Mdia p3-05-tvd-water-150420

1. 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

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
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EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
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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
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
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EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
WATER
DRINKING WATER

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
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
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Natural
Capital
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EOP
Financial
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Man Built
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Natural
Capital
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WATER
BOTTLED WATER

14. MULTI DIMENSION IMPACT ACCOUNTING
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BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
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EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
WATER
BOTTLED WATER

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
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BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
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EOP
Financial
Capital
Human
Capital
Man Built
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Capital
Sun
WATER - LAKES

17. MULTI DIMENSION IMPACT ACCOUNTING
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Financial
Capital
Human
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Man Built
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EOP
Financial
Capital
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WATER – RIVERS / STREAMS

18. MULTI DIMENSION IMPACT ACCOUNTING
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BOP
Financial
Capital
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Capital
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EOP
Financial
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Man Built
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WATER – RIVERS / STREAMS

19. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
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EOP
Financial
Capital
Human
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Man Built
Capital
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Capital
Sun
WATER - RAIN

20. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
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EOP
Financial
Capital
Human
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Man Built
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WATER - RAIN

21. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
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EOP
Financial
Capital
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Man Built
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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
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
WATER
WATER SHORTAGE
Pakistan … 2009

24. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
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Capital
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WATER
WATER SHORTAGE
California … 2014

25. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
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EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
WATER
COLLECTING WATER

26. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
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EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
WATER
COLLECTING WATER
Myanmar … 2011

27. The next slides:
Too much water … floods
MULTI DIMENSION IMPACT ACCOUNTING

28. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
WATER
FLOODS
Myanmar … 2011

29. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
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EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
WATER
FLOODS

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
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
WATER
FLOOD CONTROL
Thames barrage

32. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
WATER
FLOOD CONTROL

33. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
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EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
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WATER
FLOOD CONTROL

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
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
WATER
RIVER POLLUTION … SOLID WASTE
River Ganges in India

39. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
WATER
INDUSTRIAL WATER POLLUTION

40. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
WATER
ABANDONED MINE POLLUTION

41. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
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EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
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WATER
DEFORESTATION

42. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
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EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
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WATER
SEDIMENT LADEN RIVER

43. REMEDIATION
MULTI DIMENSION IMPACT ACCOUNTING

44. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
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EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
NATURAL WATER TREATMENT
REMEDIATING ABANDONED MINE DRAINAGE
Pennsylvania

45. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP
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Financial
Capital
Human
Capital
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Capital
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Capital
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Financial
Capital
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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
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
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
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EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
WATER
WATER FLOW

50. MULTI DIMENSION IMPACT ACCOUNTING

51. MULTI DIMENSION IMPACT ACCOUNTING

52. MULTI DIMENSION IMPACT ACCOUNTING

53. USES FOR WATER
MULTI DIMENSION IMPACT ACCOUNTING

54. 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

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

56. Unlike oil and gas, there is no
global system of logistics to
move water around the world.
MULTI DIMENSION IMPACT ACCOUNTING

57. 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

58. FINANCIAL AND IMPACT
ACCOUNTING FOR WATER
MULTI DIMENSION IMPACT ACCOUNTING

59. So … how to do the accounting
for impact for water?
MULTI DIMENSION IMPACT ACCOUNTING

60. 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

61. 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

62. 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

63. 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

64. 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

65. … the next slide is a graphic that
puts much of this into the MDIA
framework …
MULTI DIMENSION IMPACT ACCOUNTING

66. 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

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

68. … 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

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
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

70. Moving forward … Request
for collaboration
Money 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 … peterbnyc@gmail.com
MULTI DIMENSION IMPACT ACCOUNTING

71. 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
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=list0200-Burgess-p3-Slidesets
MULTI DIMENSION IMPACT ACCOUNTING