EIRIS FOUNDATION {A Company Limited by Guarantee) REPORT AND ACCOUNTS FOR THE YEAR ENDED 31st MARCH 2024 Re istered Chari Commission Relerence Number- 1020068 Re istered Com an Number.. 02460330
EIRIS FOUNDATION (A Company Limited by Guarantee) REPORT AND ACCOUNTS 31st March 2024 Page Legal and Administrative Information Pages Report of the Council of Management Pages 9-11 Independent Auditors, Report Page 12 Consolidated Statement of Financial Activities lincluding consolidated Income and Expenditure Account) Page 13 Consolidated Balance Sheet Page 14 Consolidated Statement of cash flow5 Pages 15-28 Notes to the Accounts
EIRIS FOUNDATION IA Company Limited by Guarantee) LEGAL AND ADMINISTRATIVE INFORMATION REGISTERED COMPANY NUMBER: 02460330 CHARITY REGISTRATION NUMBER: 1020068 COUNCIL OF MANAGEMENT: Nina Roth (Chairl Aine Clarke Ivana Gazibara Aaron Hay Richard Howitt Rebecca Kong Camilla Parke Vaidehee Sachdev Maryann Selfe Frances Way CHIEF EXECUTIVE OFFICER: Peter Webster COMPANY SECRETARY: Lisa Stonestreet REGISTERED AND PRINCIPAL OFFICE: The Foundry 17-19 Oval Way London SEII 5RR AUDITORS.. Cocke, Vellacott & Hill Chartered Accountants Unit 15 City Business Centre Lower Road LONDON SE16 2XB BANKERS.. Unity Trust Bank 9 Brindley Place 4 Ooze115 Square BIRMINGHAM BI 2HB SOLICITORS.. Bates, Wells & Braithwaite 10 Queen St Place LONDON EC4R IBE IMPAcf INVESTING ADVISERS: Sonnet Advisory and Impact 45 Flitwick Road Ampthill Bedfordshire MK45 2NS Page I
EIRIS FOUNDATION {A Company Limited by Guarantee) REPORT OF THE COUNCIL OF MANAGEMENT For the year ended 31 March 2024 The Council of Management presents its annual report together with the consolidated financial statement of the charitable company and its subsidiaries for the year ended 31st March 2024. The accounts comply with the Charities Act 2011, the Companies Act 2006, the requirements of the charity's governing document and Accounting and Reporting by Charities- Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffective l January 20191. This report combines the Trustees, annual report for the purposes of the Charities Act 2011 and the directors, report for the purposes of the Companies Act 2006. The EIRIS Foundation is a company limited by guarantee without share capital. Each member's liability is limited to £1. The company is a registered charity, and its affairs are governed by its memorandurn and articles of association. OBJECTIVES AND ACTIVITIES Objects and mission The EIRIS Foundation's objects are to undertake and publish research into the social and ethical aspects of businesses in the UK and overseas and how those may be relevant to investment policies and to assist other charities by providing inforrnation and advice to help them choose investments which do not conflict with their aims or otherwise hamper their work. Following a review of our goals and mission we have concluded that the best way to describe our current work and the role we want to play in future is that the EIRIS Foundation is a research. advice and advocacy charity that pioneers the next steps for sustainable finance. Our vision is a financial system that works for people and planet. We have over 40 years, experience of providing free and objective information on sustainable finance and corporate activity to other charities and the public. Our strengths. The EIRIS Foundation is a founder of the ethical and responsible investment movement. From our historic involvement in the creation of the first retail ethical fund in the UK to our founding role with the Corporate Human Right's Benchmark ICHRBI. our work illustrate5 our core strengths: A pioneering spirit. We consistently bridge the gaps in what is needed. including on difficult, underserved topics. Independence. As a charity. we can avoid conflicts of interest. Cataly5ing coalitions. That independence, plus a wide network of long-standing connections, mean we can bring together broad collaborations when required. Supporting innovatlons. We can both deploy innovations ourselves and recognize and support great innovations from others. Quality of method5 and outputs. Our research findings are known for their independence and high standards. How we generate impact. We look for activities which use our strengths to have one or more of these effects.. Moving the moneyto more sustainable options and to finance sustainable solutions. Embeddingvalues in the investment chaln, from the saver/penslon scheme member all the waytothe portfolio manager. Amplifying the sustainable investor voice on company plans; leadership; and business culture. We have the skills and experience to find solutions that bridge the gaps in today's finance system. We aim to have impact in several connected domains. Within each we build coalitions. and both generate and support innovations. The impact in each 15 money moved, values embedded in investment decisions, and more pressure from sustainable voice5. The cumulative effect moves us towards a finance system that works for people and planet. Page 2
EIRIS FOUNDATION (A Company Limlted by Guarantee) REPORT OF THE COUNCIL OF MANAGEMENT Icontinuedl OBJECTIVES AND ACTIVITIES (continued) Code of Condurt and other policies To underpin these objects. the EIRIS Foundation has adopted a Code of Conduct (available on our websitel which sets out our values as an organisation and the standards of behaviour we hold ourselves and those we work with accountable to as we deliver our mission. The Code summarises a number of commitments to and expectations of our employees which are developed further in our Staff Handbook. It also underpins relationships with partners, funders, suppliers and other stakeholders. In addition to the policies and approach set out in the Code of Conduct lal The trustees are mindful of the Charity Commission's guidance on public benefit including the guidance 'public benefit- running a charity IPB2) Ibl The EIRIS Foundation is not qualified or authorised to give financial advice. From time to time, we will comment on or research the more general aspects of the relationship between financial performance, business success and responsible investment or corporate responsibility but we always ernphasise that this should not be taken as financial advice. {c) We will take appropriate financial advice on the investrnent of our reserves. Grant making pollcv The Council of Management has reviewed our grant making policy in the light of our new strategy to cover any cases where we decide to fund third parties to carry out our work or to share funding for research. All such uses of fund5 will be in accordance with the objectives of the charitable company. STRUCTURE, GOVERNANCE AND MANAGEMENT The EIRIS Foundation is a company limited by guarantee without share capital. Each memberfs liability is limited to £1. The company is a registered charity, and its affairs are governed by its memorandum and article5 of association. The governing body of the EIRIS Foundation is the Council of Management, which now generally meets four times a year. It receives reports from the CEO. The Council of Management and the chief executive are the key rnanagement personnel of the charity in charge of directing and controlling the charity and the running and operation of the charity on a day to day basis. The Council Members who fulfil the roles of trustees of the charity and directors of the company were as followed during the reporting period.. Nina Roth Ichairl David Bent-Hazelwood Aine Clarke Ivana Gazibara Aaron Hay Richard Howitt Rebecca Kong Camilla Parke Vaidehee Sachdev Frances Way Since the year-end, David Bent-Hazlewood has retired from the Council following the October meeting having previously stepped down from the role of Chair after leading the Council for a number of years. David has brought his wide range of skills and experience of strategy development and 5UStainable business to our work. first as a Council Member and then as Chair. He played a vital role as our representative on the Vigeo Eiri5 board in the period between the rnerger of our former subsidiary with Vigeo and the sale of Vigeo Eiris to Moody's a5 the first Step on the way to the creation of Moody's ESG. We are grateful to David for his insights and wisdom and wish him all the best in his future endeavours. lappointed 24 January 20241 lappointed 24 January 20241 lappointed 24 January 20241 Page 3
EIRIS FOUNDATION IA Company Limited by Guarantee) REPORT OF THE COUNCIL OF MANAGEMENT (continued) STRUCTURE, GOVERNANCE AND MANAGEMENT (continued) New Council Members are appointed by the existing Council of Management from time to time and our Council Review committee deals with trustee recruitment. During the year we have been delighted to welcome Aine Clarke, Ivana Gazibara. and Vaidehee Sachdev as new Council Members, who will further enhance the Council's experience in the fields of human rights, sustainable finance and innovation in capital markets. After the year-end we were also delighted to welcome back Maryann Selfe who brings her experience as an investment advisor and a particular interest in impact investing. During the reporting period, there were Council sub-committees and working groups dealing with Finances, Staffing, Council Review, Investment Policy and Fundraising Support. Ad hoc groups of Council Members are formed when needed by the full Council of Management to decide on particular issues or to approve particular grants or projects. There is also a process involving all Council Members for the approval of decisions between meetings. Related parties As explained in note 12, the company has two US subsidiaries, EIRIS Conflict Risk Network and EIRIS USA. See note 20 for more details. Risk management The Council of Management has reviewed the risks facing the charity and adopted a Risk Management Policy with a specific plan to manage the identified risks. The Risks Register will be reviewed formally at least once a year by the Council of Management and quarterly by the staff team. The main risks identified relate to managing the longer term transition to a portfolio of grant and fee funded work and maintaining and developing our reputation. Specific projects and each element of our strategy have their own delivery risks that are also tracked and managed. Policies More details of our strategies and approach can be found on the EIRIS Foundation website at www.eirisfoundation.or Other key policie5 will be made available there in due course. ACHIEVEMENTS, PERFORMANCE AND FUTURE PLANS The Work of the Foundation The EIRIS Foundation is a research. advice and advocacy charity that seeks to pioneer the next steps for responsible investment and sustainable finance. Our vision is a financial system that works for people and planet. Although we adopt a flexible approach to our research and advocacy, within the scope of responsible investment and business our work has focussed on the following areas.. Advancing the social dimension5 of sustainable finance Corporate Human Rights Benchmark In 2023, for the fifth time since its conception in 2017, the EIRIS Foundation contributed to the Corporate Human Rights Benchmark {CHRBI. The research covered 110 of the biggest companies from the Apparel and Extractive sectors which completed the assessment of all 5 CHRB sectors under a revised methodology. We have been deeply committed to CHRB Since the beginning and have been following the progress achieved over the year5. 2023's launch of the CHRB result5 was combined with that of WBA'S gender benchmark to highlight the intersectionality of gender issues and human rights. particularly in the apparel sector. Page 4
EIRIS FOUNDATION {A Company Limited by Guarantee) REPORT OF THE COUNCIL OF MANAGEMENT (continued) ACHIEVEMENTS, PERFORMANCE AND FUTURE PLANS Icontinued} Renewable Energy and Human Rights Benchmark The EIRIS Foundation were once again pleased to partner with the Business & Human Rights Resource Centre to produce the 2023 Renewable Energy and Human Rights Benchmark. We conducted the research in collaboration with international research partners and contributed two "reflections" to the key findings report, one on Human Rights Due Diligence and one on Stakeholder Participation. The Benchmark underscores the need for urgent government regulation and incentive5, alongside investor engagement, to level the playing field and ensure the renewable energy sector secures public trust and avoids harms to communities and workers. Business In Conflict Areas and Human Rights Due Diligence Our conflict initiative, the EIRIS Conflitt Risk Network ICRNI, seeks to empower institutional investors, financial service providers, and other engaged stakeholders by providing them with the tools needed not only to detect exposure to areas affected by conflict but also to work with companies to reduce risks relating to conflict through responsible corporate practices that support peace and stability. In 2023 EIRIS CRN developed the 'lnvestor Commitments on Conflict, The aim of the commitments IS to provide a level of consistency in approach when investors deal with their holdings being exposed to conflict, as well as to signal to the public the importance of issues regarding and surrounding conflict to investors. The commitments were drafted with the help of various experts from the field of business and human rights, as well as representatives from different investor groups. EIRIS CRN also held in-person and online events for investors helping them to understand how they should respond to conflict-affected investments. Social Lobbymap We are pleased to have made great progress in 2023 on our Social lobby map work, a three year project to investigate corporate lobbying on social issues. We are exploring which companies, and their trade associations are in favour of legislation proposing mandatory Human Rights Due Diligence lor improvements in Core Labour Standardsl and which oppose such proposals. We hope thi5 project will open up a new conversation about the relationship between corporate responsibility and public affairs work. We held an extensive consultation phase in developing the draft methodology for Social Lobbymap and work continues to test and apply this current example5 of corporate lobbying on Social issues. Raclal Equity Scorecard In early 2024 we publicly presented our Racial Equity Scorecard project. The Racial Equity Scorecard enables asset owner5 to mobilise investment capital toward5 racial equity. It provides a framework to help charities, asset owners and managers collect data and insights on companies they invest in. It is a tool for investors to assess companies. asset managers and portfolios based on their strategies and actions taken to create wealth and inclusion for underrepresented communities. This Scorecard is unique in its mixed methods approach and is the first Racial Equity Scorecard in the UK public markets. Page 5
EIRIS FOUNDATION IA Company Limited by Guarantee) REPORT OF THE COUNCIL OF MANAGEMENT {continuedl ACHIEVEMENTS. PERFORMANCE AND FUTURE PLANS Icontinuedl Helping Charities adopt and shape responsible investment practices Our work with charities encourages them not only to align their own investment5 Wlth their missions and values but also to use their influence and expertise to shape sustainable finance and responsible investment. This is one of our charitable objectives 50 is a core facet of our own mission. We help charities by giving them practical tools and more tailored assistance (through events and I'.1 conversations) that helps them with various steps including formulating a responsible investment policy, implementing it and using their voice to call for improvements and/or best practices. In October 2023 we held, for the 2nd year, a very successful charity responsible investment event in partnership with Friends Provident Foundation and Access - The Foundation for Social Investment. The event 'Utilising whole endowments for mission, peer to peer learn and share, was an opportunity for charity and foundation trustees and staff to come together to discuss all aspects of responsible investment with a particular focus on practical learnings. We also held a series of smaller, online workshops for charity investors in 2023 on topics such as revisiting your responsible investment policy, impact investment and ethical pensions and savings. Our website. www.charitysri.org.uk, which wa5 relaunched in early 2023, continue5 to support and assist charity investors with regards to responsible investment. It is an objective source of information that aims to help charities and foundations of all types and sizes invest sustainably and responsibly, using the power of their own money and influence to help create a more sustainable financial system. Nurturing the Sustainable Finance Landscape and Considering how sustainable finance can address the Big Challenge5 We continue to work on a range of i55ues that consider the sustainable finance landscape generally and the role of sustainable finance in addressing issues such as the climate emergency and climate justice. rising inequality and need for an integrated approach to social and environmental issues. We have responded to numerous consultations. been part of investor roundtables on these issues and fed into response5 regarding sustainable labels and standards. Another aspect of this work included an investigation into Green Mortgages and the current state of the market and support system for these products. This work is ongoing as we continue to assess what future support for this area will be. Partnerships, networking and other public benefit Our staff team has continued to contribute in various ways acr055 all of our strands of work with our ultimate vision in mind of supporting the transition to a more sustainable and equitable financial system. We are proud of the research. resources, event5 and roundtables we have produced and held and a150 the number of events and initiatives that we have contributed to. All of the activities described above contribute to the charity's public benefit aims. The ongoing operation of our various websites and the production and sharing of our variou5 research projects continues to provide charities. individuals. investor5 and other stakeholder organisations with information and resource5 to make their financial decisions more sustainable and to encourage the progress of human riEhts. environmental improvement and a number of other specific areas of charitable advancernent. Our core website. www.eiri5foundation.org, includes latest news stories about our work and more general blog posts on a variety of topics continues to help others understand the work we do and point them in the direction of further useful information and resource5 Iproduced by both us and other organisationsl. Future Plans The EIRIS Foundation continues to balance the need for our research and expertise, our charitable mission and objectives and our requirement to fund our various work strearns in what is a challenging funding environment. We are a flexible organisation that 15 always happy to collaborate and ensure our work meets a genuine need that matches the urgent action required by responsible investment and business to find solutions to some of the major challenges the world faces at the moment. Page 6
EIRIS FOUNDATION IA Company Limited by Guarantee) REPORT OF THE COUNCIL OF MANAGEMENT (continued) FINANCIAL REVIEW The charitable company and its subsidiaries had total income of £701,23912023 £402,570) mostly from project work. Expenditure in the year totalled £887,32912023 - £728,208) resulting in net expenditure for the year before gains / {lossesl on investments of £186,09012023 net expenditure £325,638). There was a net gain on revaluation of the investments in Snowball and Castlefield during the year of £10,07212023- net loss of £25,002). The resultant net expenditure for the year was £176,01812023- net expenditure of £350,640) which was taken from reserves brought forward. Therewere restricted funds carried forward at the year-end of £216,60112023 - £Nill. The total funds carried forward at the year-end were £1.314,95612023 - £1,490,974). More details are given in the Statement of Financial Activities on page 12. All the assets of the charity are held for the purposes described under principal activities, apart from any restricted funds which are held for specific purposes. Reserves policv The Council of Management decided in 2021 to invest around £lm of the current reserves in the medium term, while spending the other funds gained from the disposal of our interest in EIRIS and then our interest in Vigeo Eiris over a 34 year period on the work of the Foundation and building up a portfolio of grant funded work. Looking forward, the Council has set a minimum necessary reserves target based on 6 months salaries and the redundancy costs of closing programmes. This reserves policy will be reviewed annually as part of the budgeting process. Investment Policy To implement our reserves policy, we have divided our assets into two parts: for the money that we are spending down over 3 to 4 years the policy is to invest in a cash and similar portfolio in a range of deposit and similar instruments with institutions that have a clear policy in relation to ethical or socially responsible investment or who are mutual building societies or who demonstrate particular leadership in our field. This fund has now largely been spent down. The other part of our present assets we are considering as our growth fund, and the Council approved a detailed responsible investment policy for this fund which is available on our website. In 2021, we undertook a public request for proposals and went on to appoint two fund managers. We undertook this exercise publicly to provide a case study for other charities looking at their investments and we plan to develop some of the learnings from this process further in future. COUNCIL MEMBERS, RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS The Council Members Iwho are the directors of EIRIS Foundation for the purposes of company lawl are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and of the income and expenditure of the company for that period. In preparing those financial statements, the director5 are required to- select suitable accounting policies and apply thern consistently- observe the methods and principles in the Charities SORP.. make judgements and estimates that are reasonable and prudent- state whether applicable UK accounting standards have been followed. subject to any material departures disclosed and explained in the financial statements.. prepare the financial statement5 on the going concern basis unle55 it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularitie5. The directors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Page 7
EIRIS FOUNDATION {A Company Limited by Guarantee} REPORT OF THE COUNCIL OF MANAGEMENT Icontlnuedl AUDIT ENQUIRIES In accordance with company law, as the company's directors, we certify that: SO far as we are aware, there is no relevant audit information of which the cornpany's auditors are unaware- and As the directors of the company, we have taken all the steps that we ought to have taken in order to make ourselves aware of any relevant audit information and to establish that the charity's auditors are aware of that information. INDEPENDENT AUDITORS The auditors, Messrs. Cocke, Vellacott & Hill have indicated their willingness to continue in office and will be proposed for re-appointment in accordance with the Companies Act. Approved by the Council of Management on 29 January 2025 and signed on their behalf by.. NINA ROTH Chair of the Council of Management Page 8
EIRIS FOUNDATION IA Company Limited by Guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS AND COUNCIL OF MANAGEMENT OF EIRIS FOUNDATION Opinion We have audited the financial statements of Eiris Foundation Ithe 'parent company'l and its subsidiaries (the 'group'l for the year ended 31 March 2024 which comprise the consolidated statement of financial activities (including consolidated income and expenditure account). the consolidated balance sheet, the consolidated statement of cash flows and notes to the financial statements including a summary of significant accounting policies. The financial framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland" In our opinion the financial statements.. give a true and fair view of the State of the group's and of the parent companvs affairs as at 31 March 2024, and of the group's incoming resources and application of resources for the year then ended- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice- and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII. Our responsibilities under those standards are further described in the Auditorfs Respon5ibilitie5 for the Audit of the Financial Statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC. s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirernents. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the director5, Use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to event5 or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve month5 from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant settions of this report. other information The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The Council of Management is responsible for the other information. Our opinion on the financial statements does not cover the other information and. except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements. or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements. we are required to determine whether there is a material mi55tatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of thi5 Other information. we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Council of Management's report. which include5 the directors, report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements: and the directors, report included within the Council of Management'5 report ha5 been prepared in accordance with applicable legal requirements. Page 9
EIRIS FOUNDATION IA Company Limited by Guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS AND TRUSTEES OF EIRIS FOUNDATION Icontinuedl Other matters on which we are required to report by exception In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material rnisstatements in the directors, report included within the trustees, report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion.. adequate and proper accounting records have not been kept. or return5 adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns; or certain disclosures of Council Members, remuneration specified by law are not made,. or we have not received all the information and explanations we require for our audit; or the Council of Management was not entitled to prepare the financial statements in accordance with the small cornpanies, regime and take advantage of the small companies, exemptions in preparing the trustees, report and from the requirement to prepare a strategic report. Responsibilities of directors As explained more fully in the Council Members, responsibilities statement set out on page 8 the Council of Management Iwho are the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the companws ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. Audltorfs responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whether due to fraud or error. and to issue an auditorfs report that includes our opinion. Reasonable assurance 15 a hiEh level of assurance but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstaternent when it exists. Misstatements can arise from fraud or error and are considered material if. individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial Statements. Irregularities, including fraud. are instances of non-cornpliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material mis5tatement5 in respect of irregularities, including fraud. The extent to which our procedure5 are capable of detecting irregularities, including fraud is detailed below: We have obtained an understanding of the company's policies and procedures through discussions with senior management and the treasurer. We also drew on our existing understanding of the work that the company does and the sector that it operate5 in. We understand that the company complies with its responsibilities through close involvement of the CEO in the day to day running of the business and regular liaison between him and the directors. Were there any litigation or claim5 they would come to the attention of the CEO directly. The company also holds regular board meetings at which all such matters are discussed. Finance papers are circulated to all directors and senior management in advance of these meetings along with a detailed report by the CEO. We have reviewed these reports, and minutes of all meetings, and no irregularities were identified. In the context of the audit. we considered those laws and regulations which determine the form and content of the financial statements. which are central to the company's ability to conduct busines5 and where failure to comply could result in material penalties. We have considered the disclosure requirements of the Companies Act 2006 and the Charities SORP IFRS 1021 leffective I January 20191 as part of our finalisation processes. Page 10
EIRIS FOUNDATION IA Company Limited by Guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS AND TRUSTEES OF EIRIS FOUNDATION Icontinuedl Auditorfs responsibilities for the audlt of the financial statements Icontinuedl We discussed the possibility of fraud with senior management and whether they had any knowledge of any actual, alleged or suspected fraud. We designed our audit tests to consider controls and tested a sample of financial transactions. We considered the timing of recognition of income from members, and of grant income. In common with all audits under ISA'S IUKI we also performed specific procedures to respond to the risk of management override. We assessed the company's control environment is adequateforthesize and operating model ofsuch a companv. Because of the inherent limitations of an audit, there is a risk that we will not detect 311 irregularities, including those leading to a material misstatement in the financial statement5 or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our re5pon5ibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the company's members. as a body, in accordance with Chapter 3 of Part 16 ofthe Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to State to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. DAVID WARREN BA FCA Isehior statutory auditor) For and on behalf of COCKE, VELLAc0 & HILL- Statutory Auditor Chartered Accountants Unit 15 City Bu5ine55 Centre Lower Road LONDON SE16 2XB .2 o January 2025 Page 11
EIRIS FOUNDATION (A Company Limited by Guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES Ilncluding Consolidated Income and Expenditure Account) For the year ended 31st March 2024 Unrestrirted Restricted 2024 2023 Notes Income Donations and legacies Incomefrom choritable activitie5 Contractual research work 31al 384,741 384,741 60,250 31bl 233,616 233,616 300,960 Investmentincome Bank and building society interest receivable Other income 14,288 68,594 14,288 68,594 10,602 30, 758 Total income 316,498 384,741 701,239 402,570 Expenditure Costs of raisingfunds Costs of raising donations and grants Expenditure on charitable octivitie5 Grants payable Costs of activities - research, publication5, information, provision of seminars {110,7121 1110,7121 (67.186) 133,3931 133,393) (75,009) 1575,0841 {168.1401 {743,224) (586,013) Total expenditure 1719,1891 {168,140} 1887,3291 (728,208) Net income/ lexpenditurel before gains and10sses on investments 1402,691} 216,601 1186,0901 (325,638) Net gains1 {lossesl on investments Gain / (Loss on revaluation of investments Gain on sale of investments 12 12 10,072 10,072 (25,002) Net income/ lexpenditurel for the year 1392.6191 216,601 (176,018) {350.640J Net movements in funds and net income/ (expenditure) for the year (392,6191 216,601 {176,0181 (350.640) Reconciliation of Funds Total funds brought forward 17 1,490,974 1,490,974 1,841,614 Total funds carried forward 17 1,098,355 216,601 1,314,956 1.490,974 All the operations undertaken by the company during the current and preceding year are continuing operations. The company has no recogni5ed gains and losses other than those included above and therefore no separate statement of total recognised gains and losses has been presented. There were no restricted funds in the previous year. The notes on pages 15 to 28fvrm part of these accounts. Page 12
EIRIS FOUNDATION IA Company Limited by Guarantee) CONSOLIDATED BALANCE SHEET As at 31" March 2024 Group 2024 Group 2023 Charity 2024 Charity 2023 Notes Fixed assets Intangible assets Tangible assets Investment5 io li 12 539 5,851 965,230 4,650 975,302 3,106 1,037,533 4,355 1,027,461 Total fixed assets 979,952 971,620 1,040,639 1.031.816 Current assets Debtors Cash at bank and in hand 13 54,792 387,889 133,778 548,288 37,740 368,194 93,593 529,991 Total current assets 442,681 682,066 405,934 623,584 Liabillties Creditors.. Amounts falling due within one year 14 {93,517) 1152,5841 {41,8041 (93,730) Net current assets (liabilities) 349,164 529,482 364,130 529,854 Total assets le55 current liabilities Provision for other liabilitie5 1,329.116 {14,160) 1,501,102 (10,128) 1,404,769 {14,160) 1.561,670 (10,128J 15 Net assets 1,314,956 1,490,974 1,390,609 1,551.542 The funds of the charitv Restricted income funds Unrestricted income funds 17 17 216,601 1,098,355 216,601 1,174.008 1,490.974 1,551,542 Total charity funds 17 1,314,956 1,490,974 1,390,609 1.551,542 The directors {trusteesl have prepared group accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and those prepared for circulation to members of the company. The Financial Statements were approved by the Council of Management 29 January 2025 and signed on their behalf by: NINA ROTH - Chair of the Council of Management Registered Company Number: 02460330 The notes on poges 15 to 28form part of these accounts. Page 13
EIRIS FOUNDATION (A Company Limited by Guarantee} CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31" March 2024 Notes Group 2024 Group 2023 Charity 2024 Chority 2023 Cash flows from operating activities Net income lexpenditurel for the year Adjustmentsfor." Interest received Arnortisation of intangible assets io Depreciation of and loss on tangible assets li Net Igainsl / losses on investments 12 (Decrease) Increase in provision for other liabilities 15 Ilncreasel decrease in debtors 13 (Decrease) increase in creditors 14 {176,018) (350,640) 1160,933) (342.567) (14,288) 539 3,489 110,072) 4,032 78,986 {59,0671 (10.602) 11,584 3,092 25,002 5,021 (8.390) 31,119 {14,288) (10,602) 2,649 {10,0721 4,032 55,853 151,9261 2,459 25,002 5,021 19,997 8,398 Net cash loutflowl inflow from operating artivitie5 (172,3991 (293,814) 1174.685) (292,292) Cash flow from investing activities Purchases of intangible assets Purchase of fixed asset equipment Purchases of investments Interest received io li 12 {2,288) 16,6541 1500.0001 10,602 11,4001 16.532) 1500,000) 10,602 14,288 14,288 Net cash provided by investing activities 12,000 1496,0521 12,888 (495,930) Net (decrease) increase in cash and cash equivalents 1160,399) 1788,8661 1161,797) 1788,2221 Cash and cash equivalents at the beginning of the period 548,288 1,338,154 529.991 1,318,213 Cash and cash equivalents at end of period 387,889 548.288 368,194 529,991 The note5 on pages 15 to 28form port of these accounts. Page 14
EIRIS FOUNDATION IA Company Limited by Guarantee) NOTES TO THE ACCOUNTS For the period to 31" March 2024 GENERAL INFORMATION AND LEGAL STATUS EIRIS Foundation is a registered charity and a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is lirnited to £1 per member of the charity. It is incorporated and domiciled in England and its registered office is The Foundry, 17 -19 Oval Way. London SEII 5RR. The charitable compan¢s principal activity continues to be to undertake and publish research into the social and ethical aspects of businesses in the UK and overseas and how those may be relevant to investment policies and, further. to assist other charities by providing information and advice to help them choose investments which do not conflict with their aims or otherwise hamper their work. The charitable company's main US subsidiary provides investors with the research, insight5, and engagement support they need to identify and influence companies that impact or operate in conflict-affected areas in order to reduce conflict risks to both people and portfolios. EIRIS Conflict Risk Network ICRNI is now dormant and the EIRIS CRN project is run by Ethical Investment Research Services IEIRIS) USA Limited ACCOUNTING POLICIES The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows: lal Basis of preparation and assessment of golng concern The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note{sl to the accounts. The financial statements have been prepared in accordance with Accounting and Reporting by Charities- Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 {effective l January 20191 Icharities SORP IFRS 10211, the Financial Reporting Standard applicable in the UK and Ireland IFRS 1021 and the Companies Act 2006. The accounts consolidate the results of the charitable company and its subsidiaries, Ethical Investment Research Service IEIRISI USA and EIRIS Conflict Risk Network ICRNI on a line-by-line basis. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. A separate Statement of Financial Activities and Income and Expenditure Account for the charitable company have not been presented because the charitable company has taken advantage of the exemption afforded by section 408 of the Companies Act 2006. The directors have approved the omission of the company's individual income and expenditure account in accordance with section 414{1} from the company's annual accounts. EIRIS Foundation meets the definition of a public benefit entity under FRS 102. The Council of Managernent considers, having reviewed the charitable company's forecasts and projections, that there are no material uncertainties about its ability to continue as a going concern for the foreseeable future and have therefore adopted the going concern basis in preparing these financial statements. Ibl Income from trading artivities Income represents contract5 for the provision of research and advice on responsible investment and is shown net of value added tax. Income invoiced in advance of the period is deferred to the period it relates to. (see note 151. Icl Donations and slmilar income Donations and grants receivable are accounted for in the period in which the charity becomes entitled to them and they can be measured with reasonable certainty. Income is deferred if the donor specifies conditions that the income is to be spent in a future period. Donations and grants are used in accordance with the wishes of the grantors. Any donated services are included in the statement of financial activities at the estimated value to the charity of the service or facility received, i.e., at the price the company estirnate5 it would pay in the open market for a service of equivalent utility to the charity. An equivalent amount to that recognised as income is included as expenditure under the appropriate heading in the statement of financial activities. Page 15
EIRIS FOUNDATION IA Company Limited by Guarantee) NOTES TO THE ACCOUNTS Icontinuedl For the year ended 31" March 2024 ACCOUNTING POLICIES (continued} Id) Interest recelvable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity,. this is normally upon notification of the interest paid or payable by the bank or building societv. lel Fund accounting Unrestricted income funds comprise those funds which the Council of Management is free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include any designated funds where the Council of Management, at their discretion, have created a fund for a specific purpose. Restricted funds are funds which are used in accordance with specific restrictions imposed by the donor. {fl Expenditure recognition Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Grants payable are made to third parties in the furtherance of the charitable objectives of the charity. Grants are accounted for when the Council of Management has agreed to pay a grant without condition and the recipient has a reasonable expectation that they will receive the grant. Provisions for grants are made when the intention to make the grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of the grant. All expenditure is accounted for on an accruals basis. Expenditure is classified under the following activity headings.. Costs of generating funds comprise the costs associated with attracting voluntary income and investment management costs together with an apportionment of support costs. Charitable activities expenditure comprises those costs including grant making incurred by the charity in the delivery of it5 activities and services. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Other expenditure represents those items not falling into any other heading. Igl Allocation of support and governance costs Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include office costs, finance, payroll and governance costs. Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements. These include the audit fees, legal fees and costs linked to the strategic management of the charity. Support and governance costs are allocated between cost of raising funds and expenditure on charitable activities on a reasonable, justifiable and consistent basis, e.g., taking into account the balance of other spending and staff time applicable to each activity. The allocation of support and governance costs is analysed in note 6. Ihl Foreign currency The financial statements of the charitable company are presented in Sterling 1£) which is its functional currency. Transactions in foreign currencies are translated into sterling at the exchange rate in operation on the date of the transaction. Assets and liabilities denominated in foreign currencies are translated into Sterling at the closing rates. All revaluation differences and foreign exchange differences are taken to the statement of financial activitie5. Page 16
EIRIS FOUNDATION IA Company Limited by Guarantee) NOTES TO THE ACCOUNTS Icontinuedl For the year ended 31" March 2024 ACCOUNTING POLICIES Icontinuedl lil Business combinations and goodwill Acquisition of subsidiaries are accounted for using the purchase method. The cost of the business combination is the fair value of the consideration given, liabilities incurred or assumed plus the costs directly attributable to the business combination. Any excess of the cost of the business combination over the group's interest in the net fair value of the identifiable assets and liabilities acquired is recognised as goodwill. Goodwill is amortised over its estimated useful life, which the Council of Management have deemed to be 3 years, using the straight line basis. Goodwill is assessed for impairment when there are indicators of impairment, and any impairment is charged to the income and expenditure account. ('il Tangible Flxed Assets Tangible fixed assets are measured at cost less accumulated depreciation and accumulated impairment losses. Depreciation has been provided on the tangible fixed assets at an annual rate of 25% on the straight-line method, except on computer equipment on which it is provided at an annual rate of 33% on the straight-line method so as to write off the assets over their estimated useful life. Ikl Fixed asset investments Other Investments- Snowboll and Ca5tlefieldfunds- Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing market price quoted by the fund provider. The statement of financial activitie5 includes the net gains and losses arising on revaluation and disposals throughout the year. Investment in subsidiaries- Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements. 111 Impairment of assets At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any ffected asset is estimated and compared with its carrying amount. If the recoverable amount 15 lower, the carrying amount is reduced to its recoverable amount and an impairment1055 is recognised in the profit and loss account. If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount but not in excess of the amount that would have been determined had no impairment loss been recognised in prior years. A reversal of an impairment loss is recognised in the profit and loss account. Im) Cash at bank and in hand Cash at bank and in hand includes cash and short term highly liquid investments held at call with banks and building societies. Inl Debtors Trade and other debtors are recognised at the settlement amount due after any trade discounts. Prepayments are valued at the amount prepaid net of any trade discounts due. lol Creditors and provisions Creditors and provisions are recognised where the charity has a present obligation resulting from 3 past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliable. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discount5 due. (pl Pensions The company contributes to pension arrangements on behalf of its employees. Contributions payable for the year are charged in the profit and loss account when they are due. The amount of contributions recogni5ed in the statement of financial activities as an expense is 35 shown in note 8. Page 17
EIRIS FOUNDATION IA Company Limited by Guarantee) NOTES TO THE ACCOUNTS Icontinuedl For the year ended 31" March 2024 lal DONATIONS AND LEGACIES Total 2024 Totol 2023 Unrestricted Restricted Grants Barrow Cadbury Trust- Social Investment in Charity Pooled Funds Laudes Foundation -social Lobbymap Friends Provident Foundation- utilising Whole Endowments for Mission The Opens Society Policy Centre IOSPCI- Social Lobbymap 10,000 247,723 5,932 121,086 10,000 247,723 5,932 121,086 60,250 Total 384,741 384,741 60,250 The Laudes Foundation- Social Lobbymap grant in the previous year was a restricted fund. See note 17 on income funds for more details. 3. Ibl CONTRACTUAL RESEARCH WORK Total 2024 Totol 2023 Unrestricted Restricted CHRB Human Rights Project Conflict Risk Network BHHRC Renewable Energy & Human Rights Benchmark Racial Equity Scorecard 115,586 63,655 30.000 24,375 115,586 63,655 30,000 24,375 222,861 78,099 Total 233,616 233,616 300,960 COSTS OF RAISING FUNDS 2024 2023 Costs of raising grants and donations Staff costs15ee note 81 Governance costs Isee note 61 Support costs (see note 61 63,114 3,675 43,923 27,472 3,504 36,210 Total 110,712 67,186 All of the costs of raising funds were from unrestricted funds in both years. Page 18
EIRIS FOUNDATION IA Company Limited by Guarantee) NOTES TO THE ACCOUNTS (contlnuedl For the year ended 315t March 2024 EXPENDITURE ON CHARITABLE ACTIVITIES Grants payable Research projects Total 2023 Grants lsee note below) Research projects and seminars Staff costs (see note 81 Website and IT costs Subscriptions to publications and services Business travel Governance costs Isee note 61 Support costs (see note 61 33,393 25,370 389,771 10,642 9,903 6,770 53,420 247,348 33,393 25,370 389,771 10,642 9,903 6,770 53,420 247,348 75,009 32,028 283,606 23,876 9,389 10.173 63,641 163,300 Total 776,617 776,617 661,022 Expenditure on charitable activities was £776,617 (2023-£661,022Jof which £168,140 (2023-£60,250) was expenditure from restricted funds and £608,477 (2023- £600,772) was expenditure from unrestricted funds. Grants paid in the current and previous year were to an institution, Ecodes for research assistance with CHRB and the BHHRC Renewable Energy & Human Rights Benchmark. ANALYSIS OF SUPPORT AND GOVERNANCE COSTS Other Governance support related 2024 Total 2023 Total Staff costs Isee note 81 Legal and professional Audit fees Committee expenses Meeting room and office rent and Service charges Website and IT costs Insurance Bank charges Membership5 Training and other staff expenses Subscription5 to publication5 and services Sundry expenses Amortisation of goodwill Depreciation 169,063 30,896 36,840 8,351 5,160 851 3.157 1,081 149 54 90 836 67 245 29 185 205,903 39,247 5,160 851 51,786 15,940 6,508 1,026 3,162 11,948 953 1.880 540 3,462 134,824 44. 700 4.920 48,629 14,859 6,359 972 3,072 11,112 886 1,635 511 3,277 23,807 15.102 6,249 464 3,145 12,358 1,077 4,853 11,584 3,092 Total 291.271 57,095 348,366 266,655 The charitable company initially identifies the costs of its support functions. It then identifies those support costs which relate to the governance function. Governance costs and other support costs are then apportioned on the basis of time spent and other expenditure between the costs of raising funds and its key charitable activitie5 undertaken Isee notes 4 and 5 above) in the year. Page 19
EIRIS FOUNDATION IA Company Limited by Guarantee) NOTES TO THE ACCOUNTS {continued) For the year ended 315t March 2024 NET INCOME IEXPENDITUREI 2024 2023 This is stated after charging the following: Staff costs (see note 81 Auditors, remuneration (inc. VA T) Audit fees Accountancy and general advice Tax advisory services Operating lease rentals Depreciation 658,788 445,902 5,160 4,740 300 23,027 3,462 4,920 5,040 3( 13,177 3.092 DIRECTORS AND EMPLOYEES 2024 2023 Salaries and wages Social security costs Pension costs 537,342 69,419 52,027 372,974 37,309 35,619 658,788 445.902 The staff cost5 have been allocated between c05t of raising funds and expenditure on charitable activities as follows: Costs of raising funds {note 41 Staff costs Governance (note 61 Support costs (note 6) Expenditure on charitable activities (note Sl Staff costs Other support costs Inote 61 Governance (note 61 63,114 2,176 26,176 27,472 2.463 5,876 389,771 142,887 34,664 283,606 89,119 37,366 658,788 445,902 The avera8e number of employees during the year was.. Administration Research & Project work No. No. 12 13 io None of the Council Member5 (who are also the trustees of the charity and directors of the Company) received any reimbursement for expenses or remuneration from employment or payment for professional or other services supplied to the charity during the current or preceding year. The charity considers its key management personnel comprise the trustees and the Chief Executive Officer. The total employment benefits including ernployer pension contributions of the key management personnel were £83,708 {2023 - £81,243). One employee received emolument5 lexcluding employer pension costs) exceeding £60,000 during the year within the band of £70,000 to £80.00012023- one within the band £60,000 to £70,000). Page 20
EIRIS FOUNDATION IA Company Limited by Guarantee) NOTES TO THE ACCOUNTS Icontinuedl For the year ended 31st March 2024 CORPORATION TAX The charitable company 15 exempt from tax on income and gains falling Within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. 10. INTANGIBLE FIXED ASSETS The group Goodwill Total Cost ot l April 2023 Additions during the year 34, 751 34,751 Cost at 31 March 2024 34.751 34,751 Accumuloted omortisation at l April 2023 Amortisation for the year 34,212 539 34,212 539 Amort15ation at 31 March 2024 34,751 34,751 Net book amount at 31 March 2024 Net book value at 31 Morch 2023 539 539 See note 211) for more details of goodwill. Amortisation is included in income and expenditure for the year. 11. TANGIBLE FIXED ASSETS Group Office Charity Office ui Cost atApril 2023 Additions during the year Disposa15 and scrapped during the year 11,908 2,288 19521 9.779 1,400 Cost at 31 March 2024 13,244 11.179 Accumuloted depreciation at l April 2023 Charge for the year Accumulated depreciation on disposals and scrapped a55ets 6.057 3,462 19251 5,424 2,649 Depreciation at 31 March 2024 8,594 8,073 Net book amount at 31 March 2024 4.650 3.106 Net book value ut 31 Morch 2023 5,851 4,355 Page 21
EIRIS FOUNDATION (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS Icontinuedl For the year ended 31st March 2024 12. FIXED ASSET INVESTMENTS The Group Other Investments 2024 Total 2023 Total At market value l April Additions Disposals Net gain/llossl on revaluation 965,230 965,230 490,232 500,000 10,072 10,072 {25,002) Market value at 31 March 975,302 975,302 965,230 EIRIS Foundation invests in two investment funds.. Castlefield Investment Partners LLP Icastlefieldl an investment management and financial planning business with a reputation for being at the forefront of ethical and sustainable investing. Snowball Impact Investments LP (Snowball) which invests all capital for social and environmental impact as well as financial returns. Both investments are carried at their fair value which is the net asset value INAVI prevailing on the valuation date provided by investment managers. FIXED ASSET INVESTMENTS The Charity Other Investment in Investments subsidiaries 2024 Total 2023 Totol At cost at l April At market value l April Additions at cost Disposals Net gain/llos5) on revaluation 62.231 62,231 965,230 62.231 490,232 500,000 965,230 10,072 10,072 125,0021 Cost at 31 March Market value at 31 March 62,231 62,231 975,302 62,231 965,230 975,302 Total investments 975,302 62,231 1,037,533 1,027,461 During the previous year EIRIS Foundation invested in Castlefield Investment Partners LLP (Castlefieldl an investment management and financial planning business with a reputation for being at the forefront of ethical and sustainable investing. The year before135t year the cornpany invested in Snowball Impact Investments LP {Snowballl which invests all capital for social and environmental impact a5 well as financial returns. Both investments are carried at their fair value which is the net a55et value (NAVI prevailing on the valuation date provided by investment managers. The investment in subsidiaries consists of two US companies, EIRIS Conflict Risk Network ICRNI and EIRIS USA and is shown at cost. EIRIS CRN is now dormant and the work of EIRIS CRN has been transferred to EIRIS USA. No dividends or other distributions were received from the subsidiary companies during the current or preceding year. See note 20 for more details of the 5ub5idiary companies. Page 22
EIRIS FOUNDATION {A Company Limited by Guarantee) NOTES TO THE ACCOUNTS Icontinuedl For the year ended 31st March 2024 13. DEBTORS Group 2024 Group 2023 Charity 2024 Charity 2023 Trade debtors Other debtor5 Prepayments and accrued income 14,098 2,907 37,787 77,658 3,291 52,829 40,204 3,291 50,098 2,907 34,833 54,792 133. 778 37,740 93,593 14. CREDITORS: Amounts falling due within one year Group 2024 Group 2023 Charity 2024 Chority 2023 Trade creditors Taxation and social security cost5 Other creditors Accruals and deferred income 10,434 665 11.284 71,134 13,938 381 16,900 121,365 5,410 4,708 7,618 28.776 15,983 73,039 93,517 152,584 41,804 93,730 Deferred income Deferred income included above comprises income received in advance of the period of commitment. Group Group Charity 2024 2023 2024 Charity 2023 Balance as at l April 2023 Amount released to income from charitable activities Amount deferred in year 44,282 (44.282) 32,358 22,698 {22,6981 44.282 Balance as at 31 March 2024 32,358 44,282 15. PROVISION FOR OTHER LIABILlEs The Group and Charitable Company Leave pav provision Provision at l April 2023 Additions utilised in the year lQ.128 14,160 110,1281 Provision at 31 March 2024 14,160 The leave pay provision represents holiday balances accrued as a result of services rendered in the reporting year and which employees are entitled to carry forward. The provision is measured as the salary cost payable at the year-end for the period of absence. Page 23
EIRIS FOUNDATION (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS Icontinuedl For the year ended 31st March 2024 16. RELATED PARTY TRANSACTIONS There were no related party transactions during the year other than those with the company's wholly controlled Subsidiary companies. See note 20 for more details of the subsidiary companies 17. INCOME FUNDS Anuly5j5 OA Gmupfund movements Balance b/fv4d Incomel Expenditure/ {Gains) (losses) Balance c/fvJd Unrestricted funds General income fund 1,490.974 326,570 1719,1891 1,098,355 Restricted funds Social Investment in Charity Pooled Funds Laudes Foundation for Social Lobbymap Utilising Whole Endowments for Mission OSPC for Social Lobbymap 10,000 247,723 5,932 121,086 12,0001 1127.2611 {5,9321 132,9471 8,000 120,462 88,139 Total restricted funds 384,741 {168,1401 216,601 Total funds 1,490,974 711,311 {887.3291 1,314,956 Anolysis of Charityfvnd movement5 Balance b/fwd Income/ Expenditure/ (Gains) {losses) Balance clfwd Unrestricted funds General income fund 1.551.542 262,915 1640,4491 1,174,008 Restricted funds Social Investment in Charity Pooled Funds Laudes Foundation for Social Lobbymap Utilising Whole Endowments for Mission OSPC for Social Lobbymap 10,000 247.723 5,932 121,086 12,0001 1127,2611 15,9321 132,9471 8,000 120,462 88,139 Total restricted funds 384,741 1168,1401 216,601 Total funds 1,551.542 647,656 1808,5891 1.390,609 Page 24
EIRIS FOUNDATION IA Company Limited by Guarantee) NOTES TO THE ACCOUNTS Icontinuedl For the year ended 31st March 2024 17. INCOME FUNDS (continued) Anafysis of GroupAund movements-previous year Bolance Income/ Expenditure/ (Goin51 (losses) Balance c/Awd b/fvd Unrestrlctedfund5 General income fund 1,841,614 342,320 (692,960) 1,490,974 Restrictedfvnds Social Influence Mop 60,250 (60,250) Tott71funds 1,841,614 402,570 (753.210) 1,490,974 Analysis of Chorityfvnd movements-previous year Bolonce b/fwd Income/ Expenditure/ (60insJ (105sesJ Balance c/fvd Unrestrlctedfunds Generol incomefund 1,894,109 264.221 (606, 788) 1,551,542 Restrictedfunds Social Influence Map 60.250 (60,250J Totalfunds 1,894,109 324.471 (667,038) 1,551,542 Description of funds The unrestricted general fund represent5 the 'free reserves, after allowing for all designated funds available to be spent at the discretion of the Council of Management. The restricted funds relate to grants and sponsorships given for specific purposes and which were spent on those purposes. Some of the restricted fund5 received during the year were not fully spent during the year and there were balances carried forward to be Spent in the following year as shown above12023 - no restricted fund balances brought forward or carried forward). Page 25
EIRIS FOUNDATION (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS Icontinuedl For the year ended 31st March 2024 18. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS Group General funds Group Restricted funds Total Group funds Charity Charity General Restricted funds funds Total Charitv funds Intangible assets Fixed assets Fixed asset investments Cash at bank and in hand Other current assets Creditors of less than one year Provisions for liabilities 4,650 975,302 195,361 30,719 193,5171 {14,1601 4,650 975,302 387,889 54,792 {93,5171 {14,1601 3,106 1,037,533 175,666 13,667 141,8041 114,1601 3,106 1,037,533 368,194 37,740 (41,804) (14,160) 192,528 24,073 192,528 24,073 Total 1,098,355 216,601 1,314,956 1,174,008 216,601 1,390,609 ANAL YSIS OF GROUP NET ASSETS BETWEEN FUNDS- PREVIOUS YEAR Group General funds Group Restricted funds Total Group fvnds Charity Chority Generol Restricted funds funds Totul Churity funds Intangible assets Fixed ossets Fixed asset investments Cosh at bank and in hand Other current ossets Creditors of less than one year Provi5ionsfor liabilities 539 5,851 965.230 548,288 133, 778 (152,584) (10,128) 539 5,851 965.230 548,288 133,778 (152,584) (10,128J 4,355 1.027,461 529.991 93,593 (93. 730) (10,128) 4,355 1,027,461 529.991 93,593 (93,730) (10,128) Total 1,490,974 1,490,974 1.551,542 1,551,542 19. FINANCIAL COMMITMENTS Operating leases The company had the following future minimum lease payments under non - cancellable operating leases for each of the following years.. 2024 2023 Payments due.. Land and buildings.- _ Not later than one year Later than one year and not later than five years 27,633 78,293 27,633 105,926 Total 105,926 133.559 With re8ard to the premises lease, the company can end the lease earlier than the agreed date after a written notice period of four calendar months, running from the end of the rnonth in which notice is given and after it pays the rent charges accruing for the rent period (these amount to £11,51412023 - £11.51411. Page 26
EIRIS FOUNDATION IA Company Limited by Guarantee) NOTES TO THE ACCOUNTS {continuedl For the year ended 31st March 2024 20. DETAILS OF CONSOLIDATED SUBSIDIARIES Country of incor oration Details of investment Name of com Ethical Investment Research Services IEIRISI USA an held USA Membership loo% EIRIS Conflict Risk Network USA Membership loo% Ethical Investment Research Services IEIRIS) USA The aggregate amount of capital and reserves at the year end and profit or loss for the year for EIRIS USA is as follows.. 2024 2023 Aggregate amount of capital and reserve5 113,4241 1.123 Profit I Ilossl for the year 114,547) 3,511 The registered office of Ethical Investment Research Services IEIRISI USA is Crown Colony Office Park 300 Congress Street. Suite 406, Quincy, MA 02169 USA. EIRIS Conflict Risk Network The aggregate amount of capital and reserves at the year end and profit or loss for the year for EIRIS Conflict Risk Network is as follows.. 2024 2023 Aggregate amount of capital and reserves Profit /1105s1 for the year The registered office of EIRIS Conflict Risk Network is Crown Colony Office Park 300 Congress Street, Suite 406, Quincy, MA 02169 USA. The Company is now dormant and the EIRIS CRN project has been transferred to EIRIS USA Page 27
EIRIS FOUNDATION IA Company Limited by Guarantee) NOTES TO THE ACCOUNTS {continuedl For the year ended 31st March 2024 21. PRIOR YEAR CONSOLIDATED STATEMENT OF FINANCIAL AcfiviTIES Ilncluding Consolidated Income and Expenditure Account) For the year ended 31st March 2023 Unrestricted Restricted 2023 2022 Notes Income Donations 31al 60,250 60,250 Incomefrom choritoble activities Contractual research work 31bl 300,960 300,960 239, 704 Investment income Bank and building society interest receivable Other income 10,602 10,602 1,954 30.758 30,758 Total income 342,320 60,250 402,570 241,658 Expenditure Costs of raising funds Cost5 of raising donations and grants Expenditure on charitable activities Grants payable Costs of activities - research. publications. information, provision of seminars 167,1861 (67,186) (10,458) 1600,7721 {60,2501 {661,0221 (462,058) Total expenditure 1667,9581 160,2501 (728,208) (472,516) Net income/ lexpenditurel before gains and losses on investments 1325,6381 {325,6381 (230.858) Net gains/ Ilosse5) on investment5 Loss on revaluation of investments Gain on sale of investments 12 12 {25,0021 125,002) (9, 768) Net income/ lexpenditurel for the year 1350,6401 (350,640) (240.626) Net movements in funds and net income/ {expenditurel for the year (350,640) (350,640) (240,626) Reconciliation of Funds Total funds brought forward 17 1,841,614 1,841,614 2,082,240 Total funds carried forward 17 1,490,974 1,490.974 1.841.614 All the operations undertaken by the company during the current and preceding year are continuing operations. The company ha5 no recognised gains and losses other than those included above and therefore no separate statement of total recogni5ed gains and losses has been presented. There were no restricted funds in the previous year. Page 28