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 groV￿h 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 V￿re 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 r￿Orded 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 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 N￿AsSET5 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 tran￿CtionS 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& dOnat￿onS 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.