Difference between revisions of "MultiCapital Accounting"

From P2P Foundation
Jump to navigation Jump to search
 
Line 1: Line 1:
 
 
'''= "the performance of a society or organization is best understood in terms of what its impacts on vital capitals are, and with specific reference to their limits".''' [http://www.sustainableorganizations.org/Multiple_Capital_Accounting.pdf]
 
'''= "the performance of a society or organization is best understood in terms of what its impacts on vital capitals are, and with specific reference to their limits".''' [http://www.sustainableorganizations.org/Multiple_Capital_Accounting.pdf]
  
 
URL = http://www.multicapitalscorecard.com
 
URL = http://www.multicapitalscorecard.com
  
=Contextual Citation=
+
== Contextual Citation ==
  
 
"Performance instead is assessed relative to what an organization’s impacts on Vital Capitals must be in order to be sustainable – socially, economically environmentally – with the units of measurement being determined by each capital."
 
"Performance instead is assessed relative to what an organization’s impacts on Vital Capitals must be in order to be sustainable – socially, economically environmentally – with the units of measurement being determined by each capital."
 
(http://www.multicapitalscorecard.com/MultiCapital_Scorecard_Intro.pdf)
 
(http://www.multicapitalscorecard.com/MultiCapital_Scorecard_Intro.pdf)
  
 
+
== Description ==
=Description=
 
  
 
Mark W. McElroy:
 
Mark W. McElroy:
Line 16: Line 14:
 
"Arguably the most pervasive principle found in the
 
"Arguably the most pervasive principle found in the
 
100+ year old literature on sustainability
 
100+ year old literature on sustainability
 
+
* That the performance of a society or organization is best understood in terms of what its impacts on vital capitals are, and with specific reference to their limits
That the performance of a society or organization is best
+
* Vital capitals: natural, human, social, constructed, intellectual and economic "
understood in terms of what its impacts on vital capitals
 
are, and with specific reference to their limits
 
 
 
Vital capitals: natural, human, social, constructed,
 
intellectual and economic "
 
 
 
(http://www.sustainableorganizations.org/Multiple_Capital_Accounting.pdf)
 
 
 
=Characteristics=
 
 
 
==MCA now also standards-based==
 
 
 
• [[International Integrated Reporting Council]] (IIRC)
 
 
 
“Integrated thinking is the active consideration by an organization
 
of the relationships between its various operating and functional
 
units and the capitals that the organization uses or affects.”
 
(http://www.sustainableorganizations.org/Multiple_Capital_Accounting.pdf)
 
 
 
 
 
• [[Sustainability Accounting Standards Board]] (SASB)
 
 
 
“Material sustainability issues arise in industries that rely on
 
common capitals as a source of value creation, beyond financial
 
or manufactured capital … Common capitals, as used in this
 
Framework, include natural capital … and human capital.”
 
 
(http://www.sustainableorganizations.org/Multiple_Capital_Accounting.pdf)
 
(http://www.sustainableorganizations.org/Multiple_Capital_Accounting.pdf)
  
 +
== Characteristics ==
  
• [[Global Initiative for Sustainability Ratings]] (GISR)
+
===MCA now also standards-based===
  
“Leading reporting initiatives such as IIRC and SASB include
+
* [[International Integrated Reporting Council]] (IIRC)
references to multiple, or ‘vital,’ capitals. GISR embraces the
+
: “Integrated thinking is the active consideration by an organization of the relationships between its various operating and functional units and the capitals that the organization uses or affects.” (http://www.sustainableorganizations.org/Multiple_Capital_Accounting.pdf)
multiple capitals framework as well.”
+
* [[Sustainability Accounting Standards Board]] (SASB)
(http://www.sustainableorganizations.org/Multiple_Capital_Accounting.pdf)
+
: “Material sustainability issues arise in industries that rely on common capitals as a source of value creation, beyond financial or manufactured capital … Common capitals, as used in this Framework, include natural capital … and human capital.” (http://www.sustainableorganizations.org/Multiple_Capital_Accounting.pdf)
  
 +
* [[Global Initiative for Sustainability Ratings]] (GISR)
 +
: “Leading reporting initiatives such as IIRC and SASB include references to multiple, or ‘vital,’ capitals. GISR embraces the multiple capitals framework as well.” (http://www.sustainableorganizations.org/Multiple_Capital_Accounting.pdf)
  
=Typology=
+
== Typology ==
  
 
"There are arguably two schools of thought or broad
 
"There are arguably two schools of thought or broad
 
approaches as to how MCA should be done:
 
approaches as to how MCA should be done:
  
==1. Market Value (MV)==
+
===1. Market Value (MV)===
  
MV school is about measuring and monetizing
+
* MV school is about measuring and monetizing intangibles and externalities as a basis for explaining market caps and the ability to create $ value
intangibles and externalities as a basis for explaining
+
* Market Value School
market caps and the ability to create $ value
+
** First, this is arguably the IIRC’s school of thought because it stresses measurement, management and reporting of capital impacts primarily for the benefit of shareholders
 +
** Prominent illustrations of this approach include the EP&L method (pioneered at Puma); the TIMM method (proprietary PwC tool); and Ernst & Young’s approach to Integrated Reporting
 +
** Forthcoming Natural Capital Protocol may also fit in here
  
• Market Value School
+
===2. Triple Bottom Line (TBL)===
 
 
– First, this is arguably the IIRC’s school of thought because
 
it stresses measurement, management and reporting of
 
capital impacts primarily for the benefit of shareholders
 
 
 
– Prominent illustrations of this approach include the EP&L
 
method (pioneered at Puma); the TIMM method
 
(proprietary PwC tool); and Ernst & Young’s approach to
 
Integrated Reporting
 
 
 
– Forthcoming Natural Capital Protocol may also fit in here
 
 
 
 
 
 
 
 
 
 
 
 
 
==2. Triple Bottom Line (TBL)==
 
 
 
• TBL school, by contrast, is about assessing
 
impacts on vital capitals as a basis for determining
 
the overall performance of organizations
 
 
 
• Triple Bottom Line School
 
– So far only one method extant: the MultiCapital Scorecard
 
• A capital-, context-based and open-source TBL system
 
• Early users include Ben & Jerry’s, New Chapter and Cabot "
 
  
 +
* TBL school, by contrast, is about assessing impacts on vital capitals as a basis for determining the overall performance of organizations
 +
* Triple Bottom Line School
 +
** So far only one method extant: the MultiCapital Scorecard
 +
* A capital-, context-based and open-source TBL system
 +
* Early users include Ben & Jerry’s, New Chapter and Cabot "
 
(http://www.sustainableorganizations.org/Multiple_Capital_Accounting.pdf)
 
(http://www.sustainableorganizations.org/Multiple_Capital_Accounting.pdf)
  
=More information=
+
== More information ==
 
+
* [[Multicapitalism]]
 
* the [[MultiCapital Scorecard]]
 
* the [[MultiCapital Scorecard]]
 
  
 
[[Category:P2P Accounting]]
 
[[Category:P2P Accounting]]
 
 
[[Category:Thermodynamic Efficiencies]]
 
[[Category:Thermodynamic Efficiencies]]
 
 
[[Category:Sustainable Manufacturing]]
 
[[Category:Sustainable Manufacturing]]
 
 
[[Category:Ecology]]
 
[[Category:Ecology]]

Latest revision as of 18:39, 2 March 2021

= "the performance of a society or organization is best understood in terms of what its impacts on vital capitals are, and with specific reference to their limits". [1]

URL = http://www.multicapitalscorecard.com

Contextual Citation

"Performance instead is assessed relative to what an organization’s impacts on Vital Capitals must be in order to be sustainable – socially, economically environmentally – with the units of measurement being determined by each capital." (http://www.multicapitalscorecard.com/MultiCapital_Scorecard_Intro.pdf)

Description

Mark W. McElroy:

"Arguably the most pervasive principle found in the 100+ year old literature on sustainability

  • That the performance of a society or organization is best understood in terms of what its impacts on vital capitals are, and with specific reference to their limits
  • Vital capitals: natural, human, social, constructed, intellectual and economic "

(http://www.sustainableorganizations.org/Multiple_Capital_Accounting.pdf)

Characteristics

MCA now also standards-based

“Integrated thinking is the active consideration by an organization of the relationships between its various operating and functional units and the capitals that the organization uses or affects.” (http://www.sustainableorganizations.org/Multiple_Capital_Accounting.pdf)
“Material sustainability issues arise in industries that rely on common capitals as a source of value creation, beyond financial or manufactured capital … Common capitals, as used in this Framework, include natural capital … and human capital.” (http://www.sustainableorganizations.org/Multiple_Capital_Accounting.pdf)
“Leading reporting initiatives such as IIRC and SASB include references to multiple, or ‘vital,’ capitals. GISR embraces the multiple capitals framework as well.” (http://www.sustainableorganizations.org/Multiple_Capital_Accounting.pdf)

Typology

"There are arguably two schools of thought or broad approaches as to how MCA should be done:

1. Market Value (MV)

  • MV school is about measuring and monetizing intangibles and externalities as a basis for explaining market caps and the ability to create $ value
  • Market Value School
    • First, this is arguably the IIRC’s school of thought because it stresses measurement, management and reporting of capital impacts primarily for the benefit of shareholders
    • Prominent illustrations of this approach include the EP&L method (pioneered at Puma); the TIMM method (proprietary PwC tool); and Ernst & Young’s approach to Integrated Reporting
    • Forthcoming Natural Capital Protocol may also fit in here

2. Triple Bottom Line (TBL)

  • TBL school, by contrast, is about assessing impacts on vital capitals as a basis for determining the overall performance of organizations
  • Triple Bottom Line School
    • So far only one method extant: the MultiCapital Scorecard
  • A capital-, context-based and open-source TBL system
  • Early users include Ben & Jerry’s, New Chapter and Cabot "

(http://www.sustainableorganizations.org/Multiple_Capital_Accounting.pdf)

More information