The document discusses the goal of developing a system called Multi Dimension Impact Accounting (MDIA) to measure corporate impacts on people and the environment as rigorously as traditional accounting measures financial impacts. MDIA would create standardized metrics to account for impacts on human capital/well-being, natural/environmental capital, and man-made/economic capital. It would extend double-entry accounting principles to track changes in these different types of capital over time and help manage companies' total impacts. The document outlines how MDIA would establish a comprehensive data architecture and standardized values to incorporate diverse scientific data on impacts.
2. The GOAL is to design and
deploy a system of metrics for
management that accounts for
impact on people and planet as
rigorously as double entry
accounting accounts for
money transactions that
impact profit
MULTI DIMENSION IMPACT ACCOUNTING
18. YELLOW:
The PEOPLE piece … Human Capital (NC)
DIRTY BROWN:
The ECONOMIC piece … Man Built Capital (MBC)
GREEN:
NATURE, ENVIRONMENT … Natural Capital (NC)
MULTI DIMENSION IMPACT ACCOUNTING
COLOR KEY
29. MDIA is ETRICS
The double entry idea
is very powerful:
MULTI DIMENSION IMPACT ACCOUNTING
30. MDIA
MULTI DIMENSION IMPACT ACCOUNTING
is a system of metrics to
enable better management of
everything that matters.
MULTI DIMENSION IMPACT ACCOUNTING
31. MDIA
MULTI DIMENSION IMPACT ACCOUNTING
It is en extension of
conventional accounting and
builds on the amazing power of
the double entry system
MULTI DIMENSION IMPACT ACCOUNTING
32. State … B/S
Flow … P&L
New State … B/S
MULTI DIMENSION IMPACT ACCOUNTING
42. Conventional money profit
accounting works very well for
financial performance … that is
impact on corporate profits
and stock value.
MULTI DIMENSION IMPACT ACCOUNTING
44. You Manage what you Measure.
Attributed to Peter Drucker
When you change the way the game is scored,
you change the way the game is played.
MULTI DIMENSION IMPACT ACCOUNTING
45. MULTI DIMENSION IMPACT ACCOUNTING
The first step is to design and
develop a data architecture
that is congruent with the
realities of the modern global
socio-enviro-economic system
46. Quality of Life and Standard of
Living for PEOPLE should be
measured with a system that is
just as powerful.
MULTI DIMENSION IMPACT ACCOUNTING
47. Resource Depletion should be
measured rigorously and
incorporated into all aspects of
Impact Accounting.
MULTI DIMENSION IMPACT ACCOUNTING
48. Ecosystem Services and Bio-
Degradation should be
measured rigorously and
incorporated into all aspects of
Impact Accounting.
MULTI DIMENSION IMPACT ACCOUNTING
49. MULTI DIMENSION IMPACT ACCOUNTING
The data architecture is already
in a relatively complete form.
50. MULTI DIMENSION IMPACT ACCOUNTING
A massive amount of scientific
data already exists and needs
to be mapped to the MDIA data
architecture.
51. MULTI DIMENSION IMPACT ACCOUNTING
New units of measure need to
be defined so that scientific
data may be converted into
these units of measure.
52. MULTI DIMENSION IMPACT ACCOUNTING
A characteristic of these new
units of measure is that they
will enable complex details to
be summarized easily for
reporting and conversation.
53. MULTI DIMENSION IMPACT ACCOUNTING
These new units of measure
will NOT merely be a market
monetization of an element.
They will be new units that
have the properties of all
physical measures.
54. MULTI DIMENSION IMPACT ACCOUNTING
Standard Values need to be
established for EVERYTHING.
55. MULTI DIMENSION IMPACT ACCOUNTING
Standard Values have much
the same characeristics as
Standard Costs in commercial
cost accounting.
56. MULTI DIMENSION IMPACT ACCOUNTING
In cost accounting Standard
Costs are a way massively to
simplify costing without losing
much, if any, of the utility of the
cost accounting information.
57. MULTI DIMENSION IMPACT ACCOUNTING
Data about PRODUCTS needs
to be organized. The IMPACT of
every PRODUCT in the market
should be 'a click away'.
58. MULTI DIMENSION IMPACT ACCOUNTING
Data about the choices
PEOPLE make needs to be
organized so that there may be
ways for PEOPLE to earn
rewards for making choices
that are good for themselves,
the society and the enviroment.
59. MULTI DIMENSION IMPACT ACCOUNTING
Data business performance will
include IMPACT as rigorously
as there is accounting for
PROFIT.
60. MULTI DIMENSION IMPACT ACCOUNTING
PROCESS is also an element of
the data architecture. There
should be Standards for all
processes.
62. MULTI DIMENSION IMPACT ACCOUNTING
COMPANIES have financial
accounts. MDIA standards may
be used to convert financial
accounts to impact accounts.
63. MULTI DIMENSION IMPACT ACCOUNTING
Operating units of companies
and entities in the supply chain
can be held to account based
on information originating in a
PLACE
64. MULTI DIMENSION IMPACT ACCOUNTING
It should become more and
more difficult for anti-social
operational performance to be
possible simply because it is
out of sight.