2021-03-31-accounts

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Impact Report and Financial Statements 2020-21

UKGBC Limited Company Registration Number 01029239 | Charity Registration Number 1135153

UKGBC[|]

Foreword

It will come as no surprise that looking back over the past financial year fills me with a combination of incredulity and relief. Having started the year in a state of crisis management, we ended it in rapid growth mode having onboarded over 100 new members, 7 new colleagues and achieved outstanding results across every aspect of our annual plan. We prioritised outreach and support to our members during this challenging time, alongside the wellbeing of our staff whose resilience and creativity were exceptional.

an unprecedented scale. Our advocacy work with both businesses and government has shifted up several gears, and the reach and breadth of partners collaborating across our programmes has followed suit.

As the scale of UKGBC’s activities has increased, so has our scrutiny of the outcomes and impact of our work. Over the year, we refined the fundamental levers of change that we believe we can contribute to and we sought feedback from members and stakeholders across all of these:

Ambitious corporate commitments
Knowledge, skills and competencies
Transformational leadership
Best practice and solutions
Innovation
Collaboration and partnerships
Progressive national and local policies
Strong standards across major projects

Far from downgrading the critical importance of sustainability, the global pandemic accelerated its pertinence and urgency in ways we wouldn’t have dared to predict. Indeed, the year’s extraordinary events catapulted issues of health, social inequality, diversity, climate change, nature and biodiversity, and quality of life even more firmly into the spotlight. As a result, we are now seeing a quickening pace of change in the way that business, government, finance, and even communities perceive such priorities, and their own role in addressing them.

UKGBC’s mission has never been more widely understood or accepted. Consequently, our role has shifted dramatically - from making the case for a better built environment, to convening organisations and institutions together to deliver action quickly and collaboratively on

As a result, this report includes richer data sets from our member impact survey and programme evaluation surveys across all these levers of change. We hope to continue evolving our approach to setting and evaluating meaningful outcomes from our diverse portfolio of activities going forwards.

As we look ahead to COP26 and beyond, there is no doubt that we need to capitalise on the unstoppable momentum around net zero carbon and accelerate our efforts to scale up meaningful action.

Julie Hirigoyen

Chief Executive, UK Green Building Council

UKGBC[|] Introduction[|]

Picturing a year of lockdown

UKGBC’s annual Impact Report usually features photographs of our membership community from the diverse mix of physical events we put on every year. But with the pandemic pushing all our events online, this year we’ve had to think outside the box.

The impact of lockdown has forced all of us to seek comfort, solace and wellbeing in new places. With this in mind, we have asked each of the team at UKGBC to supply a photograph of a place has meant something to them over the past year. We hope this proves an uplifting way to experience the report and meet the team behind much of the impact that it contains.

UKGBC[|]

Together for a better built environment

INTRODUCTION

| 8 | | 9 |

About UKGBC Theory of change

10 12

THE YEAR AT A GLANCE

IMPACT INSIGHTS

Business | 12 | Government | 22 |

IMPACT AREAS

Climate change: Mitigation | 26 | Climate Resilience; Nature and Biodiversity | 30 | Resource Use | 32 | Socio-economic Impact | 34 | Health and Wellbeing | 38 |

OUR IMPACTS AND THE YEAR AHEAD

Addressing UKGBC’s Impacts | 40 |

PROGRAMME AND PROJECT PARTNERS FY20-21

REPORTS

| 47 |

Trustees’ report

FINANCIAL STATEMENTS

Statement of financial activities | 62 | Balance sheet | 63 | Statement of cash flows | 64 | Principal accounting policies | 65 | Notes to the financial statements | 70 |

UKGBC[|] Introduction[|]

Introduction

About UKGBC

The UK Green Building Council (UKGBC) is an industry-led network with a mission to radically improve the sustainability of the built environment. A charity with over 550 member organisations spanning the entire value chain, we represent the voice of the industry’s current and future leaders who are striving for transformational change.

Our vision is a built environment that enables people and planet to thrive by:

Our charitable objectives are:

To increase the sustainability of the built environment by improving the way it is planned, designed, constructed, maintained, operated, modified and replaced (“Improving sustainability”) *

Mitigating and adapting to climate change
Eliminating waste and maximising resource efficiency
To advance the education of the public in the sustainability, conservation, protection and improvement of the built environment (“Education”) *

Embracing and restoring nature and promoting biodiversity

Optimising the health and wellbeing of people
To promote the sustainability, conservation, protection and improvement of the built environment (“Raising awareness”) *

Creating long-term value for society and improving quality of life

* These are the charitable activities as defined within the Financial Statements accompanying this report.

Theory of Change

Our Theory of Change visualises how UKGBC affects change on sustainability in the built environment. At UKGBC, we collaborate to advocate, enable and inspire accelerated leadership and action, primarily by business and government, on climate change, resource use, nature & biodiversity, health & wellbeing and socio-economic impact.

WE COLLABORATE by convening diverse built environment organisations to engage in a common purpose

WE ENABLE by developing guidance, showcasing solutions and stimulating innovation

WE ADVOCATE by calling for ambitious commitments, stronger standards and progressive policy

WE INSPIRE by sharing knowledge and best practice, and encouraging transformational leadership

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UKGBC[|] The year at a glance[|]

Year at a glance

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2020/21 2019/20 2018/19 Learning & development Events 2020/21 2019/20 2018/19
9 139 4 566 40 2 673
, , ,
6,156 7,107 3,288 2,814 54 58 1,622 1,342
Hours of learning delivered Course participants Events Individuals took part in events
70 79% 152K 52K
43 48 82% 83% 124K 79K 24K 5K
Learning interventions Participant satisfaction rating Website users Downloads of all reports/tools
4 956 213 43 943
,
4,040 3,744 131 95 35 33 782 195
Active member contacts Opportunities for members Press releases Media mentions
to engage in UKGBC activities
542 68% 42K 16K
430 397 68% 64% 41K 39K 10K 4K
Members Of member orgs that actively Twitter followers LinkedIn followers
took part in UKGBC activities
2020/21 2019/20 2018/19 Communications 2020/21 2019/20 2018/19
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Membership

the number of events (40) excludes all L&D courses, webinars and leadership programmes and task groups / forums. *Adjusted to remove 1 story syndicated in 322 places.

UKGBC[|] Impact insights[|]

Impact insights

BUSINESS

Driving up ambitious corporate commitments

Central to UKGBC’s theory of change is the critical role that we play in advocating for more ambitious commitments from businesses in the built environment sector. Since 2016, we have tracked the commitments of our Gold Leaf members annually through the Sustainability 360 Review process. Our intention in doing so is to encourage a ratcheting up of ambition amongst these firms that aspire to sustainability leadership across all five of our key impact areas.

To support signatories to the NZCB Commitment, UKGBC convened quarterly meetings for these firms throughout 2020/21, providing a collaborative environment to actively create, promote and share solutions on how to deliver net zero buildings at scale.

“We made the Net Zero Buildings Commitment as part of the launch of our new operational climate strategy earlier this year. The robust

We also called on all our members to sign up to the WorldGBC Net Zero Carbon Buildings (NZCB) Commitment, trebling the number of UK signatories in just the past year alone. The cornerstone of this is a pledge that all building areas under their direct control will be et zero carbon in operation by 2030 – so driving up market demand for net zero buildings.

framework and stretching objectives of the Commitment were fully aligned with our goal to achieve net zero operations by 2030, and helps us to demonstrate our ambition towards climate leadership in this area. The Commitment Forum has provided us with the opportunity to collaborate with like-minded organisations to tackle some of the challenges of delivering net zero buildings.”

Signatories to the WorldGBC Net Zero Carbon Buildings Commitment are operating in the UK

Olivia Cropper, Senior Manager Sustainability, Property Design, Lloyds Banking Group

Gold Leaf member commitments:

89%

38%

Have set a third party verified Science Based Target

Are in the UNFCCC-backed Race to Zero

Have a corporate commitment to climate action (77% at the whole business level)

40%

44%

Commit to zero waste to landfill

Are signed up to the WorldGBC Net Zero Carbon Buildings Commitment

Commit to the TCFD recommendations

26%

94%

96%

Commit to Biodiversity Net Gain

Commit to improving health & wellbeing

Commit to increasing social value contributions

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40
UKGBC members
profiled on the Climate
Commitment Platform
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Holly Campbell – Bromley by Bow

Alex Smith – Chazey Wood

UKGBC[|] Impact insights[|]

Co-creating guidance and sharing best practices

UKGBC plays a critical role in convening built environment businesses to share knowledge and accelerate learning while scaling up the adoption of best practices.

Work across all five of UKGBC’s impact areas brought together hundreds of stakeholders, from the property and construction industry and beyond, to co-create and adopt new guidance, and to share insights and lessons learnt from implementing it. In addition, our member forums (including Members Advisory Group, contractors, infrastructure and university research forums) convened meetings for special interest groups to find new collaborative ways of overcoming the common sustainability challenges they each face.

Percentage of respondents who consider UKGBC outputs supportive or highly supportive in their organisation’s sustainability efforts:

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84% 63%
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Guidance and toolkits

Best practice case studies

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68% 67%
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Data and evidence Viable sustainable solutions

“The members advisory group met on a quarterly basis throughout 2020 and allowed members to provide strategic advice, insight and support the UKGBC through what was an incredibly challenging year. As a member of the group, I continue to be hugely impressed with the transparency and accountability in which the UKGBC operates, and their clear desire to fully represent their members.”

Julie Townsend,

Executive Director, Head of Environmental Consultancy, CBRE

Fostering collaboration and partnerships

We are repeatedly told that UKGBC’s breadth of membership and extensive stakeholder network provides it with unique convening power that is essential to breaking down siloed ways of thinking in our otherwise fragmented and risk averse industry. Everything we do is therefore geared towards convening our members and partners together – to achieve industry consensus on what good looks like and how to achieve it.

Percentage of respondents who believe UKGBC membership has enabled or highly enabled them to:

77% 53% 56% Gain valuable insights from across Make new contacts and Collaborate with others to advance the built environment value chain extend their network their sustainability journey

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24% 16%
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Enter into commercial partnerships Encounter start-ups or entrepreneurs who have with organisations that share their come up with an innovative idea or solution to sustainability goals overcome sustainable built environment challenges

Munish Datta – Trumpington Meadows Wildlife Reserve

UKGBC[|] Impact insights[|]

Showcasing solutions and innovation

Through our work showcasing solutions and innovation, UKGBC aims to:

Identify and share high-quality, innovative and commercially viable sustainability solutions

Enable a culture of Help innovative start-ups innovation and collaboration to scale

In 2020, UKGBC established a new proactive and collaborative process for identifying and disseminating solutions to overcome shared sustainability challenges. To inform the development of this process, we launched two pilot challenges centred on making existing buildings net zero carbon in operation - using a publicly accessible, web-based, ideation and innovation management platform. The solutions received in response to these challenges ranged from technologies to business models and financing solutions – a shortlist of which were then published in an Innovation Insights report.

The next stage of our work launches in June 2021, as we create ongoing opportunities for innovators to share ideas and collaborate, and also create an online and ever-expanding ‘library’ of innovations and solutions hosted on the UKGBC website.

“UKGBC is in a unique position to bring together a diverse range of stakeholders to maximise the potential of innovative solutions and the crosspollination of ideas. We need to come together, collaborate, and use all of our collective resources to their full potential: intellectual, creative, mental, emotional, and physical. Speed is of the essence and this work helps us identify solutions as quickly as possible and communicate these effectively to the wider industry.”

Members in the innovative

start-up category (8 previous year)

88%

Of UKGBC members state ‘identification of solutions/pathways/ frameworks to accelerate sustainable outcomes’ as a primary reason for being a member

Lorna Walker, Cofounder, COO and Head of ESG at Modomo, and a UKGBC Trustee

Julie Hirigoyen – Hampshire

UKGBC[|] Impact insights[|]

Equipping professionals with knowledge, skills and competencies

As the Covid-19 lockdowns were first imposed at the turn of the last FY, UKGBC pivoted its entire learning portfolio for 2020/21 to a virtual environment, as well as introducing a number of new offerings.

The programme was a great way for those new to sustainability to get to grips with key concepts and explore them in depth through the use of global good practice sharing. The opportunity to explore and connect to different approaches from around the world was a key highlight.

The newly designed Global Green Building course ran three times through the year, with over a 100 participants across over a dozen countries taking part, as well as a broad range of UKGBC members.

We also launched the UKGBC resource packs across our 5 impact areas and the social value coursemail in 2020 and Health and Wellbeing in 2021, which were both very well received.

“I would encourage anyone interested in built environment sustainability to sign up for these courses as they are a very easy and enjoyable way to learn. It breaks up the working day without forcing you to spend too much time studying and you come away feeling like you understand the topic.”

Have a corporate commitment to climate action (77% at the whole business level)

2,994

L&D participants

5,378

Stephen Alexander, Sustainability Graduate, BRE

L&D learning hours

46% 65%

Lunch and learn sessions for members

Of UKGBC members state ‘equipping staff with the skills and knowledge to thrive in the future’ as a primary reason for being a member

Of members said UKGBC had been supportive or very supportive to their team in developing the knowledge, skills and competencies required to achieve more sustainable outcomes

Emily Huynh – Greenwich

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UKGBC worked in partnership with Property 2021 suggested a substantial increase in climate
Week to support extensive coverage and awareness amongst readers over the year. It also
commentary throughout the first year of its suggested significant investment in skills and
‘Climate Crisis Challenge’ campaign, whose capabilities in sustainability and climate action
perception survey carried out in both 2020 and during the pandemic.
+40% 70% 56%
Respondents in 2021 compared Of respondents claiming their Of respondents stating they feel
to 2020 business has a strategy to tackle equipped to tackle the climate crisis
the climate crisis (60% in 2020) (47% in 2020)
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UKGBC[|] Impact insights[|]

Activating transformational leadership

Cultivating transformational leadership by individuals working in the industry is also critical to UKGBC’s theory of change. Over the past year, we doubled up on our efforts to activate sustainability leadership at varying levels of seniority and experience within the sector, including piloting Recalibrate, a brand new programme for C-suite Executives.

We continued to bring insights and support to our exclusive Leaders Network, with highlights including a focus on Task Force on Climate-related Financial Disclosures, and an exceptional virtual event to facilitate networking and a focus on mindsets and behaviour changes required for net zero, at the end of March 2021.

Finally, our Future Leadership Forum increased from 60 to 107 actively engaged alumni from our various leadership programmes held over the past five years for whom we ran a number of events and facilitated a practical visioning project for them to engage collaboratively towards tangible outcomes.

“The [Recalibrate] programme allowed me to explore ideas, obtain greater understanding and clarity and find a way of transforming my ideas on creating change through a clear purpose. The programme was practical, supportive and confidence building. The work undertaken by Elfrida and the team made sure that the content was relevant and insightful and I would strongly recommend this course for leaders looking to make a difference.”

Peter Anderson,

Managing Partner, TB+A

80+

Individuals starting or completing one of UKGBC’s 3 leadership programmes

71/100

Average score from Change Accelerator delegates asked to rate the influence the programme had on their ability to affect organisational change

170+

C-suite executives on our Leaders Network

83/100

Average score from Recalibrate delegates asked to rate the extent to which the programme supported them to drive transformative change in their business

75%

Of members said UKGBC had been successful or very successful at inspiring leaders to drive transformational change

Joanne Wheeler – North Devon

UKGBC[|] Impact insights[|]

GOVERNMENT

Influencing progressive national policies

Influencing national policy remains as critical to our mission as ever and this year Covid-19 reminded us of the power of government to address a crisis. In fact, almost as soon as the pandemic took hold, the concept of ‘building back better’ and specifically a green recovery went to the top of the political agenda.

UKGBC strongly supported this advocacy, focusing on the need for a national home retrofit strategy and the potential for new green jobs. The Green Homes Grant scheme that was subsequently launched appeared to hold promise, but fell victim to poor implementation and lack of ongoing support from HMT in what was ultimately a major disappointment.

Despite that setback, the rhetoric from Government remains strong, with the PM’s 10-point plan for a green industrial revolution

and an ambitious new carbon reduction target published ahead of COP26. Although we spent a lot of the year waiting for a heat and buildings strategy, there was no shortage of crucial policy on which to engage, including Future Homes and Buildings Standards, energy efficiency in commercial buildings, major planning reform and the Environment Bill.

Our profile is as high as it ever has been at Westminster – despite the obvious face-to-face challenges – with an abundance of key meetings, and prominent campaigning with both traditional and social media, and joint letters in collaboration with other NGOs.

Anna Hollyman – Camber Sands

“I think your policy updates are brilliant – always plenty of interest in them, well written and clear action points. Very useful.”

Jason Beedell, Director, Research, Strutt & Parker

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2021 2020 2019
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How successful has UKGBC
been at influencing national 0 1 2 3 4 5
government policy?
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116

Meetings with Westminster targets Paying members involved in national National consultations or inquiries (52 previous year) policy work (73 previous year) responded to

UKGBC[|] Impact insights[|]

Supporting local policy-making and leadership

The role of cities and local authorities in driving a sustainable built environment continues to grow in importance for our mission. Over the course of the year UKGBC delivered a number of valuable guides for local authorities and facilitated collaboration, shared learning and common resources between them.

70+

Local and combined authorities engaged with our cities projects

Hitting both climate and housebuilding targets is a challenge for most local authorities. In January 2021, we produced an updated policy playbook and interactive policy map to help all cities and local authorities drive up the sustainability of new homes. This topic area is one on which we receive a lot of enquiries and requests from local government, and it is a fast-moving agenda. We were pleased to support the West Midlands Combined Authority produce a zero carbon homes roadmap for the region, and have been supporting a similar exercise in Manchester.

Accelerator Cities and Build Upon II projects. With energy efficiency increasingly a point of convergence for both ‘levelling-up’ and green recovery agendas, UKGBC also launched an interactive retrofit policy map and continued its fruitful collaboration with the Green Finance Institute, including through convening a delegation of finance sector representatives to advocate to BEIS Minister Kwarteng for a stamp duty incentive.

We have also been exploring innovative approaches to development and regeneration in a partnership with Enfield Council on the Meridian Water scheme, as part of our Foreground programme with EIT Climate-KIC. A collaborative process has seen us work with a diverse range of stakeholders on finance and value; procurement; and community engagement.

Being unable to hold face-to-face events was challenging, but nevertheless we maintained our local UKGBC networks in our three target city-regions of Greater Manchester, Birmingham and the West Midlands, and Bristol and the South West.

An even greater challenge is carbon emissions from our existing housing stock. On home retrofit, we engaged over 110 officers from 73 local and combined authorities through our

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2021 2020 2019
3.5
How successful has UKGBC
been at influencing local 0 1 2 3 4 5
government policy?
3.12 3.39
3.64
How successful has UKGBC
been at strengthening
0 1 2 3 4 5
relationships between local
government and industry?
3.23 3.33
3.65
How successful has UKGBC
been at influencing large
0 1 2 3 4 5
projects to demonstrate
best practice sustainability?
3.33 3.39
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Anna Biggs – Loch Awe

UKGBC[|] Impact areas[|]

Impact areas

CLIMATE CHANGE: MITIGATION

Advancing Net Zero

Advancing Net Zero continued as UKGBC’s single largest programme as the momentum around net zero gathered pace amongst public and private sector alike. We were pleased to see the UK Government commit to a more ambitious 2030 emissions reduction target of 68% in December 2020, and welcomed the Climate Change Committee’s renewed focus on buildings and heat strategy in particular.

Throughout the year, UKGBC worked with members to supplement the landmark Net Zero Carbon Buildings Framework, originally launched in April 2019, by publishing important new guidance on renewable energy procurement and carbon offsetting – once again the subject of extensive consultation and collaboration across the sector.

541

Individuals directly engaged in the Advancing Net Zero Programme (297 previous year)

170

Different organisations directly engaged in the Advancing Net Zero Programme

The team and our partner organisations also continued to explore the business case for net zero carbon buildings through conducting a cost evaluation study to bring office and residential buildings to 2025 and 2030 net zero standards, as well as publishing a market transformation report highlighting commonly cited barriers to net zero carbon assets and opportunities for overcoming these.

“This new guidance [on Renewables and Offsets] from the UKGBC is a major contribution in helping developers better understand what routes are available to secure renewable energy supplies as a tool to deliver net zero carbon buildings. This is a complex area, but one of growing importance as long term procurement of renewables presents significant opportunities in driving forward new renewable generation capacity in cities and more widely, supporting the renewables sector at a challenging time.”

Syed Ahmed, Director, Energy for London

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2021 2020 2019
4.24
Extent to which UKGBC
supports its members in 0 1 2 3 4 5
climate change mitigation
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Lucy Rees – Wimbledon Common

UKGBC[|] Impact areas[|]

Outcomes evaluation: Advancing Net Zero programme

The following data is drawn from a survey that UKGBC conducted in April and May 2021 to evaluate the outcomes of its work on Advancing Net Zero (ANZ) over the past year.

Driving collaboration and partnerships

32%

70%

Agree or strongly agree that they have made connections with organisations by taking part in the ANZ programme

Agree or strongly agree that the Renewable Energy Procurement & Carbon Offsetting Guidance is a result of wider industry collaboration to drive the net zero agenda for the built environment

68%

Best practice and solutions

63%

Agree or strongly agree that industry task groups with open consultation allowed for cross-industry consensus building when developing the Renewable Energy Procurement & Carbon Offsetting Guidance

Agree or strongly agree that the Renewable Energy Procurement & Carbon Offsetting Guidance provides a best practice process to achieving net zero carbon and the associated values and implications

Knowledge, skills and competencies

58%

74%

Agree or strongly agree that they have acquired new sustainability knowledge by taking part in the ANZ Programme

Agree or strongly agree that the Renewable Energy Procurement & Carbon Offsetting Guidance deepens understanding of what sustainability best practice means in the built environment context

Strong standards across major projects

57%

74%

Agree or strongly agree that the ANZ programme has contributed to strengthening the ambitions of our corporate commitments and strategies

Agree or strongly agree that the Renewable Energy Procurement & Carbon Offsetting Guidance will improve the likelihood of higher standards of sustainability being adopted across the built environment industry

68%

Have shared the Renewable Energy Procurement & Carbon Offsetting Guidance with colleagues, clients and/or partners to help drive higher sustainability standards

77%

*These findings were derived from a relatively small sample size of 30 individuals responding to the survey in full

Have applied, or intend to apply the Renewable Energy Procurement & Carbon Offsetting Guidance in their business and/or on projects to drive higher sustainability standards

UKGBC[|] Impact areas[|]

Climate Resilience; Nature and Biodiversity

Understanding risk and promoting resilience

Covid-19 shone a light on the scale and severity of systemic global risks, which served to heighten awareness and concern for climate related financial risks, and also brought home the critical role that green space and nature play within our urban areas. UKGBC welcomed the Chancellor’s announcement in November 2020 that, by 2025, a significant number of UK companies

will be obliged to report on their climate-related financial risks. Throughout the year, UKGBC ran three separate events for members on the recommendations of the Taskforce on ClimateRelated Finance Disclosures (TCFD) – welcoming speakers from the Bank of England, Lloyds Banking Group, NatWest Group, Lendlease and more.

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167
Different organisations
directly engaged
in Resilience and
NBS projects
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312

Individuals directly engaged in Resilience and NBS projects

Principles for nature-based solutions

Urban nature-based solutions (NBS) can provide an answer to the growing demands from finance, business, regulators, and communities, around the built environment’s role in providing a solution to the climate and ecological emergencies.

decision-makers within built environment organisations to increase the use of urban NBS as a means of ensuring climate resilience and enhancing nature.

Through our collaboration with Business in the Community and Greater Manchester Combined Authorities on the EU funded IGNITION project we also published a business-facing resource titled ‘Nature-based solutions to the climate emergency: The benefits to business and society’. The IGNITION project, which is ongoing, aims to develop innovative financing mechanisms for nature-based solutions to improve the climate resilience of Greater Manchester’s urban area.

Throughout the year, UKGBC coordinated an extensive consultation engaging over 90 industry stakeholders in the creation of a set of principles for delivering urban nature-based solutions, to help developers and owners increase the incorporation of NBS within the construction and operation of built assets. The final report, published in April 2021, provides a concise overview of practical methods and best practice examples that empower influencers and

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2021 2020 2019
3.95
Extent to which UKGBC
supports its members in 0 1 2 3 4 5
climate change adaptation
3.26 3.66
3.85
Extent to which UKGBC
supports its members in
embracing and restoring 0 1 2 3 4 5
nature and promoting
biodiversity
3.16 3.27
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“At Tritax Big Box REIT we have put nature-based solutions at the heart of our ambitions to tackle the impacts of climate change, create biodiversity net gain, and generate social value. The principles, methods, and case studies in this new UKGBC report will help us inform internal and external stakeholders of the importance and possibilities for integrating NBS into our new and existing assets. I encourage all professionals to access the report as it provides actionable information on several emerging areas of importance for NBS, including measurement, innovative financing, and how to maximise functionality.”

Helen Drury, Sustainability Lead, Tritax Management LLP

Eleanor Boyce – Sefton Park

UKGBC[|] Impact areas[|]

RESOURCE USE

Promoting circular economy principles

UKGBC launched a series of implementation packs on Materials Reuse and Products as a Service to assist built environment projects adopt circular economy principles and drive down resource use.

Throughout the year of the programme, we convened dozens of member organisations together through regular member-led working groups focused on particular aspects of implementation - including material reuse, circular economy indicators, and design for disassembly – all focused on facilitating shared learning on live projects.

The team also supported the Horizon 2020 funded CIRCuIT programme looking to apply circular construction thinking at a city level and collaborated closely with other organisations working in this area (for example, ReLondon, LETI, Ellen McArthur Foundation) to extend impact and influence across the built environment industry.

Celina Penny – Middleton Road

172

Individuals directly engaged in Circular Economy work

“The Circular Economy Live Project Forum has initiated a number of critical conversations surrounding material reuse, measuring circularity and design

considerations. It has provided an insightful platform for clients, design teams, suppliers and contractors, to share advice, ideas and opinions. It has enabled us to collectively raise our ambitions for circularity on our projects. Orms are looking forward to continuing this work with the Circular Economy Programme as Partners this year.”

2021 2020 2019

Extent to which UKGBC supports its members in eliminating waste and maximising resource efficiency

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0 1 2 3 4
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93
Different organisations
directly engaged in
Circular Economy work
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~~5~~

Rachel Hoolahan, Architect, Orms

UKGBC[|] Impact areas[|]

SOCIO-ECONOMIC IMPACT

Progressing the understanding of Social Value

The focus on social value continued to gather momentum over the past year, with growing interest from development and construction firms as well as public authorities. In the second year of our now well-established programme, we worked with most of the leading social value practitioners in the industry to focus on measurement, definitions, and the just transition.

There are multiple social value measurement portals and methods already available, many of which are designed for slightly different purposes. Over the last year, UKGBC convened experts together, drawing out their insights about the specific purpose and application of different social value measurement approaches. We published a short guide to help organisations understand which measurement approach might be most suitable for their needs and why.

“The UKGBC programme to define social value has made an excellent contribution to the way the construction sector evolves its approach to social value. The programme was inclusive and produced an incredibly thoughtful and important piece on what social value is and how it can be managed in the built environment.”

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408
Individuals directly
engaged in
Social Value projects
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Framework for defining social value

In 2020, UKGBC brought together a Social Value Task Group to address the challenge of defining social value for the built environment sector in a way which is applicable and useful for all projects and places. Launched in February 2021, the resulting Framework for Defining Social Value provides guidance on the principles and process for defining and delivering social value across all stages of the asset lifecycle.

As momentum builds around the race to zero, UKGBC investigated the social justice considerations and opportunities of the net zero transition through consultation with academia and industry stakeholders. We created an infographic to highlight key considerations of the Just Transition to take into account at different stages of a built asset lifecycle.

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2021 2020 2019
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4.03
Extent to which UKGBC
supports its members in
creating long term social 0 1 2 3 4 5
value and improving quality
of life for people
3.54 3.54
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Ben Carpenter,

CEO, Social Value International

133

Different organisations directly engaged in Social Value projects

Alastair Mant – Knysna Lagoon

UKGBC[|] Impact areas[|]

Outcomes evaluation: Social Value programme

The following data is drawn from a survey that UKGBC conducted in March and April 2021 to evaluate the outcomes of its work on social value over the past year.

Driving collaboration and partnerships

50%

59%

75%

Agree or strongly agree that they have made connections with organisations by taking part in the Social Value Programme

Agree or strongly agree they have extended their professional network by taking part in the Social Value Programme

Agree or strongly agree that the Social Value Framework Definition is a result of cross-industry consensus

89%

Best practice and solutions

Agree or strongly agree that the collaborative way in which the Social Value Framework Definition was developed will support its take up

75%

Agree or strongly agree that the Social Value Framework Definition provides a best practice process to define and deliver social value in any project or place

Knowledge, skills and competencies

71%

Agree or strongly agree that the Social Value Framework Definition deepens understanding of what social value means in the built environment context

Agree or strongly agree that the Social Value Framework Definition equips organisations and government with knowledge and skills needed to drive better outcomes for communities

Strong standards across major projects

70%

71%

Are considering using the Framework for Defining Social Value in future projects

Agree or strongly agree that the Social Value Framework Definition will improve the likelihood of positive social value outcomes being delivered on built environment projects

86%

Agree that the Social Value Framework Definition has filled a knowledge-gap in the industry

75%

Agree or strongly agree that the Social Value Framework Definition encourages flexibility in interventions and diversity in outcomes – giving space for the development of innovative solutions

*These findings were derived from a relatively small sample size of 32 individuals responding to the survey in full.

UKGBC[|] Impact areas[|]

HEALTH AND WELLBEING

Maintaining momentum on health and wellbeing

WorldGBC’s Better Places for People programme continued throughout the year, leading a consultation with over 40 green buildings councils from around the globe, including UKGBC. This work sought to broaden the conversations around health and wellbeing in buildings, beyond buildings in-use to the entire value chain and the full built asset lifecycle. WorldGBC also developed a new framework to encompass the broader socio-economic and environmental determinants of health.

The Covid-19 pandemic has put health and wellbeing firmly into the spotlight for everyone, as nations have battled the worst health crisis in living memory. Our experiences of lockdown showed how our homes, our workplaces and our communities directly affect our health and wellbeing, and our quality of life. The closure of many sectors of the economy and the transition of many office-based employees to home working led to many in the property industry considering the future of our homes and workplaces and UKGBC hosted an event to explore what might change dramatically in the ‘new normal’.

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2021 2020 2019
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Extent to which UKGBC supports its members in eliminating waste and maximising resource efficiency

“The pandemic has put the topic of health and wellbeing in buildings firmly in the spotlight over the past year. We brought members together early on in the pandemic to begin having conversations about the changes that were happening and what the future of our built environment might look like. It was great to discuss what lessons can be learned and how the industry can ensure it builds back fairer, as well as builds back better”

Anna Hollyman, Sustainability Advisor, UKGBC

John Alker – Peak District

UKGBC[|] Looking ahead[|]

Our impacts and the year ahead

Addressing UKGBC’s impacts

Like many organisations during the global pandemic, our team has predominantly been working remotely over the past year. This has necessitated a significant shift in mindset about how we consider our impacts as an organisation, and the culture we want to enhance and nurture internally.

Many of the activities we had planned to do, such as implementing measures to improve office air quality, had to be postponed. As a result, we placed a much greater emphasis on activities that could be carried out effectively online, and on measures to improve our own health and wellbeing. Some of our key highlights include:

Continuing our pathway to net zero

We strive to ‘practice what we preach’ and have done so by signing up to WorldGBC’s Net Zero Carbon Commitment. We also worked with Carbon Intelligence to analyse in more detail our carbon emissions profile, which highlighted the main areas – predominately Scope 3 emissions - which we will need to focus on in our own, ambitious net zero journey.

Supporting our staff during lockdown

UKGBC understands the vital importance of supporting the health and wellbeing of our team, and this became a priority focus during the Covid pandemic. We introduced a number of initiatives, designed to act as both active and passive touchpoints to ensure we maintained our community spirit, support network and personal wellbeing throughout the year. This included organised mindfulness sessions, a monthly book club and social coffee mornings. We also sent every staff member some seeds to grow as part of our gardening club initiative – the products of which occasionally made it into our healthy lunch club!

All of this was over and above more formally organised weekly team meeting, quarterly team half days and a colleague survey all driving further improvements in HR and people related processes.

“Prior to my first day at UKGBC, I had reservations around how engaged and welcomed I could be when joining a new organisation remotely during the global pandemic. I needn’t have worried – UKGBC has been hugely supportive of its staff during lockdown, and 12 months on, despite still not having met most of my colleagues in person, I feel a part of the UKGBC community.”

Emily Huynh, Technical Advisor – Advancing Net Zero, UKGBC

Overview of the year ahead

Our 2021/22 annual operating plan is based on four strategic priorities:

Leverage COP26 to drive up ambition and commitment to climate mitigation and adaptation across the whole property and construction industry and to strengthen key elements of the UK Government’s built environment policy
Accelerate leadership and action, primarily by businesses and government (national and local), towards more sustainable built environment outcomes
Convene cross-sector collaboration, facilitating connections and meaningful partnerships to scale up the adoption of sustainable outcomes and solution

Extend our membership network and activities across the UK, with a particular focus on Scotland in advance of the COP26 conference in November 2021

Supporting our communities during lockdown

The Covid pandemic has heightened our desire to support our communities during lockdown, particularly the demographics most hit by the recent year. In June last year we took part in JLL’s Property Weekend Challenge, a virtual duathlon to fundraise donations for Crisis and LandAid – and at Christmas donated towards three further charities selected by our team: Coram’s Fields, a children charity close to our office, Young Minds and The Trussell Trust.

Holly Campbell, our Sustainability Leaning Co-ordinator, continued our schools’ outreach virtually by creating a home art activity for children aged 9 to 16 around increasing animal biodiversity in Canary Wharf. This was in collaboration with our Gold Leaf member, Canary Wharf Group plc.

Diversity & Inclusion

The past year has also been tumultuous in other ways, and the Black Lives Matter movement in the summer sparked our internal reflection on how we could collectively become a more active champion of diversity and inclusivity. This led us to set up a formal Diversity & Inclusion group and saw us partner up with Inclusive Employers to help support us on our journey to improve our working practices and advocacy in this space.

UKGBC[|] Programme & project partners[|]

Programme and project partners FY20-21

| Argent | Buro Happold | Avison Young | Federated Hermes

Social Value

Resilience and | John Ellerman Foundation Nature Based Solutions

| EU’s Urban Innovation Actions Initiative Ignition

CIRCuIT | EU Horizon 2020 Construction Innovation | CIH Hub (CIH) Value Toolkit

F O U N D A T I O N

UKGBC I IMPACT REPORT 20221 PAVILION

UKGBC[|] Reports[|]

Reports

REFERENCE AND ADMINISTRATIVE DETAILS

The organisation is a charitable company limited by guarantee, incorporated on 29 September 2009 and registered as a charity on 24 March 2010.

Status

The company was originally established under Memorandum and Articles which established the objects and powers of the charitable company. New Articles of Association were approved by the Charity Commission on 21 January 2020.

Governing Document

Board of Trustees

Board of Trustees Judith Everett Jerome Frost OBE Mina Hasman (co-opted) Bill Hughes Chris Oglesby (co-opted) David Partridge Sunand Prasad Victoria Quinlan Lorna Walker Rick Willmott Derek Wilson (co-opted) Company Secretary and Chief Executive Julie Hirigoyen

Senior Management Team

Chief Executive Julie Hirigoyen Director of Policy and Places John Alker Director of Membership and Operations Munish Datta Director of Experiential Learning and Leadership Elfrida Hamilton-Russell Director of Business Transformation Alastair Mant

Registered Office The Building Centre, 26 Store Street, London, WC1E 7BT Company Registration Number 01029239 (England and Wales) Charity Registration Number 1135153 (England and Wales) Auditor Buzzacott LLP, 130 Wood Street, London, EC2V 6DL Bankers NatWest Bank, 250 Regent Street, London, W1B 3BN Solicitors Russell-Cooke LLP, 2 Putney Hill, London, SW15 6AB

TRUSTEES’ REPORT YEAR TO 31 MARCH 2021

The trustees present their annual report and the audited financial statements of UKGBC Limited (UKGBC) for the year ended 31 March 2021.

The report has been prepared in accordance with Part 8 of the Charities Act 2011 and it is also the report of the directors for the purposes of the Companies Act 2006.

The financial statements have been prepared in accordance with the accounting policies set out on pages 65 to 69 and comply with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

OBJECTIVES AND ACTIVITIES

The objects of the charity are for the public benefit:-

To increase the sustainability of the built environment by improving the way it is planned, designed, constructed, maintained, operated, modified and replaced (“Improving sustainability”)
To advance the education of the public in the sustainability, conservation, protection and improvement of the built environment (“Education”)
To promote the sustainability, conservation, protection and improvement of the built environment (“Raising awareness”)

Public Benefit

The trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the charity.

The trustees are confident that UKGBC’s aims and activities of Improving Sustainability, Educating, Campaigning for and Raising Awareness of the Sustainability of the Built Environment are in accordance with the regulations on public benefit.

UKGBC[|] Reports[|]

FINANCIAL REVIEW (continued)

Results for the year

Total income for the year increased by £20,640 (1%) to £2,306,950 (2020: £2,286,310) compared to the previous year.

The primary income source, accounting for 62% of total income (2020: 54%), is membership subscriptions. These have increased by £203,189 on 2020, with total membership fees in the year amounting to £1,427,153 (2020: £1,223,964).

Grant and contract income has decreased by 11% to £559,099 (2020: £630,405). During the year we employed the WorldGBC European Policy Officer (until June 2020) and the WorldGBC Communications and PR Coordinator (from September 2020) to work on the funded programme Build Upon II. In addition, we secured funds from EIT Climate KIC, the Redevco Foundation, the IKEA Foundation and Laudes Foundation. A total of £45,182 (2020: £52,552) of this income was retained at the year end and is held in restricted funds.

Education course income increased by 18% to £162,502 (2020: £138,085).

Where our funds come from

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Membership 62%
Education Course Fees 7%
Grants 25%
Sponsorship 4%
Other Income 2%
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There was no major event income in the year (2020: £nil) as UKGBC did not organise any major sponsored events in FY2020-21 as a result of Covid-19.

The value that we have received from expert members speaking at our education courses, the venues we have been donated to use without charge and secondees from member organisations who worked for us during the year, have been recognised as voluntary (in kind) donations. The value of these donations amount to £31,575 (2020: £45,180) and comprise 100% of voluntary income in the year.

Analysis of our expenditure

Total expenditure decreased by £271,306 in the year to £2,128,670 (2020: £2,399,976) largely a result of expenditure associated with staff costs. Staff costs remain our biggest single cost, comprising 73% (2020: 64%) of costs at £1,562,791 (2020: £1,527,434) in total.

Support costs in the year came to £581,410 versus an equivalent of £470,057 in the previous year, which is mainly as a result of increased staff costs due to the employment in late 2019 of a Director of Membersip and Operations focused on delivering improved membership value and organisational effiencies.

Trustees had ringfenced £40,000 of excess reserves generated in FY2018-19 to be reinvested in FY201920 for the purpose of piloting a new member benefit. Of this, £35,608 (89%) was re-invested during FY2019-20, with the remaining balance utilised in full in FY2020-21.

Improving Sustainability 53% Education 12% Raising Awarness 8% Support Costs 27%

Overall the charity generated a surplus of £178,280 (2020: deficit £113,666) in the year, which increased charitable funds to £1,017,709 (2020: £839,429). Of these, £45,182 (2020: £52,552) are restricted to specific ongoing projects and will be expended in future years. £972,527 (2020: £786,877) are held in unrestricted reserves at the year end.

UKGBC[|] Reports[|]

FINANCIAL REVIEW (Continued)

Reserves policy and financial position

The trustees have set a reserves policy that requires that unrestricted reserves be maintained at a level that ensures that UKGBC’s core activities could continue during a period of unforeseen difficulty and that a proportion of reserves be maintained on easy access deposit. The calculation of the required level of reserves is an integral part of UKGBC’s planning, budgeting and forecasting cycle. It takes into account the risks associated with each stream of income and expenditure varying from budget; the planned activity level; and UKGBC’s future commitments.

The methods recommended for calculating the reserves requirement (which fall under the Charity Commission’s recommended reserve policy guidelines for less complex charities) are that:

The policy addresses the risk of the need for unforeseen expenditure

The policy addresses the risks associated with the loss of a source of income

In using each of these in turn, the trustees of UKGBC calculate and test the appropriate level of reserves for UKGBC on an annual basis. To feed into the Budget FY2021-22, the reserves policy was reviewed and updated in February 2021.

THE NEED FOR UNFORESEEN EXPENDITURE

This method involves calculating the expenditure that would be required to maintain UKGBC’s ordinary activities for a period of 4 months. The level of reserves required based on 4 months of UKGBC’s FY2020/21 budgeted expenditure (excluding depreciation and expenditure associated with restricted income) is £745,000.

RISKS ASSOCIATED WITH THE LOSS OF A SOURCE OF INCOME

Membership fees constitute over 60% of UKGBC’s income and are considered by trustees to be the main source of risk to UKGBC, particularly during the COVID-19 crisis when our members are likely to be suffering economic hardship. Based on the total budgeted income from membership renewals in FY2021-22 being £1,387,000, applying a worst case scenario of 40% attrition would give rise to a loss of income of approximately £555,000. In the event that membership attrition is greater than 40%, costmitigating strategies will be implemented to reduce the impact of this on the charity.

UKGBC proposal for FY2021-22 is an ‘extraordinary investment budget’ aiming to fully harness the unprecedended momentum for UKGBCs mission within business boardrooms, financial markets and socio-politically. Mitigating climate risks, net zero carbon, biodiversity & Nature, and ESG, the backdrop of COP26, the Race to Zero and the Green Industrial Revolution is converting to significant growth in membership and high grant and sponsorship funding commitments secured. The board is supportive of the UKGBC executive team re-investing funds held in excess of the reserves requirement where these can be deployed to amplify impactful outcomes against the charitable objectives.

The trustees consider that, based on current estimates, an appropriate level of reserves for FY2021-22 would be between £555,000 and £745,000, as determined by the two tests above.

As at 31 March 2021, free reserves (excluding the net book value of fixed assets of £19,578) amounted to £952,950 excluding fixed assets which is above the trustees’ stated reserves policy.

Going concern assessment

The coronavirus (COVID-19) outbreak has caused extensive disruptions to organisations as well as economic activities globally with no exception for the UK.

Trustees acknowledge and recognise the potential impact of the COVID-19 pandemic on the future operations of the charity, its members, beneficiaries, partners and stakeholders and on wider society. Whilst the charity has exceeded the budgeted income to date since the lockdown began including generating new programmes of work, the crisis has created economic, social and operational uncertainties which cannot be fully quantified or predicted in relation to a period of twelve months from the date of signing the financial statements.

Based on the current plans, assumptions and forecasts, whilst acknowledging there are material uncertainties and additional financial risks, the trustees believe it is appropriate for the charity to continue to prepare the financial statements on the going concern basis.

Investment policy and performance

The trustees have wide-ranging powers of investment as determined by the Articles. Due to the charity’s reserve requirement (see above), funds are held that exceed the short-term expense requirements and forecast programme costs, but to which access may be required at short notice. Therefore excess funds are placed in fixed deposit financial statements with a basket of UK retail banks. The maturity of these funds is designed to correspond with forecast expenditure and reserve requirements, whilst the nature of these investments ensures that no unnecessary risks are being taken with our funds.

Funds required to meet liquidity and short-term expenditure requirements are retained in interestbearing current accounts with the charity’s bankers.

The invested funds held in fixed deposit accounts together with those in interest-bearing current accounts achieved an average rate of return 0.38% (2020: 0.7%).

Fundraising statement

Over the course of FY2020-21, UKGBC did not undertake any public fundraising activity, nor do our commercial and corporate supporters undertake any public fundraising on our behalf. UKGBC does not have any subsidiary trading companies, nor do we employ commercial third parties to undertake fundraising on our behalf. There were no complaints in the year in relation to our fundraising.

UKGBC[|] Reports[|]

PRINCIPAL RISK AND UNCERTAINTIES

The Board of Trustees has the overall responsibility for the governance of risks and ensures there are adequate and effective systems in place to mitigate these. These risks are reviewed annually by the whole Board as an intrinsic part of strategy setting and upon consideration of new opportunities. The trustees continue to assess the major risks to which the charity is exposed, in particular those relating to the specific operational areas of the charity, its investments and its finances and reputation. The trustees have established systems to monitor and to mitigate those risks and continue to review their effectiveness.

UKGBC has an open and accountable culture, which recognises that risk is inherent in business, particularly where we are aiming to be innovative and ahead of the curve. We adopt an open and proactive approach to risk management, with a view to being pre-emptive rather than box ticking.

The risk management framework is put forward by the Leadership Team, and reviewed and approved by the Risk & Audit Committee and by the Board. UKGBC’s risk management framework is designed to identify the principal risks faced by the organisation and ensure that these are being appropriately monitored. In the case of each of the principal risks, controls are in place and mitigating actions will be allocated to individuals on the team who will be tasked with the requisite accountability. A detailed risk and mitigation report featuring quantitative/ qualitative indicators will be reviewed by the Risk & Audit Committee at least twice a year.

The trustees are satisfied that systems have been developed and are in place to mitigate identified risks to an acceptable level.

The significant risks and uncertainties identified through the above process are discussed on the next page:

RISK IDENTIFIED

FINANCIAL

High reliance on membership fees, partnership as a source of income & long term financial impacts of COVID-19.

Charities being increasingly targeted for cyber fraud and breach of data protection.

PEOPLE

Loss of UKGBC talent due to increased market momentum and demand for sustainability professionals leading to high staff turnover.

Difficulty in recruiting high calibre staff.

ACTION TAKEN TO MITIGATE THE RISK

Alternative sources of funding are targeted to diversify income further from a variety of governmental, EU and philanthropic organisations. A number of successful bids (e.g. Laudes Foundation, John Ellerman Foundation, IKEA Foundation, Climate KIC) have helped diversify income sources.

Clear roles and responsibilities in terms of data protection and increased training, security measures (e.g. Multi Factor Authentification, forced password reset, virus scans, geographical restrictions and Mimecast) have been deployed along with several other actions.

Increased focus on career development and successional planning. Investment in development of team values, core values and team working practices. Annual and tactical review of UKGBC reward package to ensure it is as competitive as possible for all roles. Ensuring sufficient notice periods for all roles commensurate with their criticality to the organisation.

Annual and tactical review of UKGBC reward package to ensure it is as competitive as possible for all roles leveraging the uniqueness of working with a pan industry, mission led charity.

PROGRAMMATIC

Ensuring a coordinated and integrated offering of programmes that deliver positive outcomes.

Significant efforts have gone into planning and scheduling for the upcoming financial year to avoid risk of programmatic clashes and to ensure maximum member impact with variety of different programmes and activities. A marketing and communication strategy for key programmes is now being delivered and having an impact. A revised ‘outcomes’ based approach to impact measurement will be applied to all major programmes for FY2020-21.

REPUTATIONAL

Demonstrating a meaningful impact on the sector to protect UKGBC brand reputation.

Impact is central to our business planning process and tangible outcomes based measurement being delivered for key programmes. Member survey has been adapted to capture impact/ outcomes. The introduction of mandatory membership commitments in May 2021 is commensurate with scale of transformation required from members and the sector as a whole.

UKGBC[|] Reports[|]

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

UKGBC Limited was formed in 2006 as a company limited by guarantee and is governed by an amended Memorandum & Articles of Association dated 29 September 2009. The Charity Commission formally registered the company as a charity on 24 March 2010. New Articles of Association were approved by the Charity Commission on 21 January 2020.

Recruitment and appointment of trustees

The Board of Trustees (who are also directors for the purposes of the Companies Act 2006) consists of not fewer than four and no more than twelve persons elected by members of the charity; in addition the Board has the power to appoint trustees to fill vacancies, and may co-opt up to four more individuals from across the sustainable built environment sector. Trustees are confirmed in post by an election process, and typically serve for an initial 3 years, whereupon they retire by rotation. They may seek re-election.

The following trustees were in office and served between 1 April 2020 and up to the date of approval of this report, except where shown.

Management

The day-to-day management of the charity is delegated to the Chief Executive who is responsible for achieving the overall aims and objectives of the charity to agreed annual budget and target performance criteria.

Remuneration of key management personnel

The trustees consider that they, together with the senior management team, comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis. All trustees give of their time freely and no director received remuneration in the year. Details of directors’ expenses and related party transactions are disclosed in note 6 to the financial statements.

The pay of the Senior Management Team and all staff are reviewed annually by the Personnel & Nominations Committee and normally increased in accordance with average earnings to reflect a cost of living adjustment. In view of the nature of the charity, the trustees benchmark against pay levels in other membership bodies and trade associations.

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TRUSTEE APPOINTED/RESIGNED
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TRUSTEE	APPOINTED/RESIGNED
Michael Cross	Resigned 16 September 2020
Judith Everett	Appointed 1 October 2020
Jerome Frost OBE
Mina Hasman
Bill Hughes
Chris Oglesby	Co-opted 1 January2021 due for election at next AGM
David Partridge
Sunand Prasad
Victoria Quinlan
Lorna Walker
Rick Willmott
Derek Wilson	Co-opted 16 September 2020 due for election at next AGM

Statement of the trustees’ responsibilities

The trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for preparing the trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for that period.

In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;

observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102);

make judgements and estimates that are reasonable and prudent;

Trustee induction and training

On election, each new trustee receives an induction pack including the ‘Good Trustee Guide’ published by the Charity Commission and a range of key organisational policies and documents. All new trustees are invited to attend a Role of Trustee course and along with other trustees are given regular opportunities to meet the senior management and other staff.

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

UKGBC[|] Reports[|]

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the trustees confirms that:

so far as the trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and

the trustee has taken all the steps that he/she ought to have taken as a Trustee in order to make himself/herself aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the trustees and signed on their behalf by:

Chairman: Sunand Prasad Date: 15/07/2021

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF UKGBC LIMITED

Opinion

We have audited the financial statements of UKGBC Limited (the ‘charitable company’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, and statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the charitable company’s affairs as at 31 March 2021 and of its 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 (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities 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 are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty relating to going concern

We draw attention to the information contained in the trustees’ report and principal accounting policies to these financial statements, which sets out the material uncertainties relating to going concern. Our opinion is not modified in respect to this matter.

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

UKGBC[|] Reports[|]

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF UKGBC LIMITED (continued)

Other information

The other information comprises the information included in the annual report and financial statements, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report and financial statements. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required 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 this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the trustees’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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 obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept; 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 not received all the information and explanations we require for our audit; or

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

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

we identified the laws and regulations applicable to the charitable company through discussions with management, and from our commercial knowledge and experience of the sector;

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charitable company, including the Companies Act 2006;

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting correspondence; and

identified laws and regulations were communicated within the audit team and the team remained alert to instances of non-compliance throughout the audit.

the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report.

Responsibilities of trustees

UKGBC[|] Reports[|]

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF UKGBC LIMITED

(continued)

We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the 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 fullest 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.

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

performed analytical procedures to identify any unusual or unexpected relationships; tested journal entries to identify unusual transactions;

assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and

investigated the rationale behind significant or unusual transactions.

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

agreeing financial statement disclosures to underlying supporting documentation;

reading minutes of meetings of those charged with governance; and

enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Shachi Blakemore (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

Buzzacott LLP is eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006.

Date: 15/07/2021

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

UKGBC[|] Financial statements[|]

Financial Statements

STATEMENT OF FINANCIAL ACTIVITIES YEAR TO 31 MARCH 2021

Notes	Un- restricted funds £	Restricted funds £	2021 Total funds £	Un- restricted funds £	Restricted funds £	2020 Total funds £
Income from: Donations and legacies 1 Charitable activities 2 . Improving sustainability . Education . Raising awareness Investments Other sources Total income Expenditure on: Charitable activities 3 . Improving sustainability . Education . Raising awareness Total expenditure Net income (expenditure) and movement in funds 5 Reconciliation of funds Brought forward at 1 April Carried forward at 31 March	31,575 1,459,339 162,502 80,430 3,460 8,564	- 559,100 - 1,980 - -	31,575 2,018,439 162,502 82,410 3,460 8,564	54,180 1,344,440 138,085 70,431 7,512 32,190	- 630,405 - 9,067 - -	54,180 1,974,845 138,085 79,498 7,512 32,190
	1,745,870	561,080	2,306,950	1,646,838	639,472	2,286,310
	991,792 354,548 213,880	566,470 - 1,980	1,558,262 354,548 215,860	731,325 465,796 614,554	579,234 - 9,067	1,310,559 465,796 623,621
	1,560,220	568,450	2,128,670	1,811,675	588,301	2,399,976
	185,650 786,877	(7,370) 52,552	178,280 839,429	(164,837) 951,714	51,171 1,381	(113,666) 953,095
	972,527	45,182	1,017,709	786,877	52,552	839,429

All recognised gains and losses are included in the above statement of financial activities.

BALANCE SHEET YEAR TO 31 MARCH 2021

Notes	2021 £	2020 £ 570,268 904,673 629,389	2020 £
Fixed assets Tangible fxed assets 7 Current assets Debtors 8 Short term deposits Cash at bank and in hand Current liabilities Creditors: amounts falling due within one year 9 Net current assets Net assets The funds of the charity: Unrestricted funds 14 . General funds . Designated funds Restricted funds 14 Total charity funds	19,577 998,132		20,801 818,628
		2,104,330 (1,285,702)

	1,017,709		839,429
	972,527 - 972,527 45,182 1,017,709		782,485 4,392 786,877 52,552 839,429

All of the charity’s activities derived from continuing operations during the above two periods of report.

The principal accounting policies and notes on pages 65 to 79 form part of these financial statements.

Approved by the trustees and signed on their behalf by:

Chairman: Sunand Prasad Date: 15/07/2021

Company Registration Number: 01029239 (England and Wales)

UKGBC[|] Financial statements[|]

STATEMENT OF CASH FLOWS YEAR TO 31 MARCH 2021

Notes Cash fows from operating activities Net cash provided by operating activities A Cash fows from investing activities Interest received Purchase of tangible fxed assets Net cash used in investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at 1 April B Total cash and cash equivalents at 31 March B	2021 £	2020 £ 166,042
	489,749
	3,460 (7,615)	7,512 (17,830)
	(4,155) 485,594 1,534,062	(10,318) 155,724 1,378,338 1,534,062
	2,019,656

Notes to the statement of cash flows for the year to 31 March

A Reconciliation of net income to net cash provided by operating activities

y pg		2021 £ 178,280 8,838 (3,460) 14,900 291,191	2020 £
Net income (as per the statement of fnancial activities) Adjustments for: Depreciation charges Investment income receivable Decrease in debtors Increase (decrease) in creditors Net cash provided by operating activities			(113,666) 31,047 (7,512) 7,681 248,492
		489,749	166,042
B Analysis of cash and cash equivalent		2021 £ 1,109,275 910,381 2,019,656	2020 £
Cash at bank and in hand Short term deposits Total cash and cash equivalents			629,389 904,673
			1,534,062
Cash at bank and in hand Short term deposits Total C Analysis of changes in net debt	At 31 March 2020 £	Cash fows £	At 31 March 2021 £ 1,109,275 910,381 2,019,656
	629,389 904,673	479,886 5,708
	1,534,062	485,594

PRINCIPLE ACCOUNTING POLICIES YEAR TO 31 MARCH 2021

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

General information

The charity is a company limited by guarantee, incorporated in England and Wales (company number: 01029239) and a charity registered in England and Wales (charity number: 1135153). The charity’s registered office address is: The Building Centre, 26 Store Street, London, WC1E 7BT.

Basis of preparation

These financial statements have been prepared for the year to 31 March 2021 with comparative information provided for the year to 31 March 2020.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (Charities SORP FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

The financial statements are presented in sterling and are rounded to the nearest pound.

Preparation of accounts on a going concern basis

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements. Further details have been provided on page 66.

UKGBC[|] Financial statements[|]

PRINCIPLE ACCOUNTING POLICIES (continued) YEAR TO 31 MARCH 2021

Critical accounting estimates and areas of judgement

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the charity’s accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management’s best knowledge of the amount, events or actions, actual result ultimately differ from those estimates. The items in the accounts where judgements and estimates have been made include:

INCOME FROM CHARITABLE ACTIVITIES

Income from charitable activities is recognised as earned as the related services are provided. Income from other trading activities is recognised as earned as the related goods are provided.

Income received in the year has been deferred in respect of specific events and education courses taking place after the year end.

Memberships fall due for renewal throughout the year membership. Consequently fee income is calendarised so that only the income for the accounting year is recorded and the balance carried as an accrual.

estimating the useful economic life of tangible fixed assets; and

determining the most appropriate basis for allocating support costs.

In addition to the above, the full impact following the recent emergence of the global coronavirus pandemic is still unknown. It is therefore not currently possible to evaluate all the potential implications for the charity’s activities, beneficiaries, funders, suppliers and the wider economy.

Going concern assessment

The coronavirus (COVID-19) outbreak has caused extensive disruptions to organisations as well as economic activities globally with no exception for the UK.

Based on the current plans, assumptions and forecasts, whilst acknowledging there are material uncertainties and additional finanicial risks, the trustees believe it is appropriate for the charity to continue to prepare the financial statements on the going concern basis.

Income recognition

All income is recognised once the charity has entitlement to income, it is probable that income will be received and the amount of income receivable can be measured reliably. Amounts received for application in future periods are held on the balance sheet as deferred income and released to the statement of financial activities in the relevant period.

DONATED SERVICES

Donated services and facilities are included as ‘donations income’ at a value equivalent to the estimated commercial cost that the charity would otherwise have incurred, and under the appropriate expenditure heading depending on the nature of service or facility provided, at the same value and time.

GRANTS

Grants are recognised in full in the statement of financial activities in the year in which the charity has entitlement to the income, the amount of income receivable can be measured reliably and there is probability of receipt. In the event that a grant or donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

INVESTMENT INCOME

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Expenditure recognition

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Expenditure on charitable activities is comprised of the costs associated with the key strategic areas of activity being; improving sustainability, education and raising awareness. Support costs including governance costs are allocated between the various categories of charitable expenditure (see below).

ALLOCATION OF COSTS

Expenditure allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned based on staff time attributable to each activity.

UKGBC[|] Financial statements[|]

PRINCIPLE ACCOUNTING POLICIES (continued) YEAR TO 31 MARCH 2021

Staff costs are allocated between direct charitable expenditure and support costs based on the time spent on these activities. Other costs are allocated directly to the relevant heading.

Support costs also include governance costs. This relates to the cost incurred with meeting constitutional and statutory requirements and the costs associated with the strategic management of the charity.

Operating leases

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities as incurred.

Tangible fixed assets

Assets costing more than £500 are capitalised. Fixed assets are recognised at cost or deemed cost (donated valuation at estimated fair value) less accumulated depreciation and impairment losses.

Depreciation is calculated to write off the costs of the fixed asset capitalised over their estimated useful economic lives as follows:

Computer equipment 3 years straight line Fixtures, fittings and equipment 25% reducing balance Leasehold refurbishment 3 years straight line

Investments

Current asset investments are cash amounts held by the charity with a maturity date of less than one year and held for investment purposes. They are measured at the cash value of the deposit.

Debtors

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Funds

Unrestricted funds are income receivable or generated for the objects of the charity.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

Restricted funds are those funds which are to be used in accordance with specific instructions imposed by the donor or trust deed.

Employee benefits

SHORT TERM BENEFITS

Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.

EMPLOYEE TERMINATION BENEFITS

Termination benefits are accounted for on an accrual basis and in line with FRS 102.

PENSION SCHEME

UKGBC operates a defined contribution pension scheme for the benefit of its employees. The assets of the scheme are held independently from those of the company in an independently administered fund. The pensions costs charged in the financial statements represent the contributions payable during the year to the funds.

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

UKGBC[|] Financial statements[|]

NOTES TO THE FINANCIAL STATEMENTS YEAR TO 31 MARCH 2021

1 Income from donations and legacies

Donations Services donated	2021 Total £	2020 Total £ 9,000 45,180 54,180
	- 31,575
	31,575

Included within donations and legacies are goods and services which have been donated to the charity during the year totalling £23,908 (2020: £44,180). This consists of venue hire (£nil (2020: £6,000)) and consultancy (£23,908 (2020: £39,180)).

2 Income from charitable activities

	2021 £ 1,427,153 32,186 559,099 -	2020 £
Improving sustainability Membership income Sponsorship income Grant & contract income Other income Education Leaders Network sponsorship income Education course income Raising awareness Grant & contract income Sponsorship income Leaders Network sponsorship income Total charitable income		1,223,964 107,898 630,405 12,578
	2,018,438 13,750 148,752	1,974,845 18,750 119,335
	162,502 1,980 66,680 13,750	138,085 9,067 51,681 18,750
	82,410 2,263,350	79,498 2,192,428

3 Expenditure on charitable activities

	Direct costs Other £	Direct costs Staff £ 718,050 175,964 95,964 989,978 Direct costs Staff £	Support costs £	2021 £
Improving sustainability Education Raising awareness	415,359 76,848 65,075 557,282 Direct costs Other £		424,853 101,736 54,821 581,410	1,558,262 354,548 215,860 2,128,670
			Support costs £	2020 £
Improving sustainability Education Raising awareness	397,787 135,621 133,811	665,158 240,606 356,936	247,614 89,569 132,874	1,310,559 465,796 623,621 2,399,976
	667,219	1,262,700	470,057

4 Analysis of support costs

	Premises £	IT/Comms £	Admin staff £	Governance £ 184,978 43,930 23,568 252,476 Governance £	2021 £
Improving sustainability Education Raising awareness	95,286 23,351 12,735 131,372 Premises £	32,179 7,886 4,301	112,410 25,569 14,217		424,853 101,736 54,821 581,410
		44,366	153,196
		IT/Comms £	Admin staff £		2020 £
Improving sustainability Education Raising awareness	83,700 30,277 44,915	21,856 7,906 11,728	83,098 30,058 44,592	58,960 21,328 31,639	247,614 89,569 132,874 470,057
	158,892	41,490	157,748	111,927

Support costs are divided in the proportion of the direct staff costs of each activity area, thus:

	2021	2020
Improving sustainability	73%	53%
Education	17%	19%
Raising awareness	10%	28%

UKGBC[|] Financial statements[|]

NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR TO 31 MARCH 2021

5 Net income for the year

6 Staff costs and remuneration of key management personnel (continued)

This is stated after charging/crediting:

The number of employees whose emoluments for the year fell within the following bands were:

Auditor’s remuneration Audit Tax compliance services Tax advisory services Depreciation Pension costs	2021 £ 12,000 1,500 1,780 8,838 90,459	2020 £
		9,200 - - 31,047 85,677

6 Staff costs and remuneration of key management personnel Staff costs during the year were as follows:

Salaries and wages Social security costs Pension contributions Termination payments Other employee costs	2021 £ 1,311,018 140,765 90,459 - 20,549 1,562,791	2020 £
		1,261,877 141,886 85,677 4,930 33,064
		1,527,434

The average number of employees during the year on a headcount basis was as follows:

Charitable activities Support	2021 Number 22 3 25	2020 Number
		22 3 25

£60,001 - £70,000 £70,001 - £80,000 £80,001 - £90,000 £90,001 - £100,000 £190,001 - £200,000	2021 Number - 2 1 1 1	2020 Number
		2 2 1 1 1

These 5 employees are accruing pension contributions totalling £35,462 (2020:7 employees, accruing £37,680).

The trustees consider that they together with the Senior Management Team comprise the key management personnel of the charity. The total remuneration payable to the key management personnel of the charity was £629,548 (2020: £663,395).

Trustees are not remunerated for their services to the charity. However, out of pocket expenses incurred in connection with the execution of their duties as trustees are reimbursed where claimed. No such claims were made in FY2020-21 or FY2019-20.

7 Tangible fixed assets

	Offce equipment £	Computers £	Leasehold refurbishment £	Total £
Cost At 1 April 2020 Additions Disposals Balance at 31 March 2021 Depreciation At 1 April 2020 Charge for the year Released on disposal Balance at 31 March 2021 Net book value At 31 March 2021 At 31 March 2020	60,034 - - 60,034	53,156 7,614 (10,500) 50,270	133,343 - - 133,343	246,533 7,614 (10,500) 243,647
	54,900 1,283 - 56,183	37,489 7,555 (10,500) 34,544	133,343 - - 133,343	225,732 8,838 (10,500) 224,070
	3,851	15,726	-	19,577
	5,134	15,667	-	20,801

UKGBC[|] Financial statements[|]

NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR TO 31 MARCH 2021

8 Debtors

Trade debtors Prepayments Other debtors	2021 £ 389,690 50,764 114,913 555,367	2020 £
		401,500 43,480 125,288
		570,268

9 Creditors: amounts falling due within one year

Trade creditors Other taxation and social security Deferred income (Note 10) Accruals Other creditors	2021 £ 94,165 141,841 1,196,338 143,926 621 1,576,891	2020 £
		84,119 130,319 927,393 128,273 15,598
		1,285,702

10 Analysis of deferred income

Deferred income at 1 April Applied during the year Released during the year Deferred income at 31 March 11 Financial instruments Financial assets measured at fair value Financial liabilities measured at amortised cost Deferred income relates to income received in the year which relates to specifc events and education courses taking place after the year end.	2021 £ 927,393 1,196,338 (927,393) 1,196,338	2020 £
		749,422 927,393 (749,422)
		927,393
	2021 £ 2,409,346 (94,165)	2020 £
		1,938,295 (84,119)

12 Operating lease commitments

At the balance sheet date, the charity’s total future commitments under non-cancellable operating leases are as follows.

	Equipment	Equipment	Land and	buildings
	2021 £	2020 £	2021 £	2020 £
Leases which expire Within one year Within two to fve years	4,747 2,374 7,121	4,747 7,121	135,295 34,086	132,149 169,381
		11,868	169,381	301,530

13 Analysis of group net assets between funds

	Restricted funds £	Unrestricted funds £	Total funds 2021 £
Fixed assets Current assets Current liabilities Net assets at 31 March 2021	- 112,121 (66,939)	19,577 2,462,902 (1,509,952)	19,577 2,575,023 (1,576,891) 1,017,709
	45,182	(972,527)
	Restricted funds £	Unrestricted funds £	Total funds 2020 £
Fixed assets Current assets Current liabilities Net assets at 31 March 2020	- 120,719 (68,167)	20,801 1,979,219 (1,217,535)	20,801 2,104,330 (1,285,702) 839,429
	52,552	761,684

UKGBC[|] Financial statements[|]

NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR TO 31 MARCH 2021

14 Analysis of funds

	Balance at 1 April 2020 £	Income £	Expenditure £	31 March 2021 £
Unrestricted funds General funds Restricted funds World GBC European Policy Advancing Net Zero Build Upon 2 Circuit – Circular Economy Climate KIC – Accelerator Cities Climate KIC - Foreground Construction Innovation Hub Ignition Nature Based Solutions Whole Life Carbon Roadmap Charity total	786,877 5,499 - 47,053 - - - - - - -	1,745,870 26,764 155,691 35,719 30,970 121,749 68,447 33,000 23,717 32,000 33,023	(1,560,220) (25,755) (155,691) (44,098) (30,970) (121,749) (68,447) (33,000) (23,717) (32,000) (33,023)	972,527 6,508 - 38,674 - - - - - - -
	839,429	2,306,950	(2,128,670)	1,017,709

	Balance at 1 April 2020 £	Income £	Expenditure £	*31 March* *2021* £
*Unrestricted funds* General funds Designated funds *Restricted funds* . World GBC European Policy . EeMAP . Build Upon 2 . Advancing Net Zero . Climate KIC – Innovation . Circuit - Circular Economy . Ignition . Epping Forest . Climate KIC - Foreground . Climate KIC – Accelerator Cities *Charity total*	951,715 40,000 5,427 (4,047) - - - - - - - -	1,646,838 - 104,864 26,564 186,316 138,109 36,267 19,000 20,932 6,450 64,985 35,985	(1,811,676) 35,608 (104,792) (22,517) (139,263) (138,109) (36,267) (19,000) (20,932) (6,450) (64,985) (35,985)	*786,877* *4,392* *5,499* - *47,053* - - - - - - -
	953,095	2,286,310	(2,399,976)	*839,429*

Restricted funds

ADVANCING NET ZERO (ANZ)

This relates to funding secured from Redevco Foundation for a project about galvanising the industry and policy makers to deliver a net zero carbon built environment, through industry leadership and strong regulation.

BUILD UPON 2 (BU2)

This relates to grant funding received from the European Union to fund work on the Build Upon project as part of a consortium of Green Building Councils from across Europe. The aims of the project are to help European countries design and implement strong, long-term national strategies for the renovation of their existing buildings.

CLIMATE KIC – ACCELERATOR CITIES

This related to funding secured from EIT Climate-KIC to deliver a programme that supports local and combined authorities deliver home retrofit.

CLIMATE KIC – FOREGROUND

This relates to funding secured from EIT Climate-KIC for the delivery of a programme of workshops and site tours with local authorities and businesses, to support the sustainability outcomes of three large scale development schemes.

CLIMATE KIC – INNOVATION

This relates to funding the UKGBC Innovation Portal secured from EIT Climate-KIC to develop links between larger corporates (demand) and start-up innovators (supply), and in so doing building the capacity within UKGBC’s membership to adopt innovative approaches to drive sustainability in the sector.

CLIMATE KIC – ZERO CARBON LABS

This relates to funding secured from EIT Climate-KIC for the delivery of a programme of work to support local authorities deliver against their Climate Emergency goals.

CIRCUIT – CIRCULAR ECONOMY

Circular Construction in Regenerative Cities - is a collaborative project involving 29 partners across the entire built environment chain in Copenhagen, Hamburg, Helsinki Region and Greater London. Funded by the European Commission’s Horizon 2020 programme, the project will support the creation of regenerative cities by implementing sustainable and circular construction practices. UKGBC forms part of the Greater London cluster and has secured 4 years worth of funding. Through this project we can start to bridge the gap between theory, practice and policy by delivering a series of demonstrations, case studies, events and other dissemination activities that showcase how circular construction approaches can be scaled and replicated across Europe to enable cities to build more sustainably and transition to a circular economy on a wider scale.

UKGBC[|] Financial statements[|]

NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR TO 31 MARCH 2021

14 Analysis of funds (continued)

CONSTRUCTION INNOVATION HUB’S VALUE TOOLKIT

UKGBC is the Natural Capital lead on the Construction Innovation Hub’s Value Toolkit. We have convened an industry steering group to create a suite of tools to support value-based decision making across the investment lifecycle. The overarching aim of this collaboration is to contribute to the development of a robust, consensus-based methodology for the definition, evaluation and measurement of value across the entire investment lifecycle of new built assets.

14 Analysis of funds (continued)

WORLD GBC EUROPEAN POLICY

The World Green Building Council European Policy reserve relates to income received to fund the employment of a Senior European Policy Officer. The European Senior Policy Officer advises on European green building law and policy for the Europe Regional Network of over 30 national Green Building Council’s around Europe, including UKGBC.

GENERAL FUNDS – DESIGNATED FUND

EeMAP (THE ENERGY EFFICIENT MORTGAGES ACTION PLAN)

This relates to a 2 year project funded by the European Commission’s Horizon2020 research programme. The project aims to create a standardised “energy efficient mortgage”, according to which building owners are incentivised to improve the energy efficiency of their buildings or acquire an already energy efficient property by way of preferential financing conditions linked to the mortgage.

In FY2018-19, the Trustees of UKGBC unanimously decided in favour of re-investing £40,000 from the surplus generated as designated funds to pilot a new member benefit that is intended to mitigate against attrition risks, and deepen the engagement of member companies. £35,608 was utilised during FY2019-20, with the remaining £4,392 carried forward to FY2020-21 being utilised in full during the year.

15 Taxation

ENFIELD COUNCIL – FOREGROUND

This relates to funding from Enfield Council to act as critical friend in facilitating a process designed to support the implementation of its Sustainability Strategy for Meridian Water.

EPPING FOREST

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purpose.

16 Related party transactions

There were no transactions with related parties as at 31 March 2021 (2020: none).

This relates to funding from Epping Forest District Council to act as critical friend in facilitating a review of the Sustainability Guidance and Checklists for Harlow and Gilston.

EU’S URBAN INNOVATION ACTIONS (UIA) INITIATIVE – IGNITION

This relates to funding UKGBC secured from the UIA to join the IGNITION project alongside 11 other partners from local government, universities, NGOs and business. The aim is to develop the first model of its kind that enables major investment in large-scale environmental projects which can increase climate resilience. By 2038 this will enable an increase in Greater Manchester’s urban green infrastructure coverage by 10% from a 2018 baseline.

INCREASING NATURE-BASED SOLUTIONS

A UKGBC programme to enable more ambitious industry targets and increase the application of naturebased solutions in urban areas for climate resilience and environmental net gains. Funding for this programme has been provided by the John Ellerman Foundation.

WHOLE LIFE CARBON ROADMAP

This relates to funding secured from Laudes Foundation and Ikea Foundation for a project as part of a consortium of Green Building Councils from across Europe. The UK project will deliver a whole life carbon roadmap for the built environment, in collaboration with industry and government.

UK Green The Building Centre 020 7580 0623 Building Council 26 Store Street info@ukgbc.org London WC1E 7BT ukgbc.org

Foreword

Picturing a year of lockdown

Contents

INTRODUCTION

IMPACT INSIGHTS

IMPACT AREAS

FINANCIAL STATEMENTS

Introduction

About UKGBC

Our vision is a built environment that enables people and planet to thrive by:

Our charitable objectives are:

Theory of Change

Year at a glance

Membership

Impact insights

BUSINESS

Driving up ambitious corporate commitments

Gold Leaf member commitments:

89%

38%

38%

40%

Co-creating guidance and sharing best practices

Julie Townsend,

Fostering collaboration and partnerships

Percentage of respondents who believe UKGBC membership has enabled or highly enabled them to:

Showcasing solutions and innovation

88%

Equipping professionals with knowledge, skills and competencies

Activating transformational leadership

Peter Anderson,

80+

GOVERNMENT

Influencing progressive national policies

Supporting local policy-making and leadership

70+

Impact areas

CLIMATE CHANGE: MITIGATION

Advancing Net Zero

Outcomes evaluation: Advancing Net Zero programme

Climate Resilience; Nature and Biodiversity

Understanding risk and promoting resilience

Principles for nature-based solutions

RESOURCE USE

Promoting circular economy principles

SOCIO-ECONOMIC IMPACT

Progressing the understanding of Social Value

Framework for defining social value

Ben Carpenter,

Outcomes evaluation: Social Value programme

HEALTH AND WELLBEING

Maintaining momentum on health and wellbeing

Our impacts and the year ahead

Addressing UKGBC’s impacts

Continuing our pathway to net zero

Supporting our staff during lockdown

Overview of the year ahead

Supporting our communities during lockdown

Diversity & Inclusion

Programme and project partners FY20-21

Reports

REFERENCE AND ADMINISTRATIVE DETAILS

TRUSTEES’ REPORT YEAR TO 31 MARCH 2021

OBJECTIVES AND ACTIVITIES

Public Benefit

FINANCIAL REVIEW (continued)

Results for the year

Where our funds come from

FINANCIAL REVIEW (Continued)

Reserves policy and financial position

THE NEED FOR UNFORESEEN EXPENDITURE

RISKS ASSOCIATED WITH THE LOSS OF A SOURCE OF INCOME

Going concern assessment

Investment policy and performance

Fundraising statement

PRINCIPAL RISK AND UNCERTAINTIES

RISK IDENTIFIED

FINANCIAL

PEOPLE