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README.md
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Refactor and HF dataset (including texts): Daniel Rosehill
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Source data: International Foundation for Valuing Impacts
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V2 of a refactoring of the Global Value Factor Database (GVFD) by the International Founadtion for Valuing Impacts intended to enhance the original dataset for machine readability and integration into data analysis and visualisation workloads.
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## The Plain Language Intro
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The International Foundation for Valuing Impacts (IFVI) produces an (open-source) database called the Global Value Factor Database.
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Value factors are multipliers whose purpose is to convert between companies' non-environmental "impacts" (across the social and environmental realms) and into units of currency. For standardisation, all value factors convert into US Dollars. To localise them in non-USD jurisidctions, users can simply apply currency conversion after this initial calculation.
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## Impact Accounting's 'Big Idea'
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Various global frameworks govern how companies practice accounting - the most important of which are IFRS and GAAP. These standard-setters do not (themselves) proscribe the mandate to use their methods. But their application is mandated by governments and multilaterals (who may wish to use them to standardise accounting practices within a geopolitical blog, for instance).
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IFRS, for example, is used in more than 140 countries worldwide with an estimated 30-35,000 companies subject to its directives. Trillions of dollars are computed according to its directives and its definition of value.
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As much as accounting rules seem like an unlikely subject for philosophical speculation, peel back the surface and you'll find a pandora's box of questions which impact accounting helps to explore.
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Companies, like people, have effects that extend far beyond generating profit for shareholders (as determined by the rules which we proscribe for those calcualtions) and paying out money through activities like employing workers and buying goods and services from suppliers.
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Refactor and HF dataset (including texts): Daniel Rosehill
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Source data: International Foundation for Valuing Impacts
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V2 of a refactoring of the Global Value Factor Database (GVFD) by the International Founadtion for Valuing Impacts intended to enhance the original dataset for machine readability and integration into data analysis and visualisation workloads.
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The International Foundation for Valuing Impacts (IFVI) produces an (open-source) database called the Global Value Factor Database.
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Value factors are multipliers whose purpose is to convert between companies' non-environmental "impacts" (across the social and environmental realms) and into units of currency. For standardisation, all value factors convert into US Dollars. To localise them in non-USD jurisidctions, users can simply apply currency conversion after this initial calculation.
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## Impact Accounting's 'Big Idea'
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Various global frameworks govern how companies practice accounting - the most important of which are IFRS and GAAP. These standard-setters do not (themselves) proscribe the mandate to use their methods. But their application is mandated by governments and multilaterals (who may wish to use them to standardise accounting practices within a geopolitical blog, for instance).
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IFRS, for example, is used in more than 140 countries worldwide with an estimated 30-35,000 companies subject to its directives. Trillions of dollars are computed according to its directives and its definition of value.
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As much as accounting rules seem like an unlikely subject for philosophical speculation, peel back the surface and you'll find a pandora's box of questions which impact accounting helps to explore.
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If nothing else, impact accounting allows us to model a financial system in which comopanies' environmental and social impacts were integrated into financial reporting. By doing so, we can answer questions like: "if this were the system ... how many companies would actually be profitable at all? And which wouldn't?"
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"Money" - the ultimate arbiter of value in the busines world - is itself an abstraction; a yardstick created by society so that cruder systems of wealth-reckoning could be replaced by one fit for the modern world. Businesses are collectives of humans which seek to improve their lives through aggregating wealth. But why should that system account only for *their* welfare and not that of those potentially impacted by their pursuit of profit?
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Companies, like people, have effects that extend far beyond generating profit for shareholders (as determined by the rules which we proscribe for those calcualtions) and paying out money through activities like employing workers and buying goods and services from suppliers.
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images/4.png
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images/section-breaks/2.png
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