•(.-V •/ffri •1 WORLD ANIMAL PROTECTION Trustees, Report and Accounts 2023 ## Trustees’ Report and Accounts 2023 Our vision: A world where animals live free from cruelty and suffering Our purpose: We move the world to protect animals Our brand statement: Together, we are changing the way the world works to end animal cruelty and suffering. Forever. World Animal Protection is registered with the Charity Commission as a charity and with Companies House as a company limited by guarantee. World Animal Protection is governed by its Articles of Association. Charity registration number 1081849 Company registration number 4029540 Registered office 222 Gray’s Inn Road, London WC1X 8HB |Our vision:
A world where animals live
free from cruelty and suffering
Our purpose:
We move the world to
protect animals
Our brand statement:
Together, we are changing
the way the world works to
end animal cruelty and
suffering. Forever.
World Animal Protection is
registered with the Charity
Commission as a charity and
with Companies House as a
company limited by
guarantee. World Animal
Protection is governed by its
Articles of Association.
Charity registration number
1081849
Company registration number
4029540
Registered office 222 Gray’s
Inn Road, London WC1X
8HB|Trustees’ Report and Accounts 2023
Foreword. Changing the way the world works. Together.
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Strategic report:
Moving the world in numbers through systems change – 2023
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A new world for animals... 2021–2030. Our strategy made simple
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What does system change actually mean?
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Transforming the broken farming system
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Transforming the world for wildlife
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How we’ll move the world in 2024
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Our global reach
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Financial review
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Our income
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Our expenditure
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Our fundraising approach
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Financial policies
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Risks and uncertainties
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Structure, governance and management
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Reference and administrative details
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Our public benefit requirement
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Statement of trustees responsibilities
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Independent auditor’s report to the members of World Animal Protection
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Consolidated financial statements:
Consolidated statement of financial activities
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Consolidated and charity balance sheets
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Consolidated statement of cash flows
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Reconciliation of net income to net cash flow from operating activities
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Notes to the consolidated financial statements
45
Thank you
63| |---|---| |About the cover:
Credit: David Weiller|| ||| About the cover: Credit: David Weiller Trustee’s report and accounts 2023 2 ## Foreword ## Changing the way the world works. Together ## Confronting the causes of animal suffering “Do you think that I’m thinking? And if you do, do you think this is right?” These provocative questions asked by ‘The Thoughtful Pig’, our powerful 2023 film, firmly focus on the sentience of farmed animals and their abilities to think, feel pain, joy and even play games. ‘The Thoughtful Pig’, seen by millions of people globally, highlights that each and every one of the 80 billion farmed animals condemned to the horrific confines of factory farms are individuals with their own stories to tell. We still have much work to do. Without a commitment to change the way we produce food or the introduction of a 10-year ban on building new factory farms, the lives of billions of animals and people are in jeopardy. Factory farming continues to be the biggest cause of animal suffering in the world. Our role in transforming the global food system to benefit animals, people and the planet is critical. Throughout the year we also continued to fulfil our strategy to stop wild animals being cruelly exploited as commodities by changing the systems that allow it. The launch of our Wildlife Heritage Areas Network in 2023 is a world-moving achievement. This unique initiative, developed with our partner World Cetacean Alliance, truly brings wildlife-friendly solutions to the travel industry. It showcases keeping animals wild – celebrating and protecting them in wild spaces, their habitats where they belong. Individuality and animal sentience is something that agribusinesses, whose wealth depends on such cruelty, work hard to conceal. It’s not in their interests for consumers to see the animal products in their shopping baskets as feeling individuals. It’s also not in their interests for people to connect their purchases with the havoc factory farming is wreaking on our health and planet. Yet the connections with farmed animal suffering and our planetary crisis are clear. Every designated Wildlife Heritage Area is driven by a community of passionate people protecting wild animals in the incredible places that they call home. By the end of the year, we had welcomed eight responsible wildlife watching destinations around the globe to the project. They include an Amazon Night Monkey Heritage Area, an Apennines Marsican Bear Heritage Area and whale watching sites in Australia, the USA, South Africa, Costa Rica, Maderia and the Canaries. ## Making world killing links We boldly highlighted these connections at COP28 – the UN climate change conference in Dubai in November. This was the first COP with an explicit focus on food and how we produce it. Backed by our investigations and robust scientific research, we persistently detailed factory farming’s links with the nitrates, superbugs and other effluent polluting our rivers and streams, soils and air. A pollution which affects everyone in our world. As well as this wide-ranging systems change work for wildlife, our supporters’ generosity and loyalty helped us continue to protect individual wild animals from being victims of cruelty. We also outlined factory farming’s role in the relentless destruction of huge swathes of natural habitat – home to precious wildlife – for the production of animal feed. And we showed how it causes at least 11% of the global greenhouse gases fuelling climate change – the horrific droughts, food insecurity, death and suffering in some of the world’s poorest countries. ## Protecting individual animals With Vietnam’s Forest Protection Department and Four Paws, we supported the rescue of Na, a female black bear from a bile farm in Ho Chi Minh. And our supporter-funded rescue of Mundi the elephant enabled her relocation to a safe haven in Georgia, USA, after decades of suffering and isolation in a substandard Puerto Rican zoo. The joy of her release touched the hearts of our supporters worldwide. Our broken food system is now clearly at the forefront of the global agenda. The Emirates-led declaration on sustainable agriculture, resilient food systems and climate action signed by 160 countries acknowledged the significance of putting food and agriculture at the centre of climate. Thank you for everything you have done to move the world for animals in 2023. We are proud to have your support and will continue to inspire global change by tackling the root causes of animal cruelty. However, it did not include a just transition to a food system to reduce the damaging greenhouse gas emissions produced by industrial animal agriculture. Nor did it mention the need for an increase in plant-based diets. Together we can transform the global food system. Together we can free wild animals from exploitation. Forever. Steve McIvor Joanna Kerr Chief executive Chair Trustee’s report and accounts 2023 3 ## Strategic Report ## Moving the world in numbers through systems change – 2023 ## 627 million Released at COP28, our report ‘How factory farming emissions are worsening climate disasters in the global South’, achieved great media coverage reaching more than 627 million people globally. ## 1,300 We exposed the appalling exploitation of more than 1,300 wild animals, including elephants and dolphins across Bali and Lombok, through our ‘Holidays that harm’ report. ## 300 million The media also picked up our research into the US$400 billion lost to the global health economy caused by factory farm antibiotic overuse. This story was seen by more than 300 million people worldwide. ## 160 To date 160 travel companies have agreed to stop profiting from cruel wildlife entertainment because of our campaigning since 2015. ## 150 ## 1.3 million More than 1.3 million farmed animals are living better lives in South East Asia thanks to our Investing in Others project funded by Open Philanthropy. Eight local projects across the region are involved. We inspired global Italian restaurant group, Vapiano, which has more than 150 restaurants globally including 56 in Europe, to sign up to the Better Chicken Commitment. Their decision will improve the lives of hundreds of thousands of chickens in their supply chain. ## 500,000 We exposed the terrible suffering of dairy cows farmed in Canada who are ill, injured or unable to produce milk. More than 500,000 are sent for slaughter annually on journeys that can last 82 hours. ## 70 70 bears saved from the brutality of bear baiting and dancing continued to receive expert care throughout 2023 thanks to our support of the Balkasar Bear Sanctuary in Pakistan. ## 1st ## 75,200 Over 75,200 people signed our petition calling for the Oceanogràfic of Valencia, Spain to end their cruel commercial exploitation of dolphins. The venue keeps 18 dolphins in captive misery. With our partner Collective Fashion Justice we convinced Melbourne Fashion Week to become the 1st Fashion Week worldwide to ban clothing featuring wild bird feathers . ## 41,000 Our investigation video into horrendous conditions on factory farms used by KFC in Thailand mobilised 41,000 people to sign our petition calling for KFC to give chickens better lives. Trustee’s report and accounts 2023 4 ## A new world for animals… 2021–2030. Our strategy made simple. Change starts with us. There is a deepening crisis facing animals around the world. Its scale is alarming. ## 1.6 trillion At least 1.6 trillion wild animals are killed and suffer through people’s actions every year. ## 80 billion More than 80 billion land-based farm animals are consumed annually. Most are cruelly confined to industrial, low-welfare systems. ## Under pressure Our growing population, urbanisation, increasing economic prosperity and addiction to meat are driving greater demand for animal products and placing more pressure on animal habitats. If left unchecked, this demand for animals and their scale of suffering will continue to accelerate. ## The global wildlife trade and farming systems… Inflict suffering and anguish on animals. Devastate habitats. Cause public health crises – like COVID-19, SARS, Ebola, Swine and Avian Flus and antibiotic resistance. ## Our 10-year strategy connects 4 elements for long-lasting change… ## Animal sentience Science shows animals are sentient – thinking, feeling beings with individual personalities, needs and the capacity to suffer. We encourage people to understand this and change their behaviour to improve the lives of animals and ultimately their own. ## Transforming broken systems The factory farming and wildlife trade systems, supported by powerful institutions and governments worldwide, treat animals as commodities. This causes well-documented cruelty and irreparable damage to our world. By changing attitudes and raising animal protection to a global priority issue we will take billions of animals out of this cruel cycle of abuse. ## Change at scale We are focused on transforming the lives of the greatest numbers of animals, both now and in the future, prioritising those enduring the most severe and long-lasting suffering. ## Sustainability We demonstrate how the health and lives of animals, people and planet share a deep interconnection, ensuring people realise that how we treat animals affects us all. We endorse a ‘One Health – One Welfare’ approach. Trustee’s report and accounts 2023 5 ## We have 2 urgent goals… ## Goal 1 ## Goal 2 Ensure farmed animals live good lives by transforming the global food system Stop wild animals being cruelly exploited as commodities by changing the systems that allow this ## With your help we will… Expose the hidden costs of factory farming and shine a light on the collusion and corruption that allow it to thrive. Demonstrate irrefutably that factory farming harms, rather than feeds, the world. Accelerate the shift to a humane and sustainable food system that prioritises plant-based proteins and high welfare farming by working with industry, its regulators and communities. Reveal the hidden financial systems propping up factory farming and seek to redirect this money to humane, sustainable food production. Work with our ever-increasing number of allies demanding change to a food system that damages animals, people and our planet. Before it’s too late. ## With your support we will… Expose the harm industries inflict on our precious wildlife, so that commercial exploitation is universally condemned. Champion wildlife-friendly alternatives by working with partners to research and promote the development of alternative wildlife friendly products and experiences. Encourage the private sector to invest in solutions – from plant-based ingredients for traditional wildlife-based medicine, to responsible, humane wildlife experiences. Involve local communities and support organisations and industry to find a clear route out of wildlife exploitation, turning the problem into the solution. Influence government to enact a global package of wildlife laws, policies and practices that will permanently protect wildlife and their habitats across the world. ## We are making world-moving connections Our two goals are inextricably linked. Intensive agriculture, fuelled by the growth of animal feed production, is the single greatest cause of wildlife habitat destruction around the world. It causes great cruelty to farm and wild animals and threatens the extinction of entire species. Our strategy seeks to disrupt the exploitation of wildlife habitats caused by the agribusiness industry and end factory farming. ## People power is vital to our success. We will galvanise a movement of millions to become advocates for change and will not stop until we all succeed in ending animal cruelty. We will not stand for the status quo – we will speak out with courage and determination. Trustee’s report and accounts 2023 6 ## What does system change actually mean? Billions of animals are suffering; environments continue to be destroyed, and the next pandemic looms ever closer because of the factory farming and wildlife trade systems. These systems, supported by powerful institutions and governments worldwide, cause well-documented cruelty and environmental devastation which most people, either wittingly or unwittingly, make possible. At World Animal Protection we emphasise the urgency of ‘system change’, to address our global crisis, but what does it actually mean? System change addresses the root causes of problems – why things happen. Our ‘New world for animals’ strategy aims to elevate animal protection to a priority issue of global importance. It commits us to changing attitudes and mindsets. This means ensuring that animals are no longer seen as commodities for people to exploit and transforming the systems that fuel their abuse. ## Systems embedding cruelty For example, in factory farming, animal cruelty is caused by and embedded in complex, interconnected systems and networks that people have created. These relate to food production, global markets and finance. Globally, billions of animals live short, painful lives in the name of industrialised meat production. However, a focus on improving their welfare alone can’t produce the scale of impact or the change they need. Let’s consider the 80 million mother pigs exploited for breeding and the demand for cheap meat in the global farming system. They endure the process of pregnancy and giving birth on average more than twice a year. Many are confined to farrowing crates for around a week before birth and then usually a month afterwards. These crates cruelly stop them building their nests and turning around and behaving naturally. But simply giving them bigger crates or adjusting the time they spend in them doesn’t challenge or end the system in which these sentient beings are trapped. ## Tackling root causes To make a real difference for farm animals, we must tackle the root cause of their suffering. This means shifting the system that creates demand for cheap animal protein, destroys forests, absorbs government subsidies and generates profit for investors such as banks and pension funds. Governments and big businesses must be held accountable for their continued investment in broken systems and persuaded to change. But system change doesn’t just come from governments – lots of people making small behaviour changes such as reducing meat consumption or coming together to demand change can add up to an important shift. Likewise conscious choices about pensions and investments can potentially shift power away from unethical providers. United and individually, we all have the power to create change and overturn the systems that fuel animal cruelty. Animal welfare must be placed at the heart of sustainable solutions, to build new world for animals and a better world for all. Photo credit: World Animal Protection / Katie Bryden Trustee’s report and accounts 2023 7 ## Transforming the broken farming system Nearly 80 billion land-based farmed animals endure unimaginable stress and suffering in factory farming systems. These highly sentient – feeling and thinking – beings are confined to a cruelty that deprives them of any hope of a natural life. A life where they can roam freely, feeling sunlight and fresh air on their bodies and grass and soil beneath their feet. With our supporters we are working to ensure farmed animals live good lives by transforming the global food system Together we are building a world where respect for animals, people and the planet sits at the heart of a food system, which is equitable, sustainable, resilient, and capable of feeding the world. Together we are implementing global solutions to address global problems. The welfare, treatment, and attitude towards farmed animals across the world must change. Forever. Trustee’s report and accounts 2023 8 ## What we said we would What we did… do in 2023… Focus our bold people-powered campaigning on the world’s biggest meat processor, JBS. With our campaigners we’ll call for an end to the habitat destruction caused through their animal feed sourcing and expose the climate-destroying nature of their business. We’ll also raise public concern by shining a stark light on the harms imposed on the world by the global factory farming industry. And through our work with civil society groups, we’ll create a united people-powered political push for a moratorium on factory farming. The UN’s climate conference for governments (COP28) will be a key rallying moment. Ensured the Nairobi Declaration, representing Africa’s position on climate change for COP28, clearly linked factory farming with our overheated world. The Declaration was the major outcome of the Africa Climate Summit convened by Kenya's President William Ruto, from 4 – 6 September. This summit was the largest gathering of African leaders, ministers, UN agencies, humanitarian and development partners, the private sector and young people in the continent's history. Our preparation work involved developing a joint statement from civil society organisations during the second Africa Protein Summit. This was submitted to the Climate Change Envoy in the Africa Climate Summit Secretariat at the Kenyan President’s office. We called for a moratorium on factory farming and for sustainable, restorative livestock systems in Africa and increased support for smallholder farmers who are crucial to the region’s food security. We were delighted when these principles were entrenched in the Declaration and expect that such recognition will result in support for local food systems that put animal sentience first. This will ensure sustainability, environment protection and a climate safe future. Pressed for a moratorium on factory farming and for sustainable, welfare-friendly food systems at the UN’s climate conference (COP28) in November and December. This was the UN’s biggest ever climate conference attended by more than 80,000 people and representatives from more than 197 countries. Throughout the conference we formally presented and advocated on issues including: - the inextricable links between the health of people, animals, and our planet – the One Health concept - the urgent need for development banks to invest in high welfare farming instead of factory farming - tackling the deforestation crisis linked with clearing land for animal feed production through sustainable and animal-friendly farming policies and actions, focusing on Brazil’s influential role. Brazil assumes COP presidency in 2025. Welcomed the engagement of representatives from five nations – Brazil, Senegal, Togo, Uganda, and the United Arab Emirates (COP28 Presidency) – at our side events in the Food4Climate Pavilion. Their presence not only indicated our growing influence, but also hopefully laid foundations for potential future partnerships and policy shifts towards more sustainable and animalfriendly practices. Investigated, with our partner Repórter Brasil, the detrimental effects of the meat industry on the environment and animal welfare. Together we exposed four instances of forest destruction in the Amazon and Cerrado linked to the animal feed supply chain of JBS, the world’s biggest meat processor. This global giant’s profits depend on factory farming. “We want to avoid factory farming from taking a foothold in the continent. There is an urgent need to scale-up and transition towards agroecological food systems that recognise animal sentience and shift consumption patterns. Embracing sustainable practices that promote biodiversity, respect our ecosystems, and empower local communities is not just an option; it is an imperative for our survival.” Tennyson Williams Africa country director, World Animal Protection Trustee’s report and accounts 2023 9 What we said we would What we did… do in 2023… (cont.) Focus our bold peoplepowered campaigning on the world’s biggest meat processor, JBS. With our campaigners we’ll call for an end to the habitat destruction caused through their animal feed sourcing and expose the climate-destroying nature of their business. We’ll also raise public concern by shining a stark light on the harms imposed on the world by the global factory farming industry. And through our work with civil society groups, we’ll create a united people-powered political push for a moratorium on factory farming. The UN’s climate conference for governments (COP28) will be a key rallying moment. We produced a powerful 13-minute documentary showing the devastating effects of soy and grain production on both Brazilian wildlife and farmed animals. The film included proof of illegal deforestation and violence against traditional communities and was released to coincide with JBS’ Annual General Meeting in April. Subsequently, we published the investigation’s evidence of deforestation and land clearance in our report ‘Profiting from cruelty and killing our world’. Kept the pressure on JBS through our role as part of the DropJBS coalition during Climate Week New York City. Our Climate Crimes campaign, featuring posters and street installations, vividly highlighted the severe threats of factory farming to wildlife. We positioned them outside the New York Stock Exchange to influence policymakers and gain media coverage of our efforts to stop JBS achieving a public listing. Such a listing would mean access to even more capital and undeserved credibility, enabling them to grow their meat-heavy business. By the end of 2023 we were still waiting to hear the outcome. Also, during the week, Our Give a Cluck about Climate event at Washington Square Park supported by companies Meati and PLNT Burger, exposed thousands of people to factory farming-climate change connections. It also introduced them to the appeal of animal-free proteins. And our expert panel at Columbia University ignited discussions on the necessity of transforming the food system to safeguard animals, people, and the planet. ## Speaking up for animals at the UN climate conference – COP 28 Factory farming inflicts horrendous cruelty on animals and is firmly linked with climate change. It emits 11% of the world’s greenhouse gases strongly linking it with the increasing number of disasters such as droughts and floods affecting some of the world’s poorest countries. We drove home this powerful message at COP28 – in Dubai in November and December – with our new report, ‘How factory farming emissions are worsening climate disasters in the global South’ and accompanying film. Launched at our Food4Climate Pavilion, the report called for a factory farming moratorium by 2030. It attracted extensive media coverage (including Reuters) and reached more than 627 million people globally. Our co-hosting of the Food4Climate Pavilion, with NGO ProVeg International and plant-based food company Upfield, enabled us to unite thousands of COP28 attendees pressing for food system transformation. “Our joined-up approach had an impact,” said Kelly Dent, World Animal Protection’s global director of external engagement and leader of our COP28 team. “The need for food systems change is squarely on the map and we have used this to raise the alarm about industrial farming.” But she explained that current commitments by world leaders are inadequate and so the lives of billions of people and animals remain in jeopardy. “The Declaration on Sustainable Agriculture, Resilient Food Systems and Climate Action”, signed by nearly 160 countries, puts food and agriculture at the centre of climate. However, it does not mention moving away from factory farming to reduce greenhouse gas emissions, and the urgency of increasing plant-based diets. “We need a just transition to a new food system which does not rely on factory farming and requires rich countries to eat less meat. Crucially, we need to protect and support small scale systems of food production.” We will continue to work with governments, institutions, civil society, and the private sector to keep food transformation on the table and firmly on the agenda for COP29. Trustee’s report and accounts 2023 10 "The relentless expansion of industrial agriculture threatens the future of our planet, and local and Indigenous communities are leading the way in the fight to protect it. By putting these groups at the centre of their strategies, philanthropists can build new relationships and channel their resources to tackle factory farming, safeguard animal species, and protect the planet’s precious remaining biodiversity. A new approach is long overdue." Lisa Gunn Brazil country director, World Animal Protection ## What we said we would What we did… do in 2023… Mobilise people to secure commitments for higher welfare in farmed animal systems from ten companies with the power to influence the whole industry. And we’ll continue our work to give high meat consuming countries and companies a clear path to meat reduction. We’ll also develop and present our global solutions and compelling arguments fostering reduced meat consumption, and humane and sustainable protein consumption. In doing so we’ll turn the world away from factory farming. Educated more than 40,000 visitors on higher-welfare animal farming’s impact through our powerful exhibition with India’s National Science Centre. The exhibition, 'Eat Better, End Superbugs’, emphasised how animal welfare can tackle antimicrobial resistance caused by the overuse and misuse of antibiotics in food systems. It illuminated the stark contrasts between higher and lower-welfare animal farms and targeted a broad audience including youth, families, and school groups. The exhibition culminated in a panel discussion with experts from government, veterinary and development backgrounds. Concerns about consumption of factory farmed meat and antimicrobial resistance in a post-COVID world were a particular focus. Since 2021 our research has persistently highlighted the critical links between antibiotic overuse in factory farmed animals and the escalating superbug crisis which kills around 1.6 million people annually. Seventy five percent of the world’s antibiotics are used on factory farmed animals to keep them alive in the farms’ filthy, cramped, and highly stressful conditions. Celebrated a legislative milestone in Canada as the government’s House of Commons advanced MP Nathaniel Erskine-Smith's private member's bill to committee stage. The bill, championed by our Canada team, proposes the creation of a Pandemic Prevention and Preparedness Act. This Act aims for a One Health approach and requires government action to address critical pandemic drivers which include wildlife trade, factory farming, and antimicrobial resistance. We mobilised our NGO allies and put the pressure on MPs to secure the requisite votes for the bill's committee passage. We also provided testimony at the committee, successfully propelling the bill past its third reading. Targeted the UK government by giving vital evidence used by politicians and policy makers through our UK-specific research and report: ‘Life-threatening superbugs: how factory farm pollution risks human health’. We are urging the UK to follow the EU and ban antibiotic overuse in healthy herds as part of its antimicrobial resistance national action plan. Welcomed an Open Philanthropy grant to document existing animal production, animal husbandry, animal welfare and antimicrobial use among small-scale farmers in Nyeri County, Kenya. We want to show how higher welfare farming reduces antimicrobial use and drive businesses towards it. Exposed the secret and shameful suffering of chickens on two typical factory farms rearing chickens for meat in Thailand. Investigators filmed chickens crammed into vast sheds in their thousands, some were unable to stand because of the weight of their bodies. Many had burns to their legs and skin from the ammonia and waste in which they are forced to sit due to their inability to stand. The investigators also filmed dead chickens, rotting beside surviving shed mates, and brutal handling by farm workers. Launched the investigation video ‘The real secret recipe’, across our online platforms on YouTube, Instagram and Facebook in July 2023, to illustrate the suffering of animals on factory farms. The film is a typically shocking example of the suffering that animals experience on factory farms. By the end of 2023 it had been viewed over 471,000 times. Furthermore, 41,000 people had signed our petition calling on KFC, in their role as a nationally and globally important brand, to lead the change in revolutionising chicken welfare on factory farms. We are urging the company to implement the Better Chicken Commitment throughout its supply chain. Trustee’s report and accounts 2023 11 “We cannot condone the suffering of animals raised for food. We must call for industry stakeholders to endorse the Better Chicken Commitment, ultimately advancing chicken welfare. We demand transparent follow-up reports, open for public scrutiny.” Roatchana (Nui) Sungthong Thailand country director, World Animal Protection ## What we said we would What we did… do in 2023… Mobilise people to secure commitments for higher welfare in farmed animal systems from ten companies with the power to influence the whole industry. And we’ll continue our work to give high meat consuming countries and companies a clear path to meat reduction. We’ll also develop and present our global solutions and compelling arguments fostering reduced meat consumption, and humane and sustainable protein consumption. In doing so we’ll turn the world away from factory farming. Applauded restaurant chain Vapiano’s decision to adopt the higher welfare European Chicken Commitment. This change in company policy will improve the lives of hundreds of thousands of chickens annually across Vapiano’s 150 branches. Their decision was triggered by the combined effort of working with partners and our annual report ‘The European pecking order 2023’. This report, first launched in 2019, ranks fast food companies on how they approach the welfare of chickens they use in their business. ‘The European pecking order 2023’ featured evaluations of 69 companies. It showed a trend of improvement in chicken welfare standards compared to 2022. However, many chains still fell short in meeting expectations or lacked transparency. Those which had made progress included Buffalo Grill France, Quick France, Burger King Italy, and O’Tacos France. Steps forward involved committing to the European Chicken Commitment or publishing broiler chicken welfare policies. This demonstrates our crucial role in driving policy changes and improving animal welfare. Asked the questions “Do you think that I’m thinking? And if you do, do you think this is right?” with our innovative Thoughtful Pig campaign and launched on World Animal Day 4 October 2023. Its compelling message drives home animal sentience – the point that animals are thinking, feeling beings and deserve respectful treatment and care. By the end of 2023 this powerful film had reached more than 60 million people. “At World Animal Protection our work is to convince people that if they want to continue consuming animal products, then we have to end the factory farming system. We must stop the unacceptable ways the animals are kept. “So, we can say: ‘The only acceptable way to raise farmed animals for production is within systems that guarantee a good life for them, not just bare survival. We have the power and the responsibility to become more responsible, conscientious consumers.” ## Monica List Head of research and animal welfare, World Animal Protection Trustee’s report and accounts 2023 12 ## Factory farms behind global superbug crisis Throughout 2023 we championed farmed animal welfare and sustainable agriculture in South East Asia through our Investing in Others project, through a US$1.1m grant from US donor Open Philanthropy. The funding enabled us to invest in eight local projects across the region. Funding is based on small-scale grants to improve farmed animal welfare with a focus on broiler chickens and layer hens, and aquatic animals. Our overall aim is to build and empower a network of farmed animal advocates across the region. To date the collective impact of our grantees has been direct change for more than 1,374,000 million farmed animals including farmed shrimp. The potential impact if high level corporate and policy changes are secured across the region could be as high as 4,990,157,396 billion animals. This can only be achieved if we build on the successes to date of these small, highly committed grass root organisations. We have witnessed the impact one small organisation can have on policy and corporate change; The Philippine Animal Welfare Society (PAWS) is in discussion on the full adoption of The Better Chicken Option animal welfare standards into national Philippines law. Furthermore, PAWS worked directly with 249 national fast-food outlets, to offer higher welfare chicken on the menu, supplied by chickens raised on a pilot farm working with higher welfare standards. In Thailand, grantee Patom Organic Living collaborated with a small-scale broiler chicken producer, Kid Dee farm. Patom Organic Living recognises improved consumer awareness and demand for higher welfare chickens is key to building a movement for organic, higher welfare foods. “Raising animals without the use of chemicals proves the undeniable connection between the environment and improved health for both growers and consumers, creating a ripple effect that has the potential to transform the entire industry. “Kid Dee farm and Patom Organic Living's dedication to our guidelines as part of our Investing in Others programme is a shining example of their commitment to higher welfare standards. It illuminates a path toward a brighter, more compassionate future, one that uplifts all those dedicated to humane chicken production,” said Khemratch Amornwatpong, project manager, Investing in Others. Photo: Chicken-friendly: Varakorn Laohasereekul owner of Kid Dee Farm – a free-range, organic chicken farm – in Thailand, proudly sits with his flock. Credit: World Animal Protection / David Hogsholt Trustee’s report and accounts 2023 13 ## What we said we would What we did… do in 2023… Continue campaigning against the development banks who continue to fund new cruel factory farms. Our research will document the problems these projects cause, and rank, name and shame the worst banking offenders. We’ll also continue to push commercial banks and pension funds to improve animal welfare by moving their investment and lending capital away from harmful animal industries. Our public campaigns and one-to-one dialogue with financial institutions will focus on the importance of a protein transition and humane and sustainable farming in saving our world. Launched our ‘Banking on welfare’ report which examined the financial policies of 10 of the largest banks in the UK according to the 2023 Fair Finance Guide Methodology. We revealed that financial institutions including Barclays, HSBC, Lloyds, Metro Bank, and Santander are potentially channelling customers' funds into activities associated with animal cruelty. These activities encompass areas such as factory farming, captive animal entertainment, which includes practices like elephant riding, and involvement in animal testing. Our findings indicate that Barclays, HSBC, Lloyds, Metro Bank, and Santander do not incorporate any mention of animal welfare in their respective policies. Banks that demonstrated a stronger commitment to animal welfare included Triodos – securing the top position, followed by Standard Chartered, The Co-operative Bank, NatWest, and Virgin Money. While none of these banks have a dedicated animal welfare policy, they do emphasise animal welfare in various other policy documents. Notably, Triodos stood out by highlighting animal welfare in a greater number of policy documents compared to all other banks. "By not having a dedicated animal welfare policy, these banks are likely to be investing their customers’ money into cruel practices such as industrial scale factory farming. We are calling on customers to write to their bank urging them to put in place a dedicated animal welfare policy to stop them investing in animal cruelty.” ## Lindsay Duncan UK farming campaign manager, World Animal Protection ## Exposing the cost of funding factory farming Development bank money fuels factory farming when it should fund animal-friendly sustainable alternatives. During 2023 we investigated development bank links with factory farming expansion in Argentina, Vietnam, and Zambia. In Zambia our investigators focussed on Zambeef an agribusiness which has factory farms throughout the country and receives significant funding from the International Finance Corporation (IFC). IFC is the world’s largest development institution and focusses exclusively on the private sector in developing countries. But rather than contributing responsibly to development, IFC is funding Zambeef’s large-scale factory farms, depriving small-scale farmers of water and land. Zambeef is also linked with deforestation and monocultures – taking the homes of animals including leopards, lions, impala, monkeys, buffaloes, and warthogs. And their promises to local people of employment, better roads and schools have not materialised. We captured compelling evidence via drone that illustrates the land changes resulting from funding Zambeef. We’ll develop all case studies gathered in 2023 to push for stricter criteria for financing agricultural projects, pressing for adherence to animal welfare standards and sustainable farming practices. Trustee’s report and accounts 2023 14 ## What we said we would What we did… do in 2023… (cont.) Continue campaigning against the development banks who continue to fund new cruel factory farms. Our research will document the problems these projects cause, and rank, name and shame the worst banking offenders. We’ll also continue to push commercial banks and pension funds to improve animal welfare by moving their investment and lending capital away from harmful animal industries. Our public campaigns and one-to-one dialogue with financial institutions will focus on the importance of a protein transition and humane and sustainable farming in saving our world. We also… Revealed the distressing plight of more than 500,000 dairy cows farmed in Canada. These animals known as ‘cull dairy cows’ are ill, injured, or unable to produce milk. They are sent for slaughter every year within the country or transported to the USA. Cull dairy cows endure horrific conditions on journeys lasting up to 82 hours. They experience inadequate rest times, little or no food and water and no milking, which causes painful swollen udders. Our report, ‘ Milking the Cow’, powerfully exposed their plight. It sparked media attention and opened doors to discussions with dairy businesses, retailers, farming groups and the government. Reduced transport times and local slaughter points are critical in sparing the cows’ arduous journeys. Several dairy processors and other companies involved in the dairy supply chain have agreed to sign our letter showing support for more local slaughter options. We are pressing them to improve the cows’ welfare. Urged the Australian government to legislate a phase-out date for the cruel live transport of sheep. This unacceptable trade, although declining, still condemns around 500,000 sheep annually to horrendous sea journeys and slaughter in Asia and the Middle East. The government set up an independent panel in March to advise on discontinuation of live sheep exports, but an actual phase-out date is still pending. During November, with our partners, we met with politicians, advisors, and government officials to represent the thousands of our supporters who want live exports banned. Our Ban Live Sheep Export truck took their message to the streets of Canberra, Australia’s national capital, and circulated around Parliament House and the Department of Agriculture. This campaign mobilised 12,800 of our supporters who generously donated nearly $AU12,000 to support the truck and ensure the issue remained a priority for politicians. ## What challenged us We secured commitments to improve animal welfare from seven out of an intended 10 companies in the food industry. KFC in Thailand ignored our call to action to implement the urgently needed changes to improve chickens’ lives . Despite the release of our investigation video into the terrible conditions on two standard broiler farms common in the fast-food industry supply chain, KFC remains silent. We also faced significant challenges elsewhere, including in Indonesia where campaigners were threatened with legal action if we continued our campaigns against well-known corporate giants. JBS continues to be a challenging target to move, due to their lack of meaningful engagement and business expansion plans, as demonstrated through their proposed listing on the New York Stock Exchange. Our ongoing push requires a global approach and continued collaboration with civil society organisations, all seeking positive change to safeguard human health, animal welfare and our planet. We have had considerable success with our research linking antimicrobial resistance with factory farming – particularly the factory farming of pigs and chickens. However, our attempts in Australia to test the effluent run off from a beef feedlot did not provide usable outcomes and was a high cost, low impact exercise. This learning has guided our focus areas going into 2024. Trustee’s report and accounts 2023 15 ## Transforming ## the world for wildlife Billions of wild animals across the world experience unbearable cruelty. We believe they should have the right to a wild life. Wild animals must be protected from cruel exploitation. They must feel safe and secure, and have the freedom to thrive in abundant, lush natural habitats that are protected for the benefit of all. Wild animals are born to be wild – not to be used by people or be exploited for profit. They must be protected, not owned. We must share our planet fairly. We have a duty to safeguard wild animals to ensure they thrive for future generations to come. With our supporters we are working tirelessly to safeguard wild animals. Together, we are changing the way the world works – to address how animals in the wild are treated and end wildlife cruelty and suffering. Forever. Trustee’s report and accounts 2023 16 ## What we said we would What we did… do in 2023… Launch our new Wildlife Not Profit campaign to make this the last generation of wild animals to suffer from cruel commercial exploitation. In 2023, we’ll push for bear, elephant and lion farming and breeding bans in China, Thailand and South Africa. We will also continue to build our case and evidence for a new agenda that protects wild animals’ right to a wild life. Continued to support the work in Vietnam to stop the cruel bear bile farming that fuels the traditional Asian medicine trade. Phuc Tho in Hanoi, a bile farming hotspot, was a particular focus. By the end of the year 49 bears had been freed from their terrible suffering. Moved the government in China to establish an expert working group to promote alternatives to wildlife in traditional Chinese medicine. We are also working hard with consumers, medical professionals and businesses and the Chinese government to end the demand. Called on South Africa’s government to honour their 2021 commitment to end South Africa's commercial captive lion breeding industry. We launched our campaign on World Lion Day, 10 August, with ‘Putting a stop to cruelty: why South Africa’s commercial captive lion industry should be shut down for good’. This shocking report outlined the suffering of the lions – detailing starvation and cannibalism – the industry’s ties to international crime syndicates, and the high risks of disease to local people involved. Our campaign generated 39 media stories in South Africa and more than 90 worldwide. We also held an art extravaganza to support the campaign at the Uganda National Theatre with performances from Kenyan and Ugandan artists. This event was reported by 35 news outlets. Released research in November from our survey revealing that travellers favour an in-bound ‘lion protection fee’ for tourists to protect lions from being killed by hunters for sport. One thousand people from countries that frequently visit South Africa, including the African continent and overseas, were involved in the survey conducted by South African and UK researchers. Worked with famous Thai rapper, TangBadVoice, to create a song – ‘No elephant show’ – and video. These powerful creations called out the distressing cruelty inflicted by the travel industry on almost 4,000 elephants in Thailand. Released just before World Elephant Day (12 August) in Thailand, the video also starred our ambassador celebrity Maria Poonlertlarp and was seen by around 190,000 people. As part of our campaign, we also designed a new version of the traditional and highly popular Thai ‘elephant pants’. Our design featured the suffering inflicted on elephants by the entertainment industry and sold out in the first two weeks of the campaign. Continued our advocacy work to ensure understanding and global action regarding the role of animals in pandemics and the transmission of disease from animals to people. Poor animal welfare, the wildlife trade and the use of land for agribusinesses – factory farming – are key drivers. During the year we participated in the first ever United Nations General Assembly High-Level Meeting on Pandemic Prevention, Preparedness and Response. Here we strengthened alliances with like-minded NGOs, built new relationships with stakeholders, and engaged with government representatives. We also advocated, with our NGO coalition partners, for primary prevention, animal welfare and One Health to be included in the final WHO Pandemic Agreement (anticipated May 2024). “Even as experienced researchers, we were deeply disturbed by the cruel practices taking place. It is sickening to see these majestic mammals [lions] reduced to mere commodities kept in merciless conditions.” Dr Neil D’Cruze, World Animal Protection global head of wildlife research Trustee’s report and accounts 2023 17 ## What we said we would What we did… do in 2023… (cont.) Launch our new Wildlife Not Profit campaign to make this the last generation of wild animals to suffer from cruel commercial exploitation. In 2023, we’ll push for bear, elephant and lion farming and breeding bans in China, Thailand and South Africa. We will also continue to build our case and evidence for a new agenda that protects wild animals’ right to a wild life. Celebrated when the Animals (Low Welfare Activities Abroad Bill), for which we had lobbied hard in the UK, passed committee stage in the House of Lords and received royal assent. The legislation, once implemented, will ban the sale and promotion of low welfare wildlife activities overseas within the markets of England and Northern Ireland. It relates to wild animals kept in captivity or confinement, subjected to cruel and brutal training methods, forced to take selfies or are ridden, drugged and de-clawed. Our work particularly focussed on ensuring that entertainment involving whales and dolphins was included at various stages of the bill’s readings. Collaborated on the Fur Free Europe campaign via our teams in Denmark, Netherlands and Sweden. Our efforts helped achieve more than 1.5 million signatures on the campaign petition two months before the closing date. Submitted to European Commission in June, the petition called on the EU to ban fur farming and end the placement of farmed fur products on the market once and for all. Animals including foxes and mink are still farmed for their fur in Europe. Progressed our ‘Frontline Community Protectors’ projects in Peru, India and South Africa. These unique projects aim to make local communities, currently benefiting from the exploitation of wildlife, central to wild animal and habitat protection. Our vision is that these communities not only become advocates of these solutions, but they also become influential global voices and representatives for the protection of wildlife globally. During the year we continued to scope out and research the projects. In Peru this involved conducting a training workshop for journalists to help raise awareness on the negative impacts of the international wildlife trade. We also published two scientific papers based on the findings from our consumer attitude research. This revealed that campaigns to reduce demand can be effective if they focus on animal suffering, the zoonotic disease risks, and the need to conserve Peruvian wildlife . “In Australia, 135,000 native saltwater crocodiles are suffering in farms in the Northern Territory, exceeding their estimated population in the wild. Similarly, thousands of elephants and big cats are bred into captivity for tourism around the world, contributing to a cycle of cruelty. “Even in supposedly well-managed facilities, profit often takes precedence over animal welfare. It is disgraceful for wild animals to endure such misery for industries like the pet trade, trophy hunting, tourism, traditional medicine, or in Australia’s case, high-end handbags.” Suzanne Milthorp World Animal Protection head of campaigns Trustee’s report and accounts 2023 18 What we said we would What we did… do in 2023… (cont.) Launch our new Wildlife Not Profit campaign to make this the last generation of wild animals to suffer from cruel commercial exploitation. In 2023, we’ll push for bear, elephant and lion farming and breeding bans in China, Thailand and South Africa. We will also continue to build our case and evidence for a new agenda that protects wild animals’ right to a wild life. Celebrated the decision by the Australian Government to finally review their outdated 15-year-old Crocodile Farming Code of Practice. Every year thousands of crocodiles are farmed for fashion products across Australia. These highly sentient animals are subjected to intensely cruel conditions – small, barren plasticlined pens – which completely ignore their natural behaviours. In the wild crocodiles can live up 70 years and enjoy large territories. The industry brutally slaughters them when they are just two or three years old, using three or four to make a single Hermès handbag. We also... Exposed how feather use in fashion inflicts suffering, mutilation and cruel slaughter on ostriches, peacocks, pheasants and other birds. Our hard hitting 2023 report – ‘Feathers are the new fur’ produced with our partner Collective Fashion Justice prompted a fashion first. Melbourne became the first Fashion Week worldwide to ban clothing featuring wild bird feathers, adding to their existing fur and wild animal skin ban for which we had also strongly advocated. And in Copenhagen, Fashion Week organisers revised their 2024 sustainability requirements to ban skin and feathers from wild animals. Copenhagen Fashion Week introduced a fur ban in 2023. Began a new partnership in Brazil with environmental conservation organisation Onçafari to monitor and protect maned wolves who are drowning in irrigation channels. The channels are created by farmers who are growing soy and grain on legally and illegally deforested land; the soy and grain are then turned into animal feed for factory farms. The effect on wildlife caused by such deforestation and cultivation is devastating. Our involvement in the maned wolf project will not only help protect these rare and beautiful animals, but it will also help us drive home the farreaching effects of factory farming. ## Exposing prison support for illegal jaguar trade ‘Jaguar spirit: An awakening journey’ our powerful, investigative documentary, revealed Bolvia’s central role in the illegal wildlife trade. Launched in August, the film shockingly revealed how even prisons are behind the cruelty and profiting from it. Secret footage showed inmates at Mocovi prison, Trinidad making bags, wallets and hats from jaguar skins and other endangered wild animals including snakes, caiman and peccary. These were destined for local markets. We presented the film, produced by World Animal Protection multimedia manager Emi Kondo with National Geographic, to the Bolivian Ministry of Environment. We demanded implementation of laws to protect all wildlife, especially threatened jaguars. Trustee’s report and accounts 2023 19 ## What we said we would What we did… do in 2023… Build global, people-powered campaign momentum to disrupt and secure commitments from key outstanding travel industry laggards still profiting from cruel wildlife entertainment. Three hundred companies have already made these changes; commitments from TUI, Trip.com and Groupon, will further make the cruel wildlife industry commercially non-viable. Innovate new solutions for wild animals. These will include building a pro-plant alliance to secure the end of wild animal use in wildlife-based traditional medicine and a ‘Wildlife Heritage Areas Network’. This will bring wildlife-friendly solutions to the travel industry. Launched our Wildlife Heritage Areas project in October which encourages communities worldwide to develop responsible tourism to protect their precious wildlife and habitats. This unique venture, created with our partner the World Cetacean Alliance, tackles the absence of standards for wildlife watching destinations available to the travel industry. It connects specialist NGOs, wildlife experts, responsible travel companies and local communities to designate outstanding places for wildlife and people. To achieve the designation Wildlife Heritage Area applicants must fulfil animal welfare, wildlife conservation, community wellbeing and sustainability criteria. By the end of the year eight projects, ranging from whale watching in Australia to night monkey watching in Peru, were involved in, or had successfully completed the application process. Published ‘The real responsible traveller’ report urging holidaymakers to check before they book to make sure their travel company is not exploiting animals. It includes a step-by-step guide for travel companies on becoming wildlife-friendly, and information on drafting an effective animal welfare policy. We commissioned the report from the University of Surrey; their researchers independently analysed the public commitments travel companies have (and haven’t) made to ending wild animal exploitation. Joined forces with Elephant Aid International (EAI) to relocate Mundi, a 41-year-old female African savannah elephant. She had spent nearly 35 years in isolation being cruelly trained and exploited for entertainment at Mayaguez Zoo in Puerto Rico. When the zoo was finally ordered to shut down, due to numerous failures to meet required animal welfare standards, we were able to help end Mundi’s suffering. In her specially designed transport crate, she travelled by air and road in May to Elephant Refuge North America, EAI’s beautiful elephant refuge, in Georgia, USA. Here, she will live the rest of her life in peace and safety. Urged the Chief Minister of Rajasthan, India to end elephant rides at Amer Fort in Jaipur and and retire the elephants to a wildlife-friendly sanctuary. More than 500 people participated in a rally on World Elephant Day (12 August) to highlight the plight of captive elephants used for rides. Also on World Elephant Day, the China team displayed an awareness-raising video on large outdoor screens in multiple places in Beijing using the video and ‘No elephant show’ rap from our supporter Thai rapper, TangBadVoice. Produced a video for Nordic Leisure Travel Group, the largest Nordic travel company working in Denmark, Sweden, Norway, and Finland. It sells around 1.3m holidays annually and operates Sunclass – its own airline. The video is showing on Sunclass flights to Thailand, the Canary Islands and Cape Verde, and features animal-friendly tourist sites with which we have been involved. These include the Following Giants elephant sanctuary in Thailand, and Whale Heritage Sites in La Gomera and Tenerife. The video also highlights Whale Heritage Sites and general tips on how to be an animal-friendly tourist. Released our report ‘Holidays that harm’ to turn travellers and the tourist industry away from holiday cruelty. Through our investigations for the report, we directly observed and exposed the exploitation of more than 1,300 wild animals, including elephants, orangutans and dolphins kept in appalling conditions across 34 venues in Bali and Lombok. We also visited Bali with Dutch television presenter Floortje Dessing to film a documentary that exposes the lies that are being sold to tourists. Helped YHA Australia, the Australian arm of Hostelling International and the country’s largest budget accommodation provider create wildlife guidelines for implementation across its brand and network. Trustee’s report and accounts 2023 20 “Implementing these guidelines has been an important step for YHA, aligning with our push to expose our guests to more authentic and purpose-driven experiences. We’re already seeing the positive change they have brought about across the YHA network, and we hope the industry continues moving in the right direction to preserve the natural world that travellers are so eager to explore.” Paul McGrath CEO Youth Hostelling Australia ## What we said we would What we did… do in 2023… (cont.) Build global, peoplepowered campaign momentum to disrupt and secure commitments from key outstanding travel industry laggards still profiting from cruel wildlife entertainment. Three hundred companies have already made these changes; commitments from TUI, Trip.com and Groupon, will further make the cruel wildlife industry commercially non-viable. Innovate new solutions for wild animals. These will include building a pro-plant alliance to secure the end of wild animal use in wildlife-based traditional medicine and a ‘Wildlife Heritage Areas Network’. This will bring wildlife-friendly solutions to the travel industry. Commended Klook, one of our campaign travel targets, on their first animal welfare policy. The policy – which will end the sale of circus-style performances involving elephants, dolphins, and tigers – is a good first step in the right direction. However, it falls short of being truly wildlife friendly as the policy has not eliminated all cruel wildlife entertainment attractions from the Klook platform. Worked hard to promote wildlife-friendly and plant-based medicine in China. By the end of 2023 we had inspired wildlife-friendly medicine commitments from… - 35,024 consumers - 8 pharmaceutical and healthcare companies - 1 traditional Chinese medicine foundation - 1,375 doctors from the Chunyu Doctor’s platform, one of China’s largest online medical service providers - These amazing commitments and the government’ s agreement for an expert wildlife-friendly working group, lay firm foundations for China’s move away from wildlife-based medicine. ## Ending bear bile cruelty Tens of thousands of bears are subjected to lifelong confinement to tiny cages and excruciatingly painful bile extractions to supply the traditional Asian medicine trade. Vietnam’s government outlawed bear bile farming in 2005. Since 2006 we have worked with authorities and our local partner, Education for Nature (ENV) to microchip, register and monitor bear farms in the country. Thanks to this monitoring, bears are moved by authorities to rescue centres or by fellow animal welfare organisations to one of their Vietnam sanctuaries. Forty nine bears were saved from bear bile farming in 2023. These included Na, a female black bear. Na had been confined in a tiny cage for more than 20 years. She was suffering health problems including broken teeth, glaucoma, crumbling bones, and heart disease. After her rescue she was transferred by Four Paws to their sanctuary in Ninh Binh, where she is finally getting the expert care and treatment she deserves. In 2005 there were 4,300 bears on farms in Vietnam, by the end of 2023, 208 bears remain. Our aim is for the Vietnam government to close all bear farms and transfer any remaining bears to sanctuaries and rescues centres by 2025. Shockingly, 20,000 bears are still condemned to bile farms in China. There we are working hard with consumers, medical professionals, businesses and the government to end the demand that so cruelly keeps bears confined. Trustee’s report and accounts 2023 21 ## What we said we would What we did… do in 2023… Disrupt industries most responsible for exploiting wild animals for profit. We’ll do this by galvanising people power to convince more travel companies to stop profiting from cruel wildlife entertainment and to commit to wildlife friendly alternatives. Disrupt our database of Spanish supporters from zero to 85,300 as part of our people-powered Innovation Hub project in Spain. We achieved this growth by well-targeted meaningful ways of engaging people to participate in our campaigns. Throughout the year we ensured these supporters received inspiring information and calls to action catalysing their involvement in our campaigns. Moved one of our supporters, who is a teacher, to develop their own campaign project targeting the Oceanogràfic, a venue in Valencia that holds more dolphins than any other in Spain. He produced a video and petition calling on the academic community to stop organising visits to places like the Oceanogràfic on the basis they are deeply anti-educational. ## Targeting dolphin holiday cruelty shame Throughout 2023, we galvanised our supporters to highlight the horrendous suffering of dolphins held captive in entertainment venues. More than 3,600 dolphins and whales are cruelly confined to tanks around the world for tourist entertainment; a typical dolphin tank is around 200,000 times smaller than their natural range. By the year’s end more than 120,000 people had signed our petition asking TUI Group to stop selling and promoting dolphin cruelty. Nearly 6,000 emails were also sent to the company in protest. And in the UK, 320 independent travel agents signed an open letter to TUI UK & Ireland. We also called out financial institutions for supporting the companies that perpetuate such entertainments. Our report ‘Amused to death: Financing wildlife entertainment’ urged Dutch financial institutions to divest from TUI Group and other corporates investing in the cruel exploitation of dolphins and other animals for entertainment. We reported US$474m was invested by seven Dutch financial institutions, with a large chunk going to TUI Group. ## Spain – captive dolphin hotspot Also, during the year, we targeted Europe’s number one dolphin cruelty hotspot – Spain. This popular holiday destination keeps 93 dolphins in cruel confinement – more than any other country in the EU. The Oceanogràfic in Valencia which holds 18 dolphins, the highest number of any Spanish venue, became the focus of our people-powered campaign through our Innovation Hub in the country. More than 75,200 people were galvanised to sign the petition asking the Oceanogràfic to end dolphin suffering and to stop breeding them in captivity. Supporters also kept up the pressure though regular online action. They left bad reviews on Google; sent mass emails, posted on social media and telephoned the Oceanogràfic to protest. To get the attention of passers-by we placed a 3-metre high ‘falla’, made by a local artist, in front of the venue. This bold work powerfully highlighted the cruelty of dolphin captivity; it generated hundreds of petition signatures, and great interest in our work on social media. A falla is a traditional Valencian sculpture made of wood and papier mâché. Trustee’s report and accounts 2023 22 ## Supporting bear sanctuaries in Romania and Pakistan We have supported Romanian NGO Asociația Milioane de Prieteni (AMP) since 2012. By the end of 2023 it was caring for 123 bears in its Libearty sanctuary near Zarnesti in Carpathian Mountains. The bears have mostly been rescued from cruel entertainments and cannot be returned to the wild. Our continued support has helped AMP increase and diversify their income. This is helping them along the road to financial sustainability, making the lives of the bears safe and secure for the future. During 2023, visitors to the Libearty sanctuary increased by nearly 23% from 30,577 visitors in 2022 to 37,518. This led to a 29% increase in fundraised income. Consequently, AMP has achieved a 74% self-sustainability rate for the year, a 2% increase from 2022. Such success enables them to continue to support the bears to live their best possible lives, without a complete reliance on our funding. We also support the Balkasar Sanctuary in Pakistan with our partners the Bioresource Research Centre. Balkasar, in Punjab Province, is a safe haven for 70 bears saved from the brutality of bear baiting and dancing. By the end of 2023, the sanctuary team had built new environmental enrichment structures for the bears. They also increased their own production of fruits and crops as well as sourcing quality food from elsewhere. Diverse and balanced diets are essential to the bears’ good health. ## Calling for Baloo’s release During 2023 we mobilised more than 178,000 people worldwide to sign a petition demanding the removal of Baloo, a brown bear caged beside Romanian ski lift, to the Libearty sanctuary. Despite numerous calls for his release, Baloo has been held in cruel captivity for 23 years and endures shocking mistreatment. He has no exercise, is fed cornflakes, lemonade and alcohol, and people often poke him with sticks through the cage bars. We met with Romania’s ministry of environment in December to call for Baloo’s release and presented the petition. Our next steps are building a legal case for his removal to the Libearty sanctuary. ## Winning jaguar personality helps Costa Rica centre Celeste, a playful young jaguar cub, resident of Las Pumas Sanctuary and Rescue Centre in Costa Rica scooped our 2023 Wild Animal Unique Personality Award. The award was launched in 2022, in memory of Audrey Mealia, a much-loved member of our wildlife team. Celeste’s US$10,000 prize money will go to Las Pumas to help support its wildlife care and rehabilitation work. Award nominations for 2024 open in April. Photo: Celeste the jaguar, winner of the 2023 Wild Animal Unique Personality Award, set up in memory of Audrey Mealia. Credit: Las Pumas Sanctuary and Rescue Centre Trustee’s report and accounts 2023 23 ## What challenged us - Due to organisational budgetary cuts we had to delay some elements of work. - The launch of our ‘Bred for Profit: The truth about global wildlife farming’ report was pushed back to launch in early 2024. - This is also the case for the UK campaign pressing Pets at Home to stop selling wild species as pets in their stores, such as reptiles and amphibians. - The Wildlife Heritage Areas launch was pushed back from its scheduled launch in September and then successfully launched in October. - The Innovation Hub project in Spain was limited in its activities. Therefore, did not reach our supporter engagement targets for disruption, mass mobilisation and offline organising for campaigning against captive animals in entertainment. The Thai government was dissolved in March before the general election in early May. This meant we had to postpone our advocacy of the Elephant Bill, which will give captive elephants better protection. This, however, gave us more time to modify the proposal, giving it a better chance of passing through government. We had planned to launch our Wildlife-Friendly Medicine Network in China in 2023 but had to delay it until 2024 due to local government health sector issues. The project includes a network website, a short film and case studies highlighting the issues and cruelty surrounding wildlife used as traditional Asian medicine. More than 20 million people saw our ‘Real responsible traveller’ report and campaign via our paid-for online ads. And more than 500,000 people visited our ‘Real responsible travel webpages. These numbers, however, did not translate into people taking the actions needed to create enough pressure to make our travel company targets stop selling and marketing wildlife entertainments. We are investigating why the response to our call to action was much lower than expected. We were not able to increase public pressure on our global travel company targets GetYourGuide, Trip.com and Traveloka. During the year there were too many activities across our regions to allow us to run joint public mobilisation actions and speak effectively with one global voice. In 2024 we will work together across the network in a more coordinated way to effectively create pressure on our agreed priority travel company targets. Photo credit: Moving Animals / Amy Jones Trustee’s report and accounts 2023 24 ## How we’ll move the world in 2024 ## Our goal: Ensure farmed animals live good lives by transforming the global food system ## Our goal: Stop wild animals being cruelly exploited as commodities by changing the systems that allow it ## We’ll… Focus our campaign on JBS, the world's largest meat processor, to fundamentally challenge factory farming, improve animal welfare and press for this global giant to adopt sustainable practices. We’ll expose how their sourcing of animal feed contributes to habitat destruction. This will build public opposition against factory farming, helping us powerfully advocate for a moratorium on factory farming, zero-deforestation commitments, global trade restrictions and regulations on deforestation-linked products. ## We’ll… Ramp up our people-powered campaigns to convince key travel companies to stop promoting and selling harmful wildlife entertainment; we have already convinced 160 companies to do so. TUI Group and GetYourGuide, will be our main targets during the year; their commitment is critical in making such cruelty commercially non-viable. Focus on more ways to end wildlife’s exploitation by key industries. This will involve: Mobilise a movement to act for the urgent need of equitable, humane, and sustainable alternatives to factory farms and to press for increased production and consumption of plant-based foods. In Asia, with like-minded organisations, we’ll call for the adoption of responsible minimum farming standards, to improve the lives of animals on existing factory farms and use it to restrict factory farming’s further growth. Target the financiers behind factory farming, urging these taxpayer-funded development banks and high street banks to stop funding its cruelty and planetary destruction. We’ll also work with communities to uncover the true costs of financial institutions’ failure to invest in humane and sustainable farming systems. From these we’ll develop case studies that we’ll share to bring about change. - securing pro-plant support from traditional Asian medicine companies in China, then Chinese government endorsement in 2026 - gaining wildlife-friendly commitments from major fashion entities by 2025 and persuading key pet trade players to cease their activities, while raising public awareness about the associated cruelty - exposing the public to the habitat destruction and harm to wild animals caused by agribusinesses. Launch our Wildlife Not Profit campaign, underpinned by our ‘Bred for profit’ report. We will demand an end to global wildlife farming which supplies exploitative industries like tourism and traditional Asian medicine. Central to the campaign will be a global call to action asking the Thai government to stop breeding elephants for cruel entertainment activities. We’ll also identify and promote sustainable humane alternatives that do not involve the capture and killing of wild animals for commercial gain. Trustee’s report and accounts 2023 25 ## Our global reach World Animal Protection is a truly global organisation, working in more than 50 countries across the world, with offices in every habited continent. **----- Start of picture text -----**
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1 These offices form part of the UK-registered charity and are included in the ‘charity’ accounts. 2 These offices are subsidiaries of the UK charity and are included in the ‘consolidated’ accounts. 3 These offices are affiliates. 4 New Zealand is a branch of the Australian office. Trustee’s report and accounts 2023 26 ## Financial review Our income ## Every donation fuels our work to protect animals World Animal Protection is committed to generating sustainable and reliable income in alignment with our mission to protect animals and improve the wellbeing of people and our planet. We are building a worldwide movement of people who value animals and take action to help protect them, including providing the funding that is crucial to our ability to deliver our work. In 2023, our donors generously provided £29.1m in donations, legacies and grants, which was 24% less than the previous year. This decrease was a reflection of the more challenging economic environment across the countries in which we fundraise, but also because the previous year was exceptional for legacies gifts which would not be expected to be the case every year. To all our supporters, we are deeply thankful for your commitment to animals and your vital contributions to our work to protect them. The generosity of our many supporters, who give regular gifts and make one-off donations in response to our appeals, contributed £13.9m in 2023. This is a decrease of 4.4% compared to 2022, which reflects the continued impact of the rising cost of living and other economic challenges in several countries. Legacy income decreased by £4.1m (30.4%) compared to 2022 which included a few large legacies in the US and the UK. It is humbling to receive notifications about people who value animals and who wish to continue to help protect them after their own death. Major gifts and grants from individuals, governments, businesses and trusts and foundations totalled £1.1m, which is a decrease of 69% compared to 2022. In 2022, continued funding was secured from Open Philanthropy to cover work on animals in the farming system in Southeast Asia and China over couple of years. In line with normal accounting practice, this income was all recognized as income in 2022, with the corresponding expenditure being incurred over multiple years. In 2023, our network of affiliated World Animal Protection entities in Canada, Denmark, Netherlands, and Sweden, contributed £4.6m to our animal protection mission; and this was 29% lower than the previous year. For more information on our fundraising, please refer to our the ‘fundraising practices and performance’ section on page 29. ## Income 2023 Individual donations Legacies Contribution from affiliates Major donors Partnership giving **----- Start of picture text -----**
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Trustee’s report and accounts 2023 27 ## Our expenditure During 2023 our total expenditure increased by 14% from £31.8m to £36.1m. In common with other charities, businesses and individuals, we have seen prices rise more quickly in 2023 than previous years, pushing up our costs. Additionally, we have invested in our digital capabilities and accelerated implementation of our 2021-2030 strategy to ensure we continue to tackle the causes of animal suffering, examples of which are described in the earlier part of this annual report. In the context of an increasingly challenging fundraising environment and increasing costs, we have worked hard to ensure that our fundraising is as effective as it can be. In 2023, we spent £7.1m on fundraising activities, which is an 18% increase compared to 2022. Price inflation across the world has resulted in our fundraising activities now costing more to generate donations than they used to and for 2023, the rate of return within the year was £3.45 for every £1 spent (2022: £5.45). Our growth strategy to 2030 seeks to increase the income that is available to spend on improving animal welfare worldwide and we remain committed to that strategy. Expenditure on charitable activities in 2023 was £29.0m, representing 80.3% of total expenditure, compared to 81.0% in 2022. Staffing costs represented 38.6% of total expenditure in 2023, compared to 37.7% in 2022. In support of our two key programmatic areas of ‘animals in the wild’ and ‘animals in farming’, we also engage in global advocacy. This is key to our theory of change in order to move the world to protect animals and these costs relate to communication, education, and advocacy across the world. ## Expenditure 2023 **----- Start of picture text -----**
Animals in the wild
20%
Animals in farming
1%
40%
Global advocacy
7%
Animals in communities and
disasters
Fundraising
32%
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## Going concern The trustees have reviewed the consolidated position of World Animal Protection. They have taken into account the level of reserves and cash, the annual business plan and forecast process, and the systems of financial and risk management. The trustees have considered the potential impact of a reduction in future income and the consequential effect on expenditure. The scenarios considered have assumed a minimum reduction of 5% and a maximum reduction of 30% in Group income until December 2025. The trustees have also assumed a reduction in expenditure within six months after the initial drop in income, to allow time for the group to implement necessary actions to maintain a sustainable financial position. As a result, the trustees believe that World Animal Protection is well placed to manage operational and financial risks successfully. Accordingly, the trustees expect that World Animal Protection has adequate resources to continue in operational existence for the foreseeable future. Consequently, it can continue to adopt the ‘going concern’ basis of accounting in preparing the financial statements. Trustee’s report and accounts 2023 28 ## Our fundraising approach ## Fundraising practices and performance The positive and lasting change for animals highlighted throughout this report is possible because of our supporters. Thanks to their dedication we have given captive elephants lives worth living in Asia, protected wild animals and their habitats from fires in Brazil. We have also tackled the root causes of these fires, and of farmed animals’ suffering, by working to stop the advance of factory farming in Brazil itself and globally. Our fundraising is part of our 2030 aim to double our reach, visibility and resources to enable our strategic goals for farmed and wild animals. In 2023, we built further foundations to support that aim, and made progress towards it thanks to the engagement and generous contributions from our supporters. The difficult economic environment in many of the countries in which we work is putting pressure on our growth ambitions, but we remain resolute in our drive to reach our stated strategic goals by 2030. Our aim is to raise more income, balanced across our income streams, so that we can scale up our work and impact for animals. We plan to do that by: - innovating to reach more people – involving them in our mission message our animal protection work and show the impact for animals we achieve with our donors. We also focus on Legacy Giving and Partnership Giving – that is major gifts from people, businesses, governments and trusts and foundations. Gifts and grants from partnership giving and major donors was £1.1m. (this is £2.4m lower than in 2022). We continued our single largest partnership with the US-based Open Philanthropy Project, the income from which was included in 2022. The project is designed to make lasting change for farmed animals at scale, across Southeast Asia and China. In addition, we delivered on our commitments in partnerships with the Oak Foundation (Switzerland) and Defra (UK). We received £9.4m from thoughtful bequests given by individuals in their wills to secure a better future for animals. This follows an exceptional year in 2022 (£13.5m) and is higher than 2021 (£9.2m). Total restricted funds were £2.2m, which represented 7% of income. Proportionally this is a decrease compared to previous years when restricted funds were 12% of income in 2022 and 9% in 2021. - putting our supporters at the heart of what we do - establishing strong, long-term partnerships. We are always mindful of how we spend our income and ensure that our fundraising is effective and efficient. We re-invest a proportion of the donations we receive in finding new supporters and raising more funds to make sure we can deliver our animal protection work now and into the future. In 2023, World Animal Protection secured £29.1m of donations and legacies across UK, Australia, New Zealand, USA and Thailand (this is reduced compared to £32.5m in 2021 and £38.2m in 2022). Most of our income was given by our individual supporters. This was just under £13.9m (this was less than the £15.1m raised in 2021 and £14.6m in 2022). This reflects the continuing impact of inflation meaning our fundraising activities cost more and other factors. We continue to improve our fundraising results through acting on insights from our donors and testing different ways to ## Fundraising standards We continued to adhere to the highest standards of fundraising practice and all fundraising and data protection regulations. We review how we communicate with the public, donors, and organisations to request support and we continue to maintain our membership of fundraising and other relevant bodies. Specifically, we voluntarily subscribe to the Fundraising Regulator and its Code of Fundraising Practice and we have maintained our membership in the UK with the DMA (Data and Marketing Association), the Lotteries Council, the Institute of Legacy Management, the Withers Indemnity Project and NCVO (National Council for Voluntary Organisations). World Animal Protection UK is also licensed by the Gambling Commission for the purposes of our weekly UK fundraising lottery. And members of our team are an active member with the Chartered Institute of Fundraising and other relevant fundraising forums. Trustee’s report and accounts 2023 29 ## Our fundraising approach (cont.) ## Working with third party fundraisers Most of our fundraising activity is undertaken by our own directly employed colleagues and volunteers. The specialist nature of some of our activity means that there are some areas where we contract with external agencies. Talking to individuals in person and on the telephone are important ways of engaging the public with our mission and raising funds. In some markets, we work with external organisations who have specific expertise in face-to-face fundraising (although we have not undertaken this type of fundraising in the UK since 2016) or telephone fundraising, so that we can talk to as many individuals as possible in a timely, efficient and effective way. We work closely with these partners, including monitoring and supporting their performance through providing training and information; listening to recorded telephone calls and keeping a close eye on feedback or complaints from supporters This is supported by contracts requiring that individuals who carry out these activities are trained to adhere to applicable laws and codes, such as in the UK the Fundraising Regulator’s Code of Fundraising Practice, as well as data protection laws. We did not have any commercial participators in 2023 in the UK. These are corporate partner organisations who provide charitable contributions to us from the sale of their goods or services and fundraise from customers and employees. ## Feedback and complaints To ensure we provide a relevant and a positive experience to supporters, we continue to monitor all feedback, queries and complaints closely. In 2023, the total supporter interactions in the UK ran into the millions, which resulted in a total of 101 complaints, this is an increase compared to those we received in 2022 (80) and 2021 (75). This was broken down into 83 fundraising complaints and 18 non-fundraising complaints (compared to 61 and 19 respectively in 2022). Proportionally the complaints we received were similar to previous years and we continued to have low number of online fundraising, telemarketing, TV television complaints despite their reach. We have seen an increase in complaints from our online givers, television advertising and addressed mail. Online givers and television advertising complaints are due to increase in the number of supporters reached and were mostly upset by the images or content of the ads. Addressed mail also saw an increase in the number of supporters reached but notably there were two issues with the processing of supporters’ gifts which caused the increase in complaints. The issues have been addressed with changes made to our processes to prevent the issue from occurring again. All these complaints were successfully resolved. We appreciate that complaints and supporter feedback provide us with insights and lessons for future fundraising communications and activity. We were not subject to any complaint investigations through the Fundraising Regulator in 2022/23 (nor in the previous period 2021/22). ## Protecting vulnerable people In the course of our fundraising, we know that we will come into contact with people who may be in vulnerable circumstances. We aim to be honest, responsible and committed to high standards and we have guidance in place to ensure colleagues are sensitive when engaging with vulnerable people, including the CARE model check-list (Comprehend; Assess; Retain; Evaluate). Further information on our fundraising and supporter care can be found on each of our dedicated national websites. For example, our Complaints Policy on our UK website - https://www.worldanimalprotection.org.uk/about/our policies Trustee’s report and accounts 2023 30 ## Financial policies ## Reserves policy The World Animal Protection Group will establish reserves and designated funds in accordance with national statutory and legal requirements and the principles contained in this policy. Reserves are defined as that portion of unrestricted funds that have not been designated for a specific purpose by the trustees. Reserves are established to ensure that the World Animal Protection Group is: - able to meet its financial commitments and obligations as they fall due (i.e., fund working capital), - able to fund unexpected expenditure until adjustments can be made, for example when unplanned events or shocks occur, and - resilient to uncertainty over future income. The target level of reserves is set at an amount sufficient to cover unfunded expenditure from unrestricted funds for a period of 10 months in the event of a 40% fall in unrestricted income. Reserves will only be depleted to a level below that calculated with the approval of the board of trustees and, in such an instance, World Animal Protection will seek to replenish the reserves to the target level as quickly as is feasible following any approved depletion below the target level. Designated funds are established at the discretion of the board of trustees for specific purposes which are in the best interests of the charity as determined by the trustees from time to time. The Group holds the following designated funds: - Accelerator fund – £724,368 ($1m) was set aside in 2021 to enable us to explore opportunities which can accelerate the achievement of our strategic goals for animals. In 2022, £105,184 was spent from this fund with the remaining £619,184 to be spent in 2023 to build the organisation’s digital capabilities, improve our brand presence and pilot a volunteer project in Brazil. At the end of 2023, £9,000 remained in this fund and will be expended in 2024. - Remuneration and grading project –an amount of £217,391 ($300k) to cover costs of the project and changes in salary costs as a result of the review was set aside in 2021. In 2022, £196,208 of this fund was utilised with the remaining £21,183 to be used in 2023 towards further work on this project. At the end of 2023, this designated fund had been fully utilized. ## Reserves performance The total funds of the group amount to £19.7m (2022: £26.1m) of which £4.5m (2022: £5.7m) is restricted or endowed, and £0.4m (2022: £0.5m) is a revaluation fund representing the cumulative uplift in the value of investments held. Designated funds amounted to £0.01m (2022: £0.6m). The remainder are ‘general funds’ of £14.8m (2022: £19.4m), which corresponds to the definition of ‘reserves’ in the reserves policy. The target reserve levels are calculated based on the budget for the following year rather than retrospectively on historical results. The level of reserves sufficient to cover expenditure from unrestricted funds for a period of 10 months in the event of a 40% fall in unrestricted income would be £11.9m. If there was no income at all, this is equivalent to 4 months of expenditure based on the 2024 budget. Recognising that reserves would be above the level set out in the reserves policy, the 2024 budget has been set to expend some of the carried over reserves in a controlled way for our charitable purposes through to 2025, returning to a balanced or surplus budget position from 2026. ## Investment policy The investment policy of the charity is to balance the liquidity requirements between on-demand and fixed-term deposits held with our banks and the longer term returns that are possible through fixed asset investments. Funds which are not expected to be needed except in the longer term are held by an investment management company, whose role is to protect World Animal Protection’s investments and generate a return while observing our investment restrictions. As part of the trustees’ oversight of this portfolio, the Audit & Finance Committee regularly reviews the performance of the investment portfolio, the investment principles and objectives, the charity’s attitude to risk and advise the board of trustees on the selection of the charity’s investment managers. ## Investment performance Our investment portfolios held in the UK and USA performed adequately in comparison to relevant benchmarks in the face of continued global economic challenges. Net investment gains in 2023 were £487k, an increase of 10.5% on the market value of investments at the end of 2022. Trustee’s report and accounts 2023 31 ## Grant-making policy We make grants to other entities in the global World Animal Protection network to contribute to their running and programme costs. We also give grants on a proactive basis to independent partner organisations and institutions to support joint work on strategic campaigns and projects. We may occasionally offer financial support to other bodies for their own activities which align with fulfilling our strategic animal welfare objectives. Grants to entities within the World Animal Protection network are routinely monitored through narrative and financial management reports which include explanations of variances from agreed budgets. Grants to other organisations are awarded only after a due diligence process has been carried out with them in accordance with the procedures that sit beneath our Partnership and Finance policies. This process is aimed at giving us assurance that grantees are financially stable and that they can reliably manage and account for all the funds they may receive from us. Grants are subsequently governed by formal agreements which lay out agreed terms of reference and requirements for regular reporting, which provides assurance of the effective use of funds and contribution to our strategic objectives. ## Fraud resilience We are clear in our policies that we do not tolerate fraud or corruption. Our approach and policies aim to empower our people and other stakeholders to prevent and identify fraud and corruption through robust anti-fraud and whistleblowing policies. We provide training to staff and publish articles in our internal communications channels to raise awareness of how to spot and report suspected frauds or scams. We signed up to the Charity Finance Group Counter Fraud Pledge when it was launched and used the resources produced by them and the Fraud Advisory Panel to promote a fraud aware culture and resilience. ## Data protection The organisation continued to monitor our data protection procedures and compliance in the context of the General Data Protection Regulations (GDPR), the ‘UK GDPR’ and Data Protection Act 2018. ## Remuneration policy We operate a World Animal Protection group pay policy, approved by the board of trustees, which includes an annual review of all salaries. Reviews take into account salary benchmarks for each country in which the group operates, with the objective of being able to attract and retain high calibre people and to pay them fairly in line with market rates for the work they do. Aligned with our overall pay policy, we benchmark the chief executive’s salary against salaries of chief executives in global charities of a similar size and income. For the global leadership team (key management personnel), salaries are based on data relating to equivalent senior roles in comparable organisations in their respective countries. Any proposed increases are made in the context of the budgets approved by the board of trustees as part of the annual budgeting process. Where there are changes to salaries, these are awarded to staff in July. ## Safeguarding As an organisation we have always taken seriously our duty to protect the welfare of our staff and partners. Within the charity sector there has been increased scrutiny from regulators and the media to ensure high levels of transparency and integrity. We regularly review our safeguarding policy and the most recent version was reviewed by the board in September 2023. The policy outlines our approach to protect the health, safety and welfare of all staff, volunteers, beneficiaries and others who come into contact with the organisation. This policy sets standards of behaviour and accountability for our staff and partners to ensure a workplace free from abuse and harassment. Aside from the primary purpose to protect individuals, this is essential if World Animal Protection is to remain a credible partner for the major global stakeholders we hope to influence as we seek to deliver our mission. Our effort is not just focused on delivering the maximum impact for the animals we serve, but we seek to ensure that the way we go about our work reflects who we are and what we stand for as an organisation. This is reflected in a set of shared principles, values and behaviours that we have developed together, and reflect those standards expected of the charity sector more widely. ## Modern slavery statement World Animal Protection has a zero tolerance approach to modern slavery and human trafficking. We are fully committed to acting ethically and with integrity in all our business dealings and relationships. We are committed to implementing and enforcing effective systems and controls towards ensuring that no modern slavery or human trafficking is taking place anywhere in our operations or in our supply chains. World Animal Protection has robust governance and risk management framework in place and policies which contribute to minimising the risk of modern slavery in relation to our work. These include: - Recruitment – as an equal opportunities’ employer, we have a rigorous recruitment process. Our recruitment practices include ‘right to work’ checks for all prospective employees. - Procurement – our processes ensure we take into consideration the different risks associated in our supply chains. We carry out due diligence checks on key suppliers and ensure we are satisfied that they have appropriate policies in place. Trustee’s report and accounts 2023 32 ## Risk and uncertainties We believe that sound risk management is integral to both good management and good governance practice. In the past years we have enhanced our risk management policy and incorporated it within strategic and operational planning. ## Our risk management strategy ensures… - Risk assessments are conducted on all new activities and projects to ensure they are in line with the charity’s objectives and mission. - Any risks or opportunities arising are identified, analysed and reported at an appropriate level. - A risk register covering key strategic risks is maintained as a living document and brought to each Board and Audit & Finance Committee meeting. - More detailed operational risk registers are maintained in aspects where this is considered appropriate, taking account of the impact of potential risk and the cost benefit of the exercise. - All staff are provided with adequate training on risk management and their role and responsibilities in implementing this. - We regularly review and monitor the effectiveness of our risk management framework and update it as considered appropriate. - The Board receives regular reports on continuing and emerging high concern risks and those where priority action is needed to bring the risk within our stated risk appetite. ## Our current significant risks include… - Ability to retain and attract staff . Our people are the heart of our organisation. It is only through our dedicated and committed teams that we can deliver our mission to move the world to protect animals. We are strongly focussed on creating the right culture for our employees and volunteers to grow and flourish. We want to be able to attract, recruit and retain the very best people to work for World Animal Protection and ensure they have the right support and development to nurture them to work flexibly across the globe. - Ability to deliver strategy. 2021 was the start of a new ten-year global strategic period and as with any pivoting of strategy, this comes with a change in the ways in which we work. Through ‘working as one’, we will enhance the ways in which we engage and co-create across our global network and increase our effectiveness and impact for animals. - Strength of affiliate relationships. Our World Animal Protection affiliates provided 15.6% of 2023 group income and play a key role in implementing our global strategies. We work closely and collaboratively with our affiliates to maximise the impact we have collectively. - Operational complexity. We take all reasonable steps to comply with the laws and regulations applicable to UK registered charities, and the relevant regulations where our subsidiaries and branches are located. We engage local professional advice where necessary to supplement the local staff we employ in those locations. - Financial stability . In an uncertain financial environment resulting from high inflation and global geopolitical pressures, we closely monitor the ongoing financial health of the organisation, which depends on the ability to generate income and the efficiency of our expenditure. We mitigate risks by incorporating scenario planning into our budget setting, diversifying income streams and increasing the focus and flexibility of our expenditure. Trustee’s report and accounts 2023 33 ## Structure, governance and management ## Our structure World Animal Protection is a registered UK charity and a company limited by guarantee and the ultimate controlling party of three overseas subsidiaries, a UK trading subsidiary and three branches. The Board of Trustees consists of no less than 9 and no more than 13 people and is responsible for the governance of World Animal Protection ensuring it is effectively and properly run and is meeting its overall purposes as set out in its Articles of Association (governing document). ## Mission committee: - Review the quality of progress and impact of the organisation’s strategic programme areas, ensuring they are consistent with the global strategy, its theory of change, strategic objectives and goals - keep under review the organisation’s animal welfare policy ensuring that it is consistent with international best practice and evidence, external policy developments, and World Animal Protection’s global strategy and brand. ## Charity governance The Board is committed to taking good governance and leadership to a higher level and seeks to comply with the Charity Governance Code at all times. ## Governance structure The Board meets at least four times a year to review the performance of the charity and make any decisions necessary to its governance and strategic direction. The Board has the following committee structure: ## Audit and Finance Committee: - to oversee, with delegated authority on behalf of the Board, all financial aspects of the charity, and report back to the Board as appropriate ## Nominations and Governance Committee: - keep the governance and assurance framework of World Animal Protection under review in order to ensure it enables effective governance by the International Board; - recommend enhancements to ensure the systems in place are suitably robust, reflect legislative and regulatory requirements together with best practice in the sector and elsewhere, and most effectively support the needs of the organisation now and in the future; - Monitor and plan for Board succession, identifying skills and experiences needed and attract candidates for appointment and/or reappointment to the Board; - Keep under review the performance of individual trustees and the Board as a whole on a regular basis, making recommendations to the Board as appropriate. - to guide, advise and make recommendations to the Board regarding the approval of budgets, accounts and financial statements and relevant financial policies - to advise the Board on the financial implications of the organisation’s strategic plans and its on-going financial viability - to review the performance of charity investments - oversee the processes related to risk management and internal control and - to oversee the internal and external audit processes. Trustee’s report and accounts 2023 34 People and Culture Committee: - review the CEO’s performance, remuneration and appraisal process - ensure that the people and culture strategy is driven by and contributes to the achievement of the organisational mission and strategic objectives, - maintain oversight of World Animal Protection’s people policies and pay to ensure they are consistent with the needs of the charity, current legislation and best practice and the Board’s requirements as expressed from time to time and - Maintain an oversight of the organisation’s development and culture and people performance. The Board appoints the CEO who has delegated responsibility for the day to day running of the charity in accordance with policies and strategy set by the Board. ## Trustee recruitment World Animal Protection will act positively to create and maintain a skilled, balanced and effective Board. Every effort will be made to ensure that there are strong candidates to fill any vacancies that arise. This will include: - reviewing the Board’s collective skills, knowledge and experience ## Trustee induction All new trustees are provided with training and support necessary to fulfil their responsibilities effectively. An induction pack is issued, and a programme implemented to ensure they: - understand their roles and responsibilities as a trustee, and charity law - have access to our governance documentation, structures and all our approved policies and procedures - are provided with background information that enhances their understanding of World Animal Protection - meet staff and develop greater understanding through discussions and presentations. ## Management - The CEO is appointed by the Board of Trustees to manage the day-to-day operations of the charity. The CEO works with a Global Leadership Team (GLT) which comprises the directors of the key functions. - The full list of the GLT and Board who have been in post during 2023 and to the date of signing these accounts can be found on page 36 (Reference and administrative details). - attracting candidates with identified skills and experience that the charity’s needs, and - interviewing candidates to explore their commitment, knowledge and skills etc. Photo credit: World Animal Protection / Valerie Kuypers Trustee’s report and accounts 2023 35 ## Reference and administrative details World Animal Protection is registered with the Charity Commission as a charity and with Companies House as a company limited by guarantee. World Animal Protection is governed by its Articles of Association. Charity registration number 1081849 Company registration number 4029540 Registered office 222 Gray’s Inn Road, London WC1X 8HB ## Board of trustees (who are directors for Companies Act purposes) Joanna Kerr Chair Sandra Bereti[ 2,4 ] Tigere Chagutah (appointed 15[th] June 2023)[3] Franc Cortada[3,4 ] Jamie Craig[1 ] Ka Keung Fung, (appointed 15[th] June 2023)[2] Svetlana Ignatieva[1] Sarah Ireland[3 ] Christine Lloyd[ 2, 3] Berangere Michel[1,4] Mwikali Muthiani[2] Sol Oyuela (appointed 15[th] June 2023)[1] Dearbhail Usher (appointed 15[th] June 2023)[3] 1Member of the Audit and Finance Committee; 2Member of the People and Culture Committee 3Member of the Mission Committee; 4Member of the Nominations & Governance Committee. Chief Executive Officer until 30[th] June 2024: Steve McIvor Chief Executive Officer from 1[st] July 2024: Tricia Croasdell Investment managers Vanguard Asset Management Limited 4th floor, The Walbrook Building 25 Walbrook London EC4N 8AF ## Bankers Barclays Bank PLC 99 Hatton Garden London EC1N 8DN ## Solicitors Bates Wells and Braithwaite LLP 10 Queen Street Place London EC4R 1BE Auditors (External) Crowe UK LLP 55 Ludgate Hill London EC4M 7JW Auditors (Internal) RSM 25 Farringdon Street London EC4A 4AB ## Global leadership team Steve McIvor Chief Executive Officer until 30[th] June 2024 Tricia Croasdell Chief Executive Officer from 1[st] July 2024 Lena Aahlby Global Director of Programmes Hok Pang Global Director of Finance & Resources Thomas Schultz-Jagow Global Director of Fundraising and Engagement Stephen Sibbald Global Director of Strategic Delivery Rachel Briggs Global Director of People Trustee’s report and accounts 2023 36 ## Our public benefit requirement Under the Charities Act 2011, charity trustees have a duty to explain in their annual report how they meet the requirement to demonstrate public benefit within the meaning of the Act. They are also obliged to explain the charity’s achievements, measured by reference to the charity’s aims and to the objectives set by the board of trustees. The advancement of animal welfare is specified as an admissible charitable purpose and is taken to include any purpose directed towards the prevention or suppression of cruelty to animals or the prevention or relief of suffering by animals. Examples of the charitable purposes falling within this description include: - charities promoting kindness and seeking to prevent or suppress cruelty to animals - animal sanctuaries - the provision of veterinary care and treatment - charities concerned with the care and rehoming of animals that are abandoned, mistreated or lost - feral animal control, e.g. neutering. In accordance with the requirements of the Charities Act 2011, the board of trustees has paid due regard to the Charity Commission’s guidance on public benefit when deciding on and planning the activities of World Animal Protection. This report demonstrates how we met our charitable purposes in 2023 and our principal achievements under our respective strategic priority areas of work. Photo credit: Vladimir Turkenich / Shutterstock Trustee’s report and accounts 2023 37 ## Statement of trustees’ responsibilities The board of trustees (who are also directors of World Animal Protection for the purposes of company law) is responsible for preparing the Trustees’ Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and regulations. Company law requires the board of trustees to prepare financial statements for each financial year. Under that law, the board of trustees has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 The Financial Reporting Standard applicable in the UK and Northern Ireland. 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 group for that period. In preparing these financial statements, the board of trustees is required to: - select suitable accounting policies and then apply them consistently The trustees confirm that: - so far as each trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and - the trustees have each taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. ## Auditors Crowe UK LLP, having expressed their willingness to continue in office, will be deemed reappointed for the next financial year in accordance with section 487(2) of the Companies Act 2006 unless the company receives notice under section 488(1) of the Companies Act 2006. - observe the methods and principles in the Charities Statement of Recommended Practice SORP (FRS102) - make judgements and accounting 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 including Financial Reporting Standard FRS 102; - prepare the financial statements on a ‘going concern’ basis unless it is inappropriate to presume that the charitable group will continue in business. The board of trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In the case of trustees in office at the date the Trustees’ Annual Report is approved: This report, including the Strategic Report, was approved by the board of trustees on 14 June 2024 and signed on their behalf by: **----- Start of picture text -----**
Joanna Kerr
Chair
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Trustee’s report and accounts 2023 38 ## Independent auditor’s report to the members of World Animal Protection ## Opinion We have audited the financial statements of World Animal Protection (‘the charitable company’) and its subsidiaries (‘the group’) for the year ended 31[st] December 2023 which comprise Consolidated Statement of Financial Activities, Group and Parent Balance Sheets, Consolidated Statement of Cashflow 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). ## Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustee's 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. 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 31 December 2023 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 ## 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. ## 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. Trustee’s report and accounts 2023 39 ## Opinion 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 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 for the financial statements As explained more fully in the trustees’ responsibilities statement, 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. ## Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 including internal specialists and significant component audit teams. 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 together with the Charities SORP (FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. 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, employment legislation, taxation legislation, and Anti-fraud, bribery and corruption legislation. Trustee’s report and accounts 2023 40 ## Extent to which the audit was considered capable of detecting irregularities, including fraud (continued) 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 and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, internal audit and the Audit & Finance Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance. 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 noncompliance 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. 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, 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 > Date: 19/08/24 Trustee’s report and accounts 2023 41 ## Consolidated financial statements Consolidated statement of financial activities for year ended 31 December 2023 |Note
Unrestricted
funds
£‘000
Restricted
funds
£‘000
Endowment
funds
£‘000
Total
2023
£‘000
Unrestricted
funds
£‘000
Restricted
funds
£‘000
Endowment
funds
£ ‘000
Total
2022
£‘000
Income and endowment from:
Donations and legacies
2
26,953
2,175
-
29,128
33,499
4660
–
38,159
Other trading activities
4
12
-
-
12
27
–
–
27
Investments
3
492
5
-
497
123
5
–
128
Total
27,457
2,180
-
29,637
33,649
4,665
–
38,314
Expenditure on:
Raising funds
5
(6,867)
(264)
-
(7,131)
(5,851)
(200)
–
(6,051)
Charitable activities
6
(25,659)
(3,355)
-
(29,014)
(22,187)
(3,586)
–
(25,773)
Total
(32,526)
(3,619)
-
(36,145)
(28,038)
(3,786)
–
(31,824)
Net (losses)/gains on
investments
548
-
-
548
(838)
–
–
(838)
Net income
(4,521)
(1,439)
-
(5,960)
4,773
879
–
5,652
Transfer between funds
(310)
-
310
-
181
-
(181)
-
Foreign exchange
movement
(404)
(80)
(33)
(517)
418
120
73
611
Net movement in funds
(5,235)
(1,519)
277
(6,477)
5,372
999
(108)
6,263
Fund balances brought
forward
20,445
3,555
2,134
26,134
15,073
2,556
2,242
19,871
Fund balances carried forward
15,210
2,036
2,411
19,657
20,445
3,555
2,134
26,134
The Statement of Financial Activities includes all gains and losses recognised in the year. All income and expenditure derive from
continuing activities.|Note
Unrestricted
funds
£‘000
Restricted
funds
£‘000
Endowment
funds
£‘000
Total
2023
£‘000
Unrestricted
funds
£‘000
Restricted
funds
£‘000
Endowment
funds
£ ‘000
Total
2022
£‘000
Income and endowment from:
Donations and legacies
2
26,953
2,175
-
29,128
33,499
4660
–
38,159
Other trading activities
4
12
-
-
12
27
–
–
27
Investments
3
492
5
-
497
123
5
–
128
Total
27,457
2,180
-
29,637
33,649
4,665
–
38,314
Expenditure on:
Raising funds
5
(6,867)
(264)
-
(7,131)
(5,851)
(200)
–
(6,051)
Charitable activities
6
(25,659)
(3,355)
-
(29,014)
(22,187)
(3,586)
–
(25,773)
Total
(32,526)
(3,619)
-
(36,145)
(28,038)
(3,786)
–
(31,824)
Net (losses)/gains on
investments
548
-
-
548
(838)
–
–
(838)
Net income
(4,521)
(1,439)
-
(5,960)
4,773
879
–
5,652
Transfer between funds
(310)
-
310
-
181
-
(181)
-
Foreign exchange
movement
(404)
(80)
(33)
(517)
418
120
73
611
Net movement in funds
(5,235)
(1,519)
277
(6,477)
5,372
999
(108)
6,263
Fund balances brought
forward
20,445
3,555
2,134
26,134
15,073
2,556
2,242
19,871
Fund balances carried forward
15,210
2,036
2,411
19,657
20,445
3,555
2,134
26,134
The Statement of Financial Activities includes all gains and losses recognised in the year. All income and expenditure derive from
continuing activities.|Note
Unrestricted
funds
£‘000
Restricted
funds
£‘000
Endowment
funds
£‘000
Total
2023
£‘000
Unrestricted
funds
£‘000
Restricted
funds
£‘000
Endowment
funds
£ ‘000
Total
2022
£‘000
Income and endowment from:
Donations and legacies
2
26,953
2,175
-
29,128
33,499
4660
–
38,159
Other trading activities
4
12
-
-
12
27
–
–
27
Investments
3
492
5
-
497
123
5
–
128
Total
27,457
2,180
-
29,637
33,649
4,665
–
38,314
Expenditure on:
Raising funds
5
(6,867)
(264)
-
(7,131)
(5,851)
(200)
–
(6,051)
Charitable activities
6
(25,659)
(3,355)
-
(29,014)
(22,187)
(3,586)
–
(25,773)
Total
(32,526)
(3,619)
-
(36,145)
(28,038)
(3,786)
–
(31,824)
Net (losses)/gains on
investments
548
-
-
548
(838)
–
–
(838)
Net income
(4,521)
(1,439)
-
(5,960)
4,773
879
–
5,652
Transfer between funds
(310)
-
310
-
181
-
(181)
-
Foreign exchange
movement
(404)
(80)
(33)
(517)
418
120
73
611
Net movement in funds
(5,235)
(1,519)
277
(6,477)
5,372
999
(108)
6,263
Fund balances brought
forward
20,445
3,555
2,134
26,134
15,073
2,556
2,242
19,871
Fund balances carried forward
15,210
2,036
2,411
19,657
20,445
3,555
2,134
26,134
The Statement of Financial Activities includes all gains and losses recognised in the year. All income and expenditure derive from
continuing activities.| |---|---|---| ||The Statement of Financial Activities includes all gains and losses recognised in the year. All income and expenditure derive from
continuing activities.|| ||The notes on pages 45 to 62 form part of these accounts.|| The Statement of Financial Activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes on pages 45 to 62 form part of these accounts. Trustee’s report and accounts 2023 42 ## Consolidated financial statements Consolidated and charity balance sheets at 31 December 2023 |Note
Consolidated
2023
£’000
Charity
2023
£’000
Consolidated
2022
£’000
Charity
2022
£’000
Fixed assets
Tangible assets
11
741
681
327
237
Investments
12
5,118
3,544
4,631
3,274
5,859
4,225
4,958
3,511
Current assets
Stock
13
-
18
-
Debtors
13
2,523
3,140
3,402
2,354
Cashondeposit
24
757
-
2,494
1,700
Cashatbankandin hand
24
13,911
4,184
18,118
9,695
17,204
7,324
24,032
13,749
Creditors: amounts falling
duewithinone year
14
(2,308)
(1,541)
(2,705)
(1,846)
Netcurrentassets
14,896
5,783
21,327
11,903
Provisions
15
(1,098)
(97)
(151)
(97)
Netassets
19,657
9,911
26,134
15,317
Unrestrictedfunds
16
Designatedfunds
9
9
640
640
Revaluation funds
415
415
455
455
General funds
14,786
5,948
19,350
10,261
15,210
6,372
20,445
11,356
Restrictedfunds
17
2,036
1,950
3,555
2,683
Endowments
18
2,411
1,589
2,134
1,278
Total funds
19,657
9,911
26,134
15,317
The notes at pages 45 to 62 form part of these accounts. The Charity-only net deficit for the year was £4,709,569 (2022 net income:|Note
Consolidated
2023
£’000
Charity
2023
£’000
Consolidated
2022
£’000
Charity
2022
£’000
Fixed assets
Tangible assets
11
741
681
327
237
Investments
12
5,118
3,544
4,631
3,274
5,859
4,225
4,958
3,511
Current assets
Stock
13
-
18
-
Debtors
13
2,523
3,140
3,402
2,354
Cashondeposit
24
757
-
2,494
1,700
Cashatbankandin hand
24
13,911
4,184
18,118
9,695
17,204
7,324
24,032
13,749
Creditors: amounts falling
duewithinone year
14
(2,308)
(1,541)
(2,705)
(1,846)
Netcurrentassets
14,896
5,783
21,327
11,903
Provisions
15
(1,098)
(97)
(151)
(97)
Netassets
19,657
9,911
26,134
15,317
Unrestrictedfunds
16
Designatedfunds
9
9
640
640
Revaluation funds
415
415
455
455
General funds
14,786
5,948
19,350
10,261
15,210
6,372
20,445
11,356
Restrictedfunds
17
2,036
1,950
3,555
2,683
Endowments
18
2,411
1,589
2,134
1,278
Total funds
19,657
9,911
26,134
15,317
The notes at pages 45 to 62 form part of these accounts. The Charity-only net deficit for the year was £4,709,569 (2022 net income:|| |---|---|---| ||Note
Consolidated
2023
£’000
Charity
2023
£’000
Consolidated
2022
£’000
Charity
2022
£’000|| ||Fixed assets|| ||Tangible assets
11
741
681
327
237|| ||Investments
12
5,118
3,544
4,631
3,274|| ||5,859
4,225
4,958
3,511|| ||Current assets|| ||Stock
13
-
18
-|| ||Debtors
13
2,523
3,140
3,402
2,354|| ||Cashondeposit
24
757
-
2,494
1,700|| ||Cashatbankandin hand
24
13,911
4,184
18,118
9,695|| ||17,204
7,324
24,032
13,749|| ||Creditors: amounts falling
duewithinone year
14
(2,308)
(1,541)
(2,705)
(1,846)|| ||Netcurrentassets
14,896
5,783
21,327
11,903
Provisions
15
(1,098)
(97)
(151)
(97)|| ||Netassets
19,657
9,911
26,134
15,317|| |||| ||Unrestrictedfunds
16|| ||Designatedfunds
9
9
640
640|| ||Revaluation funds
415
415
455
455|| ||General funds
14,786
5,948
19,350
10,261|| ||15,210
6,372
20,445
11,356|| |||| ||Restrictedfunds
17
2,036
1,950
3,555
2,683|| |||| ||Endowments
18
2,411
1,589
2,134
1,278|| |||| ||Total funds
19,657
9,911
26,134
15,317|| ||The notes at pages 45 to 62 form part of these accounts. The Charity-only net deficit for the year was £4,709,569 (2022 net income:|| |||| The notes at pages 45 to 62 form part of these accounts. The Charity-only net deficit for the year was £4,709,569 (2022 net income: £794,109). The financial statements were approved and authorised for issue by the trustees on 14 June 2024. J Kerr Chair Registered company no: 4029540 Trustee’s report and accounts 2023 43 ## Consolidated financial statements Consolidated statement of cash flows for year ended 31 December 2023 ||Note|2023|2023|2022|2022| |---|---|---|---|---|---| |||£‘000|£‘000|£‘000|£‘000| |Cash flows from operating activities:|||||| |Net cash generated by operating activities|||(5,871)||6,039| ||||||| |Cash flows from investing activities:|||||| |Interest received|3|220||66|| |Investment income|3|277||62|| |Purchase of tangible assets|11|(580)||(110)|| |Sale of tangible assets||-||-|| |Purchase of investments|12|(56)||(65)|| |Sale of investments|12|66||70|| |Net cash generated in investing activities|||(73)||23| ||||||| |Change in cash and cash equivalents in the|||||| |reporting period|||(5,944)||6,062| |Cash and cash equivalents at the beginning of|||20,612||14,550| |the reporting period|||||| |Cash and cash equivalents at the end of the|24||14,668||20,612| |reporting period|||||| Reconciliation of net income to net cash flow from o eratin activities p g |Net movement in funds for the reporting period|||| |---|---|---|---| |(as per Statement of Financial Activities)||(5,961)|5,652| ||||| |Adjustments for:|||| |Depreciation charges|11|122|114| |Net losses/(gains) on investments||(551)|835| |Foreign exchange differences||
(419)|
467| |Investment income|3|(497)|(128)| |Loss on disposal of fixed assets||
-|
-| |Increase in stocks||6|(4)| |(Increase)/decrease in debtors||879|(1,602)| |Increase/(decrease) in creditors||550|705| |Net cash generated by operating activities||(5,871)|6,039| The notes on pages 45 to 62 form part of these accounts. Trustee’s report and accounts 2023 44 Notes to the consolidated financial statements ## 1. Accounting policies ## a) Basis of preparation The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. World Animal Protection meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). These financial statements are for the legal entity which is World Animal Protection, a charity incorporated in the UK, registered with the Charity Commission and with Companies House as a company limited by guarantee. All figures have been converted into sterling. the consolidated accounts as subsidiaries. The registered offices for the subsidiaries are listed on our website: https://www.worldanimalprotection.org/contact-us A separate Statement of Financial Activities (SOFA) is not presented because the charity has taken advantage of the provisions of Section 408 of the Companies Act 2006. ## c) Fixed asset investments Fixed asset investments are stated at their market value at the balance sheet date. Any gain/loss on revaluation is recognised in the consolidated SOFA. ## d) Tangible fixed assets Tangible fixed assets acquired with a fair value over £5,000 are capitalised and depreciated on a straight-line basis over their expected useful lives as follows: - Computer equipment – 5 years ## Going concern After discussions with key management personnel and reviewing the Group’s forecasts and projections, the trustees have a reasonable expectation that the Group has adequate resources to continue its activities for the foreseeable future. The trustees have considered the potential impact of a reduction in future income and the consequential effect on expenditure. The scenarios considered have assumed a minimum reduction of 5% and a maximum reduction of 30% in Group income until December 2025. The trustees have also assumed a reduction in expenditure within six months after the initial drop in income, to allow time for the group to implement necessary actions to maintain a sustainable financial position. Accordingly, the trustees continue to adopt the going concern basis in preparing the financial statements as outlined in the Trustees’ responsibilities statement. ## b) Basis of consolidation The consolidated financial statements of the group incorporate the accounts of the charity including branches in Costa Rica, China, Thailand and Kenya, and its wholly owned trading subsidiary World Animal Protection Trading Company Limited. The branches are also registered as legal entities in their local jurisdictions to comply with the relevant laws and regulations. - Software – 3 to 5 years - Office equipment – 3 years - Short leasehold property – The life of the lease ## e) Fund accounting Funds held by the charity are: Unrestricted funds – funds which can be used in furtherance of 54% the charity’s objectives at the discretion of the board of trustees. Designated funds – funds which have been designated by the board of trustees for a particular purpose, but this designation does not legally restrict the board of trustees’ discretion to apply the funds. Restricted funds – funds which can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Endowment funds – funds that have been given to the charity to be held as capital. Endowments can either be permanent endowment funds which means that they cannot be converted to funds, or expendable endowment funds where the trustees do have a discretionary power to use the funds as income. The endowment funds are accounted for on the basis of any restrictions imposed by the donors. The charity is the sole member of World Animal Protection USA and World Animal Protection Australia. These are included in Trustee’s report and accounts 2023 45 ## Notes to the consolidated financial statements ## f) Income ## Appeals, grants and donations Income from appeals, grants and donations is included in incoming resources when: the charity has entitlement to funds, any performance conditions have been met, it is probable that the income will be received, and the amount can be measured reliably. ## Legacies Entitlement to legacies is taken as the earlier of the date on which either: the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably, and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. ## Donated services and facilities Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised, and reference should be made to the trustees’ annual report for more information about their contribution. On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity, which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. ## Interest receivable Interest is included when receivable by the charity. ## g) Expenditure and irrecoverable VAT Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following headings: - Costs of raising funds comprise the costs incurred in generating donations, the costs of trading for fundraising purposes and the costs directly attributable to managing the investments - Expenditure on charitable activities comprises those costs directly related to the objects of World Animal Protection. It includes both the costs which can be directly allocated to such activities and the costs of an indirect nature necessary to support them. These costs are apportioned on an appropriate basis as set out in Note 6 - Other expenditure represents those items not falling into any other heading. ## Grants Grants payable are accounted for as expenditure in the period in which a constructive obligation to make payment has been entered into and upon receipt of satisfactory management reports. ## Allocation of support costs Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs. These costs have been allocated between costs of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated have been set out in Note 8. ## h) Stock Stocks are valued at the lower of cost and net realisable value. ## i) Debtors Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid. ## Commercial trading activities Income from commercial activities of World Animal Protection Trading Company Limited is included in the period in which the group is entitled to receipt. ## j) Cash at bank and in hand Cash at bank and cash in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Trustee’s report and accounts 2023 46 Notes to the consolidated financial statements ## k) Creditors and provisions Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount. ## l) Financial instruments The charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments comprise fixed asset investments measured at fair value through profit or loss, and financial assets and liabilities that are initially recognised at transaction value and subsequently measured at their settlement value. ## m) Foreign currency Transactions in foreign currencies are translated at the exchange rate in effect at the time of the transaction. Monetary assets and liabilities in foreign currencies are translated at the rates of exchange prevailing at the balance sheet date. Exchange differences are included in the consolidated SOFA for the period in which they are incurred. ## n) Pensions The charity operates a defined-contribution pension scheme. The assets of the scheme are held separately from the charity in an independently administered fund. The amount charged in the SOFA represents the contributions payable to the scheme in respect of the accounting period. World Animal Protection USA operated a defined benefit plan which was closed to new entrants on 31 December 2009. The plan terminated effective August 2023. Since 1 January 2010 World Animal Protection USA has operated a defined contribution scheme and contributions payable are recognised in the SOFA in the accounting period to which it relates. ## o) Significant accounting estimates and judgments In determining the carrying amounts of certain assets and liabilities, the charity makes assumptions of the effects of uncertain future events on those assets and liabilities at the balance sheet date. The charity’s estimates and assumptions are based on historical experience and expectation of future events and are reviewed annually. The main estimates in the financial statements relate to depreciation, legacies and provisions. Further information about key assumptions concerning the future, and other key sources of estimation of uncertainty, are set out in the notes. Photo credit: World Animal Protection / Tracks Investigations Trustee’s report and accounts 2023 47 ## Notes to the consolidated financial statements ## 2. Income from donations and legacies ||2. Income from donations and legacies|2. Income from donations and legacies|| |---|---|---|---| ||||| ## 3. Investments ||Unrestricted
funds
£‘000
Restricted
funds
£‘000
Total
2023
£‘000
Unrestricted
funds
£‘000
Restricted
funds
£‘000
Total
2022
£‘000
Interest receivable
215
5
220
61
5
66
Investment income from
investments
277
-
277
62
–
62
492
5
497
123
5
128| |---|---| Trustee’s report and accounts 2023 48 ## Notes to the consolidated financial statements ## 4. Subsidiary companies ||4. Subsidiary companies|4. Subsidiary companies| |---|---|---| |
Tradingcompany
USA
Australia*
2023
£‘000
2022
£‘000
2023
£‘000
2022
£‘000
2023
£‘000
2022
£‘000
Income
12
27
4,642
10,575
7,706
7,568
Expenditure
(26)
(32)
(5,577)
(5,007)
(7,702)
(7,567)
Net incoming/(outgoing) resources before gains and
losses and gift aid
(14)
(5)
(935)
5,568
4
1
Gift aid
(0)
(8)
-
–
-
–
Net (outgoing)/incoming resources before gains
and losses
(14)
(13)
(935)
5,568
4
1
Net (losses)/gains on investments
-
–
271
(382)
-
–
Net movements in funds
(14)
(13)
(664)
5,186
4
1
Assets
19
39
11,743
12,046
2,923
2,239
Liabilities
(17)
(24)
(2,797)
(2,062)
(2,217)
(1,502)
Funds
2
15
8,946
9,984
706
737||| |||| |||Trad| |||| |||2023
£‘000
2022
£‘000
2023
£‘000
2022
£‘000
2023
£‘000
2022
£‘000| ||Income|12
27
4,642
10,575
7,706
7,568| ||Expenditure|(26)
(32)
(5,577)
(5,007)
(7,702)
(7,567)| ||Net incoming/(outgoing) resources before gains and
losses and gift aid|(14)
(5)
(935)
5,568
4
1| |||| ||Gift aid|(0)
(8)
-
–
-
–| ||Net (outgoing)/incoming resources before gains
and losses|(14)
(13)
(935)
5,568
4
1| ||Net (losses)/gains on investments|-
–
271
(382)
-
–| ||Net movements in funds|(14)
(13)
(664)
5,186
4
1| |||| ||Assets|19
39
11,743
12,046
2,923
2,239| ||Liabilities|(17)
(24)
(2,797)
(2,062)
(2,217)
(1,502)| ||Funds|2
15
8,946
9,984
706
737| |||| |||| *Includes the results for New Zealand, which is a branch of Australia. ## 5. Expenditure on raising funds ||5. Expenditure on raising funds|||| |---|---|---|---|---| ||||Total
2023
£000
Total
2022
£000
6,410
5,487
100
73
473
354
114
97
26
32
8
8
7,131
6,051|| ||Appeals and gifts (individual giving)
Legacies
Corporate donations, trust foundations
Major donors
Fundraising trading
Investment managers' fees
Total|||| |Included in the above are governance costs of £145,467 (2022: £111,446)||||| |||||| Included in the above are governance costs of £145,467 (2022: £111,446) Trustee’s report and accounts 2023 49 Notes to the consolidated financial statements ## 6. Charitable Activities |||Animals in|Animals|Animals|Animals|Global|Animals in|Total 2023|Total 2022| |---|---|---|---|---|---|---|---|---|---| |||communities|in|in||advocacy|the wild|£’000|£’000| ||||farming|disasters||for animals|||| ||Grants_(see note 7)_|137|243|-||9|1,042|1,431|1,604| ||Direct expenditure|45|8,118|12||1,892|9,383|19,450|17,908| ||Support costs|55|3,032|-||622|3,344|7,053|5,629| ||Governance costs|7|306|-||75|692|1,080|632| ||Total 2023|244|11,699|12||2,598|14,461|29,014|25,773| ||Total 2022|219|10,773|106||2,237|12,438|25,773|| ||||||||||| Photo: Still from World Animal Protection's COP28 animation film. Credit: World Animal Protection / Jolt Studios Trustee’s report and accounts 2023 50 ## Notes to the consolidated financial statements ## 7. Grants |7. Grants|| |---|---| |Grants were made to the following institutions:
Institution name:|2023
2022
£’000
£’000| |Asociatia Milioane de Prieteni (AMP)
Bioresource Research Centre
Elephant Aid International
World Cetacean Alliance
International Companion Animal Management Coalition
Bring the Elephant Home
Yayasan Lembaga Konsumen Indonesia
Manchester Metropolitan University
University of Pretoria
Patom Organic Living
Tambuyog Development Center, Inc
The Philippine Animal Welfare Society
Following Giant
Evergreen Labs
Elephant Livehood Initiative Environment (ELIE)
Tiger Tops
Blood Lions
Education for Nature Vietnam
Boon Lott Elephant
Collective Fashion Justice
Mahouts Elephant Foundation
The International Cooperation Committee of Animal Welfare
Centre for Marinelife Conservation and Community Development
Kindred Spirit Elephant Sanctuary
The Aisa Academy of Philanthropy
Chunyu Docotor
Department of Livestock Development
Instituto Ecótono
Boon Lott's Elephant Sanctuary
Action for Protection of Animals Africa (APAA)
Following Giants
University of Surrey
ChangChill
Instituto de Pesquisa e Conservação de Tamanduás
Beijing Chunyu Tianxia Software
Emi Kondo
Beijing Guoweiyijian Health Information Technology
Burm and Emily's Elephant Sanctuary
Vietnam Animal Welfare Association (VAWA)
Instituto Homem Pantaneiro
Coalition of African Animal Welfare Organisation
Roots and Shoots
Suzhou Yun Zhongyi Information Technology
Sappraiwan Elephant Resort
Other grants to institutions (all under £5,000)|274
262
187
186
104
-
80
40
73
73
56
65
37
45
36
27
33
22
32
17
32
16
32
16
32
-
28
33
25
115
25
49
24
32
24
35
24
-
21
26
19
10
17
-
16
17
15
36
11
-
11
-
7
-
6
31
-
81
-
55
-
48
-
42
-
29
-
28
-
26
-
24
-
19
-
15
-
13
-
11
-
10
-
8
-
-
-
7
150
35| ||1,431
1,604| World Animal Protection awards grants which are multiyear in nature, but retains the right to withhold tranches of grant payments until satisfactory performance related conditions and reporting have been met by the grantee. Therefore, no grant liability is recognised at the balance sheet date unless these performance related conditions have been met. The total amount of such awarded grants at the balance sheet date is £758,190. Trustee’s report and accounts 2023 51 ## Notes to the consolidated financial statements ## 8. Analysis of support and governance costs |||||||Global|||| |---|---|---|---|---|---|---|---|---|---| ||||Animals|||advocacy|Animals||| ||Animals in|Animals in||in||for|in|Consolidated|Consolidated| ||communities|farming|disasters|||animals|the wild|2023|2022| ||£’000|£’000|£’000|||£’000|£’000|£’000|£’000| |CEO and executive|10|644|||-|160|731|1,545|1,278| |management|||||||||| |Finance|9|521||-||107|595|1,232|931| |IT|7|281||-||68|341|697|680| |Facilities|13|1,023||-||135|948|2,119|1,468| |HR|16|563||-||153|729|1,461|1,272| |Governance|7|306||-||75|692|1,080|632| ||62|3,338||-||698|4,036|8,134|6,261| In the table above, the basis of apportionment for support costs has been the proportion of the direct expenditure for each charitable activity compared to total expenditure. ## 9. Net incoming resources |||This is stated after charging
2023
£’000
2022
£’000
Operating lease expense
2,095
1,209
Depreciation charges
122
114
Loss on disposal of fixed assets
-
-
Auditor’s remuneration:
Fees payable to the charity’s auditor for the audit of the charity’s
annual accounts
109
102
Fees payable to the charity’s auditor and its associates for other
services:
– Audit of the accounts of subsidiaries (excluding US office)
27
23
– Other non-audit services
-
13
Amounts paid to US office auditors – Marks Paneth
38
35
Investment managers’ fees
8
8|This is stated after charging
2023
£’000
2022
£’000
Operating lease expense
2,095
1,209
Depreciation charges
122
114
Loss on disposal of fixed assets
-
-
Auditor’s remuneration:
Fees payable to the charity’s auditor for the audit of the charity’s
annual accounts
109
102
Fees payable to the charity’s auditor and its associates for other
services:
– Audit of the accounts of subsidiaries (excluding US office)
27
23
– Other non-audit services
-
13
Amounts paid to US office auditors – Marks Paneth
38
35
Investment managers’ fees
8
8| |---|---|---|---| ||||| ||Trustee’s report and accounts 2023
•
Audit remuneration in relation to the group audit of £85,350 (2022: £81,410) exclusive of VAT was payable to Crowe UK LLP.
•
Audit remuneration for overseas offices of £50,754 (2022: £43,586) exclusive of local Taxes was payable to Crowe global
member firms.||52
| - Audit remuneration in relation to the group audit of £85,350 (2022: £81,410) exclusive of VAT was payable to Crowe UK LLP. - Audit remuneration for overseas offices of £50,754 (2022: £43,586) exclusive of local Taxes was payable to Crowe global member firms. Trustee’s report and accounts 2023 52 Notes to the consolidated financial statements ## 10. Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel |||Consolidated|Consolidated||| |---|---|---|---|---|---| |||2023|2022||| |||£’000|£’000||| ||Wages and salaries|12,074|10,349||| ||Social securitycosts(national insurance and other taxes)|1,110|942||| ||Otherpension costs|767|695||| |||13,951|11,986||| ||||||| ||||||| In addition, a great amount of time, the value of which is impossible to reflect in these financial statements, was donated by our volunteers. Our volunteers helped to raise funds and provided office administration and support. |||Notes to the consolidated financial statements|Notes to the consolidated financial statements|| |---|---|---|---|---| |||10. Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel||| |||Consolidated
Consolidated||| |||||| |||In addition, a great amount of time, the value of which is impossible to reflect in these financial statements, was donated by our
volunteers. Our volunteers helped to raise funds and provided office administration and support.||| |||The average number of contracted employees throughout the
year, calculated on a full-time equivalent (FTE) basis, was:
2023
No. of FTE
2023
Headcount
2022
Number of
FTE
2022
Headcount
Charitable activities,campaigns andpublicity
124
127
119
121
Fundraising
46
46
39
41
Managingand administration
46
48
42
44
Leadershipandgovernance
10
10
10
10
226
231
210
216||| |||Th l f b f ff ildi bfi i kid
2023
2022||| |||||| Within our branches and subsidiaries, we employ staff with the required skills and experience to enable our organisation to meet our goals. We attract and retain staff and the salaries are based on the local market. Many of our staff team could make use of their skills elsewhere in the charitable or private sector for considerably higher salaries and of the high earners’ number quoted above, only 20 out of 63 staff were employed within the UK. The key management personnel of the charity are considered to be the Global Leadership Team (GLT). The GLT comprises the CEO, the global director of programmes, the global director of fundraising and engagement, the global people director, the global director of finance and resources and the global director of strategic delivery. In the prior year, the GLT comprised the CEO, the global people director, the global director of programmes, the global director of finance and resources and the global director of strategy. The key management personnel of the charity received £824,813 (2022: £724,642) in salaries and fees. The employer contributions into the charity’s pension scheme with respect to key management personnel amounted to £49,705 (2022: £43,421). The total employee benefits of the key management personnel of the charity were £6,737 (2022: £3,437). Trustee’s report and accounts 2023 53 ## Notes to the consolidated financial statements ||Redundancyand terminationpayments
2023
2022
Redundancy/Terminationpayments(£’000)
-
-
Number of employees made redundant
-
-| |---|---| ## Trustee expenses Total board/committee expenses incurred in respect of travel, accommodation and subsistence was £26,986 (2022: £8,948). This increase from the previous year is due to the resumption of more in-person trustees meetings post-COVID. The costs in 2023 are comparable with the pre-pandemic costs for trustees expenses (2018: £26,896; 2019: £28,016). Included in the above are £4,574 (2022: £1,774) of expenses reimbursed to four trustees (2022: three). None of the trustees receive any remuneration for their services as trustees of the charity. Photo credit: World Animal Protection / Emi Kondo Trustee’s report and accounts 2023 54 ## Notes to the consolidated financial statements ## 11. Tangible fixed assets (consolidated) ||11. Tangible fixed assets (consolidated)|11. Tangible fixed assets (consolidated)|11. Tangible fixed assets (consolidated)||| |---|---|---|---|---|---| ||||Short leasehold
property
£’000
Office
equipment
£’000
Computer
equipment
£’000
Software
£’000||
Total
£’000
1,775
580
(85)
-
2,270
1,448
-
(41)
122
1,529
741
327| |||Cost
At 1 January 2023
Additions
Foreign exchange differences
Disposals
At 31 December 2023
Depreciation
At 1 January 2023
Disposals
Foreign exchange differences
Depreciation in year
At 31 December 2023
Net book amount at 31 December 2023
Net book amount at 31 December 2022|927
210
352
286
-
15
52
513
(16)
(16)
(50)
(3)
-
-
-
-||| ||||911
209
354
796||| ||||795
182
261
210
-
-
-
-
(11)
(7)
(19)
(4)
41
9
39
33||| ||||825
184
281
239||| ||||86
25
73
557||| ||||132
28
91
76||| ||||||| ## Tangible fixed assets (charity) ||Tangible fixed assets (charity)|Tangible fixed assets (charity)||| |---|---|---|---|---| |||Short leasehold
property
£’000
Office
equipment
£’000
Computer
equipment
£’000||Software
£’000
Total
£’000
220
1,166
513
541
-
(32)
-
-
733
1,675
143
929
-
(20)
-
-
33
85
176
994
557
681
77
237| |||Cost
At 1January2023
745
55
146
Additions
-
15
13
Foreign exchange differences
(9)
(11)
(12)
Disposals
-
-
-||| |||At 31 December 2023
736
59
147||| |||Depreciation
At 1January2023
660
31
95
Foreign exchange differences
(5)
(5)
(10)
Disposals
-
-
-
Depreciation inyear
26
8
18||| |||At 31 December 2023
681
34
103||| |||||| |||Net book amount at 31 December 2023
55
25
44||| |||||| |||Net book amount at 31 December 2022
85
24
51||| |||||| Trustee’s report and accounts 2023 55 ## Notes to the consolidated financial statements 12. Fixed Asset Investments (consolidated and charity) |||Consolidated|Charity|Consolidated|Charity|| |---|---|---|---|---|---|---| |||2023|2023|2022|2022|| |||£’000|£’000|£’000|£’000|| ||Market value as at 1January2023|4,631|3,274|5,334|3,738|| ||Add: acquisitions at cost|56|-|65|-|| ||Less: investment manager’s fees|(7)|(7)|(8)|(8)|| ||Foreign exchange differences|(56)|-|137|-|| ||Less disposals at openingbook value|(66)|-|(59)|-|| ||Unrealised(losses)/gains on revaluation|560|277|(838)|(456)|| ||Market value at 31 December 2023|5,118|3,544|4,631|3,274|| |||||||| ||Historical cost at 31 December 2023|3,439|2,527|3,542|2,527|| |||||||| ||An analysis of the market value|Consolidated|Charity|Consolidated|Charity|| ||of investments at 31 December 2023|2023|2023|2022|2022|| ||is as follows:|£’000|£’000|£’000|£’000|| ||Overseas equities|1,651|1,651|1,526|1,526|| ||UK stock/bond mixed indexed funds|645|645|596|596|| ||US stock indexed funds|1,198|-|980|–|| ||Bonds and bond indexed funds|1,603|1,248|1,501|1,152|| ||US fixed-interest stock|21|-|28|–|| |||5,118|3,544|4,631|3,274|| |||||||| At 31 December 2023, the charity owned the entire issued share capital of World Animal Protection Trading Company Limited (£2 cost), a company which supports the charity by carrying out ancillary trading activities. The trading results are set out in Note 4. At 31 December 2023, the amount of this company’s assets, liabilities, share capital and reserves was: |||2023|2022| |---|---|---|---| |||£’000|£’000| ||Current assets|20|39| ||Creditors: amount fallingdue within oneyear|(17)|(24)| ||Creditors: amount fallingdue after more than oneyear|-|–| |||3|15| ||Called-upshare capital –(£2 rounded down to nil)|-|–| ||Profit and loss account|3|15| |||3|15| ||||| Trustee’s report and accounts 2023 56 ## Notes to the consolidated financial statements ## 13. Debtors ||13. Debtors|||||| |---|---|---|---|---|---|---| |||Consolidated||Charity|Consolidated|Charity| |||2023||2023|2022|2022| |||£’000||£’000|£’000|£’000| ||Trade debtors||86|-|937|54| ||Amounts owed bysubsidiaryundertakings||-|1,261|-|324| ||Amounts owed byother WAP entities||299|299|147|147| ||Accrued income||467|293|612|552| ||Prepayments|1,217||1,040|1,194|1,008| ||Other debtors||454|247|512|269| |||2,523||3,140|3,402|2,354| |||||||| ## 14. Creditors: amounts falling due within one year |||||||| |---|---|---|---|---|---|---| |||Consolidated|Charity||Consolidated|Charity| |||2023|2023||2022|2022| |||£’000|£’000||£’000|£’000| ||Trade creditors|1,021||752|1,252|829| ||Other creditors|185||18|233|12| ||Taxes and social security|300||245|288|229| ||Accruals and deferred income|802||323|794|388| ||Amounts owed to other World Animal|-||-|138|138| ||Protection entities|||||| ||Amounts owed to subsidiaryundertakings|-||203|–|250| |||2,308|1,541||2,705|1,846| |||||||| |||||||| ## 15. Provisions ||15. Provisions|||||| |---|---|---|---|---|---|---| |||Consolidated|Charity||Consolidated|Charity| |||2023|2023||2022|2022| |||£’000|£’000||£’000|£’000| ||Openingbalance|151||97|149|97| ||Provision released duringtheyear|1||-|-|-| ||Foreign exchange differences|(2)||-|2|-| ||Provision built upin theyear|948||-|-|-| ||Closingbalance|1,098||97|151|97| |||||||| The provision relates to lease dilapidations for the London and Australian offices. In 2023 a new provision has been made for an onerous lease commitment relating to the USA office which has been deemed to be surplus to requirements and sublet with effect from 1 March 2024 at a reduced rate until the lease ends in October 2029. The provision represents the net present value of the future lease payments less the rent receivable from the sublease in accordance with the principles in FRS102. Trustee’s report and accounts 2023 57 Notes to the consolidated financial statements ## 16. Unrestricted funds (Consolidated and Charity) |||||||||| |---|---|---|---|---|---|---|---|---| ||Consolidated|||||||| |||Balance at 1|Income|
Expenditure|Realised and||Transfers|Balance at 31| |||January 2023|||Unrealised gains|||December| |||£’000|||and losses|||2023| ||||£’000|
£’000||£’000|£’000|£’000| ||Designated funds|640|-|
(631)||-|-|9| ||General & revaluation funds|19,805|27,457|
(31,895)||144|(310)|15,201| ||Total unrestricted Funds|20,445|27,457|
(32,526)||144|(310)|15,210| ||Charity|||||||| ||Designated funds|640|-|
(631)||-|-|9| ||General & revaluation funds|10,716|17,348|
(21,646)||255|(310)|6,363| ||Total unrestricted funds|11,356|17,348|
(22,277)||255|(310)|6,372| |||||||||| ## 17. Restricted funds |17. Restricted funds|||||| |---|---|---|---|---|---| ||||||| |Consolidated|Balance at 1||||Balance at| ||January||Expenditure/|Exchange|31 December| ||2023|Income|transfers|differences|2023| ||£’000|£’000|£’000|£’000|£’000| |Animals in farming|1,399|3|(830)|-|572| |Animals in the wild|5|812|(806)|(1)|10| |Animals in communities|-|1|(1)|-|-| |Global advocacyfor animals|–|41|(41)|-|–| |Animals in disasters|-|2|(2)|-|-| |Geographical restrictions|2,151|1,321|(1,939)|(79)|1,454| ||3,555|2,180|(3,619)|(80)|2,036| ||||||| |Charity|Balance at 1||Expenditure/|Exchange|Balance at| ||January 2023|Income|transfers|differences|31 December| ||£’000|£’000|£’000|£’000|2023| ||||||£’000| |Animals in farming|527|789|(830)|-|486| |Animals in the wild|5|812|(806)|(1)|10| |Animals in communities|-|1|(1)|-|-| |Global advocacyfor animals|–|41|(41)|-|–| |Animals in disasters|-|2|(2)|-|-| |Geographical restrictions|2,151|1,321|(1,939)|(79)|1,454| ||2,683|2,966|(3,619)|(80)|1,950| The balance of restricted funds includes multiple grants totalling £498,008 from US-based Open Philanthropy project funds to make lasting change for farmed animals. The remaining balance of £1,454,229 comprises World Animal Protection Thailand reserves which can only be used for our work in Thailand. Trustee’s report and accounts 2023 58 Notes to the consolidated financial statements ## 18. Endowments ||Consolidated
Italy/
Isle of Capri
£’000
General
Operations
£’000
Eberle
Capital
£’000
Ruth Whist
Capital
£’000
Total
£’000
Balance at 1January2023
38
818
847
431
2,134
Net realised and unrealised losses
–
–
383
(72)
311
Sale of assets – realisedgains/losses
–
–
–
–
–
Foreign exchange differences
(1)
(33)
–
–
(34)
Balance at 31 December 2023
37
785
1,230
359
2,411| |---|---| ||Charity
Eberle
Capital
£’000
Ruth Whist
Capital
£’000
Total
£’000
Balance at 1January2023
847
431
1,278
Net realised and unrealised losses
383
(72)
311
Sale of assets – realisedgains/losses
–
–
–
Balance at 31 December 2023
1,230
359
1,589| |---|---| The Eberle Capital Investment Fund arises from a legacy received in 1991 for the protection of small animals “if possible”. The capital of the fund cannot be used for other charitable purposes unless prior approval is given by the trustees. The income arising from this fund is part of unrestricted investment income. The Ruth Whist Capital Cash Fund arises from a donation for use in work for animals in need. The capital of the fund cannot be spent, and interest should be withdrawn annually for use at the discretion of World Animal Protection’s global director of programmes. The income arising from this fund is part of unrestricted investment income. In World Animal Protection USA, since 1980, numerous donors have contributed to the endowment fund for General Operations. In 1990 the estate of Mona Bismarck contributed an endowment gift for Italy/Isle of Capri. For both funds, the capital amounts must be held in perpetuity and cannot be spent. The income arising from these funds are part of investment income. The net realised gains and unrealised losses during the year have been reallocated from the revaluation funds. Trustee’s report and accounts 2023 59 Notes to the consolidated financial statements ## 19. Analysis of net assets between funds ## For 2023 ||19. Analysis of net assets between funds|||| |---|---|---|---|---| |||||| ||For 2023|||| |||||Endowment
funds
£’000
Total
funds
£’000
–
741
2,410
5,118
–
14,895
–
(1,098)
2,410
19,656| ||Tangible fixed assets
694
47
Investments
2,708
-
Net current assets
12,872
2,023
Provisions
(1,098)
-|||| |||||| |||||| |||||| ||15,176
2,070|||| |||||| ||Charity
Unrestricted
funds
£’000
Restricted
funds
£’000|||
Endowment
funds
£’000
Total
funds
£’000
–
681
1,588
3,544
–
5,782
-
(97)
1,588
9,910| ||Tangible fixed assets
634
47
Investments
1,956
-
Net current assets
3,845
1,937
Provisions
(97)
-|||| ||6,338
1,984|||| |||||| |||||| ||For 2022|||| |||||Endowment
funds
£’000
Total
funds
£’000
–
327
2,134
4,631
–
21,327
–
(151)
2,134
26,134| |||||| |||||| |||||| |||||| |||||| |||||| |||||| ||Charity
Unrestricted
funds
£’000
Restricted
funds
£’000
Tangible fixed assets
173
64
Investments
1,996
-
Net current assets
9,284
2,619
Provisions
(97)
-
11,356
2,683|||Endowment
funds
£’000
Total
funds
£’000
-
237
1,278
3,274
-
11,903
-
(97)
1,278
15,317| |||||| |||||| |||||| |||||| ||20. Commitments
Capital commitments: There were no capital commitments by the charity or group, contracted or authorised, at 31 December 2023 or
31 December 2022.|||| ## 20. Commitments Capital commitments: There were no capital commitments by the charity or group, contracted or authorised, at 31 December 2023 or 31 December 2022. Trustee’s report and accounts 2023 60 ## Notes to the consolidated financial statements ## 21. Operating lease commitments Operating lease payments relate to total minimum contractual rent commitments for premises within the group, over the remaining life of the leases. |the leases.||||| |---|---|---|---|---| ||Consolidated|Charity|Consolidated|Charity| ||2023|2023|2022|2022| ||£’000|£’000|£’000|£’000| |Due in oneyear or less|1,192|816|1,175|796| |Between one and fiveyears|1,870|609|2,644|1,273| |In fiveyears or more|272|-|635|22| ||3,334|1,425|4,454|2,091| |||||| ## 22. Related party transactions ||22. Related party transactions||||| |---|---|---|---|---|---| |||||Amounts|Amounts| |||Paid by|
Received by|owed by|owed to| |||World Animal|
World Animal|World Animal|World Animal| |||Protection|Protection|Protection|Protection| |||£’000|£’000|£’000|£’000| ||World Animal Protection Brazil|1,143||-|5| ||World Animal Protection Canada|-|215|-|86| ||World Animal Protection (Thailand)|||–|| ||Foundation|-|-||| ||World Animal Protection Denmark|-|2,314|–|| ||World Animal Protection India|202|-|–|95| ||World Animal Protection Netherlands|-|874|-|113| ||World Animal Protection Sweden|-|1,147|–|| |||1,345|4,550|-|299| ||||||| The first column shows the grants given to those affiliate entities that carry out programme delivery work but do not fundraise locally. The second column shows the donations and grants received from fundraising affiliate offices. The balances owed to and from the affiliate entities at the end of the year are also disclosed. Affiliate entities are governed by their own separate board of directors and are related parties by virtue of their representation on this charity’s Senior Leadership Team and the collaboration arrangement between the entities. ## 23. Guarantee The charity is also a company limited by guarantee. In the event of winding up, its members would be liable to pay an amount not greater than £1. Trustee’s report and accounts 2023 61 Notes to the consolidated financial statements ## 24. Analysis of cash and cash equivalents ||Notes to the consolidated financial statemen| |---|---| ||24. Analysis of cash and cash equivalents| ||At 1 January
2023
£’000
Cash flows
£’000
At 31 December
2023
£’000
Cash at bank and in hand
18,118
(4,207)
13,911
Cash on deposit
2,494
(1,737)
757
20,612
(5,944)
14,668| Some of the year-end cash balances are held in a number of foreign currency accounts including US dollars and euro. ## 25. Pensions The charity contributed towards a defined contribution scheme for the benefit of employees. Prior to 31 December 2009, World Animal Protection USA provided a defined benefit pension plan covering salaried permanent employees. Benefits were based on years of service and the employee’s remuneration. Effective 31 December 2009, all benefits under the defined benefit pension plan were frozen. Following 31 December 2009, no employees were eligible to participate in the defined benefit pension plan and vested employees in the plan are no longer accruing additional benefits. World Animal Protection U.S.’s participation in the Plan was less than 2% and not considered significant. No liability or expenses related to the Plan have been reflected in the accompanying financial statements as of and for the years ended December 31, 2023 and 2022. The Plan terminated effective 31 August 2023, and paid out all benefits owed to participants in December 2023. Since 2010, World Animal Protection USA has provided a group tax-deferred 403(b) plan covering all permanent employees. The assets are held for each employee in an individual account maintained by an investment firm. Eligible employees may contribute to the plan up to allowable levels. World Animal Protection USA matches employee contributions to the plan up to 3% of each employee’s bi-weekly salary. Employees forfeit employer contributions if they terminate in the first three years of employment. ## 26. Legacies The value of legacies notified to the Charity, but which do not meet the recognition criteria (and so are not accounted for within the financial statements) is approximately £3.9 million (2022: £3.9 million). Trustee’s report and accounts 2023 62 ## Thank you ## To our supporters We would like to say a sincere thank you to all our supporters. Ending animal suffering starts with moving people to care and contribute; you have made life-changing work for animals possible in 2023. With your continued generous support, we will work hard in 2024 and beyond to move the world to join us in protecting animals. ## To our volunteers Volunteers are important to World Animal Protection in many ways, from raising vital funds to helping with office administration and support. Many thousands give their time and support by engaging with us in forms of campaign action. So, we would like to express our warmest thanks to you all for your dedication and hard work during 2023. You make a fundamental contribution to our mission to move the world to protect animals. Photo credit: Vladimir Turkenich / Shutterstock Trustee’s report and accounts 2023 63 ## World Animal Protection 5th Floor 222 Grays Inn Road London WC1X 8HB UK +44 (0)20 7239 0500 info@worldanimalprotection.org W: worldanimalprotection.org /WorldAnimalProtectionInt /world_animal_protection /MoveTheWorld /animalprotection Copyright © World Animal Protection ## 06.24 World Animal Protection is the operating name of World Society for the Protection of Animals. Company Limited by Guarantee in England and Wales, Registration No. 4029540. Registered Charity 1081849