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2022-03-31-accounts

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ANNUAL REPORT AND FINANCIAL STATEMENTS

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FORWARD

As I reflect on the past 12 months, I am truly humbled by how much we as a network have achieved in what can only be described as turbulent times, but also reminded of how much more there is still to do if we are to achieve our climate targets and deliver a safe and sustainable future for all.

contribute to the transformation of the built environment.

Over the last year, and especially highlighted at COP26 in Glasgow, the call for more action (and less talk) has magnified and there is a new level of accountability in motion that, I hope, will support the volume and scale of tangible outcomes required if we are to achieve net zero. However, it remains startlingly clear that we cannot afford to be complacent or lose pace. In fact, quite the opposite. We must drive momentum and double down on our efforts to reduce emissions, restore the balance with nature, and put the health and wellbeing of society at the very heart of our plans if we are to avert catastrophe in our lifetime.

As an Accelerator to the Race to Zero, we established the requirement for all our Gold Leaf members to join the Race, and we firmly encourage all our other members to do so too.

We continued to deliver on every aspect of our annual plan and the collaboration and convening of our members have been central to this. We have heard time and time again from members how important this opportunity for engagement is, and this will remain the very bedrock of our modus operandi in coming years.

Beyond these examples, our impact has been widespread across all our core areas and this report includes a data-rich analysis of this over the last 12 months, including the results of our Annual Member Survey, which enables us to measure our progress yearon-year.

A number of important initiatives aimed at further extending and deepening our impact were launched during this last year including:

Change is afoot, and this is something that we can rightfully be proud of. In order to capitalise on the momentum, we must continue to show that the built environment can be a leader in reducing UK emissions.

At UKGBC we remain committed to these goals through our mission to drive transformation across our sector and support all of our stakeholders to radically improve the sustainability of the built environment. As a charity operating in tumultuous times, I believe that we can take justified pride in how we have put that mission into action over the last year.

Yet more and more recent data highlights that the climate emergency remains the most pressing issue facing the built environment and while the challenge is immense, I believe that the collective impact of our membership can deliver transformative change across our sector at a scale that matters ■

The Roadmap is an important tool, mapping out the pathway to decarbonising the sector by 2050. It quantifies the specific emission reductions required across the built environment to meet this crucial deadline and includes key policy recommendations for government, and stakeholder action plans geared to deliver the solutions.

It has been a year of unprecedented growth at UKGBC, with 130 new members joining and 20 new colleagues onboarded, highlighting the demand and desire from within industry to become more sustainable and

JULIE HIRIGOYAN CHIEF EXECUTIVE UK GREEN BUILDING COUNCIL

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3
COP26
C I R C U L A R [ECONOMY]
SOCIAL VALUE AND
HEALTH & WELLBEING
THEORY OF
CHANGE
IMPACT REPORT
2021›22
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THE YEAR OF COP26

This was the financial year that global leaders convened in the UK for COP26. Hosted in Glasgow, the annual UN climate change conference placed climate action on the agenda of government, business and society globally like never before.

For the UK business community, it was in particular a time to reflect on its role in bringing about a reduction in carbon emissions and adapting to extreme weather events.

COP26 also provided the perfect opportunity for UKGBC to convene its members together around our common purpose.

Cities, Regions and Built Environment Day turned the spotlight on our sector and its vital role in fighting the climate crisis and was the launchpad for our Net Zero Whole Life Carbon Roadmap – a significant milestone for the UK built environment on the road to net zero, providing clear guidance and next steps.

We also played a central role in the collaborative Build Better Now initiative, a virtual exhibition and events series highlighting the vital role of our sector in tackling the climate crisis.

Finally, we officially launched UKGBC Scotland at an event with Patrick Harvie MSP Minister for zero carbon buildings, active travel and tenants' rights in the Blue Zone. UKGBC Scotland is our local presence focused on a dedicated programme of initiatives for

the Scottish policy and industry landscapes.

With the event in the UK, many of our team took the opportunity to attend the conference; making an impact on the ground, networking with our members, and sharing the message of turning commitments into action through collective pressure ■

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2 INTRODUCTION 24 IMPACT AREAS Foreward 2 The Year of COP26 4 ANZ 26 Introduction 8 Impact Focus: 28 to UKGBC WLC Roadmap A Year at a Glance 10 NBS and Resilience 30 Circular Economy 32 12 IMPACT Social Value and 34 INSIGHTS Health & Wellbeing Business 12 Impact Focus: 36 Build Better Now Government 22 36 NEXT YEAR 44 REPORTS Our Impact 39 Trustees’ Report 47 at UKGBC The Year Ahead 40 46 FINANCIAL STATEMENTS 42 WITH THANKS Statement of 62 Programme and 42 Financial Activities Project Partners Balance Sheet 63 for FY 21-22 Statement of 64 Cash Flows Principle Accounting 65 Policies Notes to the 68 Financial Statements

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8 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 650 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 Our charitable environment that enables objectives are:

environment that enables people and planet to thrive by:

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

WE ENABLE by developing guidance, showcasing solutions and stimulating innovation

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

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10 YEAR AT A GLANCE

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Learning and development | ● 2021-22 | ● 2020-21 | ● 2019-20 Events | ● 2021-22 | ● 2020-21 | ● 2019-20
8,109 4,669 42 3,431
9,139 6,156 4,566 3,288 40 54 2,673 1,622
Hours of learning delivered Course participants Events Individuals took part in events
Communications | ● 2021-22 | ● 2020-21 | ● 2019-20
69
35
70 43 1,492
Learning interventions 43 35 943 782
Membership | ● 2021-22 | ● 2020-21 | ● 2019-20 Press releases Media mentions
7,438 200 43.7 [K] 22.3 [K]
4,956 4,040 213 131 42 [K] 41 [K] 16 [K] 10 [K]
Active me mber contacts Opportunities for members to engage in UKGBC activities Twitter followers Linkedin followers
672 78 [%] 213.6 [K] 66.4 [K]
542 430 68 [%] 68 [%] 152 [K] 124 [K] 52 [K] 24 [K]
Members Of member organisations that actively took part Website users Downloads of all reports/tools
in UKGBC activities
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IMPACT INSIGHTS

CLIMATE ADAPTATION /

CLIMATE MITIGATION

RESOURCE USE

76[%] 17[%] 54[%]

The number committing to becoming net zero carbon rose from 42% to 76% . (this is especially notable as Spring 22 we brought in the member requirement).

The number citing a commitment The number committed to towards Nature-Based Solutions implementing circular economy for climate resilience rose from principles rose from 40% to 54% . 4% to 17% .

30[%]

Ambitious Corporate Commitments

U KGBC is an importantpartner for The Crown Estate on our journey to Net Zero. Through the wide range of support they provide – as well as their role as a “critical friend” setting collective challenges for the industry – they help us stay focused on the transformation necessary to achieve this vital commitment.“

58[%]

SOCIO-ECONOMIC IMPACT

One of UKGBC’s central aims is to strengthen and increase the sustainability ambition and commitments of businesses operating in the built environment. We know that they have a central role to play in tackling the climate and ecological crises and in ensuring health, wellbeing and a decent quality of life for people.

78[%]

The number who had achieved zero waste to landfill rose from 22% to 30% .

The number of signatories to the RTZ campaign rose from 38% to 58% . (this is especially notable as Spring 22 we brought in the member requirement).

The number publicly reporting on socio-economic value contributions

To enable this to happen, we have been mapping the progress of our Gold Leaf members since 2016 through the 360 Sustainability Review. This allows us to suggest ambitious next steps on the journeys of these businesses – all of whom are aspiring to sustainability leadership.

● 76% have committed to being net zero carbon.

rose from 73% to 78% .

NATURE & BIODIVERSITY

22[%]

We continue to encourage all of our members to sign up to the WorldGBC Net Zero Carbon Buildings Commitment, which challenges the building and construction sector to halve emissions in their portfolios by 2030 and advocates for a total decarbonisation by 2050. UKGBC’s support for signatories to this Commitment has been provided through facilitating a dedicated Forum where we convene businesses together to share lessons learnt and brainstorm ways of overcoming common challenges.

74[%]

JUDITH EVERETT

EXECUTIVE DIRECTOR – PURPOSE, SUSTAINABILITY & STAKEHOLDER THE CROWN ESTATE

The number citing use of a Social Value measurement framework or tool rose from 18% to 22% .

UKGBC is also proud to be the first organisation officially recognised as a Race to Zero Accelerator, and we are encouraging all of our members to set ambitious climate commitments that match the campaign criteria (for our Gold Leaf members it is a membership requirement) . The Race is a UNFCCC-backed campaign, and those that commit to it all have the same goals: halving emissions by 2030 and achieving net zero by 2050 at the latest.

The number committing to enhancing nature & biodiversity rose from 51% to 74% .

In the coming financial year, we intend to convene our members together through more of these dedicated forums – both topic specific and sub-sector specific – to significantly increase the opportunities for shared knowledge and short-circuiting the organisational learning journeys to scale up action faster ■

Since May 2021 our Gold Leaf members are required to sign up to the Race to Zero, and so far:

● [58%][ have done so ] [(up from] 38% when we fi rst announced this new requirement) .

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Co-creating Guidance and Sharing Best Practice

One of UKGBC’s key aims is to foster collaboration between our members. We believe that by convening and sharing knowledge & best practice we can accelerate solutions to urgently tackle the environmental and social challenges we face.

Our work is shaped by our membership at every level. Our Members Advisory Group provides strategic advice, feedback and support on key priorities, programmes and membership activities. In addition, our forums across all of our impact areas convene regularly to discuss common sustainability challenges.

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

For nearly all our large projects we bring together Task Groups to share knowledge, ensuring that the resulting output is reflective of our collaborative thinking. Our Net Zero Whole Life Carbon Roadmap, launched at COP26, brought together a significant breadth of stakeholders, with a crosssector Steering Group alongside four Task Groups responsible for developing its content ■

Analysis of corporate commitments and achievements e.g. Net Zero Carbon Buildings Comment Forum.

Collaborative research reports e.g. Whole Life Carbon Roadmap.

Guidance and toolkits Viable sustainable solutions e.g. Framework for delivering e.g. Solutions Library. Social Value.

Best practice case studies e.g. Commercial Playbook.

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:

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Gain valuable insights from across the Make new contacts and extend
built environment value chain. your network.
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Enter into commercial partnerships Identify start-ups or entrepreneurs who with organisations that share your have come up with an innovative idea sustainability goals. or solution to overcome sustainable built environment challenges.

Collaborate with others to advance your sustainability journey.

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Showcasing Innovative Solutions

A significant step change in the sector’s environmental and social impact is required to achieve UKGBC’s vision for a sustainable built environment. Therefore, we run a number of initiatives designed to foster collaboration between our members so as to find and implement tangible solutions to their sustainability challenges.

In February 2022, we launched a couple of Nature Based Solutions (NBS) Challenges looking for practical solutions for existing buildings to be made more climate resilient and for ways in which communities and local authorities can implement and assess the impact of NBS to enhance climate resilience. Thirty new solutions were sourced and we will be launching further challenges soon ■

Our new Solutions Library, launched in June 2021, is designed to enable our members to meet their ever more ambitious commitments. The Library already offers over 150 practical and commercially viable solutions and case studies to help address common sustainability challenges across the sector.

Indicate that wanting to identify, ‘solutions/ pathways/frameworks to accelerate sustainable outcomes’ is one of their primary reasons for being a member.

The new ‘Solutions’ part of the UKGBC website also gives members the opportunity to submit a challenge that they need help solving; using our unique convening powers we then publicly crowdsource to find solutions to those challenges.

Fostering Knowledge Sharing

UKGBC is committed to knowledge sharing and networking in order to facilitate the change needed in the built environment. We have an expanding community of Innovative Start-Up members, which now totals over 40, and by connecting them with our established members, we are helping to bring fresh and practical solutions to the climate crisis.

Our Innovative Start-Up Forum – launched in July 2021 – provides a collaborative and informal space open to all UKGBC Start-Up members where they can explore shared challenges and solutions ■

A s an early-stage company who puts sustainable innovation front and centre, being a start-up member and part of the community is key! The innovative start-up forum is hosted once a quarter and brings together organisations that span the built environment to discuss their approach towards innovation, share challenges and discuss collaboration opportunities. This is a unique and extremely valuable experience to unlock and accelerate innovative solutions to drive us closer to an improved built environment.“

NATASHA BOULDING CEO AND CO-FOUNDER SPHERA

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Equipping Professionals with Knowledge, Skills, and Competencies

Impactful, inspiring and accessible learning is at the heart of our mission at UKGBC.

This financial year it was great to be able to organise in-person events again following the pandemic, and we have embraced the opportunities that hybrid learning can bring; broadening the accessibility of our events.

including webinars, research and workshops, learned about the key principles of green building and construction.

including webinars, research and aking part in Second

workshops, learned about the key T Nature Live was a great principles of green building and experience, not only for spending construction. time with like-minded people from Our Course Mail Series, designed many aspects of the industry and to provide shareable entry-level colleagues but also for the vast knowledge on key sustainability amount of information received! and built environment topics

in easy-to-read emails has also Definitely improved my ‘Second

continued throughout year. Nature’ thinking

Alongside all of this we have that now I am

also been running one-off virtual looking forward events such as Build Better Now, to applying to as launched at COP26, and Around many projects as the World in 80 Case Studies, a collection of sustainable building possible.“ case studies from across the world FEDERICA ROMEO BEATTIE presented in the form of webinars. ASSOCIATE, SQUIRE AND PARTNERS

Our Learning & Development team play a vital role in keeping us connected to our members and this year hosted 28 Lunch and Learn programmes covering different aspects of sustainability in the built environment, as well as bespoke learning opportunities.

Second Nature LIVE, an immersive learning programme drawing upon live projects, was this year run in collaboration with IHG Hotels & Resorts, offering participants the chance to apply transformational sustainability thinking to the hospitality sector. The event was aimed at non-sustainability professionals who, through a host of different learning approaches

This coming year we intend to continue providing a diverse and comprehensive programme of learning opportunities to our members, both online and in person ■

of 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. (Up from 65% last year).

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19
IMPACT REPORT
2021›22
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W hat a truly inspirational but practical leadership course, I enjoyed every minute, even the bits where I was way out of my comfort zone. Elfrida and her team created such a safe space to deeply explore our personal purpose and the change we want to see. I really feel like I’ve finished the course with a group of professional friends and I hope those relationships continue to grow over the coming months and years.“

PENNY GOWLER DIRECTOR & HEAD OF SUSTAINABILITY, ELIOTT WOOD

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Activating Transformational Leadership

Nurturing transformational leadership in individuals working in the sector is central to UKGBC’s theory of change. We believe that it takes strong personal leadership skills and a clear direction to drive transformative, climate-positive change in organisations and businesses. Our leadership programmes have What became clear across our now been running for a number of programmes, was the importance years, but this financial year was of being in, and learning from, one to remember. Following the nature. In our leadership courses, Covid-19 lockdowns, it was brilliant we give all our participants the to have everyone back meeting in opportunity to reflect on their own person and collaborating together sustainability purpose, away from on all of our programmes: their day to day responsibilities.

What became clear across our programmes, was the importance of being in, and learning from, nature. In our leadership courses, we give all our participants the opportunity to reflect on their own sustainability purpose, away from their day to day responsibilities.

Outside of working in nature, participants across our three programmes were able to benefit from a range of expert inputs and high-profile keynote speakers; learning a variety of skills, including a spotlight on storytelling.

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80 [[+]]
Member Organisations in our Leaders Network.
+
91 /100
IMPACT REPORT
2021›22
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80[[+]]

Member Organisations in our Leaders Network. + W e do not have control over all that happens to 91 /100 us, but we can definitely decide how to react and not be reduced by them. Average score on the extent the programme This seems just like enabled them to feel clear on their purpose (0 = not at all, 100 = very clear) for Change common sense but Accelerator 2021. I had to reinforce it and thanks to the Future Leaders 2021 programme now it is a part of me.“ 90 /100[[+]]

90 /100[[+]]

TANIA GUERRA

PRINCIPAL MECHANICAL ENGINEER, CHAMPMANBDSP

Average score on the extent the programme enabled them to feel clear on their purpose (0 = not at all, 100 = very clear) for Change Accelerator 2021.

T he future leaders course was incredibly beneficial to me as an individual, as well as to me as part of a company that is trying to help drive the sustainability of the built environment. I learnt so much about us as human beings and will be referring back to everything we learnt throughout my career.“

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75 [%]
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Of members said UKGBC had been successful or very successful at inspiring leaders to drive transformational change.

LAURA BATTY ASSOCIATE, TECHNICAL RESEARCH & SUSTAINABILITY , HEYNE TILLETT STEEL

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IMPACT INSIGHTS Influencing Progressive National Policies UKGBC is committed to and has a strong track recordto and has a strong track record in galvanising its membership to shape and inform government policy.

UKGBC is committed to and has a strong track recordto and has a strong track record in galvanising its membership to shape and inform government policy.

This financial year some of our key aims were to: influence the government’s Net Zero Strategy and Heat and Buildings Strategy; deliver our Net Zero Whole Life Carbon Roadmap and in particular raise awareness of the need for a nationwide programme of home retrofit, and the role of the planning system in achieving netzero carbon.

until 2022, in July we welcomed the changes to the National Model Design Code for England, which incorporated many of our suggestions.

COP26 dominated the financial year, and a couple of weeks ahead of this critical event we saw the release of government’s Heat and Building’s Strategy and Net Zero Strategy.

Our impact on all these fronts during this financial year underscores our growing influence on policy, albeit we continue to call for a much stronger policy framework across all our key impact areas.

At UKGBC we identified that the Heat and Buildings Strategy could be a key opportunity for Downing Street to introduce meaningful, positive change, so we worked hard in the run up to lobby government to take advantage of this strategy. However, while it was encouraging to see the growing recognition that fossil fuels must be phased out, we were disappointed at the detail and the failure to address some of UKGBC’s key priorities specifically the energy efficiency of buildings. In the months following, we have used our Whole Life Carbon Roadmap, launched in November, to work with government to shape legislation moving forward.

In July we welcomed the changes to the National Model Design Code for England, which incorporated many of our suggestions.

Firstly, we continued to push for a more climate-centric approach to the Planning system, and wrote to the Prime Minister in the summer, alongside the Aldersgate Group and over 100 prominent business leaders, calling for the net zero transition, and nature and climate resilience, to be at the heart of the new planning reforms. Although these reforms were delayed

T he publication in 2020 of the National Model Design Code, together with the National Design Guide, by the Ministry of Housing Communities and Local Government, helps put design quality and sustainability back into the heart of the planning system. It followed extensive consultation with industry, professional leaders and expert bodies, including UKGBC, which served as an important source of knowledge that helped inform the detailed guidance on carbon, energy and wider environmental matters.“

ANDY VON BRADSKY FORMER HEAD OF ARCHITECTURE MHCLG 2016-2021

2022 has been tumultuous so far, with the energy crisis looming large.

In collaboration with our membership, we wrote to the Chancellor ahead of his Spring Statement urging him to prioritise support for domestic energy efficiency and low carbon heat. It was pleasing to see one of our proposals regarding the VAT cut on energy saving measures taken forward, however, more needs to be done.

UKGBC has built strong relationships with ministers and policy-makers, and we are having ongoing conversations with them on all of these fronts, including presenting our Roadmap. We endeavour to see the impact of this in the next fiscal year ■

It remains our view that a central way to tackle the energy crisis, as well as the UK’s transition to net zero, is to reduce energy demand, and we will continue to push for the large-scale retrofitting of the UK’s housing stock, as outlined in our Net Zero Whole Life Carbon Roadmap.

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MEMBER SURVEY 2022 2021 2020
3.32
How successful has UKGBC
at influencing national 0 1 2 3 4 5
government policy?
3.6 3.65
60 140
Meetings with Westminster Paying members involved in National consultations
(last year 56). national policy work (up from 116 or inquiries responded to
last year, and 73 the year before). [14] (up from 6 last year).
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Supporting Local Policy-Making and Leadership

Central government alone cannot solve the carbon crisis. Local governments are some of the most powerful catalysts for change in the built environment and throughout this financial year we continued to collaborate with local and combined authorities throughout the UK to further accelerate their already impressive sustainability outcomes.

needs to drive forward retrofit at scale. With this in mind, we ran a series of 5 workshops with local government and industry members to help develop a ‘Regional Retrofit Mobilisation Plan’. The workshops explored issues such as how authorities can build the business case for retrofit, the different delivery options and the types of finance needed to initiate retrofit projects – both at the local authority and individual householder level. The Mobilisation Plan will be finalised and published in 2022.

the culmination of two years’ work as part of the European Union Horizon-2020 BUILD UPON project, a collaboration alongside World GBC, the Building Performance Institute Europe, seven European Green Building Councils and over 30 local authorities across Europe.

Recognising the vital role that retrofitting the UK’s existing buildings will play in achieving net zero by 2050, the main focus of our work with local government this year has been on retrofit – particularly how to break the deadlock and drive forward the mass scale retrofit of existing homes.

It defines a number of environmental, social and economic indicators that can be measured in a simple and standardised way at city or project level on any retrofit project, enabling local governments to track the benefits of their renovation schemes. Not only can this help inform best practice, but it can build the business case for future retrofit and increase public awareness of building renovation benefits ■

The Accelerator Cities project, which has been running since 2019, brings together some of the UK’s most ambitious local and combined authorities and other key stakeholders to enable collaboration and galvanise action. Building on existing UKGBC guidance for Local Authorities, such as the Retrofit Playbook, we shifted our focus this year to the ‘how’ of retrofit – the real nuts and bolts of what local government

To further support action on retrofit, the BUILD UPON2 Renovation Framework was launched in December, to enable local government to measure the multiple benefits of building retrofit. The Framework was

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MEMBER SURVEY 2022 2021 2020
3.17
How successful has UKGBC
been at influencing local 0 1 2 3 4 5
government policy?
3.39 3.5
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Increasing our Footprint in Scotland

At COP26, we fulfilled a long-held ambition to formalise our network in Scotland with the official launch of UKGBC Scotland, featuring guest speakers including Patrick Harvie MSP, the Minister for Zero Carbon, Active Travel and Tenants’ Rights.

Since the launch event, we have already joined the Scottish government’s Green Heat Finance Taskforce and held our first policy roundtable with the government following a survey of our Scottish members to feedback on policy priorities.

The Scottish government’s ambitious target to hit net zero nationwide by 2045 – five years ahead of the UK-wide target – as well as its launch of the Scottish Heat and Buildings Strategy ahead of COP26, and before central government had set out a UK-wide strategy, demonstrate the region’s progressive political policy environment.

This coming year we intend to continue reinvigorating our local networks, as well as our presence in Scotland. In Scotland specifically, we’re going to take steps to support the nation as best as we can, including widening our Scottish team. It remains our view that positive impact at a local level is key to driving forward policy change in central government ■

We are hoping through our new presence to further accelerate Scotland’s already impressive sustainability outcomes through a programme tailored to the unique needs and opportunities that the nation presents.

T he move to net zero is a huge transition, affecting communities, businesses and households all across Scotland and we must all work collaboratively to deliver it. I therefore warmly welcome UK Green Building Council’s intention to establish a permanent presence in Scotland. Their expertise will be invaluable as we work with the sector to deliver cleaner, greener, buildings for the people of Scotland through our Heat in Buildings Strategy.“

PATRICK HARVIE MSP MINISTER FOR ZERO CARBON BUILDINGS, ACTIVE TRAVEL AND TENANTS’ RIGHTS

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41 35
meetings with Local Authorities Number of Local Authorities Members involved
and Devolved Nations (more involved in cities programme. [55] in local policy.
than doubled since 20/21).
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IMPACT AREAS CLIMATE CHANGE: MITIGATION Advancing Net Zero Our Advancing Net Zero programme, launched in 2018, is designed to help this a reality. Since the launch of our Net Zero In response, we recently Carbon Buildings: A Framework Definition in 2019, which provides clarity on how to achieve net zero to better understand what a

CLIMATE CHANGE: MITIGATION

Our Advancing Net Zero programme, launched in 2018, is designed to help drive the transition to net zero in the UK by delivering the requisite emissions reductions in the build environment. The launch of our Whole Life Carbon Roadmap at COP26 is a significant step forward on the pathway to making this a reality.

Since the launch of our Net Zero Carbon Buildings: A Framework Definition in 2019, which provides clarity on how to achieve net zero carbon in buildings, we have had an increasing amount of interest in and demand for guidance on net zero buildings. In response we published a suite of additional guidance to build on the original Framework, including guidance on how to verify a building as net zero carbon.

In response, we recently conducted market analysis, in collaboration with industry bodies, to better understand what a potential verification scheme 411 needs to look like. The outcome of this analysis indicated a clear individuals involved in ANZ work need for a transparent verification (not including event attendees), across 24 opportunities. process, which could be delivered through an asset-level Net Zero Carbon Buildings Verification Standard. The most recent of these,

individuals involved in ANZ work (not including event attendees), across 24 opportunities.

The most recent of these, ‘Building the case for Net Zero: A case study for low carbon residential developments’, launched in Q4, relates to a low-rise residential scheme in south west Cambridgeshire, and demonstrates how housing developers can achieve a 20% embodied carbon reduction across low-rise residential developments through masterplan-level design interventions.

In the coming financial year, we will be collaborating with industry bodies to start planning the potential development of this Standard.

Currently, in order to achieve net zero in line with the Framework, and to ensure transparency, stakeholders must publicly disclose information for their buildings and obtain third-party verification against UKGBC’s minimum reporting template. However, we are conscious that this is not a certification scheme or ‘verification standard’.

Our Advancing Net Zero team has also continued working on a series of reports on Cost Evaluation, which examine the design and cost implications of minimising embodied carbon in real-world projects.

This latest report sits alongside the Whole Life Carbon Roadmap, all coordinated by the same team at UKGBC, which in the coming year will continue refining the Framework, and in particular verification, helping to create impact through tangible guidance on the road to Net Zero ■

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RENDER BY TERRENCE O’ROUKE
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U KGBC’s Advancing Net Zero programme
is helping to set the direction
and pace of change needed to
accelerate the uptake of net zero
carbon buildings, not only in the
UK, but also providing inspiration
internationally. From building
market demand through its
promotion of the WorldGBC Net
Zero Carbon Buildings Commitment,
to expanding guidance on net
zero buildings at the asset-level,
UKGBC is engaging all levers to
help make the net
zero challenge
achievable. The
Laudes Foundation
is a very proud
funder of this
work.“
JAMES DRINKWATER
HEAD OF BUILT ENVIRONMENT
LAUDES FOUNDATION
MEMBER SURVEY 2022 2021 2020
4.3
Extent to which UKGBC
supports its members in 0 1 2 3 4 5
climate change mitigation.
3.94 4.24
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IMPACT AREAS IMPACT FOCUS: WHOLE LIFE CARBON ROADMAP Creating the Roadmap The urgency to act on the climate crisis has never been greater and the built Throughout 2021, UKGBC has one of several roadmaps being been leading on a landmark developed by several European project with a cross-industry Green Building Councils under the team. Our Net Zero Whole Life World GBC’s Building Life Project. Carbon Roadmap for the UK To facilitate engagement on this Built Environment provides, for important project, we convened a the first time, a shared vision and pan-industry Steering Group which set of actions for achieving net provided review and strategic zero carbon by 2050 in the built oversight, while four Task Groups, environment. focused on New Build, Domestic The Roadmap is a multiRetrofit, Non-Domestic Retrofit stakeholder initiative – produced and Infrastructure, developed its by the sector and for the sector, content. with all data modelling conducted The Roadmap provides a coherent by Arup, and involving widespread pathway on the road to net zero, consultation with over 100 other detailing the actions that both entities and organisations. It is government and industry must

The urgency to act on the climate crisis has never been greater and the built environment’s role in this is clear. As a sector we are responsible for 25% of UK carbon emissions and have a pressing duty to accelerate decarbonisation within it.

take. It quantifies the specific emissions reductions across subsectors of the built environment that will need to take place yearon-year to meet the 2050 deadline.

one of several roadmaps being developed by several European Green Building Councils under the World GBC’s Building Life Project.

To facilitate engagement on this important project, we convened a pan-industry Steering Group which provided review and strategic oversight, while four Task Groups, focused on New Build, Domestic Retrofit, Non-Domestic Retrofit and Infrastructure, developed its content.

The main elements of the Roadmap include a Net Zero Carbon trajectory to 2050 for the built environment, as well as policy recommendations and industry action plans to deliver this scenario.

The Roadmap provides a coherent pathway on the road to net zero, detailing the actions that both government and industry must

108 paying members involved in the Roadmap’s creation

UK BUILT ENVIRONMENT GHG EMISSIONS 1990-2050

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350
300 Buildings (Non Domestic)
Embodied Carbon
250
200 Infrastructure
Embodied Carbon
Business as Usual
150 Infrastructure
Operational Carbon
100 Buildings
F-Gas
50 Buildings (Non Domestic)
Operational Carbon
0 Buildings (Domestic)
Operational Carbon
Buildings (Domestic)
Embodied Carbon
MtCOe2
1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
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unique individuals engaged in the activities.

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consultation responses.

Our launch of the Roadmap at COP26 brought together leading voices from across the industry, including former RIBA president and UKGBC chair Sunand Prasad as well as Lord Callanan, the Minister for Business, Energy and Corporate Responsibility, to discuss the vision and pathway to achieving net zero in the construction, operation and demolition of buildings and infrastructure.

We believe that everyone must play their part, and while the Roadmap is only the beginning, it provides a clearer path forward.

Since its launch we have continued sharing it as widely as possible both with industry and government and intend to continue doing so in the coming financial year.

1000[+] have watched the event launch. 94

media mentions – 100% positive.

2.8[M]

The coverage during COP alone had 2.8m potential reach.

2.4[K]

During COP26 there were 2.4k engagements on Social Media.

We are also developing a plan to evelopment of the Net

ensure the Roadmap is updated. D Zero Whole Life Carbon We held an event at the end of March to assess the sector’s Roadmap is a great example of response to date, considered key what can be achieved through policy asks from government and collaborative action and we now

explored next steps. have a shared vision and target We shall be holding similar events date for the decarbonisation of our

during the coming financial year sector. As an industry, our technical

to enable further dialogue on how expertise will help the milestones and actions in the us to play a vital Roadmap can be achieved, taking role in tackling more opportunities to ensure the trajectory has measured impact ■ the climate and biodiversity emergencies.“

COLIN WOOD CHIEF EXECUTIVE EUROPE AND INDIA, AECOM

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IMPACT AREAS CLIMATE RESILIENCE AND NATURE BASED SOLUTIONS

The IPCC’s report on Adaptation, Impacts and Vulnerability, published in February, serves as a dire warning that action is needed now to deal with the risks that climate change poses, particularly so in urban areas.

UKGBC’s ambition is for all buildings and infrastructure to be climate-resilient, and maximise environmental net gains, through the prioritisation of Nature-based Solutions (NBS), by 2030.

are there to help the sector increase its use of NBS as an adaptation measure.

We know that behavioural changes are needed for NBS to be implemented effectively, and while there are no quick fixes, our ‘Investing in a Greener Greater Manchester: A natureFor helping with based solutions investment Climate Adaptation. guide for local authorities’, launched in the summer, outlines a range of recommendations and opportunities for local authorities, demonstrating the benefits and 3.7 feasibility of large scale, publicsector-led NBS delivery. Nature and Biodiversity.

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Throughout the year, we have been coordinating consultation, facilitating collaboration, and sharing learning in order to empower our members and the wider built environment to achieve more ambitious NBS targets.

Our Principles for Delivering Urban Nature-based Solutions provides direction to developers and owners in the design and delivery of NBS, alongside practical case studies. Launched at the start of the financial year, the principles

Nature and Biodiversity.

from the Environment Agency and KGBC’s Resilience the Greater Manchester Combined U and NBS programme Authority, discussed the role tapped into the expertise of industry of NBS in adapting built assets and the need to find innovative professionals to produce tools and financial models for NBS. guidance that will enable the built environment industry to respond to Our subsequent launch of ‘Financing the Built Asset the twin challenges of the climate

Adaptation Gap: Short Report’ and biodiversity emergency. The

at COP26 summarises those value of this work, to developers, discussions and recommends will increase next steps for the sector. exponentially as While our involvement in the investors continue IGNITION project came to an to mitigate the end this year, UKGBC continues climate and nature to be committed to enabling

our members to understand related risks within

the value of NBS and we will be their portfolios.“ providing further opportunities for collaboration and learning ROB WINCH SENIOR ESG CONSULTANT throughout the coming year ■ HOARE LEA

Climate risk disclosure will become mandatory for large organisations and financial institutions from April 2022, following recommendations from the Task Force on Climaterelated Financial Disclosures (TCFD).

There were concerns on the lack of guidance on physical risk disclosure of built assets, and in February 2022 we published a Framework for Measuring and Reporting of Climate-related Physical Risks to Built Assets, which provides a methodology to measure such risk, and empowers businesses to better understand and plan for them.

The financing of adaptation measures remains a challenge, and our event on behalf of the IGNITION project, with support

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MEMBER SURVEY 2022 2021 2020
3.95
Extent to which UKGBC
supports its members in 0 1 2 3 4 5
climate change adaption.
3.66 3.95
3.7
Extent to which UKGBC supports
its members in embracing and
0 1 2 3 4 5
restoring nature and promoting
biodiversity.
3.27 3.85
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IMPACT AREAS RESOURCE USE

At UKGBC we are taking a solutions-based approach to encouraging circular economy principles among our members by raising awareness, developing practical guidance and influencing policy.

During this financial year, there were unforeseen circumstances that meant two large reports were not finalised, which limited our impact outside of our bottom up networking activities – however these exciting projects were launched, and will be published in full next year.

We have created a host of opportunities for members to share their learning on the implementation of circular economy principles, notably in our Circular Economy Live Project Forum.

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meetings of the Circular Economy Forum and Associated Working Groups.

The forum, a quarterly solutionsorientated space open to UKGBC members who are currently working on at least one live construction project, has proved to be a great success, facilitating lots of new conversations between different parts of the sector.

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Following COP26 in November, we sent out the industry survey that will inform the forthcoming guidance on Whole Life Carbon Reductions via Circular Economy Principles. The report will set out both the evidence and business case for using circular economy principles to support whole life carbon reductions.

individuals engaged in the Circular Economy Work.

We also have member-led Working Groups outside the main forum, which discuss specific aspects of the Circular Economy including material reuse and measuring the circularity of built assets, and we intend to continue sharing the findings of these online throughout the coming financial year.

Additionally, our next project, System Enablers for a Circular Economy was launched in March and aims to tackle the barriers to further adoption at scale of Circular Economy principles. The launch event saw our Partners discuss the challenges they face in this regard, and members too are encouraged to share their views interactively. All of this will help inform our upcoming work in this area ■

Our involvement in the CIRCuIT programme, an EU-funded project involving 29 European partners across the value chain, which looks to apply circular economy thinking at a city level, is ongoing, and there will be further opportunities for our members to get involved in this programme.

KGBC’s Circular Economy U Forum gives the members and I a valuable opportunity to share ideas and pool resource, so that we can move ideas forward. In the Working Groups we focus on specific topics, digging into the detail with the aim to share our findings with ~~the wider industry. It’s great~~ to work with others in the industry who I’m not connected with through projects, and to be able to help the industry progress.“

STEVE GILCHRIST PROJECT DIRECTOR GROSVENOR PROPERTY UK

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MEMBER SURVEY 2022 2021 2020
3.83
Extent to which UKGBC supports
in eliminating waste and 0 1 2 3 4 5
maximising resource efficiency.
3.41 4.03
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IMPACT AREAS SOCIAL VALUE AND HEALTH AND WELLBEING Social value, as well as health and wellbeing, have living crisis. Carbon commitments have been rising across the built environment, and, as they do so, we have been focusing our efforts on ensuring that we have a just transition to net zero; one that ensures that no one is left behind. We are conscious that decarbonisation has the potential to deepen existing inequalities in society, and our that can be fexibly applied to any focus is to support a transition to net zero in a way that ‘levels up’ communities. Now complete, UKGBC’s Social Value programme supported the

Social value, as well as health and wellbeing, have risen further up the nation’s agenda as we learn to live with the impact of Covid as well as the cost of living crisis.

U KGBC has played a critical role in facilitating knowledge sharing of this important issue for the industry. UKGBC’s resources are invaluable in terms of setting a standard for delivery in this emerging professional discipline and helping to ensure that work is about creating real, additional impact for our communities.“

We have since then further refned these principles through various means, including a social value framework. This fnancial year we have continued to further develop this framework by providing a Guide for Delivering Social Value on Built Environment Projects.

This offers a step-by-step process that can be fexibly applied to any project of any scale – from a single built asset to an entire urban regeneration project.

SOPHIA GIBSON ASSOCIATE DIRECTOR - SOCIAL VALUE LEAD CBRE

In the coming year, we will be drilling down further into the wider social impact of a more sustainable built environment; partly through a project to map the skills, jobs and capabilities needed to deliver net zero ■

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MEMBER SURVEY 2022 2021 2020
3.88
Extent to which UKGBC supports
its members in creating long term
0 1 2 3 4 5
social value and improving quality
of life for people.
3.54 4.03
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IMPACT REPORT
2021›22
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IMPACT AREAS BUILD BETTER NOW

Governments worldwide have committed to a legally binding target of net zero emissions by 2050. We know why we need to accelerate climate action; the question is how? The built environment has a central role to play in supporting the world’s transition to a net zero carbon economy.

Launching on the first day of COP26 gave the sector a strong presence as well as a voice at the Glasgow climate conference, demonstrating how much can be achieved if we work together cohesively. Particularly, at a conference that was dismissed and criticised as being inaccessible – both the virtual exhibition and events series were a way for those worldwide to access tangible climate solutions.

To answer this question UKGBC, with over 150 partners from the industry, created Build Better Now. Build Better Now was an engaging, virtual experience and event series showcasing some of the most progressive built environment projects from around the world which demonstrate the art of the possible. From climate mitigation and adaptation to natural resource use and nature-based solutions, Build Better Now raised awareness of the environmental impact of the buildings and cities we inhabit, & offers innovative and practical solutions to mitigating climate change and highlights how a more responsible and sustainable built

Response to the Virtual Exhibition space, designed by AECOM, was overwhelmingly positive. Including video commentaries from Grand Designs presenter, Kevin McCloud, and circular economy

environment is within our grasp.

advocate, Ellen McArthur, as well as interactive elements to share solutions in unique ways.

Our events space, meanwhile, features a series of learning opportunities through tours, talks and panel discussions with speakers from across the global built environment sector.

The daily programme of events was livestreamed at the Glasgow conference last November and followed the themes of the official COP26 programme.

While COP26 may be over, our exhibition remains online, and we continue to have a lot of interest with daily visitors to the site. Our events too remain available to watch on demand.

Together, we believe that they create a legacy that will live far beyond the Glasgow climate conference and inspire the sector globally to create more sustainable buildings and cities in the future ■

40[K] 86 681 Unique Page Views to Pieces of coverage Endorsements on social media virtualpavilion.co over the month.

43 76 44 Delivery partners Commercial Partners Event partners 150[+] Organisations and stakeholders [3,000] Live Events views[+]

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UKGBC
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O U R I M PA C T AT U K G B C
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OUR IMPACT AT UKGBC

As well as the impact we create through our traditional work streams, it’s important to us here at UKGBC that our internal activities reflect our key values and help contribute to creating a better built environment.

Staff Wellbeing and Workplace Culture

and, if comfortable, include their pronouns in their email signature to create a more inclusive environment.

Continuing our Journey to Net Zero

Reacting to the changes in our ways of working due to Covid, the UKGBC Green Team reviewed our own energy use and offsetting strategy to ensure we could maintain our organisational commitments while working from home.

As our team grew, it became clear that it was important to introduce a member of staff responsible for HR – so in June 2021 UKGBC welcomed aboard its first People Manager. Having a dedicated People Manager has enabled UKGBC to provide more support for our employees – for example by introducing mental health and wellbeing assistance through both awareness trainings and MetLife’s Group Life Employee Assistance Programme (EAP) that allows employees to access counselling and support.

One of the group’s key focuses has been on improving our hiring process so that we are welcoming to those from all different backgrounds. This includes, introducing blind hiring through hireful, scanning all job adverts for gender bias, updating our Diversity & Inclusion Statement so that it accurately reflects our values and hiring through organisations like 10,000 Black Interns to widen our hiring pool ■

We calculated our emissions using a home working methodology and are adjusting our offsetting policy in line with best practice in UKGBCs industry guidance. This includes an evaluation of the type of offsets being utilised to ensure additionality, and positive change.

Diversity and Inclusion

A holistic approach has been taken this year when reviewing UKGBC’s impact as an organisation. Additional to carbon, the team have reviewed areas where impact can be evolved including UKGBC catering and food/beverage guidelines, the use of charity volunteering days and office material usage.

This year saw the second year of our Diversity and Inclusion (D&I) Working Group, who continued to rethink how we work at UKGBC to foster a more inclusive environment. This began with our partnership with Inclusive Employees beginning in earnest, including training sessions for our whole team. Inspired by these conversations, a team member from the D&I working group shared with the whole team about the importance and use of pronouns in conversation and email signatures at work. In turn, this inspired more team members to engage with issues facing the LGBT+ community

In light of the shift from the office to home, the Green Team have found alternative and creative ways to ensure each member is involved in a sustainable activity whilst remote. This has included teamwide distribution of seed packets; encouraging each individual to care for and grow their own plants at home.

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40 UPCOMING IN THE YEAR AHEAD

It has been an unprecedented year at UKGBC; one in which we have seen the sector move from talk about climate change to meaningful action.

● Investing more in our Resilience and Nature programme, including critical target setting, to ensure the road to effective climate adaptation, as well as climate mitigation, is clearly outlined, endorsed by industry and comprehensively underway.

This coming year we plan on building on this momentum, facilitating further and faster climate action in the sector. Influencing policies and engaging with government at all levels will be central to this, as well as providing actionable guidance for change, and further opportunities for learning and collaboration for our members.

Improving the Membership experience and performance

We have committed to a threeyear plan, as laid out in our 2025 Strategy. This will take us halfway through this crucial decade and is a critical milestone in our journey to a better built environment.

Putting climate mitigation and resilience front and centre:

Shaping progressive policy

As we move forward, we are committed to supporting our members and the wider sector to deliver even more measurable change. We will be building on the growth we have experienced this year while refining our processes even further, so that we are best placed to catalyse even greater impact in the sector ■

of members want us to extend the minimum sustainability requirement of membership. (This is up from 80% last year).

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PROGRAMME AND PROJECT PARTNERS FY 2021-22 Advancing Net Zero Programme Partners Lead Partner:

Corporate Partners

Social Value Partners

Resillience and NBS

Circular Economy

Whole Life Carbon Roadmap

Leaders Network With thanks to our strategic partners: And our events partner:

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31 MARCH 2022

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REPORTS

REFERENCE AND ADMINISTRATIVE DETAILS

Status
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 organisation is a charitable company limited by
guarantee, incorporated on 29 September 2009 and
registered as a charity on 24 March 2010.
Governing document
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.
Board of Trustees
Estelle Bailey
Basil Demeroutis (Co-opted)
Judith Everett
Jerome Frost OBE
Mina Hasman (Co-opted)
Bill Hughes
Chris Oglesby		 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
Director of Policy and Places
Director of Membership & Partnerships
Director of Experiential Learning and Leadership
Director of Business Transformation
Julie Hirigoyen
Simon McWhirter
Munish Datta
Elfrida Hamilton-Russell
Alastair Mant
Registered offce
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 2022

The trustees present their annual report and the audited financial statements of UKGBC Limited (UKGBC) for the year ended 31 March 2022.

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 75 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:-

1.1

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.

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FINANCIAL REVIEW

RESULTS FOR THE YEAR

Demand increased steeply for UKGBC’s services in supporting the greening of the Built Environment. This is reflected in greater income and a corresponding expansion in the organisation, and its expenditure.

Total income for the year increased by £783,499 (34%) to £3,090,449 (2021: £2,306,950) compared to the previous year.

The primary income source, accounting for 57% of total income (2021: 62%) is membership subscriptions. These have increased by £344,330 on 2021, with total membership fees in the year amounting to £1,771,483 (2021: £1,427,153).

Grant and contract income has decreased by 25% to £450,695 (2021: £599,099) Securing funds from the Laudes Foundation, Kobenhavns Kommune and Greater Manchester Combined Authority.

Partnership Income increased by £456,547 to £555,414. Income was received from multiple partners to support the steep increase in demand for programs.

Education course income increased by 38% to £224,080 (2021: £162,502).

There was no major event income in the year (2021: £nil) as UKGBC did not organise any major sponsored events in FY2021-22.

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 amounts to £47,703 (2020: £31,575).

Total expenditure increased by £854,595 in the year to £2,983,265 (2021: £2,128,670) largely a result of expenditure associated with staff costs. Staff costs remain our biggest single cost, comprising 63% (2021: 64%) of costs at £1,921,593 (2021: £1,562,791) in total.

Support costs in the year came to £651,527 versus an equivalent of £581,410 in the previous year, which is mainly as a result of increased staff costs due to the recruitment of dedicated HR and Operations staff.

Overall the charity generated a surplus of £107,184 (2021: £178,280) in the year, which increased charitable funds to £1,124,893 (2021: £1,017,709).

Where our funds come from

Membership 57% Education Course Fees 8% Grants 15% Partnership 18% Other Income 2%

Analysis of our expenditure Improving Sustainability 54% Education 15% Raising Awareness 9% Support Costs 22%

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FINANCIAL REVIEW CONTINUED RESERVES POLICY, FINANCIAL POSITION AND GOING CONCERN ASSESSMENT

RESERVES POLICY, FINANCIAL POSITION AND GOING CONCERN ASSESSMENT

Change in Reserves policy

Previously, UKGBC maintained a minimum reserves requirement equivalent to 4 months unrestricted expenditure and capable of absorbing a 40% loss in annual membership income.

UKGBC Membership income is received annually in advance, over a rolling year, and an average 6 months income is deferred at any time. The trustees now view deferred Income as the main component of the buffer against financial difficulties. Holding a reserve in addition to deferred income would only be required as a top up to provide a minimum level of cover – if it were needed.

Over the next 3 years, the trustees propose investment budgets that will increase UKGBC’s reach and consume excess reserves. This approach will be reviewed annually. This policy includes a provision to assess whether deferred membership Income is at a level which ensures that UKGBC’s core activities could continue during a period of unforeseen difficulty and that a proportion of funds be maintained on easy access deposit. The calculation of the required level of deferred membership Income 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 minimum level of deferred membership income (which fall under the Charity Commission’s recommended reserve policy guidelines for less complex charities) are that:

In using each of these in turn, the trustees of UKGBC calculate and test whether the level of deferred Income is adequate. To feed into the Budget FY2022-23, the reserves policy was reviewed and updated in March 2022.

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 four months. The level of deferred Income provision, based on four months of UKGBC’s FY2022-23 budgeted unrestricted expenditure (excluding depreciation) is approximately £839,000.

Risks associated with the loss of a source of income

Membership fees constitute 58% of UKGBC’s income. Despite the economic hardship experienced during the COVID-19 pandemic in FY21-2, membership fees grew strongly £344,000 (24%).

However, the trustees view the current wider geopolitical situation and economic outlook as a potential trigger of major recession in the UK. Based on the total budgeted income from membership renewals in FY202223 being £2.03m, applying a worst-case scenario of 20% attrition would give rise to a loss of income of approximately £185k. If membership attrition is greater than 20%, cost-mitigating strategies will be implemented to reduce the impact of this on the charity.

UKGBC proposal for FY2022-23 is another ‘extraordinary investment budget’ aiming to fully harness the unprecedented 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 are just some of the drivers converting into significant growth in membership and high grant and sponsorship funding commitments secured. The board is supportive of the UKGBC executive team to re-invest 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, the minimum level of deferred income for 2022/23 would be between £185,000 and £839,000, as determined by the two tests above.

At 31 March 2022, deferred membership Income was £1,009,407 which is in excess of the minimum requirement. In addition, free reserves (excluding the net book value of fixed assets of £13,776) amounted to £1,111,117.

Going concern assessment

Trustees have assessed the impact of external influences on the charities activities, and the adequacy of resources to operate in the current climate over the next financial period.

Based on the current plans, assumptions and forecasts, whilst acknowledging there are 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 interest-bearing current financial statements with the charity’s bankers.

The invested funds held in fixed deposit financial statements together with those in interestbearing current financial statements achieved an average rate of return 0.54% (2021: – 0.38%).

Fundraising statement

Over the course of FY2021-22, 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.

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PRINCIPAL RISK AND UNCERTAINTIES The Board of Trustees has the overall responsibility for the governance of risks and ensures

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. So, 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 R&A 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
EXTERNAL (Environmental):
Lack of capacity to meet
unprecedented demand		 ACTION TAKEN TO MITIGATE THE RISK
Acceleration of resourcing at all levels and strict prioritisation of which
opportunities to pursue. Some re-jigging of responsibilities taking
place within the Business Transformation team to overcome individual
staff concerns about workload vs capacity.
More regular reviews of staff time allocation – reality vs planned –
to understand true cost of delivering key projects or initiatives.
Comprehensive review of member value proposition underway
to meet member demand through centralised services / outputs.
PEOPLE: UKGBC has appointed a People Manager enabling us to put even
Staff turnover more time to people related initiatives including health & wellbeing,
training, D&I, team get togethers, socials etc – all of which are crucial
components of a People Centric culture. There will be greater focus on
career development and succession planning in 2022.
Annual staff survey conducted to seek feedback in key areas with
results in 2021 being highest they have ever been. Currently work
underway to strengthen core values and team working practices. Exit
interviews are conducted with all voluntary leavers – analysed for trend
reporting. Comprehensive salary benchmarking conducted in Jan
2022 – with proposals to close gaps for signifcant deviations. LT are all
on 3 month notice periods, and CEO on 6 months notice. Key person
insurance exists for LT.
EXTERNAL (Economic): UKGBC has substantial reserves at year end 2021/22 and signifcant
Economic downturn & market amounts of deferred income in the bank – all of which offers good
uncertainty due to war in Ukraine / protection against external fnancial shocks. A revised member value
COVID / other proposition has been developed – to be rolled out in Apr 2022, in
particular the investment in centralised capacity to conduct research
and convene members together across sub-sectors for shared learning
and knowledge exchange. Attrition reviewed regularly by CEO, LT and
R&A committee – currently the lowest it has ever been. Alternative
funding sources (philanthropic, governmental) constantly being sought.
FINANCIAL: Clear roles and responsibilities in terms of data protection and
Charities being increasingly increased training, security measures (e.g. Multi Factor Authentifcation,
targeted for Cyber Fraud and forced password reset, virus scans, geographical restrictions and
breach of data protection Mimecast) have been deployed along with several other actions.

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STRUCTURE, GOVERNANCE AND MANAGEMENT Governing Document UKGBC Limited was formed in 2006 as a company limited

TRUSTEE
Estelle Bailey		 APPOINTED/RESIGNED
Co-opted 30 June 2021 elected
16 September 2021
Basil Demeroutis Co-opted 1 January 2022 for election
at the next AGM
Judith Everett
Jerome Frost OBE
Mina Hasman
Bill Hughes
Chris Oglesby
David Partridge		 Co-Opted
Sunand Prasad
Victoria Quinlan
Lorna Walker
Rick Willmott
Derek Wilson		 Co-Opted

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

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.

The following trustees were in office and served between 1 April 2021 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.

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:

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STRUCTURE, GOVERNANCE AND MANAGEMENT CONTINUED The trustees are responsible for keeping proper accounting records that disclose with reasonable

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 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.

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.

Each of the trustees confirms that:

Approved by the trustees and signed on their behalf by:

Chairman: Sunand Prasad

Date: 29th June 2022

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF UKGBC LIMITED

Basis for opinion

Opinion

We have audited the financial statements of UKGBC Limited (the ‘charitable company’) for the year ended 31 March 2022 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).

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.

In our opinion, the financial statements:

Conclusions relating

to going concern

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.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF UKGBC LIMITED CONTINUED Other information The other information comprises the information included in Act 2006

Opinions on other matters prescribed by the Companies Act 2006

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.

the trustees’ report, which is also the directors’ report for the purposes of company law has been prepared in accordance with applicable legal requirements.

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.

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:

Responsibilities of trustees

have not been kept, or As explained more fully in ● the financial statements are the trustees’ responsibilities not in agreement with the statement, the trustees (who are also the directors of the charitable accounting records and returns; or company for the purposes of company law) are responsible for ● certain disclosures of trustees’ the preparation of the financial remuneration specified by law statements and for being satisfied are not made; or that they give a true and fair view, ● we have not received all the and for such internal control as the information and explanations trustees determine is necessary to we require for our audit; or enable the preparation of financial statements that are free from ● the trustees were not entitled to prepare the financial 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 have nothing to report in this regard.

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

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 non-compliance. 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. 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.

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

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.

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: 29th June 2022

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FINANCIAL STATEMENTS STATEMENT OF FINANCIAL ACTIVITIES YEAR TO 31 MARCH 2022

Un- 2022 Un- 2021
restricted Restricted Total restricted Restricted Total
funds funds funds funds funds funds
Notes £ £ £ £ £ £
Income from:
Donations and legacies 1 58,803 - 58,803 31,575 - 31,575
Charitable activities 2
- Improving sustainability 2,248,497 450,695 2,699,192 1,459,339 559,099 2,018,439
- Education 236,580 - 236,580 162,502 - 162,502
- Raising awareness 90,900 - 90,900 80,430 1,980 82,410
Investments 4,974 - 4,974 3,460 - 3,460
Other sources - - - 8,564 - 8,564
Total income 2,639,754 450,695 3,090,449 1,745,870 561,079 2,306,950
Expenditure on:
Charitable activities 3
- Improving sustainability 1,550,576 513,361 2,063,937 973,129 566,470 1,558,262
- Education 598,618 - 598,618 359,468 - 354,548
- Raising awareness 320,710 - 320,710 216,564 1,980 215,860
Total expenditure 2,469,904 513,361 2,983,265 1,549,161 568,450 2,128,670
Net income (expenditure)
and movement in funds 5 169,850 (62,666) 107,184 185,650 (7,370) 178,280
Transfer between funds (21,301) 21,301 -
Reconciliation of funds
Brought forward at 1 April 972,527 45,182 1,017,709 786,877 52,552 839,429
Carried forward at 31 March 1,121,076 3,817 1,124,893 972,527 45,182 1,017,709

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

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

BALANCE SHEET

YEAR TO 31 MARCH 2022

Notes 2022
£		 2022
£
2021
£
2021
£
Fixed assets
Tangible fxed assets
Current assets
Debtors
Short term deposits
Cash at bank and in hand
7
8		 13,777
742,566
915,300
1,109,045		 555,367
910,381
1,109,275
19,577
Total income 2,766,911 2,575,023
Current liabilities
Creditors:amounts falling due within one year
9		 (1,655,795) (1,576,891)
Net current assets 1,111,116
998,132
Net current assets 1,124,893
1,017,709
The funds of the charity:
Unrestricted funds
- General funds
14		 1,121,076
972,527
1,121,076
972,527
Restricted funds
14		 3,817
45,182
Total charity funds 1,124,893
1,017,709

Approved by the trustees and sign

The principal accounting policies and notes on pages 65 to 75 form part of these financial statements.

Chairman: Sunand Prasad

Date: 29th June 2022

UKGBC Limited Company Registration Number: 01029239 (England and Wales)

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65

STATEMENT OF CASH FLOWS YEAR TO 31 MARCH 2022

PRINCIPLE ACCOUNTING POLICIES YEAR TO 31 MARCH 2022

----- Start of picture text -----
2022 2021
Notes £ £
Cash flows from operating activities
Net cash provided by operating activities A 4,831 489,749
Cash inflow from investing activities
Interest received 4,974 3,460
Purchase of tangible fixed assets (5,343) (7,615)
Proceeds from the sale of fixed assets 227 -
Net cash used in investing activities (142) (4,155)
Change in cash and cash equivalents in the year 4,689 485,594
Cash and cash equivalents at 1 April B 2,019,656 1,534,062
Total cash and cash equivalents at 31 March B 2,024,345 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
----- End of picture text -----

2022
£		 2021
£
Net income (as per the statement of financial
activities)
Adjustments for:
Depreciation charges
Deficiton sale of fixed assets
Investment income receivable
(Increase) decrease in debtors
Increase in creditors		 107,184
11,079
(162)
(4,974)
(187,198)
78,902		 178,280
8,838
(3,460)
14,900
291,191
-
Net cash provided by operating activities 4,831 489,749
B ANALYSIS OF CASH AND CASH EQUIVALENT
2022
£		 2021
£
Cash at bank and in hand
Short term deposits		 1,109,045
915,300		 1,109,275
910,381
Total cash and cash equivalents 2,024,345 2,019,656
C ANALYSIS OF CHANGES IN NET DEBT
At 31 March Cash At 31 March
2021 fows 2022
£ £ £
Cash at bank and in hand 1,109,275 (230) 1,109,045
Short term deposits 910,381 4,919 915,300
Total 2,019,656 4,689 2,024,345

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 2022 with comparative information provided for the year to 31 March 2021.

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 financial statements 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.

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 financial statements where judgements and estimates have been made include:

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.

They have concluded that although there is material uncertainty related to this, it is appropriate for the charity to continue to prepare the financial statements on the going concern basis.

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PRINCIPLE ACCOUNTING POLICIES

YEAR TO 31 MARCH 2022 CONTINUED

Going concern assessment

Trustees have assessed the impact of external influences on the charities activities, and the adequacy of resources to operate in the current climate over the next financial period.

Based on the current plans, assumptions and forecasts and in line with the reserves policy, the trustees are confident that there are sufficient funds. Additionally, should conditions deteriorate rapidly, there is capacity to cut costs. 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.

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.

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).

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

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.

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:

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

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.

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.

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69

YEAR TO 31 MARCH 2022

NOTES TO THE FINANCIAL STATEMENTS

1 INCOME FROM DONATIONS AND LEGACIES

2022
Total
£
2021
Total
£
Donations
Services donated
11,100
47,703
-
31,575
Total income
58,803
31,575

Included within donations and legacies are goods and services which have been donated to the charity during the year. This consists of venue hire £3,600 (2021: £nil) and Consultancy £44,103 (2021: £31,575).

2 INCOME FROM CHARITABLE ACTIVITIES

2 INCOME FROM CHARITABLE ACTIVITIES
2022 2021
£ £
Improving sustainability
Membership income 1,771,483 1,427,153
Partnership income 477,014 32,186
Grant & contract income 450,695 559,099
2,699,192 2,018,438
Education
Leaders Network sponsorship income 12,500 13,750
Education course income 224,080 148,752
236,580 162,502
Raising awareness
Grant & contract income - 1,980
Partnership income 78,400 66,680
Leaders Network sponsorshipincome 12,500 13,750
90,900 82,410
Total charitable income 3,026,672 2,263,350

3 EXPENDITURE ON CHARITABLE ACTIVITIES

Direct costs
Other
£		 Direct costs
Staff
£		 Support
costs
£		 2022
£
Improving sustainability
Education
Raising awareness		 559,895
193,415
138,925		 1,035,410
278,949
125,144		 468,632
126,254
56,641		 2,063,937
598,618
320,710
892,235 1,439,503 651,527 2,983,265
Direct costs
Other
£		 Direct costs
Staff
£		 Support
costs
£		 2021
£
Improving sustainability
Education
Raising awareness		 415,359
76,848
65,075		 718,050
175,964
95,964		 424,853
101,736
54,821		 1,558,262
354,548
215,860
557,282 989,978 581,410 2,128,670
4 ANALYSIS OF SUPPORT COSTS
Admin
Premises IT/Comms Staff Governance 2022
£ £ £ £ £
Improving sustainability 102,432 40,627 153,374 172,199 468,632
Education 27,596 10,945 41,321 46,392 126,254
Raising awareness 12,380 4,910 18,538 20,813 56,641
142,408 56,482 213,233 239,404 651,527
Admin
Premises IT/Comms Staff Governance 2021
£ £ £ £ £
Improving sustainability 95,286 32,179 112,410 184,978 424,853
Education 23,351 7,886 25,569 43,930 101,736
Raising awareness 12,735 4,301 14,217 23,568 54,821
131,372 44,366 153,196 252,476 581,410
Support costs are divided in theproportion of the direct staff costs of each activityarea, thus: Support costs are divided in theproportion of the direct staff costs of each activityarea, thus: Support costs are divided in theproportion of the direct staff costs of each activityarea, thus: Support costs are divided in theproportion of the direct staff costs of each activityarea, thus:
2022 2021
Improving sustainability 72% 73%
Education 19% 18%
Raising awareness 9% 10%

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CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

YEAR TO 31 MARCH 2022

5 NET INCOME FOR THE YEAR

This is stated after charging/crediting:

----- Start of picture text -----
|||| |---|---|---| |2022|2021| |£|£| |Auditor’s remuneration| |Audit|10,075|12,000| |-| |Tax compliance services|1,500| |-| |Other assurance services|1,780| |Depreciation|11,079|8,838| |Pension costs|103,790|90,459|

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6 STAFF COSTS AND REMUNERATION OF KEY MANAGEMENT PERSONNEL

Staff costs during the year were as follows:

----- Start of picture text -----
|||| |---|---|---| |2022|2021| |£|£| |Salaries and wages|1,587,767|1,311,018| |Social security costs|166,758|140,765| |Pension contributions|103,790|90,459| |Other employee costs|63,278|20,549| |1,921,593|1,562,791|

----- End of picture text -----

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

----- Start of picture text -----
|||| |---|---|---| |2022|2021| |Number|Number| |Charitable activities|30|22| |Support|5|3| |35|25|

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

----- Start of picture text -----
|||| |---|---|---| |2022|2021| |Number|Number| |£60,001 – £70,000|-|-| |£70,001 – £80,000|1|2| |£80,001 – £90,000|2|1| |£90,001 – £100,000|-|1| |£190,001 – £200,000|1|1| |4|5|

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One member of the team resigned and was replaced during the year, the Senior Management Team still comprises 5 people. These 5 roles are accruing pension contributions totalling £34,665 (2021:5 employees, accruing £35,462).

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 £621,448 (2021: £629,548).

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 FY2021-22 or FY2020-21.

7 TANGIBLE FIXED ASSETS

----- Start of picture text -----
|||||| |---|---|---|---|---| |Office|Leasehold| |equipment|Computers|Refurb|Total| |£|£|£|£| |Cost| |At 1 April 2021|60,034|50,270|133,343|243,647| |Additions|-|5,343|-|5.343| |Disposals|-|(1,723)|-|(1,723)| |Balance at 31 March 2022|60,034|53,890|133,343|247,267| |Depreciation| |At 1 April 2021|56,184|34,544|133,343|224,071| |Charge for the year|962|10,117|-|11,079| |-| |Released on disposal|(1,660)|(1,660)| |Balance at 31 March 202|57,146|43,002|133,343|233,490| |Net book value| |At 31 March 2022|2,888|10,889|-|13,777| |At 31 March 2021|3,850|15,726|-|19,578| |8 DEBTORS| |2022|2021| |£|£| |Trade debtors|520,774|389,690| |Prepayments|55,340|50,764| |Other debtors|166,452|114,913| |742,566|555,367|

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9 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

----- Start of picture text -----
||||| |---|---|---|---| |2022|2021| |£|£| |Trade creditors|113,783|94,165| |Other taxation and social security|152,118|141,841| |Deferred income (Note 10)|1,221,616|1,196,338| |Accruals|154,741|143,926| |Other creditors|13,46|7|621| |1,655,795|1,576,891|

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10 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

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|||| |---|---|---| |2022|2021| |£|£| |Deferred income at 1 April|1,196,338|927,393| |Applied during the year|1,221,616|1,196,338| |Released during the year|(1,196,338)|(927,393)| |Deferred income at 31 March|1,221,616|1,196,338|

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72

73

NOTES TO THE FINANCIAL STATEMENTS

YEAR TO 31 MARCH 2022

CONTINUED

11 FINANCIAL INSTRUMENTS

2022
£
2021
£
Financial assets measured at fair value
Financial liabilities measured at amortised cost		 2,545,286
(113,783)
2,409,346
(94,165)

12 Operating lease commitments

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

Equipment
Land and buildings
2022
£
2021
£
2022
£
2021
£
Leases which expire:
Within one year
Within two to fve years
9,668
13,981
4,747
2,374
28,405
135,295
34,086
-
23,649
7,121
28,405
169,381

13 ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS

13 ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS
Restricted General Total
Funds funds funds
£ £ 2022 £
Fixed assets - 13,777 13,777
Current assets 178,184 2,588,727 2,766,911
Current liabilities (174,367) (1,481,127) (1,655,795)
Net assets at 31 March 2021 3,817 1,121,076 1,124,893
Restricted General Total
Funds funds funds
£ £ 2021 £
Fixed assets - 19,577 19,577
Current assets 112,121 2,462,902 2,575,023
Current liabilities (66,939) (1,509,952) (1,576,891)
Net assets at 31 March 2020 45,182 972,527 1,017,709

14 ANALYSIS OF FUNDS

Balance at
1 April 2021
£		 Income
£		 Expenditure
£		 Transfer
£		 31 March
2022
£
Unrestricted funds
- General funds 972,527 2,639,755 (2,469,905) (21,301) 1,121,076
Restricted funds
- World GBC European Policy 6,508 6,705 (13,213) - -
- ANZ - - - - -
- Build Upon 2 38,674 111,980 (150,654) - -
- Circuit - - - - -
- Climate KIC – Accelerator Cities
- Climate KIC – Foreground
- Construction Innovation Hub		 -
-
-		 45,528
7,226
1,500		 (45,528)
(7,226)
(1,500)		 -
-
-		 -
-
-
- Ignition - 53,042 (49,225) - 3,817
- NBS Ellerman - 33,000 (33,000) - -
- Whole Life Carbon Roadmap 191,713 (213,014) 21,301 -
Restricted Funds Total 45,182 450,694 (513,360) 21,301 3,817
Charity total 1,017,709 3,090,449 (2,983,265) - 1,124,893

An annual deficit in the Whole Life Carbon Roadmap fund of £21,301 has been covered by a transfer from General Funds of the same value. The grant covers 90% of programme expenditure.

Balance at 31 March
1 April 2020 Income Expenditure 2021
£ £ £ £
Unrestricted funds
- General funds 786,877 1,745,870 (1,560,220) 972,527
Restricted funds
- World GBC European Policy 5,499 26,764 (25,755) 6,508
- ANZ - 155,691 (155,691) -
- Build Upon 2 47,053 35,718 (44,098) 38,674
- Circuit - 30,970 (30,970) -
- Climate KIC – Accelerator Cities
- Climate KIC – Foreground
- Construction Innovation Hub		 -
-
-		 121,749
68,447
33,000		 (121,749)
(68,447)
(33,000)		 -
-
-
- Ignition - 23,717 (23,717) -
- NBS Ellerman - 32,000 (32,000) -
- Whole Life Carbon Roadmap - 33,023 (33,023) -
Charity total 839,429 2,306,950 (2,128,670) 1,017,709

74

75

NOTES TO THE FINANCIAL STATEMENTS

YEAR TO 31 MARCH 2022

CONTINUED

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.

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.

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.

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.

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.

General Funds – Designated Fund

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

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 outstanding balances with related parties as at 31 March 2022 (2021: £nil). The total amount of donations received from trustees in the year was £nil (2021: £nil).

76

UK GREEN BUILDING COUNCIL

THE BUILDING CENTRE 26 STORE STREET LONDON WC1E 7BT

020 7580 0623 INFO@UKGBC.ORG UKGBC.ORG