Water is a very important component of life. There is more water than land on planet earth. but most of it is highly saline. There is less freshwater, essential for human existence and for industrial processes and agriculture.
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
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DROUGHT
Crops fail
5. MULTI DIMENSION IMPACT ACCOUNTING
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DROUGHT
Water shortage in New Mexico
6. MULTI DIMENSION IMPACT ACCOUNTING
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DROUGHT
Camel carcass … Horn of Africa
7. MULTI DIMENSION IMPACT ACCOUNTING
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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
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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
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WATER
BOTTLED WATER
14. MULTI DIMENSION IMPACT ACCOUNTING
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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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WATER - LAKES
17. MULTI DIMENSION IMPACT ACCOUNTING
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WATER – RIVERS / STREAMS
18. MULTI DIMENSION IMPACT ACCOUNTING
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WATER – RIVERS / STREAMS
19. MULTI DIMENSION IMPACT ACCOUNTING
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WATER - RAIN
20. MULTI DIMENSION IMPACT ACCOUNTING
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WATER - RAIN
21. MULTI DIMENSION IMPACT ACCOUNTING
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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
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WATER SHORTAGE
Pakistan … 2009
24. MULTI DIMENSION IMPACT ACCOUNTING
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WATER SHORTAGE
California … 2014
25. MULTI DIMENSION IMPACT ACCOUNTING
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WATER
COLLECTING WATER
26. MULTI DIMENSION IMPACT ACCOUNTING
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COLLECTING WATER
Myanmar … 2011
28. MULTI DIMENSION IMPACT ACCOUNTING
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WATER
FLOODS
Myanmar … 2011
29. MULTI DIMENSION IMPACT ACCOUNTING
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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
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WATER
FLOOD CONTROL
Thames barrage
32. MULTI DIMENSION IMPACT ACCOUNTING
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WATER
FLOOD CONTROL
33. MULTI DIMENSION IMPACT ACCOUNTING
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WATER
FLOOD CONTROL
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
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WATER
RIVER POLLUTION … SOLID WASTE
River Ganges in India
39. MULTI DIMENSION IMPACT ACCOUNTING
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WATER
INDUSTRIAL WATER POLLUTION
40. MULTI DIMENSION IMPACT ACCOUNTING
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WATER
ABANDONED MINE POLLUTION
41. MULTI DIMENSION IMPACT ACCOUNTING
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WATER
DEFORESTATION
42. MULTI DIMENSION IMPACT ACCOUNTING
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WATER
SEDIMENT LADEN RIVER
44. MULTI DIMENSION IMPACT ACCOUNTING
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NATURAL WATER TREATMENT
REMEDIATING ABANDONED MINE DRAINAGE
Pennsylvania
45. MULTI DIMENSION IMPACT ACCOUNTING
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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
49. MULTI DIMENSION IMPACT ACCOUNTING
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WATER
WATER FLOW
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
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
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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
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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. 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
71. RESOURCE DEPLETION - WATER
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
72. RESOURCE DEGRADATION - WATER
When the cost of remediating degraded water
to fresh is $5 per litre
Then the IMPACT of resource degradation will
be:
Litres degraded X $5
MULTI DIMENSION IMPACT ACCOUNTING
73. AND …
When toxic water gets into freshwater
(watershed or groundwater) the IMPACT may
be quantified by reference to the amount of
water impacted and the cost of full
remediation of this amount of water
Litres impacted X ($ remediation cost/litre)
MULTI DIMENSION IMPACT ACCOUNTING
74. 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
75. 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
76. 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