THE GLOBAL WARMING POLICY FOUNDATION
TRUSTEES’ REPORT AND FINANCIAL STATEMENTS
YEAR ENDED 30 SEPTEMBER 2021
THE GLOBAL WARMING POLICY FOUNDATION
I N D E X
Year ended 30 September 2021
| Page | |
|---|---|
| General information | 2 |
| Chairman’s statement | 3 |
| Trustees’ annual report | 4 |
| Report of the Director | 6 |
| Independent examiner’s report | 8 |
| Statement of financial activities | 9 |
| Balance sheet | 10 |
| Notes to the financial statements | 11 |
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THE GLOBAL WARMING POLICY FOUNDATION
G E N E R A L I N F O R M A T I O N
Year ended 30 September 2021
| Charity Registration number | 1131448 |
|---|---|
| Company number | 06962749 |
| Directors and Trustees | Dr Jerome Booth (Chairman) (appointed Chairman 12 October 2021) |
| Mr Terence Mordaunt (resigned as Chairman 12 October 2021) | |
| Mr Steven Baker MP (appointed 6 July 2021) | |
| Professor Dr Peter Edwards FRS ML (appointed 26 April 2021) | |
| Dr Christopher Gibson-Smith CBE (resigned 6 July 2021) | |
| Mrs Kathryn Gyngell | |
| Professor Michael Kelly FRS FREng | |
| Dr Ruth Lea CBE (resigned 30 March 2021) | |
| The Lord Moore | |
| Graham Stringer MP | |
| The Lord Turnbull KCB CVO (resigned 31 January 2021) | |
| Professor Fritz Vahrenholt (appointed 18 January 2021) | |
| Baroness Nicholson of Winterbourne (resigned 13 April 2021) | |
| Honorary Treasurer | Martin Bralsford FCA |
| Honorary President | The Rt Hon The Lord Lawson |
| The Director | Dr Benny Peiser |
| Registered office | 55 Tufton Street |
| Westminster | |
| London | |
| SW1P 3QL | |
| Independent examiner | Suzanne Rose ACA CTA |
| Dixon Wilson | |
| 22 Chancery Lane | |
| London | |
| WC2A 1LS | |
| Bankers | Barclays Bank Plc |
| 1 Churchill Place | |
| London | |
| E14 5HP | |
| Legal advisers | Farrer & Co LLP |
| 66 Lincoln’s Inn Fields | |
| London | |
| WC2A 3LH | |
| Darbys Solicitors LLP | |
| 52 New Inn Hall Street | |
| Oxford | |
| OX1 2DN |
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THE GLOBAL WARMING POLICY FOUNDATION
C H A I R M A N ’ S S T A T E M E N T
Year ended 30 September 2021
I am pleased to present the report and accounts for the Global Warming Policy Foundation for the year 2020/2021.
During the year GWPF issued 14 publications on a wide variety of subjects relevant to the global warming debate. These were all of the normal, very high quality and extremely readable and all can now be found on the website.
On 21[st] May 2021, Steve Baker MP became a Trustee of GWPF and, along with Craig Mackinley, has formed a new parliamentary group called Net Zero Scrutiny which has an increasing membership of MPs who are deeply concerned about the potential huge cost of Net Zero and indeed, whether it is value for money.
We believe that this new grouping will become very relevant in the coming year.
We sadly received resignations from Ruth Lea, Christopher Gibson-Smith and Andrew Turnbull in 2021, but were joined by Professor Peter Edwards. Jerome Booth became a Member in January 2021.
I wish to thank all the staff of GWPF, in particular Benny Peiser, for their hard work throughout the year. I would also wish to thank all our donors who make our work possible and whose anonymity we continue to uphold in accordance with our Memorandum & Articles and their wishes.
Since the year end, I have stepped down from the position of Chairman as I am approaching my 75[th] birthday. I am delighted to say that Jerome Booth has taken over and I have every confidence he will do an excellent job and is considerably younger. I shall remain a Trustee of GWPF and will continue to support them both morally and financially.
MR TERENCE MORDAUNT Chairman
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THE GLOBAL WARMING POLICY FOUNDATION
T R U S T E E S ’ A N N U A L R E P O R T
Year ended 30 September 2021
Creation
The Global Warming Policy Foundation (“the Foundation”) was incorporated as a company limited by guarantee with no share capital. The Foundation is registered as a charity under reference 1131448. Details of company number and registered office are set out on page 2.
Governing instrument
The governing instruments are the Memorandum and Articles of Association.
Objects
The Global Warming Policy Foundation is an educational charity. Its main purpose is to advance the public understanding of global warming and of its possible consequences, and also of the measures taken or proposed to be taken in response to such warming.
Public benefit
The Trustees, having regard to the Public Benefit guidance published by the Charity Commission in accordance with section 4 of the Charities Act 2006, consider that the purpose and activities of the Foundation satisfy the requirements of the public benefit test set out in section 3 of the same act.
Protocol for the Acceptance of Gifts
The Trustees are satisfied that the self-denying ordinance contained in the Protocol for the Acceptance of Gifts laid down at the first meeting of the Board of Trustees to ensure the Foundation’s independence from energy interests is being strictly observed.
Directors and Trustees
The names of the directors who have served during the year are set out on page 2.
The directors of the charitable company (the charity) are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees.
The Trustees have control of the property and funds of the charity. The subscribers to the Memorandum, being Graham Stringer MP, Lord Turnbull (resigned January 2021), Mr Terence Mordaunt, Dr Ruth Lea (appointed December 2020, resigned March 2021) and Dr Jerome Booth (appointed January 2021), may serve as Trustees indefinitely. There should be at least three and not more than fourteen Trustees other than the founder. Trustees shall hold office for a period of three years, but may be reappointed Trustee, provided that they do not act for more than two consecutive terms of office without the prior written consent of the Chairman. Trustees may be appointed by ordinary resolution of the members.
At least three Trustee meetings must be held each year, during which a quorum is at least two Trustees (or 50% of the members if greater).
Organisational structure
The Foundation has established a Remuneration Committee to oversee matters concerning employees and salaries. The members of the Remuneration Committee being Lord Turnbull (resigned January 2021), Graham Stringer MP and Mr Terence Mordaunt.
Recommendations are put forward to the Trustees at Trustee meetings.
Risk
The Trustees have formally considered the major risks to which the charity is exposed. These will be regularly monitored and all necessary steps taken to mitigate them.
The Trustees have reviewed the impact of Covid-19 on future activities and do not anticipate any significant impact.
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THE GLOBAL WARMING POLICY FOUNDATION
T R U S T E E S ’ A N N U A L R E P O R T ( c o n t i n u e d )
Year ended 30 September 2021
Reserves
In line with the guidance issued by the Charity Commission, the Trustees have reviewed the need for reserves. The Trustees seek to apply all income in pursuance of the stated objects of the Fund as soon as is reasonably prudent, but are conscious that until the ongoing level of donations and subscriptions is known, sufficient reserves will be maintained to cover at least one year’s anticipated expenditure.
The Trustees monitor the level of reserves held at each Trustees meeting.
Connected charities
There are no connected charities.
Financial review
During the year income totalled £387,485 (2020 - £374,333), as set out on page 9.
In accordance with the reserves policy stated above, reserves of unrestricted income funds amounting to £889,561 (2020 - £781,946) are being held until required.
Financial statements
Accounts are set out on pages 9 to 14. They have been drawn up in compliance with the Companies Act 2006 the relevant provisions of the Charities Act 2011 and the recommendations of the revised Statement of Recommended Practice: Accounting and Reporting by Charities (FRS 102), issued by the Charity Commissioner for England and Wales (SORP FRS 102 - effective 1 January 2019).
Audit exemption and special provisions
The Trustees have taken advantage of the exemption from audit conferred by Section 477 of the Companies Act 2006 and the accounts for the year are unaudited.
This report is prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP FRS 102 - effective 1 January 2019) and the provisions applicable to companies subject to the small companies regime in Part 15 of the Companies Act 2006.
On behalf of the Trustees
MR TERENCE MORDAUNT Chairman 11 January 2022
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THE GLOBAL WARMING POLICY FOUNDATION
R E P O R T O F T H E D I R E C T O R
Year ended 30 September 2021
The Global Warming Policy Foundation (GWPF) is committed to providing a platform for educational research and informed debates on how best to enhance human wellbeing and protect the environment.
We promote a culture of debate, respect, and a hunger for knowledge, helping to raise standards in learning and understanding through rigorous research and analysis, fostering a balanced debate amongst the interested public and decision-makers.
The United Kingdom entered a new era of independence after it completed its formal separation from the European Union at the end of 2020. The UK stopped following EU rules as a new trade and cooperation arrangement with the EU came into force on 1 January. As the UK seeks to redefine its international role after Brexit, the Net Zero agenda and climate diplomacy in the run-up to COP26 took centre stage in 2021.
During the last 12 months there has been mounting public concern about the huge costs of the government's Net Zero plans. Columnists, journalists and MPs have been raising a long list of economic concerns over the government's Net Zero plan and its technological hurdles. This welcome scrutiny signals a new phase in the climate and energy policy debates.
Rising energy costs and the rise in the cost of living have triggered a wave of questions surrounding the costs of Net Zero and who will bear the burden. While Steve Baker MP joined the GWPF board of Trustees, Craig Mackinlay MP has set up a group of 40+ MPs dedicated to scrutinising Net Zero and its costs.
2021 has also been overshadowed by a deepening energy crisis in the UK and Europe, the controversy over Boris Johnson's gas boiler ban and the launch of the parliamentary Net Zero Scrutiny Group. Having banned fracking in much of Europe and with low wind speeds compounding Europe’s energy crisis, gas prices in the UK and much of Europe have been rising rapidly.
As the rising costs of Net Zero plans are becoming more evident millions of ordinary Britons are beginning to worry that they won't be able to afford to decarbonise their homes. The clash between economic recovery, levelling up and the Net Zero agenda became evident with the government’s rejection of the Cumbrian mining project and the deepening steel crisis, with 5000 jobs at risk. Energy-intensive industries now face an existential threat as the Net Zero agenda continues to drive energy prices upwards.
As the public debate about the cost of Net Zero has intensified, the GWPF has published a number of papers that review and assess plans to decarbonise the economy by 2050. These publications discuss the scope of the changes that will be required for full decarbonisation, looking at the energy required to run the economy, and the resources required to do so without conventional energy infrastructure.
An up-to-date review of the cost of new offshore wind farms in UK waters. It reviewed the accounts of the UK’s offshore wind fleet and found little if any sign of cost reductions.
Among 14 new papers published in 2021, a series of our publications reviewed global weather and climate data based on observational data. Our annual 'State of the Climate report', written by Professor Ole Humlum, documented a wide range of temperature and weather data, as well as records on sea-level, storms and ice and snow cover.
Another annual GWPF report reviews extreme weather trends around the world. The report, written by physicist Dr Ralph Alexander, looked at the empirical data and also how extreme weather has been reported by others and the media. Our data-driven report provides valuable perspective on the common narrative of climate doom and gloom. By focusing on observational data these reports provide the most reliable data in the context of long-term trends which allows readers to make informed judgements.
The GWPF introduced a new review process of its reports. While all draft reports are reviewed by our Academic Advisory Council, we also invite external reviews from parties who we would expect to take a different view to the publication’s author. We offer to publish any substantive comments alongside the main paper, provided we are satisfied they will enhance the educational experience of the reader. In this way, we aim to encourage open and active debate on the important areas in which we work.
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THE GLOBAL WARMING POLICY FOUNDATION
R E P O R T O F T H E D I R E C T O R
Year ended 30 September 2021
In August, the Information Tribunal has ordered the Committee on Climate Change (CCC) to publish the calculations behind its claim that the UK economy can be decarbonised at modest cost. The ruling, which dismisses almost all of the CCC’s arguments, came after a two-year battle by GWPF deputy director Andrew Montford to obtain the cost calculations. The data sets finally published by the CCC revealed that its claim that Net Zero would be low cost were based on grossly optimistic assumptions about the costs of renewable energy and electric vehicles.
With mounting concern about the cost of Net Zero the Global Warming Policy Forum published a realistic alternative that reduces CO2 emissions without inflicting astronomical costs on consumers. The proposal envisages a Gas to Gas-Nuclear system, delivering immediate consumer relief and a rapid program of low-carbon Combined Cycle Gas Turbine construction on existing sites, leading to a new generation of nuclear employing Small Modular Reactors.
Steve Baker MP and Professor Peter Edwards FRS joined the Board of Trustees while Ruth Lea, Christopher Gibson-Smith and Andrew Turnbull retired from the board. Prof Peter Dobson OBE and Prof Ray Bates joined the Academic Advisory Council. The 2020 Annual GWPF Lecture was delivered by Professor Frank Furedi. The 2021 Annual GWPF Lecture will be delivered by Professor Steven E. Koonin, former Under Secretary for Science at the US Department of Energy.
DR BENNY PEISER Director 13 December 2021
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THE GLOBAL WARMING POLICY FOUNDATION
I N D E P E N D E N T E X A M I N E R ’ S R E P O R T
Year ended 30 September 2021
INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE GLOBAL WARMING POLICY FOUNDATION
I report to the Trustees on my examination of the accounts of the Company for the year ended 30 September 2021.
Responsibilities and basis of report
As the charity Trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’). You are satisfied that an audit is not required for this year under charity or company law and that an independent examination is needed.
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by The Charity Commission under section 145(5)(b) of the 2011 Act.
An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters than an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently I express no opinion as to whether the accounts present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement.
Independent examiner’s statement
I am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants in England and Wales.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or
-
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
SUZANNE ROSE ACA CTA Dixon Wilson 22 Chancery Lane London WC2A 1LS
24 June 2022
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THE GLOBAL WARMING POLICY FOUNDATION
S T A T E M E N T O F F I N A N C I A L A C T I V I T I E S
Year ended 30 September 2021
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| Funds | Funds | ||
| Note | 2021 | 2020 | |
| £ | £ | ||
| Income and endowments from: | |||
| Donations and legacies – membership fees | 8,627 | 11,058 | |
| Donations and legacies – donations | 377,242 | 360,284 | |
| Investment income – interest receivable | 1,616 |
2,991 |
|
| Total income and endowments | 387,485 |
374,333 |
|
| Expenditure on: | |||
| Raising funds | 3 | 27,594 | 50,808 |
| Charitable activities | 4 | 252,276 |
313,428 |
| Total expenditure | 279,870 |
364,236 |
|
| Net income | 107,615 |
10,097 |
|
| Net movement in funds for the year | 107,615 | 10,097 | |
| Total funds brought forward | 781,946 |
771,849 |
|
| Total funds carried forward | 889,561 |
781,946 |
All amounts are in respect of continuing operations.
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Company number: 06962749
THE GLOBAL WARMING POLICY FOUNDATION
B A L A N C E S H E E T
At 30 September 2021
| Note Fixed assets Tangible fixed assets 5 Investments 6 Current assets Debtors 7 Cash at bank and in hand Creditors: amounts falling due within one year Other creditors Accrued expenses and deferred income 8 Net current assets Total net assets Represented by: Unrestricted funds |
2021 £ 3,708 - 3,708 43,467 865,815 909,282 16,631 6,798 23,429 885,853 889,561 889,561 |
2020 £ 1,588 - |
|---|---|---|
| 1,588 |
||
| 45,167 770,561 |
||
| 815,728 |
||
| 24,337 11,033 |
||
| 35,370 |
||
| 780,358 |
||
| 781,946 |
||
| 781,946 |
Trustees’ statement
For the year ended 30 September 2021, the Foundation was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the Foundation to obtain an audit of its accounts for the year in question in accordance with section 476.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime in Part 15 of the Companies Act 2006.
The financial statements on pages 9 to 14 were approved by the Trustees on 11 January 2022 and signed on their behalf by:
MR TERENCE MORDAUNT Chairman
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THE GLOBAL WARMING POLICY FOUNDATION
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
Year ended 30 September 2021
1. General information
The Global Warming Policy Foundation is a company limited by guarantee with no share capital incorporated in England and Wales. The address of the registered office is:
55 Tufton Street Westminster London SW1P 3QL
2. Accounting policies
Basis of preparation and assessment of going concern
The financial statements have been prepared in accordance with applicable accounting standards, the Statement of Recommended Practice “Accounting and reporting Charities” applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (SORP FRS 102) (effective 1 January 2019) and the Charities Act 2011. The particular accounting policies adopted are described below.
The Foundation constitutes a public benefit entity as defined by FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.
The Trustees consider that there are no material uncertainties about the Foundation’s ability to continue as a going concern.
The financial statements are presented in Sterling which is the financial currency of the Foundation and rounded to the nearest £.
The Foundation was entitled to exemption from the requirement to prepare group accounts under section 399 of the Companies Act 2006 relating to small companies and the Charities Act 2011.
Cash flow
The financial statements do not include a cash flow statement because the charity, as a small reporting entity, is exempt from the requirement to prepare such a statement under FRS 102.
Income
Membership fees are recognised in the Statement of Financial Activities in the period or periods to which they relate. Deferred income relates to annual membership fee not related to the period.
All donations are recognised when the Foundation has entitlement to the income, it is probable that the donation will be received, and the amount of donation can be measured reliably.
Interest receivable is recognised in the period to which it relates.
Expenditure and liabilities
Liabilities are recognised as soon as there is a legal or constructive obligation committing the Foundation to the expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis, and is inclusive of irrecoverable VAT.
Direct charitable expenditure
Direct charitable expenditure includes all expenditure incurred in pursuance of the Charity’s objective and relate to expenditure made under the Charity’s criteria.
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THE GLOBAL WARMING POLICY FOUNDATION
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
Year ended 30 September 2021
2. Accounting policies (continued)
Tangible assets
Tangible assets are stated at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is charged so as to write off the cost of assets over their estimated useful lives as follows:
Asset class
Depreciation method and rate
Fixtures and fittings 20% straight line Computer equipment 33.33% straight line
Subsidiary undertakings
Unlisted investments are included at cost less impairment.
| 3. Raising funds Fundraising consultancy fees |
2021 £ 27,594 |
2020 £ 50,808 |
|---|---|---|
| 4. Charitable activities Publications, publicity and printing Wages and salaries Office costs Other support costs Depreciation Accountancy fees relating to independent examination The average number of employees during the year was four (2020 - four). Analysis of other support costs Accountancy fees Legal fees Research costs Other professional fees Website costs Subscriptions Bank charges |
2021 £ 20,531 179,169 20,928 28,673 1,475 1,500 252,276 2021 £ 8,277 4,394 - - 7,653 8,131 218 28,673 |
2020 £ 82,708 174,573 22,697 30,300 1,650 1,500 313,428 2020 £ 7,184 3,346 5,370 1,200 7,100 5,719 381 30,300 |
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THE GLOBAL WARMING POLICY FOUNDATION
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
Year ended 30 September 2021
| 5. Tangible fixed assets Fixtures & Computer fittings equipment £ £ Cost At 1 October 2020 3,233 16,243 Additions 900 2,695 At 30 September 2021 4,133 18,938 Depreciation At 1 October 2020 2,913 14,975 Charge for the year 308 1,167 At 30 September 2021 3,221 16,142 Net book value At 30 September 2021 912 2,796 At 30 September 2020 320 1,268 |
Total £ 19,476 3,595 23,071 17,888 1,475 19,363 3,708 1,588 |
|---|---|
6. Investments
The Global Warming Policy Forum, a company limited by guarantee, is a wholly owned subsidiary of the Foundation. The registered office address is 55 Tufton Street, Westminster, London SW1P 3QL. During the year, the Global Warming Policy Forum recorded a loss of £46,789 (2020 - loss of £30,873) and had net assets of £130,438 at 30 September 2021 (2020 - £177,228).
| 7. Debtors Other debtors Prepayments and accrued income |
2021 £ 38,616 4,851 43,467 |
2020 £ 40,873 4,294 |
|---|---|---|
| 45,167 |
||
| 2020 £ 7,412 3,621 11,033 |
||
| 8. Accrued expenses and deferred income Accruals Deferred income |
2021 £ 3,810 2,988 6,798 |
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THE GLOBAL WARMING POLICY FOUNDATION
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
Year ended 30 September 2021
9. Trustees
Trustees are not remunerated and there have been no trustee expenses.
10. Related party
During the year, The Global Warming Policy Foundation incurred expenses of £148,429 (2020 - £142,092) on behalf of its subsidiary, The Global Warming Policy Forum, and received payments of £150,568 (2020 - £147,236). At the balance sheet date, the amount due from The Global Warming Policy Forum was £33,616 (2020 - £35,755) and is included in other debtors. The amount due is unsecured, interest free and repayable on demand. The fully allocated shared expenses are closely monitored, invoiced to The Global Warming Policy Forum at the end of each quarter and promptly settled thereafter.
11. Tax
The company does not have any taxable sources of income and is therefore tax exempt.
12. Guarantees and other financial commitments
Operating lease commitments
As at 30 September 2021 the company had total commitments under non-cancellable operating leases as follows:
| Operating leases which expire: | 30 | 30 |
|---|---|---|
| September | September | |
| 2021 | 2020 | |
| £ | £ | |
| Within one year | 4,848 | - |
| Within two and five years | - | 38,238 |
Total lease payments included in the Statement of Financial Activities in the year were £12,521 (2020 - £12,521).
13. Control
The company is controlled by its Trustees.
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