Metrology and sustainability accounting standards

(1)

L R Pendrill Stockholm 180604

Metrology and sustainability

accounting standards

L R Pendrill

Research Institutes of Sweden, Metrology, Eklandagatan 86, 41261 Göteborg (SE),

(2)

Guidance on Accounting for Sustainability Topics

• Designed to communicate performance on ‘industry-level’ sustainability topics

• Meaningful & reliable disclosure of sustainability information: o useful to investors in making decisions on investments and

corporate suffrage

(3)

“Suitable criteria” for sustainability information:

• Relevance — relevant to subject matter

• Objectivity — free from bias

• Measurability — permit reasonably consistent measurements, qualitative or quantitative

• Completeness — do not omit relevant factors for decision-making

(4)

Legal Metrology

Wpf 4. Interpret measures of mass, energy, volume, etc. as measures of sustainability

Wpf 5. Uncertainty: explicitly estimated

Wpf 3. Numeric counts and percentages: not measures

(5)

Conformity assessment and decision-making

Making decision about whether product, service or other entity conforms to specifications:

Conformity Assessment

• provides confidence for consumer that requirements on products and services are met

• often essential for reasons of public interest, public health, safety & order, protection of environment and consumer and of fair trading

(6)

Legal Metrology

76/211/EEC, 75/106/EEC

‘EU’s legislation on legal metrology: one of pillars of single market for products.

EU requirements aim to promote technological innovation, protection of health, public safety, protection of environment and fair trade.’

(7)

Legal Metrology

Legal Metrology Inspector Anil Kumar displaying cast iron weights seized from mango vendors at Kothapet fruits market in Hyderabad. Errant vendors using tampered weights

resulting in reduction of at least half a kg.Photo: Mohammed Yousuf

(8)

Conformity assessment and decision-making – in legal metrology

Measurement Instrument Directive MID 2004

EU Directive 2004/22/EC 0 1 2 3 4 5 6 1 2 3 4 5 6

Maximum permissible errors MPE and the MID

MP

E

(%

)

MI-00X Measuring Instrument

Water meters Gas meters Electricity meters Heat meters Liquid meters AWI

(9)

Optimising uncertainty – risk and economy when

making decisions

(10)

Conformity assessment and decision-making

Legal Metrology

(11)

By Jon513 - Own work, Public Domain, https://commons.wikimedia.org/w/index.php?curid=5592376

If social cost can be accurately gauged tax could equalize: marginal private cost & marginal social cost

Pigouvian tax

Arthur Pigou (1877–1959)

(12)

Conformity assessment and decision-making Legal Metrology

(13)

Wpf 5. Uncertainty needs to be explicitly estimated and presented as an expected range of variation

(14)

1,234 m



1,234 m ± 0,016 m



200 000€

_{ ?}

(15)

Environmental national annual cost:

 25%·0.05c·x·15600·5.5·106 = 10.7·x M€/year (x g/km)

 77·x M€/annum (x % vol CO)

Environmental CO exhaust gas emission costs

Environmental emission tax: 25%·0.05c per g CO1

Total number of vehicles in nation: ~ 5.5 x 106_{, average}

15600 km/year

CO emission x g/km

(or about CO/km)

1- 10g/km or 0.14% - 1.4% vol CO/km vol x % 2 . 7

(16)

Environmental CO exhaust gas emission MID 010

0 .2 0 .4 0 .6 0 .8 1 0 51 05 11 06 1 .51 06 21 06 Elo ssn p attr2_i u samp weigh 2_i1 00 . Uncertainty, sampling % Economic loss, € MPU/2 u_sampl

Finite population, 180 meters of 500

% 22 . 1 ˆ  p SL C_LSL,max = 2 M€/year

Conformity assessment and decision-making

Optimum

(17)

Environmental issues, harmful aspects of human activity on biophysical environment. As such, they relate to anthropogenic effects on natural environment,

(18)

Man as Measurement Instrument:

- Perception of product/service function,

comfort etc

- Propose improvements in product

Man as Measurement Instrument

ISBN 978-1-84872-939-1 (Hardback)

6

3

2

1 





Ordinal data http://www.123rf.com

(19)

L R Pendrill Stockholm 180604 USER TOOL TASK

Ergonomy

Task-tool interaction

Person – centred measures

”Satisfaction”

- attitudes towards

use of tool

”Effectiveness”

- users achieve

specified goals

(20)

Sustainability

)

( eniency

L



)

(Quality



”Satisfaction” - attitudes towards use of tool Harmful aspects of human activity on biophysical environment http://www.123rf.com USER TOOL TASK

(21)

)

( Ability



)

( ifficulty

D



”Effectiveness” - users achieve specified goals USER TOOL TASK

Sustainability

(22)

L R Pendrill Stockholm 180604 Rasch (1953)

Measuring People

           _success success P P 1 log ) ( bilityA  ) ( hallengeC 

(23)

Legal Metrology

Wpf 4. Interpret measures of mass, energy, volume, etc. as measures of sustainability

Wpf 5. Uncertainty: explicitly estimated

Wpf 3. Numeric counts and percentages: not measures

(24)

L R Pendrill Stockholm 180604 24 L R Pendrill Washington DC 2016 2014 2018 2015

(25)