2022-06-30-accounts

WWF-UK ANNUAL REPORT + FINANCIAL STATEMENTS 2021-22

RAISING SUPPORT

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INCOME 2021-22 2020-21
MEMBERSHIP AND DONATIONS £43.9M £42.8M
LEGACIES £15.3M £15.4M
CORPORATE DONATIONS AND INCOME £16.9M £14.9M
LOTTERY PROMOTIONS £0.3M £2.1M
CHARITABLE TRUSTS £8.6M £4.5M
WWF NETWORK AND OTHER CHARITIES £2.4M £1.8M
INVESTMENT INCOME £0.7M £0.6M
AID AGENCIES AND GOVERNMENT GRANTS £1.8M £0.7M
OTHER £1.1M £1.5M
TOTAL £91.0M £84.3M
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EXPENDITURE 2021-22 2020-21
CHARITABLE ACTIVITIES £69.1M £62.0M
COST OF RAISING FUNDS £22.8M £20.6M
OTHER £0.2M £0.0M
TOTAL £92.1M £82.6M
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Cover image: Txai Suruí, an Indigenous activist and member of WWF-Brazil’s board. We supported Txai to attend the UN climate summit in Glasgow. This page: WWF Youth Ambassador Arielle takes part in the Global Day of Action for Climate Justice march through Glasgow during COP26 in November 2021.

CONTENTS 6 OUR SUCCESSES 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 2021

UNLOCKING THE POWER OF SEAWEED

Through our work to find innovative ways to tackle climate change while restoring nature and benefiting people, we began support for Câr-y-Môr, a regenerative seaweed farm in Pembrokeshire. We helped them increase acceptance of the farm by working alongside the community, raising awareness about regenerative ocean farming, and supporting the running of the farm. Our support KEEPING AMAZON RIVER helped the farm secure a £300,000 grant from the Welsh government. DOLPHINS FROM HARM Growing seaweed produces feed for animals, food for people, and helps With all six river dolphin species regenerate the ocean. This farm, threatened with extinction globally, and others like it, improve water we trialled an innovative project to quality by removing nitrogen and prevent dolphins being accidentally phosphorus, they remove carbon, and caught in fishing nets in the Amazon. they support marine life by mimicking We attached electronic ‘pingers’ wild kelp forests.

SHARING GREENER VISIONS IN SCOTLAND

In the run-up to the UN climate summit in Glasgow (COP26), WWF Scotland asked the public to share their visions for a greener, fairer country. From the 200 creative responses that were submitted, 48 artworks and texts were selected to be featured in the Great Scottish Canvas virtual exhibition, which was supported by players of People’s Postcode Lottery. We teamed up with National Galleries of Scotland to create the project, which featured contributions from prominent Scottish voices such as writer Alexander McCall Smith and former Makar Jackie Kay. Through this project we made connections with communities all over Scotland and established close relationships with supporters who took part. We published a book to accompany the exhibition, copies of which were presented to international delegates during the climate change conference.

With all six river dolphin species threatened with extinction globally, we trialled an innovative project to prevent dolphins being accidentally caught in fishing nets in the Amazon. We attached electronic ‘pingers’ (devices that emit sounds) to the nets to help to deter dolphins from approaching too close, protecting the animals from potentially fatal entanglements – and benefiting local fishers. The project in Caballococha lake in Peru uses similar technology to a pilot we ran in Indonesia’s Mahakam river, which saw impressive results. Monitoring studies showed that river dolphins steer clear of nets that are fitted with these devices, and fishers said dolphins no longer try to catch fish in nets with pingers.

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~~JULY AUGUST SEPTEMBER~~

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KENYA’S BLACK RHINO NUMBERS INCREASED TO 938 – A RISE OF 85 SINCE THE PREVIOUS YEAR

STEPPING UP TO TACKLE DEFORESTATION Wales demonstrated that a small country can be a global leader in tackling the climate crisis, with the government announcing its determination to stop the import of products linked to deforestation overseas. WWF Cymru published a report – Wales and Global Responsibility – that examined how commodity consumption is driving habitat loss and social exploitation. We were joined at the launch by Kerexu Yxapyry of Commissao Guarani Yvyrupa – the organisation of Brazil’s Guarani Indigenous people – who gave an emotive talk on the impact soy production is having on her community. As a result, the Welsh minister for climate change committed to taking action to minimise the effect of overseas imports.

INCREASING RHINO NUMBERS IN KENYA

LAUNCHING WALRUS FROM SPACE

Kenya’s black rhino population is on the up. According to the figures released in December 2021, there were 938 black rhinos in the country – an increase of 85 since the previous year. This amazing rise is testament to our vital conservation work in collaboration with Kenya Wildlife Service and local partners – from funding rhino monitoring to improving ranger accommodation. We’ve also funded equipment and infrastructure. And we’ve supported the development of a new Kenya Black Rhino Action Plan, which will set targets for their numbers by 2027, as well as for reductions in poaching, and maintaining suitable rhino habitat. It detail ~~s~~ the concerted effort across Kenya needed to achieve these targets.

Alongside British Antarctic Survey, we called on the public to become citizen scientists by searching for walruses in thousands of satellite images taken from space. With the aim of spotting changes to the populations over a period of five years, 544,885 images have each been reviewed 13 times by our 11,000 ‘walrus detectives’. The information gathered will help us to better understand the effect the changing Arctic is having on walrus populations – and, by extension, other Arctic species. We also created educational resources to engage young people with the project in the lead-up to COP26. So far, we’ve encouraged more than 2,000 pupils to get involved and to learn more.

Rhino Action Plan, which will set It detail ~~s OCTOBER NOVEMBER DECEMBER~~

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WWF-UK Annual Report and Financial Statements 2021-22

OUR SUCCESSES 2022

PUBLISHING LAND OF PLENTY

We published our Land of Plenty report, highlighting the untapped potential of farming to help tackle the climate crisis. This landmark report set out a clear and ambitious pathway to support a green transition across the agriculture and land use sector, from changing the ways we farm to changing our diets, and urged UK governments to get behind farmers who are shifting towards nature-friendly approaches DISCOVERING NEW SPECIES to reducing emissions. We used the report to call on ministers to bring CALL OF THE WILD IN THE GREATER MEKONG forward detailed plans to slash greenhouse gas emissions from RETURNS The Greater Mekong region is home farming by more than 35% by 2030, to iconic species including tigers while restoring nature. We launched a second series of our and Asian elephants. Scientists podcast, Call of the Wild , hosted announced they had recorded an by actor and WWF ambassador extraordinary 224 new species in Cel Spellman. Wildlife experts and 2020 in this vital biodiversity hotspot, familiar faces featured in this series including the Popa langur, a primate include broadcaster Fearne Cotton, previously unknown to science, as filmmaker Richard Curtis, and WWF well as a crescent moon spadefoot ambassadors including wildlife frog and an iridescent snake. These TV presenter Patrick Aryee and remarkable findings, painstakingly singer-songwriter Ellie Goulding. identified and recorded by hundreds The podcast, which offers listeners of scientists from universities, an insight into how each of us can conservation organisations and make a difference for our world, was research institutes around the world, nominated in the health, science and are compiled in a WWF report. Our education category at the Webby collective conservation efforts with Awards – the leading international governments, scientists, NGOs and awards for excellence on the internet. local communities can help ensure Series two has been downloaded more species like these continue to persist. than 46,000 times so far. JANUARY FEBRUARY MARCH 8

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65,000 THROUGH THE WILD INGLEBOROUGH PROJECT, MORE THAN 65,000 TREES HAVE BEEN PLANTED AND 200 HECTARES OF LAND RESTORED

ENGAGING COMMUNITY WITH WILD INGLEBOROUGH

Wild Ingleborough is an exemplar landscape-scale restoration project in the Yorkshire Dales we’re working on with Yorkshire Wildlife Trust. In the lead-up to the first anniversary of the project, we worked with the various partners to engage the local community through workshops, volunteering opportunities, oral history podcasts, an art festival, a short film, and a fund to support groups who face barriers to accessing the countryside to visit Ingleborough. The project continued to demonstrate CHALLENGING EVENTS how UK nature can help fight climate change by capturing carbon, with more RAISE VITAL FUNDS than 65,000 native trees planted, and 200 hectares of land restored. Father-daughter team Edward and Georgia cycled from London to Brighton to support our work. “We’ve chosen to support WWF for all the amazing work you do to sustain and enhance life on our precious planet,” they said. They achieved their target of completing the 54-mile ride in under five hours and raised an incredible £1,240 for us. Throughout the year, nearly 25,000 of our amazing supporters ran, walked, squatted and cycled to raise funds for us. Between them, they raised more than £1.5 million – from walking 100 miles in March to running the London Marathon – to support our vital work.

RESTORING HABITAT FOR KOALAS

Following the incredible public response to our wildfire emergency appeals, funding we provided to Australia has this year enabled community organisations to restore more than 350 hectares of koala habitat and plant 40,620 trees. Also, with our partner Climate Friendly, our Koala Friendly Carbon pilot project has successfully validated a new business model to channel significant investment into restoring koala habitat through Australia’s carbon farming industry. It’s proved commercially acceptable to land managers, and offers potential to help to restore thousands of hectares of koala habitat.

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APRIL MAY JUNE
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WWF-UK Annual Report and Financial Statements 2021-22

A MESSAGE FROM OUR CHAIR

WWF supporters, colleagues and huge numbers of people from all parts of the world marched through Glasgow during the UN climate summit in November. Joining them, I felt all around me an energy and a passion for change that was truly inspiring. World leaders could have been left in no doubt about the strength of feeling that they must step up and take bold action to tackle the grave threats facing our world. It filled me with optimism.

Yet combined with that optimism, I also felt incredibly frustrated that there continue to be those who subvert the process of creating the brighter future so many of us strive for so deeply. Yes, COP26 ended with some promising progress. But honestly, not enough. Experts tell us there is still time to save ourselves from the worst effects of a warming planet. But the clock is ticking and we are fast running out of road.

I was struck by banners in the crowd saying: ‘if not now… when?’

We can’t say we’re unaware of the problems. This year has been another where we’ve seen regular warning signs that our world, and all of us who rely on it, are facing increasingly severe pressures. Such as the terrible drought in east Africa, where we’ve been on hand to provide some support. And the appalling floods putting more than a third of Pakistan under water. Closer to home, there have been droughts in Europe and record UK temperatures rising above 40°C, with a subsequent increase in wildfires. These have put both people and wildlife at great risk.

Such indications point to a desperately urgent need for vastly more concerted action to transform the current systems that are driving the climate and nature crisis. Particularly when it comes to food and finance. We’ll only be able to restore threatened habitats and species if we do all we can to limit climate change and halt the destruction of nature by the food system. And it is only by restoring nature that we’ll be able to achieve a net zero future.

These are the very problems our strategy sets out to tackle. We shared last year a refined strategy. It is designed to give the best chance of achieving by the end of the decade the huge steps needed to meet the triple challenge of feeding a growing population, tackling the climate crisis and restoring nature. During the year, we’ve put this refined strategy into operation. It has been encouraging to hear positive feedback from all stakeholders we engage with, confirming they appreciate its clarity of vision. And that they fully understand why we are focusing on the goals we have set out – especially where they take WWF far beyond our more familiar realm of wildlife and habitat conservation.

But the food, climate and nature messages in our strategy are yet to pervade as deeply as they need to. So, at WWF we must do even more to engage people with this vital work. And of course, another year on, the window of opportunity to deliver the necessary transformational change by 2030 has diminished yet further. As has the chance of seeing nature’s vital signs improving by then. So, while being reassured our approach is the right one, we must strive even harder to deliver it and to press businesses and governments to act with greater urgency.

The UK government has many other challenges demanding attention – not least the cost of living crisis and the war in Ukraine and its wider impacts. Despite these, we need to see it stepping up its environmental commitments: more sustainable food and energy systems at home and abroad will make us more resilient to global shocks. Businesses continue to be active in making important promises, but we need to ensure their actions don’t fall behind.

There are, however, plenty of reasons for hope. As you’ll read in this annual report, we have achieved a great deal in the past 12 months, not least the breakthroughs during the UN climate summit. But we need to do more and at greater pace. For this, we need all the support we can get.

We hugely appreciate the incredible support we already have. Indeed, as inflation bites and food and fuel poverty become more widespread, it is all the more humbling to see so many people giving us their generous backing. We rely on this for all our successes. I would like to take this opportunity to thank each and every one of you who have supported us – whether financially, or by adding your voice to our campaigns or to promote our work. Thanks, too, to our much-valued corporate partners, every high-profile person who uses their influence to boost our work, and many more besides who share their expertise and enthusiasm. Your efforts never cease to inspire all of us at WWF.

Thanks also to my colleagues on the board of trustees for their support of the organisation and its good governance. I’m pleased to welcome four new trustees: David Barnes, a senior executive at Deloitte, who will take over as treasurer; Dr Rhian-Mari Thomas OBE, a green finance expert; Professor Jos Barlow, a leading expert in tropical forests; and Dr Jessica Omukuti who specialises in climate change adaptation and climate justice.

And I thank my colleagues at WWF for their unstinting resolve throughout another challenging year. As I witnessed at COP26, they are an impressive group who are dedicated to the task in hand.

With such ability and desire to rise to the many challenges, WWF is well-placed and ever more determined to do everything possible to bring our world back to life. Please join us in our mission.

Dave Lewis

THERE ARE PLENTY OF REASONS FOR HOPE. BUT WE NEED TO DO MORE AND AT GREATER PACE. FOR THIS, WE NEED ALL THE SUPPORT WE CAN GET

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WWF-UK Annual Report and Financial Statements 2021-22

10 TRUSTEES’ REPORT

A MESSAGE FROM OUR CHIEF EXECUTIVE

Other important breakthroughs that WWF pressed for included the commitment announced by the then chancellor to make the UK the world’s first net zero-aligned financial centre and an agreement, now supported by more than 140 countries, to reverse forest loss and land degradation by 2030.

Over the past year we have all witnessed stark reminders of the scale and accelerating speed of the climate and nature crisis facing our world.

As our latest Living Planet Report shows, the many pressures humanity continues to place on our planet are putting nature under threat like never before. We’re destroying our forests, polluting our rivers and oceans and causing devastating changes to the climate.

For me, the most powerful voices at the event were from those directly feeling the impact of the crisis. I was fortunate to meet Txai Suruí (pictured, right), an Indigenous activist from Brazil, who captured what was at stake very powerfully, saying: “I’m here to defend the Amazon not only for my people, not only for my territory, but for life itself.”

So, at the COP26 climate summit in Glasgow it was heartening to see an appetite for meaningful action for climate and nature. Our supporters helped us to reach every MP in the country through our We Won’t Forget campaign, calling on them to keep the climate promises they’ve made. This widespread public backing ensured climate and nature climbed the agenda at a vital time.

But since COP, we’ve faced huge challenges including energy and food security, conflict in Ukraine, the cost of living crisis, and most recently a concerning direction of travel from the new government on protecting the environment.

Although the overall outcome of COP26 lacked the urgency and ambition we all so desperately need, it kept a narrow window open to limit warming to 1.5°C – and it was good to see the crucial role of nature in achieving that target formally recognised at long last. I’m proud of the role WWF played in making that happen.

This will be at our peril: without nature, there is no safe climate and there is no food security. Nature is fundamental to the health and prosperity of people and planet.

We know others support our urgent call for action. More than 246,000 new people gave us their backing during the year. With our many existing supporters and corporate partners, they helped us to raise more than £91 million, which enabled us to increase the amount we spent on our conservation work around the world by more than £7 million.

As you’ll see in these pages, your support has led to some wonderful successes – such as an increase during the year of around 10% in the number of critically endangered black rhinos in Kenya, restoration of mangrove forests in Myanmar, and restoring koala habitat following the wildfires in Australia by planting tens of thousands of trees.

While we’ve achieved conservation successes, we’ve also had to focus increasingly on the causes of wildlife and habitat loss. And the single biggest driver behind this is the way we produce and consume food.

FOR ME, THE MOST POWERFUL VOICES AT COP26 WERE FROM THOSE DIRECTLY FEELING THE IMPACT OF THE CLIMATE CRISIS

I am enormously grateful to the huge numbers of supporters who have given so much to our work this year. Whether through your time, your expertise and influence, your campaigning actions, or by contributing to us financially, your incredible generosity provides the lifeblood to WWF. All our successes are thanks to you.

We’ve been working with retailers like Tesco, Sainsbury’s, Waitrose, M&S and Co-op to transform the impact of our shopping baskets and with our partner Aviva to push for net zero across the finance sector.

As we look to the future, we will continue to look for and promote innovative approaches to the biggest environmental threats to our amazing world. And we will continue to press politicians and business leaders both to be more ambitious and to deliver on the commitments they have made.

We have an incredibly challenging few years ahead of us if we’re to help save the planet. With your support, we can and must do everything possible to bring our world back to life.

Tanya Steele

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WWF-UK Annual Report and Financial Statements 2021-22

12 TRUSTEES’ REPORT

OUR FOCUS

WE’RE WORKING TO BRING OUR WORLD BACK TO LIFE

Right now, our precious world needs our help like never before.

Nature is in freefall – from our iconic species to fragile coral reefs and the biodiversity that makes up the fabric of life on Earth. This tragic loss shows no signs of slowing.

WWF’s Living Planet Report shows average population sizes of wildlife have declined by 69% since 1970 and our most precious landscapes such as the Amazon rainforest and the Arctic ice shelf are dangerously close to irreversible tipping points.

The last seven years were the seven warmest on record, globally, by a clear margin. Many places are experiencing more frequent extreme weather events, affecting people and nature with devastating consequences.

It’s not just a faraway problem. We’re seeing the effects on our own doorstep: the UK is in the bottom 10% of countries globally when it comes to the abundance of nature – and this year we experienced the hottest UK temperature on record.

At WWF, we want to halt the destruction of the natural world and make sure nature’s vital signs are restored by 2030.

We are the first generation to know we are destroying our planet and the last one that can do anything about it. A world without nature is one that cannot sustain life. That’s why we’re working to protect and restore nature and tackle the underlying causes driving the decline of precious species and habitats – especially the food system and climate change.

There is hope. We have the solutions and we know that when given a chance nature can and does recover.

With immediate action, and by working together, we can stop the catastrophic loss of nature and bring our world back to life.

THE THREATS

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 live in.

People and nature across the world are also experiencing the devastating impacts of climate change, which will increase substantially with every fraction of a degree of additional warming.

To ensure we hand future generations a stable, safe and thriving planet that can sustain all life on Earth, the science says we must address the climate crisis, transform the way we produce and consume food, and restore our rivers, seas and forests for the wildlife that live in them.

WHY WWF?

At WWF, we’re working hard to stop the destruction of nature and help bring our world back to life.

We’ve been protecting nature’s wonders for more than 60 years and our focus now is not just to protect our natural world, but to restore it.

We’re working globally with communities, companies, governments, scientists and supporters who have the power to transform our world.

We’re using scientific research, harnessing our global reach and influence, and – with the vital backing of our many supporters – working to make sure the natural world’s vital signs are recovering by 2030. We’ll do this in harmony with people and an unflinching respect for human rights.

Our strategy outlines the threat to our world and the links between food, climate and nature loss. We can only bring back nature if we fix the food system and halt climate change.

That is why we focus on:

• averting dangerous climate change

• creating a sustainable food system

• restoring threatened habitats and species.

We can bring endangered wildlife back from the brink of extinction. We can press the UK governments to deliver the promises they’ve made for the climate. And we can convince politicians and businesses to take action to reform the way we produce and consume food and reverse the loss of nature.

We can do all this thanks to our incredible supporters. Everything we do relies on their incredible generosity and their passion to act with us.

OUR VISION

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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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 2022. This does not cover the full scope of our work. Visit our website to find out more about our work: wwf.org.uk

GOAL EXPENDITURE

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2021-22
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£5.4M
2021-22
£6.6M
2020-21
£7.3M
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RESTORING 2021-22
THREATENED £27.3M
HABITATS AND 2020-21
SPECIES £23.4M
2021-22
GROWING £18.8M
SUPPORT 2020-21
£19.3M
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AVERTING DANGEROUS CLIMATE CHANGE

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

In recognition of our role supporting the COP26 commitment, we were invited to join the Transition Plan Taskforce – a multi-stakeholder group set up to develop a gold standard for transition plans.

2021-22 TARGET

We’ll press the UK government to commit to making it mandatory for UK-regulated financial institutions to publish their plans for aligning with the Paris Agreement.

Our achievements against this target were helped by more than 36,000 of our supporters who emailed their MPs to demand that the government keeps its climate promises.

The finance sector could be make or break for reaching net zero – because of who they lend to or where they invest our pension savings. So if we can align the sector with net zero and change what gets financed, we can encourage economic activity that benefits our planet – rather than harming it.

2021-22 TARGET

We’ll continue to advocate for the UK to apply a net-zero test to public spending. We’ll publish and apply a pilot net-zero test.

We saw a huge breakthrough in this area at the UN climate summit in Glasgow (known as COP26) when Rishi Sunak, as chancellor, committed to creating the world’s first net-zero finance centre in the UK and to requiring UK financial institutions and listed companies to publish net-zero transition plans. This development has moved the debate on private sector action on net zero from aspiration to implementation.

If we’re to have a prosperous future that protects climate and nature, it’s essential to ensure UK government public spending aligns with its net-zero climate targets. At WWF, we’ve developed a ‘net-zero test’ for the UK Treasury to apply to its Budgets and Spending Reviews, to assess if government tax and spending packages will help us achieve our climate targets.

It was a big win for us: it follows almost two years of coordinated action across civil society, industry, regulators and government. Our work this year to influence this breakthrough included publishing research ( Turning blue chips green ) which found three quarters of the UK’s biggest firms had not published clear climate target plans. Our findings strengthened the case for regulation.

This year, we developed a framework for the test, so it can model the emissions impacts of different spending commitments, such as green infrastructure and clean energy. In autumn, we applied the test to the March 2021 Budget and published a report on the results, demonstrating that the Budget contained just £145 million of spending on climate positive policies, versus over £40 billion on policies that will increase emissions. Our report generated strong media interest.

We continued to work alongside our NGO partners to push the UK government to commit to creating a Parisaligned finance sector. We also co-published a policy position piece with our partner Aviva, outlining our joint call to the UK government, and we engaged directly with government officials. And we worked with others in industry to demonstrate to the chancellor the business support for mandatory disclosure of transition plans and a demand for guidance on how this would be achieved.

We then applied the test to the Autumn Budget and Comprehensive Spending Review, demonstrating that the overall package was insufficient to get the UK on track for net zero. Following responses to the Comprehensive Spending Review consultation, including from us, the government committed to investing £116 billion in green priorities, in line with our recommendation.

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In the run-up to the summit, we launched our We Won’t Forget campaign, through which 36,000 of our supporters contacted their MPs, calling on them to keep the climate promises they’ve made.

We secured cross-party parliamentary support for the test, with endorsement from the Environmental Audit Committee, the Public Accounts Committee and key parliamentary champions. The Treasury also acknowledged the case for a net-zero test in its Net Zero Review; and its Net Zero Strategy referenced the need to ensure spending decisions are informed by their impact on net zero.

We engaged with the UK government’s COP26 team to input into their strategies and activities in the run-up to Glasgow, and called on them to show global leadership. And we worked with allies and partners to press for our priorities, such as the need to better integrate nature in the climate negotiations process.

The Committee on Climate Change (CCC), which advises the government on emissions targets, recommended introducing a net-zero test as a priority for the UK government three times during the year. Its most recent progress report referenced our work, as did the Institute for Government’s report on a net-zero test, along with industry bodies such as Energy UK.

Negotiators from the UK stated that WWF-UK played a key role in securing positive outcomes on nature in the Glasgow Climate Pact – especially through the concrete proposals we shared for the text. Three of our proposals appeared in the final Pact wording: recognising nature as key to keeping 1.5°C within reach; requesting countries to better include nature in their national climate plans and policies; and creating a new dialogue on oceans and climate change.

2021-22 TARGET

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

We capitalised on the strength of our international WWF network to ensure key countries signed up to the Glasgow Leaders’ Declaration on Forests. The declaration is a commitment to reverse deforestation and land degradation by 2030; it has now been signed by more than 140 presidents and prime ministers, including from Brazil, China and Indonesia. The countries represent over 85% of the world’s forests. This is a significant achievement that paves the way for greater collective and individual action from countries on ending deforestation. WWF was also instrumental in establishing the Forest, Agriculture and Commodity Trade Dialogue (see page 23 for more details).

The COP26 climate summit in Glasgow was a critical opportunity for the UK, as president and host, to demonstrate leadership and secure the action needed to help prevent climate breakdown. While the overall outcome was disappointing, the resulting Glasgow Climate Pact represents significant progress from previous agreements – especially in its formal recognition of the importance of protecting, conserving and restoring nature if we’re to achieve the Paris Agreement goals.

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WWF-UK Annual Report and Financial Statements 2021-22

18 STRATEGIC REPORT

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We demonstrated that we’re at the heart of the sustainable food and farming debate, with our chief executive, Tanya Steele, presenting the report at the Oxford Farming Conference. The government department in charge of net zero (BEIS) put our work on its ‘key reading’ list, alongside the National Farmers’ Union’s net-zero pathway.

2021-22 TARGET

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.

As we developed the pathway, we commissioned a series of sessions to gather views from 142 members of the public from all walks of life to inform our approach. They joined experts to discuss the food, climate and nature challenges facing UK land use – building a picture both locally and nationally. And, as you’ll see on page 21, we brought together the chief executives of five major retailers to press the government to deliver an ambitious agricultural policy.

More than 70% of the UK’s land area is farmed in some way, and our agriculture sector is responsible for 11% of UK domestic emissions, so solutions that encourage a transition to net zero in the farming sector are crucial.

This year we developed a nature-positive pathway to decarbonise UK agriculture and land use. We mapped this out in our Land of Plenty report, which we published in February. It forms the foundation of our work to secure a shared vision – with the UK governments, farmers and others – for landscapes that will support the UK’s target of keeping 1.5°C alive.

Our pressure on the Scottish Government contributed to more ambitious commitments to reducing emissions from agriculture. WWF Scotland and WWF Cymru successfully secured key food commitments in party manifestos; in Scotland this delivered a new Good Food Nation Act.

Our pathway outlines how to cut emissions from UK agriculture by at least 35% by 2030 (from 2018 levels) and turn UK land into a net carbon sink by 2040, while supporting farmers to shift to regenerative approaches, restore carbon-rich habitats and reduce methane emissions.

OUR 2022-23 PRIORITIES INCLUDE

We’ll influence the COP27 climate We’ll influence transition plans negotiations, working with WWF in the finance sector, ensuring colleagues across the network to there are robust standards for get sustainable food systems on climate and nature and a strong the agenda. legal and regulatory framework.

We’ll continue to work with the farming sector and influence the vision and policies of the UK governments on land use and agriculture to ensure they are compatible with a 1.5°C and nature positive future.

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.

that limit deforestation and land conversion; in the future they will collaborate on climate and ask for the government’s agricultural strategy to support climate and nature outcomes.

2021-22 TARGET

We’ll convene major UK food sector companies to lead change by agreeing ambitious climate and deforestation outcomes in their supply chains.

During the year, we also brought together the broader food industry through webinars and events, and published technical reports aligned to all seven of the areas covered by the WWF Basket. Through this work, we’ve supported industry and provided guidance for them to achieve the targets that we know we need to meet to halt nature loss and deliver a sustainable global food system.

Globally, the food and agriculture system drives 60% of nature loss – and in the UK, food accounts for more than a fifth of our domestic emissions and over 30% of our global climate footprint. At WWF, we’re working with the food industry to radically reduce this devastating impact.

During November’s Glasgow climate summit (COP26), we launched two closely-linked initiatives that have great potential to make a difference – the WWF Basket, and the Retailers’ Commitment to Nature. Through these initiatives, five major UK retailers pledged to take action for nature and work together towards our ambitious target of halving the environmental impact of UK shopping baskets by 2030. The five (The Co-op, Marks & Spencer, Sainsbury’s, Tesco and Waitrose) have a combined share of more than half the UK grocery market. The ambition to halve the impact of UK shopping baskets was first developed as a part of our partnership with Tesco; during this year we’ve expanded its impact by working with the additional retailers who share our vision.

Each retailer has committed to cut its emissions in line with science-based targets that would keep us on track to limit warming to 1.5°C. In addition, they will submit data to WWF each year, so we can monitor progress towards our target (our first progress report will be out in November 2022).

The five chief executives of these companies also came together to address some of the most challenging issues faced across the seven areas covered in the WWF Basket (agriculture, climate change, deforestation, diets, food waste, marine and packaging). The first of these sessions focused on establishing sources of soy

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We played a leading role among UK NGOs in addressing global deforestation. In addition to leading the work by Greener UK (a group of environmental NGOs) on due diligence legislation, we had a key role in the NGO Forest Coalition. As well as contributing to consultation responses and advocacy on the Environment Act, we were instrumental in the coalition’s work to set up, fund and provide a secretariat for the Global Deforestation All-Party Parliamentary Group – a group of MPs and peers we hope will play a significant role within Parliament on addressing deforestation for years to come.

2021-22 TARGET

We’ll advocate for the UK government to introduce laws or policies to remove deforestation from supply chains.

This year provided critical opportunities for removing deforestation from the UK’s supply chains. A key focus of our work was amending the Environment Act as it passed through Parliament. Proposals in the Act, developed after our advocacy, require companies to conduct due diligence to ensure their imports of ‘forest risk’ commodities such as soy and palm oil are not from illegally deforested areas. But this doesn’t include legal deforestation – a significant proportion of deforestation in UK supply chains. To address this, we organised the tabling of an amendment to the Environment Act requiring the UK government to set a target to reduce the UK’s global environmental footprint. Unfortunately this wasn’t passed, but we’re exploring other options to secure this target.

Tackling deforestation is a key element of the work we have been doing with supermarkets through the WWF Basket and beyond. Also, at COP26, we advocated for action that saw more than 140 countries sign up to the Glasgow Declaration on Forests. The countries committed to halting and reversing forest loss and land degradation by 2030. Twelve of them also committed to providing £8.75 billion in climate finance to the Global Forest Finance Pledge, including £1.5 billion from the UK.

After the Act became law in November, we contributed to the government’s consultation on the secondary legislation – regulations that will determine the commodities and companies the due diligence framework will affect. We commissioned a report, Designing Due Diligence , which examined how to ensure the regulations are as robust as possible, taking business recommendations into account. It was one of the most cited reports in consultation responses.

We mobilised the WWF network to input into the process and outcomes of the Dialogue. Our UK team promoted wider participation from our colleagues internationally, and successfully pressed for key governments including Brazil, Germany and Italy to endorse the initiative.

2021-22 TARGET

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 (FACT) Dialogue and drive action at the UN climate summit in Glasgow.

We also produced policy documents, aligned with the WWF network’s main priorities, including WWF’s Asks for the FACT Dialogue and Ideas for the FACT Working Groups , which successfully strengthened the ambition and robustness of the final FACT roadmap.

The Glasgow climate summit (COP26) was a critical moment to influence global leaders to take action to protect and restore precious forests threatened by commodity supply chains – and, in doing so, help create a sustainable food system.

We’d originally planned to produce a blueprint for what successful landscape restoration looks like, to influence the FACT Dialogue further still, but we decided it would be more appropriate for us in the UK to raise the profile of the initiative and accelerate the information flow from larger commodity producer countries in the WWF network.

A key initiative launched by the UK COP26 Presidency’s nature campaign, the FACT Dialogue, brought together 30 consumer and producer countries for the first time to commit collectively to a roadmap to accelerate the transition to sustainable commodity supply chains. The countries represent more than 75% of global trade in the key agricultural commodities (such as soy, palm, cattle and cocoa) that are driving deforestation and ecosystem conversion. The initiative set out principles and actions on four critical areas of work to achieving win-win solutions for forests and sustainable development – trade and markets; smallholder support; traceability and transparency; and research, development and innovation.

We took every opportunity to positively influence the agreed FACT roadmap, and we actively shaped and engaged in FACT Dialogue events and communications in the lead-up to and during COP26. Tanya Steele, our chief executive, joined a panel discussion at a FACT roundtable event during COP26. Kate Norgrove, our director of advocacy and campaigns, recorded a session about the importance of stopping deforestation in commodity supply chains for a FACT Dialogue global event we helped to shape. And we secured a seat for WWF in the FACT Multistakeholder Taskforce (a committee of civil society and business representatives directly engaged on the FACT Dialogue).

OUR 2022-23 PRIORITIES INCLUDE We’ll work with We’ll release the State We’ll deliver our Land of We’ll encourage one financiers to influence of the Nation report, Plenty pathway targets: million UK citizens to the development of a on progress against a decarbonisation take an active role standard for transition the Commitment for strategy for agriculture as consumers in a plans that incentivises Nature and identifying and land use, nitrogen shift towards more achieving a net-zero, key areas of action for budgets and take-up sustainable diets. regenerative agriculture 2023. We’ll continue of Environmental Land We’ll also increase sector in the UK. to make progress Management schemes public awareness of on deforestation, (with equivalent the impact of food climate and agriculture progress in Scotland on global climate outcomes by convening and Wales). goals and Sustainable businesses. Development Goals, reaching 10 million UK citizens.

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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 with support from our partners Reckitt, WWF-Brazil launched the Mercury Observatory, an online platform that shows the impacts of mercury and gold mining on local people’s health and wildlife. It spans more than 40 years and provides in-depth resources to call for an end to illegal gold mining and mercury use.

2021-22 TARGET

In the Amazon, we’ll continue to build partnerships and work with community-led initiatives to rehabilitate and restore nature and biodiversity.

And in Peru, our partnership with the Climate Group, the Tropical Forest Alliance and local government is working with farmers in Madre de Dios to promote restorative cattle ranching across 4,000 hectares of farmland. Amazonian forest is converted into cattle pasture more than into any other land use. This year, our UK-government funded project has enabled 300 farmers to be trained in regenerative cattle ranching techniques which involve low-tech measures to improve soil, integrate trees into the landscape and protect water flows. This is already increasing productivity, sequestering more carbon and improving biodiversity.

We know if we lose the Amazon, we lose the fight against climate change. So, it’s a priority for WWF to support its Indigenous peoples and local communities and help protect this vital region. Our Amazon work spans several countries, including Brazil, Colombia and Peru.

In Colombia, a major success for us this year was the launch of a hugely ambitious initiative – known as Heritage Colombia – an innovative funding mechanism of US$245 million to expand and improve the nation’s protected area system over the next 10 years. Heritage Colombia brings together the private sector, civil society and the Colombian government. We provided WWF-Colombia with the funding to play a pivotal role in its establishment.

2021-22 TARGET

We’ll launch our Land for Life programme across southern Kenya and northern Tanzania, securing wildlife habitats and increasing benefits to local people.

In Brazil we’ve seen worsening attacks and illegal invasion of Indigenous lands. So we’ve increased our support for partnering with key local organisations and Indigenous communities to support them in monitoring their lands to detect illegal activity and capture evidence. For example, in Rondônia state we’ve supported a local NGO, Kanindé, to build a remote monitoring system enabling the monitoring of invasions across 6.4 million hectares.

After last year’s record-breaking appeal for our ambitious Land for Life initiative, this year we started working on this four-year project together with local communities and our partners in the region – South Rift Association of Land Owners and Tanzania People & Wildlife. The project focuses on vast community lands, across more than 8,000 sq km of grassland savannahs, forests and freshwater systems. We aim to improve the wellbeing of more than 27,000 people while protecting wildlife such as elephants and lions. The area is under pressure from expanding agriculture, land degradation, poorly planned infrastructure development and a growing human population.

We also supported people from Indigenous organisations to amplify their call on the international stage (at the Glasgow climate summit, COP26) for greater recognition of the roles Indigenous communities play in tackling climate change and conserving forests. Governments, including the UK, pledged in Glasgow to provide £1.25 billion in direct funding to Indigenous peoples.

This year we’ve worked with local communities to ensure they are involved in designing and leading the work from the outset, and we put environmental and social safeguards in place to ensure people’s rights are protected.

We’ve recruited and trained 46 local people as community scouts in Kenya and 44 in Tanzania as human-wildlife conflict officers, along with 27 livestock guardians to protect community cattle. So far, we’ve provided each of the scouts with an average of 200 hours of training. In Kenya, this has already enabled more than 8,000 anti-poaching patrol days and the livestock guardians have helped uncover incidents of illegal logging, poaching, livestock predation and more.

We’ve drafted a set of priority actions for restoration across the project landscape in Kenya and promoted best practice for livestock management. And around 370 people have been involved in uprooting invasive plant species across 560 hectares of grazing land.

And through the project we mounted an emergency response to extreme drought conditions in Kenya, protecting important water sources and springs.

2021-22 TARGET

Through partnerships, we’ll continue to build UK-based projects and programmes – both land and sea – that respond to the triple challenge of feeding a growing population, tackling climate change and restoring nature.

Through our UK work we aim to demonstrate how to transform the use of land and sea to ensure nature can recover, help reach net zero, and produce sustainable food – with the participation of local communities.

We support landscape and seascape projects that demonstrate nature-based solutions that can be scaled up. They show how barriers can be overcome and how to gain social acceptability; we use them as evidence to underpin our advocacy and campaigning to catalyse transformative change.

One is our successful seagrass programme, which we’ve developed substantially this year. Restoring seagrass meadows stores carbon, helps to increase the resilience of coastal communities and provides habitat for marine life. Scoping phases are almost complete in both north Wales and

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The effects of Covid-19, not least through travel restrictions, continued to prove challenging this year, affecting the potential for impact across programmes globally. But nevertheless, we made progress and in some areas we’re already seeing impacts.

the Solent, and we’ve identified priority sites for seagrass restoration. We’ve engaged community members and other stakeholders in project design and both are on track to begin delivery this winter. And we’ve started a third new project in Scotland, with a strong partnership formed with six delivery partners.

Brimming with wildlife, the remaining forests of Sabah in Borneo store vast amounts of carbon. Sg Pinangah Forest Reserve, an important area in Sabah for orangutans, suffered heavy logging in the 1970s and ’80s. This year, Sabah’s forestry department accepted recommendations from WWF’s orangutan field team in Malaysia, which we support, to safeguard important orangutan habitat from being converted. Suitable areas in Sg Pinangah Forest Reserve were identified to be set aside for conservation – these will provide protection for orangutans, and will help to prevent local extinctions.

Also at sea, we’re funding and driving the first full mapping of Europe’s ‘blue carbon’ assets, such as saltmarshes, seagrass and kelp forests. This will highlight hotspots of these vital areas where nature captures carbon, helping make the case for avoiding damaging activities there, such as deep-sea mining.

On land, we’ve continued to work with the Rivers Trust and The Wildlife Trusts to reduce the impact of agriculture in Norfolk, the Soar, the Wye and Usk, and the Humber. Together, we’re supporting a shift to practices that help restore nature and mitigate climate change.

In Myanmar, we provided financial support to our WWF colleagues to promote mangrove conservation and restoration. Mangroves are important in mitigating climate change, protecting against risks posed by tsunamis and rising sea waters, and supporting the livelihoods of coastal communities. In the Ayeyarwady Delta, where only 28% of mangrove vegetation remains, we’re working with a local NGO partner to support two communities to develop a best practice model of community-based sustainable mangrove management. Work we’ve funded this year has seen improved management and restoration of 970 hectares of mangrove forests; it aims to serve as a demonstration project to other community forests along the Myanmar coastline.

Since January, we’ve kicked off new projects in Norfolk and the Soar that focus on restoring nature and species and increasing the resilience of local communities, which will scale up our landscape work. This has included a new methodology to identify the most appropriate sites to deliver natural flood management interventions in the River Soar catchment – using data and evidence to ensure resources deliver the maximum benefits for nature, climate and local communities.

2021-22 TARGET

We’ll develop plans to scale up work in at least two other international landscapes or seascapes to address nature, climate and sustainable development challenges.

In the Central India Landscape, home to around a quarter of India’s wild tigers, forest corridors connecting tiger reserves face various threats including habitat fragmentation, land use change and mining. Our support for WWF-India, working to reduce these threats, led this year to six tiger reserves receiving accreditation to CA|TS – a set of criteria that enables tiger sites to check that their management will lead to successful tiger conservation.

We’ve continued to focus on critical landscapes, seascapes and river basins across the globe, which over the coming years will be strongly positioned to deliver climate-resilient nature conservation and restoration, while upholding rights and improving the wellbeing of local communities.

OUR 2022-23 PRIORITIES INCLUDE

In Brazil, we’ll focus on We’ll develop an In southern Kenya and We’ll continue to work stopping legislation that integrated vision for northern Tanzania, with governments and harms the Amazon and land and seascapes in we’ll work with local local communities implementing a tool Pembrokeshire and partners, communities to support the to help tackle illegality Norfolk, created with and regional decisionrecovery of wild tiger in gold mining supply the local communities, makers to facilitate populations. We’ll chains, while supporting that responds to the effective governance, ensure governments the rights and triple challenge of cooperation and make meaningful territorial protection feeding a growing land-management, commitments for of Indigenous people population, tackling the mitigation of tiger conservation and local communities. climate change and human-wildlife conflict, over the next 12 years, In Colombia and restoring nature. and nature-based and strengthen Peru, we’ll facilitate livelihoods. international efforts regenerative farming to reduce illegal and restoration in wildlife trade. deforestation hotspots.

GROWING

SUPPORT

We’re urging as many people as possible to support our critical work and 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.

Another highlight was our Art for Your World project, which invited leading contemporary artists and the wider art community to unite for climate action ahead of COP26. The campaign raised a record £1 million through a Sotheby’s auction of artwork donated by Tracey Emin, Jadé Fadojutimi, Anish Kapoor and others.

2021-22 TARGET

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.

We’re incredibly grateful that despite an increasingly challenging environment, we have continued to inspire high levels of financial support. Our overall income increased by over £6 million to more than £91 million this year.

2021-22 TARGET

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.

However, despite increased levels of income and more than 246,000 new people supporting us, our total two-year active supporter base reduced slightly to just under 1.6 million as we improved the quality of our supporter data and engagement through deeper supporter experiences. Christmas was by far the best period for fundraising over the year with 62,000 new people supporting us through our adoption and membership products.

Climate change was the main focus of our autumn engagement campaign, in the run-up to COP26 in Glasgow. Our main goals were to increase the national conversation about climate and to galvanise support to hold decisionmakers to account on their promises for climate and nature, demanding greater action from political and business leaders at COP26.

Our philanthropic support had another good year, raising more than £10 million for the first time. We strengthened donor engagement, notably through key flagship events across the year – the highlight being our fantastic State of the Planet Address where business leaders, stakeholders, celebrities, philanthropists and influencers came together to support our We Won’t Forget Campaign, to hold world leaders to account in the run-up to the Glasgow Climate Summit. Our supporters helped us to reach every MP in the country through the campaign.

Through our campaign we engaged with every MP in the country – and inspired more than 36,000 of our supporters to send them emails. Our campaign communications reached millions and our spokespeople featured in more than 300 broadcast interviews during COP26 alone. We also had a strong presence at the climate marches during COP26, and nearly 600 donations were made to our new Climate Crisis Fund as a direct result of the campaign. We continued our climate theme, with great success, during our major fundraising period over Christmas.

Innovation was a strong theme throughout the year. We launched a new online hub which delivers regular additional content for our members. Other new products included Brave the Chill (a challenge that featured on The One Show ), Cub Club (for very young supporters), and the Cape Wrath Chairman’s Challenge (an epic trek in Scotland for philanthropists, ambassadors and celebrities).

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In spring we encouraged supporters to take action to help ‘bring nature back’. We ran our first brand radio campaign using the vocal talents of actress Jade Anouka, which drove 165 million impressions over a three-month period. Through our paid brand content and Earth Hour we promoted our My Footprint app as a way for people to reduce their environmental impact. This led to more than 16,000 new downloads of the app.

More than 60 landmarks across the UK took part in Earth Hour. Nearly 28,000 people joined the Facebook group, and a further 78 million were reached through the channels of supporting influencers and ambassadors, including Maisie Williams, Ellie Goulding and Iwan Rheon. We supported 22 community activities in Wales, working with some of the most multicultural communities in the country. The campaign resulted in our biggest increase in brand association with Earth Hour to date, and 84% of supporters surveyed said they were inspired to do more to protect our planet.

Despite a challenging year with other major world issues overtaking the environment in people’s concerns, our brand content enabled us to measurably increase awareness of WWF and our tracker survey results show the likelihood of people supporting WWF in the future remains stable.

2021-22 TARGET

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.

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

As well as continuing to deliver and develop our existing strategic partnerships, in July we launched an ambitious three-year, £5 million partnership with Aviva to scale up action on climate change in both the UK and Canada. This new partnership gives us the reach and influence to change the way financial services function in a sustainable economy; this year it strengthened our call on the UK government to ensure it delivers on its commitment to develop a net-zero finance centre. Aviva has also supported our community projects – including Wild Ingleborough, East Anglia and River Soar, and Firth of Forth – that focus on building climate-resilient communities and ecosystems.

We also continued to build our partnerships with HSBC and Tesco. The Retailers’ Commitment to Nature, launched at COP26, was driven by the Tesco partnership. It has been a major milestone in our work on transforming the global food system. With HSBC, our work included innovating nature-positive solutions across a number of landscapes.

This year we built on our existing partnership with Reckitt, launching a campaign with its Finish brand, called the Journey of Water. Fronted by WWF ambassador Simon Reeve, the campaign has focused on educating the UK public on where water comes from, asking everyone to use less water in their homes so there’s more left for UK wildlife. So far, we’ve reached eight million people with our message, and we aim to bring more new supporters on board through the campaign.

This year our 10-year partnership with Sky won Business Charity Media Partnership of the year for the Ocean Hero campaign, which inspired millions to help protect and restore our oceans and tackle climate change.

OUR 2022-23 PRIORITIES INCLUDE

We’ll raise our visibility and We’ll aim to raise more than We’ll develop our existing relevance among our supporters £97 million in income to support strategic partnerships and and the public, notably through our work and create more launch a major new one, a landmark BBC series, Wild Isles , opportunities for people to take focusing on our work in the as well as launching integrated action, to increase our active UK, as well as other mid-size engagement moments to supporter base to 1.8 million. partnerships. showcase our organisation as a leading voice on nature and climate change.

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OUR PEOPLE

Enabling our staff to thrive, individually and collectively – and taking every opportunity to ensure our culture supports an inclusive, safe and empowering environment – are key priorities for us. Progress in this area is helping our people to feel even more engaged with our mission as they work to bring our world back to life.

We’re focusing on strengthening WWF-UK’s position as an inclusive and capable organisation by attracting, developing and retaining diverse and talented staff, while improving our organisational effectiveness and ensuring we get all the basics right, delivering relevant, simple solutions.

Covid-19 continued to have a long-lasting impact on the physical and mental health, wellbeing and work-life balance of our employees. During the year, we ensured that health, wellbeing and employee engagement remained our top priorities, by listening to our colleagues and responding with supportive programmes. We ran workshops on resilience and supported colleagues coping with challenges relating to health and absence.

We increased visibility among staff of our commitment to another priority for us: diversity, equity and inclusion (DE&I). We have worked with our staff network groups to celebrate key events in the diversity calendar, including LGBTQ+ history month, black history month and Pride, as well as marking the anniversary of George Floyd’s murder. We have offered opportunities to support our DE&I work, with a new virtual collaboration space and further DE&I training programmes.

We also took effective actions to reduce both our gender and ethnicity pay gaps: we’ve more than halved our mean gender pay gap since 2017 (from 18.2% to 8%), and we’ve achieved a downward trend in our ethnicity pay gap over the past two years.

We're working with the Puerto Rastrojo Foundation and the Indigenous community of La Chorrera in the heart of the Colombian Amazon. Here, Chela Elena Umir – from the community of La Chorrera – helps assess her forest's ecosystem services.

Following the pandemic lockdowns, as organisations globally adjusted their working practices, we have gained valuable insights and developed the best solutions for the future of work at WWF-UK. We have evaluated our phased return to develop the optimal hybrid working solution that balances the needs of the organisation with those of teams and individual staff members.

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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) increased by £6.7m (8%) from £84.3m in the previous year to £91.0m.

MEMBERSHIP AND DONATIONS FROM INDIVIDUALS

OPERATING STATEMENT

OPERATING STATEMENT
	Year ended 30 June 2022 Year ended 30 June 2021 (Restated*)
	£m £m
Incoming resources excluding gifts in kind Gifts in kind Incoming resources	90.9 84.0 0.1 0.3
	91.0 84.3
Costs of raising funds and reorganisation costs
Cost of raising funds Reorganisation costs	22.8 20.6 0.2 -
	23.0 20.6
Net income available for charitable purposes	68.0 63.7
Expenditure on charitable activities
Averting dangerous climate change Creating a sustainable food system Restoring threatened habitats and species Growing support Strengthening our priority WWF partner ofces Building capacity in the network WWF Network priority support projects Gifts in kind attributable to charitable activities Net (expenditure)/income before gains on investments Net (loss/)gain on investment assets Net (expenditure)/income Fair value movements on cash fow hedges Net (decrease)/increase in reserves	6.4 5.4 6.6 7.3 27.3 23.4 18.8 19.3 1.4 1.1 6.1 5.2 2.5 - - 0.3
	69.1 62.0
	(1.1) 1.7 (1.1) 2.9
	(2.2) 4.6 0.1 -
	(2.1) 4.6

• Prior year expenditure on charitable activities has been restated to reflect the reallocation of some costs previously reported under Creating a Sustainable Food System to Restoring Threatened Habitats and Species.

Income from individuals increased by £1.1m from £42.8m to £43.9m. This was partly attributable to an increase in the income from direct debit giving. Donations from individuals also benefited from funds raised through the Art for Your World project (see page 27 for further details). Against this, one-off giving was less this year owing to the fact that the previous year included income from an appeal in response to fires in the Amazon.

CORPORATE DONATIONS AND INCOME

Income from our corporate partnerships increased by £2.0m from £14.9m to £16.9m. This is attributable to the launch of our new partnership with Aviva (further details are provided on page 28) which is funding climate change work in the UK and in Canada. This was partly offset by the fact that last year’s income included a payment to cover the remaining period of our current partnership with Sky. Corporate donations and income also includes our continuing partnerships with HSBC, Reckitt and Tesco.

AID AGENCIES AND GOVERNMENT GRANTS

Income from aid agencies and government grants is detailed in Note 4 to the accounts. The increase of £1.1m includes new funding from the FCDO for the improvement of water resource management in Pakistan and funding from the Department for Business, Energy and Industrial Strategy (BEIS) for accelerated climate transition programmes in Kenya, Malaysia and Peru.

LOTTERY PROMOTIONS

Income from lottery promotions reduced by £1.8m to £0.3m as no lottery income was received from People’s Postcode Lottery as grants were instead received from the Postcode Planet Trust which receives its funding from People’s Postcode Lottery. The remainder of the lottery income was raised via WWF-UK’s own lottery which we launched in early 2021.

CHARITABLE TRUSTS

Income from charitable trusts increased by £4.1m to £8.6m. We received £4.0m from the Postcode Planet Trust, which receives its funding from People’s Postcode Lottery.

EXPENDITURE

The cost of raising funds increased by £2.2m to £22.8m. This was mainly due to an expansion of face-to-face fundraising activities as the UK emerged from the pandemic. However, the cost of fundraising as a proportion of income (excluding gifts in kind) remained constant at 25%.

There was an increase of £7.1m (11%) in our charitable activity expenditure, from £62.0m to £69.1m. This was mainly attributable to increased expenditure on the following programmes, all of which are listed in Note 5 to the accounts:

• An increase of £1.4m in our work in east Africa, most of this being related to the launch of the Land for Life programme described on page 24.

• An increase of £1.1m in our work in the Amazon described on page 24, which includes work funded by Reckitt aimed at working with communities to protect and restore the environment in the Tapajos river basin in Brazil.

• An increase of £0.9m in our contribution to the funding of the WWF International Secretariat, to support its conservation work and its programme offices. This increase mainly reflects the fact that activities at WWF International in the prior year were impacted by the Covid pandemic. In 2021/22, activity levels were able to return to normal.

• An increase of £0.9m in the wildflower projects funded by Reckitt.

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• An increase of £0.8m in our seagrass work in the UK as described on page 25.

• An increase of £1.0m in our work in Nepal, which focuses on the surveying and management of critical habitats for snow leopards and tigers and on working with communities to enhance their lives and enhance biodiversity.

• An increase of £0.5m in funding of the Coral Rescue Reef Initiative, a global initiative led by WWF which aims to conserve coral reefs around the world with the best chance of surviving the threats posed by climate change.

BALANCE SHEET AND RESERVES

The net expenditure for the year of £2.2m, offset by £0.1m gain in cash flow hedges, resulted in a reduction in total reserves from £68.8m to £66.7m.

The decrease in total reserves consisted of a decrease of £7.1m in unrestricted funds (to £33.1m), an increase of £5.3m in restricted funds (to £28.1m) and a decrease of £0.3m in the value of endowments (to £5.5m).

The reduction in unrestricted funds comprised decreases in general reserves of £6.0m (see below) from £22.8m to £16.8m, and £1.2m in designated reserves (including unrestricted funds held as fixed assets) from £17.2m to £16.0m.

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 organisation has sufficient cash and cash investments and reserves to continue to operate. The financial projections have been prepared on the basis of a number of scenarios so the organisation is prepared for different levels of potential impact with regards to the economic environment risks. 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 decrease in designated reserves is detailed in Note 21 to the accounts below. The decrease of £6.0m in general reserves can be summarised as follows:

Reserves

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	£m
General reserves at 1 July 2021 Net expenditure in unrestricted funds Decrease in designated reserve for fxed assets Decrease in designated reserve for the Living Planet Centre Decrease in designated reserve for Wild Isles General reserves at 30 June 2022	22.8 (7.2) 0.6 0.4 0.2
	16.8

WWF-UK’s 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 reviewed the requirement for general reserves and decided to retain a range of between £12m and £16m (approximately 10 to 13 weeks of budgeted unrestricted funds expenditure).

The free reserves level at the end of the year was reduced to less than £1m above the top of the target range for free reserves. This was broadly in line with what had been planned for the year, particularly the investment in a number of strategic projects aimed at enhancing elements of our programmatic work and our engagement with supporters and the public.

Fixed assets (including investments) decreased by £1.7m and net current assets by £0.4m as a result of the net expenditure for the year detailed above.

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34 STRATEGIC REPORT

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, monthly progress reviews by the Executive Group and quarterly progress reviews by trustees.

• A new operating model was established during 2021/22 and is now fully embedded. It ensures clear governance and decision-making at the right levels and emphasises the importance of programme and project management excellence. Key to the effectiveness of the operating model are the Goal Boards which ensure that projects are focused on our strategic goals and that decisions are made in line with the strategy. Goal Boards review project reports every month, through which they monitor delivery and financial performance, and manage risks and issues.

• The Strategic Delivery Group and the Restricted Funds Group. These forums sit above the Goal Boards and Goal Boards can escalate risks and issues to them. Among other responsibilities, these groups ensure there is adequate assessment and escalation of risk and focus on delivery of the strategy.

• Annual performance targets and delivery plans, with actual performance and finances monitored monthly against those plans.

• A risk management framework. Project level risks are managed by project managers. Strategic risks are managed by Goal Boards. The most serious strategic risks are captured on the organisational risk register. Risks are monitored monthly by Goal Boards, escalated as needed and formally reviewed on a quarterly basis by the Executive Group and the Audit Committee. At each quarterly review meeting, there is scrutiny of the top risks and of the controls in place and further actions are identified where necessary. The top risks reported to the Executive Group and Audit Committee are summarised (right).

• 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 clearly defines the scope of authority delegated by the trustees and which matters are 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.

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Risk Mitigation
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Risk	Mitigation
Cyber Critical cyber attack could take down our systems, resulting in loss of sensitive data, GDPR breaches and/ or substantial business disruption, potential fnes and reputational damage.	• All laptops have antivirus software and are managed centrally to deploy security updates. • Limited number of systems exposed to the internet, all fltered through frewall access control lists. • Admin accounts are protected with complex passwords, multi-factor authentication, and privileged identity management. • Mandatory information security, cyber security and GDPR training for all staf with periodic security reminders and announcements. • Data protection manager in post. GDPR policies and procedures in place. • Daily data back-ups and site recovery.
Finance Not being able to meet income targets or increasing costs, afecting our ability to achieve our strategic objectives.	• Robust high income and high growth income generation strategy portfolio approach. • 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 out-turns for the year. • Regular monitoring of supporter attrition and recruitment targets. • Integrated budgeting and planning processes. • Quarterly forecasts to reassess fnancial position and adjust plans. • Regular long-term fnancial planning to ensure the organisation’s longer- term plans are fnancially 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.
People Ability to attract, coach, develop and retain talented colleagues, having an impact on performance and our ability to deliver our ambitious strategy. Employee mental health and wellbeing as employees adjust to hybrid working post-Covid.	• Diversifying recruitment; new sourcing pools and creative resourcing. • A new hybrid working arrangement enabling greater fexibility in working practices and locations. • Signifcant investment in leadership development to maximise employee engagement and performance. • A comprehensive wellbeing strategy with holistic support provision, employee assistance and occupational health support.
Reputation Critical and sudden impact on reputation and brand leading to a signifcant and sharp reduction in fundraising and audience engagement.	• Roll-out of global values with localised behaviour frameworks; adherence to WWF global network standards. • Global whistleblowing and escalation framework, and local complaints policy. • Improving due diligence processes in respect of partners and suppliers we contract and work with. • Continued progress in the review and improvement of the various operational and programmatic standards that are in place for the WWF network. • Approval processes for external communications to ensure they are consistent with our brand and strategy.

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36 STRATEGIC REPORT

• Safeguarding • A robust Environmental and Social Safeguarding Framework across the WWF network, including a safeguards screening tool, a tiered mechanism

• Incidents could affect for communities to raise complaints and grievances, and a global response

• communities we work protocol for escalating serious complaints. Mandatory training has been

• with and colleagues rolled out to all WWF staff and trustees. A global safeguards unit is in WWF and partner responsible for implementing and maintaining the safeguards framework.

Incidents could affect communities we work with and colleagues in WWF and partner organisations.

• 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 and vulnerable adult safeguarding policies and processes have been updated and the governance framework strengthened. There are two trustees with safeguarding experience on the board and a Lead Safeguarding Trustee has been appointed. 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 countries where we fund sectors and governments. priority work, and a lack of global political ambition to address the biodiversity and climate crises.

• Providing funding to build capability in other WWF offices. • Liaising closely with other WWF offices to monitor local circumstances.

Delivery

There are many global risks that can hinder • Supporting WWF offices to strengthen staff safety policies and develop delivery of programmatic frameworks to support defenders. work we are funding overseas (Covid, natural • Strong coalition-building approach with civil society and Indigenous disaster, civil unrest, peoples’ organisations. conflict, political opposition). • Planning for different political scenarios.

• Supporting WWF offices to strengthen staff safety policies and develop frameworks to support defenders.

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’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 non-operational subsidiaries, WWF Global Climate Action Lottery Limited and WWF Thriving Habitats and Species Lottery Limited, were dissolved during the year.

WWF NETWORK

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.

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38 TRUSTEES’ REPORT

TRUSTEES

The board of trustees is the governing body for WWF-UK.

It 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.

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.

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 adheres to the Charity Governance Code and conducts regular external assessments of its effectiveness.

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 committees meet regularly and report back to the board on key topics discussed and any decisions taken.

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.

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:

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, and succession planning for, senior executives of WWF-UK.

A detailed skills and diversity audit of the board was conducted in August 2020 and updated in December 2021. This regular exercise informs the recruitment of new trustees to the board. Trustee positions are widely and openly advertised and searches carried out among a range of networks in order to attract a diverse range of candidates. A full equality impact report for new trustee recruitment is presented to the Nominations and Remuneration Committee. New trustees are 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. New trustees also receive 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.

• 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 2022 was 12. 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 the work of our talented and motivated people. Our talent management approach includes the setting of clear leadership standards that reflect our core values, regular performance and development reviews (PDRs) and a suite of learning and development. All this 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 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 weekly all-staff ‘Get Together’ sessions to inform staff about our work, initiatives and planned changes. We are committed to measuring employee engagement – we run an annual survey – and building and delivering on action plans to respond to employee feedback. We consult with colleagues on strategic and transformational change through focus groups and surveys. 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. Our inclusion agenda is informed and shaped by our DE&I ambassadors and active network groups.

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 continues to adhere to the ISO20400 standard for sustainable procurement and continues to utilise a sustainable procurement questionnaire 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-UK, 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 to or meet with key WWF-UK staff, to ask questions and discuss WWF’s work. 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. 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 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.

SCHOOLS AND YOUNG PEOPLE

Our children are living in the world we have created and are affected by the impacts of biodiversity loss and climate change. WWF has a key role to play in educating and inspiring young people, so they can survive and thrive in this changing world. Our support for young people is informed and led by our Youth Ambassadors. The Youth Ambassadors support and inspire their peers to use their voices by developing and taking part in campaigns. They have attended and spoken at climate events and shared their stories online. Working with the Scout Association, we inspired millions of young people around the world to take individual actions to reduce climate change, through #PromiseToThePlanet. We enabled the voices of young people in the UK to be placed at the heart of COP26 in the Forest of Promises. We supported the production of an award-winning documentary that featured six young climate activists from across the globe.

WWF works closely with partners in WWF network offices, and environmental and education organisations to deliver programmes informed by evidence. We have developed a new sustainable careers programme, which provides careers advice, skills development programmes and inspirational speakers from businesses. Working with the Reading Agency, we inspired half a million children visiting libraries across the UK. We developed new curriculum-linked primary and secondary school resources, and hosted on our own and partner websites enabling a wide pool of teachers to access them. WWF’s climate change resources and plastics resources are the most downloaded topics. Our virtual Live Learning programme has grown significantly and we now reach more than 60,000 students annually. We have significantly grown our teacher audience over this year, and have put new systems in place systems to monitor the diversity of our teacher and pupil audiences.

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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 enter into Partnership Agreements with key WWF offices, where we hold ourselves to account 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. A WWF-UK safeguards expert has supported further training on how the formal safeguards process can be used to enable local communities to be involved in planning, implementation and monitoring.

As a result of our work on safeguards in general we see a greater focus on community consultation as part of planning, so that their input is informing programme design and implementation. One example of this is the Defra-funded programme in the south of Kenya and north of Tanzania where WWF teams and local partner organisations piloted participatory planning approaches, writing up their findings from this process as a guide to share with the wider WWF network. Recognising that improving our practice takes time, WWF-UK continues to set aside additional funds for direct support on working with local communities and Indigenous peoples to other WWF offices.

OTHER NGOS WWF-UK WORKS WITH

WWF-UK is working in close partnership on Wild Isles with both RSPB and the National Trust, to develop and deliver a broad public engagement campaign for the restoration of UK nature around a BBC TV series. We are collaborating on public engagement, communications, mobilisation, private sector advocacy and political influencing, with shared funds, governance and stakeholder management. The Wild Isles programme will also bring in the sector more widely, with an invitation to support and engage with the delivery of the People’s Plan for Nature in 2023.

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.

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 and are steadily increasing as we return to our offices.

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 sustainability 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 and its equivalents in the other nations of the UK bring together hundreds of organisations of all sizes to campaign on engaging ever more people to raise their voices on climate action.

The Wildlife and Countryside LINK and its sister LINK organisations in the other nations of the UK bring together hundreds of organisations to work collectively 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 UK node of CAN.

This year, WWF-UK has also joined the Warm This Winter coalition – a group of leading anti-poverty and environmental organisations – to campaign for practical measures to tackle the cost of living crisis through an environmentally sustainable energy future.

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STREAMLINED ENERGY AND CARBON REPORTING

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

Our FY22 (July 2021–June 2022) Sustainability Report will be available in November 2022. WWF-UK does not have Scope 1 emissions.

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Current performance Past performance
FY22 (2021-22) FY21 (2020-21)
Energy consumption used to England – 572,564 England – 558,913
calculate emissions – electricity Scotland – 8,635 Scotland – 7,912
(kWh)
Wales – 5,401 Wales – 5,079
Emissions from combustion of England – 121.6 England – 118.7
purchased electricity (Scope 2) Scotland – 0 Scotland – 1.7
(tonnes CO2e)
Wales – 1.1 Wales – 1.1
Total gross Scope 2 emissions 123 121
(tonnes CO2e)
Intensity ratio for the above 0.30 0.31
gross emissions (Scope 2)
Intensity ratio: tonnes CO2e per
full-time equivalent staff
Emissions from reimbursed 2.3 1.3
business travel in rental cars
or employee-owned vehicles
(Scope 3) (tonnes CO2e)
Emissions from other business 56.7 0.5
travel including air, rail and road
(Scope 3) (tonnes CO2e)
Methodology: GHG Reporting Protocol – Corporate Standard
Electricity emissions reduction • Review of monthly Building Management System
actions taken in FY22 and meter readings, enabling areas of high use to be
identified and settings altered in all three offices.
• All new technology and appliances reviewed for energy
performance to ensure usage remains low.
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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 line with the Charity Governance Code, we conduct an external review of the board every three years. Our last review was in 2021. The findings were reported to the board in October 2021 and the action plan put in place to address the recommendations is largely complete. Governance is also reviewed on an annual basis as part of the end of year assurance process.

GRANT-MAKING POLICY

At WWF-UK we make grants in line with our 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 long-running 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 our WWF network offices have sub-grantees who co-implement parts of many projects and programmes. During the last year, WWF-UK has continued its work on due diligence. This work includes documenting and tracking alignment to WWF’s policies, standards and practices across WWF offices and sub-grantees. 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 conserve natural resources and ecosystems because we know the health and biodiversity of our environment is inextricably linked to people’s wellbeing, both in the short and long term. We campaign to limit climate change to protect people from the impacts which the warming of our planet is already bringing, such as extreme weather events, rising sea levels and adverse effects on food production. We promote and support scientific and educational studies, research and projects and publication of scientific and educational works in order to raise public awareness of environmental issues and enhance the effectiveness of our work. 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 at various points during the year.

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 contribute consistently to the charity’s aims and objectives for the benefit of the general public.

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 material strategic corporate partnerships are subject to due diligence and review by the Restricted Funds Group and appropriate Goal boards to ensure effective oversight.

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46 TRUSTEES’ REPORT

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, 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. This year we have also reviewed and updated our safeguarding policies and processes for people in vulnerable circumstances.

Complaints

In 2022, we consolidated and further embedded our complaints policy and process within the organisation. For the financial year ending 30 June 2022, we received 56 complaints (2021: 21) 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.

REMUNERATION PHILOSOPHY, PRINCIPLES AND 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.

The organisation typically reviews pay awards to all staff annually, and the approved budget for any pay increases for executives aligns with that for the whole organisation. The annual pay award is informed by the cost of living, market pay movements and affordability.

We are currently developing our reward and recognition programmes to enable greater engagement and motivation of colleagues, the impact of our work and to enhance our value proposition.

GENDER PAY GAP

WWF-UK first published its gender pay gap data as at April 2017 and reported a mean gender pay gap of 18.2% (median 16.8%). The latest published mean gender pay gap, for April 2021, was 12.2% (median 12.5%). Our gender pay gap continues to reduce and for our April 2022 data we will be reporting a mean of 8.0% (median 10.7%).

WWF-UK has not yet formally reported on the various ethnicity pay gaps. However, we have started to improve the collection and quality of our diversity data and are tracking and monitoring pay across the various race groupings, considering intersectional data too. Our median ethnicity pay gap for April 2022 was 3.0% and the mean was 8.0%.

Addressing all pay gaps is one of our key metrics for our organisational performance and we are committed to organise, select, recruit, reward and develop all staff on equitable and inclusive terms, taking positive action as needed to achieve equity.

INTERNAL AUDIT STATEMENT

Our internal audit team has assessed that the adequacy and effectiveness of the organisation’s framework of governance, risk management and internal controls for the financial year ending 30 June 2022 provides reasonable assurance to support achievement of the organisation’s objectives.

The trustees’ report and strategic report were approved by the board of trustees on 20 October 2022 and were signed on their behalf by:

Dave Lewis

Chair of the board of trustees

Reward and recognition at WWF-UK reflects the impact we all have on our objectives and our culture in a way that nurtures talent, is sustainable, and considers all aspects of what it means to work for the organisation. Our principles are about being fair, purpose driven, taking a holistic approach and being forward looking. Our reward policy is designed to be inclusive and transparent and to enable the attraction and retention of talent in our organisation.

Our senior executive team is remunerated in line with all staff in the organisation. All posts are evaluated using Mercer’s job evaluation framework and pay is typically set within a pay range around the median of the marketplace for similar roles in comparable organisations. These include large UK charitable organisations of similar size and complexity to WWF-UK.

Individuals are recruited through a competitive process and appointed within the appropriate pay range for the post, depending on skills and competencies and evidence of behaviours being aligned with our core values.

Full pay equality impact assessments are conducted before each appointment, and specific attention is given to gender and ethnicity pay, so we can continue to reduce our pay gaps. Our organisation is accredited by the Living Wage Foundation, and we are committed to never paying our employees less than the real living wage.

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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 2022 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 2022 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 trustees’ 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 company’s or the group’s ability to continue as a going concern for a period of at least twelve 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 trustees’ 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 non-compliance 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 20 D ecember 2022

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 2022

	Unrestricted funds Restricted and endowment funds Total 2022 Total 2021
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	28,113 15,759 43,872 42,810 1,495 9,628 11,123 10,769 4,216 4,424 8,640 4,523 13,539 1,813 15,352 15,419 167 - 167 342
	47,530 31,624 79,154 73,863
Charitable activities
Aid agencies and government grants 4 Corporate income Income from non-governmental organisations	- 1,795 1,795 710 - 271 271 418 250 2,135 2,385 1,827
	250 4,201 4,451 2,955
Other trading activities
Corporate income Lottery promotions Other trading income	613 4,848 5,461 3,698 348 - 348 2,055 859 95 954 1,188
	1,820 4,943 6,763 6,941
Investments 3	667 2 669 600
Total income Expenditure on:	50,267 40,770 91,037 84,359
Raising funds
Costs of raising voluntary income Investment management fees Total expenditure on raising funds 6 Reorganisation costs 6 Total expenditure on raising funds and reorganisation costs 6 Net income available for charitable activities	16,813 5,805 22,618 20,469 175 47 222 209
	16,988 5,852 22,840 20,678 157 - 157 -
	17,145 5,852 22,997 20,678
	33,122 34,918 68,040 63,681

Consolidated statement of financial activities for the year ended 30 June 2022 continued

----- Start of picture text -----
Restricted and
Unrestricted endowment Total Total
funds funds 2022 2021
Notes £’000 £’000 £’000 £’000
Total expenditure on raising funds and reorganisation 6 17,145 5,852 22,997 20,678
costs brought forward
Charitable activities
----- End of picture text -----

Charitable activities 5,6 Gifts in kind 25 Total expenditure on charitable activities Total expenditure Net (expenditure)/income before gains on investments Net (loss)/gain on investments Net (expenditure)/income Fair value movements on cash fow hedges Net movement in funds Total funds brought forward 21 Total funds carried forward 21	39,437 29,696 69,133 61,593 10 - 10 342
	39,447 29,696 69,143 61,935
	56,592 35,548 92,140 82,613
	(6,325) 5,222 (1,103) 1,746 (869) (234) (1,103) 2,907
	(7,194) 4,988 (2,206) 4,653 83 - 83 19
	(7,111) 4,988 (2,123) 4,672 40,191 28,655 68,846 64,174
	33,080 33,643 66,723 68,846

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 2022

	Group 2022 Group 2021 Charity 2022 Charity 2021
Notes	£’000 £’000 £’000 £’000
Fixed assets Intangible assets 11 Tangible assets 12 Investments 13 Total fxed assets	675 1,442 675 1,442 13,372 13,818 13,372 13,818 26,486 26,964 26,486 26,964
	40,533 42,224 40,533 42,224
Current assets
Stocks 14 Debtors 15 Investments 16 Cash at bank and in hand Total current assets	1,080 794 714 500 5,291 6,377 6,318 5,666 3,345 3,336 3,345 3,336 27,606 26,461 24,703 25,509
	37,322 36,968 35,080 35,011
Current liabilities
Creditors: amounts falling due within one year 17	(11,132) (10,346) (8,896) (8,395)
Net current assets	26,190 26,622 26,184 26,616
Net assets
	66,723 68,846 66,717 68,840
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	16,827 22,813 16,821 22,807 305 222 305 222 15,948 17,156 15,948 17,156
	33,080 40,191 33,074 40,185 5,568 5,849 5,568 5,849 28,075 22,806 28,075 22,806
	66,723 68,846 66,717 68,840

The net movement in funds for the financial year dealt with in the financial statements of the parent charity was negative £2,123,000 (2021: £4,672,000).

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2022

----- Start of picture text -----
2022 2021
£’000 £’000
Cash flows from operating activities:
Net cash provided by operating activities 1,259 2,123
Cash flows from investing activities:
Dividends and interest from investments 669 600
Proceeds from the sale of intangible assets - 963
Purchase of intangible assets - (390)
Purchase of property, plant and equipment (149) (295)
Proceeds from sale of investments 5,428 3,199
Purchase of investments (6,542) (3,650)
Decrease/(increase) in cash held for fixed asset investments 489 (136)
(Increase) in cash held for current asset investments (9) (8)
Net cash (used in)/provided by investing activities (114) 283
Change in cash and cash equivalents in the reporting period 1,145 2,406
Cash and cash equivalents at the beginning of the reporting period 26,461 24,055
Cash and cash equivalents at the end of the reporting period 27,606 26,461
Reconciliation of net (expenditure)/income to the net cash flow from operating activities
Net (expenditure)/income for the reporting period (as per the statement of financial activities) (2,206) 4,653
Depreciation charges 1,621 1,679
Loss/(gains) on investments 1,103 (2,907)
Dividends and interest from investments (669) (600)
(Increase) in stocks (286) (382)
Decrease/(increase) in debtors 1,157 (367)
Increase in creditors 539 47
Net cash provided by operating activities 1,259 2,123
Analysis of cash and cash equivalents
Cash in hand 27,606 26,461
Total cash and cash equivalents 27,606 26,461
----- End of picture text -----

The financial statements were approved by the trustees on 20 October 2022 and signed on their behalf by:

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

1. CHARITY INFORMATION

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.

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.

Income

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.

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.

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: in the prior year, WWF-UK received proceeds of lotteries held by People’s Postcode Lottery (PPL). WWF-UK had no ability to alter the price of tickets, determine the prizes or reduce the management fee. As such, PPL was treated as acting as the principal. Net proceeds due to WWF-UK were recognised under lottery income in the statement of financial activities. The analysis of the proceeds is detailed in Note 32. For the current year, grants were received from the Postcode Planet Trust which receives its funding from People’s Postcode Lottery. These are accounted for under charitable trust income.

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.

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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.

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.

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.

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 3 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

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.

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

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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.

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:

• 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
	2022 2021
	£’000 £’000
Dividends and fxed interest Bank interest Other interest	643 580 26 19 - 1
	669 600

4. AID AGENCIES AND GOVERNMENT GRANTS*

----- Start of picture text -----
2022 2021
£’000 £’000
Major grants from aid agencies and governments include funds from:
Foreign, Commonwealth & Development Office (FCDO)
Forest Governance, Markets and Climate 638 490
Water Resource Accountability in Pakistan 448 -
CDC Water Risk Filter 85 86
Department for Business, Energy and Industrial Strategy (BEIS)
Partnering for Accelerated Climate Transitions 291 -
Department for Environment, Food and Rural Affairs (Defra)
IWT Challenge fund SOKNOT 111 -
Tackling IWT in Muslim communities in Sumatra 40 19
Sound Of Safety: Testing Pingers for River Dolphins and Fishers 28 -
NatureScot
Nature restoration fund 67 -
British Council
Expanding Horizons for Climate Action in Cities 10 90
Joint Nature Conservation Committee (JNCC)
Latin American Landscape Restoration Work 10 -
United Nations Environment Programme (UNEP)
Sustainable Blue Economy Finance Principles 37 25
Small Scale Funding Agreement 30 -
Total aid agencies and government grants 1,795 710
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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.

----- Start of picture text -----
2022 2021
Organisation/Programme £’000 £’000
WWF International
WWF Network Support 5,354 4,488
WWF Network
East Africa Savannahs 4,433 3,041
Amazon Programme 3,351 2,288
Tiger Landscapes 2,273 2,148
UK Land and Seascapes including Marine 1,686 994
Reckitt Partnership restoring wild flower habitats globally 1,426 508
China Policy (Green is Gold) 1,313 1,262
Organisational Development 1,250 980
Asia Sustainable Palm Oil Programme 1,245 1,009
Nepal Partnership 1,048 -
HSBC energy, innovation and learning 941 1,006
Wildlife Trafficking and Demand 938 893
Coral Triangle 582 116
Asian High Mountain Landscapes 442 833
Water Resource Accountability in Pakistan 441 -
Myanmar Programme 425 247
Aviva Partnership – Canada Nature and Climate Fund 400 -
Greater Virunga 395 280
Sabah Programme 393 93
Ganges & Indus Programme 370 195
Total grants made to largest programmes 28,706 20,381
Other projects aggregated 4,488 6,030
Total grant funding on programmes and projects 33,194 26,411
Other project activity undertaken directly (Note 6) 31,160 29,937
Total grants and projects expenditure (Note 6) 64,354 56,348
Support costs (Notes 6,7) 4,789 5,587
Total expenditure on grants and projects 69,143 61,935
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*does not include institutional funding coming via a third party or WWF network office.

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6. RESOURCES EXPENDED

----- Start of picture text -----
Activities Grant Total
undertaken funding of Support Total 2021
directly activities costs 2022 (Restated)
£’000 £’000 £’000 £’000 £’000
----- End of picture text -----*

	£’000 £’000 £’000 £’000 £’000
Averting dangerous climate change Creating a sustainable food system Restoring threatened habitats and species Growing support Strengthening our priority WWF partner ofces Building capacity in the network WWF network priority support projects Gifts in kind attributable to charitable activities Total expenditure on charitable activities Expenditure on raising funds Reorganisation costs Total expenditure	4,016 1,898 440 6,354 5,403 4,322 1,821 457 6,600 7,256 5,129 20,269 1,890 27,288 23,407 17,248 227 1,301 18,776 19,248 84 1,351 107 1,542 1,082 322 5,354 422 6,098 5,197 29 2,274 172 2,475 - 10 - - 10 342
	31,160 33,194 4,789 69,143 61,935 21,183 - 1,557 22,840 20,678 157 - - 157 -
	52,600 33,194 6,346 92,140 82,613

• Prior year expenditure on charitable activities has been restated to reflect the reallocation of some costs previously reported under Creating a Sustainable Food System to Restoring Threatened Habitats and Species.

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 2022 Total 2021
	£’000 £’000 £’000 £’000 £’000 £’000 £’000
Charitable activities Expenditure on raising funds Total support costs	836 (273) 1,282 1,370 1,574 4,789 5,587 272 (89) 417 446 511 1,557 1,857
	1,108 (362) 1,699 1,816 2,085 6,346 7,444

The decrease in support costs in the year is mainly owing to the fact there were foreign currency holding gains in the year of £1,3m, compared with currency holding losses of £0.9m in the prior year. This is offset by an increase in staff costs of £0.9m and Working For Your World goal costs of £0.5m.

Governance costs included £24,000 (2021: nil) gifts in kind related to pro bono legal services provided.

8. STAFF COSTS

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2022 2021
£’000 £’000
----- End of picture text -----

	£’000 £’000
Wages and salaries Social Security costs Pension costs	19,009 16,937 2,012 1,790 1,823 1,631
	22,844 20,358

The above costs exclude 10 staff (2021: 6 staff) who were hosted by WWF-UK on behalf of Eating Better, WWF International, WWF-US, WWF-Netherlands, WWF-Brazil, WWF European Programme Office, WWF-Malaysia, WWF-Sweden and WWF-Singapore. Total cost £540,000 (2021: £384,000).

Included within staff costs above is £110,000 (2021: £34,000) relating to redundancy and termination costs. At the end of the year nil (2021: nil) was still to be paid.

There were no ex-gratia payments made during the year (2021: nil).

In addition, the cost of temporary staff in the year was £529,045 (2021: £381,544), of which £44,310 (2021: £136,409) 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 438 (2021: 413).

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

	2022 2021
	Number Number
Charitable activities Generatingfunds Support and governance	251 247 100 86 68 59
	419 392

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

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2022 2021
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	21 18 17 18 7 3 - 3 1 2 4 - 1 1 - - 1 1
	52 46

Pension contributions for the 52 highest paid employees (46 in 2021) amounted to £422,845 (2021: £360,344).

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 £1,084,383 (2021: £1,060,600).

The chief executive, Tanya Steele, received a gross salary during the year of £144,533 (2021: £141,522) 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 (2021: nil). During the year £22 was reimbursed to one trustee solely for travel costs incurred in attending and participating in meetings (2021: nil).

During the year the charity paid £5,176 (2021: £3,418) 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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2022 2021
£’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 35 33
Fees payable to the charity’s auditors for the audit of projects 2 12
Fees payable to the charity’s auditors for the audit of the charity’s subsidiaries 24 23
Fees payable to the charity’s auditors for consultancy services 6 -
Total auditors’ remuneration 67 68
Depreciation of tangible fixed assets 854 862
Operating lease rentals:
Plant and machinery 10 12
Other 248 194
Total operating lease rental 258 206
Unrealised gain on foreign exchange translation 1,315 (920)
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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 2021 At 30 June 2022	1,946 1,206 478 3,630
	1,946 1,206 478 3,630
Amortisation
At 30 June 2021 Charge for the year At 30 June 2022	730 1,206 252 2,188 681 - 86 767
	1,411 1,206 338 2,955
Net book value
At 30 June 2022 At 30 June 2021	535 - 140 675
	1,216 - 226 1,442

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

12. TANGIBLE FIXED ASSETS

----- Start of picture text -----
Living Planet Leasehold Office furniture
Centre improvements and equipment Total
£’000 £’000 £’000 £’000
GROUP AND CHARITY
Cost or valuation
At 30 June 2021 19,399 132 1,445 20,976
Additions in the year 20 - 388 408
At 30 June 2022 19,419 132 1,833 21,384
Depreciation
At 30 June 2021 5,856 130 1,172 7,158
Charge for the year 696 1 157 854
At 30 June 2022 6,552 131 1,329 8,012
Net book value
At 30 June 2022 12,867 1 504 13,372
At 30 June 2021 13,543 2 273 13,818
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13. INVESTMENTS

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2022 2021
GROUP AND CHARITY £’000 £’000
Investment – movement
Market value at 1 July 2021 26,009 22,651
Additions at cost 6,542 3,650
Disposals at market value (5,428) (3,199)
Net (loss)/gain on revaluation (1,103) 2,907
Market value at 30 June 2022 26,020 26,009
Cash balances 466 955
Total market value at 30 June 2022 26,486 26,964
Historic cost at 30 June 2022 23,145 21,565
Portfolio distribution
UK fixed interest 5,112 4,538
UK equities 7,214 6,332
Overseas equities 9,688 12,318
Overseas fixed interest 1,687 857
Property funds 2,319 1,964
Cash funds 466 955
Total investment portfolio 26,486 26,964
Restriction analysis
Endowment funds 5,568 5,849
Unrestricted funds 20,918 21,115
Total 26,486 26,964
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14. STOCK

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

15. DEBTORS

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Group Group Charity Charity
2022 2021 2022 2021
£’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	2,184 2,712 918 566 - - 2,416 1,824 1,389 1,331 1,370 1,131 305 234 305 234 708 686 701 681 705 1,414 608 1,230
	5,291 6,377 6,318 5,666

16. CURRENT ASSET INVESTMENTS

	Group 2022 Group 2021 Charity 2022 Charity 2021
	£’000 £’000 £’000 £’000
Amounts due within one year: Bank balances held on deposit
	3,345 3,336 3,345 3,336

17. CREDITORS

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Group Group Charity Charity
2022 2021 2022 2021
£’000 £’000 £’000 £’000
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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:

----- Start of picture text -----
Group Group Charity Charity
2022 2021 2022 2021
£’000 £’000 £’000 £’000
Financial assets measured at amortised cost:
Current asset investments 3,345 3,336 3,345 3,336
Cash at bank and in hand 27,606 26,461 24,703 25,509
Amounts owed by group undertakings - - 2,416 1,824
Other receivables 4,278 5,457 2,896 2,927
35,229 35,254 33,360 33,596
Financial liabilities measured at amortised cost:
Accruals 4,596 5,535 4,455 5,423
Other creditors 3,319 2,235 3,259 2,120
7,915 7,770 7,714 7,543
Financial assets measured at fair value
Fixed asset investments 26,486 26,964 26,486 26,964
Forward foreign currency contracts 305 234 305 234
26,791 27,198 26,791 27,198
Financial liabilities measured at fair value
Forward foreign currency contracts - 12 - 12
- 12 - 12
----- 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	2,376 1,631 2,325 1,519 598 523 598 523 345 81 336 78 - 12 - 12 4,596 5,535 4,455 5,423 3,217 2,564 1,182 840
	11,132 10,346 8,896 8,395

17(A) GROUP DEFERRED INCOME

	1 July 2021 Income received in current year Released in current year 30 June 2022
	£’000 £’000 £’000 £’000
Corporate sponsorship Corporate donations Other Deferred income	2,324 4,516 (3,677) 3,163 4 - (4) - 236 437 (619) 54
	2,564 4,953 (4,300) 3,217

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 (2021: nil).

Cash flow hedges – forward foreign currency contracts

	Notional value Average contractual exchange rate Fair value 2022 2021 2022 2021 2022 2021
	£’000 £’000 Rate Rate £’000 £’000
Due within 1 year Buy CHF, Sell GBP FV movement on cash fow hedges	4,550 4,148 1.2307 1.2053 305 222
	2022 2021 £’000 £’000 305 222 (222) (203) 83 19
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 £21,000 (2021: £12,000).

20. SUBSIDIARY COMPANY

WWF-UK has one active subsidiary company. 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. During the year two dormant subsidiaries (WWF Global Climate Action Lottery Limited and WWF Thriving Habitats and Species Lottery Limited) were dissolved.

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 £4,657,210 (2021: £3,781,274) and the aggregate liabilities were

£4,650,922 (2021: £3,774,986), resulting in shareholders’ funds of £6,288 (2021: £6,288).

The taxable profits earned by the company are donated to WWF-UK and in the current year amounted to £2,404,695 (2021: £3,281,932).

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

----- Start of picture text -----
Profit and loss account 2022 2021
£’000 £’000
Catalogue and retail sales 950 1,188
Corporate sponsorship and licensing 5,474 4,662
Turnover 6,424 5,850
Cost of sales (1,657) (1,210)
Gross profit 4,767 4,640
Administrative expenses (2,368) (1,369)
Operating profit 2,399 3,271
Interest receivable 6 11
2,405 3,282
Gift Aid donation to WWF-UK (2,405) (3,282)
Retained profit for the year - -
Profit & loss account brought forward 6 6
Retained profit carried forward 6 6
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21. GROUP STATEMENT OF FUNDS

	At 1 July 2021 Income Expenditure Transfers between funds Net gains/ (losses) At 30 June 2022
	£’000 £’000 £’000 £’000 £’000 £’000
Endowment funds Kleinwort Endowment Fund Willingdon Memorial Fund Total endowment funds	3,333 - (27) - (133) 3,173 2,516 - (20) - (101) 2,395
	5,849 - (47) - (234) 5,568
Restricted funds
Project restricted funds HSBC Asia Palm Oil HSBC Global Partnership Quadrature climate foundation Garfeld Western Seagrass Reckitt Benckiser Botanica Reckitt Benckiser core partnership Aviva sustainable fnance Sky Ocean Rescue FCDO forest governance, markets and climate Tesco sustainable food Sodexo carbon performance and sustainable meals Patrick Degorce coral reef AB InBev clean water Trillion Trees Moondance Foundation Seagrass EET Sustainable futures Art for your world Sequoia Climate Fund FCDO Pakistan WRAP* Other project restricted, GAA and FCDO	2,032 1,095 (1,448) - - 1,679 2,206 2,261 (1,816) - - 2,651 325 1,400 (1,678) - - 47 896 - (195) - - 701 315 1,615 (1,724) - - 206 320 1,187 (1,115) - - 392 515 5,203 (582) - - 5,136 3,474 117 (1,436) - - 2,155 38 638 (667) - - 9 - 1,609 (1,609) - - - 99 255 (156) - - 198 152 490 (456) - - 186 - 424 (424) - - - 570 604 (608) - - 566 158 385 (74) - - 469 - 320 (293) - - 27 (7) 788 (285) - - 496 - 1,156 (276) - - 880 - 448 (449) - - (1) 2,693 3,850 (3,511) - - 3,032
Broadly restricted funds
Amazon emergency appeal Arctic Climate change Tigers Snow leopards Elephants Amur leopards Primates (orangutans) Jaguars Rhinos Penguins Pandas Mountain gorillas Turtles East Africa Endangered species Guardians appeal Other broadly restricted funds Hosting costs (including staf costs) Total project and broadly restricted funds	465 98 (464) - - 99 (32) 902 (824) - - 46 123 452 (564) - - 11 259 2,670 (2,344) - - 585 24 1,695 (1,583) - - 136 187 1,936 (2,554) - - (431) 108 888 (785) - - 211 192 952 (724) - - 420 2 625 (574) - - 53 77 598 (481) - - 194 12 673 (895) - - (210) 63 643 (835) - - (129) (18) 519 (540) - - (39) 46 424 (511) - - (41) 212 240 1 - - 453 810 923 (646) - - 1,087 464 161 (463) - - 162 1,080 1,940 (1,048) - - 1,972 (1) 586 (612) - - (27)
	17,859 40,770 (35,248) - - 23,381

	At 1 July 2021 Income Expenditure Transfers between funds Net gains/ (losses) At 30 June 2022
Living Planet Centre
Living Planet Centre Ruford Living Planet Centre other Total Living Planet Centre funds Total restricted funds	3,459 - (174) - - 3,285 1,488 - (79) - - 1,409
	4,947 - (253) - - 4,694
	22,806 40,770 (35,501) - - 28,075
Unrestricted funds
Designated reserves: Living Planet Centre reserve Fixed asset reserve Capital expenditure reserve Programmes reserve Wild Isles Investment reserve Designated reserves Hedge reserve General reserve Total unrestricted funds Total funds	8,596 - (443) 20 - 8,173 1,717 - (925) 388 - 1,180 933 - - - - 933 2,253 4,015 (2,719) (1,305) - 2,244 490 - (210) - - 280 3,167 - - (29) - 3,138
	17,156 4,015 (4,297) (926) - 15,948 222 - - - 83 305 22,813 46,252 (52,295) 926 (869) 16,827
	40,191 50,267 (56,592) - (786) 33,080
	68,846 91,037 (92,140) - (1,020) 66,723

*There are negative balances on the restricted funds for FCDO Pakistan WRAP (£1,000), Elephants (£431,000), Penguins (£210,000), Pandas (£129,000), Mountain gorillas (£39,000), Turtles (£41,000) and hosting costs (£27,000). 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 FCDO 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. Donations restricted to the Living Planet Centre were used for the construction of the headquarters.

DESIGNATED RESERVES

22. ANALYSIS OF GROUP ASSETS AND LIABILITIES BETWEEN FUNDS

----- Start of picture text -----
Unrestricted Restricted Endowment Total Total
funds funds funds 2022 2021
£’000 £’000 £’000 £’000 £’000
Intangible fixed assets 675 - - 675 1,442
----- End of picture text -----

Intangible fxed assets	675 - - 675 1,442
Tangible fxed assets – Living Planet Centre Tangible fxed assets – Other Investments Fixed assets Current assets Current liabilities Net assets	8,173 4,694 - 12,867 13,543 505 - - 505 275 20,918 - 5,568 26,486 26,964
	30,271 4,694 5,568 40,533 42,224 13,941 23,381 - 37,322 36,968 (11,132) - - (11,132) (10,346)
	33,080 28,075 5,568 66,723 68,846

• 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 £20,000 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 £388,000 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, Climate and our Education and Youth work. It is planned that the carried forward amount will be fully spent during FY23. The transfer of £1,305,000 relates to previously designated funds that have since been funded by restricted funds.

• 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.

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:

	2022 Land and buildings 2022 Plant and machinery 2021 Land and buildings 2021 Plant and machinery
	£’000 £’000 £’000 £’000
Payments due: within one year within two to fve years Total	318 - 212 10 345 - 181 -
	663 - 393 10

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 £15.6 million (2021: £13.7 million).

HEDGE RESERVE

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

25. GIFTS IN KIND

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

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.

CHARITY STATEMENT OF FINANCIAL ACTIVITIES

The total income of the charity in 2022 was £87.3m (2021: £82.9m) and total expenditure was £88.4m (2021: £81.1m).

----- Start of picture text -----
£’000
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Campaigning costs: Donation of internet search terms and social media advertising Charitable activity costs: Consultancy Support costs: Pro-bono legal services Total gifts in kind received	133 10 24
	167

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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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2022 2021
£’000 £’000
Due within:
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Due within:	£’000 £’000
1 year 2 years 3 years 4 years 5 years	28,836 7,500 21,662 3,823 4,680 2,769 1,182 1,120 - 358
	56,360 15,570

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 £1,537,973 (2021: £4,642,785) with the maximum indemnity period being 12 years.

28. RELATED PARTY TRANSACTIONS

				2022	2021
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	474	766
			Grant expenditure	6,881	5,037
			Other expenditure	264	65
			Debtor outstanding	56	72
			Creditor outstanding	15	9
			Loan outstanding	-	-
			Interest earned	-	1
			on loan
University of Oxford	Professor Eleanor Milner-	Professor	Grant expenditure	55	156
	Gulland, trustee of WWF-UK
			Other expenditure	15	-
			Creditor outstanding	3	-
Quadrature Climate	Baroness Bryony Katherine	Ex co-director	Income	1,400	1,760
Foundation	Worthington
Aviva	Dr Steve Waygood, trustee of WWF-UK	Chief Responsible Investment Ofcer	Income	5,704	587
			Debtor outstanding	-	72
The Climate Movement	Katie White, executive director	Director	Other expenditure	65	45
	of advocacy and campaigns
The Labour Party	Katie White, executive director	Spouse works	Other expenditure	14	-
	of advocacy and campaigns	for leader of the
		Labour Party
Global Canopy	Justin Mundy, trustee	Director	Other expenditure	-	47
	of WWF-UK
WaterAid International	Andrew Green, trustee	Director	Income	10	3
	of WWF-UK

Trustees and other related parties, including key management personnel, made donations to WWF-UK during the year totalling £37,141 (2021: £8,812).

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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2022 2021
£’000 £’000
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Intercompany balances
Amounts due from WWF-UK (World Wide Fund for Nature) Trading Limited	2,415	1,824
Transactions with WWF-UK (World Wide Fund for Nature) Trading Limited
WWF-UK income received by the subsidiary	25	33
Subsidiary income received by WWF-UK	2,009	1,396
Payments made by WWF-UK on behalf of subsidiary	1,565	1,505
WWF-UK expenditure recharged to subsidiary	2,429	1,191
Subsidiary VAT paid by WWF-UK	694	561
Gift aid donation from subsidiary to WWF-UK	2,405	3,282
Loan from subsidiary to WWF-UK	1,500	1,000
Loan interest charged by subsidiary to WWF-UK	6	10
WWF-UK repayment of loan from subsidiary	1,506	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 prior year WWF-UK received the proceeds of lotteries held by PPL. WWF-UK had no ability to alter the price of tickets, determine the prizes or reduce the management fee. As such, PPL was treated as acting as the principal, and so only net proceeds due to WWF-UK were recognised under lottery promotions in the statement of financial activities. For the current year grants were received from the Postcode Planet Trust which receives its funding from People’s Postcode Lottery. These are accounted for under charitable trust income.

The net proceeds included in lottery income for the prior year are analysed as follows:

	2021
	£’000
Ticket value Prize fund Management fee Net proceeds received	6,311 (2,525) (1,767)
	2,019

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WWF-UK Annual Report and Financial Statements 2021-22

33. PRIOR YEAR CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

	Unrestricted funds Restricted and endowment funds Total 2021
Notes	£’000 £’000 £’000
Income and endowments from:
Donations and legacies
Membership and donations from individuals Corporate donations Charitable trusts Legacies Gifts in kind	28,359 14,451 42,810 1,003 9,766 10,769 162 4,361 4,523 14,540 879 15,419 342 - 342
	44,406 29,457 73,863
Charitable activities
Aid agencies and government grants 4 Corporate income Income from non-governmental organisations	14 696 710 - 418 418 341 1,486 1,827
	355 2,600 2,955
Other trading activities
Corporate income Lottery promotions Other trading income	537 3,161 3,698 2,055 - 2,055 759 429 1,188
	3,351 3,590 6,941
Investments 3	599 1 600
Total income Expenditure on:	48,711 35,648 84,359
Raising funds
Costs of raising voluntary income Investment management fees Total expenditure on raising funds and reorganisation costs 6	15,188 5,281 20,469 163 46 209
	15,351 5,327 20,678
Charitable activities
Charitable activities 5,6 Gifts in kind 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 34 Total funds carried forward 34	38,738 22,855 61,593 342 - 342
	39,080 22,855 61,935
	54,431 28,182 82,613
	(5,720) 7,466 1,746 2,263 644 2,907
	(3,457) 8,110 4,653 319 (319) - 19 - 19
	(3,119) 7,791 4,672 43,310 20,864 64,174
	40,191 28,655 68,846

34. PRIOR YEAR 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 FCDO 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 FCDO	768 1 (793) - - (24) 426 - (296) - - 130 1,429 1,709 (1,106) - - 2,032 12 3,517 (1,323) - - 2,206 - 1,405 (1,080) - - 325 - 360 (348) - - 12 - 952 (56) - - 896 - 847 (532) - - 315 - 473 (153) - - 320 - 515 - - - 515 2,449 2,778 (1,753) - - 3,474 - 196 (196) - - - 278 490 (730) - - 38 - 1,460 (1,460) - - - 244 455 (671) - - 28 396 - (419) - - (23) (3) 91 11 - - 99 - 40 - - - 40 206 - (54) - - 152 - 221 (221) - - - 706 613 (749) - - 570 373 10 - (319) - 64 1,235 3,319 (1,937) - - 2,617
Broadly restricted funds
Rimington legacy tigers Amazon emergency appeal Arctic Australia wildfres appeal Climate change Tigers Snow leopards Elephants Amur leopards Primates (orangutans) Jaguars Rhinos Penguins Pandas Mountain gorillas	73 - (73) - - - 268 528 (331) - - 465 (7) 569 (594) - - (32) 1,515 96 (1,450) - - 161 75 538 (490) - - 123 604 2,505 (2,850) - - 259 (215) 1,630 (1,391) - - 24 (372) 1,826 (1,267) - - 187 (206) 894 (580) - - 108 19 864 (691) - - 192 (144) 633 (487) - - 2 7 592 (522) - - 77 (133) 609 (464) - - 12 (150) 596 (383) - - 63 (20) 437 (435) - - (18)

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WWF-UK Annual Report and Financial Statements 2021-22

	At 1 July 2020 Income Expenditure Transfers between funds Net gains/ (losses) At 30 June 2021
	£’000 £’000 £’000 £’000 £’000 £’000
Lions Turtles Endangered species Guardians appeal Other broadly restricted funds Hosting costs (including staf costs) Total project and broadly restricted funds*	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.

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

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Unrestricted Restricted Endowment Total
funds funds funds 2021
£’000 £’000 £’000 £’000
Intangible fixed assets 1,442 - - 1,442
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Intangible fxed assets	1,442 - - 1,442
Tangible fxed assets – Living Planet Centre Tangible fxed assets – Other Investments Fixed assets Current assets Current liabilities Net assets	8,596 4,947 - 13,543 275 - - 275 21,115 - 5,849 26,964
	31,428 4,947 5,849 42,224 19,109 17,859 - 36,968 (10,346) - - (10,346)
	40,191 22,806 5,849 68,846

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© NATUREPL.COM / ANUP SHAH / WWF
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80

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

Stephen Hay Andrew Green (interim) Catherine Dugmore Dave Lewis Eleanor Milner-Gulland Catherine Dugmore

THE EXECUTIVE GROUP/PRINCIPAL OFFICERS

The information shown below is that pertaining between 1 July 2021 and 20 October 2022, the date of signing the accounts.

President: HRH the former Prince of Wales

	TRUSTEES	COMMITTEES
Dave Lewis (Chair) N
Professor Malcolm Press (retired March 2022) N
Catherine Dugmore A, F, N, Inv
Andrew Green		A (interim), F
Professor Eleanor Milner-Gulland P
Steve Morris		N
Justin Mundy		P
Stephen Hay		A, F, Inv
Professor Jules Pretty(retired Oct 2022) P
Baroness BryonyWorthington P
Dorcas Gwata
Dr Steve Waygood F
Kirsty Brimelow		KC 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

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Isabelle Durance P
Neil Burgess P
Ruchi Tripathi P
Emily Robinson P
Dr Henry Travers P
Osama Bhutta P
Dilys Roe P
Laura Hobbs Inv
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Chief executive Tanya Steele Executive director of operations and strategy Catherine McDonald Executive director of people and culture Jane Drysdale Executive director of supporter income and engagement Michael Dent Executive director of science and conservation Mike Barrett Executive directors of advocacy and campaigns Katie White Kate Norgrove Executive director of communications Lisa Lee COMPANY SECRETARY Zoë Ballantyne

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

Bankers

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

Auditor

Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW Bates Wells 10 Queen Street Place London EC4R 1BE Veale Wasbrough Vizards LLP Narrow Quay House Narrow Quay Bristol BS1 4QA Newton Investment Management Ltd 160 Queen Victoria Street London EC4V 4LA

Legal advisers

Investment managers

82