water-150420

MULTI DIMENSION IMPACT ACCOUNTING

WORK-IN-PROGRESS.SLIDESET STILL IN DEVELOPMENT.UPDATES WILL BE POSTED OVER

THE NEXT SEVERAL WEEKS

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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

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MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun

DROUGHTCrops fail

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MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun

DROUGHTWater shortage in New Mexico

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MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun

DROUGHTCamel carcass … Horn of Africa

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MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

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EOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun

DROUGHTDead animals … Horn of Africa

Page 8: Mdia p3-05-tvd-water-150420

The CHALLENGESTo 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

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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

Page 10: Mdia p3-05-tvd-water-150420

The next slide:

WATER …

Perhaps the most VALUABLE substance on the planet.

MULTI DIMENSION IMPACT ACCOUNTING

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MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun

WATER

DRINKING WATER

Page 12: Mdia p3-05-tvd-water-150420

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

Page 13: Mdia p3-05-tvd-water-150420

MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun

WATER

BOTTLED WATER

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MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

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EOP

FinancialCapital

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Man BuiltCapital

NaturalCapital

Sun

WATER

BOTTLED WATER

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The next slides:

Freshwater ...● Lakes;● Rivers;● Rain.

Saltwater ...● Oceans

MULTI DIMENSION IMPACT ACCOUNTING

“Water, water, everywhere … and not a drop to drink”

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MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

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EOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun

WATER - LAKES

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MULTI DIMENSION IMPACT ACCOUNTING

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BOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

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EOP

FinancialCapital

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Man BuiltCapital

NaturalCapital

Sun

WATER – RIVERS / STREAMS

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MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun

WATER – RIVERS / STREAMS

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MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun

WATER - RAIN

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MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun

WATER - RAIN

Page 21: Mdia p3-05-tvd-water-150420

MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun

WATER - OCEAN

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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

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MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

WATER

WATER SHORTAGE

Pakistan … 2009

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MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

WATER

WATER SHORTAGE

California … 2014

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MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

WATER

COLLECTING WATER

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MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

WATER

COLLECTING WATER

Myanmar … 2011

Page 27: Mdia p3-05-tvd-water-150420

The next slides:

Too much water … floods

MULTI DIMENSION IMPACT ACCOUNTING

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MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

WATER

FLOODS

Myanmar … 2011

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MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

WATER

FLOODS

Page 30: Mdia p3-05-tvd-water-150420

The next slides:

Flood control measures● River Thames in London;● Dam in China;● Dam in USA.

MULTI DIMENSION IMPACT ACCOUNTING

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MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

WATER

FLOOD CONTROL

Thames barrage

Page 32: Mdia p3-05-tvd-water-150420

MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

WATER

FLOOD CONTROL

Page 33: Mdia p3-05-tvd-water-150420

MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

WATER

FLOOD CONTROL

Page 34: Mdia p3-05-tvd-water-150420

WATER POLLUTION

MULTI DIMENSION IMPACT ACCOUNTING

Page 35: Mdia p3-05-tvd-water-150420

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

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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

Page 37: Mdia p3-05-tvd-water-150420

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

Page 38: Mdia p3-05-tvd-water-150420

MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

WATER

RIVER POLLUTION … SOLID WASTE

River Ganges in India

Page 39: Mdia p3-05-tvd-water-150420

MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

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EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

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WATER

INDUSTRIAL WATER POLLUTION

Page 40: Mdia p3-05-tvd-water-150420

MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

WATER

ABANDONED MINE POLLUTION

Page 41: Mdia p3-05-tvd-water-150420

MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

WATER

DEFORESTATION

Page 42: Mdia p3-05-tvd-water-150420

MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

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EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

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WATER

SEDIMENT LADEN RIVER

Page 43: Mdia p3-05-tvd-water-150420

REMEDIATION

MULTI DIMENSION IMPACT ACCOUNTING

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MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

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EOP

FinancialCapital

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Man BuiltStructures& Systems

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NATURAL WATER TREATMENT

REMEDIATING ABANDONED MINE DRAINAGE

Pennsylvania

Page 45: Mdia p3-05-tvd-water-150420

MULTI DIMENSION IMPACT ACCOUNTING

Sun

BOP

Sun

FinancialCapital

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Man BuiltCapital

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FinancialCapital

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EOPWater enters a stream … but is this clean water?

Page 46: Mdia p3-05-tvd-water-150420

The WATER dimension of the socio-enviro-economic system depends on the characteristics of the water sources in the PLACE

MULTI DIMENSION IMPACT ACCOUNTING

Page 47: Mdia p3-05-tvd-water-150420

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

Page 48: Mdia p3-05-tvd-water-150420

The next slides:

Water Cycle graphics

MULTI DIMENSION IMPACT ACCOUNTING

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MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

WATER

WATER FLOW

Page 50: Mdia p3-05-tvd-water-150420

MULTI DIMENSION IMPACT ACCOUNTING

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MULTI DIMENSION IMPACT ACCOUNTING

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MULTI DIMENSION IMPACT ACCOUNTING

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USES FOR WATER

MULTI DIMENSION IMPACT ACCOUNTING

Page 54: Mdia p3-05-tvd-water-150420

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

Page 55: Mdia p3-05-tvd-water-150420

The main sources of WATER:Rain, rivers and surface reservoirs;Underground aquifers;Deep old water aquifers;Desalination systems.

MULTI DIMENSION IMPACT ACCOUNTING

Page 56: Mdia p3-05-tvd-water-150420

Unlike oil and gas, there is no global system of logistics to move water around the world.

MULTI DIMENSION IMPACT ACCOUNTING

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Transport is readily justified based on value … but not easily justified with the cost / pricing construct that has prevailed for a long time*

MULTI DIMENSION IMPACT ACCOUNTING

* See MDIA discussion on Bottled Water

Page 58: Mdia p3-05-tvd-water-150420

FINANCIAL AND IMPACT ACCOUNTING FOR WATER

MULTI DIMENSION IMPACT ACCOUNTING

Page 59: Mdia p3-05-tvd-water-150420

So … how to do the accounting for impact for water?

MULTI DIMENSION IMPACT ACCOUNTING

Page 60: Mdia p3-05-tvd-water-150420

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

Page 61: Mdia p3-05-tvd-water-150420

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

Page 62: Mdia p3-05-tvd-water-150420

The IMPACT is a function of these PROCESS parameters: the consumption of fresh water … i.e. fresh water in less water out;

and,

the quantity and quality of the water out.

MULTI DIMENSION IMPACT ACCOUNTING

Page 63: Mdia p3-05-tvd-water-150420

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

Page 64: Mdia p3-05-tvd-water-150420

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

Page 65: Mdia p3-05-tvd-water-150420

… the next slide is a graphic that puts much of this into the MDIA framework …

MULTI DIMENSION IMPACT ACCOUNTING

Page 66: Mdia p3-05-tvd-water-150420

MULTI DIMENSION IMPACT ACCOUNTING

Sun

BOP

Sun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun SunSun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun

Rain

WATER EOP

River

Reservoir

Old water

IndustrialIrrigated

Agriculture

PeopleUse

FreshWater

MinedFreshWater

TotalFreshWaterIntoUse

IN

IN

Polluted

Polluted Water

Rain

River

Reservoir

Old water

Replenishment Rain / Water Flows

ResourceDepletion

EnvironmentalDegradation

Polluted

Polluted Water

Polluted Water

Fresh

Mining &Industry

Fresh

Polluted Water

Page 67: Mdia p3-05-tvd-water-150420

The valuation of RESOURCE DEPLETION associated with the mining of old water that does not replenish has to be quantified ...

MULTI DIMENSION IMPACT ACCOUNTING

Page 68: Mdia p3-05-tvd-water-150420

… 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

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MULTI DIMENSION IMPACT ACCOUNTING

Sun

BOP

Sun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun SunSun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun

WATER EOP

IndustrialIrrigated

Agriculture

PeopleUse

Polluted

Polluted Water

Rain

River

Reservoir

Replenishment Rain / Water Flows

ResourceDepletion

EnvironmentalDegradation

Polluted

Polluted Water

Polluted Water

Fresh

Mining &Industry

Fresh

Polluted Water

Waterfrom

regular flows

PeopleUse

DrivesEverything

NetWaterUse

Minedold

water

BOPOld water

EOPOld water

Page 70: Mdia p3-05-tvd-water-150420

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

Page 71: Mdia p3-05-tvd-water-150420

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