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2024-03-31-accounts

Trustees’ Annual Report

1 April 2023 – 31 March 2024

Contents

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Introduction

It’s been a landmark year for Global Canopy. By targeting the market forces destroying nature, we drive financiers, corporates and governments to make better decisions for nature, forests and people. And on a global level, it has been a year of significant landmarks that have the potential to accelerate change.

The final COP28 text, agreed in Dubai, was the first time ever that tackling deforestation was included – showing greater global recognition that it is a critical part of climate action. In the EU, the world’s first deforestation due diligence law came into force and despite mounting pressures, its significance should not be understated. And after two years of development, the Taskforce on Nature-related Financial Disclosures – an initiative we co-founded – published comprehensive recommendations for nature-related risk management and disclosure.

These historic “firsts” show that sustained, evidence-based advocacy by Global Canopy and our peers can make positive changes in the way financial and regulatory systems impact deforestation.

In a year of milestones, we launched our tenth annual Forest 500 report, assessing the 350 companies and 150 financial institutions with the most influence on commodity-driven tropical deforestation. A decade of work that has shown beyond any doubt that voluntary action alone is not driving change at the speed and scale we need.

countries, like Brazil’s Forest Code.

In the UK, the evidence we gave to Parliament’s Environmental Audit Committee formed a significant part of their January report that demanded the UK government strengthen proposed due diligence laws here, to cover both legal and illegal deforestation, to regulate the finance sector and to include vital human rights protections. Now the UK Treasury has been tasked with exploring whether existing legal frameworks on deforestation sufficiently address the role of finance.

The launch of Forest IQ was another landmark. A data platform created by us alongside an alliance of leading not-for-profits which, for the first time, brings together the best available, aligned and actionable data on how more than 2,000 major companies are addressing their links to deforestation. It is a powerful new ally for financial institutions to play their part in a rapid marketwide transition away from deforestation.

And then there’s our expanded work in Brazil – focusing on the country that will host COP30 in the Amazonian city of Belém. We’re looking to transform cattle markets that are responsible for 40% of the country’s emissions. We helped organise a finance sector workshop in Brazil to engage with the finance sector on the journey ahead as a reinvigorated government puts nature and forests at the heart of the climate conversation.

Tackling deforestation, nature loss and associated human rights abuses must be at the heart of joined up action on the intertwined climate and nature agendas. Our work over the past year with governments, corporates and financial institutions has narrowed the ever-diminishing set of excuses for inaction.

In November we published our first full Deforestation Action Tracker report, assessing more than 700 financial institutions with high-profile climate commitments. This crucial resource highlights the inexplicable blindspot the finance sector has on deforestation.

These findings demonstrate why laws are so critical - so we’ve worked to ensure the EU Deforestation Regulation (EUDR) is effective. Our Trase team has published recommendations for establishing a fair and effective risk benchmarking to underpin strong EUDR enforcement by EU member states. Trase analysis also highlighted how EUDR enforcement would benefit from greater data transparency around legal systems in exporting

Niki Mardas Executive Director, Global Canopy

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Our Strategy & Ambition

In this financial year, Global Canopy has embarked on implementing the organisation’s 2023-2030 Strategy. This sets out our vision for impact in the years to 2030 – a crucial period for achieving a global nature and climate transition.

The Strategy continues to focus on three key outcomes that align with and are delivered through Global Canopy’s programmatic activities:

1. Open data transparency

  1. Strong requirements on markets

  2. Action and accountability for deforestation-free finance

These outcomes form the anchor for Global Canopy’s plans through 2025. This is a period of critical opportunity for the organisation, as deadlines in high-profile international deforestation targets and the impending climate COP30 in Brazil bring forests more firmly into view for key stakeholders in government, business and finance.

Our main priorities for implementing the Strategy at this time include:

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“This is a stark reminder that continuing with ‘business as usual’ poses a severe threat to our planet, reinforcing the urgent need for a transition to sustainable business practices and to stop the financing of nature destruction.”

Niki Mardas

Global Canopy Executive Director in the State of Finance for Nature report

Bringing Nature to the Heart of the Climate Conversation

The nature crisis and the climate crisis are two sides of the same coin. The destruction of forests and natural ecosystems is exacerbating climate change and frustrating progress toward net-zero targets. So nature must be at the heart of the climate conversation.

We used COP28 in Dubai to release Trase data quantifying the greenhouse gas emissions caused by deforestation and peatland degradation linked to countries’ production of five key commodities; beef, soy, palm oil, cocoa and wood pulp. It showed commodity-driven deforestation and peatland loss annually emits more carbon than Germany.

The State of Finance for Nature report

We co-authored the latest State of Finance for Nature report with the UN Environment Programme. For the first time the report quantifies the scale of public and private finance invested globally each year in activities with a negative impact on nature, revealing the scale of financial flows that must be halted and reversed: US$7 trillion. We were keynote speakers at the launch event and were interviewed by the UN news channel bringing this critical figure to the attention of the finance industry/investing public.

Major summits including COP28, London Climate Action Week and Climate Week New York give Global Canopy a platform to reach target audiences, work with partners and share our message. We were actively involved at all three summits – speaking

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at events and engaging with key networks to ensure nature was on the agenda. Over the course of the financial year 15 different spokespeople from Global Canopy spoke about our tools, data and guidance at over 40 separate events and webinars.

We’ve published opinion pieces in key media outlets including about our Forest 500 report launch in Reuters and about our guidance work in Environmental Finance. Our projects and spokespeople have been regularly quoted in outlets including the Economist, Bloomberg, AP News and the Financial Times, steering media discussion on key topics such as due diligence legislation, supply chain transparency and forest finance. And high profile interviews have appeared in Impact Investor and on the Grant Thornton podcast.

“Deforestation is a huge part of the climate problem. There is no way to get to net zero without action on deforestation.”

Emma Thomson Forest 500 Lead

Over the last year we’ve also dramatically increased our online presence, with more social media followers, mailing list sign ups and website visitors. Powerful videos, animations and written content have driven this increase. Over the year, 5,000 new followers subscribed to Global Canopy’s LinkedIn account and we launched a new Instagram channel. There was also a 40% increase in users of the Global Canopy website, with over 12,000 additional users during the financial year, alongside a 37% uplift in the number of people on the Global Canopy mailing list. This means we are bringing our changemaking data and insights on nature loss and deforestation to a much larger audience than before.

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Driving Transparency and Increasing Accountability

Transparency and accountability are key to driving change and improving outcomes for nature, forests and people.

2024 Forest 500 report

Our tenth annual Forest 500 report was published in February. To mark a decade of accountability work we set out 10 lessons from 10 years of deforestation data.

There has been progress. In 2014, just 11% of financial institutions in the Forest 500 had published a deforestation policy. Ten years later that figure has risen to 45%. But it’s nowhere near enough. Of the companies and financial institutions that have featured in each of the 10 annual assessments since the Forest 500 was established, 23% have still not published a single commitment on addressing deforestation.

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The report has received over a thousand downloads and extensive media coverage including from Reuters, IR Mag, Bloomberg, the Independent, ESG Investor and Forbes Brasil. Our data has also been incorporated into the work of other initiatives and campaigning groups that are variously working to advise companies and financial institutions or holding them to account. This includes Planet Tracker’s Nature Scorecard, Accounting for Sustainability guidance to pension fund chairs and trustees, the French Sustainable Finance Institute report, and CDP and Proforest work on sustainable beef supply chains.

Drawing on learnings from Forest 500, we will increase efforts to promote strong regulation, especially of finance in both the EU and the UK. We’re expanding our focus on Brazil cattle supply chains – one of the most influential sectors in deforestation worldwide. And our guidance and engagement tools are increasingly emphasising the connection between deforestation and climate transition plans.

75% of financial institutions with significant climate commitments have no deforestation policy

Deforestation Action Tracker launch

November saw the publication of our first full and detailed stocktake of action on deforestation by more than 700 financial institutions that have strong net-zero commitments as part of GFANZ or related groups.

The Deforestation Action Tracker report has had almost 500 downloads since publication. There was extensive media coverage in leading ESG investor press including Environmental Finance, FT Sustainable Views, ESG Investor and SG Voice. Attendees at the launch webinar included asset managers Aviva Investors and Schroders; banks BNP Paribas, Deutsche bank and Lloyds bank and pension fund Scottish Widows

The Bolivian soy sector

In August, new Trase data shone a powerful spotlight on the deforestation crisis caused by the Bolivian soy sector. It is much smaller than that of powerhouse Brazil - but each tonne it produces is linked to seven times as much deforestation. The findings were presented through both inperson presentations to farmers’ associations in Santa Cruz and strong communications collaborations with partners like WWF and Mighty Earth. The data attracted high-profile coverage in international broadsheets like The Guardian and La Vanguardia, as well as trade press and Bolivian publications.

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of financial institutions assessed have a deforestation policy in place for all highest risk commodities

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Human rights briefing

Global Canopy’s second annual human rights briefing, published in July, was one of our most downloaded materials of the year. It uses Forest 500 data to take a deeper look at the human rights issues associated with deforestation - once again holding companies and financial institutions to account for their actions.

The webinar, where Global Canopy was joined by speakers from ClientEarth and grassroots Brazilian human rights organisation Terra de Direitos, had 178 attendees - more than double that of the first human rights briefing. Attendees included HSBC, Amaggi, Mongabay, Friends of the Earth and WWF.

Bringing this overlooked issue to the fore we’ve helped promote the award-winning ‘We are Guardians’ documentary, hosting screenings in Oxford, London and at COP28 in Dubai. Directed by Edivan Guajajara, Chelsea Greene, and Rob Grobman, and with Executive Producer Leonardo DiCaprio, it tells the story of those on the front line in the battle to protect the Amazon.

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Supporting New Laws on Deforestation

The top lesson from our tenth annual Forest 500 report was clear - voluntary action alone doesn’t cut it, regulation is essential to drive effective action on deforestation. And over the last year we’ve been actively involved advising and lobbying politicians in both the EU and the UK to create effective due diligence laws.

The European Union Deforestation Regulation (EUDR)

In April 2023 the European Parliament approved the EUDR which then came into force at the end of June. Although under mounting pressures, the law has the potential to galvanise action across entire markets and sectors. But careful and informed application is key to ensure it lives up to that potential.

Drawing on our experience with deforestation data, Trase published two policy briefings highlighting lessons for the European Commission (on how best to approach classifying sourcing regions to support enforcement checks) and Member States (on the data available to support assessments of Brazil’s soy exports for compliance with national laws). Trase experts have also regularly engaged with media to demystify the EUDR and the data requirements it imposes on companies and regulators, appearing as authoritative commenters in a range of publications including Bloomberg, Reuters, Associated Press and more.

UK due diligence laws

In the UK a due diligence law tackling illegal deforestation was promised as part of the 2021 Environment Act. The law requires secondary legislation yet to be passed by the UK Parliament. In November our Trase programme produced research with Global Witness highlighting that during the two year delay, imports of beef, soy and palm oil to UK markets have been linked to the destruction of an area of tropical forest almost twice the size of Paris.

Effective laws require regulation of the finance sector - currently not

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included in either the UK or the EU legislation. This was a key part of our evidence to the Environmental Audit Committee who backed our call in their report on deforestation published in January. Pressure from us and like-minded NGOs has secured a Treasury review to assess whether the current regulation of the finance sector is adequate.

We’ve published an insight detailing the six key elements effective deforestation regulations must include and we’ve spoken about our demands at the All Party Parliamentary Group on deforestation. And in September for the first time our Policy Director Helen Bellfield spoke at an event at the Labour party conference.

Our expertise also bolsters the evidence base for campaigns for effective laws in other jurisdictions. The Forest Act is yet to be passed by the US Congress and Trase research with Global Witness (covered in Forbes and the New York Times) showed that an area of tropical forest the size of Los Angeles has been lost in just two years thanks to imports of deforestationlinked palm oil, beef, coffee and other products flooding the US market. Progress from governments now needs to be turbo-charged and we will continue to support advocacy to ensure this happens.

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Enabling Action Through Data and Partnerships

In 2023 the world lost 3.7 million hectares of tropical forest - equivalent to losing 10 football pitches every minute. Such destruction cannot be sustained. Immediate action from companies and financial institutions is essential. Key to our work is enabling that action, giving solutions to those driving the destruction, by identifying where deforestation is taking place and providing tools for investors to effectively tackle it.

Forest IQ

Forest IQ, a powerful new ally for financial institutions, was launched at a high profile event at London Zoo. Created by Global Canopy, ZSL and the Stockholm Environment Institute, the data platform brings together the best available aligned and actionable data on how more than 2,000 major companies are addressing their links to deforestation. Developed in close consultation with financial institutions, it is specifically designed to meet their needs for comprehensive deforestation data - sweeping away a key excuse for inaction.

In 2023 the world lost 3.7 million hectares of tropical forest – equivalent to losing 10 football pitches every minute

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The platform was trailed at events at the Sustainable Investment Festival, in the heart of the City, and London Climate Action Week. The launch event at ZSL in November featured a keynote address from renowned science and natural history broadcaster Liz Bonnin and a panel session with senior representatives from the TNFD, the PRI, Federated Hermes and Aviva Investors.

To date the data has had over 800 signups. Media coverage has included an opinion piece authored by Freya Bannochie, Forest IQ Lead, in Environmental Finance, as well as coverage in key ESG outlets such as Impact Investor, ESG Clarity and ESG Investor.

Two months after the launch, Forest IQ held an event at EY’s offices to raise awareness of deforestation within the wider climate context and position Forest IQ as a key tool to support climate and nature transition plans. Attendees included Barclays (who requested the licensed data and a meeting with Forest IQ the day after the event), Aviva Investors, Goldman Sachs, HSBC, Lloyds and Schroders.

Building accessibility and collaboration for Trase

Trase reached more companies, financial institutions and policy-makers than ever this year, through targeted, user-friendly content. Trase.earth relaunched in January 2024 with a new look, offering fresh and intuitive tools to explore and display data. Key aspects of Trase methods were demystified for users through a series of short, accessible FAQ videos and regular drop-in webinars, enabling greater uptake of Trase data and insights.

Bespoke webinar and digital content, timely reactions to global events (such as President Lula’s visit to China) and strategic partner collaborations enabled Trase to reach new audiences in China - the world’s biggest importer for key forest risk commodities such as Brazilian beef and soy and Indonesian palm oil. With an opinion piece on the Brazilian cattle sector, jointly authored with the Tropical Forest Alliance China and published by the World Economic Forum, and WeChat articles created with BellaTerra to disseminate translated Trase insights, Trase is opening the door to deeper and longer-term collaborations on supply chain action with this key import market.

Supporting the Taskforce on Nature-related Financial Disclosures

In September, after two years of design and development, the Taskforce on Nature-related Financial Disclosures (TNFD) - an initiative we helped

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create - published its Final Recommendations for nature-related risk management and disclosure.

companies in their portfolios in Brazil, Peru, Ecuador and Colombia.

We helped create vital TNFD sector guidance for the food and agriculture and aquaculture industries, and worked with the World Business Council for Sustainable Development (WBCSD) in producing the TNFD’s forestry, pulp and paper sector guidance.

Our work with the TNFD also included supporting it to develop the UNDP Learning for Nature Course, in which more than 1,500 organisations have enrolled.

Exploring Natural Capital Opportunities, Risks and Exposure - ENCORE

Throughout the year the ENCORE platform – Global Canopy’s partnership with UNEP-FI and UNEP-WCMC – gained increasing recognition as the starting place for organisations to explore their exposure to naturerelated risk. There are now over 6,000 registered users. We have grown our international reach, providing support and building capacity to use ENCORE among organisations in Colombia, Indonesia, Peru and South Africa.

By January 320 companies and financial institutions had signed up as early adopters to start their TNFD nature-related corporate reporting. And they represent a significant tranche of the economy. The companies represent US$4 trillion in market capitalization, the financial institutions represent US$14 trillion in Assets under Management. And throughout the year, we’ve played a crucial role supporting companies and financial institutions to understand nature in relation to business and finance, and to build their capacity to implement the TNFD Final Recommendations.

It’s also been highlighted as a crucial tool for financial institutions using the TNFD framework. The TNFD Recommendations demand financial institutions evaluate dependencies and impacts on nature. ENCORE enables them to refine their focus and prioritise key companies in relevant sectors.

We helped the TNFD produce and release its educational resource, TNFD in a Box – a vital asset for inhouse sustainability teams looking to enhance colleagues’ understanding of nature in business and finance contexts, and to help them secure buy-in from senior leadership in their organisations to start adopting the TNFD.

We piloted the TNFD recommendations prior to its launch with several multinational organisations. Three of them, AECOM, JGP and PIDG went on to become Early Adopters of the TNFD. The case studies have received over 1,600 downloads through the Global Canopy website. Relatedly, we launched a report investigating financial institutions’ abilities to obtain critical geographic location data about the operations and supply chains of

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Road to COP30 in Belem

Home to a wealth of biodiversity, action from Brazil is crucial if we’re to succeed in tackling the twin climate and nature crises. With the national government taking a global leadership role, COP30 in Belem will be a significant moment - bringing the climate COP to the heart of the Amazon rainforest.

In August we worked with the Science Panel for the Amazon, and the UN Climate Champions initiative to organise the Finance for Zero Deforestation Amazon workshop, during the Presidents’ Summit in Belém.

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It galvanised leading financial institutions, scientists, and civil society to collaborate. Five individual work programmes have been established, three looking at scaling up forest positive finance in Brazil and two focusing on reducing the flow of forest risk finance into the agriculture sector.

Deforestation-free Finance for Brazil’s Cattle Sector

The cattle sector in Brazil is the single biggest driver of deforestation in the world. Any plan to end market-driven deforestation must address the unique role of this sector. In this financial year, Global Canopy continued to bring transparency to the supply chains of beef exports from Brazil through new Trase data releases and continued investment in the Do Pasto Ao Prato initiative, which maps the flow of products within the domestic market, from slaughterhouses to the points of sale across the country. This work on the domestic market is particularly crucial because three-quarters of Brazilian beef is consumed within the country.

In the run-up to COP30 in the Amazon, building on Brazil’s pledges to end deforestation by 2030, Global Canopy is also ramping up efforts to transform cattle financing in Brazil. We have expanded the size of our team based in Brazil and are customising our tools and guidance for business, finance, government and civil society in Brazil. In the coming year, we will bring new baseline assessments and sectoral guidance to the key major global financial institutions and networks with the greatest influence on Brazil’s cattle sector - charting a clear path and setting global expectations for immediate and strategic action on their portfolios.

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Financial Review

Global Canopy divides its work into different programme streams so we can group activities together in terms of outputs and fundraising.

Financially Global Canopy has continued its growth trajectory and maintained a strong financial position during the year ended March 2024. Despite the challenging economic climate income has grown by 37% and expenditure has increased by 27% as compared to last year. This has enabled the Trustees to maintain the £300k designated reserve of unrestricted funds to use for investment in impact and organisational growth for the year beginning April 2024.

INCOME EXPENDITURE

Building on a stable financial picture at the end of March 2023, overall funds being carried forward to 2024/25 are £3.69 million (£2.48 million in March 2023), split between unrestricted funds of £1.28 million and restricted funds of £2.42 million. This level of unrestricted funds continues to provide us with stability and the ability to invest in future development.

Income

Our income for the year ending 31 March 2024 increased by 37% to £7.05 million (£5.16 million in 2023).

Restricted income grew by 34% from £4,519k in 2022/23 to £6,045k in 2023/24. This was due to continued success in growing programmatic income, most notably in the growth of our Corporate Performance and Brazil programmes.

Income from contracts was £195k in 2023/24 which is higher than the previous year (£84k). Voluntary unrestricted income also increased to £790k in 2023/24, up from £551k in the previous year. Overall this increased income reflects our investment in resourcing our development team. With a new strategy and planned business plan we will continue to explore and develop new income streams in the future, making an important contribution to how we deliver our work. Global Canopy also plans to invest further in its fundraising capacity in 2024/25.

INCOME

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|||||| |---|---|---|---|---| |£’000|2020-21|2021-22|2022-23|2023-24| |Restricted income|1,791|3,566|4,519|6,045| |Contract income|252|249|84|195| |Voluntary unre-| |310|668|551|790| |stricted income| |Other trading| |8|10| |activities| |Other income|8|6|1|12| |Total Income|2,361|4,489|5,163|7,052| |ee|

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Expenditure

Global Canopy’s expenditure increased by 27% in the year to March 2024. This is the result of Global Canopy’s success in securing new programmatic funding, most notably in the Corporate Performance and Brazil programmes. The table below shows the total expenditure on charitable activities by programme.

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EXPENDITURE
£’000 2020-21 2021-22 2022-23 2023-24
Corporate Performance 616 1,158 1,775 2,403
Supply Chain Transparency 1,173 1,063 1,368 1,160
Nature Related Finance 602 928 1,128 1,729
Other activities 22 117 121 335
Charitable expenditure by
Programme (including 2,413 3,266 4,392 5,627
support costs)
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The cost of raising funds increased by £11k to £197k in 2023/24 up from £186k in 2022/23. This was mainly due to investment in the fundraising team especially to support growth of our growing programmes and explore new funding opportunities.

Cashflow

The cash flow statement shows that cash has increased by £1.32m during the year to £2.91m at the end of March 2024. This mainly due to cash received in 2023/24 for activities related to 2024/25.

We are mindful of the uncertainties around future funding and continue to monitor the increased costs of operation. We therefore continue to look out for efficiencies in our operations and are looking to invest some of our resources in the development of a new strategy and keep improving our fundraising. We will also invest in our systems and structures to support anticipated growth and create an organisation fit for the future.

Reserves

Global Canopy’s policy is to hold reserves for the following reasons:

A target range of General free reserves based on several scenarios where levels of risk that have a financial impact on Global Canopy materialise is set by the board. We will take a view that all unrestricted funds are not renewed and we do not receive any other unrestricted funding. In the short term, we will consider keeping only some staff and unavoidable non-staff costs which will allow six to nine months to replenish or to take corrective action.

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RESERVES
2021 2022 2023 2024
Unrestricted
628 792 944 975
funds
Designated
200 300 300
Funds
Restricted
180 914 1,235 2,419
Funds
Total funds at
808 1,906 2,479 3,694
31 March
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Restricted funds of £2,419k represents the unspent amount of grants received for specific purposes which are allocated to particular ongoing projects and are therefore not regarded as free reserves. Designated funds of £300k have been set aside by the Trustees to fund investment in impact and organisational growth over the next 2 to 3 years. Included within unrestricted funds is £17k relating to tangible fixed assets, which could only be realised by disposing of those assets and are therefore not regarded as free reserves. After deducting this amount from the unrestricted funds the free reserves held by the charity are £958k. This is equivalent to 8 months of core costs and within the target range set by the trustees.

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Diversity & Inclusion

As an organisation identifying and addressing the market forces destroying nature we see and understand the historic and systemic barriers in achieving more sustainable and equitable production and consumption systems. We aim to ensure meaningful representation and voices throughout our content and our organisation.

Deforestation is often associated with human rights abuses. Indigenous peoples and local communities around the world face land invasions, land expropriation, violence and – in some cases – assassinations for defending their territory against deforestation. Workers rights abuses, including forced labour and child labour, are also issues in forest-risk supply chains.

Many groups, such as smallholder farmers and Indigenous peoples who participate in or are directly affected by forest-risk supply chains are also excluded and underrepresented in decision-making processes in global supply chains and international fora.

Systemic inequalities are also found within the UK charity sector. There are significant barriers preventing those from lower income backgrounds from entering the sector and Black, Indigenous and People of Colour (BIPOC) are still woefully under-represented. A lack of representation in NGOs not only reproduces structural inequality, it leaves NGOs poorly equipped to tackle society’s most complex problems, including deforestation.

At Global Canopy, we believe a diversity of voices, lived experiences and backgrounds leads to better decisions and outcomes and is needed for us to deliver our mission and goals as an organisation. We commit to tackling such inequalities and the ways in which they intersect, both within our team and our programmatic work. We focus our actions on the following areas:

  1. Recruitment and progression – we ensure that our recruitment and progression processes are inclusive. Our job advertisements are

prepared with neutral language, and avoid use of phrases that could perpetuate bias to encourage applications from a diverse range of candidates. All identifying factors, as far as reasonably practicable, are removed from applications prior to shortlisting and where suitable, multiple people are involved in the recruitment process to minimise opportunity for unconscious bias. We will conduct an annual equity pay review, ensuring internal consistency and external competitiveness.

  1. Programmatic work – we have increased the visibility of social justice in our work and, where we can, amplify the voices of groups that are excluded from decision-making processes including smallholders, Indigenous peoples and local communities and civil society in tropical forest countries.

  2. Culture and values – our flexible and agile approach to work supports the removal of traditional barriers and helps create an environment more conducive to an employee’s individual needs, creating greater opportunity for success. We regularly review roles and responsibilities across the organisation to engage employees as to how their work directly contributes to Global Canopy’s success. In addition, reviewing our policies and processes with diversity, equity, and inclusion at the centre, we will continue to develop our culture that empowers our employees through engagement and sets an example of the standards expected to tackle prejudice, privilege and bias in the workplace.

We have a staff working group on diversity, equity and inclusion (DEI) that is focused on raising awareness and actively championing their importance across the organisation. We have a Leadership Team working group on DEI in recognition that ownership, oversight and accountability by the leadership team is essential in making more progress on DEI issues and to achieve the organisational change required. This group actively champions and promotes DEI in the organisation with accountability for developing, prioritising and implementing an organisation-wide action plan across these priority areas of work that leads to tangible changes in the organisation’s culture and practice.

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Reference & Administrative Details

Registered name: Global Canopy

Our advisors:

Charity registration number: 1089110

Company registration number: 4293417

Address of principal office: 3 Frewin Chambers, Frewin Court, Oxford OX1 3HZ

Trustees who served during the reporting period or when report approved:

Senior management staff:

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Structure, Governance & Management

Global Canopy is registered as a charity (registered number 1089110) and is incorporated as a company limited by guarantee (registered number 04293417). Our financial statements will be delivered to the Registrar of Companies.

Global Canopy was founded through, and is governed by, a memorandum and articles of association. The Board of Trustees approves the budget and accounts of the organisation. They offer guidance and set strategic direction in pursuit of Global Canopy’s objectives. The day-to-day management of the organisation and staff is delegated to the Executive Director and the Leadership Team.

As part of the organisation governance, we have two board committees. One focuses on Finance, Audit and Risk; the other focuses on People and Organisational Development. Committee members include a minimum of two trustees. Up to two external members can be appointed to a committee by the trustees. The committees meet between 2-4 times each year, offering additional time to discuss priority topics such as the annual budget, audited accounts, organisational development and structure.

Global Canopy has several strategic partnerships central to delivering its work. Some of the most significant include:

Subsidiaries

Global Canopy Initiatives Limited was established in May 2005, as a wholly owned subsidiary of the charity through which it ran canopy training activities. Until 2023 it was called Canopy World Ltd. Now Global Canopy Initiatives Limited supports mission-aligned ‘products’ we provide to the market It is a subsidiary run as a social enterprise, with a permanent locked-in commitment to social or environmental benefit.

Appointment of trustees

Global Canopy has a recruitment pack for trustees, which is shared with interested persons. Following applications, screening and meetings with the Chair, selected trustees and the Executive Director, new trustees are appointed by the board.

New trustees receive an induction pack containing information about the organisation, guidance for trustees and other relevant documents. As part of their induction process and ongoing training, they meet with members of the Leadership Team.

Reward & Remuneration

The pay for the Executive Director is set by the board and a pay review is carried out and agreed by the Chair of the board. The Executive Director is, in turn, responsible for setting the pay of the other senior management team members.

The organisation set salary bands following an external benchmarking exercise against market comparators within a similar sector and geography, with a view to being competitive in attracting and retaining talent by paying in the 70th percentile. In setting pay within those bands, the know-how, problem solving and accountability required for each of the roles as well as affordability are taken into account. Annual cost of living adjustments for all employees are awarded based on affordability and inflation rates. Other pay increases are awarded based on individual performance, equity adjustments or to recognise increased accountability / responsibility. required for each of the roles as well as affordability are taken into account. Annual cost of living adjustments for all employees are awarded based on affordability and inflation rates. Other pay increases are awarded based

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on individual performance, equity adjustments or to recognise increased accountability / responsibility.

Risk management

We have robust procedures in place to identify, mitigate and manage risk. The trustees have overall responsibility for ensuring that the organisation has an appropriate system of controls in place. On a quarterly basis, the trustees review the risk register where major risks and uncertainties to which the organisation is exposed are presented. An in-depth review of the risk profile is done on an annual basis, and the trustees believe that systems and procedures are in place to mitigate the major risks identified and potential changes to the risk profile. During the year we also introduced a Finance and Risk committee of the board which undertakes a quarterly in depth review of our risk profile.

The following table shows the major risks that were identified by the trustees in 2023/2024and the plans and strategies for managing those risks:

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Combat of Financial Irregularities

Global Canopy has a variety of measures in place to combat financial irregularities, including:

A) Clear procedures and processes

Global Canopy has strong written procedures and processes across all areas of risk to do with financial operations. Specific examples include the following:

subcontractors and partners and sets clear expectations for ethically dealing with any irregularities.

The above items and our way of working combine to create a strong control environment. We seek to create an open culture within the organisation where everyone is comfortable raising concerns and sees it as their role to address something which is inadequate and to improve the way that we work.

There have been no identified cases of financial irregularities in the past year within Global Canopy’s operations.

This statement is produced in accordance with the requirements of Global Canopy’s funding from the Norwegian Government.

Public benefit

B) Regular outside scrutiny

As an organisation in receipt of significant amounts of public funds, and operating within the UK charity regulatory framework, we are subject to regular scrutiny from outside of the way our funds are managed. Specific examples include the following:

C) Safeguards, policies and codes of practice

We have various high level safeguards in place, such as clear whistleblowing policies and procedures, into which all staff are inducted when joining the organisation. Our code of conduct is signed by staff,

All of Global Canopy’s activities are directed towards the vital public benefit of a transition to a nature-positive global economy. These activities focus on three areas:

  1. Holding companies to account through greater transparency

  2. Providing the data and tools that enable leaders to act

  3. Supporting forest jurisdictions to transition to sustainable land use.

The information and insights we provide help increase the effectiveness, efficiency and equity of global efforts to tackle tropical deforestation and other market impacts on nature.

Forests are vital in the fight against climate change. Ending tropical deforestation and restoring forests can provide up to a third of the emissions reductions envisaged in the Paris Agreement to keep temperature rises under 2 degrees.

Tropical forests contain more than half of all remaining species on Earth. They are vital for regional water security, and over 1.6 billion of the world’s people depend on them for their livelihoods.

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43

Protecting tropical forests is an urgent global priority for all life on earth.

make herself or himself aware of relevant audit information and to establish that the company’s auditors are aware of that information.

The trustees have complied with the duty in Section 17 (5) of the Charities Act 2011, to have due regard to the public benefit guidance published by the Charity Commission.

On behalf of the Trustees

Name: Hylton Murray-Philipson

Statement of trustee’s responsibilities

The trustees are responsible for preparing the annual report and the accounts in accordance with applicable law and regulations. Company law requires the trustees to prepare accounts for each financial year. Under that law, the trustees have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the trustees must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these accounts, the trustees are required to:

Date: Signature:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions, disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as the trustees are aware, there is no relevant audit information (information needed by the company’s auditors in connection with preparing their report) of which the company’s auditors are unaware; and each trustee has taken all steps that s/he ought to have taken as a director in order to

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Audit Report and Accounts

Independent auditor’s report to the members of Global Canopy

Opinion

We have audited the accounts of Global Canopy (the “Charity”) for the year ended 31 March 2024 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Statement of Cash Flows and the notes to the accounts, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the accounts:

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 accounts section of our report.

We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK,

including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts 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 entity’s ability to continue as a going concern for a period of at least 12 months from when the accounts are authorised for issue.

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material mis-statements, we are required to determine whether there is a material mis-statement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material mis-statement of this other information, we are required to report that fact. We have nothing to report in this regard.

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47

Opinions on other matters prescribed by the Companies Act 2006

accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

In our opinion, based on the work undertaken in the course of the audit:

Auditor’s responsibilities for the audit of the accounts

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material mis-statements in the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement the trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, the trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of

Our objectives are to obtain reasonable assurance about whether the accounts 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 accounts.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, was as follows: the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

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compliance throughout the audit.

Use of our report

We assessed the susceptibility of the charity’s accounts to material misstatement, including obtaining an understanding of how fraud might occur, by:

This report is made solely to the Charity’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 Charity’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 Charity’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Colin Mills (Senior Statutory Auditor)

To address the risk of fraud through management bias and override of controls, we:

For and on behalf of Critchleys Audit LLP (Statutory Auditor), Beaver House, 23-38 Hythe Bridge Street, Oxford OX1 2EP Date:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

A further description of our responsibilities is available on the Financial Reporting Council’s website at: frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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Consolidated Statement of Financial Activities

For the year ended 31 March 2024

Note Unrestricted Restricted Total Funds Total Funds
Funds Funds Year to Year to
March 24 March 23
£’000s £’000s £’000s £’000s
Income and endowments
Donations and legacies 3 790 383 1,173 1,015
Income from charitable
activities		 4 195 5,662 5,857 4,139
Other trading activities 10 - 10 8
Other income 12 - 12 1
Total income and
endowments		 1,007 6,045 7,052 5,163
Expenditure
Expenditure on raising
funds		 5 177 20 197 186
Expenditure on charitable
activities		 6 786 4,841 5,627 4,392
Other Expenditure 13 - 13 12
Total Expenditure 976 4,861 5,837 4,590
Net movement in funds 31 1,184 1,215 573
Reconciliation of funds
Funds brought forward 1,244 1,235 2,479 1,906
Funds carried forward 1,275 2,419 3,694 2,479

Consolidated and Charity Balance Sheets

31 March 2024

Group Group Charity Charity
Note At 31 March At 31 March At 31 March At 31 March At 31 March At 31 March
2024 2023 2024 2023
£000s £000s £000s £000s
Fixed assets
Tangible assets 11 17 36 17 36
Investments 12 - - - -
17 36 17 36
Current assets
Debtors 13 1,133 1,084 1,228 1,084
Current Asset Investments 12 400 - 400 -
Cash at bank 2,914 1,595 2,914 1,595
4,447 2,679 4,542 2,679
Creditors: amounts falling
due within one year		 14 770 236 785 236
Net current assets 3,677 2,443 3,757 2,443
Net assets 3,694 2,479 3,774 2,479
Funds:
Unrestricted funds 16 975 944 1,055 944
Designated funds 17 300 300 300 300
Restricted funds 18 2,419 1,235 2,419 1,235
3,694 2,479 3,774 2,479

The notes on pages 55 to 68 form part of these accounts. The accounts on pages 52 to 68 were approved by the board on 15 October 2024 and signed on its behalf by Hylton Murray-Philipson

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Statement of cashflows

Notes to the accounts

Statutory accounts – year to March 2024

For the year ended 31 March 2024

1. ACCOUNTING POLICIES

The following accounting policies have been used consistently in dealing with items which are considered material in relation to the company’s financial statements.

Net movement in funds for the
reporting period(as per the statement
of financial activities)
Adjustments for:
Depreciation charges
Loss on disposal of investment
in subsidiary
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net cash provided by (used in)
operating activities
Cash flows from investing activities:
Purchase of Current Asset
Investments
Purchase of property, plant and
equipment
Net cash provided by (used in)
investing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at end of
the reporting period
Analysis of cash and cash equivalents:
Cash in hand
Total cash and cash equivalents		 Group
Group
Charity
Charity
At 31 March
2024
At 31 March
2023
At 31 March
2024
At 31 March
2023
£000s
£000s
£000s
£000s
1,215
573
1,295
573
19
23
19
23
-
-
-
-
(49)
(575)
(144)
(575)
534
(148)
549
(148)
1,719
(127)
1,719
(127)
(400)
-
(400)
-
-
(21)
-
(21)
(400)
(21)
(400)
(21)
1,319
(148)
1,319
(148)
1,595
1,743
1,595
1,743
2,914
1,595
2,914
1,595
2,914
1,595
2,914
1,595
2,914
1,595
2,914
1,595

a) Basis of accounting

Global Canopy, the charity is a public benefit entity. The financial statements are prepared under the historical cost convention and in compliance with the Companies Act 2006, the Charities Act 2011, the Charities Statement of Recommended Practice (for FRS 102), and FRS 102, The Financial Reporting Standard, applicable in the UK and Republic of Ireland.

b) Income

Income is recognised in the period in which Global Canopy is entitled to receipt, it is probable that the income will be received and the amount can be measured reliably. Donated services and facilities are included at their estimated value to the charity when received. Income received in the year is deferred where it relates to services that will be provided after the year-end.

c) Expenditure

Expenditure is accounted for on an accruals basis and includes irrecoverable VAT. Wherever possible, costs are allocated to specific charitable activities or costs of generating funds. Support costs are allocated in proportion to the days worked on each programme area, function or activity. Grants payable are recognised as expenditure when payment is due to the partner organisation in accordance with the terms of the agreement.

d) Tangible fixed assets and depreciation

Tangible fixed assets are stated at historical cost less accumulated depreciation. Items costing less than £5,000 are not capitalised. Depreciation for all fixed assets is calculated on a straight-line basis to write off the cost of the assets over their estimated useful lives as follows:

e) Pensions – defined contribution scheme

Contributions are charged to the profit and loss account as they become payable under the scheme rules.

f) Foreign currencies

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities are retranslated at the rate of exchange ruling at the balance sheet date. All exchange differences are taken to the SOFA.

g) Funds

Income which is restricted to a particular purpose is treated as restricted income in the Statement of Financial Activities. Any unspent balance will be carried forward as a restricted fund. Unrestricted funds are available for use at the trustees’ discretion in furtherance of the general objects of the charity.

h) Cash at bank

Cash at bank includes cash in hand, balances at banks with original maturities of 3 months or less. Deposits with original maturities of over 3 months are presented as current asset investments.

i) Legal status of the charity

Global Canopy is a charitable company limited by guarantee incorporated in the UK. Its registered office is 3

Frewin Chambers, Frewin Court, Oxford, OX1 3HZ.

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j) Group accounts

The financial statements consolidate the results of the charity and its wholly owned subsidiary Global Canopy Initiatives Limited (previously known as Canopy World Limited) on a line-by-line basis. A separate Statement of Financial Activities and Income and Expenditure Account for the charity have not been presented because the Charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.

3. DONATIONS AND LEGACIES

The consolidated statement of financial activities includes the results of the charity’s wholly owned subsidiary, Global Canopy Initiatives Limited, which began trading again during 2023-24, and was previously known as Canopy World Limited. The financial performance of the charity alone is:

k) Preparation of the accounts on a going concern basis

As at 31 March 2024 the balance of unrestricted funds is £975k (group). After adjusting for the carry value of fixed assets, free reserves are £958k. This is within the trustees target reserves range of £807k to £1.2m. On this basis and given that there are no material uncertainties about the charity’s ability to continue, the trustees are of the view that the charity is a going concern.

2. FINANCIAL PERFORMANCE OF THE CHARITY

The consolidated statement of financial activities includes the results of the charity’s wholly owned subsidiary, Global Canopy Initiatives Limited, which began trading again during 2023-24, and was previously known as Canopy World Limited. The financial performance of the charity alone is:

Income and endowments
Donations and legacies
Income from charitable
activities
Other trading activities
Other income
Total income and endowments
Expenditure
Expenditure on raising funds
Expenditure on charitable
activities
Other Expenditure
Total Expenditure
Net movement in funds
Reconciliation of funds
Funds brought forward
Funds carried forward		 Unrestricted
Funds
Restricted
Funds
Total Funds Year to
March 24
£’000s
£’000s
£’000s
790
383
1,173
270
5,663
5,933
10
-
10
12
-
12
1,082
6,046
7,128
177
21
198
782
4,841
5,623
12
-
12
971
4,862
5,833
111
1,184
1,295
1,244
1,235
2,479
1,355
2,419
3,774
2024 2023
£’000s £’000s
Unrestricted donations
Trusts & Foundations 588 462
Corporate Supporters 103 25
Community Groups 20 -
Individuals 79 64
790 551
Restricted donations
Trusts & Foundations 383 464
1,173 1,015
orporate Supporters included a donation of £100k by Unisea Shipping Ltd in 2023-24. In 2022-23, they made
n unrestricted donation of £25k and a restricted grant of £41k.
. INCOME FROM CHARITABLE ACTIVITIES
2024 2023
£’000s £’000s
Nature Related Finance 1,690 1,398
Corporate Performance 1,945 1,506
Supply Chain Transparency (Trase) 1,049 1,189
Brazil Programme 1,173 -
Other - 46
5,857 4,139
. EXPENDITURE ON RAISING FUNDS
2024 2023
£’000s £’000s
Salaries 127 116
Direct costs 6 16
Support costs 64 54
197 186

Corporate Supporters included a donation of £100k by Unisea Shipping Ltd in 2023-24. In 2022-23, they made an unrestricted donation of £25k and a restricted grant of £41k.

4. INCOME FROM CHARITABLE ACTIVITIES

5. EXPENDITURE ON RAISING FUNDS

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57

6. EXPENDITURE ON CHARITABLE ACTIVITIES

In year to March 2024 Grant Activities undertaken Support costs Total
funding directly (note 7) 2024
£’000s £’000s £’000s £’000s
Corporate Performance 564 1,330 509 2,403
Supply Chain Transparency
(Trase)		 80 772 308 1,160
Nature Related Finance 297 1,152 280 1,729
Brazil Programme 167 75 29 271
Other - 53 11 64
1,108 3,382 1,137 5,627
In year to March 2023 Grant Activities undertaken Support costs Total
funding directly (note 7) 2023
£’000s £’000s £’000s £’000s
Corporate Performance 393 1,080 302 1,775
Supply Chain Transparency
(Trase)		 67 913 388 1,368
Nature Related Finance 2 877 249 1,128
Other - 107 14 121
462 2,977 953 4,392
Grant funding of activities was via the following organisations: 2024 2023
£’000s £’000s
CDP Worldwide 50 2
Zoological Society of London 564 393
Amigos da Terra 117 -
GFI PMO Ltdt 297 -
University of California (UCSB) 80 67
1,108 462

Support costs include costs as described in the table above. Support costs are allocated in proportion to staff days worked on each programme area, activity or function. Support costs have been allocated to the following activities and functions:

Charitable activities (note 6)
Fundraising (note 5)
Other trading activities
Support function costs for each day worked on programme activities is
Support function costs as a % of direct charitable expenditure		 2024
2023
£’000s
£’000s
1,137
953
64
54
-
-
1,201
1,007
2024
2023
£133/day
£120/day
34%
32%

8. STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES, AND THE COST OF KEY MANAGEMENT PERSONNEL
Wages & salary costs
Social security costs
Pension contributions		 2024
2023
£’000s
£’000s
2,308
1,849
275
206
237
191
2,820
2,246

Termination costs, included above, amounted to £39k (2022/23: nil), all of which was settled in the year. The average monthly number of employees, during the year was made up as follows:

7. SUPPORT COSTS

. SUPPORT COSTS
Office costs
HR function
Central Accounting function
Management and leadership
Central Communications function
IT Costs
Programme Development
Other operational costs
Governance		 2024
2023
£’000s
£’000s
167
159
218
190
230
187
148
137
240
195
80
73
96
64
20
-
2
2
1,201
1,007
The number of employees whose total emoluments exceeded £60k in the year was:
2024
2023
Directors
7
7
Programmes & Support
46
38
The number of full-time equivalent employees during the year was
49.1
42.5
£60k - £70k
2
2
£70k - £80k
4
1
£80k - £90k
-
1
£90k - £100k
1
-
For these higher paid employees, the annual pension contributions were
£51,812
£29,281

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In 2023-24, two trustees received reimbursement of expenses totalling £78. In 2022-23, one trustee received reimbursement of expenses totalling £20. No trustee received any other remuneration or reimbursement of expenses.

The directors consider the board of directors, who are the charity’s trustees, and the senior management team to comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis. The senior management team comprises 6 posts at 31 March 2024, namely the Executive Director, Policy Director, Strategic Communications Director, Strategic Engagement Director, Development Director and Finance Director. The total employee benefits including employer pension costs of the key management personnel of the charity were:

2024 2023
£’000s £’000s
Senior management benefits, including employer pension costs 655 534

9. RELATED PARTY TRANSACTIONS

. RELATED PARTY TRANSACTIONS
2024 2023
£’000s £’000s
Donations and grants received from trustees & other related parties 217 21

During 2023-24, the following transactions took place between the charity and its wholly owned subsidiary, Global Canopy Initiatives Ltd:

There were no other outstanding balances with related parties as at 31 March 2024 (2023: £nil)

10. NET INCOME/EXPENDITURE

0. NET INCOME/EXPENDITURE
2024 2023
£’000s £’000s
Is stated after charging
Depreciation 19 23
Auditor’s remuneration for the organisational audit 7 6
Auditor’s remuneration for grant audits 10 9
Auditor’s remuneration for payroll and HR services 4 4
Auditor’s remuneration for Tax advice - -
Rent payable 73 72

11. TANGIBLE FIXED ASSETS

F&F Computer & office
equipment		 Leasehold
improvements		 Total
£’000 £’000 £’000 £’000
Cost
At 1 April 2023 5 84 40 129
Additions - - - -
At 31 Mar 2024 5 84 40 129
Depreciation
At 1 April 2023 4 63 26 93
Charge 1 14 4 19
At 31 Mar 2024 5 77 30 112
NBV – at 31 March
2024		 - 7 10 17
NBV – at 31 March 2023 1 21 14 36

12. INVESTMENTS

2. INVESTMENTS
2024 2023
£’000s £’000s
Investments in subsidiary companies bf and cf - -
Current Asset Investments 400 -

Current Asset Investments represent amounts held on Fixed Term Deposit with Triodos Bank Limited.

The Charity owns 100% of the issued share capital of Global Canopy Initiatives Limited, a company incorporated in England and Wales.

It was previously known as Canopy World Limited and was dormant, but began trading again during 2023-24. A summary of the results is shown below:

2024 2023
£’000 £’000
Balance Sheet
Debtors 22 -
Bank - -
Creditors (102) -
Net liabilities (80) -
Share capital - -
Profit & loss (80) -
Shareholders’ funds (80) -

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13. DEBTORS

3. DEBTORS
Trade debtors
Amounts owed by Group undertakings
Grants receivable
Prepayments
Accrued income		 Group
Group
Charity
Charity
2024
2023
2024
2023
£’000s
£’000s
£’000s
£’000s
62
15
62
15
-
-
102
-
578
546
578
546
39
13
32
13
454
510
454
510
1,133
1,084
1,228
1,084

14. CREDITORS

Trade Creditors
Other taxes & social security
Accruals
Deferred Income		 Group
Group
Charity
Charity
2024
2023
2024
2023
£’000s
£’000s
£’000s
£’000s
192
97
192
97
71
68
86
68
333
71
333
71
174
-
174
-
770
236
785
236

Deferred income relates to income received during 2023-24 for services to be delivered during the 2024-25 financial year. When the work is complete, the income will be recognised in line with the service contract agreements.

The charity had committed the following amount in grants to international projects which will form part of the grants allocated in future years. The current Alligned Accountability grant from the Norwegian Government will provide the income to cover these costs when they are payable.

2024 2023
£’000s £’000s
Grants which expire within one year 318 613
Grants which expire between one and five years 54 452

Grants to international projects contain certain performance related conditions, which determine when expenditure is recognised in the SOFA. Performance conditions under commitments noted above had not been fulfilled at 31 March 2024.

16. UNRESTRICTED FUNDS

At 1 April
Transfers from Unrestricted to Designated funds
Net income / (expenditure) for the year
At 31 March		 2024
2023
£’000s
£’000s
944
792
-
(100)
31
252
975
944

17. DESIGNATED FUNDS

At 1 April
Transfers from Unrestricted to Designated funds
Net income / (expenditure) for the year
At 31 March		 2024
2023
£’000s
£’000s
300
200
-
100
-
-
300
300

15. COMMITMENTS

The Foundation had the following commitments at 31 March 2024. Operating leases

Designated funds represent £300k reserved by the board to fund investment impact and organisational growth.

As at 31 March 2024 the charity had total future minimum lease payments under non-cancellable operating leases as follows:

2024 2023
£’000s £’000s
Land and buildings
Amounts payable within one year 72 72
Amounts payable between one and five years 90 162
Amounts payable after more than five years - -

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63

18. RESTRICTED FUNDS

8. RESTRICTED FUNDS
1
Norwegian Government,
NORAD, Aligned Accountability
2
Bezos Earth Fund
3
Swiss Government (SECO)
via WCMC
4
German Government, IKI,
via UNDP
5
Norwegian Government,
NORAD, TNFD
6
Norwegian Government,
NORAD (via SEI)
7
Arcadia
8
Climate Arc
9
The Packard Foundation, US
10
The Call by Chief Raoni
11
The Gordon & Betty Moore
Foundation (via SEI)
12
Quadrature Climate Foundation
(via SEI)
13
Swedish Government
(SIDA-MPTF) & US Government
(USAID) via UNDP
14
United Nations Environment
Programme (UNEP)
15
The Global Commons Alliance
(via Rockefeller Philanthropy
Advisors)
16
Global Environment Facility
(via UNEP Finance Initiative)
17
The Foundation for the
Promotion of Well-being
18
Finance for Biodiversity
Foundation
19
Synchronicity Earth
20
WWF (US), Trase Bolivia
21
Global Returns Project
22
Norwegian Government, NMFA
(via SEI)
23
Unisea Shipping Ltd
24
CHK Foundation
31
Other Funders		 Balance at
1 Apr 2023
Incoming
resources
Expenditure
Balance at
31 Mar 2024
296
1,291
1,343
244
-
983
60
923
213
492
328
377
-
429
429
-
181
424
546
59
-
357
357
-
-
333
333
-
-
300
85
215
-
214
123
91
-
196
196
-
453
192
255
390
1
174
175
-

2
148
150
-
-
125
119
6
-
100
7
93
17
100
117
-
-
35
35
-
-
33
33
-
-
25
14
11
9
15
24
-
-
15
15
-
-
13
3
10
23
-
23
-
40
-
40
-
-
52
52
-
1,235
6,046
4,862
2,419

18. RESTRICTED FUNDS (CONTINUED)

Movement in the year to March 2023

Balance at
1 Apr 2022		 Incoming
resources		 Expenditure Balance at
31 Mar 2023
1 Norwegian Government,
NORAD, Aligned Accountability		 433 1,177 1,314 296
25 UK Government, FCDO, FGMC - 683 683 -
5 Norwegian Government,
NORAD, TNFD		 - 327 146 181
6 Norwegian Government,
NORAD (via SEI)		 - 307 307 -
11 The Gordon & Betty Moore
Foundation (via SEI)		 433 287 267 453
7 Arcadia - 250 250 -
3 Swiss Government (SECO)
via WCMC		 - 222 9 213
12 Quadrature Climate Foundation
(via SEI)		 32 200 231 1
Swedish Government
13 (SIDA-MPTF) & US Government - 195 193 2
(USAID) via UNDP
26 Still Water Foundation
(via PBAF)		 - 164 164 -
16 Global Environment Facility
(via UNEP Finance Initiative)		 - 163 146 17
9 The Packard Foundation, US - 131 131 -
18 Finance for Biodiversity
Foundation		 - 125 125 -
27 John Ellerman Foundation - 50 50 -
25 Unisea Shipping Ltd - 41 18 23
28 Swiss Government (FOEN)
via WCMC		 - 40 40 -
26 CHK Foundation - 40 - 40
18 The Foundation for the
Promotion of Well-being		 - 35 35 -
21 WWF (US), Trase Bolivia - 33 24 9
20 Synchronicity Earth - 25 25 -
29 German Government, GIZ 5 11 16 -
30 The Rainforest Foundation
Norway, Brazil Programme		 - 10 10 -
31 Other Funders 11 3 14 -
914 4,519 4,198 1,235

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  1. A grant from Norad, the Norwegian Government Development agency, for the Aligned Accountability project to fund a common database to drive accountability and action on deforestation

  2. A grant from the Bezos Earth Fund, Catalysing strategic market action for a faster transition to deforestationfree cattle

  3. Funds from SECO, the Swiss Government’s State Secretariat for Economic Affairs, via United Nations Programme World Conservation Monitoring Centre (WCMC) to support the second phase of the ENCORE project

  4. Funds from IKI, the German Government International Climate Initiative, via United Nations Development Programme (UNDP), Enabling and Scaling up Nature-related Financial Disclosures (TNFD)

5. Funds from Norad, the Norwegian Government Development agency to support the Task Force for Nature

Related Financial Disclosure (TNFD)

6. Funds from Norad, the Norwegian Government Development agency to support the development of the

  1. A grant from the Norwegian Ministry of Foreign Affairs, via SEI, to fund ‘Do pasto ao prato’ a step-change in transparency of the domestic meat market in Brazil

  2. Funds from UNISEA Shipping Ltd, to support the Deforestation, conversion and abuse free (DCAF) investment mandate targeted at family offices and foundations

  3. A grant from CHK Foundation for our Brazil programme, allowing us to invest in the long-term sustainability of this programme, including the development of a Brazil-focused version of the Forest 500, and a media strategy and launch event

  4. A grant from the UK Government Foreign Commonwealth and Development Office’s Forest Governance, Markets and Climate programme, to support Global Canopy’s Forest 500 work and its Trase work

  5. Funds from Still Water Foundation, via the Permian Basin Area Foundation, to be used for general operating support

  6. A grant from the John Ellerman Foundation towards Global Canopy’s core costs, including senior staff salaries

Trase platform, a joint initiative with SEI

  1. A grant from Arcadia for core support to Global Canopy

  2. A grant from Climate Arc, via Rockefeller Philanthropy Advisors, to expand the depth & breadth of Global Canopy’s data and tracking on market-driven deforestation

  3. Funds from FOEN (Swiss Federal Office for the Environment), via United Nations Programme World Conservation Monitoring Centre (WCMC) to further enhance ENCORE, building on the success of the biodiversity module to date, to enable alignment of financial institutions’ portfolios with biodiversity goals

  4. Funds from GIZ, the German Government Development agency to support our Trase work on Programme Sustainability and Standards in global Agriculture Value Chains

  5. A grant from the David and Lucille Packard Foundation to support the development of the Trase Platform

in the context of Indonesian palm oil

10. Various grants which funded The Call by Chief Raoni: A historic gathering of Indigenous Leaders of

  1. Funds from the Rainforest Foundation Norway to support our Brazil Programme work

  2. Grants from other funders supporting Global Canopy’s key initiatives

Amazonia and Global Partners

  1. Funds from the Gordon and Betty Moore foundation to support the development of the Trase platform, a joint initiative with SEI

  2. Funds from Quadrature Climate Foundation to support the development of the Trase platform, a joint initiative with SEI

  3. A grant from the United Nations Development Programme to provide coordination, engagement, communications, and technical support for the Taskforce on Nature Related Financial Disclosure (TNFD) Project. This project is funded by the Swedish & US Governments

  4. Funds from the United Nations Environment Programme (UNEP) to fund the State of Finance for Nature project

  5. A grant from Global Commons Alliance, via Rockefeller Philanthropy Advisors (RPA) to support the Deforestation-free Transition (DEFT) Pathway

  6. Funds from the Global Environment Facility (GEF), via the United Nations Environment Programme Finance Initiative, to support the establishment of a Taskforce on Nature-related Financial Disclosures (TNFD) to develop and disseminate a global framework for corporates and financial institutions to assess, manage and report on their dependencies and impacts on nature

  7. A donation from the Foundation for the Promotion of Well-being to support our Brazil Programme work

  8. A grant from the Finance for Biodiversity Foundation to collaborate on the project “Risk Management for Deforestation Free Finance (TRASE)”

19. ANALYSIS OF NET ASSETS BY FUND

2024
Fixed assets
Net current assets
2023
Fixed assets
Net current assets		 Unrestricted funds
Restricted funds
Total Funds
£’000s
£’000s
£’000s
17
-
17
1,258
2,419
3,677
1,275
2,419
3,694
36
-
36
1,208
1,235
2,443
1,244
1,235
2,479

  1. A grant from Synchronicity Earth to support the Deforestation-free finance Common Investment Mandate

  2. A grant from the World Wildlife Fund (US) for Trase - Mapping soy supply chains in Bolivia

  3. A grant from the Global Returns Project to fund Forest 500 assessments

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20. SOFA FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted funds Restricted funds Total Year to
March 2023
£000s £000s £000s
Income and endowments
Donations and legacies 551 464 1,015
Income from charitable
activities		 84 4,055 4,139
Other trading activities 8 - 8
Other income 1 - 1
Total income and
endowments		 644 4,519 5,163
Expenditure
Expenditure on raising funds 161 25 186
Expenditure on charitable
activities		 219 4,173 4,392
Other expenditure 12 - 12
Total expenditure 392 4,198 4,590
Net movement in funds 252 321 573
Reconciliation of funds
Funds brought forward 992 914 1,906
Funds carried forward 1,244 1,235 2,479

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globalcanopy.org forest500.org forest-iq.com encorenature.org tnfd.info trase.earth