mdia p3-06-waste-chain-150420
TRANSCRIPT
MULTI DIMENSION IMPACT ACCOUNTING
File: MDIA-p3-06-WASTE-150420.odp Peter Burgess (c) All rights reserved
MDIAPOST USE
WASTE CHAIN
MULTI DIMENSION IMPACT ACCOUNTING
WORK-IN-PROGRESS.SLIDESET STILL IN DEVELOPMENT.UPDATES WILL BE POSTED OVER
THE NEXT SEVERAL WEEKS
WASTE● Waste happens because the system is not working, e.g. food spoilage;
● Waste happens because people are thoughtless and lazy;
● Waste happens because production process technology results in waste;
● Waste happens because companies care about costs but not much about impact on the environment.
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
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Land Fill
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Food Waste
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Electronic Waste
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Beach waste
COMPANIES MAKE WASTE● By how their PRODUCTS are designed;● By how their marketing and advertising operates to get people to buy more than they need;
● By how their performance MIS puts a big emphasis on PROFIT without considering PEOPLE and PLANET
MULTI DIMENSION IMPACT ACCOUNTING
PROCESSES produce WASTE● The processes that transform inputs into products produce more or less waste;
● The use of most energy types results ● in various forms of waste pollution.
MULTI DIMENSION IMPACT ACCOUNTING
PRODUCT results in WASTE● The design of a PRODUCT has a role in reducing waste;
● Decisions about manufacturing PROCESS and SUPPLY CHAIN have a role in waste mitigation;
● The way PEOPLE use PRODUCT has a role in waste;
● The way PEOPLE discard PRODUCT and PACKAGING and the manner of recycling impact waste.
MULTI DIMENSION IMPACT ACCOUNTING
PEOPLE MAKE WASTE● By how they buy PRODUCTS without any reference to the related waste;
● By how they use PRODUCTS with little consideration of the associated waste;
● By how they discard PRODUCTS after use;
● By buying too much;● By throwing away half used products;● By sloppy recycling or none at all.
MULTI DIMENSION IMPACT ACCOUNTING
SYSTEMIC ISSUES● Conventional metrics ignore all costs of waste;
● There are few incentives to reduce waste;
● Recycling is usually inconvenient;● More sales produces more PROFIT, while more sales producing more waste is ignored.
MULTI DIMENSION IMPACT ACCOUNTING
ATMOSPHERIC WASTESThe atmosphere is a convenient dumping ground. There are many different components:● Greenhouse gases; ● Particulates;● Sulphur dioxide and acid rain;● Nitrous oxides and automobile pollution;● Natural atmospheric pollution (e.g.volcanoes);● Aerosol propellants.
MULTI DIMENSION IMPACT ACCOUNTING
GREENHOUSE GASESThe Kyoto Protocol cover emissions of these six main greenhouse gases:● Carbon dioxide (CO2);● Methane (CH4);● Nitrous oxide (N2O);● Hydrofluorocarbons (HFCs);● Perfluorocarbons (PFCs); and● Sulphur hexafluoride (SF6).
SHAME: The US did not sign the accord and Canada subsequently withdrew its agreement
MULTI DIMENSION IMPACT ACCOUNTING
WASTEWATER● Conventional metrics ignore all costs of waste;
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MULTI DIMENSION IMPACT ACCOUNTING
SOLID WASTE● Conventional metrics ignore all costs of waste;
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MULTI DIMENSION IMPACT ACCOUNTING
WASTE in the ENERGY CYCLE● Air pollution has a bad impact on health and wellness, e.g.;● Urban smog containing particulates and noxious
compounds creates respiratory problems;● Rural cooking on open fires.
● Water pollution … bad impact;● Polluted water carries many water borne
diseases including cholera, dysentery and others;
● Solid Waste;● Dangerous toxins in solid waste migrate into the
supply chain for food, potable water, etc.
MULTI DIMENSION IMPACT ACCOUNTING
WASTE in the FOOD CYCLE● Air pollution has a bad impact on health and wellness, e.g.;● Urban smog containing particulates and noxious
compounds creates respiratory problems;● Rural cooking on open fires.
● Water pollution … bad impact;● Polluted water carries many water borne
diseases including cholera, dysentery and others;
● Solid Waste;● Dangerous toxins in solid waste migrate into the
supply chain for food, potable water, etc.
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
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FINANCIAL ACCOUNTSDESCRIBE ECONOMICACTIVITY IN FINANCIAL
OR MONEY TERMSWHILE COMPLETELYIGNORING IMPACT
ON EVERYTHING ELSE
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Financial Accounts describe Economic Activity
Financial Costs
Financial Profit
Financial Revenues
FinancialBalance
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Financial Accounts describe Economic ActivityBOP EOP
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FINANCIAL P&L ACCOUNT
REVENUESProducts 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
MULTI DIMENSION IMPACT ACCOUNTING
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ACCOUNTING FOR EVERYTHINGBOP EOP
REVENUESProducts Sold X Price
VALUE to buyerEquals
HUMAN CAPITAL ADD
Wages and benefitsWhat value to
employee?
Pro-good expendituresWhat value to society?
TaxationWhat value to society?
For products andenergy bought
and this process
Free use of thecommons andpublic services& infrastructure
Degradationof land
Water scarcityand degradationAir pollution:
Impact on peopleAir pollution:
Impact on climate
Air pollution:Impact on people
Solid waste
Resourcedepletion
Environmental Degradation
POSITIVE IMPACT NOTACCOUNTED
FOR
Negativeimpact
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REVENUESProducts 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
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Recycling
SUPPLY CHAIN / LIFE CYCLE● Waste happens at every stage of the supply chain
● Waste happens in every production process;
● Waste happens during the use of a product;
● Waste happens when a product is thrown away.
MULTI DIMENSION IMPACT ACCOUNTING
MULTI DIMENSION IMPACT ACCOUNTING
PRODUCT … the SUPPLY CHAIN
Zero to start
Costs this stage
Profit this stage
Price this stage
Zero to start
Costs this stage
Profit this stage
Price Stage 1
FINANCIAL ACCOUNTS EACH STEP OF THE SUPPLY CHAIN
Cost = Price stage 1
Costs Stage 2
Profit Stage 2
Cum Costs
Cum Profit
Price Stage 2
Cost = Price stage 2
Costs Stage 3
Profit Stage 3
Cum Costs
Cum Profit
Price Stage 3
Cost = Price stage 3
Costs Stage 4
Profit Stage 4
Cum Costs
Cum Profit
Price Stage 4
Cost = Price stage 4
Costs Stage 5
Profit Stage 5
Cum Costs
Cum Profit
Price Stage 5
Cost = Price stage 4
Costs Stage 5
Profit Stage 5
Cum Costs
Cum Profit
Price Stage 5
ETC...
MULTI DIMENSION IMPACT ACCOUNTING
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PRODUCT … the SUPPLY CHAIN
ADJUSTMENTS TO REFLECT IMPACT (EXTERNALITIES)
Zero to start
Costs this stage
Profit this stage
Price this stage
Zero to start
Costs this stage
Profit this stage
Price Stage 1
FINANCIAL ACCOUNTS EACH STEP OF THE SUPPLY CHAIN
Cost = Price stage 1
Costs Stage 2
Profit Stage 2
ImpactStage 1
ImpactStage 1
ImpactStage 1
Cum Costs
Cum Profit
Price Stage 2
ImpactStage 2
ImpactStage 2
ImpactStage 2
Cum Impact
Cum Impact
Cum Impact
Cost = Price stage 2
Costs Stage 3
Profit Stage 3
Cum Costs
Cum Profit
Price Stage 3
ImpactStage 3
ImpactStage 3
ImpactStage 3
Cum Impact
Cum Impact
Cum Impact
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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