2021-06-30-accounts

WWF-UK ANNUAL REPORT + FINANCIAL STATEMENTS

2020-21

RAISING SUPPORT

Here’s a quick summary of our income and expenditure for the year ending 30 June 2021, along with equivalent figures for the previous year. You can find more detail in our Financial Statements on pages 54-80.

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INCOME 2020-21 2019-20
MEMBERSHIP AND DONATIONS £42.8M £42.2M
LEGACIES £15.4M £17.0M
CORPORATE DONATIONS AND INCOME £14.9M £10.4M
EXPENDITURE 2020-21 2019-20
LOTTERY PROMOTIONS £2.1M £4.3M
CHARITABLE ACTIVITIES £62.0M £59.8M
INCOME CHARITABLE TRUSTS £4.5M £2.2M EXPENDITURE
COST OF RAISING FUNDS £20.6M £18.4M
WWF NETWORK AND OTHER CHARITIES £1.8M £1.9M
TOTAL £82.6M £78.2M
INVESTMENT INCOME £0.6M £0.8M
AID AGENCIES AND GOVERNMENT GRANTS £0.7M £0.8M
OTHER £1.5M £1.2M
TOTAL £84.3M £80.8M
2 2
2 2
02 0
0
2
0
0 0
1 1
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2
9
1 2
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20 20
© CHRIS J RATCLIFFE / WWF-UK
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CONTENTS

6 OUR SUCCESSES

WWF IN BRIEF

At WWF, we’re fighting to save our one shared home. We’re tackling the underlying causes that are driving nature’s decline – notably the food system and climate change. And we’re working to ensure future generations have a world with thriving habitats and species. We’re determined to make it politically, socially and economically unacceptable to continue using our planet’s precious natural resources faster than nature can restore itself.

TRUSTEES’ REPORT

• 10 A MESSAGE FROM OUR CHAIR 12 A MESSAGE FROM OUR CHIEF EXECUTIVE 14 OUR FOCUS

STRATEGIC REPORT

16 OUR ACHIEVEMENTS AND PERFORMANCE 32 FINANCIAL REVIEW 36 PRINCIPAL RISKS AND UNCERTAINTIES

• 39 GOVERNANCE

50 INDEPENDENT AUDITOR’S REPORT

54 FINANCIAL STATEMENTS 82 WWF-UK CORPORATE DIRECTORY

OUR SUCCESSES 2020

853

KENYA’S BLACK RHINO NUMBERS INCREASED TO 853 – UP FROM 350 IN THE 1980S

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PROTECTING SCOTLAND’S SUPPORTING WILDLIFE
PRECIOUS PEATLANDS GUARDIANS
The future for Scotland’s peatland IN EAST AFRICA
habitats is looking up thanks to WWF
Scotland, in partnership with RSPB We launched our Land for Life UK Aid
Scotland and the Scottish Wildlife Match appeal, raising £4.76 million
Trust. In August, we published – including £2 million from the
our joint Nature Recovery Plan for UK government – to support vital
Scotland, setting out 11 transformative community efforts to help people and
actions as part of a green recovery wildlife coexist and thrive in southern
from the pandemic – including Kenya and northern Tanzania.
restoring and protecting the country’s Focusing on a vast area of community
degraded peatlands. The Scottish lands, the project aims to improve
government has since agreed to ban the wellbeing of more than 27,000
heather-burning on peatlands and people while protecting wildlife such as
TACKLING THE DRIVERS to take a longer-term approach to LAUNCHING A elephants and lions. Through working
managing these vital carbon sinks – SECURING SUPPORT FOR closely with Maasai communities and
OF DEFORESTATION including phasing out the extraction LIFE ON OUR PLANET other partners, the money raised will
and sale of peat for horticulture, and NATURE’S RECOVERY support sustainable farming practices A YEAR WITHOUT
As deforestation in the Amazon dedicating funds for their protection. Our landmark film co-produced and the development of nature-
continued to break records, we Our flagship Living Planet Report with Silverback Films, David friendly business enterprises, and it
campaigned to stop products sold in 2020 revealed population sizes of Attenborough: A Life On Our Planet , will fund solutions to reduce human-
the UK from fuelling the destruction. mammals, birds, fish, amphibians and launched on Netflix. The film inspired wildlife conflict. Not a single rhino was killed by
With the help of our supporters, we reptiles have fallen on average by 68% many to hold digital screenings
kept pressure on the UK government since 1970. In the report, we outlined and kickstart conversations in their
to add ambitious measures to its the urgent action needed to put nature communities around how to redress
landmark Environment Bill. The on the path to recovery within the humanity’s broken relationship with
government has committed to next decade. A week later, at an event nature. We invited 500 passionate and
introduce laws that mean certain we organised jointly during the UN influential young people from around
high-risk products imported to the General Assembly, more than 70 the world to reflect on the film’s
UK can no longer be linked to illegal countries endorsed a Leaders’ Pledge messages at our virtual Changemakers’
deforestation. We’re continuing to for Nature promising to reverse nature Convention. The event also included
push for stronger laws to ensure loss by 2030 and to promote a green skills training workshops, panel
precious forests around the world are and just recovery from the pandemic. discussions and online networking
protected from all destruction, not just Among the pledges made, the UK events – providing opportunities for
destruction classed as ‘illegal’ in the government committed to protect 30% young people to share ideas around
producer country. of our land by 2030. how to shape the future of our planet. few as 350 in the mid-1980s.
JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER
© JOE FEREDAY / SILVERBACK FILMS
© JONATHAN CARAMANUS / GREEN RENAISSANCE / WWF-UK
© CHRIS STRICKLAND / ISTOCK © JUOZAS CERNIUS / WWF-UK
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SUPPORTING WILDLIFE GUARDIANS IN EAST AFRICA We launched our Land for Life UK Aid Match appeal, raising £4.76 million – including £2 million from the UK government – to support vital community efforts to help people and wildlife coexist and thrive in southern Kenya and northern Tanzania. Focusing on a vast area of community lands, the project aims to improve the wellbeing of more than 27,000 people while protecting wildlife such as elephants and lions. Through working closely with Maasai communities and other partners, the money raised will support sustainable farming practices A YEAR WITHOUT and the development of naturefriendly business enterprises, and it POACHING IN KENYA will fund solutions to reduce humanwildlife conflict. Not a single rhino was killed by

Not a single rhino was killed by poachers in Kenya during 2020 – for the first time in over 20 years. This success is a tribute to the work we’ve been doing with Kenya Wildlife Service and other partners to safeguard rhino populations – by helping supply vital equipment, including GPS systems, vehicles and cameras, and providing rangers and support teams on patrol with boots, rations and mosquito nets. In more good news – numbers of black rhinos in Kenya increased to 853 in 2020, having bounced back from as few as 350 in the mid-1980s.

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WWF-UK Annual Report and Financial Statements 2020-21

OUR SUCCESSES 2021

>250,000

MORE THAN 250,000 PEOPLE TOOK PART IN OUR CAMPAIGN WITH SKY OCEAN RESCUE TO PROMOTE OCEAN RECOVERY

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THE WILD IS CALLING CALLING FOR
We launched our new podcast series, OCEAN RECOVERY
Call of the Wild , giving listeners an
opportunity to dig deeper into the More than 250,000 people took part
issues affecting our planet and how in our Ocean Hero campaign with
they can make a difference. In the Sky Ocean Rescue, which aimed to
series, actor and WWF ambassador drive ocean recovery over the next
Cel Spellman speaks to a diverse decade. In May, we were outside
range of guests, including Sir David Parliament highlighting how Ocean
Attenborough, Poppy Okotcha, Steve Heroes are taking action to support
Backshall and David Lindo on a range ocean recovery, including signing our
of topics such as climate change, single- petition and writing to their MP. The
use plastics and fast fashion. So far, UK government has since announced a
the episodes have been listened to and pilot scheme banning fishing and other
downloaded almost 40,000 times. damaging activities within five ‘highly
protected marine protected areas’. It’s AT THE HEART OF
a much needed first step, but we still
BRINGING BACK need further urgent action to help UK
seas fully recover.
THE BIG CATS
INSPIRING STREET ART
Russia’s Land of the Leopard National
FOR EARTH HOUR Park turned nine in April. This vast
protected area was created in 2012
A record-breaking 192 countries to safeguard the core habitat of
and territories marked the start of Amur leopards – probably the rarest
a vital decade for climate action by big cat in the world – after years of
celebrating WWF’s annual Earth campaigning by us and others. Since
Hour events on 27 March. In Wales, then, we’ve focused on helping protect
three buildings in Rhyl, Treorchy and the forests from illegal logging and
Cardigan were transformed thanks to fires and supporting work to protect
a poetry and street-art project with the big cats and their prey from
Literature Wales. We worked with poaching. Our efforts are working –
, from restoring local children to write poems about new research this year revealed that
their hopes for a brighter future, Amur leopards have tripled their range
and these were turned into beautiful since the beginning of the century.
murals by artist Bryce Davies of Numbers of Amur tigers in the park
Peaceful Progress. have also tripled since its creation.
JANUARY FEBRUARY MARCH APRIL MAY JUNE
© LAND OF THE LEOPARD NATIONAL PARK
© JULIE JOHN PHOTOGRAPHY / WWF CYMRU
© JANE STOCKDALE / WWF-UK © SCOTT GARFITT / PINPEP / SHUTTERSTOCK
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We launched our new podcast series, Call of the Wild , giving listeners an opportunity to dig deeper into the issues affecting our planet and how they can make a difference. In the series, actor and WWF ambassador Cel Spellman speaks to a diverse range of guests, including Sir David Attenborough, Poppy Okotcha, Steve Backshall and David Lindo on a range of topics such as climate change, singleuse plastics and fast fashion. So far, the episodes have been listened to and downloaded almost 40,000 times.

More than 250,000 people took part in our Ocean Hero campaign with Sky Ocean Rescue, which aimed to drive ocean recovery over the next decade. In May, we were outside Parliament highlighting how Ocean Heroes are taking action to support ocean recovery, including signing our petition and writing to their MP. The UK government has since announced a pilot scheme banning fishing and other PUTTING UK NATURE damaging activities within five ‘highly protected marine protected areas’. It’s AT THE HEART OF a much needed first step, but we still need further urgent action to help UK CLIMATE ACTION seas fully recover.

We launched our flagship nature restoration project, Wild Ingleborough, in partnership with Natural England, Yorkshire Wildlife Trust, University of Leeds, United Bank of Carbon and the Woodland Trust. We’re working with local landowners, farmers and communities to restore and reconnect 1,150 hectares of wildlifefriendly habitats, including broadleaf woodland, upland heaths and wildflower grasslands – supporting a greater diversity of birds, mammals and invertebrates. By restoring carboncapturing peatlands and expanding native woodland, Ingleborough will provide a living example of how restoring nature at home can help tackle the climate emergency.

HOPE FOR THE YANGTZE

The Chinese government announced a historic law to boost the health of the world’s third-longest river, following years of work by WWF. The new Yangtze River Conservation Law takes a systematic approach to addressing many of the challenges facing the Yangtze. It includes a number of recommendations from our 2020 Living Yangtze Report , from restoring wetlands and reconnecting rivers and lakes, to managing sand mining and protecting flagship species – including the Yangtze finless porpoise.

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© JOSEPH GRAY / WWF-UK
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WWF-UK Annual Report and Financial Statements 2020-21

A MESSAGE FROM OUR CHAIR

During the past year the world has faced not only the ongoing pressures of the global pandemic but also the accelerating impacts of our warming planet, including severe droughts and floods, terrible wildfires, and the hottest temperatures in Europe and North America since records began.

These and many other environmental disasters this year underline an urgent need for everyone to step up and make a difference in the fight for our world.

And, as you’ll see in this report, that’s exactly the challenge my colleagues at WWF have risen to. I would like to offer each and every one of them, in the UK and internationally, my heartfelt thanks for their incredible commitment and resolve in the face of such difficult conditions. My sincere thanks, too, to our fantastic supporters who have helped us to keep delivering against our mission – and our many partners and stakeholders whose expertise and input is vital in helping us to achieve this.

I also take this opportunity to share our sadness about the death in April of HRH The Duke of Edinburgh, who was a pivotal patron of WWF and served as a passionate champion of our work ever since we were founded in 1961. He was the first president of WWF-UK and a lifelong advocate for the environment and conservation.

And right now, our one shared home needs all the help it can get. This year our latest Living Planet Report showed that nature is in freefall. In the 60 years since WWF was founded, our natural world – our life-support system – has come under unprecedented attack. Humankind is destroying the planet’s forests, polluting our oceans, decimating wildlife populations and causing devastating changes to the climate.

UN secretary general António Guterres gave a stark assessment of our planet’s predicament when he branded the findings of this year’s landmark Intergovernmental Panel on Climate Change report a ‘code red for humanity’. The IPCC report confirms human activity is changing the climate in unprecedented and sometimes irreversible ways. It warns of increasingly extreme heatwaves,

droughts and flooding. And it makes clear that only rapid and drastic reductions in greenhouse gases in this decade can prevent climate breakdown, with every fraction of a degree of further heating likely to compound the accelerating effects.

We know there remains hope – for people, for the climate and for the recovery of nature. But only if the world pulls together with the meaningful action and speed a ‘code red’ demands.

With such categorical evidence that this must be a decade of action, a last chance to steer the climate and nature onto a path to recovery, it is vital for WWF-UK to ensure our strategy is absolutely up to this task.

So we invited experts both inside and outside WWF to challenge our thinking and our existing strategy – to make sure we have the right priorities, and that we’re striving for outcomes that can make the impact we need in the time we have. Crucially, our plans include clear targets for us to achieve transformational results not just by the end of the decade but against 12-month and three-year outcomes.

The refined strategy focuses even more squarely on tackling the main drivers behind the biggest environmental problems – notably climate change and the food system. The way we produce and consume food is the leading cause of global nature loss and is responsible for up to 30% of greenhouse gas emissions. We’re also focusing on the financial and economic systems that hold the key to putting us on track to a future where we limit global temperature rise to 1.5°C. And we’re calling on the UK government to apply a ‘net-zero’ test to all its spending and investment decisions.

The world must address the climate crisis, fix the food system and restore nature at the same time. So our strategy also has a strong focus on restoring threatened habitats and species. Fundamental to that is working with local communities. Their knowledge is instrumental to what we want to achieve; working with them is of the utmost importance if we are to reverse the devastating loss of nature.

“ I believe WWF is in the best possible shape to spearhead truly transformational changes and protect the world we all rely on for our survival. I hope you will join us as we tackle the most pressing challenges of our times.”

Such work is not without its challenges, making it essential that our governance is as watertight as possible. The board has overseen further work this year to ensure we have the appropriate processes and skills in place to maintain all possible vigilance against any wrongdoing wherever we support or fund work. I am delighted to welcome new colleagues who have joined WWF’s board of trustees during the year, bringing their expertise in this key area and on other vital matters: Kirsty Brimelow QC, a hugely experienced barrister with particular expertise in international human rights violations; Dorcas Gwata, a global health and safeguarding consultant; and Dr Steve Waygood, a leading expert in sustainable finance.

I believe WWF is now in the best possible shape to spearhead truly transformational changes and protect the world we all rely on for our survival. Not least among the opportunities to do so is just around the corner, as the UK hosts the UN climate summit in November. At WWF, we will be putting our point of view strongly to all stakeholders, but with humanity at ‘code red’ we look to world leaders to take responsibility and kickstart this vital decade of change by agreeing truly ambitious and urgent action.

I hope you will join us and give every support possible as we tackle the most pressing challenges of our times.

Dave Lewis

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© DAVID BEBBER / WWF-UK
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WWF-UK Annual Report and Financial Statements 2020-21

10 TRUSTEES’ REPORT

A MESSAGE FROM OUR CHIEF EXECUTIVE

Sixty years ago, a small group of passionate, committed leaders and thinkers on the environment came together to sign an international declaration to save the world’s wildlife. It was the founding moment of what was then called the World Wildlife Fund.

It is an honour to lead WWF-UK after all these decades, building on the pioneering work of those founders to fulfil our mission: to build a future in which people live in harmony with nature.

The past year will be one that just about everyone will remember vividly. As the pandemic stretched beyond 2020 and touched every corner of the globe, so many people saw their worlds become dramatically smaller – the walls of their home, the boundaries of their local areas. There was a risk that in the circumstances, the climate and nature crisis might recede in its importance in people’s lives.

The reality could not have been more different. Rather than people becoming less concerned about the environment, we have seen quite the opposite: an outpouring of support, of commitment. People are more galvanised than ever to protect and restore our planet – our one shared home.

However, it has still been an immensely difficult and often frustrating year. While the pandemic made some of our activities more challenging, it did not reduce the urgency of our mission – and the last year has shown us more starkly than ever just how urgent that mission is. From deadly, record-breaking heatwaves in North America and Russia to wildfires from California to Cyprus; from the devastating floods in Europe to the heartbreak of a climate-driven famine in Madagascar, we have never been far from the heart-rending impacts of environmental destruction.

On a personal level, while taking part in a second Earth Hour during a national lockdown, I reflected on the landmark moments we’ve achieved in our determination to give our world a brighter future. Achievements such as the launch of Sir David Attenborough’s amazing, hard-hitting film, A Life On Our Planet ; the commitments won from the UK government on nature restoration and sustainable agriculture; and our record-breaking appeal that raised £4.76 million to support community efforts in Kenya and Tanzania to help people and wildlife thrive together.

I was also heartened by the interest shown in our ‘Learn to Love Nature’ online initiative, which offered educators a variety of creative ways to bring nature and conservation to life for young people – from making bee hotels and apple bird feeders to green heart animals. We have seen more people than ever willing to stand up for nature. More than 500,000 new supporters joined the fight for our world this year. And those voices are being heard.

Our own Living Planet Repor t gave the world further evidence that we urgently need to take action – with the headline that, on average, the population sizes of vertebrates across the world have fallen by around 68% in the last 50 years. And shortly after we released the report, we saw world leaders step up at the UN General Assembly to endorse a Leaders’ Pledge for Nature – including a UK pledge to protect 30% of our land by 2030. The UK’s commitment to a net-zero future has been joined by a commitment to put nature at the heart of reaching that goal.

As well as keeping up the pressure on our political leaders, we have increasingly been shining a light on what businesses can – and must – do. There are great companies taking the lead and showing what can be done, but many more must join them. In particular, the UK has the opportunity to lead the world in clean finance, but right now the finance sector is driving the high-carbon economy. In our Big Smoke report, we showed how our financial institutions are responsible for almost 1.8 times the emissions of the UK’s entire annual net footprint. This has to change. We’ll keep up the pressure on the government and our financial regulators to ensure all financial institutions have net-zero transition plans that cover all their investments and lending. We’re calling for the UK to be the first financial sector in the world to commit to aligning with the Paris Climate Agreement’s targets.

We have had strong success in keeping the climate high on the news agenda. This year our Feeling the Heat report made headlines with its outline of the terrible effects a warming world is predicted to have on both nature and people. The report explained the pressures on our own beloved bluebells, bumblebees, puffins and mountain hares, as well as snow leopards, emperor penguins, hippos, coral reefs and even coffee. It also included first-hand experiences of the impacts – such as increasingly severe flooding and drought – already being suffered by people from Alaska to the Amazon, and from the Maasai Mara to Bangladesh.

We know the fight to prevent climate catastrophe and turn around the destruction of nature cannot be won without making changes to every sector of our economy and every part of our lives. In our determination to tackle this challenge from all angles, WWF has found itself being active and vocal in areas we might not have dreamed of even five years ago.

Our work on trade is a great example of this. Even as we’ve welcomed further commitments on farming that can help to restore nature – many of which we’ve long been calling for – we have also seen the peril of bad trade deals that could undermine those improvements by exporting our environmental footprint rather than reducing it.

In the year ahead, we know we need to keep standing up for high environmental standards and pressing the UK government to export those standards globally, using our country’s market power to drive demand for sustainable, high-welfare farming around the world, rather than inviting imports that leave environmental destruction in their wake.

We have only been able to continue all of this work thanks to the fantastic commitment and generosity of our supporters who, in such turbulent times, have continued to join us in the fight for our world and who helped us to generate income of more than £84 million in the year. This

“ We have seen an outpouring of support, of commitment. People are more galvanised than ever to protect and restore our planet – our one shared home.”

was above the level of funds budgeted and has helped us to increase our charitable spend by more than £2 million. This income has also helped secure financial sustainability during an uncertain period. I would like to take this opportunity to thank each and every one of you. I know that the team at WWF take great joy in our thank-you days each year, when we speak directly with many of our supporters to thank them for everything they do.

For me, there is no greater inspiration in tough times than a letter from one of our young supporters showing their excitement about our natural world, their curiosity and their optimism for the future. Each and every one of them is precious. Our mission is to help create a better world for them.

As we look to the future, we know we can be proud of the promises and commitments we have won from decision makers, even as we press them to be more ambitious. And we will have a second, crucial task: keeping our politicians and business leaders up to the mark in delivering on those commitments. We won’t forget the promises they’ve made – and we know our supporters won’t forget them either. Together, we’ll stand firm to make sure they are delivered.

Tanya Steele

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WWF-UK Annual Report and Financial Statements 2020-21

12 TRUSTEES’ REPORT

OUR FOCUS

RIGHT NOW, OUR PLANET IS UNDER THREAT LIKE NEVER BEFORE

Nature is in freefall: we’re destroying our forests, polluting our rivers and oceans, and causing devastating changes to the climate. WWF’s latest Living Planet Report shows average population sizes of vertebrate wildlife have declined by 68% since 1970. We’re also seeing the effects on our own doorstep: more than half of UK species have declined since 1970.

The fight for our world is now about much more than saving tigers, elephants and giant pandas – it’s about survival for all of us, in our one shared home.

BUT THERE IS HOPE

At WWF we know the solutions already exist to turn things around for future generations – if we urgently scale-up our efforts.

Shockingly, the way we produce and consume food drives 60% of global nature loss – and around 37% of the world’s land area is used for food production, leaving increasingly smaller areas of our shared home for wildlife to inhabit. The natural world is also increasingly threatened by climate change. The science says we must address the climate crisis, fix the food system and restore nature at the same time. So we must limit global warming to 1.5°C, transform the way we produce and consume food, and provide space for nature to recover.

WWF is uniquely well-placed to help turn things around. We’ve been protecting nature’s wonders for more than 60 years.

We’re the only organisation making the links between food, climate and biodiversity loss, and our strategy focuses on tackling these threats in three key ways:

• averting dangerous climate change

• creating a sustainable food system

• restoring threatened habitats and species.

We have the scientific knowledge to help achieve this, thanks to groundbreaking research on nature, climate and the need for reform of food and agriculture systems. And along with our expertise in conservation and advocacy, the global reach of the WWF network and the backing of our supporters, we can influence governments and businesses.

We need everyone – the public, businesses and governments in the UK and overseas – to act. With our partners and amazing supporters we can help restore forests, rivers and oceans; we can bring endangered wildlife back from the brink of extinction. And we can wake up politicians and businesses to the reality of climate change and the loss of nature.

We’re already seeing results, such as more than 80 global leaders committing to reverse nature loss by 2030 by signing the ‘Leaders Pledge for Nature’, and the UK government setting out plans to put ‘green’ at the heart of our economic recovery. As a result of programmes we support through the WWF network, we’ve seen the Chinese government amend its forestry law to ban all illegal timber from China’s supply chains, the Indian government announce WWF-endorsed minimum standards for managing its tiger reserves, and the number of mountain gorillas increase in Uganda.

To achieve the ambitious impacts we need to have, we’re striving to greatly increase support for our work. We’re putting our supporters at the centre of all we do – to encourage them to act with us, because everything we do relies on their incredible generosity. We’re also determined to make WWF the most effective and inclusive organisation possible, to give us the best opportunity to deliver our strategy. And we’ll ensure our conservation successes are achieved in harmony with people and an unflinching respect for human rights.

Our vision is that by 2030 the natural world’s vital signs will be improving and we’ll have halted the loss of nature.

Until 2024, we’re focusing on the goals outlined on the next pages to set us on the right track to meeting this vital target.

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STRATEGIC REPORT

OUR ACHIEVEMENTS AND PERFORMANCE

In this section we outline a selection of our achievements and performance against our objectives for the year ended 30 June 2021. This does not cover the full scope of our work. Visit our website to find out more about our work: wwf.org.uk

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GOAL EXPENDITURE
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CREATING A 2020-21
£9.0M
SUSTAINABLE
2019-20
FOOD SYSTEM £7.2M
AVERTING 2020-21
DANGEROUS £5.4M
CLIMATE 2019-20
CHANGE £3.8M
RESTORING 2020-21
THREATENED £21.7M
HABITATS AND 2019-20
SPECIES £27.5M
2020-21
GROWING £19.3M
SUPPORT 2019-20
£14.0M
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CREATING A SUSTAINABLE FOOD SYSTEM

We’re fighting to reform our food system, to halt nature loss and ensure the UK leads a global transformation to sustainable production and consumption of food.

2020-21 TARGET

2020-21 TARGET

We’ll influence the sustainability strategies of target UK businesses and use their voice to help us influence UK environmental policy and legislation to reduce footprint, particularly on soy and palm, and to embed due diligence.

We’ll seek to support the creation of integrated national food strategies in the UK, and to influence an approach to sustainable UK trade that supports the reduction of the UK footprint.

The UK food system affects not only our health, but also that of the natural environment it relies on. Right now it’s undermining both – including the stability of the climate, as food accounts for more than a fifth of our domestic emissions and over 30% of our global climate impact. At a global level the food and agriculture system drives 60% of nature loss.

We continued to advocate, including with businesses, for mandatory due diligence on commodities that pose risks to forests and other ecosystems. Following this, the UK government launched a consultation. Most of the responses (some 59,000) were generated through our call to action on our website. At the end of the consultation period we worked with the Retail Soy Group and Mighty Earth to coordinate a letter to the Secretary of State in support of robust due diligence.

To address the urgent challenge of transforming the food system, the UK government supported a National Food Strategy, which incorporated many of our policy asks. It is the first comprehensive independent review of the food system in England for 75 years. The review was published in July – just after our reporting year – and its recommendations will inform a White Paper response from the government.

In 2021, rates of deforestation in key areas of Brazil are increasing, compounded by attempts to remove forest protections from Brazilian law. We briefed companies on the Brazilian government’s land-grabbing bill, which if approved would leave the Amazon wide open to illegal seizures of public lands and protected forests. Many UK companies were among more than 40 businesses who called on the Brazilian legislature to vote down the bill. The media attention this received was important in helping to create space for improvement. The threat remains and we will continue to resist changes that will impact people and nature negatively.

During the year we advocated for core environmental standards in trade – which would protect the transition to sustainable agriculture in the UK and prevent us offshoring our environmental footprint. Five key food businesses issued a statement supporting the development of such standards. They are being recommended in various forms by the Trade and Agriculture Commission, the National Food Strategy Review and the Committee on Climate Change.

We followed up our 2020 Palm Oil Buyers’ Scorecard with a series of case studies highlighting the challenges of sourcing sustainable palm oil, along with solutions implemented by companies including Boots, the Co-op and Tesco.

On trade, together with farmers and civil society, we successfully highlighted the risk to food, farming and standards from trade deals. These led to the creation of the Trade and Agriculture Commission, which produced recommendations on agricultural trade policy and the environment, and the commitment to create a statutory body to report on whether any trade deals put existing UK environmental standards at risk.

We led the development of the WWF network’s first global Soy Traders’ Scorecard, which highlights major gaps in actions taken by soy traders to halt soy-driven deforestation and conversion. We continued to work with the Accountability Framework Initiative to develop more detailed guidance for soy buyers and traders on how to manage supplier non-compliance with policies on human rights and deforestation- and conversion-free supply chains.

2020-21 TARGET

We’ll use WWF and Tesco’s basket metric to advocate for step changes in transparency and accountability across the food retail industry.

As part of our ambition to halve the environmental impact of the average UK shopping basket, we’ve developed a metric that allows retailers to orient their actions and measure their progress. This year we publicly launched the metric to the broader industry, as a key part of our work to advocate for step changes in transparency and accountability. Our basket metric enables the food retail sector to measure progress in seven areas: climate change, deforestation, sustainable agriculture, marine sustainability, packaging, food waste and consumer diets.

This work positioned WWF as a key convenor of the UK food sector to drive the change needed to enable the sector to tackle its global footprint and lead the way to avert dangerous climate change and restore nature.

2020-21 TARGET

We’ll support the call for radical agricultural reform in the UK and abroad to reduce the devastating impact unsustainable food and agricultural production have on nature. And we’ll make the most of the once-in-a-generation opportunity to influence the UK’s Environment Bill, Agriculture Bill and trade deals.

The Environment Bill offers a vital opportunity for UK legislation that commits to restoring nature. We inspired almost 23,000 of our supporters to sign a petition led by LINK and RSPB calling on the UK government to include a State of Nature target in the bill.

We secured strong recommendations on due diligence, deforestation and global footprint in the Global Resource Initiative taskforce’s final report to the UK government.

We demonstrated business support for due diligence legislation. For example, we encouraged leading food companies to write to the prime minister in October 2020, calling for more ambitious mandatory due diligence.

We also encouraged almost 13,000 of our supporters to call on their MPs to ensure the bill drives UK supply chains to become deforestation and conversion free by 2023. And we raised awareness of our asks on the Environment Bill among MPs and Peers. This resulted in Lord Randall tabling two Global Footprint target amendments, both of which were debated in the House of Lords – one in July 2021, the other in September.

We published Thriving Within Our Planetary Means , a report that sets out a target to reduce the UK’s consumption and production footprint and action required to meet targets to reduce the impact of the 10 key drivers of environmental devastation – including greenhouse gas emissions, land-use change, material consumption, and air and water pollution.

To help support the progressive implementation of the government’s agriculture and environmental agendas we co-funded the first regional Systematic Conservation Plan in England, in East Anglia. The plan helps identify the most effective interventions for nature and the climate working at a landscape scale.

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2020-21 TARGET

We adapted the main thrust of our campaign when the UK government looked set to agree a trade deal with the US that could have harmful repercussions for nature and our food and agriculture standards. We aimed to ensure the UK’s environmental standards, including on imports, are among the best in the world.

We’ll deliver a public campaign for tough new nature laws, reflecting the current national context and connecting people with nature.

Last autumn, our efforts to engage people with the urgent need to reverse the nature crisis centred around our landmark film with Sir David Attenborough (see page 29) and the launch of our latest Living Planet Report , which showed average population sizes of vertebrate wildlife have plummeted by 68% since 1970. The report contained the first global modelling to demonstrate the scale of systemic change needed to restore nature while feeding a growing global human population, along with evidence that it’s possible to do so.

We launched our Stand Up for British Standards campaign to demonstrate to MPs the concern local farmers, food retailers and consumers have for British food and farming – and the strong national desire to protect food standards and avoid unhealthy, intensively farmed food in new trade deals. We worked with organisations including Jamie Oliver’s Bite Back 2030 campaign and the National Farmers’ Union to put pressure on government to ‘save our standards’. And we pushed for amendments to the UK’s Agriculture Bill that would protect our standards in trade deals.

Strong media coverage of both the film and the report gave us good advocacy opportunities, and we launched a campaign to build a public mandate for tough new UK nature laws, calling on everyone to demand action to help restore the natural world.

Our efforts helped influence the government to make a U-turn and commit publicly to protect UK food standards in its Agriculture Bill. The campaign also enabled us to step strongly into a position of authority on the importance of trade deals in tackling the nature crisis.

OUR 2021-22 PRIORITIES WILL INCLUDE

We’ll outline what successful landscape restoration looks like, and produce plans on how to achieve this. We’ll use them to influence the Forest, Agriculture and Commodity Trade dialogues and drive action at the UN climate summit in Glasgow.

We’ll convene major UK food We’ll advocate for the UK sector companies to lead change government to introduce laws or by agreeing ambitious climate policies to remove deforestation and deforestation outcomes in from supply chains. their supply chains.

AVERTING DANGEROUS CLIMATE CHANGE

We’re pushing the UK for the strongest ambition and measures to decarbonise, to help tackle the climate emergency.

2020-21 TARGET

part of its enhanced ‘nationally determined contribution’ (NDC), a requirement of the Paris Agreement. The UK’s ambitious NDC helped to pave the way for a series of strong commitments from other countries. Working with coalition partners we also helped secure a commitment for an ‘indicative’ NDC from the Scottish government.

We’ll influence the UK governments – in the run-up to the UN climate summit – to raise their climate ambition and to support nature-based solutions that contribute to climate action, human development and the recovery of nature.

The build-up to COP26 was an important focus for us throughout the year. We provided regular expert input to the UK government, including meeting with the prime minister to discuss our asks for COP26.

This year’s UN climate summit in Glasgow (known as COP26) is a critical opportunity for the UK to show leadership and secure the action needed to prevent climate breakdown. We’ve taken every opportunity to press the UK governments to demonstrate strong ambition.

2020-21 TARGET

We’ll influence the UK business and finance sector to implement measures aligned with a 1.5˚C pathway in their operations, supply chains and investment activities.

Among our highlights were delivering the Leaders’ Pledge for Nature together with the UK and other governments at the UN Summit on Biodiversity in September 2020. By the end of our financial year more than 80 presidents and prime ministers (including Boris Johnson) had endorsed the pledge, committing by 2030 to reverse nature loss and protect 30% of land and seas.

The size and scope of carbon emissions produced by companies funded by the UK finance sector make this a critical area to transform if we’re to meet the Paris climate agreement targets. This year we mobilised an NGO coalition pushing for the UK government to commit to creating a Paris-aligned finance sector, and ultimately to make it mandatory for regulated financial institutions to publish a plan that outlines how they will align their portfolios with the Paris agreement and net zero requirements.

And our Feeling the Heat report delivered a powerful message about the urgent need for world leaders to act at COP26. The report highlighted many species, including beloved UK wildlife, that will struggle to survive if the planet heats up by more than 1.5°C.

We partnered with the UK government to deliver the Climate Ambition Summit in December 2020. This summit marked the fifth anniversary of the Paris climate agreement. It brought together 75 world leaders to galvanise international action towards a resilient, net-zero emissions future. Announcements before, during and anticipated after the summit mean that by early 2022, countries responsible for around 65% of global carbon emissions will have committed to net-zero emissions or carbon neutrality.

In the lead-up to the Climate Ambition Summit, our advocacy – including our influential report with Imperial Consultants – contributed to the UK boosting its 2030 emissions reduction target from 53% to at least 68% as

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by extension, other Arctic species. With partners including satellite imagery company Maxar, we identified and mapped all known terrestrial haul-out sites across the Arctic, and completed the image capture and processing of 90% of them. In summer 2021 we are capturing a second year of images.

Global Futures initiative, and organised an event with leaders from government, business and finance to build support for strong action to put the review’s findings into practice. Our messages were reflected in the government’s response to the review; it’s helped cement our position as a major voice on economic and fiscal policy in this area.

We also worked with Maxar GeoHIVE to develop an online platform that will allow the public to take part in counting walruses and helping us identify changes in walrus locations and numbers. The site went live for testing during the year and we presented the initial outcomes at the Global Biodiversity Festival in May 2021. We reduced the scope of the project to focus on Atlantic and Laptev walruses, in response to Alaskan indigenous community sensitivities related to Pacific walruses. We intend to start using the platform to engage with a mass public audience this autumn, with a launch event in Greenwich alongside the UK’s new polar research ship Sir David Attenborough , and a series of events during the UN climate summit in Glasgow.

2020-21 TARGET

We’ll launch Walrus from Space – our pioneering method of assessing the global walrus population in the context of the climate crisis and Arctic sea ice loss, involving satellite imagery, citizen science and tracking.

This year we and British Antarctic Survey led the development of a new five-year citizen science project called Walrus From Space, to help better understand the effect the changing Arctic is having on walrus populations – and,

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Greening the economy is essential if we’re to keep the UK on target to meet its Paris climate commitments. This year we developed the idea of a ‘net zero test’ for the Treasury to apply to its Budgets and Spending Reviews, to ensure they keep us on track to a 1.5°C future. We worked with the Treasury, Bank of England, Office for Budgetary Responsibility, International Monetary Fund and others to make the case for a net zero test and other fiscal reforms to support a green recovery.

With Greenpeace, we published The Big Smoke – a report that estimated the scale of financed emissions that UK financial institutions are responsible for. We used the research findings to demonstrate how huge the UK financial sector’s contribution to climate change is – and the need for new UK regulation to drive urgent emissions reduction targets in line with the Paris climate agreement. The momentum on this topic has increased substantially and tackling the finance sector’s contribution to climate change has become a mainstream discussion in the sector. WWF helped to influence this direction.

We worked with Vivid Economics to demonstrate how a net zero test could measure the environmental impact of all new policies in the March Budget. We’re using this evidence in our autumn 2021 ‘We Won’t Forget’ campaign.

Our ambitious work with corporate partners included influencing Tesco both on its science-based climate targets and also in adopting climate risk into its corporate risk register. Tesco also supported our Emission Possible report, which helps companies understand their climate impacts and how to measure and reduce them. And with Scottish Power we launched a Climate Collaboration Challenge – to inspire new innovative partnerships (between government, civil society, finance, academia and many business sectors) in Scotland that will deliver faster and more ambitious action to tackle climate change. We’ll showcase the new climate projects at the UN climate summit in Glasgow.

Our work with the Environmental Audit Committee and Climate Change Committee led to them making the net zero test a key recommendation for government – increasing the pressure for a response. Following our lobbying, the Treasury also joined the OECD’s Paris Collaborative on Green Budgeting, further strengthening the enabling conditions for the net zero test.

OUR 2021-22 PRIORITIES WILL INCLUDE

We also helped to shift the Treasury’s thinking around economic and fiscal reform by inputting to the Dasgupta Review on the Economics of Biodiversity, which was published in January. At WWF, we’d been calling for the UK government to assess the economic contribution of biodiversity and nature for many years. The review is a global analysis of the implications of nature loss to economies and human wellbeing. It highlights the need to transform economic and financial systems to be nature positive. We supported the review with evidence from our

We’ll influence the UK government’s climate commitments at the UN climate summit in Glasgow.

We’ll influence the UK government’s vision for UK food and farming to ensure it’s compatible with a 1.5°C future. We’ll identify emissions targets and develop plans to meet them.

We’ll continue to We’ll press the UK advocate for the UK to government to commit apply a net-zero test to to making it mandatory public spending. We’ll for UK-regulated publish and apply a pilot financial institutions to net-zero test. publish their plans for aligning with the Paris Agreement.

2020-21 TARGET

We’ll influence economic recovery packages, including pushing for a new rule that public spending must help decarbonise the economy. We want environmental impacts considered in all economic and financial decisions.

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RESTORING THREATENED HABITATS AND SPECIES

We’re working to halt the loss of habitats and restore natural life-support systems for people and species in some of the world’s most special places.

And in the UK, we’ve influenced the UK’s Environment Bill to include due diligence on imports that may contribute to Amazon deforestation.

2020-21 TARGET

We’ll support communities across the Amazon region and advocate internationally to prevent damaging trade and environmental policy decisions and protect the Amazon rainforest.

2020-21 TARGET

We’ll expand and scale up our support for major integrated landscape and seascape programmes, to set them on the road to being conserved, restored, connected and climate resilient.

We know if we lose the Amazon, we lose the fight against climate change. So it’s a priority for WWF to influence trade and environmental policy decisions that affect the Amazon, and to stand in support of indigenous peoples and local communities.

Our work covers large areas of land and sea across Africa, Asia and Latin America, as well as closer to home. The following is a small selection of our achievements during the past year.

This year the political, social and economic situation across the Amazon continued to increase the threats to this vitally important biome – most notably in Brazil where deforestation and fire rates were at a 12-year high, and where huge areas of land are being converted for agriculture and farming. Indigenous peoples here faced growing challenges to their territories, livelihoods and rights; Covid and forest fires continued to pose a huge challenge for Amazon communities.

Boosting community forest management, Tanzania

In east Africa’s Ruvuma landscape, we supported work to establish additional areas under better protection through community management in miombo woodlands – an ecosystem that provides important habitats for wildlife including elephants, leopards and lions. More than 100 sq km were added in Tanzania.

We and the WWF network raised emergency funding and worked with 70 indigenous groups, delivering more than 7,000 pieces of equipment to combat fires and detect deforestation.

Climate change means fires are happening in this region more often, so we supported the creation of a real-time fire information management system that uses satellite imagery and alerts authorities and communities about fires.

In Brazil’s Rondônia and Acre states, we supported local NGOs and indigenous groups to strengthen monitoring and defence of their rainforest territories from the growing threat of illegal land grabs, logging and mining.

Regenerating organically, India

In the Central Indian Landscape, we supported local communities who live in critical wildlife corridors – in areas that are home to around 800 tigers – to improve their livelihoods in sustainable ways, and to maintain connectivity between protected areas. Our support included helping them adopt organic practices that can regenerate the land. We worked with traditional honey collectors to use methods that will avoid accidental forest fires and will help them receive a better price. We also worked with local communities to help map their natural resources, and we supported their rights to manage and use those areas.

In Brazil, our advocacy helped overturn parliamentary vetoes against a new law that could have undermined payments for environmental services. And for the time being we have avoided the ‘land-grabbing’ bill being approved by the Federal Senate.

In China, a prime and growing market for Brazilian soy and beef, our advocacy led to breakthroughs including China’s first set of guiding principles and standards for green procurement in its meat industry. Ten private sector enterprises have committed to practise green procurement.

Restoring seagrass, UK

In Dale Bay, Pembrokeshire, with our partners we planted a further 450,000 seagrass seeds, meeting our target of planting two hectares of this important habitat. This demonstrated the feasibility of our restoration model. Seagrass provides a key nursery for marine species, reduces coastal erosion, sequesters carbon and helps remove pollutants. Our thanks to people from the local community who helped design and implement the project and have volunteered more than 4,500 hours of their time since the project started in 2019.

2020-21 TARGET

We’ll work together with communities who live alongside wildlife, to develop secure and sustainable livelihoods – during and post-pandemic.

Communities are at the heart of our work. We’re committed to ensuring their rights are respected, and supporting their ongoing efforts to live sustainably with nature. And we recognise the very significant contributions indigenous peoples have made to ensure the conservation of nature.

The rising demand for space and encroachment into wildlife-rich habitats is leading to more interaction between people, livestock and wildlife. The resulting risk of conflict, diseases and scarcity of natural resources imperils people’s livelihoods, it jeopardises economic development, and it threatens habitats and wildlife.

This situation has been compounded by Covid, as communities face increased economic hardship and rely even more on natural resources. This year we worked with local communities to help them overcome some of these challenges.

In Kenya, working with the Mara Predator Conservation Programme we helped fund predator-proof livestock enclosures that have protected 4,600 cattle from night attacks. And on maize farms around the Maasai Mara, where we previously supported building fences to deter elephants, this year almost all crop raids were eliminated and harvests nearly doubled.

In the Khata wildlife corridor in Nepal, communities supported by WWF planted thorny plants and crops such as chillies and lemons which are unpalatable to wildlife and act as a ‘bio-fences’. This helped reduce crop damage and it provides vital income.

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We also worked with local communities to explore ways to support sustainable livelihoods post-pandemic. As part of our Beyond Tourism initiative, we’re piloting a Certified Gorilla Friendly™ project with 10 local businesses around Volcanoes National Park (Rwanda) and Bwindi Mgahinga Conservation Area (Uganda).

We worked with villagers and local politicians in Namakambale Ward in Tanzania to ensure the community prioritises monitoring and auditing of their annual plans for community-based forest management.

We worked with colleagues in Colombia to support indigenous groups’ governance of the Inírida Ramsar site. Findings from biological surveys will help improve sustainable management of the Inírida river and protection of species including river dolphins.

Through this work we’ve helped achieve positive outcomes for wildlife as well, including increases in the populations of wild tigers in Nepal and India, and no rhinos being poached in Kenya for the first time in more than 20 years.

OUR 2021-22 PRIORITIES WILL INCLUDE

Through partnerships, We’ll develop plans to we’ll continue to build scale up work in at least UK-based projects two other international and programmes – both landscapes or seascapes land and sea – that to address nature, respond to the triple climate and sustainable challenge of feeding development a growing population, challenges. tackling climate change and restoring nature.

In the Amazon, we’ll We’ll launch our Land continue to build for Life programme partnerships and across southern Kenya work with communityand northern Tanzania, led initiatives to securing wildlife rehabilitate and restore habitats and increasing nature and biodiversity. benefits to local people.

GROWING SUPPORT

We’re growing support for our work by making WWF as widely-known as possible – and by creating more opportunities for our supporters to be involved in what we do; inspiring them to act with us and have an impact on our mission.

2020-21 TARGET

We were also delighted to welcome Game of Thrones actor Maisie Williams as WWF’s first global ambassador for climate and nature. In a flm for us, Maisie highlighted the importance of the Glasgow climate summit and encouraged everyone to Fight for Your World.

We’ll aim to raise more than £70 million in income to support our work, and to increase the number of people who support us to 1.5 million.

We’re incredibly grateful that despite the continuing challenges we all face, more people than ever have chosen to support our work to protect our one shared world. Thanks to your generosity, we exceeded our income target by 20%. And more than 500,000 of you became new supporters of us this year, increasing our two-year active supporter base total to more than 1.7 million.

2020-21 TARGET

We’ll be more visible and relevant to our supporters and the public, launching a mass engagement campaign to showcase our brand as a leading voice on nature and climate change.

This spring we ran a campaign to engage people with many different elements of our work. More than 160,000 people became new supporters during the three months of the campaign.

A notable achievement was our Christmas appeal – Land for Life – through which we raised a record £4.76 million, including a gift of £2 million from the government’s UK Aid Match. This will support vital community efforts in Kenya and Tanzania, to help people and wildlife coexist there. The appeal was supported by artist and writer Charlie Mackesy, who donated a drawing of an elephant which we featured on T-shirts that contributed to our best ever retail performance.

We launched it with a hard-hitting TV ad that formed a rallying cry for the campaign: it promoted our brand with the message that the fight for your world is no longer about saving one panda or one forest – it’s an act of survival. The campaign provided people with many opportunities to get involved – including using our My Footprint app. We inspired around 24,000 new users to download the app and complete challenges to help protect the planet – with a clear spike in downloads when our TV ad was first aired. The campaign also tied in with our new partnership with Botanica by Air Wick (see below).

As part of our work to engage and inspire support, we launched a suite of digital activities. These included TikTok WWF – our most engaging digital channel for young people, which has had 35,000 average monthly views – and My Footprint, an app that sets users challenges and provides tips on ways to reduce your environmental footprint.

While fundraising opportunities via major sporting and other events were very limited due to the pandemic, we had fantastic responses to new online events we piloted. For instance, more than 8,500 people took part in our ‘100 Miles in March’ Facebook challenge, raising an incredible £360,000 – the best response we’ve had from a single challenge event.

With Sky, we encouraged more than 250,000 people to become Ocean Heroes, making donations to our work. Some 4,000 of them wrote to their MP about the threats our oceans face; this led to greater discussion in Parliament about ocean recovery.

We developed new products including the Great Nature Picnic and a Climate Crisis Fund. We launched the latter alongside our Feeling the Heat report into the effects climate change is having on many species of plants and animals. The report gained over 600 pieces of media coverage on the day it was published.

Our community programmes and our seagrass and landscape restoration projects in the UK benefited from exceptional support from some of the leading foundations including the Garfield Weston Foundation, Quadrature Climate Fund and the National Lottery Climate Action Fund.

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We wrapped up the campaign with the launch of a flagship habitat restoration and regenerative farming project in Yorkshire – Wild Ingleborough. It’s a partnership with several other organisations, along with local farmers and communities.

wellbeing. We’ll identify pioneers of new low-carbon business solutions and support their growth. We’ll deliver programmes to support the transition from fossil fuels to renewables across Asia’s energy sector. And we’ll work together to unlock barriers to finance for companies so they can support a 1.5°C future and our planet’s recovery by helping to build a greener, fairer economy.

The campaign period saw ratings for our brand being ‘topical and relevant’ climb slightly, to 40%. Propensity to support us remained steady at 29%.

And in March we announced an ambitious global partnership with multinational consumer goods company Reckitt. For the next three years Reckitt will support us to protect freshwater ecosystems and help restore native wildflower habitats across the world. Conservation work funded by this new partnership has already started in two major rivers – the Ganges (India) and Tapajós (Brazil).

2020-21 TARGET

We’ll launch at least two new major strategic partnerships that deliver significant impact for our mission alongside a number of other mid-size new partnerships.

We also launched a collaboration with Reckitt brand ‘Botanica by Air Wick’ to restore wildflower habitats in several countries. Funding will help us restore 20 million square feet of wildflower habitat in the UK, working with landowners and partners at three local Rivers Trusts.

Our corporate partners help us extend the reach, scale and impact of our work. We need both to challenge and work - with global businesses to achieve an equitable, nature positive and carbon - neutral world.

As well as continuing to deliver and develop our existing strategic partnerships, in May we established the Climate Solutions Partnership – a five-year, global philanthropic collaboration between HSBC, the World Resources Institute and WWF. The finance sector is vital in helping to scale up innovative, impactful solutions to tackle climate change.

We launched a number of other corporate partnerships during the year including with Aviva, Carlsberg, Cushelle, Nomad Foods and TikTok. Our new three-year relationship with sustainability leaders in the finance sector, Aviva, will help to convince the industry to contribute to a low-carbon future. And Carlsberg is supporting our work to restore seagrass in UK waters.

Through the partnership we’ll support projects that use nature-based solutions across the world to protect and restore nature, tackle the climate emergency and enhance

2020-21 TARGET We’ll make the most of the opportunities with the release of our film with Sir David Attenborough.

There were more than 4,800 pieces of media coverage about the film. Audiences who were previously less engaged in our messages saw it as a wake-up call to act with urgency to save and rewild the planet and save ourselves. The Sun newspaper created its new Green Team initiative in response to the noise and attention around the film. And the governor of the Bank of England Andrew Bailey referred to the film as a powerful reminder of the need for sustained action.

In September we launched our landmark film, David Attenborough: A Life On Our Planet , which we co-produced with Silverback Films. The film is Sir David’s first-hand account of how he’s experienced humanity’s impact on the natural world. In it, he shares a message of hope for the future and solutions that will help us urgently heal our broken relationship with nature.

We also hosted a two-day virtual Changemakers’ Conference which connected 500 people aged 16-30, inspiring them to drive sustainable change. And we delivered more than 100 lessons in our live learning for primary and secondary schools around A Life on Our Planet , reaching more than 4,500 students.

The film has been hugely successful and influential – it has almost certainly had the biggest reach of any WWF project in recent years. It had the widest ever UK cinema release for a documentary, showing in more than 540 cinemas in the UK and Ireland. There were also hundreds of community screening events, and at least six million people watched it on Netflix in the first month alone.

In the month after the film was released, more people took out WWF memberships than in any other month in more than 10 years.

Perhaps the biggest buzz was created when the WWF team launched Sir David on social media for the first time, to help promote the film. The Instagram account set a Guinness World Record for the fastest time to reach a million followers (4 hours 44 minutes). There were 110 million views of the film content added to the account.

David Attenborough: A Life On Our Planet is streaming now on Netflix.

OUR 2021-22 PRIORITIES WILL INCLUDE

We’ll build and deliver on our existing strategic partnerships. And we’ll launch at least one new major strategic partnership to drive significant impact for our mission, alongside other mid-size partnerships.

We’ll be more visible and relevant to our supporters and the public, launching two integrated engagement campaigns across the year to showcase our brand as a leading voice on nature and climate change.

We’ll aim to raise more than £88 million in income to support our work, and to increase the number of people who support us to 1.8 million.

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OUR PEOPLE

We strive to be an inclusive and effective organisation that celebrates and respects diversity among the people, partners and communities with whom we work. Our success is down to the energy, commitment and skills of our colleagues and partners. The way in which we attract, recruit, develop, reward and recognise individuals is key to the delivery of our strategy.

Our Programme for Positive Change was created in response to Black Lives Matter 2020 and supports our zero tolerance of racism and all workplace discrimination. The programme addresses all aspects of diversity and inclusion and focuses on appreciating difference and challenging inequity. Our goal is that we can all be authentic in our workplace and to learn, contribute and challenge safely. Our focus is on equity in career progression and reward, with a determination to address the gender pay gap (see page 49) and to report and take action to close the ethnicity pay gap.

We are transforming our working models, systems and environment so we can bring greater structure to our work for higher, earlier impact. We are investing in our people and culture through leadership and management development programmes that will embed our global core values – courage, integrity, respect and collaboration – into all that we do.

The pandemic has brought us new challenges and opportunities. We have made health, wellbeing and employee engagement our top priorities. As we move into our hybrid working phase it is critical for us to balance the benefits of remote and home working with those of working collaboratively and productively in our workplace communities.

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COURAGE
INTEGRITY
RESPECT
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FINANCIAL REVIEW

INCOME

Total income for the year for the Group (comprising WWF-UK and WWF-UK (World Wide Fund For Nature) Trading Ltd) was £84.3m, compared with £80.8m in the previous year. The increase of £3.5m (4%) in overall income was due to increases totalling £7.7m in income from individuals, corporates and trusts, partly offset by reductions of £4.2m in other income streams.

MEMBERSHIP AND DONATIONS FROM INDIVIDUALS

OPERATING STATEMENT

OPERATING STATEMENT
	Year ended 30 June 2021 Year ended 30 June 2020 (Restated*)
	£m £m
Incoming resources excluding gifts in kind Gifts in kind Incoming resources Cost of raising funds	84.0 80.5 0.3 0.3
	84.3 80.8
	20.6 18.4
Net income available for charitable purposes	63.7 62.4
Expenditure on charitable activities
Creating a sustainable food system Averting dangerous climate change Restoring threatened habitats and species Growing support Strengthening our priority WWF partner ofces Building capacity in the network Loss on forward foreign currency contracts not hedged Gifts in kind attributable to charitable activities Net income before gain on investment assets Net gain on investment assets Net income Fair value movements on cash fow hedges Net increase in reserves	9.0 7.2 5.4 3.8 21.7 27.5 19.3 14.0 1.1 1.4 5.2 5.5 - 0.1 0.3 0.3
	62.0 59.8
	1.7 2.6 2.9 0.3
	4.6 2.9 - 0.1
	4.6 3.0

*Prior year charitable activities have been restated to reflect the reallocation of the Fight for your World goal.

Income from individuals increased by £0.6m from £42.2m to £42.8m. However, income in the prior year included more than £4m received in response to our two emergency appeals for the fires in the Amazon and in Australia. In the year of this report we received a further £0.6m mainly to support our appeal in response to further fires in the Amazon, meaning that in total over the two years nearly £4.7m was received as a result of the incredible public response to these terrible events. These funds have been applied towards the immediate responses to the fires, on landscape restoration and on work to help mitigate the impact of future fires. More details regarding our response to the 2020 fires in the Amazon are provided on page 24.

Excluding the emergency appeals, income from individuals increased by more than 10% from £38.2m to £42.2m. A major contribution to this increase was the very successful Christmas appeal, Land for Life, further details of which can be found on page 27. The number of active direct debit givers rose from 451,000 to 501,000 during the year.

CORPORATE DONATIONS AND INCOME

Income from our corporate partnerships increased by £4.5m from £10.4m to £14.9m. This mainly emanated from a number of new partnerships, including two new partnerships with Reckitt, a five-year global collaboration with HSBC and the World Resources Institute, as well as a three-year partnership with Aviva (further details of these are provided on page 28). These new agreements were in addition to continuing partnerships including those with Sky and Tesco.

CHARITABLE TRUSTS

Income from charitable trusts increased by £2.3m from £2.2m to £4.5m. This was largely attributable to donations received from the Quadrature Climate Fund and the Garfield Weston Foundation, focused on land restoration and seagrass projects in the UK.

OTHER INCOME

Although there was a drop of £4.2m in other income streams, £2.2m of this related to income from lottery promotions which reduced from £4.3m to £2.1m as a result of the timing of draws by People’s Postcode Lottery, which saw three draws in the year compared with an exceptional seven draws the previous year.

There was also a decrease of £1.6m (from £17.0m to £15.4m) in income from legacies, although the previous year benefited from a particularly large bequest of £4.2m.

A fall of £0.2m in investment income was attributable to the impact of the pandemic on interest rates and dividend income.

EXPENDITURE

The amount spent on raising funds increased from £18.4m to £20.6m. This reflects the increased investment we have made, particularly in online and social media advertising, which has enabled us to increase our direct debit supporter base, as noted above, by 50,000 during the year. This has helped to increase the income from individuals during the year and the increased supporter base will continue to benefit income in future years.

There was an increase of £2.2m (4%) in our charitable activity expenditure, from £59.8m to £62.0m, including the following movements:

• Creating a sustainable food system expenditure increased by £1.8m, which mainly relates to increased spend in relation to our partnership with HSBC focused on sustainable palm oil production in Asia, as well as increased spend on sustainable food production and consumption funded from our partnership with Tesco.

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• An increase of £1.6m in expenditure on Averting dangerous climate change was largely attributable to work on new projects funded by HSBC aimed at finding solutions to securing a 1.5°C future and landscape restoration projects funded by the Quadrature Climate Fund.

• There was a reduction of £5.8m in Restoring threatened habitats and species, which was partly due to the impact of the pandemic on the ability to carry out some field activities but also due to the end of incoming funding for a number of projects. This included funding of tiger conservation work by an exceptional bequest from Dr John Rimington (referred to in the 2018-19 annual report), the HSBC funding of the Yangtze freshwater programme, the Mondi Group funded responsible forestry programme and the Sky funding of Marine Protected Areas in Europe. Funding from HSBC and Sky has continued but focused on other priorities.

An increase of £5.3m in expenditure on Growing Support included funding of our spring brand campaign and the Sky Ocean Heroes campaign (see page 27 for further details). It also included WWF-UK contributions during the year to production costs for the Wild Isles TV series due to be broadcast by the BBC in 2023, as well as depreciation of the capitalised production costs of the film David Attenborough: A Life On Our Planet , which was released in September 2020.

BALANCE SHEET AND RESERVES

The net income for the year of £4.6m resulted in an increase in total reserves from £64.2m to £68.8m.

The increase in total reserves consisted of a decrease of £3.1m in unrestricted funds (to £40.2m), an increase of £7.2m in restricted funds (to £22.8m) and an increase of £0.5m in the value of endowments (to £5.8m).

The reduction in unrestricted funds comprised decreases in general reserves of £0.9m (see below) from £23.7m to £22.8m, and £2.2m in designated reserves (including unrestricted funds held as fixed assets) from £19.4m to £17.2m.

The decrease in designated reserves is detailed in Note 21 to the accounts below. The decrease of £0.9m in general reserves can be summarised as follows:

Reserves

----- Start of picture text -----
£m
----- End of picture text -----

	£m
General reserves at 1 July 2020 Net expenditure in unrestricted funds Transfer from restricted funds Decrease in designated reserve for fxed assets Decrease in designated reserve for the Living Planet Centre Increase in programmes designated reserve Decrease in designated reserve for Wild Isles Increase in designated reserve for investments General reserves at 30 June 2021	23.7 (3.4) 0.3 1.6 0.4 (0.3) 0.9 (0.4)
	22.8

We had budgeted to bring the level of reserves down to a little below the top of the range by the end of the year, but this was based on an income budget that was set during the early stages of the pandemic when there was a great deal of uncertainty regarding the impact of the pandemic on income. In the event, unrestricted income from individual giving and legacies in particular performed much better than had been assumed in the budget, added to which there have been significant investment gains. Although we have been able to apply some of this unbudgeted income to fund extra programmatic and public awareness work, the pandemic has continued to have some impact on activities during the year, added to which new work can take time to plan and implement. As a result, the level of general reserves continues to sit well above the top of the range – albeit somewhat lower than at the end of the prior year. However, we have expanded our plans for the following year and put in place a robust process to help ensure that we manage the general reserves to within the target range.

Fixed assets (including investments) increased by £1.3m and net current assets by £3.3m as a result of the net income for the year of £4.6m.

INVESTMENTS

WWF-UK’s investment policy is to maintain the real value of our investments and to maximise income by way of a diversified portfolio consistent with the trustees’ legal powers and duties. This is underpinned by our socially responsible investment policy, which promotes the principles of sustainable development and improvements to the environment and is designed to ensure there is no exposure to investments that may be inconsistent with our mission and objectives. A large range of potential investments are excluded on this basis, including any investments in the fossil fuel industry, the extractives industry or the aviation sector, while also taking into account positive socially responsible, environmental and governance investment criteria. All equity investments are screened to ensure the portfolio complies with our investment policy.

GOING CONCERN

The financial forecasts for the next three years project that the free reserves of the organisation will not go below the target range for free reserves and that the organisation will have sufficient cash and cash investments and reserves to continue to operate. The free reserves target range has been calculated on the basis of a thorough review of income vulnerability and of costs. Robust monitoring processes are in place to ensure that the organisation is able to react quickly to any downturn in income and the free reserves of the organisation are held in cash and liquid investments in order that these may be liquidated quickly in the event that they are required. Accordingly, the trustees are of the opinion that it is appropriate for the financial statements to be prepared on a going concern basis.

The WWF-UK reserves policy requires that general reserves are reviewed on at least an annual basis to ensure they are at an appropriate level and sufficient to protect programmatic expenditure in the short term from any sudden drop in income.

Applying the assumptions set out in the policy, we have recently reviewed the requirement for general reserves and decided to retain a range of between £12m and £16m (approximately 10 to 14 weeks of unrestricted funds expenditure).

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PRINCIPAL RISKS AND UNCERTAINTIES

The trustees are responsible for ensuring WWF-UK has a sound system of internal control to safeguard its assets and funds, and for ensuring its assets and funds are used only in furtherance of WWF-UK’s objectives. The system of internal control is intended to manage appropriately rather than eliminate risks and to give reasonable rather than absolute assurance.

The trustees exercise their responsibilities through their board meetings and the meetings of the committees of the board described on page 40. The system of internal control includes:

• Our FY22-FY24 strategy was approved by trustees and came into effect on 1 July 2021. The strategy covers the overall aims and objectives of the organisation and is used as a basis for annual planning and monthly progress reviews by the Executive Group and quarterly by trustees.

• Operating Model. This has been newly established to ensure clear governance and decision-making at the right levels and a greater focus on programme and project management excellence. This includes the establishment of Goal Boards to ensure all projects are focused on our strategic goals and decisions are made in line with the strategy. Among other responsibilities, Goal Boards review project reports every month, including budgets, risks, delivery and impact.

• Strategic Delivery Group, Policy and Performance steering group and For Your World steering group. These are forums that have been set up to streamline decision-making. Among other responsibilities, the groups ensure there is adequate assessment and escalation of risk and focus on delivery of the strategy.

• Annual performance targets and operating plans, with actual performance monitored every month against project plans.

• A continuing risk management programme. The top risk register is reviewed on a quarterly basis by the Executive Group and reported to the Audit Committee. At each quarterly review meeting, in addition to reviewing risks and their potential likelihood and impact, priority actions are identified. The operational risk registers are updated every quarter by each goal group and inform the top risk register. The top risks reported to the Executive Group and Audit Committee are set out (right), with the risks emanating from the Covid-19 pandemic considered as a separate risk although it has also had an impact on other risks.

• An internal audit programme with findings, progress reviews and management actions regularly reported to the Executive Group and the Audit Committee. Reporting includes internal audits of programme offices carried out by WWF International and WWF-US.

• A scheme of delegation from the trustees to the chief executive and thereon to managers exists within the organisation and serves to define the scope of authority delegated by the trustees and matters reserved to the board.

• Procedures to monitor and evaluate the effectiveness of expenditure on conservation programmes and the achievement of outputs and outcomes.

• An environmental management system to ensure we monitor and manage our own impact on the environment. The system is audited by an independent assessor. We are committed to transparency by publishing annually our performance against the targets we set ourselves.

Risk

Mitigation

• Establishment of a cross-organisational team of managers reporting into the Executive Group and responsible for: monitoring and ensuring staff wellbeing and robust IT systems and equipment for remote working; planning and ensuring a safe return to work in offices.

Covid-19 pandemic

Not being able to achieve our strategic objectives owing to financial, operational, delivery and people impacts of the pandemic.

• Review of objectives and activities in FY21 in light of the impact of the pandemic, and a review of the strategy for the next three years taking into account the opportunities and threats to the strategy given the changed world due to Covid-19.

• Close monitoring by trustees of the impact of the pandemic on the finances and strategy of the organisation.

• • All laptops have antivirus software and are managed centrally to deploy security updates.

• • Limited number of systems exposed to the internet, all filtered through firewall access control lists.

Cyber

Critical cyber attack could take down our systems, resulting in loss of sensitive data, GDPR breaches and/ or substantial business disruption, potential fines and reputational damage.

• Admin accounts are protected with complex passwords, multi-factor authentication, privileged identity management.

• Mandatory Info Sec and GDPR training for all staff with periodic security reminders and announcements.

• Data Protection Group established and GDPR policies and procedures adopted.

• • Robust high income and high growth income generation strategy portfolio approach.

Finance

Not being able to meet income targets or increasing costs, resulting in an impact on our ability to achieve our strategic objectives.

• Increased emphasis on supporter engagement to build long-term loyalty.

• Open and regular communications with our supporters.

• Monthly reporting on income and expenditure and quarterly review of projected outturns for the year.

• • Regular monitoring of supporter attrition and recruitment targets.

• Conducting integrated budgeting and planning.

• Quarterly forecasts to reassess financial position and make adjustments to plans accordingly.

• • Regular long-term financial planning to ensure the organisation’s longerterm plans are financially sustainable.

• Regular review of the general reserves target range to ensure it is set at an appropriate level in light of the assessed risk to the various income streams.

• Regular line management catch-ups with all staff and training for all people managers.

People

Employee wellbeing/ morale given impacts of pandemic, remote working.

morale given impacts • Investment in Learning and Development and increased capacity of of pandemic, remote HR team to provide specialist support, including Diversity, Equity and working. Inclusion (DE&I) and Organisation Development. Resourcing appropriately • Employee engagement project and ongoing DE&I surveys. to deliver our ambitious • Ongoing innovation in provision of mental health and wellbeing support strategy.

• Ongoing innovation in provision of mental health and wellbeing support and intervention; wellbeing focus on eco-anxiety and resilience supported by a strong network of Mental Health First Aiders.

• Innovative resource/skills planning, recruitment and effective deployment to deliver strategy.

• Resource review including recruiting key gap posts.

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• Roll-out of global values with localised behaviour frameworks; adherence to network standards.

Reputation

Critical and sudden impact on reputation • Global whistleblowing and escalation framework, and complaints policy. and brand leading to a • Thorough due diligence in respect of partners and suppliers we contract and significant and sharp work with. reduction in fundraising and audience engagement. • Progress in the review and improvement of the various operational and programmatic standards that are in place for the WWF network.

• Global whistleblowing and escalation framework, and complaints policy.

• Thorough due diligence in respect of partners and suppliers we contract and work with.

• Sign-off processes for external communications to ensure they are consistent with our brand and strategy.

• Safeguarding • A robust Environmental and Social Safeguarding Framework is being rolled out across the WWF network. This includes a safeguards screening tool, a

• Incidents could affect tiered mechanism for communities to raise complaints and grievances, and

• communities we work a global response protocol for escalating serious complaints. Mandatory

• with and colleagues training has been rolled out to all WWF staff and trustees. A global

• in WWF and partner safeguards unit is responsible for implementing and maintaining the

• organisations. safeguards framework.

• A WWF network Conservation Quality Committee (CQC), with representation from WWF-UK, reviews and signs off on high-risk projects and landscape safeguards plans.

• WWF-UK has a Safeguarding Committee with a safeguarding director and designated child safeguarding officer who are responsible for oversight of WWF-UK’s safeguarding framework. WWF-UK’s child safeguarding policies and processes have been updated in the last year following an advisory review by NSPCC and the governance framework strengthened. Two new trustees with safeguarding experience have been appointed to the board to increase the expertise in this area. For the conservation projects WWF-UK supports, safeguarding assessments are undertaken to ensure the views of local people are reflected in project planning, implementation and monitoring.

• Strategy • Regular communication with our key partners in the network to keep a watching brief on risks and issues, leveraging our network to develop

• There are many global mitigations and advocacy actions.

• risks that are difficult for WWF-UK to mitigate, • Regular review of WWF-UK portfolio versus strategic intent. including unpredictable • Influencer stakeholder mapping and relationship building with key strategic

• political contexts in a sectors and governments.

• number of countries where we fund priority work, and a lack of global ambition to address the biodiversity and climate crises.

• Influencer stakeholder mapping and relationship building with key strategic sectors and governments.

GOVERNANCE

STRUCTURE

WWF-UK is a charity registered with the Charity Commission for England and Wales (Registration No. 1081247) and the Office of the Scottish Charity Regulator (Registration No. SC039593). It is also a company limited by guarantee registered in England and Wales (Registration No. 04016725). It was founded in 1961 and was formerly known as the World Wildlife Fund. Its objects and powers are set out in its Memorandum and Articles of Association. The objects of the charity remain as follows:

• The promotion of conservation of the natural environment and the sustainable use of natural resources and ecological processes, to include without limitation, fauna and flora, water, soils and other natural resources.

• The promotion of education in nature conservation, the natural environment and the sustainable use of natural resources.

• The promotion and support of scientific and educational studies, research projects and publication of scientific and educational works.

WWF-UK is part of the WWF global environment network which is coordinated by WWF-World Wide Fund for Nature, a Swiss foundation, based in Gland, Switzerland. Sir Dave Lewis is ex officio a member of the board of WWF-World Wide Fund for Nature and Tanya Steele is a member of the WWF Network Executive Team. Stephen Hay is a member of the Audit Committee of WWF-World Wide Fund for Nature. Within the network we influence and support policy and programme priorities, working with our WWF colleagues worldwide to achieve our objectives. A large portion of our programmatic activity takes place overseas through local WWF offices and other partners to whom we provide funding. We adhere to the WWF network’s core standards and global values. In the UK, we run programmes alone or in partnership with funders and other complementary organisations. In addition, we undertake campaigning and advocacy activity to further our objectives. Details of transactions with related parties are included in Note 28 to the accounts.

WWF-UK’s commercial activities are undertaken by its wholly-owned trading subsidiary, WWF-UK (World Wide Fund for Nature) Trading Limited. All taxable profits are donated under Gift Aid to WWF-UK. WWF-UK (World Wide Fund for Nature) Trading Limited was incorporated as a company in 1966 to conduct trading activities in support of WWF-UK’s charitable objectives. The company is registered in England and Wales (Registration No. 00892812). The principal activities are the licensing of the WWF logo, lottery activity, retail activities and corporate sponsorships. Details of transactions between WWF-UK and its subsidiary are included in Notes 20 and 28 to the accounts.

Two other subsidiaries are currently non-operational: WWF Global Climate Action Lottery Limited and WWF Thriving Habitats and Species Lottery Limited.

TRUSTEES

The board of WWF-UK comprises up to 15 unpaid trustees, as listed on page 82 (who are also the directors and members of WWF-UK for the purposes of company law). The board is responsible for setting policy, agreeing strategy, oversight of risk management and controls, monitoring performance and approving major commitments based on advice from senior management, and the appointment of the chief executive. Day-to-day operations are delegated by the board to the chief executive, who leads the Executive Group.

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The Articles of Association of WWF-UK provide that trustees may be appointed for two periods of up to three years at a time extendable up to a maximum of nine years, although in practice trustees usually serve for a maximum of six years. The chair of the WWF-UK board is appointed for a six-year term of office. Dave Lewis was appointed as the new chair of the board with effect from June 2020.

Each of the trustees is required to disclose actual or potential conflicts of interest to the chair and company secretary for inclusion on the trustee register of interests. None of the trustees receive any remuneration for their work as a trustee, but may be reimbursed for reasonable expenses incurred in the course of their duties.

The board has four principal committees: the Programme Committee; the Finance and Business Committee; the Audit Committee; and the Nominations and Remuneration Committee. Membership of all these committees is detailed on page 82 of this report.

The Programme Committee advises the board of trustees on the current effectiveness and future strategic direction of WWF-UK’s global conservation programmes and advocacy and campaigns activities.

The Finance and Business Committee is responsible for providing advice and recommendations to the board on the financial management and strategic direction of the organisation, the monitoring of progress against targets and the oversight of the financial management and performance of the organisation. The committee has a sub-committee, the Investment (and Pensions) sub-committee, to assist its work principally around the organisation’s investments and pension provision.

The Audit Committee is responsible for exploring the significant risks to the organisation and evaluating the steps taken to minimise those risks including internal controls, risk management and compliance reporting (including safeguarding). It considers and evaluates the work of the internal and external auditors.

The Nominations and Remuneration Committee is responsible for undertaking the recruitment and selection process for trustees and for recommending new trustees to the board for approval and the remuneration of senior executives of WWF-UK.

A detailed skills and diversity audit on the board was conducted in August 2020. This exercise informed the recruitment of three new trustees to the board. The positions were widely and openly advertised and searches carried out among a range of networks in order to attract a diverse range of candidates. The new trustees have been provided with a mentor from the existing board to assist them in the transition to their new role. Each new trustee attends a series of induction sessions, where they learn about the organisation and the role and responsibilities of a trustee and meet the chief executive and members of the Executive Group. The trustee also receives an induction pack including Charity Commission guidance on The Essential Trustee; WWF-UK’s governing documents; and the most recent annual report and financial statements.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees (who are also directors of WWF-UK for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and group for that period. In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them 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; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the charity’s constitution.

They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

• there is no relevant audit information of which the charitable company’s auditor is unaware; and

• the trustees have taken all reasonable steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

The trustees are also 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.

Members of the charity guarantee to contribute an amount not exceeding £10 to the assets of the charity in the event of winding up. The total number of such guarantees at 30 June 2021 was 13. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

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S172(1) STATEMENT

The trustees are required to outline how they have met the requirements of s172(1) of the Companies Act 2006 in acting to promote the success of the charity to achieve its charitable purposes. This includes having regard to the likely long-term consequences of its decisions, interests of its stakeholders, employees, the impact of its operations on the wider community and the environment and the desirability of the charity maintaining a reputation for high standards of business conduct.

WWF-UK recognises it cannot achieve its mission on its own. Collaboration and working in partnership with its stakeholders are essential to tackle the triple challenges of meeting the dietary and other needs of up to 10 billion people, keeping global temperature rise below 1.5°C and reversing biodiversity loss. We consider all our actions against these long-term strategic goals as well as our more immediate three-year strategy.

Our supporters, including members of the public, donors, philanthropists and corporate partners, enable us to raise the funds we need to deliver our critical work. We also work closely with our suppliers to ensure that as an organisation we live up to the environmental principles we promote. We would not be able to achieve our mission without our dedicated staff. We set out below how WWF-UK engages with its different stakeholders, listens to their views and takes into account their interests in order to better achieve its charitable objectives.

EMPLOYEES

At WWF-UK, we know the delivery of our mission relies on our talented and motivated people. Our performance and development review process (PDR) is designed to underpin our approach to work allocation, performance and development, ensuring all our people are set and measured against clear objectives. Work is scheduled in line with our strategic goals and outcomes, and our ways of working are aligned with our core values and designed to create an inclusive culture. Individuals and line managers work together to ensure that career aspirations and development needs are identified and addressed.

The trustees and Executive Group encourage widespread consultation and exchange of information at all levels of the organisation. We have an active and influential Employee Forum which ensures our compliance with the requirements of the Information and Consultation (I&C) Regulations 2004.

In addition, the Executive Group leads frequent all-staff sessions to inform staff about our work, initiatives and planned changes. We conduct regular staff surveys on relevant subjects, such as remote working during the coronavirus pandemic and our approach to improving diversity and inclusion to gather staff views. We are committed to measuring employee engagement and building and delivering on action plans to respond to employee feedback. During the various levels of Covid restrictions, staff welfare and business continuity were priorities. Managers and HR worked closely together to establish what equipment and support staff needed to work remotely, provided reassurance around flexible working arrangements, set guidelines for line managers and supported staff wellbeing.

At WWF-UK we value diversity and are committed to equity and inclusion. We understand the value of an inclusive approach in which all colleagues can learn, contribute and challenge safely, and we recognise the value that different perspectives bring to the work we do in the UK, and across the world as part of our global network.

SUPPLIERS

WWF-UK’s procurement team works closely with key suppliers to ensure that supplies meet objectives and achieve good value for money while also fulfilling environmental and ethical sourcing practices. WWF-UK has initiated work to align our procurement to the ISO20400 standard for sustainable procurement and initial steps include creation of a sustainable procurement questionnaire. This is used for sourcing our high value contracts, to assess the sustainability credentials and solutions proposed by the suppliers we engage.

The questionnaire is additional to an eco-questionnaire that is used to assess the products we purchase; it evaluates the supplier organisation as a whole, not just the delivery of goods or services for WWF, and thus offers a holistic and responsible approach to procurement. The procurement team continues its efforts to reduce the cost of supply, develop the diversity and quality of our supply solutions and eliminate products and services from our supply chain that may be environmentally detrimental.

CORPORATE PARTNERSHIPS AND PHILANTHROPIC DONORS

Building strong relationships and frequent communication is key to the success of our corporate partnerships. We create formal governance and decision-making structures and schedule regular meetings to allow for ongoing review of progress, feedback on partnership performance, and to provide a forum for discussing current and emerging issues.

We regularly conduct partnership reviews, often through third party independent support, to stand back and assess the progress of our partnerships, identify challenges and opportunities, and ensure our partnerships are delivering the impact we need and expect. We collaborate with our corporate partners to share insight about their customers and how they can engage them further in actions for environmental issues, through the ongoing research WWF does with consumers. Private events/ opportunities are also held for philanthropic donors to speak or meet with key WWF-UK staff to ask questions and discuss WWF’s work. We are pleased to say that despite the pandemic we managed to run many virtual major events across the year.

Information is published in the IATI registry on the grants we receive from public sector donors.

SUPPORTERS

Supporters are at the heart of our work and we regularly ask them for feedback on our work and the services we provide, to continually improve what we do. Supporter-facing teams continuously collect complaints, criticisms and compliments from supporters, and pass this feedback on to colleagues to improve our services and our fundraising campaigns.

Surveys and workshops are frequently conducted with our supporters to understand their motivations, feedback on services we provide, and help develop new ideas. For example, we conducted interviews with legacy supporters to understand how best to improve their experience with WWF. We seek feedback on our campaign communications to make sure they are compelling and relevant for our supporters. We also regularly test new ideas and receive feedback from supporters on our fundraising products, so that we can keep growing and optimising our portfolio in a way that inspires our supporters.

To ensure our supporters are empowered, use their talents and are supported, the movement building team has developed principles and ways of working that ensure each campaign we deliver provides space for new and existing supporters to engage in the most appropriate way.

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RECIPIENTS OF OUR FUNDING

WWF-UK is in regular communication with colleagues across our WWF network partner offices, coordinated through regional teams in Conservation Programmes. We have signed, or are in the process of signing, Partnership Agreements with WWF-Brazil, Colombia, Kenya, India and China, where we hold ourselves against a set of mutually agreed partnership principles which include trust, equity, shared goals, risks and accountability.

LOCAL COMMUNITIES IMPACTED BY OUR CONSERVATION WORK

A stronger framework for community involvement and safeguarding in our conservation work has been implemented across the whole WWF network. This includes a safeguards screening tool to identify risks and promote community engagement, a tiered mechanism for communities to raise complaints and grievances, and a global response protocol for escalating serious complaints. This is coupled with staff training, capacity building and strengthened guidance, including guidance on working with indigenous people.

In order to embed this framework into the day-to-day approaches of all WWF offices, we have developed a thorough training course that challenges teams to give more time to planning and implementing projects and programmes explicitly in partnership with local communities. Recent training involved colleagues from 10 Asian countries, who plan to train and support colleagues within their offices and the local organisations with whom they work. A programme of further training in Asia, Africa and the UK is planned for the autumn.

Recognising that improving our practice takes time, WWF-UK has set aside additional funds for direct support to other WWF offices.

OTHER NGOS WITH WHICH WWF-UK WORKS

ENVIRONMENTAL MANAGEMENT

In carrying out our mission to safeguard the natural world by building a future in which people and nature thrive together, we seek to minimise the environmental impact of our activities. As an environmental charity, it’s vital to us that we reduce these impacts to a minimum. To achieve this, we have an Environmental Management System in place, and maintain certification to ISO 14001 – an internationally recognised and independently audited environmental standard that is awarded only after rigorous appraisal. Our certification recognises a commitment to environmental excellence and involves a process of continuous monitoring and targeted improvement.

Our largest impacts relate to business travel, producing our communications and fundraising materials, and electricity consumption in our offices. Some of these were significantly reduced as a result of the pandemic.

To manage our travel, we have a Sustainable Travel Policy and a carbon budgeting and tracking process for air travel. Our Paper, Timber and Print Purchasing Policy stipulates criteria for sustainable paper and timber products and for the printing process. We closely monitor all paper and timber products purchased by WWF-UK. We monitor our electricity use in all office locations, and compare the energy used at the Living Planet Centre to the Better Building Partnership good practice benchmark for offices. Other environmental impacts we target, monitor and work to improve include procurement, single-use plastics, water, waste and recycling.

We have a set of detailed environmental goals which include a science-based target consistent with a 1.5°C level of global warming, to reduce our carbon emissions from all activities by 46.2% by 2030, using the year ended 30 June 2019 as a baseline. We have also put in place processes to ensure no avoidable single-use plastic is used in our products, operations and supply chain.

You can find our full annual environmental report, environmental policy and environmental goals on our website.

WWF-UK is a leading member of various coalitions that work closely together on policy, advocacy and campaigning in and beyond the UK.

The Climate Coalition brings together 140 organisations of all sizes, in all parts of the UK, to campaign on engaging ever more people in Britain to raise their voices on climate action.

Greener UK convenes 13 major environmental organisations to campaign on stronger wildlife and nature laws as we leave the EU.

The Wildlife and Countryside LINK brings together 57 organisations in the UK to work for the protection of nature.

The Bond network connects 400 UK-based organisations with a worldwide presence, working on international development, including the interconnections between protecting the environment and supporting sustainable development.

Beyond the UK, the WWF network also works as a core part of the Climate Action Network (CAN) – a worldwide network of over 1,300 NGOs in more than 130 countries. In the UK, WWF is part of CAN-UK, the new UK node of CAN.

In all these cases, WWF is a leading voice in forming, shaping, resourcing and delivering policy, advocacy and campaigning, in collaboration with many others, to make us more than the sum of our parts. All these coalitions work hard to evaluate and learn from our work, and ensure we continue to develop and grow and become more effective on these critical issues.

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STREAMLINED ENERGY AND CARBON REPORTING

The following data has been externally verified by EnviroSense Consulting Ltd.

The FY21 (July 2020–June 2021) Environmental Report will be available from November 2021. WWF-UK does not have Scope 1 emissions.

----- Start of picture text -----
Current performance Past performance
FY21 (2020-21) FY20 (2019-20)
Energy consumption used to England – 558,913 England – 530,937
calculate emissions – electricity
Scotland – 7,912 Scotland – 18,327
(kWh)
Wales – 5,079 Wales – 10,960
Emissions from combustion of England – 118.7 England – 123.8
purchased electricity (Scope 2)
Scotland – 1.7 Scotland – 4.3
(tonnes CO2e)
Wales – 1.1 Wales – 2.6
Total gross Scope 2 emissions
121 131
(tonnes CO2e)
Intensity ratio for the above
gross emissions (Scope 2)
0.31 0.38
Intensity ratio: tonnes CO2e
per full-time equivalent staff
Emissions from reimbursed
business travel in rental cars
1.3 6.7
or employee-owned vehicles
(Scope 3) (tonnes CO2e )
Emissions from other business
travel including air, rail and 0.5 173
road (Scope 3) (tonnes CO2e)
Methodology: GHG Reporting Protocol – Corporate Standard.
Electricity emissions reduction • The reduction in business travel was the result of the impact
actions taken in FY21: on travel of the Covid-19 pandemic.
• Upgraded LED lighting in the Scotland office.
• Review of monthly building management system and meter
readings, enabling areas of high use to be identified and
settings altered in all three offices.
• Solar panels in England serviced and repaired, reducing
demand on mains.
----- End of picture text -----

CHARITY GOVERNANCE CODE

WWF-UK continues to adhere to the Charity Governance Code. When the Code was updated in 2020, we reviewed if any changes needed to be made to our practices. The changes to the Integrity principle are being addressed through the roll-out of WWF network values, as well as planned improvements to our safeguarding policies, processes and governance. The changes to the Equality, Diversity and Inclusion principle are being addressed through our ongoing Programme for Positive Change.

In 2021 we commissioned an independent Board Effectiveness Review against the standards set out in the Charity Governance Code. The findings will be reported to the board in October 2021. Governance is also reviewed on an annual basis as part of the end of year assurance process.

GRANT-MAKING POLICY

WWF-UK makes grants in line with its charitable and strategic objectives, to partners in the WWF network and other conservation organisations. We assess partners and programmes for their ability to deliver outcomes and uphold our social and environmental values. Many grants are made to longrunning conservation programmes, the outcomes of which are reviewed at regular periods. All grants are subject to specific agreements with partners which define the policies, standards and practices they are required to adhere to, including social policies and safeguards.

All of our WWF network offices have sub-grantees who co-implement parts of many projects and programmes. Over the last year, WWF has revised its due diligence process to standardise and document the roll-out of – and training in – WWF’s policies, standards and practices. In this way we seek to ensure that the whole funding chain is adhering to WWF good practices.

PUBLIC BENEFIT

WWF-UK promotes education in nature conservation, the natural environment and the sustainable use of natural resources and ecological processes. We strive to conserve fauna and flora, water, soil and other natural resources for the public benefit. We campaign to limit climate change to conserve the natural environment for the public benefit. We promote and support scientific and educational studies, research and projects and publication of scientific and educational works. Our beneficiaries are the general public. Much of our scientific research, policy and advocacy work has been able to continue despite the Covid-19 pandemic, although some field conservation work both in the UK and overseas has inevitably been impacted by international and national travel restrictions.

Our headquarters, the Living Planet Centre, is one of the greenest buildings in the UK and its education and visitor centre enables WWF-UK to educate, inspire, influence and engage effectively in a building from which we can reach out to the public, including policymakers, children and business leaders. During the Covid-19 pandemic, we have adapted much of our educational work to be delivered online to support teachers and families and most of our campaigning work has also taken place virtually.

In continuing to review our charitable objectives and as part of planning our future programme of work, the trustees of WWF-UK have taken account of the Charity Commission’s published guidance on the Public Benefit requirement under the Charities Act 2011 and have considered how our planned programme of work will consistently contribute to the charity’s aims and objectives for the benefit of the general public.

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46 TRUSTEES’ REPORT

FUNDRAISING STANDARDS AND APPROACH

We continue to be members of the Chartered Institute of Fundraising (IOF) and the Fundraising Regulator, and champion and adhere to the excellent standards set out by the Code of Fundraising in all areas of our fundraising. We are committed to the Fundraising Regulator’s Fundraising Promise, and continually strive to ensure our fundraising is open, honest, legal and respectful.

In order to raise funds and awareness of our work cost-effectively and allow supporters to get involved in ways that suit them, we rely on a variety of different activities, including: fundraising face-to-face and over the telephone, through letters and emails, and by television, digital and press advertising; from legacies, events and community fundraising; and from philanthropists, trusts, foundations, public sector bodies and corporate partners.

We work with professional fundraising agency partners, along with our in-house fundraising teams, to speak to potential and existing supporters, both face-to-face and over the telephone. As a result of these conversations, many are inspired to start a regular committed gift, generating significant income to support our conservation work. We require any professional fundraising agencies working on our behalf to adhere to our fundraising standards and this is enshrined in our contracts with them.

We also work with a number of strategic corporate partners who support our work through financial and non-financial donations, as well as employee and customer fundraising. Our corporate partnerships are subject to due diligence and review by the Policy and Performance steering group.

Monitoring of fundraising activities and protecting people in vulnerable circumstances

We have processes in place, endorsed by our board of trustees, which govern our fundraising activities. In addition we have comprehensive compliance and quality control frameworks that we use to monitor adherence to the General Data Protection Regulations (GDPR), the behaviour of agencies, their staff and our in-house teams and fundraisers, and the conversations they have on our behalf, with both supporters and members of the public. This includes thorough due diligence and audit, regular training sessions, shadowing and mystery shopping, site visits, call listening, quality control calls, and monitoring of outcomes, complaints and remedial actions. Our aim is to ensure that our supporters feel informed, genuinely thanked and inspired by all interaction we have with them.

We are committed to ensuring that we treat the public sensitively and respectfully at all times, taking special care to protect people who may find themselves in vulnerable circumstances. Our fundraiser training, delivered to both professional and in-house fundraisers, contains a section designed to ensure they are aware of the signs of potential vulnerability, as well as the steps we expect them to take on the occasions they do have concerns. This approach is in line with the requirements of the Charities (Protection and Social Investment) Act 2016, the IOF’s Treating Donors Fairly Guidance, and the Direct Marketing Association’s Guidelines for Dealing with Vulnerable Consumers.

REMUNERATION POLICY

The Nominations and Remuneration Committee of our board of trustees determines the chief executive’s salary and reviews this each year, in line with the principles set for the organisation’s pay policy. This committee also approves annual recommendations made by the chief executive on any changes to the executive directors’ salaries and benefits. The chief executive attends the Committee, but the chief executive is not present when their own remuneration is being discussed.

Our approach to remuneration across the organisation is designed to ensure we can attract and retain the talented and motivated people we need to deliver our mission. We seek to promote meritocracy, recognising strong capability and consistent achievement against objectives. We aim to pay competitively in the not-for-profit sector, within the context of affordability, using external salary data to benchmark our salaries against other charities and, where relevant, other organisations from which we recruit. Our total reward package, which includes pension and other benefits, is competitive and is reviewed regularly. Our organisation is accredited by the Living Wage Foundation and we are committed to never paying our employees less than the real living wage.

GENDER PAY GAP

WWF-UK first published its Gender Pay Gap data in 2018 for the year 2017-18 and reported a median gender pay gap of 15.4%. This figure rose to 16.8% for 2018-19. Our Gender Pay Gap for 2020, reported in April 2021, showed a decrease in the median pay gap to 12.2%.

In preparation for the requirement to report on the various ethnicity pay gaps we have started to improve the collection and quality of our diversity data so that we can track and monitor pay across the various race groupings and consider intersectional data too. Addressing all pay gaps is one of our key metrics for our organisational performance and we are committed to select, recruit, reward and develop all staff on equal terms, taking positive action as needed to achieve equity.

INTERNAL AUDIT STATEMENT

Our internal audit team has assessed the overall adequacy and effectiveness of the organisation’s framework of governance, risk management and internal controls for the financial year as providing reasonable assurance to support achievement of the organisation’s objectives. While this is a generally positive statement, WWF-UK has had a challenging year as a growing organisation, particularly dealing with the implications of Covid-19 and an increased workload for staff. This has resulted in some specific areas of weaknesses identified within the internal control environment, which are being addressed by management. Risk management processes have improved during the financial year in question, with all risk registers now being reported against, and aligned to, WWF-UK’s strategic objectives. There are several areas of risk identified that will require ongoing review during the coming financial year.

Complaints

In 2021, we rolled out a new complaints policy and process, including training staff on the importance of managing and escalating complaints appropriately. For the financial year ending 30 June 2021, we received 21 complaints (2020: 111) from members of the public about our fundraising activities.

We have chosen to report those where: we were approached by someone to raise a concern about our fundraising activities; there has been a potential breach or a lapse in standards in relation to our fundraising; an investigation has been instigated; or where we have received an expression of dissatisfaction relating to our use of specific fundraising methods. We have nothing to report in respect of failures and/or breaches, which we have taken to include complaints or breaches referred to, and upheld by, either the Information Commissioner’s Office or the Fundraising Regulator.

The trustees’ report and strategic report were approved by the board of trustees on 27 October 2021 and were signed on their behalf by:

Dave Lewis Chair of the board of trustees

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48 TRUSTEES’ REPORT

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF WWF-UK

OPINION

We have audited the financial statements of WWF-UK (‘the charitable company’) and its subsidiaries (‘the group’) for the year ended 30 June 2021 which comprise Group Statement of Financial Activities, the Group and Company Balance Sheets, the Group Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group’s and the charitable company’s affairs as at 30 June 2021 and of the group’s income and expenditure, 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 and the Charities and Trustee Investment (Scotland) Act 2005 and Regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (amended).

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 requirements. 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 trusteesʼ 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 events or conditions that, individually or collectively, may cast significant doubt on the charitable companyʼs or the group’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

OTHER INFORMATION

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this 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 our audit:

• the information given in the trustees’ report, which includes the directors’ report and the strategic 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 strategic report and the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

• adequate and proper accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trusteesʼ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the trustees’ responsibilities statement [set out on page 41], the trustees (who are also the directors of the charitable company for the purposes of company law) 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 trustees determine is 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 trustees are responsible for assessing the charitable company’s 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 trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

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 auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement 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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities 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.

EXTENT TO WHICH THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 and The Charities and Trustee Investment (Scotland) Act 2005, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

USE OF OUR REPORT

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable 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 charitable company and the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Nicola May Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor London 3 December 2021

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), anti-fraud, bribery and corruption legislation, taxation legislation and employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income, end use of funds including funds granted to partner organisations and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, internal audit, and the Audit Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, analytical review and sample testing of income, sample testing and review of grants made to partner organisations, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

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CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

(incorporating income and expenditure account) for the year ended 30 June 2021

	Unrestricted funds Restricted and endowment funds Total 2021 Total 2020
Notes	£’000 £’000 £’000 £’000
Income and endowments from:
Donations and legacies
Membership and donations from individuals Corporate donations Charitable trusts Legacies Gifts in kind 25	28,359 14,451 42,810 42,181 1,003 9,766 10,769 7,434 162 4,361 4,523 2,185 14,540 879 15,419 16,956 342 - 342 290
	44,406 29,457 73,863 69,046
Charitable activities
Aid agencies and government grants 4 Corporate income Income from non-governmental organisations	14 696 710 780 - 418 418 1,089 341 1,486 1,827 1,929
	355 2,600 2,955 3,798
Other trading activities
Corporate income Lottery promotions Other trading income	537 3,161 3,698 1,919 2,055 - 2,055 4,317 759 429 1,188 922
	3,351 3,590 6,941 7,158
Investments 3	599 1 600 841
Total income Expenditure on:	48,711 35,648 84,359 80,843
Raising funds
Costs of raising voluntary income Investment management fees Total expenditure on raising funds 6 Net income available for charitable activities	15,188 5,281 20,469 18,252 163 46 209 190
	15,351 5,327 20,678 18,442
	33,360 30,321 63,681 62,401

Consolidated statement of financial activities for the year ended 30 June 2021 continued

----- Start of picture text -----
Restricted and
Unrestricted endowment Total Total
funds funds 2021 2020
Notes £’000 £’000 £’000 £’000
Total expenditure on raising funds brought forward 6 15,351 5,327 20,678 18,442
Charitable activities
----- End of picture text -----

Charitable activities
Charitable activities 5,6 Gifts in kind 25 Total expenditure on charitable activities Total expenditure Net income/(expenditure) before gains on investments Net gains on investments Net income/(expenditure) Transfers between funds Fair value movements on cash fow hedges Net movement in funds Total funds brought forward 21 Total funds carried forward 21	38,738 22,855 61,593 59,584 342 - 342 254
	39,080 22,855 61,935 59,838
	54,431 28,182 82,613 78,280
	(5,720) 7,466 1,746 2,563 2,263 644 2,907 301
	(3,457) 8,110 4,653 2,864 319 (319) - - 19 - 19 87
	(3,119) 7,791 4,672 2,951 43,310 20,864 64,174 61,223
	40,191 28,655 68,846 64,174

There are no recognised gains or losses in the current or preceding financial year other than as shown in the statement of financial activities.

All activities derive from continuing operations.

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CONSOLIDATED AND CHARITY

BALANCE SHEET AS AT 30 JUNE 2021

BALANCE SHEET	AS AT 30 JUNE 2021
	Group 2021 Group 2020 Charity 2021 Charity 2020
Notes	£’000 £’000 £’000 £’000
Fixed assets Intangible assets 11 Tangible assets 12 Investments 13 Total fxed assets	1,442 2,903 1,442 2,903 13,818 14,571 13,818 14,571 26,964 23,470 26,964 23,470
	42,224 40,944 42,224 40,944
Current assets
Stocks 14 Debtors 15 Investments 16 Cash at bank and in hand Total current assets	794 412 500 258 6,377 5,979 5,666 5,507 3,336 3,328 3,336 3,328 26,461 24,055 25,509 21,759
	36,968 33,774 35,011 30,852
Current liabilities
Creditors: Amounts falling due within one year 17	(10,346) (10,544) (8,395) (7,628)
Net current assets	26,622 23,230 26,616 23,224
Net assets
	68,846 64,174 68,840 64,168
The funds of the charity:
Unrestricted funds: General reserves 21 Hedge reserve 21 Designated reserves 21 Total unrestricted funds Endowment funds 21 Restricted funds 21 Total funds	22,813 23,718 22,807 23,712 222 203 222 203 17,156 19,389 17,156 19,389
	40,191 43,310 40,185 43,304 5,849 5,251 5,849 5,251 22,806 15,613 22,806 15,613
	68,846 64,174 68,840 64,168

The net movement in funds for the financial year dealt with in the financial statements of the parent charity was £4,672,000 (2020: £2,978,000).

The financial statements were approved by the trustees on 27 October 2021 and signed on their behalf by:

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2021

----- Start of picture text -----
2021 2020
£’000 £’000
Cash flows from operating activities:
Net cash provided by operating activities 2,123 6,484
Cash flows from investing activities:
Dividends and interest from investments 600 841
Proceeds from the sale of intangible assets 963 -
Purchase of intangible assets (390) (490)
Purchase of property, plant and equipment (295) (91)
Proceeds from sale of investments 3,199 8,908
Purchase of investments (3,650) (9,777)
(Increase)/decrease in cash held for fixed asset investments (136) 228
(Increase)/decrease in cash held for current asset investments (8) 8,544
Net cash provided by investing activities 283 8,163
Change in cash and cash equivalents in the reporting period 2,406 14,647
Cash and cash equivalents at the beginning of the reporting period 24,055 9,408
Cash and cash equivalents at the end of the reporting period 26,461 24,055
Reconciliation of net income to the net cash flow from operating activities
Net income for the reporting period (as per the statement of financial activities) 4,653 2,864
Depreciation charges 1,679 965
Gains on investments (2,907) (301)
Dividends and interest from investments (600) (841)
Loss on the disposal of fixed assets - 109
Non-cash items related to forward foreign currency contracts - 106
(Increase)/decrease in stocks (382) 237
(Increase)/decrease in debtors (367) 2,356
Increase in creditors 47 989
Net cash provided by operating activities 2,123 6,484
Analysis of cash and cash equivalents
Cash in hand 26,461 24,055
Total cash and cash equivalents 26,461 24,055
----- End of picture text -----

Dave Lewis Chair of the board of trustees

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NOTES TO THE ACCOUNTS

• Restricted funds

These funds have been raised by WWF-UK for particular restricted purposes and include funds with specific project-related restrictions imposed by the donors as well as funds where the donor has specified a broad restriction, but not the specific projects to be funded. WWF-UK acts as a custodian of these funds and consequently they are not available for general use.

• Endowment funds

These funds are held permanently by the trustees on behalf of WWF-UK and provide income that can be used for any of the charity’s purposes.

1. CHARITY INFORMATION

Income

WWF-UK is a registered charity (No. 1081247 and SC039593) which is incorporated and domiciled in the UK. The address of the registered office is The Living Planet Centre, Rufford House, Brewery Road, Woking, Surrey GU21 4LL.

2. ACCOUNTING POLICIES

Basis of preparation

The accounts have been prepared under the historical cost convention, with the exception of listed investments and forward currency contracts which are included on a market value basis. The accounts have been prepared in accordance with the Companies Act 2006, Accounting and Reporting by Charities: Statement of Recommended Practice applicable in the UK and Republic of Ireland (FRS 102) (‘the SORP’), FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (‘FRS 102’), the Charities Accounts (Scotland) Regulations 2006 and the Charities and Trustee Investment (Scotland) Act 2005 and applicable United Kingdom accounting standards.

The particular accounting policies adopted by the trustees are described below.

WWF-UK constitutes a public benefit entity as defined by FRS 102 and detailed on page 47.

Going concern

As explained in the Trustees’ Report, as per financial and cash flow projections, WWF-UK has sufficient cash and cash investments and reserves to continue to operate in all foreseeable circumstances. Accordingly, the trustees have a reasonable expectation that the charity has adequate resources and are of the view that there are no material uncertainties about the charity’s ability to continue in operational existence for the foreseeable future. The accounts have therefore been prepared on the basis that the charity is a going concern.

Basis of consolidation

The statement of financial activities (SOFA) and balance sheet consolidate the financial statements of the charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

No separate SOFA has been presented for the charity alone, as permitted by Section 408 of the Companies Act 2006. The charity has taken advantage of the exemptions in FRS 102 from the requirements to present a charity only Cash Flow Statement and certain disclosures about the charity’s financial instruments.

Fund accounting

• Unrestricted funds

These funds can be used at trustees’ discretion in furtherance of the charity’s objectives.

• Designated funds

Designated funds comprise unrestricted funds that have been set aside for particular purposes by the trustees. The aim and use for each designated fund is set out in the notes to the financial statements.

Income is recognised when the charity has entitlement; receipt is probable; and the amount can be reliably measured. Where income is received in advance of providing goods or services, it is deferred until the charity becomes entitled to the income.

Membership income and other donations from individuals and income from lotteries are recognised when received.

Legacies: residuary legacy income is recognised when received or, if earlier, when estate accounts are agreed. Pecuniary legacy income is recognised when notified.

Lottery income: WWF-UK received proceeds of lotteries held by People’s Postcode Lottery (PPL). WWF-UK has no ability to alter the price of tickets, determine the prizes or reduce the management fee. As such, PPL is treated as acting as the principal. Net proceeds due to WWF-UK are recognised under lottery income in the statement of financial activities. The analysis of the proceeds is detailed in Note 32.

WWF-UK also operates a separate weekly lottery. Income received in respect of these lotteries is recognised when the draws are made. Income received in advance for future lottery draws is deferred until the draw takes place.

Other income, including grant income, is recognised on an accruals basis when the charity becomes entitled to the resource.

Income from investments is included gross of tax and fees.

Gifts in kind are included at current market value where their value is ascertainable and material, with an adjustment based on the estimated worth to the charity.

Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to a particular heading, they have been allocated to activities on a basis consistent with the use of the resource.

The analysis of charitable activities in Note 6 reflects the priority activities set out in the strategy.

Costs of raising funds are primarily those incurred in seeking voluntary contributions and other income.

In line with WWF-UK’s strategic objectives, grants are made to partners in the WWF network and to other conservation organisations. These grants are performance-related, with mid-term reviews. Although future years funding is indicated, the binding commitment is for annual funding only. The full commitment of the grant is stated in Note 26.

Governance costs relate to compliance with constitutional and statutory requirements and have been included as support costs together with management and finance costs, HR costs, IT costs and premises and facilities costs.

Foreign currencies

Transactions in foreign currencies are recorded either at the rate of exchange on the date of the transaction or, in the case of expenditure at the rate at which corresponding foreign currency income was recorded. Foreign currency balances have been translated at the rates of exchange ruling at the balance sheet date.

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Financial instruments

WWF-UK has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at the present value of future cash flows (amortised cost). Financial assets held at amortised cost comprise current asset investments, cash at bank and in hand, and the group’s debtors, excluding prepayments. Financial liabilities held at amortised cost comprise the group’s creditors excluding deferred income. No discounting has been applied to these financial instruments on the basis that the periods over which amounts will be settled are such that any discounting would be immaterial.

Investments, including bonds and cash held as part of the investment portfolio, are held at fair value at the Balance Sheet date, with gains and losses being recognised within income and expenditure.

Investments in subsidiary undertakings are held at cost less impairment.

WWF-UK enters into forward foreign currency contracts that do not qualify as basic financial instruments. These are held at fair value at the Balance Sheet date. Where hedging relationships are documented, they are accounted for using hedge accounting. Where the hedging relationship cannot be clearly documented, changes in fair value are recorded against the planned expenditure for the purchased currency.

Hedge accounting

WWF-UK enters into forward foreign currency contracts to hedge currency exposure on certain future expenditure. These are designated as hedging instruments in cash flow hedges. At the inception of the hedge relationship, the entity documents the economic relationship between the hedging instrument and the hedged item, along with its risk management objectives and clear identification of the risk in the item that is being hedged by the hedging instrument. Furthermore, at the inception of the hedge the Group determines and documents causes for hedge ineffectiveness. Note 19 sets out details of the fair values of the derivative instruments used for hedging purposes.

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in fair value movements on cash flow hedges. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss. Amounts previously recognised in fair value movements on cash flow hedges and accumulated in equity are reclassified to profit or loss in the periods in which the hedged item affects profit or loss or when the hedging relationship ends.

Hedge accounting is discontinued when the Group revokes the hedging relationship, the hedging instrument expires or is sold, terminated or exercised, or no longer qualifies for hedge accounting. Any gain or loss accumulated in equity at that time is reclassified to profit or loss when the hedged item is recognised in profit or loss. When a forecast transaction is no longer expected to occur, any gain or loss that was recognised in fair value movement on cash flow hedges is reclassified immediately to profit or loss.

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost, net of depreciation and any provision for impairment.

Depreciation is calculated to write off the cost of tangible fixed assets by equal annual instalments over their expected useful lives as follows:

Freehold buildings 15 to 60 years over the expected remaining life of the asset on a straight-line basis Office furniture 8 years on a straight-line basis Equipment 4 to 5 years on a straight-line basis Leasehold improvements 3 to 10 years over the remaining life of the lease on a straight-line basis

All tangible fixed assets costing £3,000 or more are capitalised.

Investments

Investments are stated at market value.

The statement of financial activities includes the net gains or losses arising from revaluations and disposals of investment assets during the year.

Stock

Stock is valued at the lower of cost and net realisable value.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Current asset investments

Current asset investments are bank balances held on deposit and are not available for immediate access. They have a maturity of one year or less.

Creditors

Creditors are recognised at their settlement amount after allowing for any trade discounts due.

Provisions

Provisions are recognised when the charity has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount can be estimated reliably. Provisions are measured at the present value of the expenditure expected to be required to settle the obligation.

Intangible assets

Intangible fixed assets are stated at cost, net of amortisation and any provision for impairment.

Amortisation is calculated to write off the cost of intangible fixed assets by equal annual instalments over their expected useful lives as follows:

Contacts database system 7 years on a straight-line basis Other software 5 years on a straight-line basis Other intangible asset 3 years on a reducing balance basis

Amortisation is not charged on assets in the course of construction until they are complete and in use.

Operating leases

Rental costs under operating leases are charged to the statement of financial activities in equal amounts over the periods of the leases, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are, similarly, spread on a straightline basis over the lease term.

Pensions

WWF-UK administers a group personal pension plan through Aviva which is also a defined contribution scheme. Payments made by the charity on behalf of individual employees are charged to the Consolidated Statement of Financial Activities as incurred.

All intangible assets are reviewed for any indication of impairment and, where impairment is indicated, the value of the asset is reduced to reflect the estimated recoverable value.

Intangible fixed assets costing £3,000 or more, and where it is probable they will create future economic benefit, are capitalised.

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Significant areas of estimation and judgement

The preparation of the financial statements requires judgements, estimations and assumptions to be made that affect the reported values of assets, liabilities, revenues and expenses. The nature of estimation and judgement means that actual outcomes could differ from expectation. Significant areas of estimation and judgement include:

5. GRANT AND PROJECT COSTS

Individual conservation projects and grants are grouped as programmes that reflect our key conservation priorities. Grants are made to other offices in the WWF network as well as other partners in the UK and internationally. This information is normally the basis of reporting to donors, including government agencies. All our grants are performance-related, with mid-term reviews.

• Accrued legacy income is estimated based on the best information available at the balance sheet date.

• Gifts in kind are recorded at market value and are adjusted to take into account the value to the charity.

• Intangible assets are stated net of any impairment provision.

3. INVESTMENT INCOME

3. INVESTMENT INCOME
	2021 2020
	£’000 £’000
Dividends and fxed interest Bank interest Other interest	580 652 19 176 1 13
	600 841

4. AID AGENCIES AND GOVERNMENT GRANTS*

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2021 2020
£’000 £’000
Major grants from aid agencies and governments include funds from:
Foreign, Commonwealth & Development Office (FCDO)
Forest Governance, Markets and Climate 490 749
CDC Water Risk Filter 86 -
Department for Environment, Food and Rural Affairs (DEFRA)
Tackling illegal wildlife trade in Muslim communities in Sumatra 19 20
Costs development of illegal wildlife tradeschool resource - 11
British Council
Expanding Horizons for Climate Action in Cities 90 -
United Nations Environment Programme (UNEP)
Sustainable Blue Economy Finance Principles 25 -
Total aid agencies and government grants 710 780
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*does not include institutional funding coming via a third party or WWF network office.

	2021 2020
Organisation/Programme	£’000 £’000
WWF International
WWF network support	4,488 4,867
WWF network
East Africa Savannahs Amazon Programme Tiger Landscapes Australian Wildlife and Nature Recovery China Policy (Green is Gold) Asia Sustainable Palm Oil Programme Organisational Development Wildlife Trafcking and Demand Asian High Mountain Landscapes Food Landscapes - UK HSBC - An Energy Transition for a 1.5 Degree World (Asia) Reckitt Benckiser - Restoring wildfower habitats globally Yangtze Programme Eastern Himalayas Programme HSBC - Climate Innovation Programme Global Freshwater Programme Greater Virunga European Policy Programme Myanmar Programme Total grants made to largest programmes	3,041 2,685 2,288 3,098 2,148 3,740 1,577 1,000 1,262 1,243 1,009 602 980 1,270 893 1,170 833 1,074 782 409 603 - 508 - 508 1,317 407 700 404 - 351 38 280 246 253 244 247 -
	22,862 23,703
Other projects aggregated	3,549 7,202
Loss on forward foreign currency contracts not hedged Total grant funding on programmes and projects Other project activity undertaken directly (Note 6) Total grants and projects expenditure (Note 6) Support costs (Notes 6,7) Total expenditure on grants and projects	- 106
	26,411 31,011 29,937 24,043
	56,348 55,054 5,587 4,784
	61,935 59,838

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6. RESOURCES EXPENDED

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Activities Grant Total
undertaken funding of Support Total 2020
directly activities costs 2021 (Restated)
£’000 £’000 £’000 £’000 £’000
----- End of picture text -----*

	£’000 £’000 £’000 £’000 £’000
Creating a sustainable food system Averting dangerous climate change Restoring threatened habitats and species Growing support Strengthening our priority WWF partner ofces Building capacity in the network Loss on forward foreign currency contracts not hedged Gifts in kind attributable to charitable activities Total expenditure on charitable activities Expenditure on raising funds Total expenditure	4,513 3,613 811 8,937 7,160 3,188 1,725 490 5,403 3,849 4,223 15,532 1,971 21,726 27,543 17,433 69 1,746 19,248 14,000 - 984 98 1,082 1,390 238 4,488 471 5,197 5,536 - - - - 106 342 - - 342 254
	29,937 26,411 5,587 61,935 59,838 18,821 - 1,857 20,678 18,442
	48,758 26,411 7,444 82,613 78,280

*Prior year charitable activities have been restated to reflect the reallocation of the Fight for your world goal.

8. STAFF COSTS

8. STAFF COSTS
	2021 2020
	£’000 £’000
Wages and salaries Social Security costs Pension costs	16,937 15,412 1,790 1,592 1,631 1,443
	20,358 18,447

The above costs exclude 6 staff (2020: 4 staff) who were hosted by WWF-UK on behalf of WWF International, WWF-US, WWF-Netherlands, WWF-Brazil, WWF European Programme Office and WWF-Singapore. Total cost £384,000 (2020: £317,000).

Included within staff costs above is £34,000 (2020: £90,000) relating to redundancy and termination costs. At the end of the year nil (2020: nil) was still to be paid.

There were no ex-gratia payments made during the year (2020: nil).

In addition, the cost of temporary staff in the year was £381,544 (2020: £380,213), of which £136,409 (2020: £77,978) was for staff hosted by WWF-UK on behalf of WWF-Malaysia.

Pension costs are allocated to activities on the same basis as those staff costs to which they relate.

The average number of employees during the year was 413 (2020: 364).

Basis for the support cost allocation

Support costs are allocated on a pro-rata basis according to the total cost of activities undertaken directly and grant funding of activities.

7. SUPPORT COSTS

7. SUPPORT COSTS
	Governance Management & Finance HR IT Premises & Facilities Total 2021 Total 2020
	£’000 £’000 £’000 £’000 £’000 £’000 £’000
Charitable activities Expenditure on raising funds Total support costs	631 1,555 933 1,129 1,339 5,587 4,784 210 517 310 375 445 1,857 1,468
	841 2,072 1,243 1,504 1,784 7,444 6,252

The increase in support costs in the year is mainly due to the fact that there were foreign currency holding losses in the year of £911,000, compared with currency holding gains of £384,000 in the prior year.

Governance costs included £nil (2020: £36,000) gifts in kind related to pro bono legal services provided.

The average number of employees calculated on a full-time equivalent basis was:

	2021 2020
	Number Number
Charitable activities Generating funds Support and governance	247 229 86 68 59 49
	392 346

The number of employees whose emoluments exceeded £60,000 in the year was:

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2021 2020
Number Number
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	Number Number
£60,001 to £70,000 £70,001 to £80,000 £80,001 to £90,000 £90,001 to £100,000 £100,001 to £110,000 £110,001 to £120,000 £120,001 to £130,000 £130,001 to £140,000 £140,001 to £150,000 Total	18 16 18 13 3 2 3 1 2 2 - 1 1 - - 1 1 -
	46 36

Pension contributions for the 46 highest paid employees (36 in 2020) amounted to £360,344 (2020: £269,477).

The key management personnel of the charity are the members of the executive group in place during the year as referred to on page 83. The total employee benefits of the executive group were £1,060,600 (2020: £830,354).

The chief executive, Tanya Steele, received a gross salary during the year of £141,522 (2020: £139,779) and an employer’s contribution to the pension scheme equivalent to 10% of the gross salary, as part of the organisation’s standard pension programme.

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9. TRUSTEES’ REMUNERATION AND EXPENSES

No trustee received any remuneration from WWF-UK during the year (2020: nil). No expenses were reimbursed to any trustee in the year (2020: £3,246 was reimbursed to six trustees solely for travel costs incurred in attending and participating in meetings).

During the year the charity paid £3,418 (2020: £3,107) in respect of trustees’ indemnity insurance on behalf of the trustees. No other costs were borne on behalf of any trustee.

10. NET INCOMING RESOURCES FROM OPERATIONS

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2021 2020
£’000 £’000
Net incoming resources from operations for the year are stated after charging:
Auditors’ remuneration:
Fees payable to the charity’s auditors for the audit of the charity’s annual accounts 33 41
Fees payable to the charity’s auditors for the audit of projects 12 -
Fees payable to the charity’s auditors for the audit of the charity’s subsidiaries 23 23
Fees payable to the charity’s auditors for consultancy services - 15
Total auditors’ remuneration 68 79
Depreciation of tangible fixed assets 862 852
Operating lease rentals:
Plant and machinery 12 10
Other 194 256
Total operating lease rental 206 266
Unrealised gain on foreign exchange translation 920 (360)
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11. INTANGIBLE FIXED ASSETS

	Other intangible asset Contacts database system Other software Total
	£’000 £’000 £’000 £’000
GROUP AND CHARITY
Cost or valuation
At 30 June 2020 Additions in the year Disposals in the year At 30 June 2021	2,590 1,206 478 4,274 319 - - 319 (963) - - (963)
	1,946 1,206 478 3,630
Amortisation
At 30 June 2020 Charge for the year At 30 June 2021	- 1,206 165 1,371 730 - 87 817
	730 1,206 252 2,188
Net book value
At 30 June 2021 At 30 June 2020	1,216 - 226 1,442
	2,590 - 313 2,903

12. TANGIBLE FIXED ASSETS

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Living Planet Leasehold Office furniture
Centre improvements and equipment Total
£’000 £’000 £’000 £’000
GROUP AND CHARITY
Cost or valuation
At 30 June 2020 19,367 132 1,368 20,867
Additions in the year 32 - 77 109
At 30 June 2021 19,399 132 1,445 20,976
Depreciation
At 30 June 2020 5,159 124 1,013 6,296
Charge for the year 697 6 159 862
At 30 June 2021 5,856 130 1,172 7,158
Net book value
At 30 June 2021 13,543 2 273 13,818
At 30 June 2020 14,208 8 355 14,571
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13. INVESTMENTS

	2021 £’000 2020 £’000
GROUP AND CHARITY
Investment – movement
Market value at 1 July 2020 Additions at cost Disposals at market value Net gain on revaluation Market value at 30 June 2021 Cash balances Total market value at 30 June 2021	22,651 21,481 3,650 9,777 (3,199) (8,908) 2,907 301
	26,009 22,651 955 819
	26,964 23,470
Historical cost at 30 June 2021	21,565 19,592
Portfolio distribution
UK fxed interest UK equities Overseas equities Overseas fxed interest Property funds Cash funds Total investment portfolio	4,538 4,262 6,332 4,974 12,318 10,756 857 738 1,964 1,921 955 819
	26,964 23,470

14. STOCK

Stock consists of finished goods for resale held by the charity.

The other intangible asset concerns the film David Attenborough: A Life On Our Planet , which was released in September 2020.

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15. DEBTORS

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Group Group Charity Charity
2021 2020 2021 2020
£’000 £’000 £’000 £’000
----- End of picture text -----

	£’000 £’000 £’000 £’000
Amounts due within one year: Trade debtors Amounts due from WWF-UK (World Wide Fund For Nature) Trading Limited Other debtors Forward foreign currency contracts Prepayments Accrued income Total debtors	2,712 1,841 566 156 - - 1,824 1,460 1,331 1,475 1,131 1,419 234 203 234 203 686 1,576 681 1,462 1,414 884 1,230 807
	6,377 5,979 5,666 5,507

16. CURRENT ASSET INVESTMENTS

	Group Group Charity Charity 2021 2020 2021 2020
	£’000 £’000 £’000 £’000
Amounts due within one year: Bank balances held on deposit
	3,336 3,328 3,336 3,328

17. CREDITORS

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Group Group Charity Charity
2021 2020 2021 2020
£’000 £’000 £’000 £’000
----- End of picture text -----

	£’000 £’000 £’000 £’000
Amounts falling due within one year: Trade creditors PAYE & National Insurance Other creditors Forward foreign currency contracts Accruals Deferred income (see note 17(a) below) Total creditors	1,631 1,651 1,519 1,621 523 444 523 444 81 94 78 90 12 - 12 - 5,535 4,504 5,423 4,365 2,564 3,851 840 1,108
	10,346 10,544 8,395 7,628

18. FINANCIAL INSTRUMENTS

The charity has certain financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost. Certain other financial instruments are held at fair value, with gains and losses being recognised within the SOFA.

The charity has the following financial instruments:

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Group Group Charity Charity
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Financial assets measured at amortised cost:
Current asset investments 3,336 3,328 3,336 3,328
Cash at bank and in hand 26,461 24,055 25,509 21,759
Amounts owed by group undertakings - - 1,824 1,460
Other receivables 5,457 4,200 2,927 2,382
35,254 31,583 33,596 28,929
Financial liabilities measured at amortised cost:
Accruals 5,535 4,504 5,423 4,365
Other creditors 2,235 2,189 2,120 2,155
7,770 6,693 7,543 6,520
Financial assets measured at fair value
Fixed asset investments 26,964 23,470 26,964 23,470
Forward foreign currency contracts 234 203 234 203
27,198 23,673 27,198 23,673
Financial liabilities measured at fair value
Forward foreign currency contracts 12 - 12 -
12 - 12 -
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17(A) GROUP DEFERRED INCOME

	1 July 2020 Income received in current year Released in current year 30 June 2021
	£’000 £’000 £’000 £’000
Corporate sponsorship Corporate donations Other Deferred income	3,638 2,441 (3,755) 2,324 8 2,600 (2,604) 4 205 470 (439) 236
	3,851 5,511 (6,798) 2,564

Deferred income relates to amounts received prior to entitlement.

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19. CASH FLOW HEDGES – FORWARD FOREIGN CURRENCY CONTRACTS

The following table details the forward foreign currency contracts outstanding as at the year end:

Non-hedged – forward foreign currency contracts

There were no non-hedged – forward foreign currency contracts outstanding at the year end (2020: nil).

2021 2020 £’000 £’000 (Loss) / Gain on forward foreign currency contracts not hedged - (106) Cash fow hedges – forward foreign currency contracts Average contractual Notional value exchange rate Fair value 2021 2020 2021 2020 2021 2020	2021 2020 £’000 £’000 (Loss) / Gain on forward foreign currency contracts not hedged - (106) Cash fow hedges – forward foreign currency contracts Average contractual Notional value exchange rate Fair value 2021 2020 2021 2020 2021 2020
	£’000 £’000 Rate Rate £’000 £’000
Due within 1 year Buy CHF, Sell GBP FV movement on cash fow hedges	4,148 3,911 1.2053 1.2274 222 203
	2021 2020 £’000 £’000 222 203 (203) (116) 19 87
Amounts reclassifed to hedge reserve Amounts reclassifed from hedge reserve

WWF-UK has entered into forward foreign exchange contracts to hedge the exchange rate risk arising from commitments to make WWF network support payments expected to occur and to affect profit or loss within the next financial year.

Forward foreign currency contracts are valued using quoted forward exchange rates and yield curves derived from quoted interest rates matching maturities of the contracts. Hedge ineffectiveness recognised in the year was £12,000 (2020: £24,000).

20. SUBSIDIARY COMPANY

WWF-UK has one active subsidiary company and two dormant subsidiaries. The ordinary shares in the active subsidiary company, WWF-UK (World Wide Fund For Nature) Trading Limited (previously known as WWF-UK Trading Limited), are wholly owned by WWF-UK. The company is registered in England and Wales (Registration No. 00892812). The registered office is The Living Planet Centre, Rufford House, Brewery Road, Woking, Surrey GU21 4LL.

The main activities of the company during the year were receiving royalties licensing income from the use of the WWF logo, sponsorship income and miscellaneous trading activities.

The aggregate assets of the subsidiary company were £3,781,274 (2020: £4,382,863) and the aggregate liabilities were £3,774,986 (2020: £4,376,575), resulting in shareholders’ funds of £6,288 (2020: £6,288).

The taxable profits earned by the company are donated to WWF-UK and in the current year amounted to £3,281,932 (2020: £1,075,211).

A summary of the subsidiary company’s trading results is shown below:

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Profit and loss account 2021 2020
£’000 £’000
Catalogue and retail sales 1,188 840
Corporate sponsorship and licensing 4,662 2,114
Turnover 5,850 2,954
Cost of sales (1,210) (674)
Gross profit 4,640 2,280
Administrative expenses (1,369) (1,245)
Operating profit 3,271 1,035
Interest receivable 11 13
3,282 1,048
Gift Aid donation to WWF-UK (3,282) (1,075)
Retained profit for the year - (27)
Profit & loss account brought forward 6 33
Retained profit carried forward 6 6
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21. GROUP STATEMENT OF FUNDS

	At 1 July 2020 Income Expenditure Transfers between funds Net gains/ (losses) At 30 June 2021
	£’000 £’000 £’000 £’000 £’000 £’000
Endowment funds Kleinwort Endowment Fund Willingdon Memorial Fund Total endowment funds	2,992 - (26) - 367 3,333 2,259 - (20) - 277 2,516
	5,251 - (46) - 644 5,849

Restricted funds Project restricted funds HSBC water programme HSBC textiles HSBC Asia Palm Oil HSBC Global Partnership Quadrature climate foundation Quadrature Silverback Garfeld Western Seagrass Reckitt Benckiser Botanica Reckitt Benckiser core partnership Aviva sustainable fnance Sky Ocean Rescue Mondi environmental stewardship DFID forest governance, markets and climate Tesco sustainable food Coca-Cola freshwater programme Anne Reece Bhutan for Life Sodexo carbon performance and sustainable meals Old Mout Amazon / Cerrado Patrick Degorce coral reef AB InBev clean water Trillion Trees Public awareness project Other project restricted, GAA and DFID Broadly restricted funds	768 426 1,429 12 - - - - - - 2,449 - 278 - 244 396 (3) - 206 - 706 373 1,235	1 - 1,709 3,517 1,405 360 952 847 473 515 2,778 196 490 1,460 455 - 91 40 - 221 613 10 3,319	(793) (296) (1,106) (1,323) (1,080) (348) (56) (532) (153) - (1,753) (196) (730) (1,460) (671) (419) 11 - (54) (221) (749) - (1,937)	- - - - - - - - - - - - - - - - - - - - - (319) -	- - - - - - - - - - - - - - - - - - - - - - -	(24) 130 2,032 2,206 325 12 896 315 320 515 3,474 - 38 - 28 (23) 99 40 152 - 570 64 2,617
Rimington legacy tigers	73	-	(73)	-	-	-
Amazon emergency appeal	268	528	(331)	-	-	465
Arctic*	(7)	569	(594)	-	-	(32)
Australia wildfres appeal	1,515	96	(1,450)	-	-	161
Climate change	75	538	(490)	-	-	123
Tigers	604	2,505	(2,850)	-	-	259
Snow leopards	(215)	1,630	(1,391)	-	-	24
Elephants	(372)	1,826	(1,267)	-	-	187
Amur leopards	(206)	894	(580)	-	-	108
Primates (orangutans)	19	864	(691)	-	-	192
Jaguars	(144)	633	(487)	-	-	2
Rhinos	7	592	(522)	-	-	77
Penguins	(133)	609	(464)	-	-	12
Pandas	(150)	596	(383)	-	-	63

	At 1 July 2020 Income Expenditure Transfers between funds Net gains/ (losses) At 30 June 2021
	£’000 £’000 £’000 £’000 £’000 £’000
Mountain gorillas Lions Turtles Endangered species Guardians appeal Other broadly restricted funds Hosting costs (including staf costs) Total project and broadly restricted funds	(20) 437 (435) - - (18) 126 214 (311) - - 29 (90) 433 (297) - - 46 80 1,168 (438) - - 810 81 484 (101) - - 464 399 1,126 (423) - - 1,102 - 454 (455) - - (1)
	10,429 35,648 (27,899) (319) - 17,859
Living Planet Centre
Living Planet Centre Ruford Living Planet Centre other Total Living Planet Centre funds Total restricted funds	3,633 - (174) - - 3,459 1,551 - (63) - - 1,488
	5,184 - (237) - - 4,947
	15,613 35,648 (28,136) (319) - 22,806
Unrestricted funds
Designated reserves: Living Planet Centre reserve Fixed asset reserve Capital expenditure reserve Programmes reserve Public awareness reserve Wild Isles Investment reserve Designated reserves Hedge reserve General reserve Total unrestricted funds Total funds	9,024 - (460) 32 - 8,596 3,266 - (982) (567) - 1,717 933 - - - - 933 1,997 2,023 (3,217) 1,450 - 2,253 36 - - (36) - - 1,400 - (915) 5 - 490 2,733 - - 434 - 3,167
	19,389 2,023 (5,574) 1,318 - 17,156 203 - - - 19 222 23,718 46,688 (48,857) (999) 2,263 22,813
	43,310 48,711 (54,431) 319 2,282 40,191
	64,174 84,359 (82,613) - 2,926 68,846

*There are negative balances on the restricted funds for HSBC water programme (£24,000), Anne Reece Bhutan for Life (£23,000), Arctic (£32,000), Mountain gorillas (£18,000) and hosting costs (£1,000). This is due to the fact that future income is anticipated which will exceed the amount of the deficit balance.

PERMANENT ENDOWMENTS

The Kleinwort Endowment Fund was established in 1970. Income is available for the general purposes of WWF-UK. The fund is represented by fixed asset investments.

The Willingdon Memorial Fund was received by way of a legacy in 1991 and 1994. Income is available for the general purposes of WWF-UK. The fund is represented by fixed asset investments.

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RESTRICTED FUNDS

Restricted funds are grants and donations given for specific purposes. They may be project-specific or more broadly restricted to a theme or country.

1. Other project, GAA and DFID restricted donations are where the donor has specified the project to be funded and neither income nor expenditure exceeds £300,000.

2. Other broadly restricted donations are where the donor has specified the restriction, but not the project to be funded, and neither income nor expenditure exceeds £300,000.

3. Living Planet Centre restricted donations which were used for the construction of the headquarters.

DESIGNATED RESERVES

22. ANALYSIS OF GROUP ASSETS AND LIABILITIES BETWEEN FUNDS

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Unrestricted Restricted Endowment Total Total
funds funds funds 2021 2020
£’000 £’000 £’000 £’000 £’000
Intangible fixed assets 1,442 - - 1,442 2,903
----- End of picture text -----

Intangible fxed assets	1,442 - - 1,442 2,903
Tangible fxed assets – Living Planet Centre Tangible fxed assets – Other Investments Fixed assets Current assets Current liabilities Net assets	8,596 4,947 - 13,543 14,208 275 - - 275 363 21,115 - 5,849 26,964 23,470
	31,428 4,947 5,849 42,224 40,944 19,109 17,859 - 36,968 33,774 (10,346) - - (10,346) (10,544)
	40,191 22,806 5,849 68,846 64,174

• The designated reserve in respect of the Living Planet Centre represents the unrestricted element of the net book value of the property. The transfer of £32,000 relates to additional VAT on prior years’ capital expenditure.

• The fixed asset reserve represents resources invested in fixed assets other than the Living Planet Centre and which, as a result, are not available for other purposes. The transfer of £567,000 relates to capital investments net of disposals made during the year.

• The capital expenditure reserve represents resources allocated to cover future expenditure on major repairs and replacements for the Living Planet Centre building. This amount has been calculated on the basis of an independent professional assessment of likely future costs and is reviewed at regular intervals.

• The programmatic reserve includes funds received from the players of People’s Postcode Lottery (PPL) which had not been spent by the year end and which, while not restricted funds, the organisation has determined should be designated for specific programmes including East Africa Savannahs, the Amazon, and our Education and Youth work. It is planned that the carried forward amount will be fully spent during FY22.

• The public awareness reserve represents funds designated for the production of the film David Attenborough: A Life On Our Planet , which commenced during the year ended 30 June 2018 and was released in September 2020. WWFUK has underwritten the costs associated with the activity. The reduction in the reserve represents the completion of the project having been fully funded by donations received.

• The Wild Isles reserve represents funds designated for a new television series venture with the BBC and RSPB due for release in 2023. WWF-UK has underwritten the costs associated with a share of the activity. The reduction in the reserve represents expenditure incurred on the project.

• The investment reserve is to provide for foreseeable volatility in the value of the unrestricted fixed asset investments. This equates to 15% of the value of the portfolio excluding the endowments.

HEDGE RESERVE

The hedge reserve represents foreign currency forward currency contracts that are hedged against committed expenditure.

TRANSFER BETWEEN RESTRICTED AND UNRESTRICTED FUNDS

The funds in the public awareness project restricted fund have been spent as specified by the donors under this restriction. The fund has been transferred to unrestricted reserves as the expenditure was used on the creation of an unrestricted intangible fixed asset.

23. OPERATING LEASE COMMITMENTS

At the end of the year, WWF-UK was committed to making future minimum operating lease payments which fall due as follows:

	2021 Land and buildings 2021 Plant and machinery 2020 Land and buildings 2020 Plant and machinery
	£’000 £’000 £’000 £’000
Payments due: within one year within two to fve years Total	212 10 221 10 181 - 393 10
	393 10 614 20

24. LEGACY NOTIFICATIONS

By the end of the financial year, WWF-UK had been advised of a number of legacies which indicated the charity as a beneficiary. These have not been included in the statement of financial activities as the charity’s final entitlement has not yet been established by the executors. The initial indicated values for these legacies are estimated to be £13.7 million (2020: £13.5 million).

25. GIFTS IN KIND

WWF-UK received gifts in kind during the year relating to the goods and services detailed below:

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£’000
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Campaigning costs: Poster advertising space donated and used to promote awareness of the WWF campaigns Donation of internet search terms and social media advertising to generate public awareness and for testing fundraising media Total gifts in kind received	119 223
	342

CHARITY STATEMENT OF FINANCIAL ACTIVITIES

The total income of the charity in 2021 was £82.9m (2020: £79.1m) and total expenditure was £81.1m (2020: £76.5m).

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26. OUTSTANDING GRANT AWARDS

WWF-UK aims to continue to provide funding to a number of programmes and projects subject to the delivery of obligations contained in the grant awards. The amount of grants outstanding at the end of the year that did not meet the definition of an accounting accrual is detailed below. Payment of the grants is contingent on the outcome of reviews of the programmes and therefore the liability has not been recognised at the year end. The commitments will be funded through general funds or restricted funding from individual and institutional donors. The funding of these commitments falls due as detailed below.

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2021 2020
£’000 £’000
Due within:
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Due within:	£’000 £’000
1 year 2 years 3 years 4 years 5 years	7,500 9,880 3,823 2,389 2,769 1,252 1,120 1,234 358 632
	15,570 15,387

27. CONTINGENT LIABILITIES

In accordance with normal business practice, WWF-UK has provided indemnities to the executors of certain estates. These indemnities provide legal recourse to the recovery of any overpayments up to the total value of receipts by WWF. The maximum possible liability arising from indemnities outstanding at the balance sheet date was £4,642,785 (2020: £4,303,988) with the maximum indemnity period being 12 years.

28. RELATED PARTY TRANSACTIONS

				2021	2020
3rd party organisation	WWF-UK ofcer	Position in 3rd party organisation	Transaction type	£’000	£’000
WWF International	Dave Lewis, chair of WWF-UK	Trustee	Income	766	599
			Grant expenditure	5,037	5,007
			Other expenditure	65	72
			Debtor outstanding	72	3
			Creditor outstanding	9	18
			Loan outstanding	-	811
			Interest earned	1	14
			on loan
Tesco Stores	Dave Lewis, chair of WWF-UK	Ex-chief executive	Income	1,500	563
		ofcer
			Debtor outstanding	1,463	563
University of Oxford	Professor Eleanor Milner-	Professor	Grant expenditure	156	222
	Gulland, trustee of WWF-UK
			Other expenditure	-	8
Quadrature Climate	Baroness Bryony Katherine	Co-director	Income	1,760	-
Foundation	Worthington
Aviva	Katie White, executive director	Spouse held senior	Income	587	-
	of advocacy and campaigns	position in relevant
		department
			Debtor outstanding	72	-
Studio Silverback Limited	Colin Butfeld, ex-executive	Director	Other expenditure	348	-
	director of Our Planet

Trustees and other related parties, including key management personnel, made donations to WWF-UK during the year totalling £8,812 (2020: £4,572).

The following transactions between WWF-UK and its subsidiary WWF-UK (World Wide Fund For Nature) Trading Limited took place during the year.

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2021 2020
£’000 £’000
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Intercompany balances
Amounts due from WWF-UK (World Wide Fund for Nature) Trading Limited	1,824	1,460
Transactions with WWF-UK (World Wide Fund for Nature) Trading Limited
WWF-UK income received by the subsidiary	33	12
Subsidiary income received by WWF-UK	1,396	740
Payments made by WWF-UK on behalf of subsidiary	1,505	1,158
WWF-UK expenditure recharged to subsidiary	1,191	997
Subsidiary VAT paid by WWF-UK	561	255
Gift Aid donation from subsidiary to WWF-UK	3,282	1,075
Loan from subsidiary to WWF-UK	1,000	-
Loan interest charged by subsidiary to WWF-UK	10	-
WWF-UK repayment of loan from subsidiary	1,010	-

29. TAXATION

WWF-UK is a registered charity and as such is potentially exempt from taxation of its income and gains to the extent that they fall within the exemptions available to charities under the Taxes Act and are applied to its charitable objectives. WWF-UK (World Wide Fund For Nature) Trading Limited is subject to Corporation Tax but it remits by Gift Aid any taxable profit to WWF-UK.

30. COMMITMENTS

At the year end, WWF-UK had no capital commitments.

31. GUARANTEE

WWF-UK is a company limited by guarantee and each trustee has agreed to contribute up to £10 towards the assets of the company in the event of it being wound up.

32. PEOPLE’S POSTCODE LOTTERY (PPL) INCOME

During the year WWF-UK received the proceeds of lotteries held by PPL. WWF-UK has no ability to alter the price of tickets, determine the prizes or reduce the management fee. As such, PPL is treated as acting as the principal, and so only net proceeds due to WWF-UK are recognised under lottery promotions in the statement of financial activities. The net proceeds received are analysed as follows:

	2021	2020
	£’000	£’000
Ticket value	6,311	13,490
Prize fund	(2,525)	(5,396)
Management fee	(1,767)	(3,777)
Net proceeds received	2,019	4,317

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33. PRIOR YEAR CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

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Restricted and
Unrestricted endowment Total
funds funds 2020
Notes £’000 £’000 £’000
Income and endowments from:
Donations and legacies
Membership and donations from individuals 25,448 16,733 42,181
Corporate donations 824 6,610 7,434
Charitable trusts 394 1,791 2,185
Legacies 16,503 453 16,956
Gifts in kind 290 - 290
43,459 25,587 69,046
Charitable activities
Aid agencies and government grants 4 11 769 780
Corporate income 1 1,088 1,089
Income from non-governmental organisations 158 1,771 1,929
170 3,628 3,798
Other trading activities
Corporate income 155 1,764 1,919
Lottery promotions 4,317 - 4,317
Other trading income 500 422 922
4,972 2,186 7,158
Investments 3 790 51 841
Total income 49,391 31,452 80,843
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Expenditure on:
Raising funds
Costs of raising voluntary income 13,096 5,156 18,252
Investment management fees 147 43 190
Total expenditure on raising funds 6 13,243 5,199 18,442
Charitable activities
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Charitable activities
Charitable activities 5,6 Gifts in kind Total expenditure on charitable activities Total expenditure Net income before gains on investments Net gains on investments Net income Transfers between funds Fair value movements on cash fow hedges Net movement in funds Total funds brought forward 34 Total funds carried forward 34	33,803 25,781 59,584 254 - 254
	34,057 25,781 59,838
	47,300 30,980 78,280
	2,091 472 2,563 233 68 301
	2,324 540 2,864 399 (399) - 87 - 87
	2,810 141 2,951 40,500 20,723 61,223
	43,310 20,864 64,174

34. PRIOR YEAR GROUP STATEMENT OF FUNDS

	At 1 July 2019 Income Expenditure Transfers between funds Net gains/ (losses) At 30 June 2020
	£’000 £’000 £’000 £’000 £’000 £’000
Endowment funds Kleinwort Endowment Fund Willingdon Memorial Fund Total endowment funds	2,978 - (25) - 39 2,992 2,248 - (18) - 29 2,259
	5,226 - (43) - 68 5,251
Restricted funds
Project restricted funds HSBC water programme HSBC textiles HSBC Asia Palm Oil Sky Ocean Rescue Mondi environmental stewardship DFID forest governance, markets and climate Tesco sustainable food Coca-Cola freshwater programme Anne Reece Bhutan for Life Sodexo carbon performance and sustainable meals* (see page 80) Old Mout Amazon / Cerrado Patrick Degorce coral reef AB InBev clean water Trillion Trees Public awareness project Other project restricted, GAA and DFID	1,602 1,230 (2,064) - - 768 486 393 (453) - - 426 - 2,018 (589) - - 1,429 2,145 2,213 (1,909) - - 2,449 - 798 (798) - - - 165 749 (636) - - 278 - 981 (981) - - - 136 473 (365) - - 244 845 298 (747) - - 396 94 267 (364) - - (3) 17 96 (113) - - - - 449 (243) - - 206 - 291 (291) - - - 275 910 (479) - - 706 - 772 - (399) - 373 1,335 1,762 (1,850) - - 1,247
Broadly restricted funds
Stewart Scotland marine legacy Rimington legacy tigers Amazon emergency appeal Amazon Arctic (see page 80) Australia wildfres appeal Climate change Illegal wildlife trade Tigers Snow leopards (see page 80) Elephants (see page 80) Amur leopards (see page 80) Primates (orangutans) Jaguars (see page 80) Rhinos Penguins (see page 80) Pandas (see page 80) Mountain gorillas (see page 80) Lions Turtles* (see page 80) Endangered species Guardians appeal Other broadly restricted funds	92 - (92) - - - 2,520 - (2,447) - - 73 - 1,082 (814) - - 268 6 225 (208) - - 23 1 570 (578) - - (7) - 2,966 (1,451) - - 1,515 (129) 474 (270) - - 75 255 55 (231) - - 79 121 2,417 (1,934) - - 604 (213) 1,654 (1,656) - - (215) 1 1,223 (1,596) - - (372) (323) 910 (800) - - (213) - 778 (759) - - 19 67 555 (766) - - (144) 41 516 (550) - - 7 10 504 (647) - - (133) (169) 500 (481) - - (150) (72) 476 (424) - - (20) (84) 329 (119) - - 126 3 310 (408) - - (95) - 741 (661) - - 80 349 301 (569) - - 81 437 720 (848) - - 309

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WWF-UK Annual Report and Financial Statements 2020-21

	At 1 July 2019 Income Expenditure Transfers between funds Net gains/ (losses) At 30 June 2020
	£’000 £’000 £’000 £’000 £’000 £’000
Hosting costs (including staf costs) Total project and broadly restricted funds	- 446 (446) - - -
	10,013 31,452 (30,637) (399) - 10,429
Living Planet Centre
Living Planet Centre Ruford Living Planet Centre other Total Living Planet Centre funds Total restricted funds	3,838 - (205) - - 3,633 1,646 - (95) - - 1,551
	5,484 - (300) - - 5,184
	15,497 31,452 (30,937) (399) - 15,613
Unrestricted funds
Designated reserves: Living Planet Centre reserve Fixed asset reserve Capital expenditure reserve Programmes reserve Public awareness reserve Wild Isles Loan reserve Investment reserve Designated reserves Hedge reserve General reserve Total unrestricted funds Total funds	9,316 - (497) 205 - 9,024 2,899 - (277) 644 - 3,266 933 - - - - 933 3,114 4,322 (5,439) - - 1,997 971 - - (935) - 36 - - - 1,400 - 1,400 800 - - (800) - - 2,595 - - 138 - 2,733
	20,628 4,322 (6,213) 652 - 19,389 116 - - - 87 203 19,756 45,069 (41,087) (253) 233 23,718
	40,500 49,391 (47,300) 399 320 43,310
	61,223 80,843 (78,280) - 388 64,174

• There are negative balances on the restricted funds for Sodexo carbon performance and sustainable meals (£3,000), Arctic (£7,000), Snow leopards (£215,000), Elephants (£372,000), Amur leopards (£213,000), Jaguars (£144,000), Penguins (£133,000), Pandas (£150,000), Mountain gorillas (£20,000) and Turtles (£95,000). This is due to investment being made in the recruitment of regular giving supporters in respect of whom we are confident that future net income will exceed the amount of the deficit balance.

35. PRIOR YEAR ANALYSIS OF GROUP ASSETS AND LIABILITIES BETWEEN FUNDS

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Unrestricted Restricted Endowment Total
funds funds funds 2020
£’000 £’000 £’000 £’000
Intangible fixed assets 2,903 - - 2,903
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Intangible fxed assets	2,903 - - 2,903
Tangible fxed assets – Living Planet Centre Tangible fxed assets – Other Investments Fixed assets Current assets Current liabilities Net assets	9,024 5,184 - 14,208 363 - - 363 18,219 - 5,251 23,470
	30,509 5,184 5,251 40,944 23,345 10,429 - 33,774 (10,544) - - (10,544)
	43,310 15,613 5,251 64,174

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© FRANK PAPUSHKA / WWF-TANZANIA
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WWF-UK CORPORATE DIRECTORY

COMMITTEES

(A) Audit Committee

• (F) Finance and Business Committee

(N) Nominations and Remuneration Committee

(P) Programme Committee

(Inv) Investment Sub-Committee

CHAIR

Mark Richardson (retired March 2021) Stephen Hay (appointed March 2021) Catherine Dugmore Dave Lewis Eleanor Milner-Gulland Catherine Dugmore

THE EXECUTIVE GROUP/PRINCIPAL OFFICERS

The information shown below is that pertaining between 1 July 2020 and 27 October 2021, the date of signing the accounts.

President: HRH The Prince of Wales

COMMITTEES

TRUSTEES

Dave Lewis (Chair) N Ila Kasem (retired October 2020) A Mark Richardson (retired March 2021) A, F, Inv Professor Malcolm Press N Catherine Dugmore A, F, N, Inv Andrew Green F Professor Eleanor Milner-Gulland P Steve Morris N Justin Mundy P Stephen Hay A, F, Inv Professor Jules Pretty P Baroness Bryony Worthington P Dorcas Gwata (appointed June 2021) Dr Steve Waygood (appointed June 2021) F Kirsty Brimelow QC (appointed June 2021) A

THE FOLLOWING, WHO ARE NOT TRUSTEES, HOLD HONORARY POSITIONS

Martin Laing CBE (Trustee Emeritus) The Hon Mrs Sara Morrison (Trustee Emeritus) Ed Smith CBE (Trustee Emeritus) Sir Andrew Cahn (Trustee Emeritus)

INDEPENDENT MEMBERS AND EXTERNAL ADVISERS COMMITTEES

Paul Ekins (retired December 2020) P Isabelle Durance P Farhana Yamin (resigned March 2021) P Neil Burgess P Ruchi Tripathi P Mike Hoffmann (resigned March 2021) P Emily Robinson (appointed June 2021) P Dr Henry Travers (appointed June 2021) P Osama Bhutta (appointed June 2021) P Dilys Roe (appointed June 2021) P Laura Hobbs Inv

Chief executive

Executive director of operations and strategy Executive director of people and culture Executive director of supporter income and engagement Executive director of science and conservation Executive directors of advocacy and campaigns Executive director of communications Executive director of Our Planet

COMPANY SECRETARY

PRINCIPAL AND REGISTERED OFFICE

PRINCIPAL PROFESSIONAL ADVISERS

Bankers

Auditor

Legal advisers

Investment managers

Tanya Steele

Catherine McDonald (appointed August 2020) Jane Drysdale (appointed September 2020) Michael Dent Mike Barrett Katie White & Kate Norgrove Lisa Lee Colin Butfield (resigned December 2020)

Zoë Ballantyne

The Living Planet Centre Rufford House Brewery Road Woking GU21 4LL

Lloyds Bank plc 2 City Place Beehive Ring Road Gatwick West Sussex RH6 0PA

Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW

Bates Wells 10 Queen Street Place London EC4R 1BE

Newton Investment Management Ltd 160 Queen Victoria Street London EC4V 4LA

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