COOL EARTH ACTION Annual t2eport 2025/26 COOL EARTH ACTION DIREcfoR'S INTRODUCTION for the year ended 31 January 2026 A word from the Chair Dr Tony Juniper CBE, Chair, Cool Earth Action The headlines of the past year have been sobering. From record-breaking temperatures to devastating floods in our partnership regions, the triple threat of climate volatility, legislative rollbacks and environmental degradation has become a familiar part of our lives. The message from Cool Earth. however, is that when global leadership falters, we still have a roadmap to tackle the cli mate crisis. Our model 15 simplicity itself. By putting our trust and unconditional cash directly into the hands of the world's most effective conservationists, we have achieved what was once thought impossible. Today, 99% of the forest protected by the indigenous people we partner with remains standing. Scaling this impact is our next challenge. The hurdles we face are not technical but political. Given the global com munity still allocates billions to climate finance, if we can shift just a fraction of these budgets tOW3rd direct community support. it IS entirely possible that Cool Earth's model can halt rainforest destruction. This is why l am more optimistic about our ability to deliver community led ecosystem protection than at just about any time in my career. Even against the toughest of backdrops, 10,000 individuals, companies and foundations backed Cool Earth's pioneering work. When extreme flooding hit, your donations reached communities within 48 hours. When catasrrophic fire5 threatened whole landscapes, funding was there to support local action even quicker. With new partnerships coming to life in Papua New Guinea, Columbia and beyond the evidence that our approach is unbeatable just keeps building. We are proving that when you back people, you protect the planet. Thank you so much foryour unwavering trust.
Director's Introduction This year, the partnerships Cool Earth has cultivatod over nearly two decades delivered exceptional impact. As ou r chair and our team never tire of pointing out, open source data shows that up to 99% of the forest we help protect remains standing. As one of our team aptly remarked, it is a figure alrnost.too good to be true. Yet this iswhat happenswhen wetrust thoseon the frontlines. This level of success is almost unheard of in conservation. It is a direct result of the support and trust of over 10,000 individual, corporate, and foundarion funders. Your faith in our model, combined with the tireless commitment of Indigenous peoples, has created an unrivalled track record of climate action at a time when global leadership often falters. While political priorities shift, the reality of the cli mate crisis does not. Our teams and partners in Papua New Guinea, Cameroon, Colombia and Peru have shown that the many threats to forest can be overcome by combining multi-gerlerational knowledge with innovative technology. From 8a5ic Income pilots in the Amazon to thwarting logging in Papua New Guinea and amplifying the voices of those who put us in with a chance of beating the climate crisis, your collective trust has been the catalyst for impact. Thankyou for makirng it all happen. Matthew Owen, Director, Cool Earth Action
Cool Earth extsts to back peoplei protect rainforest and fight the climate criys We're changing the way rainforest is protected For decades. traditional conservation methods have failed simply because they ignore one simple solution.. People. We partner with people who want to protect the rainforest they call home. Wo trust them to make the best decisions for their families and forests, because when people have real control, lasLing change is possible. We provide direct cash, data and training for projects that reduce pressure on the forest5 and improve community health, income and resilienco. Every partnership is led locally. Communities set the priorities and we work alongside them to make those plans happen. How we work. Communitie5 get in touch We work on the frontlines of deforestation, in places where rainforests and the people who depend on them are most at risk. Sometimes communities approach us., sometimes we are introduced through trusted local partners. We ali9n on prioritie5 Local people are at the cenrre of every decision. No two commur)ities are the same. but they share a common aim to protect their land and improve life for the next generation. We find the best ways to help Together we identify what each community needs- from livelihoods and cash to data and tools- ènd design su pport that fits. We create long-term impact This leads to long-term change. stopping deforestation while improving lives and bu ilding resilience.
Trust: the secret weapon in effective climate action "What I value most about Cool Earth's work is their transparency and the respect they have for us. They have never told u5 to do things their way. They have always respected our decisions, our Indigenous autonomy.." Adelaida Bustemante, Cutivireni, Peru
The trustees present their report and the finan¢lal statements for Cool Earth Action (also knovm as and referred to as "Cool Earth") for the year ended 31 January 202& The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association of the charitable company, and Accounting and Reporting by Charities.. Statement of Recommended Practice applica ble to charities preparing their accou nts in accordance with the Financial Fleporting Standard applicable in the UK and Republic of Ireland IFQS 1021 leffective l January 20191 OBJEcfivES AND AcfiviTIES Cool Earth is a netvvork of community led conservation partnerships. It works alongside people living in rainforests to keep trees standing over the long-term. Cool Earth's found I ng principle 15 that people who live In rainforests must determine its future. WithoLJt this, rai nforest destruction will remain a key driver of the climate crisi5. Cool Earth was created in 2007 ro provide grant funding to rainforest communities and NGOS that work alongside them. The charity has worked to protect at-risk forest and ensure the voices of people who live in rainforests lead decisions that affect their future. To date, 990A of the forest protected by Cool Earth and its partners since 2007 remains standing. Cool Earth strives to ensure power over planning and spending within communities themselves. Progress has been made Ito date, 61% of programming spend is locally directed) but there is still much to do. Above all, six core values musr remain embedded into everything Cool Earth does.. People who live in rainforests determine its future., Funding decisions are planned, led and implemented by rainforest communities.. Conservation leadership is from the ground up and is not imposed by Cool Earth or partner NGOS.,
Consorvation funding is a transaction that has consequences beyond its monetary value. such, each trarlsaction must be fair and transparent The use of evaluation and monitoring technologies must serve communities, to enhance their. and our, understanding of emerging threats to the forest through an equal exchange of knowledge., and When Cool Earth is privileged to have a presence in a community, it keep5 intervention to a minimum. Public Benefit Under Section 17 of the Charitie5 Act 2011, the trustees have followed rhe Cha riry Commission's guida nce on public benefit. Cool Earrh a Ims to achieve the followi ng objectives.. To provide funding to rai nforest commur)ities to support their work in protecting at-risk forest, and ensure their voice is heard in agreements that affect the f utu re of rainforests., and To promote a greater recognition that local leaders and communities must lead and be rewarded for the development of strategies to address the role destruction of the natural world plays in the climate crisis. Trustees, assessment of publi¢ benefit In monitori ng the progress of the charity in torms of delivery of public benefit, the trustees use the following measures of success and gather evidence accordingly.. Participating in partnershi ps to protect rainforest at risk of destrLJCtion and degradation", Evaluating the effectiveness of indigenous peoples and local communities in protecting rainforest compared to protected areas and privately or state-owned forest," and Assessing and measuring the amour)ts of forest protected and quantities of carbon stored by each partnership through satellite mapping and ground surveying.
Programmes In 2021 we developed a Programmes Strategy to guide our work until 2026. We continued to work to this framework through 2025, building on two key existing projects, Uncornditional Cash Transfers and data, as well as continuing to work with local partners and communities across the three major rairnfore5t biomes on a range of projects to protect rainforest a nd back indigenou5 and local people living there. Each one of our programmes tackles a challenge which is different from the rest. Did we meet our 2025 goals. The honest answer, yes and nol Goal I: Ensure more cash reaches the rainforest In 2019 43% of spend supported programmes in Peru and Papu3 New Guinea. Last year, that reached 60% and we aim to deliver at least 80% by 2030. Evory pound you donated helped each community become more resilient. And resilient communities mean a healthy rainforest. We can't lisr it all, but here are some of the things the communities spent the mor)ey on.. Every family had cash for food, medicine and education, meaning offers from extractive industries like logging and minirng were less appealing Constructed health posts. meaning commur)ities had less distances to travel to for medical help Purchased school uniforrrs, school supplies and paying teachers, because Indigenous education 15 underfunded Provided support and shelter for vulnerable families so they can thrive too I nstalled water tanks to improve health and sanitation for whole communities Ensured training and education that empower women, the backbone of community life invested in crops and garden improvements, to help sustain families and improve food security
Goal 2.. Ensure more people have a¢¢ess to tech and data S9.000 people acro the three largest rainforesrs in the world now have better access to data, traini ng and tools. In Peru, rhe resulrs of combining tech with Indigenous W15dom means wildfires in CAFIE'S territory dropped from 25 in 2023 to nine in 2024, and to zero in 2025. "We strengthen that ancestrol wisdom with tools like satellites, weather data and rapid commur)ication. enobling early oction before fires turn into disasters." David Torres, Coordinator & Monltoring Specialist (CARE), Satipo, Peru. In Cameroon, we worked alongside CCFIEAD to provide solar panels so communities have access to eleciricity. One year on CCFiEAD reports that families are delightod to have a steady source of electricity and that commu rnities are collecting less fi rew(x)d from rhe forest. Over in Papua New Guinea, the new Rainforest Lab is being used by community members to monitor the health of their forest and map important species. "I help with biodiversity Surveys like frog count5, bird vvatching ond tree togging. I love it because I leorn so mony new things." Liddie, Wabumari, Papua New Guinea. Goal 3: Establish two new partnerships We said we would start work in Colombia, and we did. In partnership with Equal Rights and The Nature Conserwdncy, we provided funding and expertise to kick-start a basic income pilot in Colombia. We're in the design phase and aim to start the FPIC (Free, Prior and I nformed Consent) process with the communities in early 2026. This ensures that communities are fully informed and freely agree ro projects to protect their ancestral land. Maintai ning dignity, understanding and respect. But we didn't manage to start our new partnership in Ghana as we had hoped. Instead we focused our resources on Papua New Guinea, where five new comniunities asked us for support a5 pressure from loggers intensified. We're proud to be able to react so quickly in Papua New Guinea and our attention will turn back to Ghana as soon as possible.
Goal 4: Improve the speed of resources Ir cu rrently takes12-18 months from the initial cor)versation with commu r)ity leaders to setting up a partnership. But, a5 we partner with more and more communities we're becomir)g even more efficierit. Each community is unique and there are many careful considerations to be made, from co-creation and mapping to establishing baselines and making sure everyone has ID so they can open bank accounts. All this, and more, has to happen before the first cash transfer takes place. When it truly matters. in an ernergency, such as wildfires and health emergencies in 2024, and extreme flooding in 2025, we had your donations with communities in 48 hours. That is the strength of f lexible, unconditional cash. Rooted in results By supporting Cool Earth you are helping to protect 866,998 hectares of rainforest and by protecting the forest, you are helping to lock in 522 million tonnes of carbon each year. It's now confirmed that together we protect some ofthe most carbon dense rainforests in the world. New data, shows that our Peru partnerships are located in one of the most carbon dense rainforests on Earth. making it critically important that we protect it. 'Source.' htt lanet.com roducts forest-carbon We are proud of these stats but they are just half the story. The other half is told through the courage of people like Regina and the villages she protects. Nine communities standing firm against loggers Regina, our Country Manager in Papua New Guinea, explains thar a logging company has been lying in wait for over 12 months. They have set up camp near communities to keep the pressure high.
"Their aim is to log as many trees as possible, shipping the timber to China. They enter the communities every few weeks with tempting offers.. thick envelope5 of cash and empty promises,, Regina says. The loggers arrive with smiles and promises that sound like a politician's pitch.. better roads. schools, health centres, roofing iron and water tanks. They sweet-talk communities, saying things like'you car) keep your land and other resources, we just wa nt your timber" or "you'll receive royalties to help your families and keep your children in school." "They like to target leaders and ward councillors first. The loggers know that if they convince one respected figure, others might follow," Regina says. Cash is a lifeline and loggers know it. But that's where you come in. In December, you helped raise £200,000 so we could partner with five of the communities, meaning they can keep saying no to the loggers. Because of your support, and their resilience, the forest is still standing. But pressure from the loggers remains high. In 2026, we'll be doing everything we can to support the communities. We'll provide cash and data, and we'll bring in leg81 experts where needed. Anything to keep the forest standing and communities resilienr. Thank you for your support. Regina Kewa, Papua New Guinea Country Manager Our 2026-2027 Goal&. l. Papua New Guinea: Partner with five new communities to halt urgent logging threats. Co-creation begins in early 2026. If it all goes to plan, cash transfers could start at the end of 2026. Z Colombia: Continue our partnership with Equal Right and The Nature Conservancy. In early 2026, we will meet communities to start co-creating a 8asic Income pilot that suits their needs and protects forest. 3. Ghana: Work with a community near the border of the 8osumtwi Forest Reserve. A programme we hoped to start in 2025, but the logging situation in Papua New Guinea meant we had to prioritise our support there. Our work in Ghana is irn the very early stages and conversations with the community about 10
whether they want support are still ongoing. If we partner, we hope the first cash trarlsfers will ta ke place late 2026. All this is alongside supporting our existing partnerships in Peru. Cameroon and Papua New Guinea, as we have done for the last 18 years. GOVERNANCE, STRUCTURE AND MANAGEMENT The charitable company is governed by the rules and regulations set down in its Memorandum and Articles of Association dated 15 January 2007. Cool Earth has two operational hubs in Peru and Papua New Guinea that operate as locally registered organisations. They are regional partnerships that work to ensure local people's rights over the rainforest are exercised. Each hub is led by a Clobal Head of Department and supported by other members ofthe Global Leadership Team. I well as programming, each hub also contributes to Cool Earth's finance, human resources, fundraising and communications capacity. The Peru Hub is made up of nine partnerships that include three indigenous groups. It has a team of 20 staff and 8 consultarits. The PNG Hub is composed of five partnerships and has a team of 6 staff and 15 consultants. The Cool Earth network also includes an exceptional number of locally led organ isations that are designing and deliveri rig a people-led approach to forest protection. In Cameroon. Cool Earth continues to work alongside CCREAD who are shapi ng the future of rainforest conservation in this critical part of the Congo Basin. In Colombia, a new partnership with local communities, the Nature Conservancy and Equal Rights is extending Cool Earth's pior)eering Conservation Basic Income Cool Earth will initially protect up to $3,000 hectares of critical rainforest. The overall strategic direction ofthe charity is determined by the trustees, who meet formally twice a year and periodically to address exceptional issues. The trustees are responsible for planning a nd policy making, and accordirigly, all key decisions are referred to and taken by the board of trustees. Day to day ry)anagement is provided by an executive dirèctor based in the UK who is supported by a senior leadership group and a team of36. 11
STRATEGIC REPORT Future Plans In September 2024 Cool Earth's UK and US board met with its senior leadership team and senior managers to initiate a strategic review of the org3n isations. five year plan to 2030. With a greater focus on evaluation ofthe scale and cost effectiveness of irrpact, Cool Earth's strategy is focused on scali ng direct commu nity support to protect two million hoctares of forest and store half a bi Ilion tonnes of carbon. Cool Earth will conti nue to pioneer the use of cash and data as the most flexible rneans of building resilience amongst communities with multi-generational track records of keeping forest standing. The boards and executive wi11 continue to advocate for global climate fina nce to be delivered directly to people l iving in rainforests. Monitoring activity & KPIS To monitor progress. canopy and carbon metrics will stand alongside an evidence base of almost twenty years of community-led monitoring of the economic, social and ecological changes in rainforest within and su rrounding Cool Earth's partnership. Key f inancial measures include exceeding the groVh rates of its peers across i ndividual supporters, corporate donors and trusts and foundations and meèting reserve requirements that safeguard the con515tency of partnerships with indigenous and local communities. Company Information The trustees of the charity, also the directors ofthe company, who have held office sir)ce l February 2025 are as follows.. Mr. Anthony Juniper (Chair of Trustees) Mr.Johan Eliasch Ms. Gillian BLJrke IResigned 19 Nlarch 20261 The Flt. Hon. Lord Deben Mr. Mark Ellingham Ms Lucy Erickson The principal address and reg istered address of the charity 15 Tremough Innovation Centre, Penryn, Cornwall, TRIO 9TA. 12
The charity is registered under the charity number 1117978. and the company is incorporated with the company registration number 06053314. The trustees have made the following professional appointments.. Solicitor.. Stephens Scown LLP, 2 Kingdom Street. London, W2 6JP Banker.. CAF Bank, 25 Kings Hill Avernue, Kings Hill, West Malling, ME19 4TA Auditor.. RRL LLP, Peat House, Newham Road, Truro, Cornwall TTrl 2DP Mr. Matthew Owen acts in an exècutive capacity as the Executive Director of Cool Earth Action and is respornsible for the day-to-day management of the charitable company. The key management personnel of Cool Earth Action are considered to be Matthew Owen, Dr. Hannah Peck (Deputy Directorl, Sophie Kisnorbo- Resigned 16 March 2026 (Head of Operations and HF21, Isabel Felandro (Head of Programmesl. Kaite Helps (Head of Communications and Marketing), Shannon Kessell (Acting Head of Fundraising), and Martin Simonneau IActing Head of Policy & Advocacy) The remuneration of the key management personnel is decided upon by the board of trustees taking account of performance and the levels of pay in a representativè peer group of similar Non-Governmental Organisations. The trustees are assisted by an Advisory 8oard of individuals that are neither trustee5 nor directors. Trustees, Responsibilities The trustees, who are the directors of Cool Earth for the purposes of company law, are responsible for preparing the annual report and the firnancial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom GenerallyAccepted Accounting Practice). The report and accounts have been prepared in accordance with the provisions in the Companies Act 2006 relating to small companies. Company law requires the trustees to prepare financial statements for each financial year which give a true and fai r view of the state of affairs of the charitable company, and of the incoming resources and application of resources, including the income 13
and expenditure of the charitable company, for that period. In preparing those firnanci81 statements, the trustee5 are required to.. Select Sultable accounting policies and then apply them consistently., Observe the methods and principles in the Charities SORP", Make judgements and accountir)g estimates that are reasonable and prudent., Srare whether applicable UK Accounting Standards have been followed subject to any material departures disclosed and explained in the financial starements., and Prepare the financial statements on the goi ng concern basis unless it is inappropriate to presume that the charitable company will conti nue in business. The trustees are responsi ble for keeping proper accounting records that d isclose with reasonable accuracy at any time the fin3 ncial position of the cha rit3ble company and ernable them to ensure that the financial statements comply with the Companies Acr 2006. They are also responsible for safegu3rding the assers ofthe charitable company a nd for taking reasonable steps for the prevention and detection of f raud and other irreg ularities. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charit3 ble compa ny's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from the leg151ation in other j urisdictions. Statement as to disclosure to our auditors In so far as the trustees are aware at the time of approving our Trustees, Annual Report.. There is no relevant information, being information needed by the auditor in connection with preparing their report, of which the Charity's auditor is unaware, and The trustees, having made enquiries of fellow directors and the Charity's auditor thal they ought to have individually taken, have each taken all steps that helshe is obliged to take as a director in order to make themselves aware of any relevant audit information and to e5rablish that the auditor is aware of that information. 14
Method of Recruitment, AppointmenL Election, Induction and Training of Trustees The original trustees Vre the founders of the organisation with particular personal interests in attempring to find a way to actively tackle worldwide climate change issues. As and when a future vacancy arise5, or should the required mix of skills, experience and knowledge required with the board oftrustees change over time. such matters will be considered when recruiting suitable candidates. In accordance with the company Memorar)dum and Articles of Association, the minimum number oftrustees should not be less than three, but no maximum limit is dictated. It is likely in the future suitable trustee candidates will be identified by the existing trustees or be referred to the existing trustees through the Advisory Board arnd/or other interested third parties. Appoir)tment as a trustee is by election and requires an ordinary resolution of the members of the charitable company. All trustees are mado aware of and have access to relevant Charity Commission pu blications and are regularly briefed by their professional advisers on significant developments within the charity sector that are applicable to the charity's circumstances. New trustees are provided with both an introduction to the charity, its work and their role wirhin it, and with pertinent copies of paperwork. Relationship with Related Partles In order to maximise the impact of Cool Earth's activities to support communities to protect oinforest, it is the policy of Cool Earth to develop partnerships with local communities and NGOS, On occasions, Cool Earth has become a significant co -funder of conservation projects with a range of organisations who have been selected on the basis oftheir experience, record of community engagement and commitment to the aims of Cool Earth. ey partners of Cool Earth over the past year have included, University of Bath, Tropenbos, Equal Right, CCREAD. CARE, ONAMIAP, OMIAASEC, CELcofi, and AidKit. Cool Earth Action USA Inc. is an affiliated non-profit organisation in the USA that is registered as tax-exempt under section 501 Icl131 of the federal law of the United Stales. Cool Earth Action USA Inc. does not share trustees or offices with Cool Earth Action but does contribute directly to Cool Earth Action's programmes. 15
In¢ome and Fundraising Cool Earth's Income for the year was £5.85 million1202412025.. £4.84 million) and individua15, businesses and foundations continue ro be the primary funding source. This outcome was below the target set of maintaining income and reflects the challenging fundraising environment in the UK, particularly f rom individuals. Funding from trusts and foundations and from corporate supporters met or exceeded expectations. In 2025, Cool Earth spent over £3.2m on programmatic work, including £2m given directly to communities living in rainforest. Donors in the UK & Europe together gave £3.7m We added £1Sk to our reserves. safeguarding rhe future of the organisation's vital work For every we spent on fLJndraising, we raised £6.80 Cool Earth extends its thanks to all our donors, ind ividuals, long standing corporates and foundations such as Brother and Postcode Lottery, alongside newer supporters such as t4OJU. Your generous support means Cool Earth can continue to back people. protect rainforest and tackle the climate crisis. Fundraising Stsndards Information Cool Earth Action fund raising activities are carried out by its UK-based development team. led by the Head of Fundraisin9 and Engagement. The team's approach focuses on building long-term relationships with individuals, businesse5, and foundations to ensure diverse and su5t8inable i ncome. The charity d id not engage a professional fund rniser to carry out fundraising activities on its behalf during the year ended 31 January 2026. The charity is registered with the Fundr2 i5ing Regulator and is subject to the Code of Fundraising Practice. It is committed to adhering to th is code, which sets out the legal, honesr, respectful. and open standards for fundraising. There were no reported failures to comply with the Code of Fundraising Practice or the relevant statLJtory and accounting standards during the reporting period. The Trustees and the Senior Management Team regularly monitor fundraising activities through annual reviews of the fundraising ar)d communications strategy to ensure financial sustainability, ethical compliance, and efficiency. The charity actively 16
monitors the cost-effectiveness of its fundraising, noting that it successfully raises nine times what is spent on generating funds during the reporting period. The charity is committed to transparent and ethical fund fftising and is pleased to report that there were no formal complaints received by the charity or a person acting on its behalf about its f undra ising activities du ring rhe year ended 31 January 2026. Cool Earth Action is committed to protecting vulnerable people and other members of the public from unreasonably intrusive or persistent solicitations. and (Jndue pressure to give, as set out in the Code of Fundraising Practice. All internal fundraisi ng processes are designed to be respectful, clear, and comply.with all legal requirements. The Board of Trustèes tèkes responsibility for.safeguarding the charity's assets and ensuring reasonable steps are taken for the prevention and detection of fraud and other irregularities. Financial risk mitigation actions, including investments in improved accounting systems and internal controls, directly protect the public's donations and prevent the misappropriation of funds. Financial Results of ActiVFties and Evènts Total income for the year amounted to ,855,0111202412Q2S.. £4,848,2111, and total Èxpenditure was £3,840,39612024/2025.' £3,913,598), resulting in net income of £14,615 1202412025.. £934,613). The trustees are satisfied with the financial performance of the charifable company and its financial position at the balance sheet date. A budget process that focused on eliminating c05tS that do not support the q L¢ality of range of Cool Earth's programming ensured income exceeded expenditure for the 18th year. With free reserves of well over £5m and a reinvigorated fu ndr8 ising strategy, the trustees are confident that existing programming commitments can be maintained and expanded in pursuit of Cool Earth's climate mission. The charity is nonetheless active in assessing future risks to programming, fundraisir)g and development. The global finance team monitors exposure to foreign exchange swings ar)d a proportion of reserves are kept in currÈncies that match expenditure to provide a hedge to volatility. Equally, the irnvestment of a proportion of reserves in short duration assets provides liquidity and underpins the availability of cashflow. The charity has entered into no material credit arrangements. During the previous year a company under the control of Cool Earth was retired from the Register of Companies whilst still carrying a cash balance. These funds have been 17
retrieved from the Treasury Soliciror. In these accounrs tho funds are therefore returned to reserves. Res•rves Policy As of 31 January 2026, the charity had free reserves" of£S,830,318131 January 2025.. t5,932,3901. Beyond the requiremenis of a prudent workirng capital base, since 2011 Cool Earth has held a Reserdes Fund. ro ensure it can realise irs commitmer)ts to community partners even in the event of an income shortfall. Each year an assessment is rnade ofthe funding requirements of each partnership. The 'free reserves, fulfill the funding requirements for every partnership that Cool Earth has entered into and allows for addiiional partnerships to be added i n the current year. Investments Policy The trustees have wide ranging powers to invest the funds of the charity at their discretion and as they think f it. The charity makes use of a Sterling bank account to hold all the non-reserve funds of the charity as cash so that they are readily availa ble to expend in support of the charity's activities as and when required by the trustees. eserves are currently held in high inreresr deposit accounts and should signif icant fu nds be received in the future the trustee5 will consider suitable investment opportunities. Risk and Corporate Governance Matters The trustees recognise that Cool Earth's range of operations in the UK and overseas expose it to a range of risks. In order to manage these risks appropriately and mitigate their impact on the operation and effectiveness of Cool Earth, the trustees have developed a risk strategy that details categories of risk and appropriate management strategies. A risk register is maintained by the Executive Director, which summarises key risks and which the board reviews. As identified on the risk register, the main risks and the measures taken to mitigate them are as follows.. Risk I: Natural or human induced hazards, such as floods, forest fires, epidemics and internal conflict impact on Cool Earth's ability to deliver parallel programmes 18
and complete existing partnerships resulting in risk to personal security of staff, partners, assets and resources in-country. Mitigation Action I.. Country Security plans, and escalation processes, are in place to respond, adapt programmes and prepare contingency plans. During this year Hostile Environment Awareness Training was undertaken by key staff and in-country emergency procedures were updated for all Cool Earth's partnerships. Risk 2: Failure to sustain levels of overall funding for Cool Earth's partnership commitments. M itigation Action 2.. Cool Earth undertakes annual revIeV of our fundraising and communications strategy. These have put in place strategies to diversify income by geography lan increase in non-sterling funds) and source la more even division between busi ness, individual and trust fundersl. Risk 3: Ineffective informatlon flow, failure of Internal controls, and a dispersed geography of programmes leads to a risk that fund5 could be misappropriated or in¢orre¢tly rOrded and information not being avallable to make informed decisions. Mitigètion Action 3.. lrnvesrments in improved accounting systems and the development of standard accounting policies, procedures arld definitions are currently being rolled out across all partnerships. FUNDS HELD AS cusfoDIAN Although tho charity will maintain restricted funds to deal with incoming resources that are earmarked for a particular purpose by donors, sponsors, and other funders. the charity does not curreritly hold, and does not intend to hold, any funds as custodian for any third party. This report was approved by the trustees on17 August 2026 and was signed for and on behalf ofthe board by.. . Chairof Trustees MrAnthonyJuniper IY, August 2026 19
Independent Auditor's Report to the Member5 of Cool Earth Action Opinion We have audited the financial statement5 of Cool Earth Action (the 'charitable company'l for the year ended 31 January 2026 which comprise ofthe income and expenditure account, the statement of financial activitie5, the balance sheet, statement of cashflows and note5 to the financial statements, including Significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and U n ited k<ingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standa rd applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the fina ncia5 statements.. give a true and fair view of the state of the charirable company's affairs as at 31 January 2026, and of its incoming resources and application of resources, including it5 income and expenditure, for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those sta nda rds are further described In the auditor responsi bilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that a re relevant to our audit of the financial statements in the UK, includ i ng the FRC'S Ethical Sta ndard, and we have f ulfilled our other ethic31 responsibilities in accordance with these requ irements. We bolieve that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trLJStoes' uso of the going concern basis of accounting in the preparation of the financial statements IS appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast 51gnificanr doubt on the charitable company's ability ro continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibi lities and the responsi bilities of the trustees with respect to going concern are described i n the relevant sections of this report. Other information 20
The other information comprises the information inclL¢ded in the trustees, annual report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information. Our opi nion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated i n our report, we do not express any form of assurance conclusion thereon. O(Jr responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the fi nancial statements or our knowledge obtained in the course of the audit or otherwise appears ro be materially rnisstated. If we iclentify such material inconsistencie5 or apparent material misstatements, we are requ ired to determine whether this gives rise to a material misstatement in the financial statements themselves. If. based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in thi5 regard. Opinions on other matters prescribed by the Companiès Act 2006 In our opinion, based on thè work undertaken in the course of the audit.. the information given in the trustees. report, which includes the directors, report prepared for the purposes of comparny law, forthe financial year for which the financial statements are prepared is cons15tent with the financial statements". and the directors, report inclLJded within the trustees, report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtainèd in the course of the audit, we have not identified material misstatements in the di rectors, report i ncluded within the trustees, report. We have nothing to report in respect of the following matters in relatiorn to which the Companies Act 2006 requires us to report to you if, in our apinion.. adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by u5,. or the financial statements are not in agreement with the accounting records and returns., or certain disclosures of trustees, remuneration specified by law are not made., or we have rnot received all the information and explanations we require for our audit or the trustees were not entitlod to prepare the fir)ancial stalemerits in accordance with the small companies, regime and take advantage of rhe small companies, exemptions in preparing the directors, report and from the requirement to prepare a strategic report. 21
Responsibllities of trustees As explained more fully in the trustees, responsi bilities statement set out on pages13 and 14. the trustees (who a re also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the f inancial statements and for being 5atisfiod that they give a true and fair view. and for such internal control as the trustees determine is necessary to enable the preparatiorn of fina ncial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, tho trustees are responsible for assessi ng the charitable company's abi l ity to continue as a going concern, disclosing, a5 applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend ro liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Auditor responsibilitie5 for the audtt of the fjnaneial statements Our objectives are to obtai n reasonable assu rance about whether rhe fi nancial statements as a whole are free from material mi55tatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guara ntee that an audit conducted in accordance with ISA5 IUKI will always detect a material misstatemenr when it exists. Misstatements can arise f rom fraud or error and are considered material if, individually or in the agg regate, they could reasonably be expected to i nfluence the economic decisions of users taken on the basis of these fi nancial statements. Irregularities, including f raud, are instances of non-compliance with laws and regu lations. We desig n procedures In line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. As parr of our audit work, we obtained an understanding ofthe legal and regulatory frameworks applicable to the charity and the sector in which rhey operate. We determi ned that the laws a r)d regularions that were most significant were those that havè a direct impact on the preparation of the f inancial statement5 such as the Companies Act 2006, the Charitie5 Act 2011. and compliance with the Charities Statement of Recommended Practice. In addition. we have considered provisions of other laws and regulations that do not have a d irect effect on the financial sratemenfs but compliance with which may be fundamental to the Charity s ability to operate or to avoid a material penalty. These include data protection regulations, health and Safety regulations, Proceed5 of Crime Act, Bribery Act and employment leg islation. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below.. Obtain an understandi ng of the legal and regulatory frameworks applicable to the charity and the sector in which it operates. We determined that the following laws and regulations were most significant-. the Companies Act 2006, the Charities Act 2011. Health and Safety Fiegulations, Proceeds of Crime Act, Bribery Act and GDPR eview of the disclosures in the financial statements and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations descri bed a5 having a direct effect on tho financial statements., Enqu Iries of management concerning actual and potential litigation and claims., Performing analytical procedures to identify any ur)ugual or unexpected relationships that may indicate risks of material mi55tatemernt due to fraud". Reviewing minutes of meetings and correspondenco wirh regulators.. 22
Performing audit work in connection with the risk of management override of controls, including testing journal entries for reasonableness, evaluati ng the business rationale of significant transactions outside the normal course of business and reviewing accountin9 estimates for potential bias. We 3150 com municate relevant identified laws and reg ulations and potential fraud risk to all engagement team members and remain alert to any indications offraud or non-compliance with laws and regulations throughout the audit. Our audit approach also considered the opportu nities and i ncontives that may exist within the charity for fraud and identified the greatest potential for fraud being in respect of cut off and completion risk around revenue recognition. Under ISA IUKI we are also required to undertake procedures to respond to the risk of management override of controls. Our procedures included the following.. U ndertaking transactional testing on revenue Performing completeness testing on the dor)ation income Performing cut off testing on income Auditing the risk of management override of controls, including rhrough testi ng journal entries and other adjustments for appropriateness, and evaluating the business rationale for significant transactions outside the normal course of business Reviewing estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making estimates. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the fi rnancial statements or norn-compliance with regulation This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected ir) the financial siatements, as we will be less likely ro become aware of instances of non-compliance. The risk is also greater regarding irregularities occu rring due to fraud rather than error, as fraud involves intentior)al concealmer)t, forgery, collusion, omission or misrepresentation. A further description of our responsibilities is available on the FQC'S website at.. https'.//wwm.frc.org.uklauditorslaudit-assurance/auditor-s-responsibilities-for-the-a udit_of-the-fildescription-of-the-auditorQhE20/o80%99s-responsibilities-forThis description forms part of ou r auditor's report. Use of our report This report is made solelyto the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 ofthe Companies Act 2006. Our audit work has been undertaken so that vve might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullost extent permitted by law. we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. 23
(QL LLF Josh Stevens ACA Isenior Statutory ALJditorl For and on behalf of RFIL LLP Chartered Accountants Starutory Auditors Peat House Newham Fioad TRURO TRI 2DP -714 24
COOL EARTH ACTION STATEMENT OF FINANCIAL ACTIVITIES (including Income and Expenditure Account) for theyear ended 31 January 2026 Unrestricted Restricted Funds £ Funds £ TOTAL 2026 TOTAL 2025 Notes INCOME FROM: Donations and legacies Other trading activities Investments 2,475.290 730 170,111 1.208,880 3,684,170 730 170,111 4,725,518 2,048 120,645 TOTAL 2,646.131 1,208,880 3.855,011 4,848.211 EXPENDITURE ON: Flaising funds Charitable activities-. Project Work 1570,2991 1570,2991 1512.6241 12,169,128) 11,100.9691 13,270,097) 13,400,9741 TOTAL 12,739,427) 11,100.9691 13,840,396) 13,913.S981 NET INCOME AND NET MOVEMENT IN FUNDS 193,2961 107.911 14,615 934,613 RECONCIUATION OF FUNDS Fund balances brought forward at l February 2025 5,966,845 281,751 6.248,596 5,313,983 FUND BALANCES CARRIED FORWARD AT 31 JANUARY 2026 5,873.549 389,662 6.2,217 6.248,596 25
COOL EARTH AcnoN STATEMENT OF FINANCIAL ACTIVITIES {including Income and Expenditure Account) for the year ended 31 January 2025 unrestricted Restricted TOTAL 2025 TOTAL 2024 Funds £ Funds £ Notes INCOME FROM: Donations and legacies Other trading activities Investmenrs 4,023,665 2,048 120,645 701,853 4,725,518 2,048 120,645 4,856,463 20,658 8,493 TOTAL 4,146,358 701,853 4,848,211 4.885,615 EXPENDITURE ON: aising funds Charitable activities-. Project Work IS12,6241 1512,6241 1514,7961 12.071,3911 0,329,583) 13.400.974) 13,836,1951 TOTAL 12,584,015) 11,329,S831 13,913,598) 14,350,9911 NEf INCOME AND NET MOVEMENT IN FUNDS 1,562,343 1627,7301 934,613 534,624 RECONCILIATION OF FUNDS Fund balances brought forward atl Febru3ry2024 4,404,502 909,480 5,313,983 4,779,359 FUND BALANCES CARRIED FORWARD AT 31 JANUARY 2025 S,966.845 281,751 6,248,596 5,313,983 26
COOL EARTH ACTION BALANCE SHEET asat 31 January 2026 2026 2025 Notes FIXED ASSETS Intangible assets Tangible assets ii 12 29.124 14.107 43,231 31,624 2,831 34.455 CURRENT ASSETS Debtors Cash at bank and in hand 13 1,232,202 5,099,639 6,331,841 966,867 5,306,957 6,273,823 LIABILITIES Creditors.. Amourits falling due within one year 14 1111,8611 159,6821 NET CURRENT ASSETS 6,219,980 6,214,141 TOTAL ASSETS LESS CURRENT LIABILITIES & NET ASSETS 6,263,211 6,248,596 THE FUNDS OF THE CHARITY Restricted income funds U nrestricted funds 15 15 389,662 s,8,549 6,2,21] 281,751 5,966,845 6.248,596 The financial statements on pages 24to 43 were approved bythe trustees and authorised for issue on 17th August 2026, and are signed on their behalf by Trustee DATE.. IT, August 2026 Company Number.. 06053314 27
COOL EARTH ACTION STATEMENT OF CASH FLOWS for the year ended 31 lanuary 2026 2026 2025 Notes CASH FLOWS FROM OPERATING AcfiviTIES: Nei cash provided by operating activities 17 1363,1291 2,156,552 CASH FLOWS FROM INVESTING AcfiviTIES: Dividends, interesr and rents from investments Purchase of intangible f ixed assets Purchase of tangible fixed assets Short term investment withdrawrn/ldeposltedl 170,111 120,645 118,0001 15,4071 114,3001 Net cash provided by/lused inl investing activities 155,811 97,238 CHANGE IN CASH AND CASH EQUIVALENTS IN THE REPORTING PERIOD 1207,3181 2,253,790 Cash and cash equivalents at the beginning of the reporti ng period 5,306,957 3,053,167 CASH AND CASH EQUIVALENTS AT THE END OF THE REPORTING PERIOD 18 5,099.639 5,306,957 28
COOL EARTH AcfioN NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 January 2026 I. ACCOUNTING POLICIES Company Information Cool Earth Action is a private company limited by guar?ntÈe incorporated i n England ar)d Wales. The registered office is Tremough Innovation Cerntre, Penryn Campus, Penryn TRIO 9TA, with the principal place of business being the same. The company's pri ncipal activity is disclosed in the Trustees. Annual Report. Basis of Accounting These financial statements have been prepared in accordance with Ff4s 102"The Financial Reporting Standard applicable in the UK and Flepublic of Ireland" the requirements of the Companies Act 2006 and under the historical cost convention. Within the defi nitions of FFIS 102, the charitable company, which is limited by guarantee, is a public benef it entity. The financial statements have also been prepared in accordance with the accounting policies set out in more detail below, to comply with the charitable company's governing document, the Charities Act 2011 and Accounting and Fleportirng by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts In accordance with the Financial Reporting Sta ndard applicable in the UK and Republic of Ireland IFRS 1021 (effective l JanLJary 20191- The financial statements are prepared in Sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £1. Going Concern The charitable company is fundamentally dependent upon the corntinuing f i nancial support of sponsors, supporters and other key funders to remain a going concern. The trustees have formulated financial plans for the f uture, as at the date of adoption of these financial statements and on the basis of estimated future cash flows, the trustees are of the opi nion that the charitable company will be able to continue its activities and meet all of its liabilities as they fall d ue for a period of at least twelve months from the date of the adoption of these financial statements. Therefore, these financial statements have been prepared on the going concern basis. 29
COOL EARTH AcfioN NOTES TO THE FINANCIAL sfATEMENTS (Continued) for the year ended 31 January 2026 I. ACCOUNTING POLICIES (Continued) In¢ome All income is included in the statement of fina ncial activities when the charitable company is entitled to the funds, receipt is probable. and the amount can be quantified with reasonable accuracy. Donations are normalSy brought into account when received and are stated gross of any attributable tax recoverable. Grants receivable including government gra nts are accounted for in the year in which the Charity is entitled 10 receipt. A legacy or bequest is recognised in the financial siaiemenis when ihe certainty of receipt and the amount receivable has been established. Donations and grants given for specific PLJrposes are treated as restricted income. All other income, including investment income. is accounted for on a receivable basis as and when earned by the charity. Legacies Legacies are deemed receivable f rom rhe date of notification, provided that sufficient information has been received to enable a relia ble measure of the amount receivable to be made. fiecognirion of legacy income, in whole or in part, is only made when probate has been granted, the amount can be measured accurately and the charity has been notified of the executor's intention to make a distribution. Th is valuarion method reflects the i nherent uncertainty as a substantial proportion of legacy income is represented by property and other investments whose value is subject to market fluctuations until Tealised. Residuary legacies are valued in line with these considerations, Gifts In Kind The value of gifts in kind is recognised as income where the gross value to the charitable company can be assessed with reasonable accuracy. Where this is not the case, the rnature of the gift is disclosed. Foreign Currencies Transactions denominated in foreign currencies are recorded using the rate of exchange ruling at the dale of the transaction. Monetary assets and liabilities denom inaied in foreign currencies are translated usi ng the rate of exchange ruling at the balance sheet date. Al l exchange gains or losses are included in the statement of financial activities in the period to which they relate. 30
COOL EARTH AcfioN NOTES TO THE FINANCIAL STATEMENTS Icontinuedl for the year ended 313anuary 2026 Termination benefits Termination benefits are payable when an employee's employment is terminated by the charity before the normal retirement date, or whenever an employee accepts voluntary redundar)cy in exchange for these benefits. The charity recognises termination benef its as a liability and an expense when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without realistic possibility of withdrawal, or providing termination benefits as a result of an offer to encourage voluntary redundancy. Expenditure All expenditure is accounted for on an accruals, basis inclusive of any irrecoverable Value Added Tax and Is allocated as di rect costs i n the statement of fi nancial activities where the costs can be identif red as being directly related to raising funds or to charitable activity. Where costs cannot be directly attributed, they are allocated to categories on a basis consistent with the budgeted use of the resources concerned or in proportions based upon a suitable ratio applicable to the nature of the cost involved. Grants payable are recognised in the period in which the approved offer is conveyed to the recipient I n those cases where the offer is conditional, such grants being recogn ised only when the conditions attaching to the award are fulfilled. Grants offered subject to conditions, which have not been met at the balance sheet date, are noted as a potential commitment, but are not treated as a liability. Governa nce costs comprise specific d irect costs incurred by the charity in relation to operating the cha ritable company as a charitable company, which includes audit fees, and a proportion ofcertain other support costs allocated to governance by the trustees. Intangible Ftxed Assets All intangible assets purchased costing more than £1,000 that have a usef ul economic life that exceeds one year are capitalised and classified as intangible fixed assets. I ntangible fixed assets are stated at historical cost less amortisation. Amortisation 15 provided on all intangible fixed assets at rates calculated to write each aet down to its estimated residual value over its expected useful life, as follows.. Website on a 33% straight-line basis 31
COOL EARTH AcfioN NOTES TO THE FINANCIAL STATEMENTS (Continued) for the year ended 31 January 2026 Tangible Fixod Assets All tangible 25sets purchased costing more than £1,000 that have a useful economic life that exceeds one year are capital ised and classified as tang ible fixed assets. Tangible fixed assets are stared at historical cost less depreciation. Depreciation is provided on a I I tangible f ixed assets at rates calculated to write each asset down to its estimated residual value over its expected useful life, as follows.. Office & computer equipment on a 33% straight-line basis Financial Instruments A financial instrument Is a contract thar gives rise to a financial asser of one entity and 3 financial liability or equity instrument of another entity. Fi nancial instruments are therefore classified and accounted for accord ing to the substance of the contractual arrangement as financial assets, f i n3ncial li8 bilities or equity instruments. An equity Instrument Is any contract that evidènces a residual interest in the assets of the entity after deducti ng all of its lia bilitie5. Financial Assets and Liabilities The charitable company's debiors and creditors that meet the definition of either a fina ncial a55et or a financi81 liability are initially recognised at the transaction value and thereafter are stated at amortised cost using the effective interest method. Fund Accounting The general fund comprises the accumulated surpluses of unrestricted income over expenditure, which is availa ble for use in furtherance of the general objectives of the charitable company, Designated funds are a particular form of unrestricted funds consisting of amounts, which have been allocated or designated for specific purposes by the trustees. The Use of designated funds remai ns at the dsscretion of the trustees. Restricted f unds are funds subject to specific cond itions imposed by donors. The purpose and use of the restricted funds are set out in the notes to the financial statements. Amounts unspent at the period end are carried forward in the balance sheet. 32
- CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY In the application of the charitable company's accou nting policies, the trustees are required to make Judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not read ily apparent from other sources. The estimates and underlying assumptions are based on historical experience arid other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. rievisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the Tevision and future periods if the revision affects both current and future peiiods. There were no specific judgements, estimates and assumptions that were critical to the preparation of these financial statements. 33
COOL EARTH ACTION NOTES TO THE FINANCIAL STATEMENTS (Continued) for the year ended 31 January 2026 3. DONATIONS AND LEGACIES Unrestrirted Funds Restri¢ted Funds TOTAL 2025 TOTAL 2026 Donations receivèd from individuals and on-line Ihrough the charity's web51te Other donations received from corporate and other similar supporters 1.397.824 806.761 2.204.S8S 2.173.829 513,563 376,943 890,506 1,200,931 Income from LegaceS Grants 36,449 36.449 250.000 520,514 25,176 545,490 1,093,32S Donations In kind.. Training Marketing 7.140 7.433 2,475.290 1.208,880 3.684.170 4.725.518 Tbe charity has been notified of its inclusion as a beneficiary in one estate5. At the year end, the amoLir)ts receivable from these esTates cannot be reliably quantifiecl. In accordar)ce with the charity'5 accounting policy that legacy income is only recognised when receipt is probat)le and the arnout Can be measured reliably, these legacies have not been included irTr tho current yeai's Income The legacies will be recognised in the accounts in the period when ttte recognirion criteriè are met. 4. OTHER TRADING ACTIVITIES Unrestricted Restricted Funds Funds TOTAL 2026 TOTAL 2025 Shop sales and other similar income 730 730 2,048 2,048 730 730 S. INVESTMENTS Unrestricted Restricted Funds Funds TOTAL 2026 TOTAL 2025 Bank interest receivable on short tèrm cash deposits 170,111 170,111 120,645 170.111 170111 120.645
COOL EARTH ACTION NOTES TO THE FINANCIAL STATEMENTS Icontinuedl for the year ended 31 lanuary 2026 6. RAISING FUNDS UnrÈstri¢ted Funds Restyietèd Funds TOTAL 2026 TOTAL 2025 Direct costs 213,571 356,728 213,5 356.728 143.358 369,265 Support costs- see note 9130%1 570.299 570,299 512,624 7. PROGRAMMES Unrestricted Funds Restricted Funds TOTAL 2026 TOTAL 2025 Direct costs Support costs- see note 8 8 9170%) 1,336,762 832,366 1,100.969 2,437,T31 832.366 2,S39.355 861,619 2,169,128 1,100,969 3,270,097 3,400.974 8. CHARITABLE ACTIVITY EXPENDITURE Activities undertaken dirertly 1,859,479 Crants Funding of Activities Support costs TOTAL Peru 634.921 2.494,400 PNG 383,974 131108 515.083 193,540 Cameroon CCREAD 144.277 49.263 Go Conscious Earth 50,000 17,073 67,0 2.243.454 194.277 832.366 3.270.097 35
COOL EARTH AcfioN NOTES TO THE FINANCIAL STATEMENTS (Continuedl for the year ended 31 January 2026 9. SUPPORT & GOVERNANCE Unrestricted Fund Restrieted TOTAL Funds 2026 TOTAL 2025 Governance Costs Support Costs Donations in kind.. Training costs 7,140 139.238 7,140 928.2SI 7,433 927,569 Staff costs115%1 rnote 10 Stèff recruitTrent, training and welfare 789,013 130%) 34,128 14,626 48.754 25,476 46.367 5,880 47,772 9,810 14,576 50.343 Travel and subsistence expenses115%1 Premises operating lease costs13W.I Other premises costs140%' Communications costs160%1 Other costs1S0%1 Legal and professional fees Il0%} Auditor's remuneration.. Audit fee IIOO%I Accountancy and advisory services 19,954 32.457 3,521 25.574 13.910 2,352 28,663 4,90b 1.458 42.814 3.528 19,109 6.025 72.057 4.90S 12.867 13,119 11,223 24.000 24,000 20,000 ooo%i Amortisarion12S%I Depreciation - owned assets |25%1 Exchange losses 12.518 6?5 12,518 33.439 1,875 2,269 2,500 10.933 756 3,025 4,36B 6.239 15,024 15,024 935,381 253,713 1.189.094 1,230.884 Support cost5 are allocated directly basèd on activity and thereafter using thè ratios, which are based on estimated 35sessed impact of the costs Involved. The percentage of costs allocated as governance is disclosed above where relevant. Support costs are currently split 30.70 between raising funds and programmes. 36
COOL EARTH AcfioN NOTES TO THE FINANCIAL STATEMENTS (Continued) for the year ended 31 January 2026 10. STAFF COSTS 2026 No. 2025 N The average monthly number of per50n5 employed by the charitable company (excluding trusteesl durin9 the year was, as follows. UKStaff 77 16 Overseas Siaff 20 UK Staff c05t5 Wagos Employers Nl Employers Pension Costs Contractors 737691 753.730 78,870 80,223 18,836 1.788 17.728 77,242 918.538 927.570 Over*as Staff Cosrs Employed staff costs Contractors 595,600 127.124 430,610 104,109 722,724 534.719 Toial StafF Costs 1.641,262 1,462.289 During the year, one employee earned total emoluments in the range £60,000 to 170.0001202412025.. one employee In the range £60.000 to E70,0001. Durin9 the year. one employee earned total emoldments in the r8ngÈ UID.000 to £120.0001202412025.' one employee in Ihe range EIIO.000 to £120,000). The highest paid èmployee Is part of the key management team. During the year. the total amount of employee benefits received by key managèment p&rsonnÈl for their sorvices to the charitable Company amounted ¢0 £418,28612024ll025.. ll29.5291. No trustee received any remuneration for service5 provided to the charity as a trustee during the current OT previous year. Qurin9 the year, tru5tee5' expenses reirnbursed totalled £4271202S.. £2391. These relèted to travel arnd subsistence costs incurred in connection with trustee dutie5. Included in statt costs are termination payments totèlling £51,19912025.'£nill. At the year-end no balance was outstanding. 37
COOL EARTH AcfioN NOTES TO THE FINANCIAL STATEMENTS (Continued) for the year ended 3Tr January 2026 Retirement benefit 5rh¢mes Defined contribution s¢hemes The chèrity operates a defined contribution pen510n scheme for 311 qualifying employees. The assets of the schernè are held separately from those of the charity in an indeper)dently administered fund. The charge 10 Income and expenditure in respect of the defined contribution scheme5 wa5 £18,604 IF5 £17,728) At the year end £4.309 contributions were ouistanding IFY25 £6,999? 11. INTANCIBLE ASSETS Website Cost.. 01 February 2025 142,065 Additions Disposals Saturday, January 31, 2026 125.2001 116,865 Amortisation". 01 February 2025 Charge for tho year Disposals 110.441 2.500 125,2001 31 January 2026 87.741 Net book value.. 31 January2026 29,124 31 January 2025 31.624 38
COOL EARTH AcfioN NOTES TO THE FINANCIAL STATEMENTS Icontinuedl for the year ended 31 January 2026 T2. TANGIBLE ASSETS Office & cornputeT equipment Cost. 01 Februèry2025 62.200 Additions 14,300 16,6821 69,818 Disposals 313anuary 2026 Depreciation.. 01 February 2025 Charg& for the year Disposal 59,370 3.025 16,6821 31 January 2026 55,711 Net book value.. 31 Januaiy 2026 14,107 31 January 2025 2,837 13. DEBTORS 2026 2025 Amounts falling due within one year.. Trade debtors 183,136 574.552 Other debtors 2,049 1,427 390.889 Piepayments and accrued income 1.047,017 1,232,202 966.868 39
COOL EARTH AcnoN NOTES TO THE FINANCIAL STATEMENTS (Contin uedl for the year ended 31 January 2026 14. CREDITORS 2026 2025 Amounts tslling due within onè yÈar. Trade creditor5 51.640 25,939 Other iaxation and social security C05t5 Other creditors 3.839 7.005 Accruals 56.379 26.738 111.861 59,682 15.TPIE FUNDS OF THE CHARITY Balance at 31 January 2025 Balan¢e at 37 January 2026 Income Expenditure Restricted income fund& Peru fund 200,OS3 99.579 1200,0531 199,S791 .9281 91,4501 1240,1531 167.6S61 1)69,4941 180.3551 ,6251 PNG fund Forest Research- PNG 25.176 17.248 Foresi F2esearch- Peru 91,450 240.153 170.209 169.494 80,3SS Cash Transfer Peru Cash Transfer PNC 102.553 Cocao- Peru Fish Farming- Peru Solar l ighting - )NC Unconditional Cash Transfers 52,410 4,785 281,7 80.000 n36,6751 11,100.9691 225,076 281.751 1,208,880 389,662 Unrestricted income funds.. General fund 5,966.845 2,646.131 I2.9.427} S.8,549 6.248.596 3,855,011 13,840.3961 6,21i3.211 The Peru fund was originally set up In 2009 10 conserve p.or less thar? 1,000 acres of endan9ered rÈinfore5t through Ihe hanirnka projÈ¢L in Peru and to piovide support to the local communities. The Peru restricte<J fund Is Slill io accouni for specific donation Income received for the benefit of Cool Earth's projects irn Peru and the relaied restricted expenditure. 40
COOL EARTH AcfioN NOTES TO THE FINANCIAL STATEMENTS (Continued) for the year ended 31 January 2026 The PNG wa5 originally set up In 2017 to account for specific donation income received for the benefit of Cool Earth's projects in Papua New Guinea IPNGI ènd the relètecl $tric[ed expenditure. The Forest fiÈsÈareh funds stjpport the organisation s Rainforest Labs projects that provide data. equipment and training to comrnunities that monitor and protect thÈir rainforest using rernore sÈnsing Cacao- Enabling small producèrs have the tools and ability to produce and commercialise Iheir cacao beans Fish Farming -Enabling Fish farmers have the tools and ability to produce fish to diversify protein intake and commercialise their fish carch for local market Solar Lighting - Providing reliable light sourco for housÈhold lighting. which creates a Safer communities The Unconclitional Cash Transfers funds support grants made to communitie5, federatitsns and Individu81s who protecr rainforest. Cash Tr3n5fer> alsc) kriown ès bridge funds are communal cash payments made directly to the leadership committees of communitie5 to acldre55 their need5 and priorities such as health, education. agriculture, etc The Unrestricted General Fund ensur programming work across the organi5ation and oper3tion5 can continue even in the eventuality of poor fundraisin9 performan¢È as outlined in the Reserves Policy. Balance at l February 2024 8alan¢• at 31 January 2025 In¢ome EKpendlture Restricted income funds: Peru fund 167.730 241,370 30.000 1167.7301 1241.3701 (2S8.0111 134.9751 1144,0001 1350,8521 1128.8671 13,7781 11,329,583) PNG fund Foresi Flesearch 228.011 Forest Research_ PNG 34,975 Forest Research- Peru 144,000 Unconditional Cèsh Tiansfers 632,604 48,867 281,751 Cash Transfer Peru 80,000 3,778 PNC WASH 909.481 701,853 281.751 Unrestricted income furnds". General fund 4.404,502 4.146.357 12,584,014) 5.966,845 5.313,983 4,848,211 13,913.5981 6.248,596 41
COOL EARTH ACTION NOTES TO THE FINANCIAL STATEMENTS (Continued) for the year ended 31 January 2026 16. ANALYSIS OF NAsSET5 BETWEEN FUNDS Fixed auets Current assets Current liabilities Total As at 31 January 202&. kestrtcted ineorne funds= ForesL fiesÈarch- PNC 17,248 102.553 44.785 17248 Cash Transfer PNC 102,553 44.785 225,076 Solar Ughting- PNG Unconditional Cash Transfers 225,076 Vnrestrieted income fund General fund 43.231 5,942.179 5.873.549 NET ASSETS 43.231 6,331,841 6.263,211 Fix•d assets Current a55gt5 Current liabiliti*s Total As at 31 January 2025: Restricted income funds: Uncondition31 Cash Transfers 281.752 281,752 Unrestrictsd income fund& Gpneral fund 34.455 S,992.071 159,6821 5,966,844 NET ASSETS 6,273.823 159.6821 6,248.596 42
COOL EARTH AcfioN NOTES TO THE FINANCIAL STATEMENTS Icontinuedl for the year ended 31 January 2026 17. RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPEAAfiNG ACTIVITIES 2026 2025 Net income for the reporting period 14,615 934,613 Adjustments for. Dividends, interest and rents from investments Amortisation charges Depreciation charges Loss on disposal of tangible fixed assets Ilncreaselldecrease in debtors Increaselldecre3sel in creditors 1170,1111 2,SOO 3,025 1120,6451 10,933 4,368 12653371 52,179 1,338,900 111.6171 Net cash provided by operating activities 1363,1291 2,156.552 18. ANALYSIS OF NET DEBT 2025 Cashflows 2026 Cash at bankand in hand 5.306.957 1207,3181 5,099.639 43
COOL EARTH AcnoN NOTES TO THE FINANCIAL STATEMENTS (Continued) for the year ended 31 January 2026 19, RELATED PARTY TRANSAcnoNS uring the current and previous year. the trustees provided donation5-in-kind to the charity by way of incurr.'ng expenses personally and not seeking reimbursement from the charity In respect of those expenses. These expenses have not been quanEified. The charity undertook the following tranCtionS with relared partie5 during the year.. Cool Earth VS Cool Earth US is a related chariw shoring common objectives. During the year, the charity mad& dOnatonS totalling £959,98212024125.' £1.080,5671 to Cool Earth Action. At Ihe ènd the balance of £983.982 was outstanding and included In debtors12024125., £nill Cool Earth Realisations Ltd During the 2023124 financial year a company under common control of Cool Earth was retired from the RegistÈr of Companiès whilst SLIII carrying a Cash balance. The amount of £2,224.071 w3s retrieved from the Treasury Solicitor at the Start of the 2024125 financ131 year and returned to reserves 20. AUDITOR LIABILITY LIMITATION AGREEMENT For the ye3r encled 31 January 2026. the charity entered into a liability Limitation agreement with its auditors. the pr£ncitial te.. ms of which limit the liability of the 3ud5tOTS to f.5million iri relation to their responsibilities a5 auditors of thè charity. The date this wa5 agrÈed by the charity was 13th August 2026.