SIZE MATTER 3 ... SYSTEM CYCLES A workshop at MIT to link mathematics with the realities of a very complex global integrated socio-enviro-economic system that has been very badly served by money as a metric and a dangerously simplified financial system.

1. SIZE MATTERS
3- SYSTEM CYCLES
File: TVA-p3-01-SIZE-MATTERS-3-160220.odp Peter Burgess (c) All rights reserved
TRUE VALUE ACCOUNTING

2. CONTEXT
This slideset is a Work-in-Progress
and will be updated from time to time.
It is part of a series that aims to
enable better metrics for the complex
socio-enviro-economic system that
we all live in. Metrics are powerful,
but they must be the right metrics.
TRUE VALUE ACCOUNTING

3. The system is complex …
TRUE VALUE ACCOUNTING

4. Complex system … competing agendas
TRUE VALUE ACCOUNTING

5. Managing in a complex
system is a challenge …
The best practice it to drive decision
making with the best / quickest data
about progress and performance and at
the most granular level … this is the
essence of the TVA data architecture.
TRUE VALUE ACCOUNTING

6. MULTI DIMENSION IMPACT ACCOUNTING
CARBON CYCLE

7. MULTI DIMENSION IMPACT ACCOUNTING
University-of-Michigan-Carbon-Cycle-Lecture-Notes
A very readable paper about the CARBON
CYCLE from the University of Michigan …

8. CARBON … an enormously
important scientific element.
… and a critical link between
chemistry and biology
MULTI DIMENSION IMPACT ACCOUNTING

9. The burning of CARBON produces
carbon dioxide, a colorless gas that
changes the heat transfer properties
of the atmosphere.
The chemical formula for carbon
dioxide is CO2
MULTI DIMENSION IMPACT ACCOUNTING

10. CO2 is a Greenhouse Gas (GHG) … an
important causal factor in global
warming.
MULTI DIMENSION IMPACT ACCOUNTING

11. The following slides show various
depictions of the CO2 dimension of
the CARBON CYCLE
MULTI DIMENSION IMPACT ACCOUNTING

12. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOP

13. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOPCARBON CYCLE

14. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOPCARBON RESERVOIRS AND FLUXES

15. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOPCARBON CYCLE – CARBON STORES

16. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOPCARBON SINK

17. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOPTEMPERATURE HISTORY

18. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOPTEMPERATURE HISTORY

19. LOCATION Billion tons carbon
Rocks
Oceans
Soils
Atmosphere (at 360ppm)
Vegetation
1015
g = 1 billion tons = 1 gigaton = 1 Pedagram
MULTI DIMENSION IMPACT ACCOUNTING
65,000,000
39,000
1,580
750
610
STOCKS OF CARBON

20. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOPCARBON … STOCKS AND FLOWS

21. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOPCARBON DIOXIDE CONCENTRATIONS

22. In addition to CARBON DIOXIDE,
there is also METHANE with the
formula CH4
METHANE is a far more potent
greenhouse gas (GHG) than CO2 by a
factor of more than twenty.
MULTI DIMENSION IMPACT ACCOUNTING

23. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOPMETHANE CYCLE

24. NITROGEN CYCLE
MULTI DIMENSION IMPACT ACCOUNTING

25. NITROGEN plays an important
role in the cycle of nature …
MULTI DIMENSION IMPACT ACCOUNTING

26. NITROGEN is an element in many
compounds including:
● Ammonia (NH4);
● Nitrous dioxide (NO2);
● Nitrates;
● Nitrites;
● etc.
MULTI DIMENSION IMPACT ACCOUNTING

27. Many natural processes involving
plants, bacteria and fungi convert
these various compounds to build
balance in nature …
MULTI DIMENSION IMPACT ACCOUNTING

28. NITROGEN plays an important
role in the cycle of nature, but its
heavy use in modern industry
and agriculture has disrupted the
equilibrium of the natural cycle
MULTI DIMENSION IMPACT ACCOUNTING

29. There are many ways to represent
the NITROGEN CYCLE …
MULTI DIMENSION IMPACT ACCOUNTING

30. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Nitrogen Cycle

31. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Nitrogen CycleNitrogen Cycle

32. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Nitrogen Cycle

33. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Nitrogen Cycle

34. 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
Nitrogen Cycle

35. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
EOPNitrogen Cycle

36. NITROGEN is important … but the
balance of this system is outside
the 'planetary bounds' according
to the scientists …
MULTI DIMENSION IMPACT ACCOUNTING

37. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOPPlanetary Boundaries
Image credit: Steffen et al. Science (2015). Journal Science / AAAS

38. WATER CYCLE
MULTI DIMENSION IMPACT ACCOUNTING

39. MULTI DIMENSION IMPACT ACCOUNTING
WATER
WATER FLOW
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun

40. 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

41. 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

42. 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

43. MULTI DIMENSION IMPACT ACCOUNTING
Values in 1000 cubic km/yr
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun

44. MULTI DIMENSION IMPACT ACCOUNTING
Values in 1000 cubic km/yr
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Nitrogen cycle

45. 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

46. MULTI DIMENSION IMPACT ACCOUNTING
Link to: University-of-Michigan ... The-Global-Water-and-Nitrogen-Cycles
WATER CYCLE
A very readable paper about the WATER CYCLE
is this from the University of Michigan …

47. The STOCK of WATER
Cubic Kilometers
Rocks (not usable)
Oceans (97.4% of usable water)
Ice
Groundwater
Lakes and Rivers
Atmosphere (vapor)
MULTI DIMENSION IMPACT ACCOUNTING
150,000,000
1,350,000,000
27,500,000
15,300,000
25,000
13,000

48. 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
A huge amount of water … but most is not potable

49. IF ½ OF THE ICE MELTED, this
would result in a 26.2 metre rise
in sea level … about 86 feet!
Cubic Kilometers
Total ice
50% of ice =
Square kilometers
Surface area of the oceans
Metres
Sea level rise (average)
MULTI DIMENSION IMPACT ACCOUNTING
27,500,000
13,750,000
360,000,000
26.2

50. THIS SLIDESET IS 3 OF 5
SIZE MATTERS 1 … OVERVIEW
http://www.slideshare.net/PeterBurgess2/size-matters1
SIZE MATTERS 2 … KEY CONCEPTS
http://www.slideshare.net/PeterBurgess2/size-matters2
SIZE MATTERS 3 … SYSTEM CYCLES
SIZE MATTERS 4 … PERSPECTIVES
http://www.slideshare.net/PeterBurgess2/size-matters4
SIZE MATTERS 5 … IMPACTS
http://www.slideshare.net/PeterBurgess2/size-matters5
TRUE VALUE ACCOUNTING

51. REMINDER
This slideset is A WORK-IN-PROGRESS. It will be
upgraded periodically. It is part of a series of more than
100 slidesets. Navigation to these is available here:
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=N1-Slidesets-p3
More about the True Value Metrics initiative is at:
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=list0100-MainNav
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) or webpage involved.
TRUE VALUE ACCOUNTING

52. THANK YOU
Some links and contact information:
Email 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 resources:
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=list0100-MainNav#1
TRUE VALUE ACCOUNTING