The role of FOOD in quality of life is important and complex. The most important dimension of food is the impact it has on quality of life, but at the same time there are other dimensions of which the profit dimension has been very important. Financial metrics give measures of profit, but there are no easy measures for the impact that food is having on the many dimensions of natural capital.

1. MULTI DIMENSION IMPACT ACCOUNTING
File: MDIA-p3-05-FOOD-150629.odp Peter Burgess (c) All rights reserved
MDIA
FOOD

2. EXPLANATION
This slideset is A WORK-IN-PROGRESS. It will be
upgraded periodically. It is part of a series of more than
50 slidesets. Navigation to all of these is available here:
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MULTI DIMENSION IMPACT ACCOUNTING
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http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=N1-Slidesets-p3

3. FOOD is a very large part of the
global economy … important for
society and with a substantial
environmental footprint.
MULTI DIMENSION IMPACT ACCOUNTING

4. MULTI DIMENSION IMPACT ACCOUNTING
THE PURPOSE
OF FOOD

5. The PURPOSE of FOOD
FOOD is essential for people to
live. Without FOOD people
starve to death.
MULTI DIMENSION IMPACT ACCOUNTING

6. MULTI DIMENSION IMPACT ACCOUNTING
FOOD ISSUES – FOOD SHORTAGE
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun

7. But too much food … and the
wrong food results in obesity.
Especially when it is coupled
with a sedentary life style.
MULTI DIMENSION IMPACT ACCOUNTING

8. 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
FOOD ISSUES – FOOD ABUNDANCE

9. MULTI DIMENSION IMPACT ACCOUNTING
FOOD ISSUES – FOOD ABUNDANCE
SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
SunSunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun

10. Good food … and exercise …
is the formula for wellness
MULTI DIMENSION IMPACT ACCOUNTING

11. MULTI DIMENSION IMPACT ACCOUNTING
Sun
WELLNESS – LIFESTYLE - EXERCISE
Sun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun

12. … especially for children
MULTI DIMENSION IMPACT ACCOUNTING

13. MULTI DIMENSION IMPACT ACCOUNTING
Sun
WELLNESS – LIFESTYLE – EXERCISE
especially for children
Sun
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
INDUSTRIAL SCALE
PRODUCTION

15. MULTI DIMENSION IMPACT ACCOUNTING
Sun
FOOD ISSUES
Sun
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
FEED LOT BEEF

16. MULTI DIMENSION IMPACT ACCOUNTING
Sun
FOOD ISSUES
Sun
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
FEED LOT BEEF

17. MULTI DIMENSION IMPACT ACCOUNTING
Sun
FOOD ISSUES
Sun
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
BATTERY CHICKEN

18. MULTI DIMENSION IMPACT ACCOUNTING
Sun
FOOD ISSUES
Sun
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
BATTERY CHICKEN

19. MULTI DIMENSION IMPACT ACCOUNTING
ENVIRONMENTAL
FOOTPRINT

20. MULTI DIMENSION IMPACT ACCOUNTING
IMPACT ON WATER

21. MULTI DIMENSION IMPACT ACCOUNTING
Sun
FOOD ISSUES
Sun
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
IRRIGATION

22. MULTI DIMENSION IMPACT ACCOUNTING
Sun
FOOD ISSUES
Sun
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
IRRIGATION

23. MULTI DIMENSION IMPACT ACCOUNTING
Sun
FOOD ISSUES
Sun
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
IRRIGATION

24. MULTI DIMENSION IMPACT ACCOUNTING
Sun
FOOD ISSUES
Sun
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
PALM OIL PLANTATION

25. MULTI DIMENSION IMPACT ACCOUNTING
Sun
FOOD ISSUES
Sun
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
PALM OIL DEFORESTATION

26. MULTI DIMENSION IMPACT ACCOUNTING
FOOD CYCLE

27. MULTI DIMENSION IMPACT ACCOUNTING
Sun
FOOD ISSUES
Sun
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
FOOD CYCLE

28. MULTI DIMENSION IMPACT ACCOUNTING
Sun
FOOD ISSUES
Sun
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
FOOD CYCLE

29. MULTI DIMENSION IMPACT ACCOUNTING
Sun
FOOD ISSUES
Sun
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
FOOD CYCLE

30. MULTI DIMENSION IMPACT ACCOUNTING
Credit: Daniel Hood, Project Director, Agritech Media - Nexasphere Platform

31. MULTI DIMENSION IMPACT ACCOUNTING
INDUSTRY
PERSPECTIVE

32. The FOOD industry
● A growing number of very large food
companies;
● Agriculture increasingly dominated by
corporate farms;
● Technology supported monoculture a
big part of modern food production;
●
MULTI DIMENSION IMPACT ACCOUNTING

33. FOOD industry pollution
● River pollution from farmland runoff
containing residues of pesticides,
fertilizer and other chemicals;
● Chemical residues on and in the crops;
●
MULTI DIMENSION IMPACT ACCOUNTING

34. FOOD industry and WATER
● There is a growing shortage of water,
and the agriculture sector is the world's
largest user of water;
● Without water for irrigation, food crop
production would be much smaller;
● In recent decades water for irrigation
has been 'mined' to enable agriculture
… examples are Israel, Libya and California
● Water pollution is being caused by farm
runoff containing agricultural chemicals.
MULTI DIMENSION IMPACT ACCOUNTING

35. MULTI DIMENSION IMPACT ACCOUNTING
PRODUCT
PERSPECTIVE

36. FOOD is a PRODUCT
Used by people to live their lives;
Made by companies;
Inputs to economic activities;
Outputs from economic activities;
Flows through a supply chain;
Has impact during use;
Has impact post use in the waste chain;
Product links everything.
MULTI DIMENSION IMPACT ACCOUNTING

37. GOOD FOODS for wellness
● Food is an important part of living, but
the impact of different foods on
wellness
varies a lot;
● Freshly cooked vegetables tend to be
very good;
● Processed foods containing ingredients
like sugar and sugar substitutes tend to
be bad;
● Variety is good;
● Nutrition density is an emerging metric.
MULTI DIMENSION IMPACT ACCOUNTING

38. FOOD impacts on HEALTH
● Food provides nutrition that is essential to life;
● Foods that contain sugar in all of its forms
contribute to many bad health outcomes;
● There is an understanding that micronutrients
are important for good health. Similarly
microtoxins detract from good health;
● Fresh food is usually better than processed
food;
MULTI DIMENSION IMPACT ACCOUNTING

39. MEAT versus VEGETABLES
● The money cost of meat is much higher than
most vegetables simply because the rearing
of livestock takes longer and requires more
inputs.
● There may be a taste advantage with meat,
but the nutrition and wellness benefit of
vegetables is just as high, or higher.
● The environmental impact of meat production
is much greater than for vegetables
MULTI DIMENSION IMPACT ACCOUNTING

40. FISH and SEAFOOD
● Fish and seafood are healthy foods;
● The environmental impact of eating fish or
seafood depends on the specie and where it
came from;
● Many resources are over-exploited;
● Many fish farms are located in places which
result in environmental damage.
MULTI DIMENSION IMPACT ACCOUNTING

41. MULTI DIMENSION IMPACT ACCOUNTING
Sun
The IMPACT of FOOD
Sun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
WASTE IN THE LIFE CYCLE OF FOOD

42. MULTI DIMENSION IMPACT ACCOUNTING
FOOD WASTE

43. A lot of FOOD is wasted:
● It is wasted on farms;
● It is wasted during post harvest
transport, storage and processing;
● It is wasted in supermarkets and shops;
● It is wasted in restaurants;
● It is wasted in household kitchens, and
on the dining room table.
According to UNEP in 2010, about 1/3 of all food
produced for human consumption is wasted …
some 1.3 billion tons a year
MULTI DIMENSION IMPACT ACCOUNTING

44. MULTI DIMENSION IMPACT ACCOUNTING
TRUEVALUE
IMPACT ACCOUNTING

45. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
FINANCIAL
P&L ACCOUNT
REVENUES
Products Sold X Price
Products Bought X Price
Energy Bought X Price
Employee Benefits
Employee Payroll
Other expenditures
Asset use costs
Depreciation
Financial expenses
Pro-good expenditures
Taxation
PROFIT
COSTS
FINANCIAL ACCOUNTING

46. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
REVENUES
Products Sold X Price
VALUE to buyer
Equals
HUMAN CAPITAL ADD
Wages and benefits
What value to
employee?
Pro-good expenditures
What value to society?
Taxation
Funds government.
Good value to society.
POSITIVE
IMPACT NOT
ACCOUNTED
FOR
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
FINANCIAL
P&L ACCOUNT
REVENUES
Products Sold X Price
Products Bought X Price
Energy Bought X Price
Employee Benefits
Employee Payroll
Other expenditures
Asset use costs
Depreciation
Financial expenses
Pro-good expenditures
Taxation
PROFIT
COSTS
FINANCIAL ACCOUNTING PLUS GOOD IMPACT

47. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
For products and
energy bought
and this process
Free use of the
commons and
public services
& infrastructure
Degradation
of land
Water scarcity
and degradation
Air pollution:
Impact on people
Air pollution:
Impact on climate
Air pollution:
Impact on people
Solid waste
Resource
depletion
Environmental
Degradation
Negative
impact
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
FINANCIAL
P&L ACCOUNT
REVENUES
Products Sold X Price
Products Bought X Price
Energy Bought X Price
Employee Benefits
Employee Payroll
Other expenditures
Asset use costs
Depreciation
Financial expenses
Pro-good expenditures
Taxation
PROFIT
COSTS
FINANCIAL ACCOUNTING LESS BAD IMPACT

48. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
REVENUES
Products Sold X Price
VALUE to buyer
Equals
HUMAN CAPITAL ADD
Wages and benefits
What value to
employee?
Pro-good expenditures
What value to society?
Taxation
Funds government.
Good value to society.
For products and
energy bought
and this process
Free use of the
commons and
public services
& infrastructure
Degradation
of land
Water scarcity
and degradation
Air pollution:
Impact on people
Air pollution:
Impact on climate
Air pollution:
Impact on people
Solid waste
Resource
depletion
Environmental
Degradation
POSITIVE
IMPACT NOT
ACCOUNTED
FOR
Negative
impact
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
FINANCIAL
P&L ACCOUNT
REVENUES
Products Sold X Price
Products Bought X Price
Energy Bought X Price
Employee Benefits
Employee Payroll
Other expenditures
Asset use costs
Depreciation
Financial expenses
Pro-good expenditures
Taxation
PROFIT
COSTS
FINANCIAL ACCOUNTING PLUS GOOD & BAD

49. The next slide shows how the
operations of a process:
(1) through the money P&L report impact on
the money balance sheet of the
operation;
and,
(2) through the IMPACT accounts report on
the impact the operation is having on
society and the environment.
MULTI DIMENSION IMPACT ACCOUNTING

50. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Financial Accounts describe Financial Impact
Financial Costs
Financial Profit
Financial Revenues
Financial
Balance
Sheet
BOP
Financial
Balance
Sheet
EOP
Impact Accounts reflect Externalities
Balance
Sheet
Changes
Impact on Institutions
Impact on People
Impact on Society
Impact on Physical
Impact on Knowledge
Impact on Resources
Impact on Environment
Impact on EcoSystem
Balance
Sheet
Changes
Balance
Sheet
Changes
Balance
Sheet
Changes

51. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Financial Accounts describe Financial Impact
Financial Costs
Financial Profit
Financial Revenues
Financial
Balance
Sheet
BOP
Financial
Balance
Sheet
EOP
Impact Accounts reflect Externalities
Balance
Sheet
Changes
Impact on Institutions
Impact on People
Impact on Society
Impact on Physical
Impact on Knowledge
Impact on Resources
Impact on Environment
Impact on EcoSystem
Balance
Sheet
Changes
Balance
Sheet
Changes
Balance
Sheet
Changes

52. MULTI DIMENSION IMPACT ACCOUNTING
Sun
FOOD
Activities
Individual
QoL
Individual
QoL
Use of Pesticides
Use of Land
The IMPACT of FOOD
Use of Water
Use of Fertilizers
Air Pollution
Use of Growth Hormones
and Antibiotics
Use of Energy
Use of Equipment
Use of Labor Inputs
Money Price
Money Profit
Money Cost
True Value
Value Add
True Cost
Sun
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

53. MULTI DIMENSION IMPACT ACCOUNTING
Sun
FOOD
Activities
Individual
QoL
Individual
QoL
What FOOD to BUY or NOT-TO-BUY
Sun
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
Money Price
Money Profit
Money Cost
True Value
Total Value Add
True Cost
Perceived Value
User Value Add
Money Price
The USER or
CONSUMER
PERSPECTIVE
The SOCIAL or
TOTAL TRUE
PERSPECTIVE
The BUSINESS
or CORPORATE
PERSPECTIVE

54. MULTI DIMENSION IMPACT ACCOUNTING
Sun
The FOOD Dynamic
Use Energy
for cooking
Get
Nutrition
Sun
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
Buy Food
Cook Food
Eat Food
SUPPLY CHAIN
Energy
Fertilizers
Pesticides
Land
Water
Air
Labor
Growth Hormones
Equipment
Organization
Know How
Light
Transportation
INPUTS
Heat
Mechanization
Food storage
Antibiotics
Use MoneyFinancial
Accounts
Revenues
Money Costs
Pays taxes
Profit
Degrade Land
GHG emissions
Water pollution
Packaging
Wears out
Public
infrastructure
Human
Capital
Private
Business
Public
Commons
Impact
Accounts
Impact on
PEOPLE
Impact on
NATURAL
CAPITAL
Wears out
Physical
Capital

55. REMINDER
This slideset is A WORK-IN-PROGRESS. It will be
upgraded periodically. It is part of a series of more than
50 slidesets. Navigation to all of these is available here:
FEEDBACK is welcome. Please email to Peter Burgess …
peterbnyc@gmail.com … with a catchy phrase in the
subject line so that it gets attention, and please identify
the specific slideset(s) involved. This explanation is
version v150801. The most current text is available at:
MULTI DIMENSION IMPACT ACCOUNTING
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=txt00010199
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=N1-Slidesets-p3

56. THANK YOU
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 to other slides in this series:
MULTI DIMENSION IMPACT ACCOUNTING
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=N1-Slidesets-p3