TrueValueMetrics ... Impact Accounting for the 21st Century

Date: 2024-06-30 Page is: DBtxt003.php L0700-CS-CAPITAL-STATE

CAPITAL / STATE
Accounting for ALL the Capitals

SOCIAL IMPACT / SOCIAL CAPITAL
Determined by INDIVIDUAL and FAMILY and FRIENDS ... also by PLACE and POLICY

HUMAN CAPITAL		RELATIONSHIP CAPITAL		LOCATIONAL CAPITAL
Young Child The basis for everything important ...	Grown Adult ... and enabling a positive contribution.	Family The family an important part of the social structure	Community ... as well as good friends and community.	Place Everything comes together in a place	Products Goods and services accessible and affordable
There has been progress in the past 200 years ... but still far too many people left behind, and not being addressed

ENVIRONMENTAL IMPACT / NATURAL CAPITAL
Social and Economic Progress linked to Massive Degradation of Natural Capital

LAND	WATER	AIR	RESOURCES	BIODIVERSITY	ECOSYSTEMS
Nature has been exploited, depleted and degraded to improve quality of life ... but this is NOT sustainable.

ECONOMIC IMPACT / ECONOMIC CAPITAL
Economic performance linked to massive depletion and degradation of Natural Capital

FINANCIAL CAPITAL	PHYSICAL CAPITAL	INTANGIBLE CAPITAL

Huge expansion of financial wealth, but excessivly concentrated. Amazing innovation mainly to improve profit performance.

The ECONOMY: FINANCIAL CAPITAL

Investors have done very well

Stock market has been spectacular

But Genuine Progress Indicator not so good

THE FINANCIAL ECONOMY
The financial economy has grown robustly since the 1980s. Much of this growth has come from the concentration of economic power by both individuals and corporate organizations at the expense of everyone else.

The ECONOMY: PHYSICAL CAPITAL

Modern city skyscapes are impressive	Quite good buildings, but poor communities		Buildings Many modern buildings cater to the financial sector. Major industrial buildings have located in low wage low regulation countries. Housing optimizes for financial performance much more than social performance.
Bridges are essential for transport networks	Rail is very important for goods and passengers		Infrastructure A complete complex infrastructure is essential for a modern economy. Well developed economies have these infrastructures, while less developed economies do not. Degradation of infrastructure will most likely result in a degradation of the economy as a whole.
Steel - very efficient but energy intensive	Petro-chemicals - not good for the environment	Cement - huge energy in the product	Industrial Processes A complete complex infrastructure is essential for a modern economy. Well developed economies have these infrastructures, while less developed economies do not. Degradation of infrastructure will most likely result in a degradation of the economy as a whole.
Container shipping makes modern trade possible	Huge quantities of freight travel by rail	Mining has very specialized vehicles	Transport Transport systems have been transformed over the past several decades and makes modern trade possible and profitable
	Massive amount of inventory, few workers		Inventory Working capital is still vital to an efficient economic system, but major progress in systems like 'just-in-time' scheduling and e-commerce has changed everything, and there are no indications that the disruption is at an end.

The ECONOMY: INTANGIBLE CAPITAL

Einstein ... an iconic figure that changed the world		Education needs to be about sharing knowledge	Knowledge Capital Knowledge is a foundational resource for modern progress, but there are issues about how it should be managed. One view is that knowledge should be owned by a proprieter and another view is that knowledge is most useful when it is accessible by everyone
Governance, rule of law, system of justics	Enterprise ecosystem of many organizations		Institutional Capital Institutions complement the individual in important and complex ways. The difficulties associated with the conflicts between the goals of an individual and the needs of a society are well documented through the ages. The Greeks articulated the idea of 'Demos' which survives in a very different form in modern democracy.
Danse celebrates beauty and the human spirit	Enterprise ecosystem of many organizations		Cultural Capital Dance, music, art, tradition, ... all sorts of good things that make life worth living.
Religion has been a huge influence on the world			Religion / Spiritual Capital Religion has been a central part of society for thousands of years. Religion has been a great power for good, and also has been used in a variety of evil ways. The decline of religion and associated codes of behavior is a social destabilization that is of concern as are the connections between religious ideologies, social media and extreme violence

SOME DIALOG ABOUT CAPITAL
What is essential is that the concept of CAPITAL includes everything!

GO TOP

INPAGE NAVIGATION	SITE NAVIGATION
CAPITALS The critical concept is that there should be accountability for the impact on ALL of capital, not merely financial capital.
FRAMING THE CAPITAL QUESTION This framing by Bojan Radej et al uses a 4 capital segmentation	GO #Bojan-Radej
	7 DIMENSION CAPITALISM by TVM This 7D Capital approach was proposed by TVM in 2015. It has subsequengly been modified as a 6 Capital segmentation that maps very well to some of the other initatives for analysis and reporting. The People Dimension: (1) ... Human Capital; (2) ... Social Capital; The Man Built Systems and Structures: (3) ... Financial Capital; (4) ... Physical Capital; (5) ... Knowledge Capital; (6) ... Institutional Capital; Nature and Natural Systems (7) ... Natural Capital The key concept proposed for this analytical framework is not the number of capitals and the precise way the capitals are segmented but the idea that ALL capitals should be included in the analytical framework and not simply the financial capital. For the purpose of analysis, the idea of capital and the idea of 'state' are the same. This is convenient in so far as this makes the TVIA analysis approach work in a similar way to the way conventional double entry accounting works.

	Open list0300-7D-Capitalism
	Open list0300-7D-Capitalism-AAA

A THREE (3) SEGMENT FRAMING OF CAPITAL
An approach proposed by TVM in 2016 ... simple and includes ALL of Capital
The 3 Main Segments of Capital:
... HUMAN CAPITAL;
... NATURAL CAPITAL;
... CREATED CAPITAL (which includes FINANCIAL CAPITAL)
Over a long period of time, PEOPLE have worked to create CREATED CAPITAL in order to exploit NATURAL CAPITAL to achieve a better QUALITY OF LIFE. The process has been very successful BUT in the last century the depletion and damage to NATURAL CAPITAL has the potential to make the system unsustainable. This has been aggravated by the use of MONEY and FINANCIAL WEALTH as a dominant part of the decision making processes!

MULTIPLE SUB-SEGMENTS OF CAPITAL Multiple sub-segments that are congruent with multiple units of account
HC - HUMAN CAPITAL:
(1) ... Human (Personal) Capital; and
(2) ... Social (Community / Relational) Capital.
NC - NATURAL CAPITAL:
(1) ... Land;
(2) ... Water;
(3) ... Air;
(4) ... Ecosystem Services;
(5) ... Water;
(6) ... Mineral Resources; and
(7) ... Energy Resources.
CPC - CREATED PHYSICAL CAPITAL:
(4) ... Physical Capital;
CFC - CREATED INTANGIBLE CAPITAL:
(5) ... Intangible Capital.
CFC - CREATED FINANCIAL CAPITAL:
(1) ... Financial Capital.

The main UNITS OF ACCOUNT
...... units of account for MONEY
............ one for each CURRENCY
...... there are units of account for PEOPLE
............ one for LIFE ITSELF
............ one for QUALITY OF LIFE (perhaps with further sub-divisions)
...... there will be several units of account for NATURE
............ one for LAND
............ one for WATER
............ one for AIR
............ one for Carbon/GHG/Climate
............ one for BIO-DIVERSITY
............ one for ECOSYSTEM SERVICES

In the TVA data architecture there are multiple PERSPECTIVES which are similar to REPORTING ENTITIES as routinely used in conventional accounting:
...... ORGANIZATION
...... PEOPLE
...... COMMUNITY
...... PLACE
...... PROCESS
...... PRODUCT
In addition there are STREAMS / STRANDS / STRINGS because of the importance of these in FLOWING through the SEES in a multitude of complex ways. These are ways that each of the REPORTING ENTITIES has impact on multiple capitals as the element flows through the system both in terms of space and in terms of time.

EXAMPLES
Most of the EXAMPLES do not incorporate ALL the capitals

CORPORATE GOVERNANCE ... Capitalism for the Long Term
Dominic Barton ... Harvard Business Review 2011
Dominic Barton is the global managing director of McKinsey & Company and a trustee of the Brookings Institution.

TPB Note: Several well known names in economic history and current financial economy leadership are referred to in this essay which makes the point that in the long run a business that does not deliver social good cannot exist, but in the short run all sorts of bad outcomes are possible, including issues like excessive executive pay, short term high frequency stock market trading .

Open file 11709

THE FOUR CAPITAL MODEL, MATRIX AND ACCOUNTS ... by-Bojan-Radej
Abstract:
The sustainability imperative can be translated into a claim for homothetic growth (Giraud, 1996) which equalises growth opportunities for all forms of capital: economic, social, human and natural. In order to apply this imperative, policymakers need empirical and analytically rigorous tools to present interactions between capitals as multiple and parallel. For this purpose Ekins and Medhurst (2003) compiled the four capital model based on the combined quantitative-qualitative methodology of ‘sustainability assessment framework’ that is derived from impact assessment methodology. This expert-based assessment technique is well-known in ecological and sustainable economics. The paper finds that Ekins and Medhurst applied microscopic (project) assessment approach for studying macroscopic phenomena such as development programmes consisting of tens or hundreds projects. The methodological consequence is that they could not fully utilize the potential of the model in its complexity. Thus, a more orthodox formulation is proposed which at first transforms the sustainability assessment framework into the standard Leontief’s (1970) input-output matrix from which the standard accounting tool – an integrated system of capital accounts – is derived. It is only after this adjustment of the starting model that one can tell not only how the realisation of the particular policy, plan or programme will influence each of the four forms of capital; but more relevantly, one can identify also all trade-offs and synergies that would be initiated with these policies amongst the forms of capital themselves. Recognition of these multiple relations appears as a precondition for balanced sustainable wealth creation.
http://www.truevaluemetrics.org/DBpdfs/Economics/OECD/The-Four-Capital-Model-by-Bojan-Radej.pdf

TPB Note: These four capitals are:
... Economic Capital
... Human Capital
... Social Capital
... Natural Capital
They reflect ALL the capital and are a different segmentation of the total arising from the different background of the author and the purpose of his work.
In the prevailing TVIA primary segmentation of PEOPLE; NATURE and CREATED PEOPLE BUILT CAPITAL the mapping merges Social Capital into PEOPLE and CREATED CAPITAL
At the second level Economic Capital which approximates to CREATED CAPITAL disaggregates into Created Financial Capital, Created Physical Capital and Created Intangible Capital
At a third level of disaggregation capitals are further segmented in order to reflect the manner in which the whole of the socio-enviro-economic system (SEES) works together and is interconnected in both simple and complex ways.
While the work of Bojan Radej maps neatly into the thinking associated with economists and social scientists, the TVIA segmentation maps better into the functional accounting and financial analysis associated with the corporate organization (accounting and management information) and stock markets (stock prices and financial analysis)

	Open PDF ... The-Four-Capital-Model-by-Bojan-Radej
Aggregation Problem in Evaluation of Sustainable Development ... by-Bojan-Radej Abstract: Evaluators of large-scale policy interventions have an aggregation problem (Scriven) arising from incommensurability of assessed policy impacts. Leopold et al. recognised this and left evaluation results in a disaggregated form. However, they failed to observe that cross-sectional impacts are at least weakly commensurable. Ekins and Medhurst have acknowledged this, but did not implement the finding consistently. When inconsistency is removed, fragmented results are first partly aggregated into a square input-output matrix of impacts on the meso level, and then synthesised correlatively. The aggregation problem is further studied in a horizontal perspective by extending Dopfer et al.’s classification of Meso 1, 2 and 3 sub-levels of synthesis with Meso 2a and 2b. One of our conclusions is that a precondition for neutral evaluation of complex policy intervention is not only an objective analysis of policy impacts but also a consistent synthesis of poorly compatible and value laden detailed evidence. TPB Note: The aggregation problem is major constraint to enabling timely discussion of socio-enviro-economic performance. Financial performance is the subject of real time analysis by the investment community, but everything to do with social impact and environmental impact is not part of this conversation ... rather it gets attention once in a while whereas the financial performance is real time. I argue that a lot of data are available, but no way to aggegate. The work done here by Bojan Radej can be helpful in resolving this constraint.	http://www.truevaluemetrics.org/DBpdfs/Economics/OECD/Bojan-Radej-Apples-and-Oranges-Apr-4-2016.pdf' Bojan-Radej-Apples-and-Oranges-Apr-4-2016.pdf'		Open PDF ... Bojan-Radej-Apples-and-Oranges-Apr-4-2016.pdf

Multiple Capitals ... essential foundation for value / impact accountancy
Six Capitals ... BOOK by JANE GLEESON-WHITE ‘Six Capitals or Can Accountants Save the Planet'	Open file 13599
Six Capitals ... BOOK by JANE GLEESON-WHITE ‘Six Capitals or Can Accountants Save the Planet'	Open external link
6-Capitals-Can-accountants-save-the-world-book-review 'http://truevaluemetrics.org/DBpdfs/Capitals/6-Capitals-Can-accountants-save-the-world-book-review.pdf'	Open PDF ... 6-Capitals-Can-accountants-save-the-world-book-review
Can-The-Accountants-Save-The-Planet-excerpt-review-AFR-October-2014 'http://truevaluemetrics.org/DBpdfs/Can-The-Accountants-Save-The-Planet-excerpt-review-AFR-October-2014.pdf'	Open PDF ... Can-The-Accountants-Save-The-Planet-excerpt-review-AFR-October-2014

SOCIAL CAPITAL / QUALITY OF LIFE ... m Determined in part by the INDIVIDUAL and FAMILY and FRIENDS Determined in part by PLACE: Access to goods and services ... and community
An Individual A better quality of life for everyone ... more	The Family The family an important part of the social structure	The Community Good friends and community positive for quality of life	The Place Everything comes together in a place ... or doesn't ... more	Nature The environment really matters ... for health and sustainability ... m	The Economy The dignity of work, and source of everything to enable the good life ... m

HAPPINESS ... m	Housing ... more	Material goods ... m	Opportunities ... m	Preparation ... m	Employment ... more	Income ... more	Wealth ... more
	Good health ... more	Family ... more	Community ... more	Stress ... more	Longevity ... more
PLACE ... more	Clean air ... more	Clean water ... more	Good Food ... more	Energy ... more	Health service ... m	Education ... more	Transport ... more
	Safety ... more	Religion ... more	Recreation ... more	Culture ... more	Community ... more

NATURAL CAPITAL / ENVIRONMENT ... m Social and Economic Progress has been achieved by the depletion and degradation of Natural Capital
LAND Natural Essential habitat for all sorts of living organizms ... more	LAND Agricultural Huge land areas now used for agriculture	LAND Built up Much land now built over with various types of economic development	FRESH AIR Fresh air is very good for human health and longevity ... more	FRESH WATER Without water there is no life, and now becoming increasingly scarce ... m	OCEAN WATER A huge energy sink, and where all the world's garbage accumulates ... m
MINERAL RESOURCES The raw materials for most of the useful products we use every day ... m	FOSSIL FUELS The sources of power that made the industrial revolution possible ... m	CLIMATE SYSTEMS The essential mechanisms that have kept the climate stable until now ... m	ECOLOGICAL SYSTEMS The many mechanisms that serve to recycle everything in nature ... m	BIODIVERSITY - FAUNA Animals, birds, fish, reptiles, insects and other life forms ... m	BIODIVERSITY - FLORA Millions of species of plants that occupy a complex ecosystem ... m

ECONOMIC CAPITAL / FINANCIAL WEALTH ... m Social and Economic Progress has been achieved by the depletion and degradation of Natural Capital
PHYSICAL CAPITAL All of the people built systems and structures that make the modern economy function. ... m	Buildings Buildings provide shelter and places to work but very inefficient ... m	Infrastructure Many sorts of infrastructure are essential for a modern economy ... m	Processes Modern production processes have become very efficient but energy intensive ... m	Transport Transport and logistics are enabling global trade and sustainable development ... m	Working Capital Inventory, receivables and financial liquidity are essential to a viable society and economy ... m
OTHER ECONOMIC CAPITALS More people built systems and structures that make the modern economy function.	FINANCIAL Money makes the world go round, but it is only a lubricant ... m	KNOWLEDGE Education is foundational and essential for a better world ... m	INSTITUTIONAL Organizations, rule of law, etc make an enabling environment ... m	CULTURAL Dance, music, tradition, religion ... all sorts of good things that make life worth living ... m	LOCATIONAL Place is where everything comes together and makes a difference ... m

HUMAN CAPITAL
PEOPLE / QUALITY OF LIFE / COST OF LIVING / CONTRIBUTION TO SOCIETY
Human Capital / Babies / Families / Healthy Food

Open L0700-CS-SC-HC-HUMAN-CAPITAL

RELATIONSHIP CAPITAL
PEOPLE IN GROUPS / IN COMMUNITIES / IN SOCIETY
Families / Friends / Communities / Connections

Open L0700-CS-SC-RC-RELATIONSHIP-CAPITAL

NATURAL CAPITAL

Open L070-CS-NC-NATURAL-CAPITAL

NATURAL CAPITAL
NATURE / NATURAL SYSTEMS / NATURAL RESOURCES
Planet Earth / Land/ Air / Water / Trees / Storms /

ECONOMIC CAPITAL

Open L070-CS-EC-ECONOMIC-CAPITAL

FINANCIAL CAPITAL
MONEY WEALTH / MONETIZED VALUE
Money / Profit growth / GDP growth / Stock Prices / Cost push inflation / Wages chasing prices

Open L0700-CS-EC-FC-FINANCIAL-CAPITAL

PHYSICAL CAPITAL
BUILDINGS / INFRASTRUCTURE / MACHINERY AND EQUIPMENT / TRANSPORT EQUIPMENT
Indusrial Plant / Buildings / Vehicles / Bridges / Rail / Water / Ports /

Open L0700-CS-EC-PC-PHYSICAL-CAPITAL

INTANGIBLE CAPITAL

INSTITUTIONAL CAPITAL
RULE OF LAW / SECURITY / KNOWLEDGE / INSTITUTIONS / CULTURE / LOCATION / ETC.
Laws / Justice / Security / Knowledge / Culture

Open CS-EC-IC-INSTITUTIONAL-CAPITAL

SOME DIALOG ABOUT CAPITAL
What is essential is that the concept of CAPITAL includes everything!

GO TOP

	INPAGE NAVIGATION	SITE NAVIGATION
CAPITALS The critical concept is that there should be accountability for the impact on ALL of capital, not merely financial capital.
FRAMING THE CAPITAL QUESTION This framing by Bojan Radej et al uses a 4 capital segmentation	GO #Bojan-Radej
7 DIMENSION CAPITALISM by TVM This 7D Capital approach was proposed by TVM in 2015. It has subsequengly been modified as a 6 Capital segmentation that maps very well to some of the other initatives for analysis and reporting. The People Dimension: (1) ... Human Capital; (2) ... Social Capital; The Man Built Systems and Structures: (3) ... Financial Capital; (4) ... Physical Capital; (5) ... Knowledge Capital; (6) ... Institutional Capital; Nature and Natural Systems (7) ... Natural Capital The key concept proposed for this analytical framework is not the number of capitals and the precise way the capitals are segmented but the idea that ALL capitals should be included in the analytical framework and not simply the financial capital. For the purpose of analysis, the idea of capital and the idea of 'state' are the same. This is convenient in so far as this makes the TVIA analysis approach work in a similar way to the way conventional double entry accounting works.		Open list0300-7D-Capitalism Open list0300-7D-Capitalism-AAA

	A THREE (3) SEGMENT FRAMING OF CAPITAL An approach proposed by TVM in 2016 ... simple and includes ALL of Capital The 3 Main Segments of Capital: ... HUMAN CAPITAL; ... NATURAL CAPITAL; ... CREATED CAPITAL (which includes FINANCIAL CAPITAL) Over a long period of time, PEOPLE have worked to create CREATED CAPITAL in order to exploit NATURAL CAPITAL to achieve a better QUALITY OF LIFE. The process has been very successful BUT in the last century the depletion and damage to NATURAL CAPITAL has the potential to make the system unsustainable. This has been aggravated by the use of MONEY and FINANCIAL WEALTH as a dominant part of the decision making processes!
	MULTIPLE SUB-SEGMENTS OF CAPITAL Multiple sub-segments that are congruent with multiple *units of account* HC - HUMAN CAPITAL: (1) ... Human (Personal) Capital; and (2) ... Social (Community / Relational) Capital. NC - NATURAL CAPITAL: (1) ... Land; (2) ... Water; (3) ... Air; (4) ... Ecosystem Services; (5) ... Water; (6) ... Mineral Resources; and (7) ... Energy Resources. CPC - CREATED PHYSICAL CAPITAL: (4) ... Physical Capital; CFC - CREATED INTANGIBLE CAPITAL: (5) ... Intangible Capital. CFC - CREATED FINANCIAL CAPITAL: (1) ... Financial Capital. The main UNITS OF ACCOUNT ...... units of account for MONEY ............ one for each CURRENCY ...... there are units of account for PEOPLE ............ one for LIFE ITSELF ............ one for QUALITY OF LIFE (perhaps with further sub-divisions) ...... there will be several units of account for NATURE ............ one for LAND ............ one for WATER ............ one for AIR ............ one for Carbon/GHG/Climate ............ one for BIO-DIVERSITY ............ one for ECOSYSTEM SERVICES In the TVA data architecture there are multiple PERSPECTIVES which are similar to REPORTING ENTITIES as routinely used in conventional accounting: ...... ORGANIZATION ...... PEOPLE ...... COMMUNITY ...... PLACE ...... PROCESS ...... PRODUCT In addition there are STREAMS / STRANDS / STRINGS because of the importance of these in FLOWING through the SEES in a multitude of complex ways. These are ways that each of the REPORTING ENTITIES has impact on multiple capitals as the element flows through the system both in terms of space and in terms of time.

EXAMPLES
Most of the EXAMPLES do not incorporate ALL the capitals

Open file 11709

	THE FOUR CAPITAL MODEL, MATRIX AND ACCOUNTS ... by-Bojan-Radej Abstract: The sustainability imperative can be translated into a claim for homothetic growth (Giraud, 1996) which equalises growth opportunities for all forms of capital: economic, social, human and natural. In order to apply this imperative, policymakers need empirical and analytically rigorous tools to present interactions between capitals as multiple and parallel. For this purpose Ekins and Medhurst (2003) compiled the four capital model based on the combined quantitative-qualitative methodology of ‘sustainability assessment framework’ that is derived from impact assessment methodology. This expert-based assessment technique is well-known in ecological and sustainable economics. The paper finds that Ekins and Medhurst applied microscopic (project) assessment approach for studying macroscopic phenomena such as development programmes consisting of tens or hundreds projects. The methodological consequence is that they could not fully utilize the potential of the model in its complexity. Thus, a more orthodox formulation is proposed which at first transforms the sustainability assessment framework into the standard Leontief’s (1970) input-output matrix from which the standard accounting tool – an integrated system of capital accounts – is derived. It is only after this adjustment of the starting model that one can tell not only how the realisation of the particular policy, plan or programme will influence each of the four forms of capital; but more relevantly, one can identify also all trade-offs and synergies that would be initiated with these policies amongst the forms of capital themselves. Recognition of these multiple relations appears as a precondition for balanced sustainable wealth creation. http://www.truevaluemetrics.org/DBpdfs/Economics/OECD/The-Four-Capital-Model-by-Bojan-Radej.pdf TPB Note: These four capitals are: ... Economic Capital ... Human Capital ... Social Capital ... Natural Capital They reflect ALL the capital and are a different segmentation of the total arising from the different background of the author and the purpose of his work. In the prevailing TVIA primary segmentation of PEOPLE; NATURE and CREATED PEOPLE BUILT CAPITAL the mapping merges Social Capital into PEOPLE and CREATED CAPITAL At the second level Economic Capital which approximates to CREATED CAPITAL disaggregates into Created Financial Capital, Created Physical Capital and Created Intangible Capital At a third level of disaggregation capitals are further segmented in order to reflect the manner in which the whole of the socio-enviro-economic system (SEES) works together and is interconnected in both simple and complex ways. While the work of Bojan Radej maps neatly into the thinking associated with economists and social scientists, the TVIA segmentation maps better into the functional accounting and financial analysis associated with the corporate organization (accounting and management information) and stock markets (stock prices and financial analysis)	Open PDF ... The-Four-Capital-Model-by-Bojan-Radej
	Aggregation Problem in Evaluation of Sustainable Development ... by-Bojan-Radej Abstract: Evaluators of large-scale policy interventions have an aggregation problem (Scriven) arising from incommensurability of assessed policy impacts. Leopold et al. recognised this and left evaluation results in a disaggregated form. However, they failed to observe that cross-sectional impacts are at least weakly commensurable. Ekins and Medhurst have acknowledged this, but did not implement the finding consistently. When inconsistency is removed, fragmented results are first partly aggregated into a square input-output matrix of impacts on the meso level, and then synthesised correlatively. The aggregation problem is further studied in a horizontal perspective by extending Dopfer et al.’s classification of Meso 1, 2 and 3 sub-levels of synthesis with Meso 2a and 2b. One of our conclusions is that a precondition for neutral evaluation of complex policy intervention is not only an objective analysis of policy impacts but also a consistent synthesis of poorly compatible and value laden detailed evidence. http://www.truevaluemetrics.org/DBpdfs/Economics/OECD/Bojan-Radej-Apples-and-Oranges-Apr-4-2016.pdf' TPB Note: The aggregation problem is major constraint to enabling timely discussion of socio-enviro-economic performance. Financial performance is the subject of real time analysis by the investment community, but everything to do with social impact and environmental impact is not part of this conversation ... rather it gets attention once in a while whereas the financial performance is real time. I argue that a lot of data are available, but no way to aggegate. The work done here by Bojan Radej can be helpful in resolving this constraint.	Open PDF ... Bojan-Radej-Apples-and-Oranges-Apr-4-2016.pdf

Shared Value Reporting by True Price
From True Price

698 400

True Price is embracing ALL the capitals as does the TVIA initiative. The segmentation is as follows:

True Price	True Value Impact Accounting
(1) ... Financial Capital;	CFC ... Created Financial Capital
(2) ... Manufactured Capital;	CPC ... Created Physical Capital
(3) ... Intellectual Capital;	CIC ... Created Intangible Capital
(4) ... Environmental Capital;	NC ... Natural Capital
(5) ... Social Capital; and	SC ... Social and Relational Capital
(6) ... Human Capital.	HC ... Human Capital

Open file 12899

Open pdf ... TruePrice-Integrated-Profit-and-Loss-Creating-Shared-Value-with-Integrated-Thinking

AN 8 CAPITAL CONSTRUCT
From Appleseed Permaculture

Appleseed	True Value Impact Accounting
(1) ... Cultural ;	CIC/HC ... Created Intangible Capital / Social Capital
(2) ... Experiential ;	CIC/HC ... Created Intangible Capital / Social Capital
(3) ... Intellectual Capital;	CIC/HC ... Created Intangible Capital / Social Capital
(4) ... Spiritual ;	CIC/HC ... Created Intangible Capital / Social Capital
(5) ... Social Capital	SC ... Social and Relational Capital
(6) ... Material	CPC ... Created Physical Capital
(7) ... Financial	CFC ... Created Financial Capital
(8) ... Living	NC ... Natural Capital

Open file 12686

Multiple Capitals ... essential foundation for value / impact accountancy
Six Capitals ... BOOK by JANE GLEESON-WHITE ‘Six Capitals or Can Accountants Save the Planet'	Open file 13599	Open external link

A Graphic from Appleseed Permaculture
The US dollar is currency, as is the European Euro.
The Dollar and the Euro are money that serves as both a medium of exchange and a store of value
The 'currencies' described in this concept are the value flows ... often intangible ... that are associated with each of the capitals
The concept of 'complexing to' has some similarity with the concept of TVIA where the STREAM / STRAND/ STRING is one of the most important REPORTING ENTITIES because of the way PRODUCTS flow through the system having IMPACT all the time and everywhere.

THE SEGMENTATION OF CAPITAL
There is no 'right' way to categorize or segment capital.
The critical key concept is that ALL of capital is included.

An 8 segment breakdown

The framing described
1 ... ... Individual
2 ... ... Intellectual
3 ... ... Social
4 ... ... Cultural
5 ... ... Natural Capital
6 ... ... Financial
7 ... ... Built
8 ... ... Political

The top TVM segments are:

Social Capital (comprising Human, Relational and Locational)
Natural Capital
Economic Capital
... Financial Capital
... Physical Capital
... Intangible Capital (comprising Knowledge, Institutional, Cultural, etc. )

So this maps as follows:

Social Capital (comprising Human, Relational and Locational)
... ... Individual
... ... Intellectual
... ... Social
... ... Cultural
Natural Capital
... ... Natural Capital
Economic Capital
... Financial Capital
... ... Financial
... Physical Capital
... ... Built
... Intangible Capital (comprising Knowledge, Institutional, Cultural, etc. )
... ... Political
... ... Intellectual
... ... Cultural

Segmenting the Capitals ... Forum for the Future
365 272
This has some similarity with the TVM framing. There are 3 main segments as in the TVM framing as there are with this. With TVM Social Capital is subdivided into Human Capital. Relational Capital and Locational Capital. With TVM, Economic Capital is subdivided into Financial Capital, Physical Capital and Intangible Capitals. The Intangible Capital is missing from this diagram. For TVM accounting and analysis about 30 subdivisions of the capitals are used.
'http://truevaluemetrics.org/DBpdfs/Metrics/Forum-for-the-Future/Forum-for-the-Future-five-capitals-model.pdf'	Open PDF ... Forum-for-the-Future-five-capitals-model

SAP perspective of segmentation

There is a growing recognition that performance must embrace not only the profit dimension, but should comprise social, economic and environmental. This SAP image shows this, but it also highlights the continuing concept that the corporate business is at the center of this universe. TVM frames the system with people and society at the center of the system with Natural Capital and Economic Capital supporting, enabling, improving and sustaining Social Capital.

KPMG view of Socio-Enviro-Economic System

TPB observation: KPMG is one of the world's largest accountancy firms ... yet this presentation is devoid and any meaningful connection to the core concepts that make accountancy so powerful, and deserving to be at the center of almost every major management information system in the corporate world anywhere on the planet. As I see, it, the accountancy profession is missing a huge opportunity to expand its role in management information by enhancing accountancy to embrace not only financial transactions but all the transactions that impact all the capitals. This is why TVM has the potential to be powerful and a gamechanger.

Figure 4 from this report: 'http://truevaluemetrics.org/DBpdfs/ImpactAccounting/KPMG-A-New-Vision-of-Value-2014.pdf'	Open PDF ... KPMG-A-New-Vision-of-Value-2014.pdf
'http://truevaluemetrics.org/DBpdfs/ImpactAccounting/KPMG-A-New-Vision-of-Value-2014.pdf'	Open PDF ... KPMG-A-New-Vision-of-Value-2014.pdf

... Urbanization
... Population Growth
... Wealth
... Food Security
... Ecosystem Decline
... Deforestation
... Climate Change / CO2
... Energy and Fuel
... Material Resource Scarcity
... Water Scarcity

SITE COUNT