Resource Accounting (RA) data, such as that used to populate the spider/radial chart for the 10 indicators of 135 sectors of the Australian economy in Balancing Act (2005), is directly sourced from National Accounts which feed into the statistical databases of United Nations (UN) frameworks and institutions. All data is per unit $ output so that it can be related to company output in monetry terms and GDP.
Relevant Clarity project designs start with an excercise to identify and evaluate project based True Value indictators which are compatible with National Accounts, including, as appropriate, progress to meet global goals such as the Millenium Development Goals and Sustainable Development Goals. In addition, indicator development and evalutation also involves project stakeholders so that Good (= economic), Green (=environmental) and Fair (=social) information is also based on indicators which are considered important locally, sectorally and/or culturally.
Confidence Accounting (CA) is key to display range information which shows uncertainty in TV knowledge. This might occur at the level of an individual indicator (e.g. differing carbon calculators give varying results) or CA Modifer (e.g. various policy scenarios for unburnable carbon, scenarios for commodity value or differing opinions amongst decision makers of a company’s skill sets).
Recent developments in the True Value Framework (TVF) facilitate that every piece of data and information which is used to evaluate True Value can be broken down and viewed at its simplist relationship (semantic triplet) and ‘globally’ challenged. The TVF also facilitates the evaluation of at least two types of data – real and percieved. The input of percieved information e.g. from a restaurant client on the quality of a meal and service, or the opinion from a local resident on a new renewable energy development, can also be distinguished from real information e.g. recognised criteria for fish freshness, or national accounts on carbon emissions reductions, primary energy targets, water use, land or sea disturbance, jobs, income, imports and exports relating to a renewable energy development.
The addition of Mutuallly Distributed Ledger (MDL- aka Blockchain) built onto the TVF potentially has a number of advantages for secure data and knowledge validation, including a historical record of source, indicator progress towards goals and uncertainty range. MDL will highlight a history of inaccurate data or knowledge from the same source compared to the range of real and percieved sources, so that the relability of the TVF data increases over time.
The uncertainty presented by Confidence Accounting ranges populated from the TVF can be coded into investment risk reward by Z/Yen Group and other speciialists, using for example, algorithms which draw on whichever scope and source of information deemed relevant by the investor, fund manager, ganantor etc. and/or recommended by the risk reward specialist.
Updated May 2017 SNJ/JM