2023-03-31-accounts

BRE TRUST (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENrs FOR THE YEAR ENDED 31 MARCH 2023 11 ¢AC8KBKH 26ffj7r2023 COMPMIES HOUSE 137 'Company Registratjoth Number.. 03282856. Charity ReBistrniion Number rn Englartd and Wales.. 1092193 Charity Registration Number iTrScotland'. SC039320

BRE TRUST FtNANCIAL sTATEME￿rs For ihe year ended- 31 March 2023 INDEX PAGE TnLStee$' and strategic reF 3- 18 Statement of tnLsiees' responsibilities 19 Independeni auditor'5 report to the trnstecs and rnembers of BRE Tn 20-22 Con501idated stalernent of f￿ancIal adivitie5 (incorrKratin8 the cornpany incorne and exwidiiure a¢¢ount) 23 Consolidat¢d and cornpany balance sheets 24 Consolidated cash flow statement 25 Notes to the financial statements 26-48

BRE TRUST FtNANCIAL sTATEME￿rs For the year ended- 31 March 2023 R¢gi5tued offi¢¢: Bucknalls Lane Garston Watford Hertfordshire WD25 9XX BankeTS'. Bar¢lays BaThk PLC I Churchill Place London E145HP Independent Auditors: Crow¢ U.K. LLP Fourth Floor St James House St Jam¢s Square Chel¢¢nham GL50 3PR

BRE TRUST TRUSTEES. ANNUAL REPORT For the year ended 31 March 2023 BRE Trustees report The Council of Trustees has pl￿U[e in presenting its report together with the Audited Financial Ststements foT the year ended 3 1 March 2023. Objects and ctiwitie5 As a charity all the Tntsi's activities must at all limes confotm with the statement of 'obi¢¢ts' given in the 80Yerning d(KU[nen￿ the Articles of Association. The Trnst's objects are for the public b￿erIt.. io undertake, ¢ommission and support res¢aT¢h areas of scien¢¢. engineenn8, inforrnation iechnoloEY, managem¢ni and economi¢s associated with the built enviionmen4 including tts processe5 and artefacts. to advantt knowledge. inThovation. and ¢ornmunication. and to promote educatiot) and excellence, in all such matters, and io Collec4 eollaie and publish usefvl infotmatiort, Ideas, and data relating thereto. and to undertake, ¢ommission, facilitsie and sUp￿rt such other a¢iiviiies and Services as are benefjcial to the built eftvirotuneRt and charitable in18w in accordance with law of England and Wale5 provided ihat il will not include any purpose whLch 15 not charitsble in acco￿n¢e with s.7 of the Charities and Trustee Investmetlt (Scotland) Act 2￿5. The Tn￿leeS confLrnI that ihey have refcrrcd to ihc general guidanct on public bcnefit 15sued by thc Charity Commission. During the year the Tn￿ undertook a major TCVLew of the govutJanc¢ structurt of the Trust and 5ub5idiaries. An investment committee has been sel up to ensure the publi¢ benefit requirements are mei and BRE Trust Continue to sponsor several students for their projects on the burlt environmenl. Structure. gover#ttce and th#nEement BRE TnJ51 (the"Trusi") is a Company limited by Buararttee (Company number 03282856) and is registered as a ¢hanty in England and Wales (No 1092193) and in Scotland (N(p SC0393201. The TnLSt was established to provide independent. non-5e¢iorial ownership of the Building Research Establishment, an EX￿Utive Agency of the Department of the Environment. when it w&s transferred ￿ the private sector in March 1997. The TtU5t is governed by lis m05t recent Anicles of As5rfiaiion which were approved by a meeting of rnembers on 6 Match 2019. In addition. the Trust provide5 Lndependentowner5hip of BRE Group Limited ('BRE Group'l which In turn is the owner of busiThes5e5 rasulting from the privati5ation of the Buildin8 Research Establishtnent. Thc TTUSI protects the independence of BRE Group to ensure that its advice and research rernain objtctiwe and free from bias. BRE Group ¢or)iirtues to have a strong reputatsor). I￿(h nationally and it) the inrnational arena, as an impartial and respetied tonsul¢ats¢y. science and research organisJ¢ion. BRE GTOUP Limiied is the holding ¢ompany for Building Research Esthblislmient Ljmited, BRE Global Limited which are established in England and Wales and BRE Global As$uran¢¢ (Ireland) Limited, a company estsblished and resident in the Republi¢ of Ireland. These subsidiaries in aT¢ owners of other trading companies in the UK and the People's Republic of ChiE)a. This ownership strncture mean5 that.. BRE Trust has the fl¢xibility, freedom and separation from its investments to promote and cany tsut its ehari12bl¢ obj¢ctives for the public 8ood- and BRE Group and irs subsidiory companies can maintsin independence from ea¢h other to Tneet regulatory requiTements.

BRE TRUST TRUSTEES. ANNUAL REPORT For the year ended 31 March 2023 Trust¢e$ and oificer$ Of the Ch•rity The 8OV¢rnLn8 body of the Trust is its Council of TTus¢ees which corupnses at le&st five and no more than ten TnLStees ai any one point in time. The Directors of the company are its TNstees for th¢ purposes of charity law and Ihroughout this report ar¢ collectively rcfrrred ￿ as the"Trustees" Th¢ temi of offiv for a Tnjstee is three years and T￿￿tteS may serve for thffe tenn5. Ncw Ttustees are familiarised with Ihe wo￿l￿g$ of the Trust, irs policies, procedures and governance through an Lnduction programme¢ot)sisting of visits LO the head office, meetingswth key persotmel and oificersof BRE Group together with more fomlal trainin8 including ongoin8 training and 5UPPOrt. The Tmsttts and OtTicers suvin8 during the year and up to tht time of signing thesc accounts were as follow5.. Trnst¢¢s Philip Wilbr8h3m, Chaimiaft Paul Hethcrington Ashley Hook Gary Mi115 Prof. Vicky Pope Jonathan Rickard David Reid Kelly Bream Linda Chandler Appointtd 7 June 2018 3 June2019 18 Mateh 2020 29 Majrh 2023 29 March 2019 3 June2019 26 May 2023 30 June 2023 05 July 2023 Resigned 29 March 2023 Company Secret*ry Dr Paul Conroy BtsaFd Tenure. Cender Diversity ¥ttd Meeting$ As at 3 1 March 2023. the tenure and divttsity of the Tntst board was as follows.. Teoure Cender Diversity 21r up. The recommendatiorLS of the working party weT¢ implement¢d during the 2022123 financial year_

BRE TRUST TRUSTEES. ANNUAL REPORT For the year ended 31 March 2023 Gov¢rnAnfe Frmework (colt.) Following this review, the Tnstees agreed to a number of dwige5 in the board of directors of BRE Group as well as in the commiltee situ¢nJre. PieTS WThiie ieiired from the board of BRE Group at the end of March 2022 and Phil Wilbraham was appointed to the BRE GTOUP board. Following tknrren Messem'5 resignation on the 6 April 2022. Paul Heatherington also JOiTd the board of BRE Group_ The aprrf>inThent of two trustees to ihe board of BRE Gioup, with 5ignifL¢Ant industy knowledge, will stTengthert ihc BRE Group board and ensurecloser working arrdngements exist bctween the Tn￿let'S and Its subsidiary_ The Boxrd t)fDlre¢tors olBRE GM¥p ts aude up as follows: Director Position Appoinied Philip Wilbraham l April 2022 Gillian Charleswonh 21 May20I9 Artdrew Herbert 9 Augusi 2019 Vinodha Soysa Wijeratne 15 December 2022 Paul Hetherington 16 May 2022 Darran Messem 8 July 2019 Malathy Sivapunniyan S October 2020 Piers WILite l November 2019 Re5igtted NED {Chair) CEO CFO CFO NED NED NED NED (Chair) 26 January 2022 6 April 2022 15 July 2022 31 March 2022 Director appointments to the BRE Group Board are made by both the TnLStees and BRE Group, the majority of the Dire¢tOTS at any one time being those 3pwinied by the Trnst. The BRE Group Board meets ai least 4 times each year and ha5 two established cotTLmittees. the Risk and Audit Comrnittee and th¢ Remuneratiot) and Nomination Cornrnittet to assist in the governance of the Group. Standing C•mmlttees The BRE Trusl Council delegate5 some of its work to committees and the comrnittee5 report ¢0 the Council their discussion, a¢tions and recommendations. There are three comrnittces of BRE Trn5t at the lime of signing of ¢hi$ r¢pon". Risk and Audii Commiti¢e Programmes CommLtt¢e NoTninaiions ComTniiiee In addition, BRE Gi0￿P whi¢h is a wholly owned subsidiary of BRE Trust h&5 two Standing committee5. a 1kn5k and Audit COTnmLtte¢ and a Remunerntions and Nominaiions committee. These cornrnitttts are now more closely aligned with the BRE Trt￿¢ ¢on)miiiees. detsils of which art sei out below. BRE Trust Rtsk #nd Audit Committee and BRE Croup Risk *Dd Audit Committee: TheTnLSt's RLsk and Audit Committee supports IheTrust Board'sTe5ponsibility for oversight of risk management. the conrrol envirotjment, policy review and the iThle8rity of financi31 staternents and reporting It seeks as5uran¢¢ from the BRE Group Board on the sowid management of its investments. The cornrnitte¢ Tnernbership consisted of Jonathan Ri¢kard and Gary Mills and includes at request attendance frorn member5 of the Group Board. BRE Group Risk and Audit eornmillee is responsible for oversight of both the external audi¢ work as w¢ll as looking at the internal flnancial controls, iniernal controls, and risk management System atross BRE Group. Th¢ committee was renamed BRE Group Risk and Audit Committe£ in July 2020 to refleci the importance the Board places on risk management. Membership of the committee Consist￿ of Malathy SivapunniyaD (Chair) (re$tgned IS July 2022) and Darran Me5sem (resigned 6 April 2022). Jonathan RickaTd Chaired the mee¢ings of the cornmitteeutjiil the endof the financial yearand Gary Mjlls, who wasappoir)ied to the comTnittee when heb￿arne Trustee, has b¢tome the Chair for financial year 23124. The two Risk and Audit Commjnees moved towards joint meetings duTing the year a5 part of the changes introduced by the Future Governance and StTucbJre5 Group. with the aim of faciliiatirtg ¢loser woiking between BRE Group and th¢ Tnjsl. The BRE Group Risk and Audii Commititt met 3 times during the year with two of those m¢e(ings being held jointly with the BRE Trnsi ￿"sk and Auth"t Committee as of a closer collaboration.

BRE TRUST TRUSTEES, ANNUAL REPORT For the year ended 31 Mar¢h 2023 BRE Trust lthvestment Committee: The Investment Committee was fomied in Febtrw 2023 and arvroves the funding for research projects and provides direction and govemance for fiJDJre a¢iivities of commiSSLoned work and ensures its disseminatiort is effective and wide reaching. The key activities are the review of progress with the ptogrammes, review of the operations proces5e5, review of the relevant risks and ¢ornrnunications and promotions of the programm¢. The inierim InvesTheni Committee membership consisted of Vicky Pope. Ashley Hook and Gary Mills. A Chair of the Committee will be elected early it) the financial year 23n4. The Comrnittee met Once during ihe year on 6 Febrnary 2022 to agree recommendations for Tern)s of Refuence and the scope and purpose of the Committee. BRE Trust f4••inations CorntDlttee and BRE Group Remuneriion •d Nominations Commlitee: The BRE Trust Nominations Commill¢e manages the appoinmient of new mLsiees and review5 the roles and TespoT)sibilities of both TNsiees and thc Chair of TnJsiees_ The BRE Group R¢muneratioTh and Norninations Committee is responsible for deterniit)ing the remuneTation and ¢onditions of the ¢xe¢utive directors of the Group_ In determining appropria￿ levels of r¢rnunernhon foi the exC￿[1ve directors. the Remlln¢ralion and Nominations Committee airns ¢0 provide pa¢kages that aTe comwitive in th¢ marketpla¢e and will anra¢t and retain high quality executive5 capabl¢ of achirving the BRE GTOUP'S obJe¢tiv¢s and ultimaiely those of the Trnst. Executive pay 1$ externally benchmarked using Korn Fery Hay PayNet dats. Our remunetatlon aPPToa¢h is to aim to pay market salarie5 whi15t considering the lotal cash compeThsation for executive roles which balance affordability with attractin8 and retaining the nght tslent ihat we need. Following the Governance changes ouilined elsewhere in this repor4 the Board of Trustees artd the BRE Group Board agreed to combine the BRE TTr￿ and BRE Group Remunerntion and NoTnination Cornmittees. w¢h the aim of facilitating closcr working between BRE Group and thc Trusr. The committee members for the joint commitlee durin8 the financial year wcre Ashlcy Hook {Chair) and Paul Hetherin8ion. A ihÈrd committet member, betng a Trustee. will be appointed during Financial Year 23124. The newioini Committ¢e met on 24 February 2023.

BRE TRUST STRATEGIC REPORT For the year ended 31 March 2023 Introducdon BRE Tnst Is the Icath'ng inde￿¢ charity dedxcated to Improving the built enviwttynent for the benefit of ciety. BRE Trust supports this aitn by bringing the benefits of applied ￿$¢arch- in the forni of digital product& stsndard5. testin8 and certifieatiorL trainin8 and qualifi¢ations- to key se¢tOTS in th¢ built environment BRE GTOUP provides Servi￿ that furwj the BRE Tntyt. The work of the BRE Group is fo¢us¢d on ih¢ safety, security and sustainability of buildings. BREEAM and LPCB are two of the mosi signifjcani services that BRB ofyers. BREEAM is a world-renowned 5U5tsiTJable building benchmaTking scheme. LPCB is internationally recognised for its standards arourvj se¢urity and safery of ¢onstsuction produc￿ and systems. BRE Group also provides systems to monitor health. safety and ¢onsfyu¢tion waste. as well as training through the BRE Academy. The Group has provided research and data rnodellirtg services to UK government for marty yurs and continues to do 50 for housing data and methodolowes that support thc standard a5sessmeni pro¢￿vre underpÈnnin8 Ener8y Perfortnan¢e Certificatcs. The Group ¢olltinucs to deliver a wide Tange of research-and it is this, and imiovatio that will fonn the basi5 of the Group's fu￿re 51ra¢e81¢ dirertion. Purpose BRE exists to contributo to a thriviDg nd wstln8W¢ vmrld by developlne kience-led solutlons to bullt environment challenges (Jlr vision is that we want to be.. To be tht world4esding Innovation, scltnt4 *nd dats hub for the I￿111 envlrtsn￿e￿t We Continue io work with governments aNI commercial markets who increasingly reco8nise the value of our products and s¢rvices. Our focus is on increasing our reach as an innovative. sci¢n¢e+led organisation with a focus on our capabilities in colleciin& verifying and rnodelliD8 dats. Atbievemtnts and perforrna￿e Extermal climaie ESG priorities are undeniably a driver for cotnm¢rcial clicnts. There is an increasing undeTStanding of the valu¢ of ESG issu¢s and the need to comply with a raft of regulatory and legislative requirements. Tnany of whi¢h ESG data sUPPOrts. Global standard& I￿gelY but not excliisively led by the financial sector. compete to measure the value. perf0M￿nce aRd ￿￿tIal of indtvidLTral properties and portfolios. Building and prcthct safety legislation and regulation is evolving in the UK with the Building Safety Act making 5iEnifican¢ change5 to context in which buildings wtll be designed, COn$tN¢t￿ and managed. We continue to a&fjes5 where our expertise in testing and ti3ining can Tnake the mosl valuable contributson io making buildings 5afcr in the fil￿re. BRE Group is continuing to deepen welationships with all kry stakeholders including the UK Government. With i&%ue5 like climate rhange. healthy home5 and building safety T¢¢¢iving significant publ]¢ and media attention as the nexi general ¢le¢li￿ approa¢hes, we will Continue to share our resear¢h with all ini¢rested parties in order to ensure future policy. is well informed and ev•Jetice bose BRE Trns¢ Athlevements and performance The BRE Trust uses its reseTves and any irt¢ome receivtsl b)th through gift aid donated by BRE Group and from other exiemal resoyrces to fi￿d new reseaTch and education progfdmmes. During the year several students were wnsored by th¢ Tnw. BIiE TTUSt did noi und¢rtake any fi￿draisInga¢ttvity requiring discloswe uoder S162A of the charitiu A¢t 2011.

BRE TRUST STRATEGIC REPORT For the year ended 31 March 2023 BRE Group aehievemtNiS in ihe year futhre opportuniti￿. Finantlal Revlew The £onsolidaied results for the BPE Tnw show a net profit before tsx of £2.8m (2022.. £8.8m) for the year on income of £57.9m (2022.. £59.6tn). We have increas&J income by 0.3% ￿tT￿ed to the previous yeaT with incre&5es in our Building Performance Services division bu¢ the ￿mpletiOn of the CtH and LEP grant woik have reduced the grani revenue in the year. The reslructuring work thai was undcrtaken in the previou5 fLnan¢ial year has rninimised the reduction in revenue ¢0 a 3Yo decrcase in tn¢ome while Tninitnising Cost in¢]tase5 but general inflation, energy costs and additional legal costs have lcd to an 8.kn increase in expenditUTe on charitable activities. Durin8 the ye4r the significantly irnproved two large office blocks dating from the 1970s ojid 1980s which. were renovated with the assistance of grant fiJnding frtsm the [￿1 Enietprise Partnership in Hertfordshire in the site at Garsion have been opened. This has improved the working environrneni for our 5tsff as well as cre4tin8 spce for other busines￿ to ¢ollatM)rate with BRE aDd ￿er1e￿ants on the Garskn site. The site has undergone a desktop review of the site valuatitsn at the year end. This resulted in a loss OD investment properties of £2 Im as the cost or the improvements was rv)t refiected in a similar increase in value of the two rge otTJce blo¢ks which were improved. The prom held as fixttj &$5ets for BRE'S use has lrtcre￿d in value by£l.Im. We have also seen small falls in the deficit on the BRE and LPC Pension Scherne. A5 of 31 March 2023 the scheme actuaries valued the (kficit at £30.Om compaTEd to £31.6m in the previous year. This is a result of more stable markets and little change in the discount rnte. There was no fvll actu8rs81 valuation in thTs year. Overall, the positive net incorne of £2.6m. the gain on revaluatio￿ of the Sitc of £1. lrn and the actuarial loss of £0.3rn rn￿S that BRE Trust now has fund5 of £IO.Om as at 31 March 2023 increasing tl funds available from 31 March 2022 of E6.6rn. Building Performance Service5 {BPS) The product focused core of Building Perfonnan¢¢ Serv?ces (BPS) is a POTffolio of busine￿¢5 incorpov4ting BREEAM. NABERS UK. SABRE. Smartwasie. yellowjack￿ Susttinable Products and the BRE Academy. Al are the subject for fimhcrdevclopTnenl as part of the dig.ital transforn)ation that is taking place a¢r¢)s5 ¢jUr￿rt[0]lo of products and services. Revenue for the BPS for 2022r23 was £29.9m. BREEAM is well regarded as bth.ng bas¢don scienK and ngorous in its approach. The BREEAM revenue at th¢ year to 31 Mar¢h 2023 w&5 £17.2m {2022.. £15.9ml. 23r24 will be pkvotsl in maintaining market relevance by enhancing th¢ scientific ba5¢ for BREEAM with the development of Version 7 (V7). and by focussing on the customer expcrience- both direci ¢ustomets and assessors. The BRE Acad¢my 15 a well-known. well-respect￿ part tsf BiiE. li has a long-standing repuiation and has been a consistent contributor to O￿anISational ￿VenUe and profits. During 22123 a work5trvdm was up ¢0 review and asrertain th¢ size of the opportunity for The Academy ommercially. bui equally importantly. as a contributor to the BRE purpose. repulation and t￿lI10￿ing. The ademy achieved an income of £3.8m for 2022123 (2021122 £3.Im). The Academy will streo8then its positiort in the rnarket during 23r24 by providing more. high quality 8ThJ better ge￿ ¢ourses deliv¢r¢d both ID trson and virtually. Thi5 will by digiti73tion and a on customer journeys and improved ¢xpenen¢e. For ihe Housing and Energy tearns. now pan of our research and tnnovation division, core activity with BEIS (now DESNZ) and DLUHC has remained strong with the delivery of th¢ multi-y¢ar English Housing Sury¢y a￿1 Standtrd Assessment Procedur¢ (SAPI progranunes. The Housing and Health ¢onllnued to secur¢ work delivering modElling forlocal authorities indi¢aLiog resid￿tial dwellinÈs areas most ¢los¢ly liThked with ill health, work that will ¢ontinue throughout the Corning year. Autumn 2022 saw the publication by BRE of a follow up report on the 'Cost of Pix)r HO￿1￿8. which hi8hli8hted the o)s¢ to the NHS directly linked to pC￿r hO￿ing to be £1.4bn.

BRE TRUST STRATEGIC REPORT For the year el￿ed 31 March 2023 Assurnce Setvices The Assurat)ce division is made up of 4 business units with specialisms in Firc. Security, Built Environment and Audit. FiTe Detection & Electronic Testing (FDET) and ibe Passive trarn are the highest Tevenue earners. The main source of revetwe generation is through our extensive range of tesi laboratories and our LPCB ¢ertifLcation s¢hemes. Revenue for our AssurdD¢e division was £24.2m for 2022123 (£22.6m'. 20211221 Innov4don The role of the Innovatiot) th"vision Is to lead our rese4rch and innovation activitiG%. ensuring thai BRE provides impactful thought leaderthip in pursuit of our purwjse. The Te5earch and Énnovalion strategy is key to Ibe a¢hievemeAt of our objectives. The revenue for 2022r23 was £3.4m {2021122 £5.8m) as the CIH grant is now ¢ompleted. Income from the ITLnovation team will now be largely derived froTn Hotssing and Energy, and Srrategi¢ Advxsory teams. OurEtLergy artd Housing tv4ms work with govemments ini¢rnationally to deliver a ran8e of iechnical services for rtaiional ttet zero policy compliance methrmlologies This includes research for current and future reglllatory compliance for th¢ energy efficiency of buildings. Strategic Advisory (Consultancy) is a binding part of the BRE busine55, building rclationships and engaging (internally and externally} to provid¢ a range of 501ution5 largely built around the mitigation ofclimatr change. We will trdnsition inrtovation ift￿ business as usual by d¢livETing ¢ollaborativ¢, impac1￿[ projects that make a differen¢e- targeiing net zero by helping d¢¢artonise buili asscts hs the governmeni grdnt for CIH was ¢ompled in September 2022. Th¢ h¢ad offi¢¢ site at G￿tOn includes the Irfflovauon Zone atld isborne to leading re5￿Ch facilities which have been ¢$rabliSh￿ to iDfomi sustainable developmeni at a 8lobal level and siimuiate tnnovalion within the built envirotjmeni. The zone feanwes full-scale demonstraiion buildings that haye been developEd by illdvsty partners to achieve commercial 8oa15. These buildings display innovative design. materials and iechnolwes which combine to addre55 the developrneni challenges facin8 regions acrots the world. IntsrthatioMl A¢tivlties BRE ¢urrently provides seryices in W countries s¢lling mainly BREEAM aThd LPCB services as well as advisory products. The targei mark¢LS for BREEAM a￿ Commercial Re41 Estste. Construction. Public Sector. Manufactiwing and Finance. Those for LPCB are fire, security, and constructi1￿ product maTLufDJrer5. as well &$ Con5truciion and Infr&%tructure companics. ¢onslruction product in5taller5 and government contracts. BRE ha5 3 salli offices.. in San Frdncis¢o¢oYering North Amery in Shanghai wveing Chtn8, and in Dublin covering Ireland and Europe. Our channel fram¢work. inclwling our NatM)nal 5ch¢m¢ o￿alOrS. Assessor relaiionships and other partneT5hips are all being ¢entralised within the sales team to facJli&te both improved communications and relationship& and I￿reased ¢TOSS sellitl8 a¢ross our entire product range. R¢sponsible busines5 Responsibility is at the heart of owpurFK)se. and we seek w aw>ly a rwonsible busi1￿$$ ethos to every &8pect of our business. whether by setting ¢hallenging energy perfommnce goals for OUTselves, ¢ontribu(in8 our expertise to the devel¢)pment of publi¢ policy. playing our part in our local ¢ommunity. or enswirtg that equity. diversity and inclusion ar¢ embtdded in all OUT pra¢ti¢es. Over th¢ forthcoming thrc¢-yeat plan we will set annu218oals. ¢ulminating. w¢ hope, in achieving B CO￿ status. As part of this we will measure the impact WE're making, and impaci targets will be it)cluded in the strategic KPIS of our balanced SCOTe card and in ow reporting.

BRE TRUST STRATEGIC REPORT For the year ended 31 Mar¢h 2023 Employee engagement and dtvelopment Our people are integral to the success of the Group. and we are proud of the comtnitrnent and wide-ranging expertise ond skills of our colleagues acro55 the business. This year has se¢n ¢oniinued focus on attrdcting and retaining talent to enhance our existing core ¢ompeten¢ies whilst adding new skills required to deliver out plans. OUT resouTcing strategy has cornbined the re-deployment and upskilling of exisiirtg members of the I￿rn with the Tecnjitment of new rol¢s. This has enabled a more sUStaLnable approach to skills developmeni and progression. particularly in pmduci managemeni dala and digitsl Comp￿encIeS. Volatility in the e[nploY￿¢nt Tnarket creatrd the need for an agile response to our employee proposition, panicularly in remuneration and we have made piogiess in teducing the gap beNeeD our median base salaries and those in our benchmark set. Attrition ra¢e5. although higher than pre-pandemic Itvels, have stabilised and work ¢ontinues to enhance engagemenl skills development aThd career progression to EMW and retain. We have made good use of our Talent and Development expertisc a8ain this year. building on ihe success of our brhavioural framework. an extensive ertgagemeni exercise taken place to design the technical and operational framework5. The combined framewoTks make up our Profession BLtilder tool, enabling colleague5 to hive visibility of potential career paths. understand the 5evels of competence rquired access the development opportunities available to thctn. This cornplemeots our established iEarning and Development initiatives and will fi￿her inforni content for leadership development and technica] developmet)i pathways. W¢ ¢oniinu¢ to focus on creating an inclusive environment wheTe we can al￿¢( rethin and motivate the very best people. To support our approach to Equity, Diversity and Inclusion we have fo¢ussa on advocacy and this year, followLnE our inattgural EDI survey, established EDI networks. LGBTV. Womerj. Race and Neurodivttsity - each with Exec Sponsorship and fornied 10 represent the view5 of cornmunities a¢ross the organisation. We also undertook an exercise io ¢olle¢t EDI data to ¢nsure the accurdcy of our organisationa] profile as we increase analysis in ihis area. BRE Sust#inb51tty Plan Our Sustainability Strdtegy wa5 established in 2008 to demoostrate BRE'S ¢ommitrnent to sustasnability acros5 7 key areas, primarily environtnental and focusing on the BRE S¢ien¢¢ Park. It covers energy, water, waste, ttanspo¢ ecology, procurement and supply Chain and corThtnuni¢atitsns and engagemeTht. The plan sets a number of tsrg¢ts 10 deliver real and measurdble improvements in OUT business and reduce our major impacts on the enviroDm¢rti. Our Carbon Reduction Plan further outlines ow commitmenl to Contribute towards the global effort needed to limit warming to 1.5f by 2050, supwrtin8 the UK Gretn Buildins Council (UKGBC) Race to Zero campaign". Our main activities in¢lude- Sustainable buildin8 refurbi5hmcnts- adapting eXiS¢ing spa¢es for new ys¢5 and maximising the reuse ofour existing materials Upgrades ¢0 boilets artd insulation lieplacernent of old lightlvjlbs with LEDS Monitoring and d¢te¢ting water leaks and up8rading to waterlessthighly water etTi¢ien¢ devices Upgrades to rneiering systems and the addition of submeters for improved monitorin8 Increased segregation of waste and optimising the use of skips Composiing our green waste for on-si1¢ w and retaining dead￿￿)d in our woodlands Creatin8 wildflower mtadows. planting trtts. and iekeeping Colleague benefits such as folding bikes and our on-sile bus service Investl8ating our Scope 3 8reenhou5e gas eTnissions Irt 2022. we appointed a Head of Responsible Bwiness who Works with our Head of Eststes and Susthinabrliry champions a¢ross the business to identify and implement projects aThd engage ernployee5 on all 5U51ainable built environment aspects. This team reviews progre55 agains¢ SUStrLnabilKty targets and projects and meets on a quarterly basis, along with the Health, Safety and Environrnent Cornpliance Manager. BRE is also certified a5 complying with IS014(M)I, which includes requirements for reporting on energy. waste and water. 10

BRE TRUST STRATEGIC REPORT For the ycar ended 31 March 2023 In 2022. we also joinol Business in the Community (BITC). contributin8 to their mov¢ment'to create a fair and 5UStainable world in whith ￿ live and wo]..- unitin8 our efforts for greater social and enviio]unefttal impact in our communities.. Membership provides access io a responsible bwiness fr3m¢woTk tt)ol and th¢ opportunity 10 connect with. influence and leam from tsrganisations in all S￿[01$. Streamlined energy trboD repDrtlttg (SECR) This is the fourth year that BRE TnLsI been required io report Under The Companies {Diie£lors' Report) at)d Limited Liability Partn¢tships (Energy and Carbort Reportitxgl Regulations 2018 ("the 2018 Regulations") which require us lo disclose our atu)ual energy us¢ and 8reenhous¢ gas emissions. However. we have always carefvlly rnoniioTed our ¢ner8y use 3$ part of our IS014001 accredjtation and wherever possible redu¢¢d our use of energy and tried io minimise our greenhouse gas {GHG) ¢missioDs. We commissioned an ind¢p¢ndent report fromabuildingseThic¢s ¢onsulthncy to analyse iheet)er8y and emissions data from ourUK aciivities for the 12 TTh)nth period to 31 Marth 2023 and compare results with previou5 periods. Detsil$ of this data and the methodology used to calculate the emissions ore set out below. Emissions generated for the burning of natural 8as on site are con5id¢red Scopc I Idbrect combustion). while cmjssions generated off-site from the provision of grid electricity are considered Scope 2 (indirect energy from gtnerating electricity) and Scope 3 (transmission and distribution losses &ssociated with delivering electrtcity through the grid). Reporting of ernis5ions resulting from the use of grid electricity and natural were calculated usin8 the UK GoveTTllneftt GHG Conversion Faciors for Company Reporting last ￿￿lated June 2022. In addition to the ertergy used in buJldkn85 we also use energy for lrnmSPOrt fuel in hired Vehicles or private ¢mployee-own¢d vehicles included itt Scope 3. Fuel consutnption dats wa5 calculated from employee expen5e$ ¢laims for miles travelled and converted into carbon using the UK Governrnenl GHG Conversion Factor for k8C02elmile, based orb an'Exe¢utive' ¢ar type. 2022r23 2021122 2020121 Emissions Scope SO￿rCe Mwh Mwh tco) MWI) Scope I NatUTal Ga5 and t￿sInesS trdvel (company car5) 6.034 i.ioi 6.607 1,210 3,190 587 "Scope 2 Electricity 3.970 768 4,346 923 2.393 606 Scope 3 Business travel and elecrricity transmission and distribution 105se5 503 219 136 157 84 Toth] scope l and 2 lo.￿3 1.869 10.953 2.133 5.584 1.193 Total scope 1. 2 and 3 10.507 2.059 11,172 2,269 5,740 1,277 Flth)r area (m 27.036 31.214 29.907 EMIR (k8CORlm4 76_2 72_7 42.7 EIR scope l and 2 (kwwm 370.0 350.9 186.7 EIR scope 1. 2 and 3 (kwwm 388.6 357.9 191.9 EmlR- Emissions Intensiry Ratio 'EIR- EAergy Intensity Rauo

BRE TRUST STRATEGIC REPORT For the year ended 31 March 2023 Streamlined energy and carbon reporting {SECR) (¢othL) Intensity ratioscan be used to compare ovcrdll emissionsdata with an appropriate tmsiness metric, su¢h as revenue or floor area. to fvrther enable Comparison over time and create benchrnarks. L% most of oureneTEY is used in ihe buildin85 that we occupy. we have selecied art energy intensity ratio of kwhlm . BRE Science Park Co￿1$1S of nufflernus buildjngs with a total floor area of 30,363m2 Tenant¢d space5 were deducted from the overdll floor area givinE a total of 27.036m . Using the ￿¢8] energy Consumpiion of the buildin8s used by BRE, the EIR lor Scope5 1. 2 and 3 is 312.4kWhlTn (14.6°/ts lower 2022). Using the iotal Scopes 1, 2 and 3 emissions figures, the EMIR for 2023 is 62.3kgCOdm {14.3 /0 lower than 2022). We have seen flucnjattons in our EIRS over the previo￿ years due to the signtficant irnpact of the COVID-19 pandemic. Values thi$ year are now closer to 2019r20 levels. Although similar amounts of energy were consumed for electricity and gas la51 year. due to the difftrent carbon intensity ¢onversion factors for each energy llse, Scope 2 electricityaccounts forslighily tnore trnissionsthan gas_ Transmissions anddjstribution loss¢s in the grid (Scope 31 furth¢r increase emi&sions from electricity bui overall these ernissions are lowei than 2019llO by 16/0. Overth¢ past year we have continued to insts11 LED lighting in multiple buildingson BRE Science Park. rein51ated wami air Te¢irculation sysiem, replaced an inefficient 8as boiler in one of our building5. and insulated unlagged pipework in plantrooms to reduce electricity artd gas usage. We have installed addLlional submeters to improve ourability io monitor consumpiion and identify areas for reductton. We have reduced our floor area through Space and process optirrlisaiion aligned with ow new ways of working. Around 80Yo of employees are either on flexible hybrid COThtrdcts or fully remote working. Along with our main sustainability activities. we will Continue to Éathei data on our new ways of working such as the impact of remoie and flexi-hybrid contrdcts to better understsnd building ottupancy levels and implement the most effeciive energy conseryation stratrgies. The effeci of me4sures will be tracked by reviewing quarterly el¢ciTi¢ity and gas COJLsumption atld further eneT8y efficiency mt&sures will be ideniificd and implemented where appropnate. BRE is a150 a collabordtor on the UK Built Envirortmerti Carbon Database (BECD) projtti that aims to become the main source of carbon estirnating and benchmarking foT the UK ￿n$t￿¢boD sector and a practi¢81 instn]m¢nt to support the decarbonisation of the built enYironmenL Penslon Scheme The FRS102 pension scheme defjeit relates to the BRE and LPC Pension Scheme whith is the fomier defined benefit pension scheme operaied by Building Research Establi5hrnent Lirnit￿ (BRE Ltd) a subsidiary of the Group. The deficit decrcased dunng the year 10 £30.(hn (2022.. £31.6m) fvrther details of which are sct out in note 19 to the financial statements. Th15 de¢iease in the s¢h¢me defi¢it is in pan due (o the decrease in the present value of the benefit obligation5. along with the payments by the Group as part of the defi¢it reduction plan agreed wilh ihe pensiot) trustees which offset the decre￿ in the value of the assets of the scheme. The Directors of BRE Ltd consider that since the Company is able to rneet all of its short and mediutn ter￿ liabilities. and the nature of the pension schem¢ d¢fi¢it is IoDg tern), that thi5 di>e5 not impact on the TnLSt a5 a going concern. Reserves Ptsliey BRE Trust has a reserves ￿LICY which requires li io maintain reseTres al a level equiva]eni to Lolal committed ¢ontract value plus three months of operdting costs. This enables the BRE Tn]stce5 to manage financial risk apd short.temi irtcome volatiliry. Free reserves available for use exclude restricted funds and the fixed assets held as unrcstricted funds. Free reserves also exclude any lortg-iemi liabiliiies, and any deficht reported on the pension scheme. Should other fuTKling not be received. the Cash reseryes should be used to pay committed contncts incurred defit)ed by the notice period of the contract. Al 31 March 2023. committed ¢ontta¢t value was £45k and (Iwe¢ months op¢rdiing costs were f¢)reca5t at £9k which total £53k. BRE Trust has cash of £3.6m to meet these ¢ommitsnents and lh¢ ex¢¢ss ¢ash of £3.5m is reflected in nel reserves m¢aning that minimum reserves were being Tnainiained. An investmeni committee has been set up in February 2023 and approves the funding forresearch projects andprovide5 direction and governance for fu￿[¢ actLVlties of cornmissioncd work and ensuies its dLssemination is effective and wide reaching. 12

BRE TRUST STRATEGIC REPORT For the year ended 31 March 2023 Re5erve5 Policy {cont.) The BRE Trustees will review the gr0￿p reserves each year to asses5 the valuc of the reserves required lo be held in cash and ¢ash equjvalents that are rtot restricted to any particular PU￿Ose. During the year. the fnLStees reviewed the total reserves, the operating costs of ihe Tnjsi and the cornmitmen15 under long term corttract5 and hav¢ ceased to entrr inlo new IoDg-terni commitment5 pending a fvll ieview of the BRE Trt￿t Stru¢tUTe 3nd governance model. The InveSty￿¢t)¢ Committee was fornied in February 2023 and approves the fiLndiThg for research projects and provides dire¢tJon and governance for futrjre activitie5 of commi&sioned woik and eDsuTes its disseminaiion is effective and wjde Teaching. The key activitics are the teview of progiess wi¢h the programmes. reviewof the operai1fft￿pr0eeSS¢s. Teview of the relev3nt Tisks and wmmunic•iions and promotions of the programrne. Frtt reservcs 2023 2022 Total unreslricted funds 9.588 3.073 Add.. Pension liability 29,956 31,587 Net unr￿triCted fvnds 39.544 34.660 Les5.' Unrestricted fixed &ssets (18,536) (18,468} Total free reserves 21.008 16.192 Reprtsented by." Net ¢urtent and intangible assets 14.024 11.995 Investments 8.983 6.400 Provisions (1.999) {2.203) .Total free reserves 21.(M18 16,192 The net movement in unrestricted funds in the year w&s an increase in the unrestricied fund$ of £4.8m (2022.. increase in the negative unresiricied funds of £19. Im) due io nei in¢ome foT"the year of £2.5m {2022.. £5.9m), a gain on revaluation of fixed a￿ts of £1. lrn (2022.. £4.7m) and a transfer berween funds of £3.2m (2022.. £nil). The BRE reserves policy is to rnainlain reserves ai a level equivalent to total committed contra¢r value plu5 three months of operatin8 costs (2023.. £13.7m). therefore the reserves e within policy. FutllTe developments BRE is developing the BREEAM digiral 5ysm ¢0 improve efficiew and del¥very of BREEAM products and 1$ Working on the digLtisation of the business. Going Contern BRE Trustees have cartfvlly reviewed ihe financial rKJsition of the TnLSf and ILS subsidiaries takin8 accounl of the Significant improvement in ihe level ofre5erves, excludingpension impacL and the net income of £2.6m generated in the financial year as well as its Systems of financial artd risk management. Thi5 review ha5 Lncluded a detailed aly5is of the f(￿eca￿S for the current financial year. as well as the budgets for 2024 and 2025 and the cashflow projection5 for the Tru$t and BRE Group. 13

BRE TRUST STRATEGJC REPORT For the year ended 3 1 March 2023 Going Con¢¢rn (eont.) The manogem¢nt team have reviewed the ¢UTrtnt financial position and the b￿]nesS planning docutnent including budget for the next 3 year5. The various revenue streams have been analysed to identify the secured income from committed contracts. rnn rate of repeated busine￿. price increase, growth ambitions and new straiegies io miiigat¢ the loss of incolne from the completion of the CIH progrdm with UKRI. As part of this review ihe management team have undertaktn an assessment of th¢ differeni income streams in the business. identlfying the level of risk to income by analysing revenue se¢ured thmugh committed ¢ontra¢￿. revenue from ongoing long-standing cl%eni relationships and where the revenue is more un¢enaio. The cost base has also bttn analysed to Consider risk aroW￿ inflauon. high energy prices, staff Telaled cost incr¢as¢s. The business plan considered risks such as uncertainlies in the extemal markei it)cluding the energy Crises mad¢ worse by thepolitical climate of Ukraine and Russia into acr¢)unt. We are ¢los¢ly moniioring our cost and pro¢ur¢m¢nt is reviewingour 50urcing io makc li rnore cosl effecthve andefficient Detri]s of the BREGroup's pension fund obligations are set out earlier in this reJM)rt and a clear strategy exists to manage the defLCjt, which inrlud¢s a defi¢i¢ reduction plan designed to 8et iht schernt to self-sufficiency by 2037. The manaÈement team have undertaken a sensitivity analysis under three diffcrent scenarios to understhnd th¢ risk and opportunitiC5 in the budget and to u)sure the financial position bein8 projected 15 robust. BRE'5 Group cash px)sition of £1 l.lm at the end of March 23 is aft irnproyement on March 22 of £1 0.7m. Significant Investment is ttcurrin8 in digitalisation and lab improvement progfdm ￿￿erWaY whi¢h is budgeted to be funded by the operation. Both CIH advance payment and Escrow fijnds used for the re5trucluTing program have been repaid and hence there is no iN)rrowit)g iieAI ￿ our currnli cash and budget w>51tions. There continues to be day-itrday focus on working r2Pital management and cashflow foreca5t5 are reviewed on a regular basis. The overdraft fa¢iliry with Barclays Bank was renewed ai ihe be8innin8 of 2022 for a further 12 months This facility, alon8 Wlth the cash ￿$trY￿ held by ihe Group will ensure thai wfficient working capital exists to fund the on80ing a¢hvities of BRE Tn￿ and BRE Group ov¢r th¢ n¢xi 12 months and in the mediutn terni. The forecasts for the current financial year and the budgèts foi 2024 and 2025 hav¢ be¢n w out &s the b￿e case for ihe organisaiion. They include the irnpaci of known Capitsl expendityre as well as provision for some potential sks of ass¢ts Deedin8 replacement. The review has included sensilivity analysis ar(ptsnd the income streams to ensure that in the evenl of a downturn in the economy the Company would still be ablc io opera* Sustainably for Ihe foreseeable ￿￿re. Taking all this infomiation together. the BRE Trustees the￿fore havc a reasty•bl¢ ¢xpectstion that the organi5ation ha5 SU￿1¢1¢￿1 resources to continue in operallonal existence for the fOr￿Cable future and believe that there art no material un¢ertainiies thai call In￿ doubi the abiliry of BRE Trust and its Subsidiaries to continue as a 8OLll8 concern. The BRE Tmstees consider the main risks to be thost set out in the Risk Management section of this report Creditors payment policy The Group operates norrnal trnding iemis of payment within 45 days of th¢ da￿ of the invoice when making paymertl$ to tts creditors. Risk mattAg¢ment There has been a cortlinued conscious effort to tran5fonn risk management within the Group. There Is both a stratcgic risk Tegis¢er (o%vned by th¢ Board) and an operational risk register (owned by the Executive Team). Each employee has an opportunity io feed inio ihe laner which has undergone an enhancement this year to move to an improved asses5meTht methodology. Additionally. the strategic risk rwsier Iw individual risk reports. tabled (deep dives) at the Risk and Audit Committee meetings on a rotation31 basis. Further to the a￿Ve. risk apprfite is a key imprnvement focusfor the coming financial yearwhich will be fomially defined. It is accepted that such a system of risk Tnanagemeni can provide only reasonabl¢ and not absolute ds5ufdnce against maierial mi5Stat¢ment and 105s and that ihe System is designed to provide the Tnjstees wirh reasonable assur3n¢e ihai problems are identified on a timely basis and dealt wilh appropriately thd ihat sysi¢ms exist to mitigate those risks. 14

BRE TRUST STRATEGIC REPORT For ¢he year ended 31 March 2023 Risk Managernemt (cont.) The key strdtegrc risks are those identifrcd bclow with Teax￿5 for inclusion and key miti8alions. Key Risks Strategic Reason for inclusion Key Mitigation(s) Governance mechanisn 5trucDJre (new) Ch8rithble stani$ considerations and th¢ ne for strong 8OVtrn3nce. Refresh of the TTU5t and Board mechanism. Quarterly Risk and Audit Committee. Long temi finan¢Lal stabiliry A focus on financial mctrtcs is ¢nti¢al io el￿1nThg there is a profit (OT PUfPOSe. Robust annual business plannillg. budgeting, monthly forecastithg reviews and cash managcmcnl. M31Tltenan¢e of (>werdraft facility as mrtigation to risk in dowrtfttrn. Regular dialogue with pension trusie¢s to mairtthin optjons with Escrow ￿ndirtg or reduced pethsion paymthts. Cyber security This Is a continuous threat that is ever ¢hanging and needs Constant mitigation as this risk ¢￿tIn￿¢S to gtow with new m¢thod$ of attack and increased regulation. Nextgenernlion firewalls and Anti-virus. ArttL Malware systerns in place. Se¢urity infomation at event management system which collects IDforn)atiOII all key IT Infrastsu¢rure and is monitored 24n. Annual ptnttraiLon testing maintsnance of Cyber Essentials Plys certificaiion. Requirement for third party IT suppliers to have formal ccrtification sucll a5 ISO 2700101 CREST. Dual server centre5 in place. Ineffective tslent attractrotJ/reiention People and thl¢ni are the cornerstorte to sLtcc￿$. hence .the 5tr4kEic focus. A Wellbeing offering is in plac¢ to support colleagues wilh mental, physical and financial wellbein8. Biannual Suwinable Engagement Index. Regular meetings of the EDI group and ColleagLLe Forum. Flexible and remote working option5 available where circumstances allow. Timely and focussed rtcruitment. with bench-markin8 pay using exiernal resource5 as well as against industry norms. Improved engagement with employees including itnplemefttation of job families. regular perfortnance and developrnent reviews and management oversight. 15

BRE TRUST STRATEGIC REPORT For the year ended 31 March 2023 Risk Managemenl (conL) Key RJ"sks Strate￿¢ Reason for inclusion Key Mits"gation{sl Rt8ulatory complianee non critical part of BRE operations Is C(￿p]lanCe aaivity- Independent SHE (Safety, Healih and Environmental) and Quality and Compliance departments. A central group management system in place ftsr tM)li¢ie5, pmcesses and procedures. Independent Risk and Intern81 Audit Department. tX8islation rc8i5ter in place. R¢8ular en8a8ement with govemm¢nt deparirnents which helps ro identify FK)teniial change5 in policy ahead of implementation. Lack of rnarkei relevance Remaining rnarkel relevant is critical for sUC¢¢SS. Incrwed customer insi8hi via quarterly NPS (net promoter scorel. F0M￿1.1nnoVati0n to maTke¢'assessmeTht pro¢¢ss and Product Manag¢tnent M¢rh)dology. Customer through relationship mat)a8emenl and targeted business developmenl ¢apabiliry. Industry focused ¢ustomer group$. For exaTnple. net zero. BREEAM. A ¢orpot2te affairs team and innovation team working with external audience5 and ￿llabOratIng with the product rnanagcment function. Reputation brand strength and BRE'S 15 hugely dependeni on rewtatiox. panicularly with the advent of th¢ Grenfeu enquiry. Constant pre&% Tnonitoring by Director of .CO￿l￿ale Affairs and Third-Party Press Supw)rL Pre-prepared statements on likely scenarios and defjned iniernal communication pr¢xess. All %icntifLC OUWI follows a clear internal review prLKe5s before issue. Speaking up p)licy in place and r¢viewed annually. Grenfell inquiry proceedings are mtsnitored closely and BRE has PTovided a significant volume of inforniation to assist the Inquiry and corttinlles io do so. 16

BRE TRUST STRATEGIC REPORT For the year ended 31 March 2023 R5sk MaN•gement {cothi.) Key 5ks Strategi Re&son for inclusion Key Mitl8ation(s) Challenges to operational delivery Efficirnt effe¢iivc operations ar¢ iTnpeniiv¢ sustain during oiganisatiooal progTamm¢. A ccntsal group mjnagemcni System is in place for poli¢ies. processes and pr￿￿uTes. change External ￿esSments and Prompt follow uplre501ution of actions. Project delivery pipelirte tracking and works tnanagement. Product Managers assessing th¢ markets. cUs￿merc0￿P1X1n￿C0rnplime￿ts process. ts3nsfomH¢ion Digjtsl undmvay. progTamm¢ Re5p)nding to long ierni trends artd issues including climate change and ESG chan8e$ This i5 a key focus of BRE'S vision. Constructing Excellence provides conduit to industry needs and 8overnment ]x)licy. Monthly Strategy Tneeiings (in house) and ongoing relalionshiplrneetings with AIRTO (industry wide group). Produ¢t Innovation Team ¢stsbli$hEd wjth product roadmaps developed {or in development). 17

BRE TRUST STRATEGIC REPORT For the year ended 31 March 2023 Statement by the Trusttts in perftsrnbnet of their sttutory d¥iitt IA ¢cordn¢e with $172(1) of the Ct)mpAnies Act Zl)06. The BRE Tn￿leeS consider that both indivithially and together ihat they have acted in the way they consider. in good faith. would be most likely to promote the succes5 of BRE TnLSt for ihe benefir of its stakeholder5 as a whole (having regard to the mattets sei out in $172{ Ima-fj and Sl 72(2) of ihe A¢t) In the decisions taken during the year ended 31 Mar¢h 2023. The following paragraphs wrnm￿ how the Twstees fvlfLI the k¢y elemenrs of these duties. Buslness plnlng risk mthgement The BRE Trustees maintain its strategic plart for fijnding world class research in the buili enviTonment and consider long terrn planning a5 a critical part of how they ensure they understand the long-tenn consequences of their decistons. The Trustees recO￿ls¢ the nature of the safety critical ￿ry1cC5 provided by BRE Group to its cwtomers and the need to ¢ontinue to evolve wr approach to the risk management. Our people Our people are integrdl to the 5ucce5s of BRE Group and BRE Trust and we are proud of the p&55ion and widE- ranging expertise and skills of our colleagues acros5 the business. Thi5 year. we have invested in progfdmmes and initiatives fo miiigaie the people impact of the changes it) th¢ business and to continue to provide an ¢nvironment in which our coll¢a&ues Can ¢ontyibute, thrive and devel(4)_ F4JTth¢r details of which are sei oui in the Straie8iC Report under th¢ s¢ction on Employe¢ enga8emeTht and developn￿￿t. BuslMSS #•d stakeholder relationshlps The su¢¢ess of the organisaiion is dependent on our r¢lationthips with all of our stakeholders which include partners for BRE TnLSt. our customers for BRE Group as well as all our supplier5 and 5tsff. At BRE Trust we have focused heavily on building 3 network of like-minded organisations to improve res¢ar¢h, edu¢3tJon and practice in the built environtnent fvrther detsils of which are s¢1 out in the Stsategic Report under the se¢tJon on Achieyemettts artd perfonnanct. BRE Grnup has focused ort business development brin8lrtg Jn new commercial resources to work across the produd portfolio w gain insigh¢ into Tnatkets and ¢usiomets so that we we better able to serve the needs of all our stakeholders. Community #nd Environment The BRE Tn￿tte5 re¢o8nise that thc way we constsuct and manage homes. WOTkp13ces and other built assets Can have hugely ￿sitIVe impacts on our wellbeing. economic performance and the sustainability and resilience of our built environment. Critical to this and the BIiE Tnjsi's Core focus is ihe developm¢nt of improved products, pro¢e$5e5 and tools to enhance economic and en￿ronMental irnpacts. Disclosure of Informstion to Auditor Insofar as each of the BRE TnLsiee5 of the Group and Charity at the date of apprtsval of this report is aware there is no relevant audil infomiation of which the group and company's auditors is unaware. Each Trusiee has taken all the steps Ihat they oughi to have taken as a Tn]siee In order ￿ make themselves aware of any relevant audit inforrnaiion and to establish thai the group and c¢)mpany's audi1￿ is aware of thai infornu¢ion. Audltor Pursuant to seciion 487 of the Companies Act 2￿6. the auditors will be deemeAJ.io be reappointed and Crowe U.K. LLP wtll therebre continue in offrce. 18

BRE TRUST STATEMENT OFTRUSTEES. RESPONSIBILrrIES For the year ended 3 1 March 2023 The Trustees (who ar¢ also Dire¢tors of BRE Trust for the PU￿•$t5 of company law) are responsible for preparin8 the TnLStees' annual report, Stra*gi¢ report and the finon¢ial staiements in accoTdat)ce with applicable law and United Kingdom Genenlly Accepted A¢¢(HJnting Pra¢ii¢e (UniL¢d Kingdom AccounLin8 SiandaTd$). Company law requiies the Trt￿lee$ 10 prepare financial S￿￿Men[S for each financial year. Under cornpany law the Trnsiees musi noi approve the financial ststements ur)less they are satisfled that they gLVE a true and fair view of the state of affairs of the charitable Company and the Group and of ihe incoming resources and application of resources, inclLtdtng the tneome artd expendtftlfe. of the charttable Group for that period. In preparing these rinJncial sthtements. the Tnjstees are required th.. select suitable accouThiing ￿lIcIeS and then a￿lY them consistently. observe the methods and principles in the Chariiies SORP. • Tnake Judgemenrs and estima￿ that are re&sonable and prndent: statt whether applicable UK acC￿nting sta￿jardS have been followed, subject to any material departures dis¢losed and explained in the financial statements. and piepare the financial statements on (he going concern basis unless it is inappropriate 10 presume that the Charitable Company and Group will coniinue in business. The Tru51Ees are responsible for keeping adequate accounting re¢ords that are suffitiertt io show and explain the Charjtable Company's trdnsaclion5. disclose with reasonable accurdcy at any time the financial p051tion of the charitable Company and enable them to ensure thai the finan¢Kal statements comply wtth thecornpanies Act2006, lh¢ Charities and Trustee Invastment (Scotlandl Act 2￿5, the Charities Accounts {Scot]andl Regulations 2(Y)6 {as amended) and iheprovisions of the ChaTiry'sconstitution. They areaLso re5fA)nsible for 5afeguardingthe assets of the Charity and the G¥oup and henc¢ for tsking reasonablc steps for the wevention and d¢t¢ction of fraud and other Jrre8ulariti¢s. The Trnstees. Reporl under the Charities A¢t 2011 and Compani¢s Art 2006, was appmved by th¢ Council of Tru5tees' on 24 July2023 including appmiThg intheir¢apacityas¢omptnyth"rectorsthe strategic report¢ontained therein. and is signed as auihoTised on its behalf by= Philip Wilbraham "Chair Company Registration Number.. 03282856 Chariry Regisiraiion Number in England and Wale5.' 1092193 Charity Registration Number in Scotland: SC039320 19

BRE TRUST DEPENDENT AUDrroR'S REPORTTO THE MEMBERS AND TRUSTEES OF BRE TRUST Oplnion Wc have audited the financial ￿aterne￿ts of BRE Tn￿ foT the year cnd&l 31 March 2023 which comprise the Consolidated Statement of Firtancial Activities. the Consolidated Balance Sheet. Ihe Chariry Balance Sheet. the Consolidated Cash Flow Staicment and notes lo the financial statements. ithcluding sigrtjfitant accouniingpolicies. The financial rtportin8 frarnework ihat has been applied in their preparation 15 applicable law artd United Kjrtgdo Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable Èn the UK and Republic of Irtiand (United Kingdom Generally Accepted Aecounting Prdctice). In our opinion the financial statements= give a true and fair view of the styte of the 8roup's and the charitable company's affair5 a5 at 31 March 2023 and of the group's outgoing resources and application of resources for the year then ended. have been prop¢rly prepared in a¢¢oTdanc¢ with Unkted Kingdom G¢t)erally Accepted Accounting Practice. and have been prepared in 8￿rdance with the requirements of the Companies A¢1 2006, lh¢ Charities artd Trusiee Investment (Scoiland) Act 2￿5 aThJ Regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (aTnended). Basi5 for opinion We ￿nducted our3udJl in accordance with Intrmatiortal Standards on Auditing (UK) {ISAs {UK)l and applicable law. Our responsibilitie$ under those standards are fvrther descnbed in the AudLtor's resw>nsibilitie5 for the audit of the financial statements section of our rcport. We are independeni of the group Jn accordance with the ethical requiremcnts that are relevant to our audit of the financial sta(ements in the UK it)cluding the FRC'S EthLcal Standard. and we have fiLlfilled our Ixhcr ethital Te$ponsLbLlities in accordance with these requirements. We believc thai the audit evidence w¢ have obtained is suificient and approprioie to provid¢ a basis for our opinion. Conclusions r¢latlng to going concern It) audit>ng the financi31 statements, we have con¢luded that" the lThste¢s use of the 80in8 concern basis of a¢¢ounting in the preparation of the finan¢ial sthtemtslts is appropriate. B&sed on th¢ work we have perfornied, w¢ have not identified any material uncertainties relating to events or conditions that. individually or collecLiYely. may ¢asL significani doubl on the company's ability to continue as a going ¢on¢em for a period of at lttst twelve months from when the finan¢ial ststements are authorised for issue. "Our responsibilitie$ and the responsibiliti¢s of the director5 With rcspeci to goin8 concern are describ￿ in the relevanl sections of thjs report. Other Inform*tlo Thè TTUStees are responsibl¢ for ihe oiher inftsmttkion Contsined with the annual report. The other tnfoThnation ¢ompris¢s the infoTmation Included in the annual rtport, other than the financial staiements and our auditOT'S report thereon. Our opitjioth ￿ the financial ststements does not cover the other infomalion and, except io the extent otherwist expli¢iily ststed in our repoTL we do nol express any fomi of assyrance conclusion thereon. Our responsibility is to read the other inforniaiion and, in doing 50. ¢on5idcr whether the other information is materially incons15tent with the financial ststements or our knowledge obtained in the audit or ￿herwiSe appears to be matenally misstated. If wt identify $uch material incon51Stencies or appartnt material mis5tatcrnents, we are required to deterniine whether this Bives nse to a maierial misststernent Ln the fitlancial statements or a malerial misststement of the other information. If. bosed on ihe work we have I￿￿mIed, we conclude that there is a material mis5tatcment of this other lnforn1atio￿ wc are rffjuired to Y¢pon that fad. W¢ have nothing to report in this rewdrd. 20

BRE TRUST tNDEPENDENT AUDrroR'S REPORTTOTHE MEMBERS AND TRUSTEES OF BRE TRUST Oplnions on other mtters prescribed by the Companles Att 21K In our opinion based on the work undertaken in the course of our audit th¢ informaiion givert in the Tnts¢ees' report. whi¢h io¢ludes thc director5, report and the Str￿egIt report pr¢pared for the pwwses of company law. for the financial year for which the financial Statements are prepareAI is consistent with the financial stsiements" and Ihe strategic re￿rt and the dircctor5' Teport irtcluded wJthiD the TnLses' re￿rt have been prepared in a¢¢ordan¢e with applJ¢able leEal Tequiremen MatteTS on wbich we #re r¢quirtd to report by eieeption In light of the knowledge and widerstanding of the group atjd the chatirable company and their environment obtained in the Course of the audi4 we have not ideniifi¢d material misstaL¢ments in the straie8ic report included within th¢ Trustees. rew)rL We have nothing to Iq)ort in Testct of the following matters in relation ￿ which the Companies Act 2(￿)6 and the Charities Accounts (Scotland) Re8ulation$ 2006 require to report to you if. in our opinion.. adequat¢ and proper a¢counting tecords have noi been kepL or returns adequate for our audit havt not been Te¢eived from branches not visited by us. or Ihe financial staiemeots are not in weement with the accounting wrort that includes our opinion. Reasonable Lssuran¢e is a high level of assurance. but is not a guardnt¢e that an audit conducted in a¢¢ordaTL¢e with ISAS (UK) will always detect a M￿trial misstatemenr when il exists. Misstatements can arise from fraud or error and are considered marerial sf. Indi￿d￿allY or in the aggregate. they could reasonably be expected to int]uen¢e the econom]¢ decisions of users taken on the basis of these financial statcments. A further description of our respon5ibiliti¢5 for the audit of the financial statemcnts is located ort the Financial Reporting Council's website at: www.frc.org.uklauditorsresponsibilities. This d¢s¢tJption fomis part of our auditor's report. Extent to which the audit consldered epble of detettithg 5rregulari¢ie4 5Trtlwdlng frud Irregularities, including fraud. are instances of non40mplian¢e with laws and regulaiions. We idertiify and as5e5S the ri5k5 of material rnisstatement of the fin3n¢Jal #aternen¢S. whether due to fra￿d or error. and discussed these betwcen OUT audit team rncmbets. We then desigTh and perfonn audit procedures responsive to ih05e risk5, including obtaining audit eviden¢e that is sufficient and appropnaie LO provth a basis lor opittion. 21

BRE TRUST INDEPENDENT AUDITOR'S KEPORT TO THE MEMBERS AND TRusfEES OF BRETRUST We obtained an Wlderstartding of the legal and regulatory frameworks that the Group ¢)perate$ in, focusing on provisions of those laws and regulaiLons that had a direci effea on the deierniinathon of matenal amounts and disclosures in the financial 5tat¢rnents. The kcy laws and Tegulation5 we ¢onsidered tn this contexi included the Cornpanies Act 2006 3nd The Charities Trnstee Invemmeni (Scotland) Act 2005 togeih¢r with the Chariiies SORP {FRS102) 2019. We assessed the required compliance with these law5 aDd regulaiions as Part of our audit pro¢¢dures on the related financial staiernent items. In addi110￿ we consid¢r¢dpToViSiO￿ of otherlaw5 and regulations thai do not have a direct effect on the financial staiem¢nts bui complian¢¢ with which may be fijndamentsl ￿ the GTQUP'S ability to operate OT to avoid a Tnatetial penalty. We also considered th¢ opportuniiies and incentives ihat may exi51 Wlthin the Group for fraud. The only othei laws and regulations we considered ID this ¢ot)iext are. General Data Piote¢iion Regulaiion (GDPR) ISO Sbndards (ISO 17025, ISO 17065. ISO 9001. Ibality Management System, ISO 14001.. Environmentsl Managcmen¢ ISO 45￿1." O¢¢upational Health and Safery Hcalth and safety legislation Taxation legislation Ernploymtnt legislation Auditing 5tandard5 limit the required audit procedure5 to identify rton-complian¢e with these laws and regulations to enquiry of ihe Board and management and inspcction of rtgui310ry and Icg31 cortesw>ndence. if aThy. We identified the greatest risk of material impact on thc f￿anCIal sktcmcnts from inEgulantics. Including fraud. to be within the timin8 of recognition of grant income. stage paymcnts income ar)d the ov¢rride tsf controls by management. Our audii procedure5 to respotml to ihe5c risks in¢luded enquiries of management about their own identification and assessment of the risks of Èrregularilies. designing and implemen¢ing audit procedures over incom¢, detailed tesiing of journa15. reviewing accountin8 estimates for biases. reviewing regulatory correspondence with the Companies House. Charity ComTni&sion. OSCIL HMRC. the ICO, Health and Safety Exc¢￿tIve (HSE), UnLi¢d Kingdom Accreditation Smfice (UKAS). Lloyd's Register Quality Assurance {LRQA), the review of internal audit reports and reading rninutes of meetings of those charged with governance. Owing to the inhereni limitations of an audil there is an unavoidable risk that we may not have detected some material misstatements ill the financial $rai¢ments. even th¢Ju8h we havepropeAy planned and perfom)¢d our audit in accordance with auditing stsndards. For example, the fi￿er removed non-compliance with laws and regulations (irregularities) is from the events and transaciions reflected in the flnancial statem¢t)ts, the les5 likely the ittherently lirnited procethwes requiied by auditing stsndards would identify li. In addiiion. as with any audit, there rernaiThed a hi8her risk of non-dcicction of irregularities, ¥ these may involv¢ ¢ollusion, forgery, Inlentional omis5ion5. mi5TEpresentations. or the ovrrride of inlcrnal controts_ Wc ate Dot iesponsible foT prcven¢ing non- compliance al￿ cant)ot be exrttted to detcct non-compliance with laws and ￿gUlatIOnS. Use of 0￿r report This report is made solely to the charitsblc company's mcmbers. as a body. in a¢coTdance with Chapter 3 of part 16 of the Companies A¢t 2(X)6, and to the charithbltcompany'5 trustees. ￿ a body. in accordance with Regulation 10 of th¢ Charities Accounts (Scotland) RcEulaitons 2￿6. Our audit work ha5 been undcrtaken so that we might State ¢0 the charitable cornparty's members and tnjsiees those matters we att required to stale io them in an auditor's wort and for no other purw)se. To the fullesi exient pemjrtted by law, we do not atcept or assume re5pon5ibility 10 anyone other than ihe ¢haritsble Company, Ihe charitsble company's members as a body and the charitsble cornpany's trustees a5 a bLwty. ftjrour audii work. for thi5 reporL or for the opinions we have fomied. Tara West¢ott Senior Ststutory Auditor For and on behalf of Crowe U.K. LLP Statutory Audi¢or Cheltenham Date.. 25 July 2023 22

BRE TRUST CONSOLIDATED STATEMEKf OF FtNANCIAL ACTIVITIES (tNCORPORATtNG THE COMPANY tNCOME AND EXPENDITURE ACCOUKn For the year ended 31 March 2023 Not¢ Restri¢ied Unrestria Funds Funds 2023 2023 Total Funds 2023 Restricted Funds 2022 UntE51riclEd Funds 2022 Total Funds 2022 £'o Ineome from Charitable actLVities Other trading activities ItLteresi receivable 2.9)2 55.(#)9 1.716 57,911 1,716 8.067 49.665 1,897 57,732 1.897 153 153 io 10 Total 2.9)2 56.878 59.780 8.067 51,572 59,639 ExpeThditvre o Charitsble activitie5 (2.784) {52.132) (54,916) (5,876) 144,916) (50,7921 Los5 on investment property revaluation Net intome before tax 2.635 2.753 2.191 6.656 8,847 Taxation (123) (123) (717) {717) Net income 2.512 2,630 2,191 5,939 8,130 TraRsfer5 bettveen funds {3.201) 3.201 Other ree•gnised gin51{Io55es) Gain on rcvaluation of fixed assets Actuarial (loss)18ain on deflned benefit pension scheme 10 1.058 1.058 4,698 4,698 19 {256) (256) 8.495 8.495 Nei movement i funds (3.083) 6.515 3.432 2.191 19,132 2 L,323 Rect)Meili4fion of funds Total fUnd￿(defiCIt) brtsught forward 16 3.492 3.073 6.565 1.301 116,059) {14.758) Total fund$ ¢rried forward 409 9,588 9.997 3.492 3,073 6.565 The a¢¢ompanying Dotes on pages 26 to 48 fonn an iniegTal part of these finan¢ial statements. 23

BRE TRUST CONSOLIDATED AND COMPANY BALANCE SHEETS For the year ended 31 March 2023 Note Group 2023 £'ooo Group Charity 2022 2023 £'ocK) £'O(M) Charity 2022 £'o(x) Fixed a55elS Intangible assets Tangible a55eis Investsnents 1.682 18.545 8.983 930 21.560 6,400 io 5,0( 29.210 28.890 Current $sets Debtors Cash 13 19.547 11,087 19.441 10,710 3,553 825 Cr¢dAtor5: amounts lauing due within ODe year 14 (17,892) (18,6861 (638) {542) Net currtnt 55ets 12,742 11.465 2.919 284 Total a5set5 le55 furrent li4bilities 41.952 40.355 7,919 5,284 Provisions for liabilities 15 (1,999) (2,203) Net wets excludlng pen5ioms liabllltle5 39.953 38,152 7,919 5.2PA Defined benefit peffjslfj• xheme libillry 19 {29,956) (31,587) Net assets Including pellsion libilitles 9.997 6.565 7.919 5,284 Funds of the Group Unrestricted funds.. General fvnd Revaluation re%rve Pension reserve 16 16 16 32,276 19,705 7.268 14.955 {29,956) (31,587) 7,781 Res¢ri¢ted fijnds.. Other reserve Capital reserve Incorne fund 16 16 16 3.083 400 138 138 Total ￿ndS/(de￿C1l> 9.997 6.565 7.919 5.284 The total income for ihe year of the Charity dealt with in the financial statements wa5 £2.722k (2022.- £92k) and total expeDdittJre was £87k {2022= £59k). The accompanying noies on pages 26 to 48 fomi an integrnl part of these financial slaiement5. These financial statements were approved by the Trustees on 24 July 2023. Philip Wilbraham Chaimian CompaThy Registration Number. 03282856 Charity Registration Number in England and Wales.. 1092193 Chariry Registration Number in Scotland.. SC039320 24

BRE TRUST CONSOLIDATED CASH FLOW STATEMENr For the year ended 3 1 March 2023 Note 2023 £'ooo 2022 £'(K)O Net tash from opertiME attivities 17 4,326 5,755 CMh flows (rom Investing ¥eriviti¢s Inrest received 153 10 A¢quisiiion of thn8ible fixed assets Acquisition of inrangible fix￿ as 10 (2.363) (1.739) (3.617) (541) Net ¢a5h used by investlng atfiviths {3.949) (4,148) lTh¢rtase in e¥$h ttd t5h t4uivxltDts l the yvAr 18 377 1,607 Cash cash equbvaltnts at the beginning of the reportirtg period 10.710 9,103 Csh and e#$h equlwalen¢S lit the end of the ffeportlng period 11.087 10,710 The ac¢ompanying notes on pages 26 to 48 forni an integrdl part of these financial statements. 25

BRE TRUST NOTES TO THE FfNANCIAL STATEMENTS For the year ended 31 Marth 2023 l Aee•untlmg policie5 Charlty informat5on BRE Trust is a company limited by guarantee in England and Wales (regist¢r¢d number 03282836) and is registered as a charity in England and Wales (No. 1092193) and in Scotland (No. SC039320). The reg5Ster¢d office is Bucknalls Lane, Garston. Watford. Hertfordshire. WD25 9XX. Bas15 of preparatiOII The financial 51ateTnents have been prepared in attordance with A¢¢ouniing and Reporring by Chariiies.. StatemEnt of Recornmended Practice applicable to chariiie5 preparing their a¢counts in accordance wilh th¢ Fi¢wi¢ial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)- (Chariiies SORP (FRS 102)). the Finan¢i31 Reporting Stsndard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. BRE TTUSt meets the d¢finiiion of a public benefit entity under FRS 102. Assets and liabilitie5 are initially recognised at historical ¢ost or transaclion value unless otherwise staled in th¢ r¢levani accountsng ￿lIcY no(s). B￿1$ of ¢&nsolidatio The Group financial staternents consolidate the fiDaThcial staternents of the Charitable Company and ils subsidiary undertakings drawn up to 31 March each year. With the exception of BPE China the financial 51ateTnents of 5ubsidiarie5 are prepaTed for the same reportin8 year as the Trusi usin8 consistent accountlil8 policies. Even though BRE China has a 31 De¢¢mber rwonins date the cotwlidad a¢counts include its results for the 12 months to 31 March 2023. The &¢quisition method of accounting has been adopted. Under this method. the resulrs of subsidiary undertakings acquired or disposed of in the year are included ID the Consolidaied statement of financial actLVlties from the date of acquisilion or up to the da of disposal. Deiails of th¢ principal subsidiary und¢nakings are shown Èn note 12. Trdnsactiow or balances between BRE Trusi Group entities have been elimirtated on consolidation and ate not reported. Cr5tl¢al ae¢•wnting Judgements and estimAtioll uncertainty PTepaTation of the accounts requires the Trusitts and management to make significant jud8ements and estimates which could differ frorn actual (putcomes. The i¢eiDS In the financial staments where thtse.judgements ond estimates have been Tnade art". Revenue for provision of strvices is recogntsed when li is probable that an e¢onomi¢ benefit will flow ￿ the entity and the revenue and ¢osts can be reliably measu￿. For Continuing servi¢es. wevenue is r¢¢ognis¢d when the stage of completion can be reliably measured using a pErt¢￿tage completion method. The provision5 made in respect of bad or doubtful delrts which is based on historhcal experience of our debtors and specifjc knowledge tsf individual bad debts. The assumption5 used to valve the d¢firt￿ benefit ￿nSIon schetne obli8aiLon5 and other defined benefii plans, which are b&sed on besi eslimaies of the discouni rate lo apply aDd inf]aiion rdies, further details of whJ¢h ar¢ set out in Dole 19 ￿ these financial statements, Impairnient and valuation of non-current assets and the remairting usefill life of assets which is based on future plans for ttle use of the assets. Going concern BRE Trnsiees have carefi]Ily rewewed the financial position of the Tnjll and its subsidiaries tskin8 atcount of the significant Improvement in ihe level of r¢s¢rves, excluding pension impa¢i. and the net inc4)me of £2.6m geneTlted in th¢ financial yeai as w¢ll as its 5y51ems of financial and risk management. Thi5 review has included a detailed analysis of the forecasts for the Current flnancial year. as well as the budgets for 2024 and 2025 and the cashflow projection5 for the Trust and BRE Group. As part of this Teview the m￿agement team have undenaken an assessment of the diffeTent income streams itt the busirtess, Identifying the risks to income by looking at where the Tevenue is secure through ¢¢)t)llnitted contracts. where there are ongoing long-standing Client rtlationship5 and where the revenue is more uncertain. 26

BRE TRUST NOTES TO THE FtNANCLAL STATEMEWtS For th¢ year ended 31 March 2023 Ac¢outh¢5ng polieies (coL) Cosng ton¢ern (cont.) The Cost base has also been analysed to con5Lder risk around inflation, hi8h energy prices, 5tsff related cost increases. The busLrtess plan h3S ¢Ot)sidered risks such as uncertaLnties in the external Mark￿ including tht energy ¢rises made worse by the p)litical climat¢ of Uktaine and Russia into account. W¢ are closely monitoring our cost and procurement is reviewing OUT stsur¢ing to mak¢ IL more co$1 ¢ffecLive and ¢ffJ¢ient. Detsi]s of the BRE Group's p¢nsion fund obligations are set out earlier in this report and a ¢leaT strategy exists ￿ manage the defici¢ which includ¢5 a deficit reduction plan de5ign¢d io gel the scheme to self-suffi¢iency by 2037. There ¢ortlinue$ to be day-to-day focus on working capital management and cashflow forecasis are reviewed on a regular basis. The overdraft facLliry with Barclays Bank remains in place. This facility along with the cash held by the Group will ensure that wffitiertt working capital exists to fund the on80in8 activiiie5 of BRE Tn￿1 and the Group over the next 12 months and tn the medtum ttmi. Taking all this inforniation together the Tru￿e&S therefore have a reasonable expec￿10￿ that the organisation h&$ 5uffJcieni resources io continue in operdlional exi51entt for the foreseeable fv￿re and believe that there are no maierial uncertainties that call into doubl the ability of the Group io ¢ontinue as a going concem. Intome Incom¢ is re¢oEn15ed when the Group has eniilletnent to the fvnds, any performance conditions attached to the item of Jncome has been m¢t. and where it is probable that the income will b¢ receive4 athd the amount can be mtasured reliably. In¢om¢ from 8overnrnent and other grants is recognised when the Group ha5 enliilement to the fund5. any perfornianc¢ conditions auached 10 the grants have been Met aThd where it is probable that the income will be receive& and the arnoLmi can be measured reliably. Profit is Tecognised on long terTn contracis. if the final thJtcome can be assessed wth reasonable ¢ertairtty, by including in the profit and loss account turnover refl¢ctin8 the proportion of work ￿Mpleted to dale on thc projeci. Funds All funds of the Chority and the Group are unrèstricted fvn￿ with the exception of a number of individual grdnt ￿nded projects. which are restTtcie41 Unffstrieied filnds are available for the T￿slee9 ￿ apply to research acttvities that are in a¢¢ordan¢e with the objects of the Tn￿1. Restricted funds are used for reseuch governed by any conditions accepted ai the ¢ime the funds are received. Expenditure All expenditure is accounted for on an accruals b￿15. Overhcads and other Costs not dirc¢¢ly attributsble to particular functional activity categories are apwjrtioned over the rclevant categories on tht basis of management estimates of the amount attributable to that activity in the year ¢Mh a ba515 con51Stent with u5¢ of the re50ur¢es. The irr￿0verable clement Of VAT 15 included with the item of expense to which il relat¢s. Support Costs are allocat￿ to the different ¢ategories of activities. This is based on a judgement of the perCen￿ge the specific actiyity represents in relation to the total non-support expendityre. Support ¢OSts include processit)g and administration. human resources. infoThnation iechnology and facilities Costs. Gov¢mance costs are Lrtcluded within SUpp￿t costs and include strategic planntn8 Costs for the Tnjst's development, extemal audit artd all Costs of complyjng with CODSLILuLional and ststulory requirements, 5u¢h as costs of Board and Committee meetings and for preparing sthtuiory finan¢ial statements al￿ saiisfyin8 public ac¢tsuntability. Redundancy and settJemenL payments are reco8nised at the leaving datr of the member of staff and measur¢d ai the best estima1¢ of expendimre required to settle the obligaiion ai the reporting da. 27

BRE TRUST NOTES TO THE F￿ANCIAL STATEMENrs For the year ended 31 March 2023 l Afcounting policie5 (to¢.) Operating Leases Operatin8 leases and the payrncnts made under them are tharged to the S¢ament of financial activities on a straight-line basi5 over the Itase tern). The GTOUP also lets some tsf its pwperty on short teTm leases of five years or less which are classified &$ optratlllE le￿s. Lease income is reco8nised on a straight-line basis over the lease tenn. Research and development All research expcndittjre is chaT8ed to the stalement of financial a¢tivities in the period in which it l5 incurred. The development Costs incurred in tht creation of new software products and too15 arc capitsliscd under intangibles. Taxation BRE Trust is a re8isi¢r¢d charity and &$ such is entitled to certain tax exemptions on Income and profit frorn investments and surpluse5 on trading actlVLties carried out in the furtherance of the Charity's prirnary objectives if these profits and surpluses are applied solely for charitable ptsrposes. Deferred thx is re¢oEnised on all timin8 differ¢nce$ betwttn the Ca￿lA8 amounts of assets and liabiliiies in the financial sthtements and the ¢A)rresponding tax bases used in the computation of taxable proflt. The carrying amount of deferred tax assets is reviewed at the end of each reporting PEriLhJ and rethiced to the txtent that it is no longer probable that sufficient taxable profits will ￿ available to allow all or part of the asset to bE recovered. Deferred lax assets and liabilities are mt&sllred at the tax rdtes that are expected to apply in the period in which the liabiljty is settled or the 3ssel realised. based on tsx ratts (and tax laws) thai have been enacted or substantively enacted by the end of the reportLng period. Th¢ Tru$t'5 UK subsLdiary companies give all their taxable profits to the Charity, no￿￿][Y resulting in no liability to ¢orporation tax. Tax LS payable by overseas subsidiarie5 in acconlarKe whth local regulations. lTrt#ngibl¢ asset5 Pur¢hased 8￿dwIll is w)italised and arnorti5ed over its useful eco1￿MIC life. which is detcnnined on a ca5e-by-case basis, bui does not exc¢¢d 5 years. Expenditure incurred in the development or purchase of software ar￿ the purchase of liccnce aBreernents is capitali5ed and written off over the useful economic life of the and will not exceed 20 years. Tangible fixed assets and depreciatio Tangibl¢ f￿¢￿ &5sets aT¢ ￿pi￿lISed and Stated 81 cost orvaluation less depreciation. The fair value of land and buildings is det¢rn)in¢d from a markei-based appraisal undertaken by a professionally qualified valuer every three years and the laiest fvll valuation was undertaken in the year ended 31 March 2022. Assets are reviewed annually for any.impainnent in value, and as a result of this review a desknop valuation Wds undertaken this year. Depr￿101$0￿ is provided ai Ta￿ calculated to WTite off the cost o.f each asxt over its expected u%ful life on a straight- line basis, as shown below.. Leasehold Improvements Freehold buildings Plant and machinery FixnJr¢s and fittings Motor vehicles 8 years 5-20 years 3-10 years 7 years 3-10 years No depreciation is provided on freehold lan Investment property Propety that l5 held for long-tern rental or is being developed for ￿tUre rental 15 classifled as investment property. The fair value of land andbuildings ts deiennined by a market-bI￿1 appraisal undertaken by a professionally qualified valuer every three years and the next fvll valuation will be undertaken in 2025. Changes in fair value a￿ recognised in the Statement of Financial Aciivities. Assets are reviewed annually foT ally impairtnent value. and as a result of Tecent e¢onoTnic wndilions, including turbulence within property market. a de5kiop valuation was ¢omrnissionEd io assist with the assesstnent of y￿￿atiOn at the year end. 28

BRE TRUST NOTES TO fHE FtNANCIAL STATEMENTS For the year ¢nded 31 March 2023 l AecouDti•g policies {<OllL) Provislons Proiioion" are rc¢0grti￿ed when there i- a pic￿tIt Ic8ol ort0￿•trUCtI¥C obli8Qtion ￿ a rcAIt of o Pthpt cvent. it probable that a transfer of e¢onomie benefit will be required to settle the obligation and a reliable esbmate can be made of the arnount of the obligation. Withirt provisions is an amount for enhanced redundancy benefjts where some employees over 50 years of a8e can tTullJloie pllrt of thciF rdundoncy LYLiiilcmcni into an ar￿Uttl compcThAihon pa)Thcnt. A prol'1￿1On tntsde for thc futurc amounts payable over the estimated lift expecthncy of the ex-employee5. Cash Cash balances are part ofthe Group'5 w0￿1n8 capits] and art kept current Kcounl or short.terni deposjt. Bsslc finaneil Instruments Debiors DcbtOVo tsr¢ rccognis¢d inttitslly ot Ptite attribllthblc tra￿￿Ction costs. SubAqvcnt io iniliol rccosnition they are measured at amortised cost using the effective interest methcd, less any irnpaim)ent Itssses. If the aTrangernent constitutes a financial transaciion, for example if Pa￿ent Es deftrred beyond nonnal bu5ine5S temis. then Trt is measured . at the present value of payments discounted al a markei raie for a similar debt mslnlment. Crediior$ Creditofd arc recogni￿1 initiall). ot t1￿￿¢tiOn pricc Pl￿ ottributoble tran￿CtIOn Co￿tt. sub￿cqUent io initial rccogniiion they are measured at amtsrtised cost using the effective interest method. If the arnngement ¢ons¢irutes a flnancing transaction, for example if payment is defeTTed beyond noTmal busine55 temis. then it is measured at the present value of future payments discounted at a market rate ftir a similar debt instsijment. 14ryveslments in subsidiariffs, joithfy¢onlrolledenlili¢s onda550GiQi Investments in subsidwie5, joinily ¢ontroll¢d ¢niiiie5 and asso¢iate5 ar¢ Carried at cost less impairnient. Foreign currex¢ie$ Transactions irt foreigtt currencies are trtnslateAI at the exclwjgerdte wling at the.date ofthetrdnsactiort. Monetary assets and ILabilities in foreign currencie5 are ttanslated at the rate of exchange ruling at the balance sheet dale. Arty exchat)ge differences aredealt with throu8h rhe Statement of Financial Activilics. The statement of financial activitie% a5%ts and liabilitics ofoversca5 subsidiary UDdcrtakings are transl¥t¢d at the closing exchange rates. Gains ?nd 1055C5 arising from the tsan51ation of op¢oing balances and Ion8 lerni loans are tsken lo the Ststement of Financial Aciivities. P051- reiirement benefits Building Research Establishment Limited operated defined benefi¢ pension schemes providing beiiefjts based on final pensionable pay. The BRE Pensiorj Scheme was Closed to futu￿ a¢¢rual at 28 Febnjary 2007 and the LPC Scheme at 31 March 2(K)9. ".Th¢ two schemes were merged togeiher during 2016 forniing the BRE and LPC Pension Scheme. The assets of the scheme are held separately from those of Lhc Tnst and ¢h¢ tndinB subsidLaries. Pension scheme assets are measured using matket values. Pension ￿eme liabilities are measured using a projected unit rnethod and discounted ai the ¢urr¢nt rate of fffttm on a high-qyajity COTP)rai¢ I￿nd of ¢qytvaleni term and ¢WTenGy 10 the liability_ 29

BRE TRUST NOTES TO THE F￿ANCIAL STATEMENTS Foi th¢ year ended 3 1 March 2023 l Accounting policies (conL) P05¢- redrement beuefits The defined b¢nefit obligations as at 31 Mar¢h 2023 for this FRS102 valuation retxtsent an update of the previous year's FRS102 liabjliiies wilh allowance made for benefi￿ paid out to members for the year and price inflation over the year. All other expeTien¢e is assume4 to be in line with ihe assumption5 81 the start of the ye4r. An adjustment has thett been made to the value of the defined bertefit obligations for changes in the assumpiions a5 set out in note 19. The pension scheme surplus (io the extent tha¢ it is recoverable) or defi¢Lt is recogni5ed in ￿51. The moyement in the scheme surplusldeficit is spllt be￿te￿ operating ¢harges. finance items and. in the statement of total recognised 8ains and 10s5es. acwarial gains arhd losses. Building Research Establishment Limiled also Opera￿ a defJn&l Contributi￿ pension scheme. The assets of the 5chem¢ are held separately from those of the Trust and its Subsidiaries in an independently adminisiered fvnd. The pethsion costs charged against net income arE tht contributions paydble to the scheme in rcsped of the attounting period. 2 1ne•me 2023 2022 £'ooo Advisory services on buildin8 perfonnance, construction and fire safety 16.012 12,524 ProvLsion of third-paty ￿SUrance service5 38.650 37.652 Service5 delivcred to 8OVtniment 3.249 7,556 57,911 57,732 Included io services delivered to governmenlare amounts totalling£3.249k (2022.. £7,556k) which are government grants for undertaking research projtits for whi¢h ihere are nts unfijifilled conditions. 3 Otb¢r tr8ding imeome 2023 £'o( 2022 Oihei r¢nts] in¢ome. 1.2(K) 1.028 Oiher trading income 516 .420 Tax Credits 449 1,716 1.897

BRE TRUST NOTES TO THE FINANCIAL STATEMENTS For the y¢ar ended 3 1 Ma￿h 2023 4 Expendlture ChAr5t#ble a¢tlvlAes Comme￿Ial Activities Adwsory Servjcts Third Party Assurance ServicES to Government 2023 Toial 2022 Total £'o £'ooo £'o Activtties undertaken directly 858 &791 21217 1,784 32.650 33,521 Grant funding of 8¢tivities 87 87 (146) Support c¢)sts 582 6.014 14.375 1,208 22,179 17,417 A*a]ysis tsf 8￿pport tosts Commtrciaj Actlvllies Advisory Services rhird Party Assurdnce Services to Government 2023 Total 2022 Tolol £'oc £'oc £'o(KJ Legal and professional 163 1.686 4.030 339 6,218 5,716 IT 105 1.088 2599 218 4.010 2,136 HR 43 447 1,649 1,048 Marketing 58 595 1,423 120 2.196 1.670 Facilities 219 4.026 2,966 Other 107 1,106 2.645 222 4.080 3.881 582 Included within SupFA)rt costs are the following governance costs 2023 £'o(N) 2022 £'ooo Audilor s remunerolion.. Audit of Group and subsidiary finan¢ial staiements Amounts receivable by auditor and 45wriates irt resp¢¢t of: Se)vi¢es relating lo taxation Additional fees relating to prior year audil Other servic 82 68 13 13 16 Exp¢ndilure on research and development recognis¢d as an expense ￿ts11ed £1.698k (2022.. £3,456k). 31

BRE TRUST NOTES TO THE FINANCIAL STATEMENTS For the yeat ended 31 March 2023 S Staff <ost$ and numbers 2023 £'oc 2022 £'o Group staff ¢osts during tht period amOUn￿d to.. Wa8e5 and Salaries Social $ecuriry costs Other pension costs Operating ¢i)sts of th¢ d¢fined benefii pension scherne 25,151 2.570 3,847 668 22.988 2.374 3,645 654 32.236 29,661 Included in other pension costs are contributions made by Building Research Establishment Ltd of £2.778k (2022.. £2,593k) to the c105ed BRE and LPC defined benefit Pension Scheme. During the year redundancy atKI terniination payments ttstalling £288k (2022: £301k) were made in agreement with the employees, who were provided wth independent le831 advice. to Compensate them for loss of employmeni arising from their employm¢ni with the Group ceasirtg. The executive ieam {who are considered key management pewsonnel) conststing of 4 individuals were paid a total of £792k (2022.. 3 individuals were paid £585k). The average nwDber of employees (including directors) thiring the year was as follows: 2023 2022 Research sttff ..Support staff 480 91 482 571 548 The number of regular ernployees whose pay and taxable benefits ex¢vded £60.(MJO frll within th¢ following band$'. 2023 2022 Salary baThd £60.000- £69.999 £70,000- £79.999 . £80.000- £89.999 £90.000- £99,999 £IOO.(KJO- £109.999 £110.1￿0-£1I9,999 £120,IX)0- £129.999 £130.1))0- £139.999 £I40.(￿O- £149,999 £150,1M)0- £159,999 £170.CM)0- £179.999 £200,000- £209,999 £220,(M)0- £229.999 £270.000- £279.999 28 22 24 18 32

BRE TRUST NOTES TO THE FINANCIAL STATEMENTS For Ihe year ended 31 MaTch 2023 5 Staff costs ttumbers (¢•ut.} The lotal employer contiibutions in the year forprovi5ion of money pur¢tr￿e pension benefiis for higher pthid employees were £271k (2022." £208k). Th¢ numbeT of higher paid ¢mployee5 (i.e. 8reatei than £60k) to whom pension beneflts are accrnLn8 under money purchase schemes was 64 (2022.. 51). 6Trn5tee$' remunera￿￿￿ *thd expethses No Trustee eamed any remw)eration irt either 2023 or 2022. Out of pocket expense5 incurred by 2 (2022: 1) Trustees in the fi]rthcTan¢¢ of their duties are reimbursed ai ¢ost and iotalled £42612022.. £142). The whole of this amount related to travel and out of pocket expenses. 7 Other flnAn¢e costs 2023 £'o 2022 £'ooo Expected retsrn on pension s¢hemc assets IntCTest on pensiort scheme liabililies Past service cost {Incl. curtailments) 2.$94 (3.439) {46) (891) 1,906 (2.756) (58) (908) 8 Taxaiion BRE Tn￿1 15 considered to pas5 the tests set out in PaTr8raph I Schethile 6 Finance Act 2010 and therefore it meets the defirtition of a charitsblecompany for UK Corporation tax Purposes. Accordingly. the ChaTity 15 Filteniially exempt frorn taxation in respect of income or capital gains rrceived within cate8¢)ries ¢overed by Chapter 3 Part I I Cotp)ration Tax Act 20IOor Section 256 ofthc Taxation of ChargeableGains Act 1992. to the extcnt that such income or 8ain$ are applied exclusiv¢ly to charitsble'purposcs. The tsx charge for the period is lowff than th¢.stsndard Tate of Corporation tax in the tJK of 19Yo."The differences are explained below. 2023.. £'(M)o 2022 £,0￿ . Currenl tax UK corpordtion tax on profit forthe year AdJustsnet)t in respect of previo￿ year 86 663 37 123 717 33

BRE TRUST NOTES TO THE FtNANCIAL STATEMENTS For ihe year ended 3 1 March 2023 8 Taxation (COAL) 2023 2022 £'ooo Tor reco￿IliatIOn Profit on ordiTWy activities before lax 2.753 8,847 Tax using the UK corwjration t&x rdtc of 19Y. (2022.. IYA) 523 1.681 Expense$ not deductible for tsx purposes 402 125 R&D expenditure credits Consolidation adjustments Adju5tttLeIhl in rwct of prior period Defrrred tax no¢ re¢ognis¢d (851 (309} 54 71 37 (910) (749) Total tax charge 123 717 The Finance Act 2021 received Royal Assent on 10 June 2021 2nd the Corporation tax rate will increase from 19/0 10 25°/D from l April 2023 for COTnpanies with taxable profits in excess of £250,O¢K). For those busine&%es tha¢ have taxable profits be￿een £50,000 and £250.000 a Tnarginal ra relief scheme will be introduvd to brid8e the gap between the 19 /0 rate and 25°!0 raie providing a gradual increast in raie throughoui this band. 9 Int#nglble fixed s55¢ts Group. . Software Assets under constrnction Other intangibles £'ooo Total £'ooo Cost Ai l April 2022 5.958 490 497 6,945 Additions 68 1.671 ,739 Dis￿SaI (497) (497) At 3 1 March 2023 497 8.187 Athorti$ation Ai l April 2022 5.518 497 6.015 Charge for the year 490 490 At 31 March 2025 497 Net book value At 31 March 2023 18 682 At 31 March 2022 440 490 930 The Group had capital ¢ommittnents foT software of£551k (2022: £nil). 34

BRE TRUST NOTES TO THE FINANCIAL STATEMENTS For tht year ended 3 1 March 2023 10 Tangible fix¢d ssets Croup Freehold Assets under Plant and Land a￿d ¢OllStru¢¢ion M¢hinery Buildings £'oc FixDJres and Fittings £'o Motor Vehi¢les Tothl £'o £'o Cost At I April 2022 25.614 2.539 .372 67 40.732 AdditlODS 815 1.416 132 2,363 Disposals {312) {312) Reclassifiution 2.539 (2.539) Reclassification to investmeni properties (4,694) {4,694} lievaluaiion 1,058 1,058 Al 31 March 2023 12.556 1.192 67 39.147 £.0￿) £'OtX) Depretiation At l April 2022 8,823 9,352 964 33 19,172 Charge for year 632 994 1,742 On Disposals (312) (312) At 31 Marth 2023 761 Net Book Value At 31 March 2023 431 27 At 31 March 2022. 2.539 1.788 408 34 Freehold land is not depre¢iad. A5 at 31 March 2023. freehold la¥￿ and buildings is held J¢ the revalued amourtt of £15.9 millioth. The compaT)ble ¢o$i and net book value at thai date demiined under the histOTical cost a¢¢ounting wles would have beert £9.9m and £7.7m respectively. A full voluation was perfonned on 23 March 2022 by Chnstian Glazier IMRICSI of BNP Panbas Real Estate. The valuation wa5 Ptepared in a¢£ordanre Professional Stsndard 2 of the IUCS Valuation- Global Stwjdards 2021 rff¢¢iive 31 January 2022. the In¢¢mational Valuation Standards and the UK National Supplement 2018, effective 14 January 2019_ Th¢ Valu¢ Is the estimaied amount for which an asset or liability should exchang¢ on the valuaiion date between a willing buyer and a willing seller ID an ami's-len8th tyansaction after proper maTk¢ting and where the parties ￿ ¢a¢h acted knowlcdgeably, pnldently and without compulsion. Thedireciors revalua the frttbold landandbuil4Jin85 at 31 March 2023 following a fihnherdesknop valuaiion undertaken by BNP Paribas Real Esthies. All tangible fixrd assets are used in the ￿MmercIal trading organisations. The land and buildings let to third parties has been iransferred io invesknent properties. No tangible fixed assets are owned by the Twst_ 35

BRE TRUST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023 11 Fixed as¥t Investments Charity Inrer¢st in subsidiary undertakit)gs £'ooo Invcstment Propertie5 £'o(K) At l April 2022 5.OCK) Reclassific￿10￿ from freehold land aDd buildings Rrvalualion 4,694 At 31 March 2023 8.983 S.0(K) As at 31 March 2023, group inveslrnentpr(yertics were held * lh¢ wevalued amount of £9.1)nL The dir￿tOrS revalued the Investmeni properties at 31 March 2023 following a fibrther desktop valuauon undenaken by BNP Paribas Real E$tales as detailed in Dote lo_ 36

BRE TRUST NOTES TO THE FINANCIAL STATEMEKts For the year ended 31 MaT¢h 2023 11 Fixed a55et investments (conL) The tr8ding results of the operatlng subsidl*ries of the Group are: BuJldin8 BRE Constswiing Research Global Excellence Estsbli5hment Limited Limited Limited 2023 Ceequal Limi¢¢d BRE China BRE Irel8nd 2023 £'o( 2023 2023 £'o(M) 2023 £'ODO 2023 £'ooo Summary profit and 1055 account Turnov¢r Operating costs Other operating income L05s on revaluation of investment property 20.272 (35.852) 22,170 40.615 (39.079) 246 (359) 417 (533) 470 (403) (20) OperatJrt8 profitl(10s8) Interesi reeeivable Oiher finance costs ActuarLal 8ainll1055) on deFLned beneflt pension Revaluation of land 4.479 122 {89l) (256) 1.536 48 (116) 67 1,058 Net result 4.512 .536 (113) 48 (116) 67 Taxation (123) Retained in the subsidiary 4.389 1.536 {113) 48 67 A55ets and liabilitie5 of the subsidiary Fixed assets Curreni as5eis cr￿ltorS falliTh8 due wiihin one year 28.913 18.083 (26.941) 1.279 27,745 . {9,603) 132 (115) 1,045 (81) 622 (1,4411 349 (422) Net a$$rt￿(llabjI1ite5) Provision for liabilities Pension scheme 20.055 {l.999) (29.956) 19.421 17 (818) (73) Deferred upital 8rant (216) Total fi&nds (12.116) 19.421 17 {818) {73) 37

BRE TRUST NOTES TO THE FtNANCIAL STATEMENTS For the year ¢Aded 3 1 March 2023 12 Subsidiary and a550tiate undertkiN The llndertakings in which the Group's interest at 31 March 2023 was more than 20% were as follows." Int¢rest in Activity ordinary share Capital Trading CompAmies: BRE Group Limii¢d (027040811 10(Ph ManagemeTht operaiioD5 lo￿. Advisory services and infornation on buildin8 I(MY/• perforn)an¢e. ¢onstru¢tion and fire safety T¢siing and ¢ertifJ¢atiot) of materials and products, and ¢ertificatLon of personnel, Buildings, pro¢¢ss, systems and Supply ¢h3iDs IOQY. Sustajrtability and training of subsidiary company Building Research Esiablishment Limiied (03319324)° BRE Global Limited (08961297). Buildin8 Research Estsblishment Sh¢nzhen Limited {91440300358776938Y)' Ceequal Limited (04568928)" IIJY/. Methodologies for Sustrinable infrastnJcttLre projects WA Cwrdirtation of member led perforniaTh¢¢ improvement network IIJY/. Tc5tin8 and certification of Tnaterials and products, aT￿ Certif￿at￿on of personnel, Bujldjngs, process. sysi¢ms and supply ¢hairts Constructing (04641522)" BRE Global Assurance (Ireland) Limited (6021231° Excellence Lirnit Non-Trading Compnies: BRE Certification (03548352). BRE International Lirnited (01915620). BRE Canada In¢ (2279888). EFSG Limited (02971676). The Loss Prevention Cettifiuiion Board" Limited (01907862). Buildin8 Performance Group Limited (01573939)" ' BRE America Holdings In¢ {5984258}' iO(Ph NIA 10(p/ l(W• Holding company * Held through Building Research Establishment Lirnitol °Held through BRE Group Lirnited Held through BEiE Global Limited Dormant ¢ompat)y Company lirnited by guarantre All of the subsidiaries and as50ciate5 are registered in England and Wales with the txception of BRE America Holdings Inr. whL¢h is registered in the Uniied Skies, BRE Canada In¢ which is regisiued in Canada, Building Research Establishynent Shenzhen Limitcd whJ¢h is rwst¢Trd in Chini BKE Global Assurance (Irelandl Limiied which is registered in Ireland. 38

BRE TRUST NOTES TO THE FfNANCIAL STATEMENrs For the year ended 3 1 March 2023 13 Debtors 2023 £'oc4) Group 10.760 1.477 2023 2022 £'o Group 2022 Charity Charity Trade debtors Amounts recovernble on contrncts O¢her debiors VAT and other iaxes recoverabl¢ Prepaymenis 9.308 3.254 5.416 755 708 963 1.703 19547 19.441 14 Creditors: *mounts f4lllng due withim ye•r 2023 2023 £'o Charity 2022 2022 £'o Charity Group Group Deferred in¢ome Trade ¢reditors Amounts due to group undertakings Social security and other taxes Cory)oration tsx Other creditors Aecrua15 9251 2.530 7.812 4,760 12 489 590 1,816 1.611 573 766 3.164 857 3.438 48 41 17,892 638 18,686 542 Deferred income moveubtnt: Group £'O(p) Charity £'ooo Balance at l April 2022 ATTLOUnt r¢l¢as¢d in the.year Amount deferred in the year 7.812 (8.2291 9,668 Balan¢¢ at 31 March 2023 9,251 Deferred incornc ariseswhere s¢rviceshave been invoiced but theperfomwice ¢ondition5 inrelation to part of the amounl invoiced have not yet been met_ Jncluded irt the amount for deferred it)come is an advantt on grant funding and advan¢ements provided by I[kn￿Vate UK amounting to £nil (2022: £1,006k) wh5ch is repayable Upon demand. 39

BRE TRUST NOTES TO THE FINANCIAL STATEMENTS For thc ycar ended 3 1 March 2023 15 Provision for liabilities Fun￿¢ amounts payable relating to.. Fomier Directors. Futtwe liabilities PO￿ retirement future liabilities Total Restryctiwing Group.. At l April 2022 Utilised in the year Char8t to the Staternent of Financial Activiiies 203 2.203 (124) (176) {124) (80) At 31 Mar¢h 2023 203 96 I,7(N) The post retirem￿1 fvture liabLlitie$ is a provtsion made ￿ reflect a liability to make fvture pa)rynents to some ex- ernployees who were made redllndant wh¢n over the age of 50 and have translated partof their entltlement into an annual compensation paymeni payable for life. Forner directOT5' futLW¢ liabilities is a provision made in rcspect of.￿0 prevM)us dlrtttO￿ of the Group who we providd WLth po$t+retiretneni IKnefits to maith benefits received by other executives in the company who were OD ari enhanced executive utegory pensJoD awrangement. The timin8olthe c&sh outlays in resrrtt of these provisioAs is uncertain but Should not txcecd £153k in the next fLnaocLal year.

BRE TRUST NOTES TO THE FtNANCIAL STATEMENrs For the year end¢d 3 1 March 2023 16 Reserves Gelleial Pension Fund ReseTh¢ un￿￿Cted Unre5triclt41 Revalualion Toial Other Capital Ineorne rolal Reserve UDre5tricted Reserves Reserves Reserve Reslriclcd Unresrricted Re5ervcs ResEricled Restricted Restri¢ied Reserve5 Group £'o £'o £'oc £'o £'ooo £'ooo 19.705 (31.5871 14.955 3.073 3,083 400 3.492 2022 Net income for the year 625 1,887 2.512 118 Transfer be¢ween funds 3.201 3,201 (3.201) (3.201) Gain on revaluation of tangible rixed assets 1,058 1,058 A¢nJarial loss recognised in defined benefit pension (250 (256) TTan5feT investment propertie5 revalualion 8.745 (8.745) At 31 March 2023 32.276 (29.956) 7.268 9.588 4(K) 409 The tonsfer betweert fith¢ls in the yearended 31 Marth 2023 {£3.2m} relates to assets under the LEP and CIH grants. 41

BRE TRUST NOTES TO THE FINANCIAL STATEMENTS FOT the ycaT ended 31 March 2023 16 Reserves (eoni.) General Pensjon lieVa￿atIon Total Capital Income Total Fund Reserve Resthve Unrestticied Reserve Reserves Reserve R¢5tncted UnrtSlriCted Unre5tncted Unrestricted ReseTves Resrricied Restricttyj Resmcied Reserve5 oth Group £'o(K £'o(K) £'(N)o £'ooo At l April 2021 15.451 (41,767) 10257 (16,059) 1.070 222 1,301 Net income for the year 4,254 1.685 5,939 2,013 178 2,191 Gairt ort revaluation of tangible fixed assets 4.698 4.698 Actuarial gain recognised. in defin¢d benefit pension 8.495 8.495 At 31 March 2022 19.705 (31.587) 14,955 3,073 3,083 400 3,492 The general ￿nd is the amountof unresrricted fimds afterallowing fortotal fixed assEts, any committnents noi re¢ognised in the accounts and all designated fiJnLts_ The r¢valuaiion reserve is the value of unrestrhcted funds iepresented by the freehold land and buildings owned and used by th¢ Group and its subsidiaries on an ongoing ba515. Charity ut￿eStrIC￿d Funds £'oc Restricted Funds £'o TDlal F￿ftds'. £.0￿) At l April 2022 5.146 138 5,284 Net fitnds fw the year 2.635 2,635 At 31 March 2023 7,781 138 7.919 Ch*rlty UnTestri¢ted Funds £'O(K) Rcstricted Funds £'O(K) Toial Funds £'o(K) At l April 2021 4.995 138 5,133 Net fund5 for the year 151 At 3 1 March 2022 5.146 138 5,284 42

BRE TRUST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023 16 Reserve5 (cont.) The nel bjnds for the year of the Charity dcalt with in thc financial statements wa5 £2.635k (2022.. £15 Ik deficii). Restri¢ted funds are used to promo* SUSLainable approaches to relief. Tecovery and rec¢)nstNction aftei a thatural disaster. Other rrstrjeted reserves ielate lo the PIA {pairnt in advance) on grdni projects. Capitsl restricted reserve5 relate to fixed assets purchased restricied by gtants under CIH and LEP. Income re5triCttd re5¢rves relate to the accumulated Statement of Financial Activities funds held by the individual Tnjst entity Analysis of Group nei assets between fvnds Generdl Fund Pension R¢valuaiion Reserv¢ Reserv¢ Other Capital Income Restr¢¢tcd Re5tri¢t¢d Resth¢ted eserye Reserve Reserves Total 2023 2023 2023 2023 2023 2023 £'ooo 2023 £'(K)o Intangible Tangjble Inyesthien 1.682 1.682 11.268 8,983 12J42 (1.999) 7,268 18.545 8.983 N¢t current assets 400 12.742 Provisions (1,999) (29.956) Pensiort scheme liability (29,956) 32276 (29,956) 7268 400 9,997 2022 Comparative Analysis of Group ttei assets between funds General Fund Pension R¢valuation Other Reserve Reserve Restricted Reserve Capital Income Restn¢t¢d Restricted. Re5ervt Reserves Total 2022 2022 2022 2022 2022 £'oc 2022 'O(M) 2022 £'c￿0 It)tangible Tangible Investments 930 930 3.513 14.955 3.083 21.560 6,4(4) 11,065 (2203) 6.400 Nei current assets 400 11.465 Provisions {2,203) (31,587) Pension xheme liability (31.587) 19.705 (31,587) 14.955 3.083 400 6,565 43

BRE TRVST NOTES TO THE FtNANCIAL STATEMENTS For the year ended 31 March 2023 17 Cash flows from operating aclivities 2023 £'ooo 2022 £'o Net income before tax Adjus¢men15for.' Interest receivable Depreciation. amortisaiion and impairttlent Loss on revaluation of investment propertles Loss on disposal of fixed assets Taxation Pensjoth and other finance costs Pen$iot) deficit funding contributions 2,753 8.847 (153) 2,232 (io) 497 (123) {7171 891 908 (2.778) (2.5931 Movement lu working cpitsl: (Increase) in debiors (Decrease) l increase in Creditors (exc tsxaiion) (D￿reaSe) l itxcrease in provisions Taxation paid (106) {87) (204) {707) (5.9451 2.497 324 ￿$h from operdttng activities 4.326 5,755 18 An&lysl$ of ehartge IA net fund5 At l April 2022 . C&sh flow At 31 March 2023 £'ooo Cash at bank JO.710 377 11.087 Cash and cash equivalents 10.710 377 11.087 19 Pe$ioD5 The Group establish￿ a dtfincd contribution stakeholder scheme for eniployces who Commenced employment after l January 2002. The Gmup eonrributes up to 5•/• of salary so long as the Members do the Same. However. Members can contribute a higher amount if they wish to do so. Coniribuilons to the stakeholder scheme amounting to £2(Mlk 12022.. £180k) were payable at 3 1 March 2023 and att im¢lvd¢d in creditors. The &ss¢ts of.the stakeholder scheme are invested with Scottrsh Widows. The Group fonnerly operdted two fimded defined benefit pension schemes. one for the employees who tr8nsferred from LPC (the LPC Scheme) and one for other employee5 of the Trust and its subsidiaries whts cotnmenced employment before 31 December 2001 (the BRE Stheme). The BRE Pension Scheme w&s closed to ￿tUre accnwl at 28 February 2007 and ihe LPC scheme ai 31 Mar¢h 2009_ Th¢ ￿ schemes were merged iogether during the year ended 31 March 2016 forming the BRE and LPC Pension Schem¢. Members of the BtiE and LPC Pension Scheme have 2150 been offered membership of the GnTrups defined contrkbution stakeholder scheme on the same temis as other members.

BRE TRUST NOTES TO THE FINANCIAL STATEMENTS For the year ended 3 1 March 2023 19 Penstons (eonL) The pension cost for Ihe yeAr represents contributions payable by the Group to the BRE and LPC Pension Scheme and amounted to £2,778k (2022.. £2,593kl. All the pension cost5 relate io unrestritted funds and have been 211ocated between activities based on the level of income for ihe year. The &ssets of the defined beneflt schemes are managed by Aon Fund M8nag¢rs held separaiely from thoseof the Gr￿p. beiD8 I￿ve￿£d with iiuffcr. Schroders. BGO. AIL and the DRC Fund. Management charges of £547k (2022.. £518k} were rncvrred in rtspe¢i of the BRE 2nd LPC Pension Scheme. Contributions to this scheme amounting to £247k (2022.. £22lk) were payable ai 31 March 2023 and are itJ¢luded in creditors. Monthly contribution5 10 the schemes are determined by a qualified acruary on the basis of triennial valuations using the projected unit meth(Kl. Under a'recovery plan. agr¢¢d with the prnsion trustees (and subrnitt¢d to the Rrgulatorl the d¢fJ¢il on the BRE and LPC Pension Sclleme is partially seujred by a dire¢1 charge over th¢ Gal￿0￿ site in favour of the pension filnd. The major assumptions used by the a¢tyary were". Cornbined Scheme 2023 Combined Scheme 2022 Combined Scheme 2021 °hpa Rate of incrtase In salaries 2.70 2.80 Discount rate for ¢alculation of beneflts 4.80 2.80 2.10 Inflation (RPI) 3.10 3.50 3.10 Inflation (CPI) 2.70 2_80 In Yaluingihe liabilities of th¢pension fiThl at 31 March 2023." monality assumptions have been made &$ hrmlicated below. The assumpttons relaiing ¢0 bngevity yjMleAying th¢ pension liabjlities at the balance sheet dale are based on standard a¢tyari21 mortality tables and include an allowance for fvture improvements in longevity. The &ssumptions are equivalent io expecting an individual, on retirement. to live for 3 number of year5 a5 follows.. The BRE and LPC Pension Sckme Current pensioner aged 65.. 22.0 year5 {rnale) and 24.4 (female) Futurr retircc (aged 45) upon reaching 65: 23.3 years Imale) and 25.8 (femal¢) The assumptions wed by the aciuary are theGroup'sbestestimaies chosen from a range ofpossiblc ar￿arial assumptions which, due to the timescale covere4 may not ne¢essarily be born¢ out in practi¢¢. The asset valuaiiorts of the scheme at 31 March 2￿3 amounted to £66.623k {2022.. £93.423k) for the BRE and LPC Pension Scheme. These omounts were sufficient ￿ ¢over 7￿A (2022: 75Yo) of the benefits that had ac¢n￿d to members. 45

BRE TRUST NOTES TO THE FtNANCIAL STATEMENTS For the year ended 31 March 2023 19 Pensions (cont.) The fair value of the s¢heme's ¥sets, which are not intendcd to be realised it) the short ierni and may be subject to SI￿lficant change before they art realised, and the present Ydlue of thc scheme's liabilities. whLch 8Jr derived from cash flow projeetions over long years and thus ithem)ily uncertain, were.. 2023 £'O(Ml 2022 £'ooo Present value of fvnded d¢fined ttn¢fit obli8atio Fair value of assets (98,519) 68.623 (125,010) 93.423 Net deficit (29,956) (31.587) Movements In p¥t5ent value oldefi•¢d benefit obliptio 2023 2022 £'O(K) At l April Inieiest on obligation Acttjarial {gain) Benefits paid Pasi setvi¢e cost {in¢l. Curtailments) 125.010 3,439 (25.537) (4.379) 133,459 2,756 (6.803) (4,460) 58 Ai 31 Mar¢h 98,579 125.010 Movehettts lty flr value of issets 2023 2022 £'ooo At l April Expected return on assets Actuarial (1055) I gairt Contributions by employer Benefits paid 91.692 1,906 ,692 2.593 (4.460) 2.594 (25.793) 2,778 {4,379) At 31 March 68,623 93,423 Amount$ ￿t￿g￿lsed in the Consolidated Sittme•t of Fl*n¢ial A¢tiviti 2023 2022 £'ooo Inier¢st on defined knefit oblig8tioLs Expected ￿tUrn on assets Past servlce cost (incl. curtalln￿￿ts) (3.439) 2.594 (46) (2.756) 1.906 (58) Resources expended (incIL￿ed in other finance costs) (891) (908)

BRE TRUST NOTES TO THE FfNANCIAL STATEMENrs For the year ended 31 March 2023 19 Pesions (collL) 2023 £'o 2022 £'oTh) Actual [t￿rn less expected return on assets Experience gain on liabilities Change in assumptions und¢rlying th¢ present value of the liabilities (25.793) (6,677) 32214 1.692 732 6.071 AcDJarial (loss)Kgain 1256) 8,495 Assets Actual r¢ttmi on the schetne during the year.. 2023 £'o 2022 £'O(M> Return OTh a5scts excluding interest Interesi itKome on &ssets (25.793) 2,594 1,692 Actyal r¢turn on sch¢m¢ . (23,199) 3,598 in re,latinn ta the FRSln2 disclosure no deft￿ed tsx providd rffi ihe n¢tdeficit of the v.heme AS no tAx lihhtlitle.8 or benefits ar¢ eXp￿ted fo aris¢ for the fO￿$ttable future.. Th¢ Group ¢xpects to ¢ontrÉbute apprtsximately £2.964k to the ilefined benefii scheme All ihe next financial year... 20 Le¥ses Ai 31 March 2023 the Group had fUtll￿ minimum lease paYTre￿ts undèr noTh-can¢ellable ot>erating leas¢ arrangements as follows: During the year£334k w&8 reco8ni5ed as an extnsc in the StaEernent of Financial Acttvilies in respe¢tof operating le&8e5 (2022. £286k) 2023 £'ooo 2022 £'ooo Planl and machinery expirin8'." Not later than one year Later than one year and not later tI￿l five yea 38 68 26 106 30 47

BRE TRUST NOTES TO THE FtNANCIAL STATEMENTS For the year ended 31 Match 2023 20 Lexses (¢ontinutd) 2023 2022 £'o Land and Buildings expirin& Not later than othe y¢at Later ihan onc year bui not later ihan five year5 La¢r than fiv¢ years 208 209 691 176 325 1.095 1.225 At 3 1 Marth 2023 the Gr￿p had eX￿ed minimum lease rttejprs non-can¢eliable operating Ita5eS as follows.. Future aniicipaied L£ssor incom¢ 2023 £'oo) 2022 Not I8￿r than on¢ year Later than one year at)d not laierthan five years tater than flve yeJrs 360 592 590 158 170 1.108 ,273 21 Related party tr#nssctio*s Trnsiees and direetors Due to the nan]re of the TTUSI'S op¢ratioTbS artd the composikn.on of the Tr￿￿e¢S Iholding other executive and non- executive roles) from time-tO-tiTne transactions will ¢ake pla¢¢ wilh o￿an]SailOn$ in which a memberof the Trustees may have an inlerest. All transactions involwng organisations in wbich a member of the Trn5te¢s may have an inierem are conducted at ann's length and in ac¢oTdan¢e wilh the TNY'S fithan¢ial regulation5 and norn￿1 sales or" p.rocurcrnent PToceduTe$. Twslees arc rffjuir¢d to complete a de¢laratJori of inter¢a each y¢ar. Durin8 the year. the Grnup made use of the setwices of J N Solutions Limit￿ of which Andrew Herbert 15 a director and Shareholder. lo the value of £173.(KK) (2022.. £206,IMXJ). The amourtt outstsnding at 31 March 2023 thie to J N Solutions Limited w&$ £Thil (2022: £19.IXIO). Group cornpanies Buildtn8 Research Limited paMI £nil inieresl on its intercompany loans with the Trnst12022- paid £nill. The Trnst paÈd £nil io Building Research Establishment Limited for work performed on resear¢h projects being undertaken by the Tnjsi {2022.. £10.0(M)). The T￿￿1 paid £nil to BRE Global Llmited for work perfOrn￿ on research projtcts being undertaken by the Trnst (2022.. £9,800). Ai 31 March 2023. there were intercompany payables from the Tnst amounting 10 £590k (2022.. payab1¢5 from the Tn￿t.. £489k) outslanding between the Trusi and its subsidiaries. 48