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2022-03-31-accounts

TRUSTEES‘ ANNUAL REPORT 1

BLUE MARINE FOUNDATION

(A COMPANY LIMITED BY GUARANTEE)

Report and consolidated financial statements

YEAR ENDED 31 MARCH 2022

Company number: 07176743

BLUE MARINE FOUNDATION

TRUSTEES‘ ANNUAL REPORT

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2

Charity reference and administrative details

Charity registration number 1137209 Company registration number 07176743 Directors and Trustees G L Duffield C M J Gorell Barnes Dr A K O Brady Lord J S Deben D C Davies A S Blount Dr C Herweijer L A A Lake Lord R H R Benyon (resigned May 2021) Prof C M Roberts (resigned March 2022) Dr T P S Appleby (resigned March 2022) Executive Director C R H Clover Chief Executive Officer C Brook Finance Director L Smith FCCA Registered office Third Floor South Building Somerset House The Strand London WC2R 1LA Auditor Sayer Vincent LLP Invicta House 108-114 Golden Ln London EC1Y 0TL Bankers Coutts & Co 440 Strand London WC2R 0QS Solicitors Latham & Watkins LLP 99 Bishopsgate London EC2M 3XF

CONTENTS

(including Income and Expenditure Account)

Cover Image Credit: Henley Spiers

4 BLUE MARINE FOUNDATION

TRUSTEES‘ ANNUAL REPORT

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TRUSTEES’ ANNUAL REPORT

(INCLUDING DIRECTORS’ REPORT AND STRATEGIC REPORT)

Year ended 31 March 2022

The Trustees present their report and the audited Consolidated Financial Statements of Blue Marine Foundation (“Blue Marine” “the charitable company”) for the year ended 31 March 2022. The consolidated Financial Statements have been prepared in accordance with the accounting policies set out on pages 61 to 63 and with the provisions of the Statement of Recommended Practice (SORP): Accounting and Reporting by Charities (FRS 102).

Blue Marine Foundation is a charitable company limited by guarantee and became a registered charity on 30 July 2010.

Blue Marine’s mission

Blue Marine Foundation aims to restore the ocean to health by addressing widescale destruction of life and habitats in the ocean. Blue Marine is dedicated to creating marine reserves, tackling overfishing, restoring vital habitats and developing models of sustainable fishing. Blue Marine’s mission is to see 30 per cent of the world’s ocean under effective protection by 2030 and the other 70 per cent managed in a responsible way.

The ocean has undergone devastating change over the last century. Marine life is under threat from climate change, deoxygenation, acidification and many types of pollution, including noise and invasive species. But arguably the greatest threat is from overfishing. Industrial scale, destructive fishing practices have laid waste to marine life and habitats, altered coastlines and threatened the livelihoods and food supply of the billions of people who rely on fish as their main source of protein.

The ocean produces more than half of the world’s oxygen, has stored around a third of our carbon dioxide and has absorbed more than 90 per cent of excess heat within the climate system, thanks to life within it. Overfishing is systematically undermining the ocean’s capacity to play this crucial role through habitat destruction, disturbance of the seabed and the removal of marine animals.

We have to act now to protect and restore our ocean to health if we are to stave off the worst effects of climate change and a global food crisis.

Left Image Credit: Matt Porteus

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BLUE MARINE FOUNDATION

Blue Marine’s strategy

Our ocean is being harmed in many ways. We recognise that as a medium-sized yet ambitious charity, we must focus on the most serious threats and make the most impactful interventions.

Blue Marine focuses on five key strategic interventions to improve the health of the ocean:

Securing marine protected areas: Pressing for the meaningful protection of at least 30 per cent of the ocean by 2030.

Tackling overfishing and other destructive activities to ensure the other 70 per cent is sustainably managed.

Supporting sustainable fishing: proving that low-impact fishing benefits marine life, local fishers and communities.

Restoring marine habitats to revive and protect vulnerable and threatened species.

Connecting people with the sea: creating innovative education materials and enhancing ocean understanding across generations.

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Right Image Credit: Martin Stevens

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April 2021

SaveOurSharks launched to prevent the reversal of the Maldives’ shark fishing moratorium.

The campaign, supported by TV personality Steve Backshall, reached 60 per cent of the country’s population and delivered success in six weeks when the Maldivian Government upheld the ban and committed to tackling illegal shark fishing in the country.

May 2021

Blue Marine and BOAT International announced 2021 Ocean Awards winners. Returning for its eighth year, the awards honour and celebrate people and organisations who work tirelessly to help address the crisis in our oceans.

June 2021

Bringing leading blue carbon world experts together during lockdown, Blue Marine foundation hosted a Blue Carbon Conference to share progress and set ambition ahead of COP26. Supporting content on social media during the week was seen by a potential audience of over 4.8 million.

Nearly 550,000 young sturgeons were released as part of ‘Rich Basins’ project in the Caspian Sea, a project supported by Blue Marine. We have now launched www.savethesturgeon.com and the #SaveTheSturgeon campaign, leading to national momentum and interest in sturgeon.

July 2021

TACforTuna social media campaign launched, highlighting the urgent need for an improved yellowfin tuna stock rebuilding plan and responsible total allowable catch (TAC) at the 25th Session of the IOTC in June 2021. The powerful short film aimed at decision makers was viewed on social media almost two million times.

August 2021

Over 40 surveys were conducted in Sussex to kickstart monitoring the recovery of kelp and fish following the trawling ban.

‘Jersey Hand Dived’, launched to boost consumer awareness on differing scallop fishing methods.

September 2021

One of the UK’s largest native oyster restoration reefs was successfully laid by Blue Marine’s restoration team and is now home to 36,000 oysters. The story went on to capture the imagination of the wider public when it featured on BBC’s The One Show, broadcast during COP26.

Blue Marine attended the IUCN Congress delivering a motion for a moratorium on deep sea mining as part of a coalition.

Ascension declared its 445,000 sq km MPA, 99.5 per cent of which is completely closed to large scale commercial fishing.

November 2021

Blue Marine held a UK Cuttlefish Symposium bringing together researchers, fishermen and policymakers to share information on fishery status, current management and future management needs with over 150 attendees.

A huge screen in the centre COP26’s Blue Zone showcased a vital blue carbon habitats film based on the immersive experience of TheSeaWeBreathe. During the event, Blue Marine announced the launch of the UK Blue Carbon Forum, followed by the publication of a report into a UK voluntary blue carbon market.

February 2022

Blue Marine held a successful online event attended by over 330 people from more than 20 countries to explore the opportunities for habitat enhancement and species restoration within UK offshore wind farms.

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2022
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December 2021

Six new marine protected areas were designated on Laamu Atoll in the Maldives, driven by Blue Marine’s research, advocacy and community education and outreach efforts as part of the #EkuEkyLaamu campaign.

March 2022

A poll commissioned by Blue Marine and the National Trust of Jersey found a decisive 85 per cent of Jersey islanders wish to see a marine park covering 30 per cent of its waters.

October 2021

Linking climate health to ocean health, Blue Marine's immersive digital platform TheSeaWeBreathe launched. In the course of the next 12 months it would be seen more than 1.2 million times and win a prestigious Webby Award.

The UK pledged to ban bottom trawling and dredging in 14,030 sq. kms of UK waters, including Dogger Bank, following legal action by Blue Marine.

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Marine protected areas in the Mediterranean

International Projects

Blue Marine works in locations all over the world where there is an urgent conservation need, and where Blue Marine’s particular combination of expertise and experience can deliver tangible change. Where possible, we work in conjunction with local partners and build capacity of local NGOs rather than inserting our own team members for any length of time.

The Mediterranean is one of the fastest degrading and least protected seas in the World. Blue Marine is working throughout the Mediterranean to create MPAs, protect carbonstoring seagrass, encourage more sustainable tourism, support small-scale, low-impact fishing and increase awareness and support for vital marine conservation.

Greece

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Greece
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Blue Marine is working to address overfishing in Greece by developing a network of no-take MPAs, applying successful sustainable fishing models, encouraging the fishing and eating of invasive species and protecting carbon storing Posidonia beds. Our aim is to see the regeneration of marine life, which will deliver multiple benefits, including biodiversity and biomass increases, climate change benefits through enhanced carbon sinks and a significant boost to local economies. In the first year of this project, we are already becoming a recognised player in marine protection in Greece. In partnership with iSea and with support from Blue Media, our #PickTheAlien campaign has launched to encourage behaviour change in seafood consumption. Both tourists and locals are being encouraged to choose invasive species, such as lionfish, over apex predators like groupers and swordfish.

Expenditure in year * £77,662 Expenditure over life of project* * £77,662 * See note 18a - 'Greece' ** to 31 March 2022

3] #PickTheAlien campaign in partnership with iSea.

Above images left to right: 1] Lionfish, invasive to the Mediterranean.

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Marine protected areas in the Mediterranean
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Italy

The Balearic Islands

The Italian seas are some of the most overfished in the world and are struggling to maintain healthy ecosystems under pressure from unsustainable tourism, lost carbon-rich seagrass meadows, invasive species and climate change. Blue Marine has been working for four years in the Aeolian Islands to create MPAs and promote sustainable fishing in local communities and schools. In March 2022, we expanded our Italian work with a bold new initiative that aims to connect seven sea-conservation projects at MPAs in Tuscany, Puglia, Sicily and Sardinia. The new network aims to protect tens of thousands of species in the coastal waters of Italy, many of which are found nowhere else. Species involved include sandbar shark, common eagle rays and the critically endangered monk seal, of which there are only 700 still in existence.

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Over 10 local schools and Panarea
700 local children engaged Alicudi Salina
Filicudi
in educational programs Lipari
Vulcano
Expenditure in year
£146,471
Expenditure over life of project * The Aeolian
Islands
£769,734
Egadi
See note 18a - 'Aolians' + 'Italian Rollout' THE MEDITERRANEAN SEA
LIAN ISLAN
O D
E S
A
E
H
T
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The Balearics
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Expenditure in year
£8,875
Expenditure over life of project
£30,224
See note 18a - 'Mallorca' + 'Menorca'
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Increasing pressure from unregulated fishing and tourism risks making existing and proposed marine protection ineffective in the Balearic Islands. Habitats such as seagrass beds, which are vital juvenile fish nurseries – and trap carbon 35 times faster than rainforests – are especially vulnerable. Blue Marine is working to improve marine protection, remove ghost fishing nets, monitor illegal fishing and reduce pollution. A report commissioned by Blue Marine, the Marilles Foundation and the Conservation Collective, estimates that as much as 40 per cent of fish traded in the Balearics is illegally caught and sold. Blue Marine is working with local partners to introduce an awareness-raising campaign directed at all stakeholders involved in buying and selling fish and is lobbying regulators to reduce the illegal catch of fish.

Image credit: Danny Copeland

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Cyprus

Located in south Cyprus, the marine environment of Akrotiri is characterised by carbon-trapping seagrass beds, rocky coral reefs and sandbars. Blue Marine has been working with its partners, the Marine and Environmental Research Laboratory (MER) and the Sovereign Base Authorities (SBA) to create an MPA management plan that will enable the restoration of marine life and provide a sustainable resource for artisanal, small-scale fisheries. The preliminary phase of this project has been hugely successful: engaging with stakeholders, developing a joint-management committee, collecting data about the biodiversity in the area, monitoring species and mapping the proposed MPA. We have also collected film and imagery of the marine life in Akrotiri, which has mostly been unseen by the public and authorities until now.

Expenditure in year * £10,000

Expenditure over life of project* * £10,000

*See note 18a - 'Cyprus'

Turkey

Expenditure in year * £231,711

Expenditure over life of project * £338,073 See note 18a - 'Turkey'

Blue Marine is working in partnership with the Mediterranean Conservation Society to expand and protect Turkish seas. We are providing enforcement and management to support the designation of significant no-take zones and expansive no trawling areas in Turkey. We have seen huge success within this project with new designations to expand the MPA being approved and signed into law. We are working with an artisanal fishing operation run almost entirely by women to increase awareness about sustainable fishing practices and improve their livelihoods. Blue Marine’s patrol boat continues to be the fastest of the small fleet, and patrols the MPAs daily, including new officially marked no-fishing zones and restored Monk seal caves.

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Above left: Credit Mediterranean Conservation Society Above right: Sandbar Shark, Turkey. Credit Mediterranean Conservation Society Page right: Seal, Gokova Bay, Turkey. Credit Zafer Kizilkaya

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Namibia

Despite being Africa’s second largest marine reserve, the lack of management plan for the Namibian Islands’ Marine Protected Area (NIMPA) makes it redundant. The reserve is at risk of diamond mining, overfishing, pollution, port development, untested phosphate extraction and, disturbingly, live marine mammal harvesting. Blue Marine is working with Namibia Nature Foundation (NFF) to improve management and protection measures of the NIMPA. Increased engagement and lobbying activities have led to the Namibian president announcing a contribution to the 30x30 Global Ocean Alliance campaign. This is a huge breakthrough for the project, which will be complemented by a regular monitoring programme that has been established. The programme will provide vital baselines of the NIMPA ecology which includes the monitoring of penguins, dolphins, seabirds and jellyfish to feed into improved policy and management for this important marine reserve.

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Expenditure in year
£23,430
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Expenditure over life of project * £90,627

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See note 18a - 'Namibia'
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Walvis Ridge

The Walvis Ridge is a 3,300km long volcanic chain in the high seas off the coast of Western Africa. Blue Marine commissioned a report by South Atlantic Environmental Research Institute Falklands Ltd (SAERI) to examine the Walvis Ridge and its vulnerable marine ecosystems. This in-depth scoping project will provide data on fishing activity, blue carbon habitats, benthic communities, deep sea mining, the current impacts of climate change and create a comprehensive stakeholder map. The full report will be published later this year and give Blue Marine a better understanding of the area and the potential for conservation. All the data collected will be stored in an easily accessible data portal and used to contribute to improved mapping activities of the area.

Expenditure in year *

£30,464

Expenditure over life of project* * £30,464

*See note 18a - 'part of 'RvR MPA Exploratory Fund'

Maldives

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The Maldives
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For the past five years Blue Marine has been working on Laamu Atoll to improve coral reef resilience by supporting the establishment of MPAs. In October 2021, our hard work was rewarded when Laamu atoll was declared a Mission Blue Hope Spot, and the Maldivian Government designated six new protected areas on the atoll encompassing coral reefs, mangroves, and seagrass meadows. Research by Blue Marine and its partners in the Maldives Underwater Initiative was used to justify the Hope Spot and the MPA site selection. Blue Marine and local NGO partner Maldives Resilient Reefs (MRR) have been working closely with other local stakeholders to secure their support for new management measures and will continue to work with them to ensure they are involved and represented in decisions about management of the sites.

Expenditure in year *

£142,438

Expenditure over life of project* * £584,097

*See note 18a - 'Maldives'

Above Credit: J Kemper Image Credit: Tompkins Conservation and Rewilding ChilePage Right Credit: Alex Mustard

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Patagonia

The Gulf of Peñas in Patagonia is one of the last great coastal refuges in the world and a feeding ground for some of the rarest baleen whales in the Pacific Ocean. In 2021, Blue Marine partnered with Rewilding Chile (formally Tompkins Chile) to push for improved protection of such a significant area. Conservation results have been outstanding with two new MPAs designated in the Patagonian fjords and others proposed to the new Chilean Government for consideration. We funded Defendamos Chiloe, a local NGO, which campaigns for reform of environmentally devastating salmon farming. Again, the results have been significant with salmon farms being banned from several MPAs and areas of high biodiversity. Salmon farming concessions are being withdrawn and the new government openly accepting that reform is crucial to prevent further loss of biodiversity. Blue Marine continued to support the research vessel, Saoirse, and also scientist Dr Vreni Haussermann who is collecting data to support designation of MPAs.

Expenditure in year * £300,677

Expenditure over life of project *

£1,119,341

*See note 18a - 'Patagoina' (inc Designated)

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Patagonia
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Expenditure in year * £50,539

Expenditure over life of project * £50,539

*See note 18a - 'Dutch Caribbean'

The Dutch Caribbean

The islands of the Dutch Caribbean are home to unique ecosystems and incredible biodiversity, including hawksbill turtles, parrotfish, tarpon and sharks. These species and the biodiversity in the region are incredibly vulnerable to threats such as overfishing, climate change, coastal development and build-up of harmful algae caused by wastewater. Using Blue Marine’s vast experience in the UKOTS, we have launched a new partnership with the Dutch Caribbean Nature Alliance (DCNA) to deliver immediate conservation benefits to the Nature Park Foundations on the islands entrusted with Marine Park management. Together we are also carrying out political advocacy work with the Dutch Government to raise awareness of, and additional financial support for, the protection of the Netherlands' most critical marine biodiversity hotspots.

St Vincent & the Grenadines

Expenditure in year *

£0

Expenditure over life of project * £50,389

*See note 18a - 'Caspian'

Caspian Sea

The unique ecosystem of the Caspian Sea is under increasing pressure from overfishing, pollution, hydrocarbon extraction, melting ice fields and degradation of river systems. In Azerbaijan, the first Caspian MPA and Hope Spot has invested in new equipment and rangers to ensure effective protection of sturgeon feeding grounds. Local partners supported by Blue Marine in 2020-21, IDEA and river authorities continue to remove illegal gill nets and release Caspian salmon and sturgeon into the sea in an effort to boost wild populations. An innovative aquaculture facility has been built and Blue Marine international project managers are hoping to use this as a global example of a truly sustainable fish farm, specifically looking into sustainable feeds and turning sturgeon poachers into fish farmers.

The rich oceans around St Vincent and the Grenadines host habitats and species important not just for ecosystem functioning and climate adaptation, but also critical for the economy, local livelihoods and food security. The Government of St Vincent and the Grenadines approached Blue Marine to carry out an assessment of the state of their fisheries and to propose how best to protect them. In February 2022, Blue Marine team members went out to conduct the analysis which included baseline reef surveys, training sessions and hosting important stakeholder meetings with local NGOs and government officials. This work was hugely productive and has enabled Blue Marine to complete an interim report which details recommendations to improve the sustainability of the St Vincent fisheries, where to site proposed MPAs and how to achieve 30 per cent of waters protected. If acted upon, the recommendations will benefit not only the marine environment of St Vincent and the Grenadines but also the livelihoods that depend on it.

Expenditure in year * £35,506

Expenditure over life of project * £35,506

*See note 18a - part of 'RvR MPA Exploratory Fund'

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The UK overseas Territories

Overseas Territories

Over four million square kilometres of ocean are protected around the UK Overseas Territories. Blue Marine, individually and as part of the Great British Oceans Coalition, works to ensure that the British Government upholds its commitment to the ‘blue belt’, that increasing numbers of territories are included in the programme of protection and that the protected areas bring benefits to the overseas territories themselves.

The UK Overseas Territories where Blue Marine particularly focused its efforts over the year ending March 2022 were Ascension and St Helena.

Ascension

Straddling the Mid-Atlantic Ridge, the waters of Ascension Island harbour globally significant marine biodiversity and are a hotspot for large predators, including sharks, tuna, swordfish and some of the largest recorded Atlantic blue marlin. After the designation of 443,000 square kilometres of no-take zone, Blue Marine was keen to ensure that the Ascension Island community were rewarded for their vision and commitment to protecting the world’s ocean. To this end, Blue Marine established the Ascension Island MPA Community Trust fund (AIMPACT), a £2 million endowment fund donated by long-term supporter Peter Lürssen, for the benefit of on-island projects that support community, education, environment and heritage. The publication of the book Marine Life of Ascension by Dr Judith Brown in September, celebrates the Ascension MPA and its road to designation, alongside showcasing the rich biodiversity found in its waters. Blue Marine, with GBO partners, has continued to advocate for the Blue Belt funding for the UKOTs and continued HMG support for the Blue Belt Programme for 2021/22 was confirmed at £8 million and £426,000 of this is identified for work on Ascension.

Expenditure in year * £156,219

Expenditure over life of project* * £1,085,335

*See note 18a - 'Ascension'

St Helena

Blue Marine has been working since 2017 with the St Helena National Trust to help build and maintain support for the marine protected area within the local ‘Saint’ community, while establishing St Helena as a globally recognised centre of scientific research. With the successful updating of the St Helena Fisheries Legislation, including a ban on all commercial fishing within the MPA except one-by-one, the consultation process to revise the Marine Management Plan (MMP) is underway with input from stakeholders including Blue Marine. Updating of the MMP will ensure that the highest standards of sustainability will apply to all fishing within Saint Helena’s waters. Ocean education and local staff development remains a priority with engagement activities for the local community being put on throughout the year. Research on the important whale shark populations continue including looking into demographics and spatial usage which will help inform any future additional marine management required to protect this species.

Expenditure in year * £140,404

Expenditure over life of project* * £702,446

*See note 18a - 'St Helena'

Left Image Credit: Danny Copeland

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Future of UK Seas

Blue Marine aims to support and push the UK government to properly manage its waters and establish the UK as global leaders in marine conservation. Over the last year Blue Marine has been working to improve UK MPAs from ‘paper parks’ to effective networks of protection. Through a study on Lyme Bay’s MPA conducted by Plymouth University the clear positive impact of this level of protection was demonstrated by the 400 per cent increase in fish species recorded.

The British Isles

38 per cent of the UK’s domestic waters are described by the government as ‘protected’, but in reality, only 0.0025 per cent of UK MPAs ban all types of fishing and other extractive activities. Blue Marine has been working in the UK to ensure that the 38 per cent of waters are genuinely protected. The announcement of Dogger Bank and four other MPAs being closed to bottom trawling is major breakthrough and we want to push for the remaining MPAs to be offered the same degree of protection. Our vision is a UK with thriving waters and a supported fishing community. To achieve this, we are working to improve protection, tackle overfishing, support low-impact fisheries, restore seascapes and engage people in marine conservation.

Expenditure in year * £137,175

Expenditure over life of project* * £964,477

*See note 18a - 'UK Consortium'

In East Anglia, Blue Marine has been engaging with stakeholders to build our understanding of the opportunities for conservation and the current threats apparent on its coastline. Our scoping has spanned a number of themes including supporting lowimpact fisheries, restoring habitats and species and improving the protection of MPAs.

Left Photo Credit: James Bowden Above Photo Credit: Henley Spiers

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BLUE MARINE FOUNDATION

The Dogger Bank - Offshore Marine Reserves

Blue Marine has been campaigning for the closure of the Dogger Bank to bottom-trawling since September 2020, when we released a landmark report which detailed the inappropriate fishing operations taking place in this area. Earlier this year it was announced that the Dogger Bank as well as The Canyons, Inner Dowsing, Race Bank and North Ridge Special Area of Conservation and South Dorset Marine Zone will all be protected from damaging fishing practices, including bottom trawling. The move to protect the important shallow sandbank habitat has been heralded as ‘the beginning of the rewilding of the North Sea.’

Expenditure in year * £31,186

Expenditure over life of project* * £85,641

*See note 18a - 'Offshore Marine Reserves'

14,030km2

of UK waters protected from destructive fishing.

National Marine Parks

A vision for National Marine Parks in British Seas was published in 2021, based on interviews with 30 key stakeholders around the country. The vision gained wide media pickup across Expenditure in year * the country at both the local and national level. Blue Marine has started to establish NMP ‘champions’ in each of the ten £90,838 locations proposed in the report. We have actively engaged with people keen to drive the vision in Scotland, Wales and in Expenditure over life of project * multiple locations across the English regions. Key influencers £256,928 are regularly meeting through a national strategic working See note 18a - 'National Marine Parks' group, and we have presented the vision to Defra.

Highly Protected Marine Areas

One of the simplest and most effective solutions to overfishing is establishing highly protected marine areas (HPMAs). Scientific evidence shows that areas fully closed to fishing will - in under a decade - contain on average six times more biomass than totally unprotected areas. This year has seen a consultation announced on the first five HPMAs to be introduced in England. These sites will, if all introduced, cover over 1,000 square kilometres of the sea. Blue Marine has been a key stakeholder in the process; we have regularly met with government officials to make the case for HPMAs and we have recommended specific sites, including one that will be adopted. The sites are currently out for consultation, as the process was initially delayed due to Covid-19. In the meantime, we have started gathering assets from Lundy to use their no-take zone as a case study to show the importance of these kind of protective measures.

Expenditure in year * £80,031

Expenditure over life of project* *

£122,460

*See note 18a - 'HPMAs'

Jersey

Expenditure in year * £221,933

Expenditure over life of project* *

£340,838

*See note 18a - 'Jersey'

With one of the largest tidal ranges in the world, Jersey’s marine environment hosts an astonishing diversity of habitats. They range from seagrass and maerl (coralline algae) beds providing shelter for key commercial species to rocky reefs hosting rare pink sea fans. The marine habitats around Jersey perform crucial roles in storing and sequestering carbon and buffering the effects of climate change. Blue Marine’s campaign for a marine park closed to bottom-towed fishing in Jersey continues. We demonstrated significant public support for a Jersey Marine Park, with a poll showing 85 per cent of respondents were in favour of establishing a marine park before 2030 and over 90 per cent were in favour of a ban on dredging. The Island debate took place in March 2022 and while the marine park has not been officially confirmed, an encouraging commitment to develop a network of marine protected areas was made.

Right Image Credit: James Bowden

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Supporting sustainable fisheries

Lyme Bay: Road to Recovery

Lyme Bay Fisheries and Conservation Reserve, is one of the largest marine protected areas in the UK, with over 90 square nautical miles protected from dredging and trawling, the Reserve preserves rocky reefs and the largest colony of pink sea fans in the British Isles. Blue Marine has been working with local fishermen to help low-impact, sustainable fisheries to continue to survive within the area, a voluntary code has been developed with the fishermen to set limits on the number of pots and nets used. To ensure the level of pot fishing taking place in Lyme Bay is compatible with protection of the Reserve’s habitats and species, Blue Marine funded a four-year study by the University of Plymouth in partnership with the fishermen. The study has now been published showing that the number of pots used by fishermen under the code of conduct had minimal impact on reef-building and commercially targeted species within the Reserve.

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Lyme Bay
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Expenditure in year * £144,449

Expenditure over life of project* * £1,994,518

*See note 18a - 'Lyme Bay'

Berwickshire

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Berwickshire
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Despite its importance for people and nature, the majority of the Berwickshire MPA is open to bottom-towed trawling and dredging, and reports of unlawful fishing by trawlers is common. To boost our campaign to call an end to these damaging practices media assets have been created including diving guillemots, drone footage of crab and lobster fishermen fishing and further footage of the incredible underwater habitats in the Berwickshire MPA. To increase engagement and educational resources about Berwickshire’s MPA, Blue Education is working to establish an ‘Ocean Observatory’. Using underwater cameras, high-resolution footage of the Berwickshire’s underwater world will be captured and made accessible online. We hope to educate and inspire young people to get involved with citizen science and data collection. This Ocean Observatory is a pilot project which we plan to roll out across multiple UK project sites.

Expenditure in year * £147,529

Expenditure over life of project* *

£404,020

*See note 18a - 'Berwickshire'

Left Photo Credit: Carolyn Nation Top Photo Credit: Paul Richards

Restoration

Solent Oyster Restoration Project

The Solent once supported the largest native oyster fishery in Europe. In 1978, 450 vessels were involved in oyster fishing and 15 million oysters were harvested in that year alone. Overfishing, pollution, disease and habitat loss caused the fishery to collapse Photo Creditin 2013. Blue Marine is working to revive this population and in September 2021, we created the Solent’s first oyster reef in Langstone Harbour, one of the largest in the UK and now home to 36,000 oysters. The reef will increase biodiversity, improve water quality, and stabilise sediments. The BBC One Show recorded a segment about the creation of the reef. Blue Marine has now restored over 100,000 oysters and planning has begun for a second new reef in the River Hamble.

Expenditure in year * £348,927

Expenditure over life of project * £1,286,272 See note 18a - 'Solent' + 'Integrated Ecosystem Restoration'

Solent Seascape Project

Blue Marine has begun a pioneering seascape project in the Solent. The project aims to restore the ecosystem, by reconnecting fragmented habitats, recovering populations of associated species, facilitating resilience to climate change and demonstrating measurable benefits to people. Through initial workshops and stakeholder meetings Blue Marine has brought together partners and local organisations to work on this $5 million, five-year programme.

Blue Marine is working with the Essex Native Oyster Restoration Blackwater Initiative (ENORI) to restore vital native oyster populations and the habitat they provide. Blue Marine and ENORI partners have significantly scaled up restoration and outreach efforts. This year, over 7,200m2 of new native oyster habitat has been created through cultch deployments, building on to an area of restored habitat already spanning over 15,000m2.

Expenditure in year * Blackwater £24,522 Over 7,200m2 of The Solent new native oyster Expenditure over life of project * habitat has been £140,437 created in the Blackwater this year. See note 18a - 'Blackwater'

The Wild Oyster Project

An expansion of Blue Marine’s successful oyster restoration work, this project is a collaboration between Blue Marine, the Zoological Society of London, British Marine and local project partners. Blue Marine has helped to set up new native oyster nurseries in the Firth of Clyde, Conway Bay and Tyne and Wear as part of a major community restoration effort. The second phase of the Wild Oysters Project, active seabed restoration, is now underway with habitat scoping and baseline surveys currently taking place across all sites.

Expenditure in year * £61,054 Expenditure over life of project * £102,348 See note 18a - 'Wild Oysters'

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Species at risk

With the UK Government committed to providing over a third of Windfarms British electricity from offshore wind power by 2030, Blue Marine believes there is an urgent need to develop strategies to enhance nature in the UK. In February 2022, we hosted an online event: Opportunities for nature recovery within offshore wind farms Expenditure in year * around the UK. With over 330 users, the event attracted panellists £29,171 and attendees from over 20 countries, leading to an increased understanding of the ambition for nature recovery both within UK and other European offshore wind farms. The event has led to Expenditure over life of project * discussions with developers such as Van Oord about nature recover £60,840 opportunities within the Sofia wind farm (one of the world’s largest See note 18a - 'Windfarms' installations), as well as new UK research partnerships with leading academics.

Windfarms

Saving at Risk Fisheries

In 2021-22, our focus has been on cuttlefish, an important seasonal fishery for the English Channel, with several ports on the south coast dependent on them. Over 90 per cent of cuttlefish landings are caught by offshore trawlers with no limitation on effort or quantity. In November, Blue Marine convened a Cuttlefish Symposium bringing together over 120 attendees including fishermen, fisheries managers, government agencies, conservation groups and citizen scientists, to share information about current cuttlefish stocks and fisheries.

Expenditure in year *

£46,864

Expenditure over life of project* * £98,558

*See note 18a - 'Species at Risk'

European Sturgeon

The European sturgeon, once abundant across Europe and the largest migratory fish species to previously occupy UK rivers, has suffered a long history of decline. Blue Marine is aiming to raise awareness of this iconic species and begin to restore populations in the UK. In March 2022, the SaveTheSturgeon website was officially launched. The campaign aims to raise awareness of the UK Sturgeon Project, the work of the UK Sturgeon Alliance and allow the public to record sturgeon sightings. The launch of the brand-new site has already provided a platform for several new historic sightings to be logged. Additionally, the UK Sturgeon Alliance’s recent working group meeting has led to increased government interest and engagement has broadened to other areas across Great Britain, including Yorkshire and Ireland.

Expenditure in year * £80,023

Expenditure over life of project* *

£131,717

*See note 18a - 'Sturgeon'

Sussex's kelp forests

Expenditure in year * £70,918

Expenditure over life of project* *

£108,180

*See note 18a - 'Kelp'

Historically, vast kelp beds stretched along more than 40 kilometres of the Sussex coast, teeming with life and providing vital habitat for important commercial fish species. However, since 1987, over 96 per cent of the area once covered by Sussex kelp has disappeared. Increased storm intensity, years of destructive trawling and other human pressures have reduced this underwater forest. With the introduction of the Nearshore Trawling Byelaw in March 2021, we have started the first year’s baseline monitoring to track the recovery of kelp habitats and associated fisheries, engage with local fishermen and start assessing some of the factors that might prevent successful recovery. In September 2021, we held the Sussex Sediment Workshop with 40 stakeholders from over 25 organisations, highlighting collective concerns about the impact of sediment on kelp recovery and local fisheries.

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Blue Media

Blue Media uses a range of media from short films to social media campaigns, as well as virtual reality experiences and mainstream television to inspire ocean conservation. Over the last year Blue Media has been working with our UK and international project teams to showcase the brilliant work and initiatives that are taking place.

Expenditure in year * £188,518

Expenditure over life of project* * £835,469

*See note 18a - 'Media Unit'

Key campaigns include:

Indian Ocean – overfishing of yellowfin tuna

A substantial public campaign shaming the EU for taking the lion’s share of an already inflated quota for yellowfin tuna in the Indian Ocean was put on hold due to the volatility of the Russia/ Ukraine situation. While scientific advice is to reduce catches by 30 per cent, the EU still stands in the way of sustainable management of the Indian Ocean, to the detriment of small island nations like Seychelles and the Maldives. Blue Media has been documenting the process of the Indian Ocean Tuna Committee as members negotiate quotas, capturing interviews of those most affected and positioning ourselves to pressure the EU on reducing its quota.

Maldives – responsible tourism and community connection

A series of films promoting a Whale Shark Code of Conduct have been produced and the #GentleToGiants campaign, in partnership with the Whale Shark Research Programme in the Maldives, is underway. Tour operators are being signed up to commit to a code of conduct, which includes driving vessels under 10 knots within the reef, making sure there is only one boat near any whale shark and showing the film to those wishing to swim with the whale sharks. A public campaign to choose operators signed up to the code will launch later in 2022 when the high season begins. This code of conduct campaign will then be rolled out to St Helena and Madagascar.

BLUE Units

As well as our work in specific project locations, Blue Marine is working to deliver systemic change in the way the ocean is managed. These approaches are embodied in eight units. In the year to March 2022, these units developed and thrived, each becoming an engine of change in its own right, while remaining thoroughly integrated with the rest of the organisation. If Blue Marine is an octopus, with its body representing projects, the units are eight tentacles!

Left Photo Credit: Henley Spiers

Blue Education

Blue Education is developing imaginative, engaging materials and hands-on education programmes to inspire all ages to become ocean advocates.

Expenditure in year * £57,514

Expenditure over life of project * £297,985 See note 18a - 'Blue Education Unit'

The Sea We Breathe

Following the pandemic, one of Blue Education’s priorities has been providing free and easily accessible ocean education to millions around the world. Another focus area has been helping people to visualise and understand the inextricable link between the ocean and climate change. To address both of these areas, Blue Marine has built an interactive web experience titled ‘The Sea We Breathe,’ narrated by Stephen Fry. Users can ‘swim’ through three immersive journeys which explore underwater rainforests that store billions of tonnes of carbon, marine protected areas that boost the ocean’s resilience to climate change, and fisheries that impact the ocean’s web of life. Since its launch, The Sea We Breathe has been viewed over one million times with little paid marketing and promotion, with viewers based in over 39 different countries.

The Sea We Breathe has been seen by over 1.1 million people.

Aeolian Islands marine education programme

Blue Education has also worked closely with the Blue Marine team in the Aeolian Islands, delivering a second year of marine education to local school children and communities. Activities range from lessons on sustainable fisheries, taught onboard by local fishermen, to seagrass ‘summer schools’ for university students refining their scientific dive skills. After its success in Italy, Blue Education is looking to replicated the programme in Greece next year.

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Blue Investigations

Blue Investigations works to research and expose overfishing and other methods of over-extraction. Our investigations team works closely with our media and legal team to shine a light on overfishing and other harmful marine activities.

Expenditure in year * £205,206

Expenditure over life of project* * £396,967

*See note 18a - 'Blue investigations Unit' + 'RFMOs'

Blue Legal

Blue Marine’s legal unit challenges unsustainable fishing and uses the legal system to support Blue Marine’s strategic interventions.

Legal work spanning 27 jurisdictions so far.

Expenditure in year * £196,386

Expenditure over life of project* * £355,369

*See note 18a - 'Blue Legal Unit' + 'Salmon Farms' + 'Brussels' + 'Offshore Marine Reserves'

Fish Aggregating Devices (FADs)

In May 2021, Blue Marine hosted a FAD symposium featuring a panel of fourteen leading experts. The symposium highlighted the controversy surrounding drifting FAD use, including how they may constitute illegal, unreported and unregulated (IUU) fishing if they drift on an unauthorised basis into neighbouring exclusive economic zones, marine protected areas or other closed fishing sites.

Tackling overfishing in the Indian Ocean

The Indian Ocean Tuna Commission (IOTC) – the regional intergovernmental body in charge of managing shared, migratory stocks like tuna – held a special session in early 2021 to address the ongoing overfishing of Indian Ocean yellowfin tuna. Blue Marine attended this meeting and urged IOTC member states to co-operate and put a stop to the overfishing that has been taking place since 2015 by adopting an effective and equitable recovery plan for the globally important stock. However, no agreement was reached, and we were disappointed to witness the clear refusal to negotiate on the part of the EU and other distant-water fishing nations who chose instead to maintain the status quo at the expense of the stock, the health of the ocean and the wellbeing of vulnerable Indian Ocean coastal communities. In response, Blue Marine launched its #TACforTuna social media campaign, highlighting the urgent need for an improved yellowfin tuna stock rebuilding plan and responsible total allowable catch (TAC) at the 25th Session of the IOTC in June 2021. Blue Marine developed a powerful short film aimed at decisionmakers as the centrepiece of the campaign. The film was viewed on social media almost two million times.

Bringing mismanagement practices of the salmon farming sector to the attention of Crown Estate Scotland

Unregulated salmon farming is polluting Scotland’s pristine waters and having an impact on many fish species. Following a legal review of mismanagement practices in the salmon farming sector in Scotland, Blue Legal’s findings were brought to the attention of the Board of Crown Estate Scotland, the authority responsible for leasing and managing the seabed. These included the many negative environmental impacts from noise to pesticide and other pollution, but also the ludicrously low rents charged to salmon farming companies. Following discussions held with Crown Estate Scotland, rents have been reviewed and increased

Challenge cases where the Greek government is failing to comply with marine legislation

Blue Marine is working in Greece to ensure its marine environment is properly managed and protected. Blue legal provided support to Greek NGOs in bolstering their legal complaint before the EU Commission concerning threats to the marine ecosystem in North Corfu, posed by a major land development project. Furthermore, Blue legal is working with Blue Marine’s team in Greece to encourage the promulgation of no take zones and identify failures by the Greek government to protect its marine biodiversity

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Blue Science

Expenditure in year * £16,100

Blue Science uses strategic scientific evidence, position papers and academic publications to support Blue Marine’s mission.

Expenditure over life of project* * £76,210

*See note 18a - 'Blue Science'

How well protected are the UK’s Marine Protected Areas?

Achieving 30x30 is essential to protect marine biodiversity and the ocean’s integral role in mitigating climate change. The UK has appeared to have taken an international leadership position on this, designating over 370 marine protected areas (MPAs) that cover 38 per cent of the country’s home waters. Despite this commitment, much of the UK MPA network remains poorly protected from potentially highly damaging activities. Few new regulations have been introduced in the new MPAs to safeguard wildlife and habitats, including blue carbon habitats. Furthermore, current international reporting only documents location and coverage of MPAs, not their level of protection. This makes it hard to determine how much protection is present on the water.

The Blue Science Unit is using The MPA Guide: A Framework to Achieve Global Goals for the Ocean to evaluate the UK’s MPAs, both within home waters and overseas territories. This method shows very clearly that nature conservation outcomes are only sufficient in MPAs that are Highly and Fully protected from extractive and damaging uses. As such, this study will demonstrate just how far the UK has to go before its stated commitments to protect marine life become a reality. It will also lay out a roadmap by which protected area upgrades can be undertaken to make the network function properly. Blue Marine has collaborated closely with the Marine Conservation Institute, who oversee the MPAtlas database and have granted the team access to their online MPA Guide system, accelerating analysis and enabling increased opportunities for peer review. If registration is successful, this work will be presented at a side event at COP15 in Montreal, December 2022.

Exploring the pathways to a just and fair transition away from bottom towed gear

A key challenge in reducing harmful bottom towed gear fishing is the complexity of ensuring that there is a just and fair transition pathway for fishers to more sustainable gear types, or alternative livelihoods. Blue Science is working closely with Blue Economics and the UK Projects team to discover what the implications are for fishers moving from bottom towed gear to lower impact gear, quantifying key considerations such as refitting, retaining and/or retiring costs and the impact on consumer prices.

Blue Policy

Expenditure in year * £301,052

Blue Science uses strategic scientific evidence, position papers and academic publications to support Blue Marine’s mission.

Expenditure over life of project* * £804,890

*See note 18a - 'Blue Policy Unit' + 'High Seas' + 'HMPAs' + Ocean Governance'

The high seas

Protecting the high seas and ensuring that the open oceans are well managed is a key concern for Blue Policy. Over the last 12 months we have worked tirelessly to ensure that the high seas treaty contains sufficient safeguards to make sure that marine protected areas will be delivered. We have attended negotiations at the UN, pushing hard for changes to the treaty. We have worked with colleagues in the Deep-Sea Conservation Coalition to successfully pass a motion at the IUCN general meeting for a moratorium on deep sea mining. We are looking to ensure long term protection of the ocean by developing the case for specific high seas MPAs.

Highly protected marine areas (HPMAs)

Blue Policy continues to work to build the case for a UK network of highly protected marine areas (HPMAs). With the full list of recommended sites having been submitted to Defra, the Blue Marine team continues to liaise with relevant civil servants within Defra to ensure that we are fully up to speed on timings and any upcoming announcements. Defra have informed us that they are expecting to announce the proposed sites in the spring, and we will meet with the Defra team once this list is out. We have been working with MPs to begin the process of garnering their support for HPMAs in their area (if selected through the Defra process).

Blue Brussels

This year we set up a virtual Brussels office to effect change from within the European Commission and boost coordination with EU-based NGOs. This is led by Roberto Ferrigno, Blue Marine’s Brussels Consultant, who has decades of experience with both Greenpeace and WWF in Brussels and elsewhere in the EU. It has proved invaluable having a voice in Brussels, gaining advice on our engagement with the European Commission, connecting with other NGOs and working with EU member states to campaign against overfishing on the part of EU fleets.

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Blue Economics

Blue Marine aims to use economic models and innovative finance to unlock a quantum increase in ocean conservation finance, prove the economic viability of sustainable fishing, and examine the perverse economics of subsidised overfishing.

Expenditure in year * £102,507

Expenditure over life of project* * £134,553

*See note 18a - 'Blue Economics + Accelerator Fund'

Blue Carbon

Blue carbon aims to demonstrate and quantify the value of the ocean and marine habitats to mitigate and adapt to climate change. Monetising the value of ocean life would be a game changer for conservation.

Expenditure in year * £994,400

Expenditure over life of project* * £1,251,131

*See note 18a - 'Blue Carbon Unit' + Barclays Carbon' + 'CVC Carbon Credits' + Convex Seascape Survey'

Developing biodiversity credits

We want our work in protecting coastal ecosystems to be recognised for their benefits to biodiversity. This would involve creating a credit that can account for the differences between ecosystems, with the credits being measured through ‘uplift’ percentages based on the specific selection of metrics. We are working with project teams in the Solent, Mexico, Turkey and Ascension Island to develop this concept and bring these nascent credits to market.

UK voluntary blue carbon market

Blue Carbon has continued to move forward a UK voluntary blue carbon market through the publication of a targeted report. This report also highlights how seabed habitats protect a large amount of organic carbon if left undisturbed, with further evidence detailed in an eye-opening scientific review on the impacts of mobile bottom fishing on seabed carbon.

Berwickshire

Blue Economics is exploring the costs and benefits of a transition from bottom trawling for nephrops to using low-impact gear in Berwickshire. The report explores the socioeconomic impacts of the different sectors and explores the various costs and financing options of supporting a transition. This case study will support our wider work in supporting a ‘Just transition’ away from harmful fishing practices.

The Convex Seascape Survey

On Ocean’s Day at COP26 this bold project was announced in a multi-million partnership between Convex Group Limited, Blue Marine and the University of Exeter. This project will bring together a multidisciplinary team of world-class ocean and blue carbon scientist, in an ambitious five-year global research programme.

UK Saltmarsh Carbon Code

There has been significant progress supporting the UK Saltmarsh Carbon Code in developing a global systematic review of blue carbon in saltmarsh habitats – this will yield the first UK blue carbon credits and pave the way to valuing the ocean as a climate change solution. Blue Marine continues to engage widely across marine sectors on blue carbon policy, science and funding.

Left Photo Credit: Ben Jones

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Blue Marine's strategy for the coming year

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Blue Marine's ongoing development

spent exchanging ideas and developing new plans. This flexibility has meant we can be even more productive with a small office overhead, while still retaining the ‘spirit of Blue Marine.’

In the year to 31 March 2022, Blue Marine continued to grow impressively in terms of expenditure towards achieving our mission, income, the number and scope of projects we are undertaking and the number of staff we employ. Income reached £7,813,300 in the year, up 24% on the year, and is projected to grow by a similar amount in the coming year. Expenditure increased even more rapidly as we were able to catch up on fieldwork following the lockdowns during the pandemic. Blue Marine now has projects in 21 locations around the world, and is carrying out a total of 49 different projects, campaigns and interventions.

The year to March 2022 also saw the ‘units’, our eight strategic divisions really come into their own. Notable successes included Blue Legal threatening to sue the UK government for not fulfilling their own legal obligation to protect the Dogger Bank, with the result that an area nearly the size of Northern Ireland will now be closed to bottom trawling and Blue Education producing ‘The Sea We Breathe’ which has reached 1.2 million viewers at time of writing. Blue Investigations is uncovering scandalous truths about illicit over-exploitation of the Indian Ocean while Blue Economics is revealing the extent of global fishing subsidies and is redefining how we value life in the ocean. These strategies are interweaving with our projects where major successes are being notched up every month.

While the pandemic brought many challenges, it led to us having a much more flexible approach to working and so meant that we could employ people living far away from the head office in London while still remaining closely connected as an organisation through online meetings. But in order not to lose the spirit of the office and to ensure that new joiners benefit from informal idea sharing that happens in a physical office, we encourage those who live near the head office to come in at least two days a week, and once a month we hold a Think Tank day where everyone working in the UK comes into the office for a day

Blue Marine may have doubled in size in the last two years, but we remain focused, nimble and utterly dedicated to our mission with an impact that far exceeds our – now medium – size.

The ocean is the world’s largest carbon sink – this much is known. It is able to absorb and store carbon thanks to the life within it: habitats such as seagrass, saltmarsh and mangroves are well understood as powerful carbon absorbers. But the extent to which mesopelagic fish, whales, mega and micro fauna and flora, and the seabed itself lock up carbon remains unquantified. One of Blue Marine’s key aims in the coming year is to help fill the knowledge gaps around ocean health and climate health: The need to better understand and quantify the carbon absorbing capacity of the seascape is one of the key scientific questions of our time, along with just how much carbon is released by bottom towed fishing in these habitats.

In November 2021 at COP26, Blue Marine announced that we had secured $15 million to work with leading scientists to answer these questions and revealing the findings over the next five years will be central to our strategy. Because once we can quantify the true value of life in the ocean, the continued destruction of that life (often supported by government policy and subsidies) will finally be deemed unacceptable.

Blue Marine remains steadfast in its strategy to try to put as much of the ocean – at least 30 per cent – under protection as possible. Using a combination of scientific (particularly the climate link), legal and economic arguments, showing that marine protection is better for everyone, including coastal communities and fishermen –

we will continue to press for marine protected areas all over the world. Areas of focus include UK mainland waters including the North Sea, the Mediterranean, particularly Greece, Turkey and Italy, the Dutch Caribbean where the Netherlands can emulate the UK overseas territories as a model of protection. We will remain alive to opportunities to help islands and coastal states that seek our help in protecting their waters, including in the Caribbean and Namibia.

Awareness raising through media and education will continue to be a key part of our strategy. The success of the digital platform The Sea We Breathe has awoken us to the possibilities of virtual and enhanced reality in bringing what was previously unseen for most people – life deep in the ocean – into everyone’s living rooms. The stronger the connection people have with the sea, the more they are likely to want to protect it. We are proud of our emerging generation of ocean advocates who in turn will put pressure on politicians to do more to protect the sea, for the sake of their futures.

The good news is that protecting and restoring marine life and habitats can be done relatively quickly and easily with the right policies in place. And restoring life in the ocean can make a major contribution to closing the emissions gap. Blue Marine will work more urgently than ever to protect the ocean so that it can in turn protect us all.

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Financial review

The accounts are set out on pages 56 to 83.

Donations amounting to £7,764,326 (2021 - £6,306,295 + £2,000,000 endowment fund) were received during the year. This 23% growth, particularly in restricted income, reflects Blue Marines continued development as an organisation. With 49 individual projects, campaigns and interventions currently underway, and the growing success of Blue Marine’s eight strategic units, Blue Marine is positioned as a bold and ambitious organisation, trusted by donors and project partners to deliver tangible impacts in its activities.

The funding pipeline continues to be robust and diverse and includes several new substantial multiyear donations that gives security to the project teams and confidence in the delivery of their longterm objectives. Blue Marine’s eight strategic units are a key driver in the growth of this ambition.

Total expenditure grew to £6,208,722 (2021 - £4,158,194). Restricted expenditure grew by 54% as a result of increased activities through Blue Marine’s eight strategic units and a renewal of on-the-ground activities following COVID-19. These additional project activities were supported by a 35% increase in unrestricted expenditure on Blue Marine’s core operations, including fundraising and governance. This remains in line with Blue Marine’s lean operational model, with 92% (2021: 88%) of expenditure dedicated to charitable activities, 5% (2021: 8%) on governance costs and 3% (2021: 4%) on costs of raising funds.

Total funds held as at 31 March 2022 amounted to £6,131,653 (2021 - £4,565,730) plus the AIMPACT Endowment Fund, £1,964,296 held in a separate account and invested in sustainable funds. The increase in funds held reflects the expenditure required to fulfil objectives on an increased number of projects in the next financial year, plus the growth in ‘free reserves’ required to adhere to Blue Marine’s Reserves policy (see below). The Trustees are confident that reserves will not prove to be excessive in light of the current economic uncertainty, the level of future activity anticipated and the growing number of Blue Marine’s projects.

Going Concern

The trustees of Blue Marine Foundation have examined the 24-month forecast of income and

expenditure for both organisational operations and carrying out the planned charitable activities and are confident that Blue Marine Foundation remains a going concern. Despite the challenging economic and working environment, Blue Marine continues to deliver conservation impact and attract continued support for both new and existing projects. Blue Marine’s agile and reactive nature has proven to be resilient and effective in adapting to change, and the financial position is supported by a strong reserves policy. There are no material uncertainties that challenge the going concern assumption.

Reserves policy

“Free reserves” held at 31 March 2022 (consisting of amounts which could be spent excluding restricted funds and fixed assets and without disposing of investments), amounted to £2,839,047 (2021 - £1,956,479).

These reserves fall within Blue Marine’s Reserves Policy of between six- and eighteen-months’ operational expenditure (lower limit £1,227,802, upper limit £3,683,406).

Any funds generated during a financial period which are not needed to meet day-to-day unrestricted expenditure requirements are placed in a savings account until required.

The Trustees have agreed a policy in respect of reserves that address the following financial objectives:

To facilitate the continuing agility and reactive activities that are fundamental to Blue Marine’s strategy, the Trustees have approved, in the financial year ended 31 March 2022, the creation of a Core Project Action Fund. This designated fund releases all free reserves above twelve months of operational expenditure (£2,455,604) as funds available for immediate deployment on project activities. As at 31 March 22, the Core Project Action Fund had supported charitable activities to the value of £159,398 and had a remaining balance of £383,443.

In addition, on a regular basis and on the provision of considered proposals (reviewed against Blue Marine’s proposed project criteria) by the executive team, specific consideration will be given by the Trustees as to whether any further unrestricted funds should be set aside and designated for use to explore potential project opportunities. Such designations of unrestricted funds will ordinarily only be considered if, in the opinion of the Trustees, the first objective above is met though this is subject to Trustees’ discretion.

Fundraising Policy

Blue Marine Foundation Trustees are committed to ensuring that fundraising activities are carried out in an ethical manner and Blue Marine adheres to the Code of Fundraising Practice as set out by the Fundraising Regulator. Blue Marine complies with the four values supporting the standards in the Code:

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Blue Marine has an in-house fundraising team whose efforts are focused on raising funds from established trusts and foundations, corporate partners and high-net-worth individuals. Blue Marine’s fundraising team will not exploit a vulnerable circumstance, the lack of knowledge or apparent need for care and support of any donor at any point in time. Blue Marine does not have widespread engagement with the general public, run digital campaigns or use third party fundraisers.

Blue Marine carries out due diligence and has agreements in place with all corporate partners and commercial participators.

Blue Marine has received no complaints about its fundraising in the year ended 31 March 2022.

Remuneration Policy

Blue Marine Foundation aims to maximise its impact through paying fair salaries to reward talented people. Blue Marine is committed to ensuring that we pay our people fairly to attract and retain the right skills to have the greatest impact in delivering our charitable objectives. In determining the remuneration of Blue Marine staff, the Remuneration Committee considers

all relevant factors including benchmarking against the charity sector, the complexity of the role, the experience of the member of staff and ensuring the pay is responsible in line with our charitable objectives. The objective of the Remuneration Committee is to ensure that the senior management and staff team are provided with appropriate incentives to encourage enhanced performance and are, in a fair and responsible manner, rewarded for their individual contributions to the success of the Charity.

The appropriateness and relevance of the remuneration policy is reviewed annually, including reference to benchmarking with other charities ensuring Blue Marine remains sensitive to the broader issues of executive pay and the gender pay gap.

Investment Policy

Blue Marine Foundation’s governing documents permit investment of funds where the purpose of the investment falls within Blue Marine’s charitable purpose, including the creation and management of Endowment Funds. All of Blue Marine’s investments will be invested with a qualified professional asset manager or managers, authorised by the Financial Conduct Authority (FCA).

The AIMPACT Endowment Fund is managed by a dedicated AIMPACT Committee made up of at least three members, at least one of which will also be a Trustee of Blue Marine. The Trustees of Blue Marine authorise the committee members to make investments and expenditures within the purpose of the fund. The AIMPACT Committee provides thrice-yearly reports to the Blue Marine Trustees covering 1) disbursements made to the beneficiary 2) the status of projects financed by the fund and 3) annual investment performance reports. Investment objectives are followed as per the agreed Statement of Investment Principles.

Because Blue Marine’s investments are made for the benefit of the global environment, the investment committee members seek, where

possible, to invest the fund with managers who adopt an environmentally sustainable approach to investment. In particular, the committee seeks to avoid investment in companies which contribute disproportionally to climate change, are involved in mining, particularly deep-sea mining and which are involved in or support overfishing. Companies with poor governance, poor human rights records and poor treatment of employees are also avoided where possible. Blue Marine requires that investee companies report on the environmental, social and governance performance of their investments as well as the financial performance.

Risk Management Policy

Blue Marine Foundation takes a pro-active and agile approach to risk management and considers the following three elements to be essential in ensuring the risks are properly understood, mitigated and prepared for. This risk management policy has been re-conceptualised as a result of the global pandemic, following a review of the adaptability and strengths of Blue Marine in its response to the rapidly evolving challenges and identifying weaknesses in the face of unpredictable circumstances.

Element 1: Risk Register. Blue Marine maintains a traditional risk register, updated and approved by the Board of Trustees on an annual basis. The risk register is presented as part of the annual independent audit of accounts. The purpose of the risk register is to: 1) Provide a library of foreseeable external and internal risks, scored on likelihood and impact. 2) Prompt preventative action to update policies and procedures to mitigate risks where possible. 3) Identify the most serious risks that require further response planning.

Blue Marine recognises that a risk register is only a small part of a resilient organisation’s risk management approach and understands that the risk register is limited to dealing only with foreseeable, predictable risks.

Element 2: Risk Culture The global pandemic has proven the need for a more reactive approach to risk-management and Blue Marine considers organisational culture to be a key factor in its resilience. Blue Marine recognises the following aspects as critical to maintaining a strong riskaware culture throughout the organisation:

Element 3: Risk Response Plans. The aim of a response plan is to facilitate the organisation and empower the right staff members to be more agile and reactive in combatting serious risks when they occur. Blue Marine has created six risk response plans to enable staff to react quickly and decisively should there be a risky situation requiring urgent attention.

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The risk response plans cover scenarios that could occur relating to financial risks, legal/libel risks, HR risks, PR risks, data security risks and health and safety risks.

Each response plan involves a small committee of senior staff, plus one trustee representative from the board. Each response plan contains the triggers, i.e. situations or events would trigger the response plan being actioned, the staff members that are responsible for managing the situation, the steps that the decision-makers and committee are expected to follow in their response, including additional factors to be considered, and prompts regarding appropriate communications and follow-up.

The risk response plans are communicated to all new starters and shared annually with all staff.

Other Policies

Blue Marine Foundation strives to be a transparent, accountable and trustworthy organisation. In line with these objectives, many policies are publicly available on Blue Marine’s website, including the Sustainability policy, Business Engagement policy, Anti-bribery and Corruption policy, Anti-fraud policy and Reserves policy.

Structure, governance and management

The names of the directors who served throughout the year, unless otherwise stated, are noted on page 2. The directors of the charitable company are also charity trustees for the purposes of charity law.

The liability of each guarantor in the event of a winding up is limited to £10. At 31 March 2022 there were 11 guarantors.

New Trustees are nominated by simple majority of votes at any meeting of the Trustees. New Trustees are provided with guidance as to their

responsibilities from existing Trustees, from the Senior Executives and from Blue Marine’s Terms of Reference. The duration of a Trustee’s term will be three years, with annual reviews by both parties. Any Trustees approaching the end of their three-year term may stand for re-appointment for a further three-year term.

The charitable company is governed by Memorandum and Articles of Association dated 12 February 2010. Application of income of the charitable company is limited to the promotion of its objects. Decisions are made by simple majority of votes cast at a meeting of the Trustees.

The Trustees continually assess the risks to which the charitable company might be exposed and adjust the charitable company’s strategies and implementation of objects accordingly.

The Trustees are taking steps to incorporate the Charity Governance Code into the structure and culture of Blue Marine. The governance committee meets on a six-monthly basis and progress will be reported on an ongoing basis.

Blue Marine's charitable objectives

The objects of the charitable company under the terms of the Memorandum of Association for this period and the future are:

The Trustees, having regard to the Public Benefit Guidance published by the Charity Commission, consider that the purpose and activities of Blue Marine Foundation satisfy the requirements of the public benefit test.

Trustees’ responsibilities in relation to the financial statements

The trustees (who are also directors of Blue Marine Foundation - “the charitable company” - for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the 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 year, which give a true and fair view of the state of affairs of the charitable company and group and of the incoming resources and application of resources, including the income and expenditure, of the group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and group 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 group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each Trustee is aware, there is no relevant audit information of which the company’s auditors are unaware.

Each Trustee has taken all reasonable steps that he or she ought to have taken as a Trustee in order to make himself or herself aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

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.

Auditors

The trustees’ annual report has been approved by the trustees and signed on their behalf by

Arlo Brady

Chairman, Board of Trustees

Date: 22 November 2022

52

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TRUSTEES‘ ANNUAL REPORT

53

Independent Audit Report

Opinion

We have audited the financial statements of Blue Marine Foundation (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 Match 2022 which comprise the consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the group financial statements section of our report. We are independent of the group and parent 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.

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 Blue Marine Foundation'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.

Other information

The other information comprises the information

included in the trustees’ annual report, other than the group financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the group financial statements does not cover the other information, and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the group 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 group financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion:

BLUE MARINE FOUNDATION

TRUSTEES‘ ANNUAL REPORT

54

55

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent 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 group or the parent 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

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charites Act 2011 and report in accordance with those Acts.

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 are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

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 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. 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.

Jonathan Orchard

Senior statutory auditor

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

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring

Date: 9 December 2022

for and on behalf of Sayer Vincent LLP, Statutory Auditor.

Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

FINANCIAL STATEMENTS

For the year ended 31 March 2022

58

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FINANCIAL STATEMENTS

59

Consolidated statement of financial activities

Balance sheet

(incorporating an income and expenditure account)

For the year ended 31 March 2022

**Note ** Unrestricted Restricted Endowment 2022 total Unrestricted Restricted Endowment 2021 total
£ £ £ £ £ £ £ £
Income from:
Donations and legacies 2 2,357,605 5,406,721 - 7,764,326 2,051,889 4,254,406 2,000,000 8,306,295
Other trading activities 9,543 - - 9,543 5,417 - - 5,417
Investments 169 - 16,150 16,319 418 - - 418
Total income 2,367,317 5,406,721 16,150 7,790,188 2,057,724 4,254,406 2,000,000 8,312,130
Expenditure on:
Raising funds 3 166,561 - 607 167,168 166,885 - - 166,885
Charitable activities 3 1,303,935 4,737,619 - 6,041,554 918,574 3,072,698 - 3,991,272
Tax payable by
subsidiaries		 8, 12 - - - - 37 - - 37
Total expenditure 1,470,496 4,737,619 607 6,208,722 1,085,496 3,072,698 - 4,158,194
Net income/
(expenditure) 896,821 669,102 15,543 1,581,466 972,228 1,181,708 2,000,000 4,153,936
for the year
Transfers
between funds		 - - - - (26,631) 26,631 - -
Net income/
(expenditure) before
other recognised gains		 896,821 669,102 15,543 1,581,466 945,597 1,208,339 2,000,000 4,153,936
and losses
Other gains / (losses) - - (51,247) (51,247) - - - -
Net movement in funds 896,821 669,102 (35,704) 1,530,219 945,597 1,208,339 2,000,000 4,153,936
Reconciliation of funds:
Total funds
brought forward		 2,020,135 2,545,595 2,000,000 6,565,730 1,074,538 1,337,256 - 2,411,794
Total funds
carried forward		 18 2,916,956 3,214,697 1,964,296 8,095,949 2,020,135 2,545,595 2,000,000 6,565,730

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 18 to the financial statements.

As at 31 March 2022

The group The charity
Note 2022 £ 2021 £ 2022 £ 2021 £
Fixed assets:
Intangible assets 9 16,369 7,563 16,369 7,563
Tangible assets 10a, 10b 61,623 57,177 40,423 30,357
Investments 11 1,964,296 2,000,000 1,964,496 2,000,200
2,042,288 2,064,740 2,021,288 2,038,120
Current assets:
Debtors 14 1,853,960 533,124 1,686,885 563,019
Cash at bank and in hand 4,514,954 4,153,902 4,509,954 4,148,902
6,368,914 4,687,026 6,196,839 4,711,921
Liabilities:
Creditors: amounts falling due
within one year		 15 (315,253) (186,036) (153,586) (184,312)
Net current assets 6,053,661 4,500,990 6,043,253 4,527,609
Total net assets 8,095,949 6,565,730 8,064,541 6,565,729
Funds: 18
Endowment funds 1,964,296 2,000,000 1,964,296 2,000,000
Restricted income funds 3,214,697 2,545,595 3,214,697 2,545,595
Total unrestricted funds 2,916,956 2,020,135 2,885,548 2,020,134
Total funds 8,095,949 6,565,730 8,064,541 6,565,729

Approved by the trustees and signed on their behalf by:

Arlo Brady Chairman, Board of Trustees

Date: 22 November 2022

60

BLUE MARINE FOUNDATION

FINANCIAL STATEMENTS

61

Notes to the financial statements for the year ended 31 March 2022

Consolidated statement of cash flows

For the year ended 31 March 2022

2022 2021
£ £ £ £
Cash fows from
operating activities
Net income for the
reporting period
(as per the statement		 1,530,219 4,153,936
of fnancial activities)
Depreciation and
amortisation charges		 30,354 20,049
Impairment of AIMPACT 51,247 -
Dividends, interest and rent
from investments		 (16,319) (418)
Losses on disposal on fxed
assets		 1,525 -
(Increase) / decrease in
debtors		 (1,320,836) 25,985
Outfow / infow in respect of
AIMPACT Endowment Fund*		 (15,543) (2,000,000)
Increase / (decrease) in
creditors		 129,217 (182,896)
Net cash provided by
operating activities		 389,864 2,016,656
Cash fow from investing
activities:
Dividends, interest and rents
from investments		 16,319 418
Purchase of fxed assets (45,131) (42,262)
Net cash used in investing
activities		 (28,812) (41,844)
Change in cash and cash
equivalents in the year		 361,052 1,974,812
Cash and cash equivalents at
the beginning of the year		 4,153,902 2,179,090
Cash and cash equivalents at
the end of the year		 4,514,954 4,153,902

1. Accounting policies

a) Statutory information

Blue Marine Foundation is a charitable company limited by guarantee and is incorporated in the United Kingdom.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

These financial statements consolidate the results of the charity and its wholly-owned subsidiary BMF Trading Limited on a line by line basis. Transactions and balances between the charity and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two entities are disclosed in the notes of the charity’s balance sheet. A separate statement of financial activities, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

d) Going concern

The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern.

The Covid-19 pandemic has created significant operational and financial pressures on the charitable sector. Having considered Blue Marine's successful adaptation to remote working and project delivery, the promising fundraising pipeline, and having reviewed updated cashflow forecasts, the trustees consider the adoption of the going concern basis in preparing these financial statements is appropriate.

Key judgements that the charity has made which have a significant effect on the accounts include future grants. Future grants payable are only provided for in the financial statements when there is a constructive or legal obligation for the Charity to pay out for future grants at the year end, which is dependent on the terms and conditions of the grant agreement between the Charity and the grant beneficiary.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

f) Donations of gifts, services and facilities

c) Public benefit entity

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FINANCIAL STATEMENTS

63

Notes to the financial statements for the year ended 31 March 2022

1. Accounting policies (continued)

f) Donations of gifts, services and facilities (continued)

of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

g) Interest receivable

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

i) Expenditure and irrecoverable VAT

support costs

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

j)

Grants payable

Grants payable are made to third parties in furtherance of the charity’s objects. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

k) Allocation of support costs

Resources expended are 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 on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

Governance costs are the costs associated with the

governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

l) Operating leases

m) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Major components are treated as a separate asset where they

1. Accounting policies (continued)

have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.

n) Intangible assets

Amortisation is provided on the following basis:

o) Endowment Fund

At 31 March 2022, the full amount of the original funds had been invested long term. The remaining balance is being gradually invested in the post balance sheet period.

p) Investments in subsidiaries

Investments in subsidiaries are at cost.

q) Debtors

r) Cash at bank and in hand

s) Creditors and provisions

t) Financial instruments

u) Pensions

v) Foreign Currency

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the average rate of exchange for the year. Exchange differences are taken into account in arriving at the net incoming resources figure.

64

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FINANCIAL STATEMENTS

65

Notes to the financial statements for the year ended 31 March 2022

2. Income from donations and legacies

2022 2021 2021
Unrestricted Restricted
Endowment		 Total Unrestricted Restricted Endowment Total
£ £ £ £ £ £ £ £
Donation and legacies
Corporate donations 526,586 3,134,937 - 3,661,523 244,613 2,475,846 - 2,720,459
Donations received
from individuals		 150,062 409,870 - 559,932 1,090,293 634,165 - 1,724,458
Donations received from
Private Foundations*		 184,889 1,782,311 - 1,967,200 197,363 1,080,897 2,000,000 3,278,260
Auction and events
income		 28,935 30,001 - 58,936 12,947 - - 12,947
BMYC Membership
donations		 598,353 - - 598,353 45,000 - - 45,000
Donations in kind 819,918 - - 819,918 384,179 - - 384,179
Gift Aid 48,862 250 - 49,112 64,454 38,776 - 103,230
Other Income - 49,352 - 49,352 13,040 13,049 - 26,089
Government funding - - - - - 11,673 - 11,673
2,357,605 5,406,721 - 7,764,326 2,051,889 4,254,406 2,000,000 8,306,295

2. Income from donations and legacies (continued)

The trustees would like to thank the following companies that provided pro-bono support to Blue Marine Foundation:

2022 2021
£ £
Donated services
Freud Communications PR Support 100,000 188,000
Steve Edge Design Support 21,200 83,700
Latham & Watkins LLP Legal Support 144,915 39,613
Rawlinson & Hunter Accounting Support 37,005 36,564
Yachting Pages Marketing Support - 35,000
Engel & Volkers Marketing Support - 1,302
Andrew Woods Research Support 16,100 -
Liontrust Investment Fee Rebate 11,624 -
Ocean Outdoor Marketing Support 300,000 -
Stan Sandler Research Support 692 -
Todd Last Research Support 5,000 -
University of Portsmouth Research Support 60,948 -
Kroll Investigations Support 28,000 -
Hutch Design Support 6,457 -
Clifford Chance Legal Support 87,976 -
819,917 384,179

*Donations received from Private Foundations include:

AIM Foundation | Ardevora Charibable Trust | Calouste Gulbenkian Foundation | Ciner Charitable Trust | Clore Duffield Foundation | EQ Foundation | Flotilla Foundation | Fondation Philanthropia | Fondazione Capellino | Garfield Weston Foundation | Givingforce Foundation | Hughes Charitable Foundation | J R Asprey Family Charitable Trust | John Ellerman Foundation | Kindlink Foundation | National Fish and Wildlife Foundation | P M Major Charitable Trust | Portrack Charitable Trust | Ruth Smart Foundation | Severn Rivers Trust | Somerset Wildlife Trust | Sussex Wildlife Trust | Swarovski Foundation | Swiss Philanthropy Foundation | The Addo Trust | The Charities Trust | The Whitley Animal Protection Trust | UBS Optimus Foundation | UK Online Giving Foundation | Waterloo Foundation | Wildflowl & Wetlands Trust | Zoological Society of London

66

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FINANCIAL STATEMENTS

67

Notes to the financial statements for the year ended 31 March 2022

3a. Analysis of expenditure (current year)

Raising funds Charitable Governance costs Support costs 2022 Total
£ activities £ £ £
£
Staff costs (Note 5) 136,948 1,421,324 230,340 - 1,788,612
Direct costs 5,377 3,024,356 - - 3,029,733
Markets and branding - 21,721 - 44,746 66,467
Programme related
events		 - 39,597 - 12,024 51,621
Consultancy - 64,609 - 71,275 135,884
Travel and subsistence - 93,621 - 21,372 114,993
Offce costs - 5,465 - 6,559 12,024
Premises costs - - - 94,083 94,083
IT costs - 9,417 - 32,422 41,839
Other costs - 3,535 - (370) 3,165
Depreciation and
amortisation		 - 1,503 - 28,851 30,354
Bank charges 607 - - 4,952 5,559
Interest payable - - - 623 623
Legal and
professional fees*		 - 782,912 38,373 - 821,285
Auditor fees - - 12,480 - 12,480
142,932 5,468,060 281,193 316,537 6,208,722
Support costs 24,236 251,537 40,764 (316,537) -
Governance costs - 321,957 (321,957) - -
Total expenditure 2022 167,168 6,041,554 - - 6,208,722
* Includes pro-bono services provided of £819,917
Expenditure split 3% 92% 5%

3b. Analysis of expenditure (prior year)

Raising funds Charitable Governance costs Support costs 2021 Total
£ activities £ £ £
£
Staff costs (Note 5) 132,722 1,077,245 206,054 - 1,416,021
Direct costs 2,102 1,868,440 - - 1,870,542
Marketing and branding - 1,004 - 33,057 34,061
Programme related
events		 - - - 5,425 5,425
Consultancy - 84,403 - 88,845 173,248
Travel and subsistence - 28,954 - (852) 28,102
Offce costs - 5,078 - 4,265 9,343
Premises costs - 900 - 78,817 79,717
IT costs - 1,697 - 25,430 27,127
Other costs - 2,883 - 84,332 87,215
Depreciation and
amortisation		 - 1,923 - 18,126 20,049
Bank charges - 123 - 4,619 4,742
Interest payable - - - - -
Legal and professional
fees*		 - 347,616 43,069 - 390,685
Auditor fees - - 11,880 - 11,880
134,824 3,420,266 261,003 342,064 4,158,157
Support costs 32,061 260,227 49,776 (342,064) -
Governance costs - 310,779 (310,779) - -
Total expenditure 2021 166,885 3,991,272 - - 4,158,157
* Includes pro-bono services provided of £384,179
Expenditure split 4% 89% 7%

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FINANCIAL STATEMENTS

69

Notes to the financial statements for the year ended 31 March 2022

4. Net income for the year

This is stated after charging/ (crediting):

2022 2021
£ £
Depreciation of tangible fxed assets 26,087 15,782
Loss on disposal of tangible fxed assets 1,525 -
Amortisation of intangible fxed assets 4,267 4,267
Interest payable 623 -
Operating lease rentals:
Property 86,028 76,491
Auditor's remuneration (excluding VAT):
Audit - current year 10,400 9,900
Subsidiaries - -
Foreign exchange (gains) / losses (29,496) 68,055

5. Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel (continued)

Number of employees receiving employee benefits (excluding employer pension costs and employer’s national insurance) during the year:

2022 2021*
No. No.
£60,000 - £69,999 3 -
£70,000 - £79,999 - 1
£80,000 - £89,999 1 -
£90,000 - £99,999 2 1
£100,000-£109,999 1 2

*BLUE launched a salary sacrifice for enhanced employer pension contributions scheme in year ending 31 March 2021.

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel amounted to £601,433 (2021: £576,057). The comparative has been restated to include director-level employees.

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2021: £nil). One trustee, Callum Roberts received payment of £2,049 for professional services supplied to the charity (2021: £17,056).

5. Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

2022 2021
£ £
Salaries and wages 1,422,318 1,089,963
Employer’s contribution to defned
contribution pension schemes		 184,538 137,598
Employers national insurance contributions 158,494 121,234
Other staff costs 23,262 67,226
1,788,612 1,416,021

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £1,187 (2021: £31) incurred by 1 (2021: 1) member relating to attendance at meetings of the trustees.

6. Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 33 (2021: 23).

7. Related party transactions

There are donations totalling £137,505 (2021: £250,063) from related parties. There are no donations from related parties which are outside the normal course of business.

Other creditors include £1,687 (2021: £1,687) due to two trustees in respect of the funds advanced upon incorporation of BMF Trading Limited. The balance is interest free and repayable on demand.

Appleby Consultancy Services Limited, a company of which TPS Appleby is a director provided consultancy services of £36,750 (2021: £41,406).

Freud Communications, a public relations company of which A K O Brady is a director, provided pro bono PR services of £100,000 (2021: £188,000).

3WhiteHats Ltd, an SEO company of which A K O Brady is a director, provided services of £15,334 (2021: £6,480).

Clore Duffield Foundation, a foundation of which Dame Vivien Duffield DBE is a trustee and chairman, who is a family member of G L Duffield, made donations of £500 (2021: £25,500).

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FINANCIAL STATEMENTS

71

Notes to the financial statements for the year ended 31 March 2022

7. Related party transactions (continued)

Rawlinson & Hunter LLP, a professional services firm of which D C Davies is a member provided pro bono accounting services to the charity and its subsidiary amounting to £37,005 (2021: £36,563).

During the year, Blue Marine Foundation received £334,407 (2021: £270,231) of gift aid and £4,000 (2021: £2,500) management recharges from BMF Trading. At the year end the balance owed by Blue Marine Foundation to BMF Trading Limited was £64,325 (2021 £52,406).

All the above related party transactions were entered into at arms' length rates, subjected to appropriate benchmarking and were approved by the Board of Trustees in accordance with the Charity's constitution.

8. Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The group's charge to corporation tax in the year was:

2022 2021
£ £
UK corporation tax at 19% - 37

9. Intangible fixed assets

The group and charity

Website Trademark Total
development
£ £ £
Cost
At the start of the year 18,302 1,767 20,069
Additions in year 13,073 - 13,073
At the end of the year 31,375 1,767 33,142
Amortisation
At the start of the year 11,161 1,345 12,506
Charge for the year 4,000 267 4,267
At the end of the year 15,161 1,612 16,773
Net book value
At the end of the year 16,214 155 16,369
At the start of the year 7,141 422 7,563

10. Tangible fixed assets

10a. The group and charity

10a. The group and charity
Motor Vehicles Leasehold Improv. Offce Equipment Total
£ £ £ £
Cost
At the start of the year 26,820 5,000 60,942 92,762
Additions in year - - 32,058 32,058
Disposals in year - - (2,835) (2,835)
At the end of the year 26,820 5,000 90,165 121,985
Depreciation
At the start of the year - 3,917 31,668 35,585
Charge for the year 5,620 1,000 19,467 26,087
Eliminated on disposal - - (1,310) (1,310)
At the end of the year 5,620 4,917 49,825 60,362
Net book value
At the end of the year 21,200 83 40,340 61,623
At the start of the year 26,820 1,083 29,274 57,177
10b. The charity
Leasehold Improv. Offce Equipment Total
£ £ £
Cost
At the start of the year 5,000 60,942 65,942
Additions in year - 32,058 32,058
Disposals in year - (2,835) (2,835)
At the end of the year 5,000 90,165 95,165
Depreciation
At the start of the year 3,917 31,668 35,585
Charge for the year 1,000 19,467 20,467
Eliminated on disposal - (1,310) (1,310)
At the end of the year 4,917 49,825 54,742
Net book value
At the end of the year 83 40,340 40,423
At the start of the year 1,083 29,274 30,357

All of the above assets are used for charitable purposes.

72

BLUE MARINE FOUNDATION

FINANCIAL STATEMENTS

73

Notes to the financial statements for the year ended 31 March 2022

11. Investments

11. Investments
The group
2022 £
2021 £		 The charity
2022 £
2021 £
Fair value at the start of the year 2,000,000
-		 2,000,000
-
Additions at cost 16,150
2,000,000		 -
2,000,000
Investment managers' fees (607)
-		 -
-
Net gain /(loss) on change in fair value (51,247)
-		 -
-
Fair value at end of the year 1,964,296
2,000,000		 2,000,000
2,000,000

Investments comprise:

The group
2022 £
2021 £		 The charity
2022 £
2021 £
UK Common investment funds 1,888,753
500,000		 1,888,753
500,000
Cash 75,543
1,500,000		 -
1,500,000
1964296
2000000		 1888753
2000000

The Group

2022 £ 2021 £
AIMPACT investment 1,964,296 2,000,000
funds

At 31 March 2022, £1,940,000 of the AIMPACT funds (see note 1(o)) had been invested in managed funds with Liontrust Asset Management with the remaining £60,000 being held in cash as decided by the investment committee. In addition to this, income was generated from the investment at a value of £16,150, bank charges incurred of £607 and finally, an impairment loss on the investment was suffered for the year ended 31 March 2022, at the value of £51,247.

Application of total return to permanent endowment funds

The trustees decided to adopt a policy of total return accounting for the permanent endowed funds from 1 April 2021. This means that you recognise what the original capital gift was (the trust for investment) and this must be held indefinitely. The gains and losses and income that arise on this investment form the 'unapplied total return', which the trustees have the power to release and spend.

The trustees agreed to spend 3% annually, to be funded first from the income and any required balance by way of withdrawals from capital. This target would be reviewed annually by way of a 'smoothing formula' over rolling 5 year periods to ensure that this withdrawal target remains sustainable.

The preserved value of the permanent endowment fund represents its fair value as at 31 March 2022.

Trust for Unapplied Total
Investment Total Return Endowment
£ £ £
At beginning of reporting period
Gift component of Permanent Endowment 2,000,000 - 2,000,000
Unapplied total return - - -
Total 2,000,000 - 2,000,000
Investment return dividend and interest - 16,150 16,150
Investment return realised and unrealised losses - (51,247) (51,247)
Less investment management costs - (607) (607)
Total 2,000,000 (35,704) 1,964,296
Unapplied total return applied as income in the - - -
reporting period
Net movement in the period 2,000,000 (35,704) 1,964,296

The Charity

Subsidiary undertakings

2022 £ 2021 £
Cost and net book value 200 200
At 1 April and 31 March
Details of the subsidiary undertakings are set out below:
Country of incorporation % held Activity
BMF Trading Limited
200 Ordinaryshares of £1 each		 England 100 Providing support to activities of
Blue Marine Foundation

BLUE MARINE FOUNDATION

FINANCIAL STATEMENTS

74

75

Notes to the financial statements for the year ended 31 March 2022

12. Subsidiary undertaking

The charity owns the whole of the issued ordinary share capital of BMF Trading Limited, a company registered in England. The company number is 07004094. The registered office address is Third Floor, South Building, Somerset House, The Strand, London, WC2R 1LA.

The subsidiary is used for non-primary purpose trading activities by providing marketing and branding services to commercial organisations. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are distributed under Gift Aid to the parent charity.

A S Blount, a trustee is also director of the subsidiary. C M J Gorell Barnes and G L Duffield were also directors however they resigned on 30 March 2022.

Summary of subsidiary results

2022 2021
£ £
Turnover 375,358 275,649
Cost of sales and administration costs (9,543) (5,180)
Proft on ordinary activities before interest and taxation 365,815 270,469
Interest payable - -
Proft on ordinary activities before taxation 365,815 270,469
Taxation on proft on ordinary activities - (37)
Proft for the fnancial year 365,815 270,432
Retained earnings
Total retained earnings brought forward - (200)
Proft for the fnancial year 365,815 270,432
Distribution under Gift Aid to parent charity (334,407) (270,232)
Total retained earnings carried forward 31,408 -

The aggregate of the assets, liabilities and reserves was:

Assets 222,725 54,330
Liabilities (191,117) (54,130)
Net Assets 31,608 200
Allotted, called up and fully paid shares 200 200
Reserves 31,408 -
Total funds 31,608 200

13. Parent charity

The financial activities shown in the Consolidated Financial Statements includes those of the Charity’s wholly owned subsidiary BMF Trading Limited.

Summary of financial activities undertaken by the Charity

2022 2021
£ £
Donations and legacies 7,749,069 8,306,295
Cost of raising funds (166,510) (167,400)
Charitable activities (6,041,554) (3,949,416)
Other (7,265) (36,164)
Interest receivable 16,319 418
Net incoming resources 1,550,059 4,153,733
Other gains and losses (51,247)
Net movement in funds 1,498,812 4,153,733
Funds brought forward 6,565,729 2,411,996
Funds carried forward 8,064,541 6,565,729
Debtors
The group The charity
2022 2021 2022 2021
£ £ £ £
Trade debtors 976,544 109,612 776,550 90,552
Other debtors 4,024 13,088 4,024 9,637
Prepayments 84,724 68,582 84,724 68,582
Amounts due from group undertakings - - 32,917 52,406
Accrued income 788,668 341,842 788,668 341,842
1,853,960 533,124 1,686,885 563,019

14. Debtors

Amounts owed to/from the parent undertaking are shown in note 14.

76

BLUE MARINE FOUNDATION

FINANCIAL STATEMENTS

77

Notes to the financial statements for the year ended 31 March 2021

15. Creditors: amounts falling due within one year

The group The charity
2022 2021 2022 2021
£ £ £ £
Trade creditors - 48,748 - 48,748
Other creditors 2,517 13,699 831 12,012
Pension scheme liability 19,526 13,924 19,526 13,924
Accruals and deferred income 84,897 74,684 84,897 74,684
Other taxation and social security 51,838 34,981 48,332 34,944
Deferred income (note 16) 156,475 - - -
315,253 186,036 153,586 184,312

16. Deferred income

The group The charity
2022 2021 2022 2021
£ £ £ £
Balance at the beginning of the year - - - -
Amount released to income in the year - - - -
Amount deferred in the year 156,475 - - -
Balance at the end of the year 156,475 - - -

17a. Analysis of group net assets between funds (current year)

General Restricted Endowment Total
unrestricted funds funds funds
£ £ £ £
Intangible fxed assets 16,369 - - 16,369
Tangible fxed assets 61,540 83 - 61,623
Investments - - 1,964,296 1,964,296
Debtors 489,056 1,364,904 - 1,853,960
Cash at bank and in hand 2,665,244 1,849,710 - 4,514,954
Creditors (315,253) - - (315,253)
Net assets at 31 March
2022		 2,916,956 3,214,697 1,964,296 8,095,949

17b. Analysis of group net assets between funds (prior year)

General Restricted Endowment Total
unrestricted funds funds funds
£ £ £ £
Intangible fxed assets 7,563 - - 7,563
Tangible fxed assets 56,093 1,084 - 57,177
Investments - - 2,000,000 2,000,000
Debtors 344,874 188,250 - 533,124
Cash at bank and in hand 1,780,842 2,373,060 - 4,153,902
Creditors (169,237) (16,799) - (186,036)
Net assets at 31 March 2021 2,020,135 2,545,595 2,000,000 6,565,730

78 BLUE MARINE FOUNDATION

FINANCIAL STATEMENTS

79

Notes to the financial statements for the year ended 31 March 2022

18a. Movement in funds (current year)

At 1 April Income Expenditure Transfers At 31 March
2021 & gains & losses 2022
£ £ £ £ £
Endowment funds
AIMPACT 2,000,000 16,150 (51,854) - 1,964,296
Restricted funds
Aeolians 170,478 (38,550) (108,763) - 23,165
Ascension - 195,390 (156,219) - 39,171
Asia 26,508 - 372 - 26,880
Dutch Carribean 8,777 147,807 (50,539) - 106,045
Blackwater 6,947 21,467 (24,522) - 3,892
Caspian 15,613 - - - 15,613
High Seas 76,883 54,569 (49,530) - 81,922
Lyme Bay 38,861 176,963 (144,449) - 71,375
North Devon 12,633 - (1,093) - 11,540
West Scotland 1,818 - - - 1,818
Berwickshire 102,844 119,864 (147,529) - 75,179
Jersey 139,427 227,780 (221,933) - 145,274
Maldives 103,312 103,771 (142,438) - 64,645
Media Unit 140,018 275,585 (188,518) - 227,085
Med Roll Out 8,874 (8,874) - - -
Namibia 25,213 25,000 (23,430) - 26,783
National Marine Parks 26,555 137,180 (90,838) - 72,897
Patagonia 271,468 38,200 (255,635) - 54,033
SAFE Initiatives 24 - (24) - -
Solent 248,538 277,289 (344,950) - 180,877
St Helena 57,566 168,191 (140,404) - 85,353
Sturgeon 41,796 142,246 (80,023) - 104,019
Integrated Ecosystem Restoration 32,308 189,298 (3,977) - 217,629
Wild Oysters 112,346 49,097 (61,054) - 100,389
UK Consortium 89,282 90,263 (137,175) - 42,370
Kelp 57,268 119,678 (70,918) - 106,028
Species at Risk 34,485 71,436 (46,864) - 59,057

18a. Movements in funds (current year) continued

At 1 April Income Expenditure Transfers At 31 March
2021 & gains & losses 2022
£ £ £ £ £
Restricted funds (cont.)
HPMAs 74,755 51,163 (80,031) - 45,887
Italian Rollout 13,412 95,099 (37,708) - 70,803
Mallorca 1,102 10,000 - - 11,102
Turkey 143,638 261,403 (231,711) - 173,330
Digitising Blue Projects 12,449 311 (8,438) - 4,322
Ocean Governance 35,855 126,317 (138,200) - 23,972
Offshore Marine Reserves 133,045 - (31,186) - 101,859
RFMOs 101,220 119,300 (164,195) - 56,325
Barclays Carbon 15,633 105,753 (109,295) - 12,091
CVC Carbon Credits 11,071 50,000 (61,071) - -
Blue Carbon Unit 28,428 114,502 (109,454) - 33,476
Blue Education Unit 3,495 57,408 (57,514) - 3,389
Blue Economics Unit 21,704 69,854 (45,642) - 45,916
Barclays Rapid Action Fund
(2021: Barclays Reaction Fund)		 50,000 50,000 (48,838) - 51,162
Barclays Exploratory Fund 50,000 50,000 (51,517) - 48,483
Windfarms - 58,479 (29,171) - 29,308
Menorca - 8,875 (8,875) - -
Cyprus - 10,000 (10,000) - -
Greece - 324,260 (77,662) - 246,598
Salmon Farms - 106,950 (43,849) - 63,101
Brussels - 73,903 (17,122) - 56,781
Convex Seascape Survey - 748,867 (714,580) - 34,287
Accelerator Fund - 56,865 (56,865) - -
Blue Science Unit - 25,000 (16,100) - 8,900
MPA Exploratory Fund - 73,903 (62,540) - 11,363
Blue Legal Unit - 138,855 (14,335) - 124,520
Blue Investigations Unit - 36,004 (21,321) - 14,683
Total restricted funds 2,545,595 5,406,721 (4,737,619) - 3,214,697

80 BLUE MARINE FOUNDATION

FINANCIAL STATEMENTS

81

Notes to the financial statements for the year ended 31 March 2022

18a. Movements in funds (current year) continued

At 1 April Income Expenditure Transfers At 31 March
2021 & gains & losses 2022
£ £ £ £ £
Designated funds
Project Catalyst Fund - 124,391 (159,398) 68,589 33,582
Patagonia 114,614 9,160 (45,042) - 78,732
Blue Policy Unit - 33,291 (33,291) - -
Blue Investigations Unit 17,156 2,534 (19,690) - -
Blue Legal Unit 125,641 - (89,894) - 35,747
Total designated funds 257,411 169,376 (347,315) 68,589 148,061
General funds 1,762,724 2,197,941 (1,123,181) (68,589) 2,768,895
Total unrestricted funds 2,020,135 2,367,317 (1,470,496) - 2,916,956
Total funds 6,565,730 7,790,188 (6,259,969) - 8,095,949

grants with remainder of expenditure planned for 2022/23. [E] Connecting people with the sea (National Marine Parks, Digitising BLUE Projects, Maldives). Funds received relate to multi-year grants with remainder of expenditure planned for 2022/23.

Purposes of endowment funds

The Ascension Island MPA Conservation Trust (AIMPACT) fund is supporting a marine protected area for the benefit of the global environment, managed as per the agreed Statement of Investment Principles.

[F] Strategic units (Science, Policy, Investigations, Carbon, Education, Economics, Legal and Media) and their developmental projects (HPMAs, RFMOs, Ocean Governance, Brussels, Convex Seascape Survey and Accelerator Fund). Funds held relate to planned activities for the 2022/23 year including involvement accross all of Blue Marine's five key strategic interventions.

Purposes of restricted funds

Restricted funds are held for expenditure in the 2022/23 financial year. The balances are held for the following purposes:

[A] Delivering models of sustainable fishing (Lyme Bay, Aeolians, Italian Rollout, Mallorca, Greece). Funds held for planned activities for the ongoing development of Lyme Bay and Aeolians demonstrator sites accross the UK and Mediterranean, and expansion to new locations during 2022/23.

Purposes of designated funds

Designated funds have been created by the board of trustees for the following purposes:

[B] Securing large-scale marine protected areas (St Helena, Ascension, Dutch Caribbean, Turkey, High Seas). Funds received relate to multi-year grants with remainder of expenditure planned for 2022/23.

[A] Project Catalyst Fund is a designation of 'free' reserves in excess of 12 months of running costs that is for the purpose of enabling rapid action on project activities. It seeks to keep the Blue Marine Foundation agile, responsive and effective.

[C] Restoration (Solent, Blackwater, Wild Oysters, Integrated Habitat Restoration, Windfarms, Sturgeon, Kelp). Funds held for planned activities for the continuation of the feasibility studies and restoration of oysters, seagrass and saltmarsh in the Solent, the finalisation of the Windfarms feasiblity study, continuation of developing Sturgeon restoration project in Wales and the Kelp restoration project in Sussex.

[B] Patagonia is gift aid that has been deemed unrestricted, arising from restricted donations towards the Patagonia project. Blue Marine has chosen to designate this gift aid towards the Patagonia project.

[C] The Policy Unit, Legal Unit and Investigations Units all receive designated funding towards activities that benefit a range of Blue Marine's projects.

18b. Movements in funds (prior year)

At 1 April Income Expenditure Transfers At 31 March
2020 & gains & losses 2021
£ £ £ £ £
Endowment funds
AIMPACT - 2,000,000 - - 2,000,000
Restricted funds
Aeolians 150,475 83,036 (63,033) - 170,478
Ascension 135,522 194,327 (344,327) 14,478 -
Asia 16,035 10,840 (367) - 26,508
Dutch Carribean - 36,250 (27,473) - 8,777
Blackwater - 52,312 (45,365) - 6,947
Caspian 17,113 - (1,500) - 15,613
High Seas 82,213 60,950 (66,280) - 76,883
Lyme Bay 74,152 141,951 (177,242) - 38,861
North Devon 14,040 - (1,407) - 12,633
West Scotland 15,308 - (13,490) - 1,818
Berwickshire - 172,244 (69,400) - 102,844
Jersey 58,000 165,549 (84,122) - 139,427
Maldives 157,707 54,952 (109,347) - 103,312
Media Unit 86,048 286,986 (233,016) - 140,018
Med Roll Out 16,169 10,000 (17,295) - 8,874
Namibia 28,111 15,000 (17,898) - 25,213
National Marine Parks 14,621 123,111 (111,177) - 26,555
Patagonia 65,000 384,786 (178,318) - 271,468
SAFE Initiatives 57,446 17,950 (75,372) - 24
Solent 106,203 355,643 (213,308) - 248,538
St Helena 138,405 100,338 (181,177) - 57,566
Sturgeon 9,932 83,490 (51,626) - 41,796
Integrated Ecosystem Restoration - 63,420 (31,112) - 32,308
Wild Oysters - 153,640 (41,294) - 112,346
UK Consortium 94,756 74,815 (80,289) - 89,282
Kelp - 94,530 (37,262) - 57,268
Species at Risk - 64,170 (29,685) - 34,485

[D] Stopping bad fishing practices (RFMOs, Offshore Marine Reserves, Salmon Farms). Funds received relate to multi-year

82 BLUE MARINE FOUNDATION

FINANCIAL STATEMENTS

83

18b. Movements in funds (prior year) continued

At 1 April Income Expenditure Transfers At 31 March
2020 & gains & losses 2021
£ £ £ £ £
HPMAs - 117,185 (42,430) - 74,755
Italian Rollout - 34,587 (21,175) - 13,412
Mallorca - 22,451 (21,349) - 1,102
Turkey - 250,000 (106,362) - 143,638
Digitising Blue Projects - 22,218 (9,769) - 12,449
Ocean Governance - 79,120 (43,265) - 35,855
Offshore Marine Reserves - 187,500 (54,455) - 133,045
RFMOs - 170,000 (68,780) - 101,220
Barclays Carbon - 107,065 (91,432) - 15,633
CVC Carbon Credits - 150,000 (138,983) - 11,017
Blue Carbon Unit - 54,800 (26,372) - 28,428
Blue Education - 105,440 (114,098) 12,153 3,495
Blue Economics - 53,750 (32,046) - 21,704
Barclays Reaction Fund - 50,000 - - 50,000
Barclays Exploratory Fund - 50,000 - - 50,000
Total restricted funds 1,337,256 4,254,406 (3,072,698) 26,631 2,545,595
Designated funds
Political Engagement - - (15,416) 15,416 -
Project Scoping - - (20,623) 20,623 -
Patagonia* 95,859 57,885 (39,131) - 114,614
Self-Funded Projects - - (17,902) 17,902 -
Blue Science Unit - - (60,110) 60,110 -
Blue Investigations Unit - - (82,844) 100,000 17,156
Blue Legal Unit - - (74,359) 200,000 125,641
Total designated funds 95,859 57,885 (310,385) 414,051 257,411
General funds 978,679 1,999,839 (775,111) (440,682) 1,762,724
Total unrestricted funds 1,074,538 2,057,724 (1,085,496) (26,631) 2,020,135
Total funds 2,411,794 8,312,130 (4,158,194) - 6,565,730

19. Operating lease commitments payable as a lessee

The group’s total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

Property
2022 2021
£ £
Less than one year 69,119 45,493
Between one and fve years 246,367 -
315,486 45,493

20. Controlling party

The charity is controlled by its Trustees.

21. Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The Memorandum of Association provides that every member, as defined by Clause 8 of the Articles of Association, is liable to contribute a sum not exceeding £1 in the event of the company being wound up while he or she is a member. At 31 March 2022 there were 8 (2021: 10) members.

84 BLUE MARINE FOUNDATION Image Credit: George Karbus

3rd Floor South Building, Somerset House, Strand, London, WC2R 1LA

+44 0207 845 5850

info@bluemarinefoundation.com www.bluemarinefoundation.com