The LIFTS Accounting Model © 

08 July 2021
This year, the Research Center released the first version of its integrated multi-capital accounting model. This methodology considers the planetary boundaries and social foundations of Kate Raworth's Donut Economy theory (2017). At this stage, the model has been experimented within three SMEs and is still being developed.

The LImits and Foundation Towards Sustainability Accounting Model© was designed to help companies to adopt a sustainable socio-environmental system and ensure the sustainability of their activities. To do this, the model allows companies to monitor their integrated performance for two new capitals: social and environmental.   

This model attempts to bridge financial accounting with both environmental and socio-economic issues. By embedding the planetary limits and social foundations of the Donut Economy (click to learn more), and thanks to a system of recording activities in physical flows, in parallel with audited financial accounting, it determines multi-capital performance. Then, the budget allocated to social and environmental ceilings is compared to the actual activities of the company for a given period. Results show the overall performance of the company. 

A first test tool of the model has been implemented in Access. Later, it will be developed in software with the help of an IT team. Other components of the model in version 2.0, as well as an extensive toolkit on how to use it for business purposes, will be issued later on. The model will be also experimented with two large multinational groups.  

The first version of this multi-capital accounting model was presented at the annual conference of the Research Center on June 8. 

To see the session in replay follow this link:

Watch in replay

And you can have a look at the presentation right here:

See the presentation

  A second presentation of the LIFTS Accounting Model© is planned (in French), on September 28, with an exclusive webinar organized by the team! Follow this link if you want to sign up for the webinar:

Sign up for the webinar

The LIFTS Accounting Model© has been tested in three SMEs: YEVER, NEPSEN and BATHÔ. To see the details of the experiments and their results click on this link:

Case studies

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