## CLIMATE BONDS INITIATIVE 

TRUSTEES’ REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 

31 DECEMBER 2021 

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CLIMATE BONDS INITIATIVE 

CONTENTS 

||Page|
|---|---|
|Charity Reference and Administrative Details|2|
|Report of the Trustees|3-8|
|Report ofthe Independent Auditor|9-12|
|Consolidated Statement of Financial Activities (including the||
|Income and Expenditure Account)|13|
|Balance Sheets|14|
|Consolidated Statement of Cash Flows|15|
|NotestotheFinancialStatements|16-31|



1 



; 

## CLIMATE BONDS INITIATIVE 

## CHARITY REFERENCE AND ADMINISTRATIVE DETAILS 

Trustees Mr Nicholas Silver (Chair) Mr Simon Cooper Ms Doris Honold Dr Karl Mallon Mr Bryan Martel (resigned 1 July 2022) Prof Cynthia Williams Ms Karen Kearney (appointed 26 July 2021) Mr Jonathan Stone (appointed 26 July 2021) 

## CEO Mr Sean Kidney 

Company Number 07455730 

Charity Number 1154413 

Registered Office First Floor Queen Street Place London EC4R 1BE 

Bankers HSBC UK Bank plc 1 Centenary Square Birmingham B1 1HQ 

Auditor PKF Littlejohn LLP 15 Westferry Circus Canary Whart London E14 4HD 

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REPORT OF THE TRUSTEES 

## CLIMATE BONDS INITIATIVE 

The Trustees are pleased to present the audited consolidated Financial Statements of Climate Bonds Initiative (‘the Charity’) together with the Annual Report for the year ended 31 December 2021. The Financial Statements have been prepared in accordance with the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102). 

The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Charities Act 2011, Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) (applicable from 1 January 2019). 

The company qualifies as small under section 383, so the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required. 

## Objectives and Activities 

The objectives of the Charity are the preservation and conservation of the environment (in particular but not exclusively) by: 

- serving as a catalyst to mobilise the global investment required in developing and developed countries to address the threat of catastrophic climate change; 

- working to align government policy, industry development and institutional finance toward the timely and affordable deployment of a global low carbon economy; and 

- e ensuring the environmental credibility of debt issuance and investment. 

The Charity carries out the following general activities in direct support of the objectives: 

1. Advocacy - to encourage and enthuse the global financial community, industries and governments to support the transition to a low carbon economy. 

2. Capacity-building and training - for the wide range of stakeholders, including Governments, to actively participate and help drive the development of the green bonds market. 

3. Stakeholder engagement and events - to create awareness and knowledge of the opportunity of the green bonds market and trends for future growth. 

The activities that the Charity carries out to support the accomplishment of these objectives are organised under the following seven work streams: 

1. Standards - develops Paris-aligned, sector-specific, science-based criteria for the Climate Bonds Standard which serves as a tool for investors to assess the credibility of green bonds globally. The team manages and coordinates a panel of independent experts in the development of the criteria for key sectors, from the initial scientific analysis through to the finalisation of internationally accepted definitions of the Climate Bonds Standard. 

2. Certification - manages the application of the certification label for green bonds that have been independently verified to be in compliance to the Climate Bonds Standard. 

3. Market intelligence - monitors’ and reports on outstanding bonds where proceeds are going to climate change solutions globally and provides commentary on the environmental relevance of underlying assets and projects linked to green bonds, with a view to shaping global markets towards climate solutions. 

4. Policy - policy analysis and proposals for Governments, financial sector regulators and other public sector bodies that will foster the growth climate-related finance, including the green bonds market. 

5. Partnerships - engagement, education and support for investors, banks and others to promote capital flows to climate action, through access to green bond data and analysis and through collaborative activities. 

6. Market development - Government and financial sector regulator support and investor education around the world. 

. 

7. Communications and media - external communications, media relations, brand and public profile. 

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CLIMATE BONDS INITIATIVE 

REPORT OF THE TRUSTEES 

## Public Benefit Statement 

## The Charity has regard to the guidance on public benefit published by the Charity Commission. 

Climate change is an enormous worldwide challenge that will affect nations, communities and societies. Addressing that challenge requires huge levels of financing immediately, as well as in the near to medium future. Climate and green bonds have the potential to make a major contribution to that financing. For the climate bonds market to grow, investments need to be underpinned by confidence in the green credentials of bonds. The Charity manages the Climate Bond Standards that play a vital role in ensuring that confidence. 

## Details of activities in furtherance of public benefit are set out in this report. 

## Principal Risks and Uncertainties 

The Trustees have assessed the major risks that the Charity faces in relation to its operations and finances and are satisfied that the Charity is taking the action necessary to mitigate its exposure to these risks. A risk assessment register is being maintained and updated on a regular basis. 

The main risks and uncertainties facing the Charity relate to: 

- e Financial stability: Ensuring that the Charity's sources of income continue in the future requires maintaining a range of income streams, maintaining good relationships with the Charity's financial supporters and continuing to provide guidance and encouragement that is respected and well-received by the international financial markets and governmental regulators. 

- e Lack of engagement from potential bond issuers: If bond issuers do not recognise the value of issuing green bonds the charity's overall objective to stimulate green growth is diminished. 

- « Lack of engagement from other financial market stakeholders such as investors, underwriting banks and domestic/international development banks. 

- « Lack of participation by policymakers and regulators as a result of disinterest in engaging with our outputs and advocacy. This could put the Climate Bonds's leading international standing at risk. 

## Achievements and Performance 

## Review of activities in the year 

The main activities in the year included: 

- « Developing Climate Resilience Principles for use by Governments, investors and the banking sector. « Expansion of activities in market development in Latin America, driving market intelligence, taxonomy and standards and contributing to the development of the Colombia's green taxonomy and the Chilean Taxonomy Roadmap. 2021 saw the issuance of the world’s first green bond for agriculture in Brazil, as well as the first certification under Forestry and the first Bioenergy certification. In total, in Latin America in 2021, over 140 bonds were issued, 


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- e Further increase in India programmes with active membership of key working groups at national level in sustainable finance. Indian GSS debt issuance increased more than sixfold in 2021 to reach a value of USD$7.5bn. 2021 also saw a 126% increase in green bond volumes with Climate Bonds Certification. 

- « Our Transition programme, which began in 2020, produced a Transition Finance for Transforming Companies paper, which lays out the principles underlying a credible entity's transition strategy. 

- e Delivery of 43 training programmes worldwide, including Green Bond training, taxonomy and verification and certification training. Additionally, two of our programmes gained CPD certification, with more to follow. 

- e Work by the Standards team with experts around the world to extend the number of sector-specific criteria for green investments. 

- * Continuing to champion and promote green finance milestones and framing future global investment objectives and goals. 

- e Further increases in the number of debt instruments certified under the Climate Bonds Standard. 

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REPORT OF THE TRUSTEES 

## CLIMATE BONDS INITIATIVE 

- e Astrong communications & media strategy resulting in over 6.5k media mentions in 2021, working to maintain and enhance Climate Bonds's ability to lead the conversation in the green finance space. Additionally, 38 webinars were delivered, attracting 14,340 attendees and 24,747 YouTube views. 

- e Influencing Central Bank and Regulator policy towards greening the global financial system. e Climate Bonds Initiative’s 5-day annual conference, “The 2030 Green Window framing a sustainable future” brought together key stakeholders from 121 countries and 1,946 organisations (a 13% increase on prior year attendees — the best-attended conference in Climate Bonds’ history) and fostered pivotal discussions across borders, discussing the latest in transition, sustainable and climate finance. 

Amongst others, the Charity has carried out high level collaborations with: 

- Directorate General FISMA, the EU Commission department responsible for EU policy on banking and finance. 

- « Financial sector regulators and initiatives, for example the network for greening the financial system (NGSF) representing 60+ Central Banks around the world, and the ASEAN Capital Markets Forum (of regulators). 

- e The International Capital Markets Association (ICMA) Green Bond Principles. « NGOs such as the Natural Resources Defence Council and the World Resources Institute (WRI). ¢ Government ministries and regulators, such as the Ministry of Environment in Japan (MOE\); the Ministry of Infrastructure and Ministry of Agriculture in Brazil; People's Bank of China: Ministry of Finance Chile; and the Hong Kong Monetary Authority. 

The primary impact of the Charity has been in helping to promote and support the rapid growth that has occurred since 2015 in green bond markets around the world. 

## Key Performance Indicators (KPI's) 

- ¢ The Charity is on course to deliver criteria for the Climate Bonds Standard across key sectors identified as critical to achieving the targets set by the Paris Agreement. 

- e The level of green bonds certified under the Climate Bonds Standard continues to increase. e Our Market Intelligence team maintains professional monitoring of and provides relevant, timely reports on the international bond markets to quantify the development and issuance of green bonds and other labelled debt instruments. 

- ¢ Climate Bonds Initiative maintains its high standards of preparation, publication and presentation of policy and technical analyses. 

- « Climate Bonds Initiative continues to expand the breadth and depth of its partnerships with investors, banks, data service providers and other key beneficiaries. 

- Climate Bonds Initiative continues to increase its geographical reach. 

- The Charity continues to lift Climate Bonds Initiative's global brand recognition, profile and share of voice on key issues, 

## Financial Review ‘ 

For the year ended 31 December 2021, the Charity had income of £6.5m (2020: £3.6m) and incurred expenditure of £5.1m (2020: £3.2m). 

Climate Bonds Initiative's success continues to be built upon the breadth and depth of relationships developed over time with investors, banks and others, as well as an increase in the geographical reach of the organisation's work, 

Climate Bonds Initiative's unrestricted surplus for the year 2021 was £1.4m (2020: £282k). The reserve has increased to support the development of the infrastructure in-line with the growth of the Charities activities and projects planned for the year ahead. 

Net assets of the Charity at the year-end amounted to £1.7m (2020: £304k). 

Restricted income recognised in the year has been spent with a £108k (2020: 130k) carry forward balance. 

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, 

## CLIMATE BONDS INITIATIVE 

## REPORT OF THE TRUSTEES 

## Reserves policy 

The Board has agreed that the Charity, in addition to any restricted reserves and commitments to, and investment in, tangible fixed assets, should aim to have unrestricted free reserves of at least three months of current total unrestricted expenditure, so that the Charity's activities could continue in the event of any significant short-term funding shortfalls. 

Unrestricted reserves at the year-end showed a surplus of £1.6m (2020: £173k). Unrestricted reserves exceeded the minimum free reserves at the end of 2021 by approximately £1.1m (2020 shortfall: £400k). 

## Future Plans 

The Charity plans to continue the growth of its activities significantly in the coming years; the global consequences are too great not to do so. 

Climate Bonds has ambitious organisational goals and strategic plans to increase our impact. Our strategic objectives for 2023-5 are: 

1. Toinfluence the public sector to mobilise public and private capital with speed and scale to finance the transition to 1.5 degree and resilient economies 

2. To empower a network of investors that amplify and endorse Climate Bonds Initiative's efforts in influencing policymakers to incentivize capital to flow toward 1.5 degree aligned and resilient investments 

3. To support the growth of a large and credible finance market that is aligned to 1.5 degree and resilient definitions 


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## Post Balance Sheet events 

There are no post-balance sheet events to disclose. 

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## CLIMATE BONDS INITIATIVE 

## REPORT OF THE TRUSTEES 

## Structure, Governance and Management 

Climate Bonds Initiative is a company limited by guarantee and a registered charity. The Charity's memorandum and articles of association are its primary governing documents. The Trustees of Climate Bonds Initiative are also the directors of the charitable company for the purposes of company law. Climate Bonds Initiative has a wholly owned subsidiary, Climate Bonds Services Limited, which is included in the consolidated financial statements. 

Details of the Trustees who served during the year are included in the Reference and Administrative Details on page 2. 

## Trustees 

Trustees are elected by recommendation from existing charity trustees and by confirmation by the Chair of the Board. An appropriate vetting process is overseen by the Chair. 

Climate Bonds Initiative appoints and recruits new trustees through its wide network of supporters, bearing in mind the skills required. The overall performance of the Charity is the responsibility of the Board, but day-to-day decision-making is delegated to the Chief Executive Officer and Executive Director (formerly Deputy CEO), supported by the Senior Leadership Team. Key strategic direction and major issues of policies and procedures are set by the Board for implementation by the Chief Executive Officer and Executive Director. The induction and training of trustees is handled through a series of individual meetings with key personnel. 

The Board sets the pay of the CEO and Executive Director and provides guidance for setting pay and remuneration for other senior staff. 

## Key management personnel 

The key management personnel of the group consist of the Trustees, the Chief Executive Officer and the Executive Director (formerly the Deputy CEO): 

- e Chief Executive Officer: Sean Kidney 

- « Deputy Chief Executive Officer (interim): Claire Berson’ (from June 2021) 

- *« Deputy Chief Executive Officer: Justine Leigh-Bell (to May 2021) 

In addition, the following individuals served on the Senior Leadership Team during the year: 

- e Chief Operating Officer: Anne Murrell (to May 2021) 

- « Director of Client Services: Claire Berson (to May 2021) 

- e Director of Finance: Tim Morris? (to November 2021) 

- » Director of Market Development: Justine Leigh-Bell (June 2021 to December 2021) e Director of People & Culture: Helen Ferguson (from June 2021) 

- Director of Programmes: Karthik lyer (from February 2021) 

- « Associate Director of Thought Leadership: Anna Creed (from September 2021) 

## Related parties 

’ 

See note 21. 

> ' Title changed to Executive Director in March 2022 

> ? Replaced by Director of Finance: Duncan Perritt (from March 2022) 

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## CLIMATE BONDS INITIATIVE 

## REPORT OF THE TRUSTEES 

## Trustees’ Responsibilities in Relation to the Financial Statements 

The Trustees (who are also Directors of the company for the purposes of company law) are responsible for preparing the Trustees’ 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 of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these Financial Statements, the Trustees are required to: 

- e Select suitable accounting policies and then apply them consistently; e Observe the methods and principles in the Charities SORP (FRS102): 

- e Make judgements and estimates that are reasonable and prudent; 

- State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the Financial Statements; 

- « Prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

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 enable them to ensure that the Financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

## Disclosure of Information to the Auditors 

We, the Directors of the charitable company who held office at the date of approval of these Financial Statements as set out above, each confirm, so far as we are aware, that: 

- e there is no relevant audit information of which the charitable company's auditors are unaware; and e we have taken all steps that we ought to have taken as Directors in order to make ourselves aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information. 

## Auditor 

PKF Littlejohn LLP was appointed as auditor during 2020 and have indicated their willingness to continue in office. 

This report is prepared in accordance with the small companies’ regime under the Companies Act 2006. 

## Approval 

This report was approved by the Board on 18 August 2022 and signed on its behalf. 


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## Nicholas Silver, Trustee 

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## CLIMATE BONDS INITIATIVE 

## REPORT OF THE INDEPENDENT AUDITOR YEAR ENDED 31 DECEMBER 2021 

## INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF CLIMATE BONDS INITIATIVE 

## Opinion 

We have audited the financial statements of Climate Bonds Initiative (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2021 which comprise the Consolidated Statement of Financial Activities, the Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including 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: 

- give a true and fair view of the state of the group's and the parent charitable company’s affairs as at 31 December 2021, and of the group's incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- *« have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011. 

## Basis for opinion 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 the group's or parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

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

## Other information 

. 

The other information comprises the information included in the report of the trustees, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the report of the trustees. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whetherthe other information is materially inconsistentwith the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. lf, 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. 

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REPORT OF THE INDEPENDENT AUDITOR YEAR ENDED 31 DECEMBER 2021 

## CLIMATE BONDS INITIATIVE 

## Opinions on other matters prescribed by the Companies Act 2006 

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

- e the information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the directors’ report included within the trustees’ report has been prepared in accordance with applicable legal requirements. 

## Matters on which we are required to report by exception 

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

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

- e adequate and sufficient accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or 

- ¢ the parent charitable company's financial statements are not in agreement with the accounting records and returns; or 

- e certain disclosures of trustees’ remuneration specified by law are not made; or 

- « we have not received all the information and explanations we require for our audit; or 

- e the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report. 

## Responsibilities of trustees 

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the group and parent charitable company 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 group and parent charitable company financial statements, the trustees are responsible for assessing the group and 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. 

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## CLIMATE BONDS INITIATIVE 

## REPORT OF THE INDEPENDENT AUDITOR YEAR ENDED 31 DECEMBER 2021 

## 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 Charities Act 2011 and report in accordance with those Acts and relevant regulations made or having effect thereunder. 

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

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

- ® We obtained an understanding of the group and parent charitable company and the sectors in which they operate to identify laws and regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard through discussions with management, industry research, application of cumulative audit knowledge and experience of the sector. 

- « We determined the principal laws and regulations relevant to the group and parent charitable company in this regard to be those arising from Companies Act 2006. Charities Act 2011, Charities (Accounts and Reports) Regulations 2008, employee and tax legislation. 

- e We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the group and parent charitable company with those laws and regulations. These procedures included, but were not limited to: 

   - enquiries of management; and 

   - o review of minutes 

- e We also identified the risks of material misstatement of the financial statements due to fraud. We considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management override of controls, that provisions for doubtful debts and other liabilities as well as accruals and deferrals could be subject to management bias. We have reviewed the calculations for provisions and the assumptions involved. We also reviewed the application of cut-off through accrued and deferred income. No issues were identified. 

- « Asin all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures which included but were not limited to: the testing of journals; reviewing accounting estimates for evidence of bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. No issues were identified in our review. 

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. 

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## CLIMATE BONDS INITIATIVE 

## REPORT OF THE INDEPENDENT AUDITOR YEAR ENDED 31 DECEMBER 2021 

## 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 to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees 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 as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. 

Alastair Duke (Senior Statutory Auditor) For and on behalf of PKF Littlejohn LLP Statutory Auditor Date Ey , 7 79 bys bayle COWL 


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## CLIMATE BONDS INITIATIVE 

## CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 DECEMBER 2021 

|||Unrestricted|Restricted|Total|Total|
|---|---|---|---|---|---|
||Notes|Funds|Funds|2021|2020|
|||£|£|£|£|
|Income from:||||||
|Charitable activities<br>Bank interest|2<br>3|3,064,491<br>rs|3,201,761<br>-|6,266,252<br>7|3,506,446<br>101|
|Other trading income|4|277,338|-|277,338|137,727|
|Total Income||3,341,836|3,201,761|6,543,597|3,644,274|
|Expenditure on:||||||
|Charitable activities|5|1,733,505|3,224,224|4,957,729|3,104,622|
|Trading activities||152,397|-|152,397|133,871|
|Total expenditure||1,885,902|3,224,224|5,110,126|3,238,493|
|Netincome|9|1,455,934|(22,463)|1,433,471|405,781|
|Transfers between funds||=|=|=|=|
|NetMovement in Funds||1,455,934|(22,463)|1,433,471|405,781|
|Reconciliation ofFunds:||||||
|Total funds brought forward||173,883|130,057|303,940|(101,841)|
|Totalfundscarriedforward||1,629,817|107,594|1,737,411|303,940|



All income and expenditure derive from continuing activities. 

The statement of financial activities includes all gains and losses recognised during the year. 

The notes on page 16 to 31 form part of these Financial Statements. 

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CLIMATE BONDS INITIATIVE Company number: 07455750 

AT_ 31BALANCEDECEMBERSHEETS2021 

|||Consolidated|Consolidated|Charity|Charity|
|---|---|---|---|---|---|
||Notes|2021|2020|2021|2020|
|Fixed Assets||£|£|£|£|
|Investments|12|-|-|50,100|100|
|Intangible assets|13|-|28,571|-|28,571|
|Tangible assets|14|25,145|19,695|25,145|19,695|
|||25,145|48,266|75,245|48,366|
|Current Assets||||||
|Debtors|15|1,267,731|763,676|1,418,334|791,353|
|Cash||3,245,592|1,183,883|3,032,154|1,156,206|
|||4,513,323|1,947,559|4,450,485|1,947,559|
|Creditors: amounts falling due within one||||||
|year|16|(2,801,057)|(1,691,885)|(2,775,840)|(1,691,985)|
|Net CurrentAssets/(Liabilities)||1,712,266|255,674|1,674,645|255,574|
|Net Assets/(Liabilities)||1,737,411|303,940|1,749,890|303,940|
|Charity Funds|17|||||
|Unrestricted funds||1,629,817|173,883|1,642,296|173,883|
|Restricted funds||107,594|130,057|107,594|130,057|
|TotalFunds||1,737,411|303,940|1,749,890|303,940|



The Charity has taken exemption from presenting its unconsolidated profit and loss account under section 408 of Companies Act 2006. The unconsolidated surplus for the year ended 31 December 2021 is £1,445,950 (2020: £405,781). 

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements were approved and authorised for issue by the Board of Trustees on 18 August 2022 and were signed on its behalf by: 


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| 

Trustee 

The notes on pages 16 to 31 form part of these Financial Statements. 

‘ 

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## CLIMATE BONDS INITIATIVE 

|CLIMATE BONDS INITIATIVE||CONSOLIDATED STATEMENT OF CASH FLOWS|CONSOLIDATED STATEMENT OF CASH FLOWS|
|---|---|---|---|
|||AT 31 DECEMBER 2021||
||Notes|2021|2020|
|||£|£|
|Netcash flow provided by operating<br>activities|20|2,076,863|817,560|
|Cash flow from investing activities||||
|Payments to acquire tangible fixed assets||(15,161)|(46)|
|Bank interest||7|101|
|Netcash flow used in investing activities||(15,154)|55|
|Change in cash and cash equivalents in||2,061,709|817,615|
|the year||||
|Cash and cash equivalents at1January||1,183,883|366,268|
|Cashandcashequivalentsat31December||3,245,592|1,183,883|



The notes on pages 16 to 31 form part of these Financial Statements. 

15 



NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2021 

; 

## CLIMATE BONDS INITIATIVE 

1. Summary of significant accounting policies 

The significant accounting policies applied in the preparation of these financial statements are set out below. The accounting policies have been applied consistently throughout the year and in the preceding year, unless otherwise stated. 

## General Information 

Climate Bonds Initiative is a company limited by guarantee and is registered with the Charity Commission (charity number 1154413) and the Registrar of Companies (company number 07455730) in England and Wales. In the event of the Charity being wound up, the liability in respect of the guarantee is limited £1 per member of the Charity. The address of the registered office is shown under Charity Reference and Administrative Details. 

## Basis of Preparation of Accounts 

The charity constitutes a public benefit entity as defined by FRS 102. 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), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019. 

The financial statements consolidate Climate Bonds Initiative and its wholly owned subsidiaries, Climate Bonds Services Limited and Climate Bonds Initiative Low Carbon World (Shanghai) Business Consulting Co., Ltd . A further subsidiary company, Climate Bonds Initiative (Europe) ASBL, registered in Belgium is also consolidated, though immaterial this year. 

The financial statements are prepared in sterling which is the functional currency of the charity. 

## Going Concern 

The financial statements have been prepared on a going concern basis as the trustees consider that no material uncertainties exist concerning the charity's ability to operate for the foreseeable future. 

The trustees have considered the charity's ability to meet its liabilities as they arise over the foreseeable future to June 2022, being 12 months from the date of approval of these financial statements. Accordingly, financial forecasts and cash flow projections have been prepared for this period. 

The trustees recognise that in a period of growth there are some uncertainties that exist in the assumptions underlying these forecasts, principally concerning income generation and have identified actions to be taken as appropriate risk mitigation should these assumptions and forecasts not be adequately achieved. 

## Income Recognition 

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income, after any performance conditions have been met, when the amount can be measured reliably and when it is probable that the income will be received. 

For donations to be recognised the Charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Charity and it is probable that they will be fulfilled. 

' 

The Charity received government and other grants in respect of furthering its charitable objectives. Income from government and other grants are recognised at fair value when the Charity has entitlement after any performance conditions have been met, it is probable that the income will be received, and the amount can be measured reliably. If entitlement is not met then these amounts are deferred. 

Verification fees, certification fees, reports income and events income are recognised in full when the charity is entitled to the income. 

16 



NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2021 

## CLIMATE BONDS INITIATIVE 

1. Accounting Policies (continued) Annual partner subscriptions are recognised 50% immediately and the balance over a 12-month period to which they relate from the month of receipt, with the balance at the year-end included as deferred income. 

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

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

## Expenditure Recognition 

All expenditure is accounted for on an accruals basis and has been classified under the headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably. Redundancy and termination payments are recognised immediately upon becoming a constructive obligation. Expenditure is categorised under the following headings: 

- « Costs of raising funds includes are those costs incurred in attracting donations, and those incurred in trading activities that raise funds; and 

- « Expenditure on charitable activities includes expenditure associated with the main objectives of the charity and include both direct costs and support costs relating to these activities. 

## Support costs allocation 

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office premises costs, finance, HR, IS/IT, legal and governance costs and management and administration costs. They are incurred directly and necessarily in support of expenditure on the objects of the charity. Where support costs cannot be directly attributed to particular headings they have been allocated to expenditure on charitable activities on a basis consistent with use of the resources. 

Governance costs are those incurred in connection with the running of the Charity and compliance with constitutional and statutory requirements. 

The analysis of these costs is included in note 8, 

## Intangible fixed assets 

Intangible fixed assets are assets that do not have physical substance but are identifiable and are controlled by the charity through custody or legal rights. Intangible fixed assets are recorded at historical cost and amortised on a straight-line basis over 4 years. 

## Tangible Fixed Assets and Depreciation 

Tangible fixed assets are stated at cost or net realisable value after depreciation. The cost of minor additions or those costing less than £500 are not capitalised. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on a straight-line basis: 

Plant and machinery 20% Office equipment 20% 

17 



AT 31 DECEMBER 2021 

) 

## CLIMATE BONDS INITIATIVE 

## NOTES TO THE FINANCIAL STATEMENTS 

1. Accounting Policies (continued) 

## Debtors and creditors receivable / payable within one year 

Debtors are recognised when the Charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received. 

Creditors are recognised when the Charity has a present or constructive obligation resulting from a past event and the settlement is expected to result in an outflow of economic benefits. 

## Foreign Currency 

The consolidated financial statements are presented in UK pounds sterling (£'s), the functional currency of the charity. For project planning purposes, the charity uses a standard exchange rate for the year. All transactions denominated in foreign currencies are translated at the spot rate, the actual rate achieved at the time of the transaction. 

All balance sheet balances are translated at the prevailing year-end rate. Any gains or losses resulting from exchange rates are recognised through the SoFA. 

## Funds and Fund Accounting 

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objective of the charity and which have not been designated for other purposes. 

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each resiricted fund is set out in the notes to the financial statements. 

## Employee Benefits 

The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable. 

## Tax 

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010. It therefore meets the definition of a charitable company for UK corporation tax purposes. 

## Financial instruments 

The Charity only holds basic financial instruments. The financial assets and financial liabilities of the Charity are as follows: 

- « Debtors — trade and other debtors (including accrued income) are basic financial instruments and are debt instruments measured at transaction cost. Prepayments are not financial instruments. 

- « Cash at bank —is classified as a basic financial instrument and is measured at face value. e Liabilities — trade creditors, accruals and other creditors are classified as financial instruments, and are measured at transaction cost. Taxation and social security are not included in the financial instruments disclosure. Deferred income is not deemed to bea financial liability as the cash settlement has already taken place and there is simply an obligation to deliver charitable services rather than cash or another financial instrument. 

18 



NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2021 

## CLIMATE BONDS INITIATIVE 

## Critical accounting estimates and areas of judgement 

The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements: 

- « Allocation of support costs 

- « Depreciation rates for tangible fixed assets 

- « 75% capitalisation of graphic design (or[front-end][development)][of][ website,][and][subsequent][ amortisation.] e Intercompany recharge 

19 



## CLIMATE BONDS INITIATIVE 

NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2021 


**----- Start of picture text -----**<br>
2. Income from Charitable Activities<br>Unrestricted Restricted Total Total<br>Funds Funds 2021 2020<br>£ £ £ £<br>Projects, advocacy and guidance 3,064,491 3,201,761 6,266,252 3,506,446<br>3. Bank interest<br>Unrestricted Restricted Total Total<br>Funds Funds 2021 2020<br>£ £ £ £<br>Bank interest 7 - 7 101<br>4. Other trading income<br>Unrestricted Restricted Total Total<br>Funds Funds 2021 2020<br>£ £ £ £<br>Trading 277,338 - 277,338 137,727<br>5. Expenditure on Charitable Activities<br>Direct Support Total Total<br>Costs Costs 2021 2020<br>£ £ £ £<br>Projects, advocacy and 4,209,795 747,934 4,957,729 3,104,622<br>guidance<br>Totals 2020 2,459 650 644,972 3,104,622<br>6. Direct costs<br>Unrestricted Restricted Total Total<br>Funds Funds 2021 2020<br>£ £ £ £<br>Consultancy costs 594,776 1,932,761 2,527,537 1,106,598<br>Other direct costs 4,838 13,937 18,775 42,280<br>Travel and subsistence 12,489 9,608 22,097 46,154<br>Staff costs 537,738 1,103,648 1,641,386 1,264,618<br>Total 1,149,841 3,059,954 4,209,795 2,459,650<br>**----- End of picture text -----**<br>


## 6. Direct costs 

20 



NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2021 

## CLIMATE BONDS INITIATIVE 

## 7. Support costs 

||||Unrestricted<br>Funds|Restricted<br>Funds|Total<br>2021|Total<br>2020|
|---|---|---|---|---|---|---|
||||5|£|£|£|
||Conference event costs||3,814|-|3,814|7,024|
||Establishment<br>and|general|||||
||administration||440,323|164,270|604,593|511,043|
||Support staffcosts||35,868||35,868|40,115|
||Governance costs||65,377|-|65,377|37,385|
||Depreciation<br>Amaortisation||9,711<br>28,571|-<br>-|9,711<br>28,571|11,226<br>38,179|
||Total||583,664|164,270|747,934|644,972|
|8.|Governance costs||||||
||||||Total|Total|
||||||2021|2020|
||||||£|£|
||Accountancy fees||||28,173|25,517|
||Legal and professional||||14,104|3|
||Auditor's remuneration||||||
||-<br>audit||||13,000|11,868|
||-<br>other services||||10,100|-|
||||||65,377|37,385|
|9.|Netincome forthe year||||||
||The net income is stated|after charging:|||||
||||||Total|Total|
||||||2021|2020|
||||||£|£|
||Depreciation oftangible fixed assets||||9,711|11,226|
||Amortisation of intangible fixed assets||||28,571|38,179|
||Net losses on foreign exchange||||3,896|74,378|
||Operatingleasepayments||||-|52,692|



21 



## CLIMATE BONDS INITIATIVE 

## NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2021 

## 10. Staff costs and employee benefits 

The total staff costs and employee benefits were as follows: 

||Total|Total|
|---|---|---|
||2021|2020|
||£|£|
|Wages and salaries|1,339,377|1,208,028|
|Social security|161,010|129,191|
|Defined contribution pension costs|33,566|29,565|
|Redundancy payments|3,264|-|
||1,537,217|1,366,784|
|The number ofemployeeswho received total employee benefits (excluding employerpension||costs) ofmore|
|than £60,000 is as follows:|||
||Number ofemployees|employees|
||2021|2020|
|£60,001 to £70,000|5|1|
|£70,001 to £80,000|.|2|
|£80,001to£90,000|1|-|



The number of employees who received total employee benefits (excluding employer pension costs) of more than £60,000 is as follows: 

During the year, the charity paid £3,517 (2020: £4,378) under a defined contribution pension scheme on behalf of staff. 

The average monthly number of employees during the year was as follows: 

||Number ofemployees|employees|
|---|---|---|
||2021|2020|
|Staff|35|||



## 11, Trustees’ and key management personnel remuneration and expenses 

No trustees received any remuneration or reimbursement of travel expenses from the charity during the year (2020 — none). 

The trustees consider the board of trustees, the Chief Executive Officer and the Deputy Chief Executive Officer as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day-to-day basis. 

The total amount of employee benefits received by key management personnel during the year was £186,756 (2020: £168,660). 

## 12. Investments (Charity) 

. 

|Cost|2021<br>£|2020<br>£|
|---|---|---|
|Investment in Climate Bond Services Limited<br>Investment in Climate Bonds Initiative Low Carbon World|100|100|
|(Shanghai) Business Consulting Co., Ltd|50,000|-|
||50,100|100|



Climate Bonds Initiative has 100% control of Climate Bond Services Limited (Company registration number 11715956), a company registered by share capital and whose registered office is First Floor, Queen Street Place, London, EC4R 1BE. The subsidiary year-end is also 31 December 2021. The company was incorporated on 6 December 2018. 

22 



CLIMATE BONDS INITIATIVE 

NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2021 

## 12. Investments (Charity) (continued) 

The major activities of the company comprised the hosting of the Climate Bonds Initiative annual conference, for which commercial sponsorship was obtained. The income for Climate Bonds Services does not include individual attendee ticketed income, which is included in Climate Bonds Initiative. The summary financial performance ofthe subsidiary for the year ended 31 December 2021 is as follows. 

||2021|2020|
|---|---|---|
||£|£|
|Turnover<br>Cost of sales<br>Administrative expenses|277,250<br>(27,157)<br>(239,543)|137,727<br>(18,024<br>(115,847|
|Operating profit<br>Gift aid to parent|10,550<br>(10,550)|3,856<br>(3,856)|
|Result for the period|-|-|
|Current assets|188,198|100|
|Current liabilities|(188,098)|-|
|Netassets|100|100|



Climate Bonds Initiative has 100% control of Climate Bonds Initiative (Europe) ASBL (Company registration number 0730.588.756), a company registered by share capital and whose registered office is Avenue Léon Jourez 34, 420 Braine |'Alleud, Belgium. The subsidiary year-end is also 31 December 2021. The company was incorporated on 6 December 2018, The company had no material activity in either year but is intended to become a hub for Climate Bonds Initiative's activities in mainland Europe, especially in a post-Brexit era. The summary financial performance of the subsidiary for the period ended 31 December 2021 is as follows. 

||2021|2020|
|---|---|---|
||£|£|
|Current assets|27,677|27,677|
|Current liabilities|(27,677)|(27,677)|
|Netassets|-|-|



|During the year Climate Bonds|During the year Climate Bonds|Initiative|established a subsidiary in China, Climate Bonds Initiative Low|established a subsidiary in China, Climate Bonds Initiative Low|established a subsidiary in China, Climate Bonds Initiative Low|established a subsidiary in China, Climate Bonds Initiative Low|established a subsidiary in China, Climate Bonds Initiative Low|established a subsidiary in China, Climate Bonds Initiative Low|
|---|---|---|---|---|---|---|---|---|
|Carbon<br>World|(Shanghai)|Business|Consulting|Co.,|Ltd<br>[Unified|Social|Credit|Code:|
|91310115MA1K4MYUO0O]. Climate Bonds|||Initiative retains 100%||control of the company,||whose registered||
|address is: No. 14,|Lane 1502 Luoshan Road China (Shanghai)||||Free Trade Pilot|Zone. The results||forthe|
|year to 31 December 2021 were:|||||||||
||||||2021||2020||
|||'|||£||£||
|Turnover|||||88||i||
|Administrative expenses|||||(12,536)||-||
|Result forthe year|||||(12,448)||m||
|Current assets<br>Current liabilities|||||56,996<br>(19,444)||-<br>-||
|Net assets|||||37,552||-||
|Share capital<br>Retained earnings|||||“50,000<br>(12,448)|se<br>=|||
|Reserves|||||37,552||-||



23 



## CLIMATE BONDS INITIATIVE 

## NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2021 

## 13. Intangible Fixed Assets (Group and Charity) 


**----- Start of picture text -----**<br>
|||||||
|---|---|---|---|---|---|
|Cost|Website|Total|
|£|£|
|At|beginning|of year|152,717|FOZ|£17|
|Additions|-|-|
|Disposals|-|-|
|At|end|of year|152,717|152,717|
|Amortisation|
|At|beginning|of year|124,146|124,146|
|Charge|for the|year|28,571|28,571|
|Released|on|disposals|-|-|
|At|end|of year|152,717|152,717|
|Net|Book|Value|
|At|31|December|2021|-|-|
|At|31|December|2020|28,571|28,571|
|Tangible|Fixed|Assets|(Group|and|Charity)|
|Plant &|Office|&|IT|
|Cost|Rear|equipment£|Total£|
|At|beginning|of year|424|58,574|58,998|
|Additions|-|15,161|15,161|
|Disposals|-|-|-|
|At|end|of year|424|73,735|74,159|
|Depreciation|
|At|beginning|of year|424|38,879|39,303|
|Charge|for the|year|-|9,711|9,711|
|Released|on|disposals|-|-|-|
|At|end|of year|424|48,590|49,014|
|Net Book|Value|‘|
|At|end|of year|-|25,145|25,145|
|At|beginning|of year|-|19,695|19,695|

**----- End of picture text -----**<br>


## 14. Tangible Fixed Assets (Group and Charity) 

24 



## CLIMATE BONDS INITIATIVE 

## NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2021 

|15.|Debtors|||||
|---|---|---|---|---|---|
||||Group||Charity|
|||2021|2020|2021|2020|
|||£|£|£|£|
||Trade debtors|854,345|636,001|836,345|636,001|
||Other debtors|7,132|4,395|6,849|4,395|
||Prepayments and accrued income<br>Intercompany debtor|406,254<br>-|123,280<br>-|406,255<br>168,885|123,280<br>27,677|
|||1,267,731|763,676|1,418,334|791,353|
|16.|Creditors: Amounts Falling Due Within OneYear|||||
||||Group|Charity||
|||2021|2020|2021|2020|
|||£|£|£|£|
||Trade creditors|242,912|154,299|224,142|154,299|
||Social security and other taxes|57,882|144,681|57,882|144,681|
||Other creditors|258,803|138,869|258,703|138,869|
||Accruals and deferred income*|2,241,460|1,254,036|2,235,013|1,254,036|
||intercompany creditor|-|-|100|100|
|||2,801,057|1,691,885|2,775,840|1,691,985|
||*Deferred income:|||=||
||Broughtforward at 1 January 2021|||1,136,550||
||Incoming resources deferred during the year|||1,908,853||
||Amounts released from previous years|||(1,136,550)||
||Carriedforwardat31December2021|||1,908,853||



25 



NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2021 

## CLIMATE BONDS INITIATIVE 

## 17. Fund reconciliation (consolidated) 

|CurrentYear||Balance as||||Balance as|
|---|---|---|---|---|---|---|
|||at 1.1.21|Income|Expenditure|Transfers|at 31.12.21|
|||£|£|£|£|£|
|European Commission (EuroPace)<br>UNDP<br>G & B Moore Foundation<br>Oak Foundation||-<br>-<br>-<br>3,268|32,120<br>108,526<br>288,941<br>218,226|(32,121)<br>(92,538)<br>(287,908)<br>(218,021)|-<br>-<br>-<br>-|(1)<br>15,988<br>1,033<br>3,473|
|World Resources Institute (WRI)<br>BEIS China||-<br>3,905|93,149<br>-|(75,769)<br>-|-<br>-|17,380<br>3,905|
|BEIS Columbia<br>Agora Foundation<br>ECF EU Taxonomy 2020<br>ECF EU Taxonomy 2021||9,810<br>(310)<br>27,692<br>-|-<br>50,424<br>13,343<br>114,697|(350)<br>(49,929)<br>(39,438)<br>(90,567)|-<br>-<br>-|9,460<br>185<br>1,597<br>24,130|
|ECF Tara||28,907|89,958|(127,991)|-|(9,126)|
|FSD Africa||32|39,619|(37,161)|-|2,490|
|GCA Standards<br>GIZASEAN||89<br>6,349|9,340<br>192,907|(9,573)<br>(192,907)|-<br>-|(144)<br>6,349|
|Growald Foundation<br>IPSF Giz||49,690<br>625|-<br>162,615|(57,625)<br>(137,205)|-<br>-|(7,935)<br>26,035|
|The Children’s InvestmentFund<br>The<br>Foreign<br>Commonwealth|and|-|779,966|(779,966)|-|-|
|Development Office<br>UKPACT— Columbia||-<br>-|83,137<br>374,827|(83,136)<br>(374,827)|-<br>-|1<br>-|
|UKPACT China<br>UKPACT- India<br>IPSF GIZ 2021/22||-<br>-<br>-|319,153<br>95,410<br>111,612|(319,173)<br>(95,410)<br>(111,612)|-<br>-<br>-|(20)<br>-<br>-|
|Laudes Foundation 2021-23<br>New Venture Fund||-<br>-|13,367<br>10,424|(13,537)<br>2,540|-<br>-|(170)<br>12,964|
|Total restricted funds||130,057|3,201,761|(3,224,224)|-|107,594|
|General Funds||173,883|3,341,836|(1,885,902)|-|1,629,817|
|Total unrestricted funds||173,883|3,341,836|(1,885,902)|-|1,629,817|
|Totalfunds||303,940|6,543,597|(5,110,126)|-|1,737,411|



26 



## CLIMATE BONDS INITIATIVE 

## NOTES TO THE FINANCIAL STATEMENTS 

AT 31 DECEMBER 2021 

## 17. Fund reconciliation (consolidated) (continued) 

|PriorYear<br>European<br>Commission||Balance as<br>at 1.1.20<br>£<br>=|Income <br>£<br>9473|Expenditure<br>costs<br>£<br>(14,406)|Transfers<br>£<br>4,933|Balanceas<br>at31.12.20<br>£<br>-|
|---|---|---|---|---|---|---|
|(EuroPace)|||||||
|UNDP—CAP<br>G & B Moore<br>Foundation||e<br>4,488|20,445<br>163,028|(21,590)<br>(171,454)|1,145<br>3,938|-<br>-|
|Oak<br>Foundation||-|216,252|(212,984)|-|3,268|
|Rockefeller<br>Foundation|—|z|13,494|(18,970)|5,476|-|
|Rev303|||||||
|Rockefeller<br>Foundation|—|-|-|(446)|446|=|
|INF311|||||||
|World<br>Resources||-|98,610|(107,875)|9,265|-|
|Institute (WRI)|||||||
|FCO India<br>BEIS China<br>BEIS<br>Columbia||-<br>3,657<br>(875)|6,858<br>94,084<br>278,014|(6,858)<br>(93,836)<br>(267,329)|-<br>-<br>“|=<br>3,905<br>9,810|
|BEIS Mexico<br>ECFASEAN<br>Agora<br>Foundation||(4,911)<br>4,216<br>-|76,941<br>14,883<br>23,161|(74,369)<br>(21,241)<br>(23,471)|2,339<br>2,142<br>-|-<br>-<br>(310)|
|ECF<br>Eu<br>Taxonomy||-|123,944|(96,252)|-|27,692|
|ECFTara<br>FSDAfrica<br>GCA<br>Standards||-<br>-<br>-|120,317<br>6,887<br>49,202|(91,410)<br>(6,855)<br>(49,113)|-<br>-<br>=|28,907<br>32<br>89|
|GIZASEAN<br>Growald<br>Foundation||+<br>=|9,578<br>77,286|(3,229)<br>(27,596)|-<br>-|6,349<br>49,690|
|IPSF GIZ||-|79,604|(78,979)|-|625|
|Total<br>restricted||6,575|1,482,061|(1,388,263)|29,684|130,057|
|funds|||||||
|General<br>Funds||(108,416)|2,162,213|(1,850,230)|(29,684)|173,883|
|Total<br>unrestricted||(108,416)|2,162,213|(1850,230)|(29,684)|173,883|
|funds|||||||
|Totalfunds||(101,841)|3,644,274|(3,238,493)|-|303,940|



27 



CLIMATE BONDS INITIATIVE 

NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2021 

: 

## Purposes of Restricted Funds: 

## European Commission (EuroPace) 

European Commission under its Horizon 2020 Programme funded the project “EuroPace — Developing, piloting and standardising on-tax financing for residential energy efficiency retrofits in European cities and regions’ from March 2018 to February 2021 in a total amount up to €175,775. 

## UNDP 

Support for Climate Bonds Initiative to participate in Working Group "Developing Taxonomy for Indian Government. 

## G & B Moore Foundation 

Driving the Development of Green Agri Bonds in Brazil and China. 

Oak Foundation Oak Foundation funded the project “Growing the Global Green Bonds Market” from September 2016 to December 2021. 

World Resources Institute (WRI) 

Support to WRI project entitled "Transformational Project Pipelines for NDC Implementation" Signed in 2019 and extended to Sept 2022. 

BEIS: 

## China 

The Secretary of State for Business, Energy and Industrial Strategy has funded the project entitled "Sustaining the Growth of China’s Green Bond Market and Facilitating Inter-Country Green Capital Flows" (February 2019 — November 2020) with £300,000, 

## Colombia 

The Secretary of State for Business, Energy and Industrial Strategy has funded the project entitled "Scaling up Green Finance and establishing building blocks for scalable and low carbon investment in Colombia" (July 2019 — October 2020) with £485,699.54. 

## Mexico 

The Secretary of State for Business, Energy and Industrial Strategy has funded the project entitled "Building a foundation for a sustainable and scalable low carbon future in Mexico - from Green Bonds to a Greener Ecosystem " (July 2019 — September 2020) with £181,622. 

## Agora Foundation 

SEFEP GmbH Agora Energiewende funded Climate Bonds Initiative with a grant for working in the context of "CRUX Policy Centre Power’ with the objective of enabling the energy transition in South Africa by building capacity for green bonds (June 2020 - January 2021) with €70,000.. SEFEP (Smart Energy for Europe Platform) received the grant funding from the Aspen Global Change Institute (AGCI). 

## ECF EU Taxonomy 2020 

The European Climate Foundation funded this project to step up engagement and capacity building activities with key stakeholders, such as Member States, around EU green taxonomy developments and future plans. Also, it continues Climate Bonds Initiative’s technical engagement with EU on next iteration of taxonomy. (April 2020 - March 2021) with €155,619. 

## ECF EU Taxonomy 2021 

EU Sustainable Finance Taxonomy - Ensuring alignment to 1.5 degree pathways and supporting the growth of a Taxonomy-aligned green bond markets in key Member States in Europe. 

## ECF Tara 

EU Sustainable Finance Taxonomy - Ensuring alignment to 1.5 degree pathways and supporting the growth of a Taxonomy-aligned green bond markets in key Member States in Europe. 

FSD Africa The Financial Sector Deepening Africa (FSDA) has funded this project to Climate Bonds Initiative to act as the lead consultant in the Nigerian Green Bonds Programme. Climate Bonds Initiative has provided support for Green Bond Issuance, which involves issuance of guidelines and listing requirements for green bonds, 

28 



AT 31 DECEMBER 2021 

## CLIMATE BONDS INITIATIVE 

## NOTES TO THE FINANCIAL STATEMENTS 

developing a pool of Nigeria-based Licenced verifiers, developing a pipeline of green investments, developing an international collaboration, and developing a debt capital market reform agenda to support green bonds under the Debt Capital Markets Development. (April 2018 - June 2021) with £110,320, 

## GCA Standards 

The Global Centre on Adaptation funded this project with an overall goal to help advance common understanding of resilience investments and opportunities in the bond market, through bespoke research, guidance preparation, and stakeholder engagement (Sep. 2020 - March 2021) with €64,763. 

## GIZ ASEAN 

GlZ (Deutsche Gesellschaft fiir Internationale Zusammenarbeit GmbH) funded this project to assess the “EU Sustainable Finance Action Plan to Finance a Green Corona Recovery” in the ASEAN Region (Dec 2020 - Aug 2021) with €447,147. 

## Growald Foundation 

The Growald Foundation has funded this project to deliver: (i) Green infrastructure investment opportunities report and investor forum for GBA, (ii) Market education and trainings to relevant stakeholders in GBA* on green bonds, (iii) Guidelines on green transition finance for China with a focus on Guangdong/GBA (July 2020 - October 2021) with $100,000. (* GBA is the Greater Bay Area of China comprising Hong Kong and neighbouring Chinese cities) 

## IPSF GIZ 

GIZ (Deutsche Gesellschaft fur Internationale Zusammenarbeit GmbH) has funded this project to support the International Platform on Sustainable Finance (IPSF), an initiative of the EU's DG FISMA (June 2020 - April 2021) with €175,716. 

The Children’s Investment Fund Accelerated industrial decarbonisation in Europe through dedicated transition financing to industrial companies 

## The Foreign Commonwealth and Development Office 

GreeningUK PACT—the ColumbiaColombian Financial System: Implementing local green definitions to enable long-term investment into priority sectors. 

UK PACT — China Accelerating high-quality growth in China’s Green Bond market and supporting post-COVID Green Economic Recovery. 

## UK PACT - India 

Strengthening climate risk assessment and enabling central bank supervision in the Indian financial sector: a partnership with frontrunning banks and DFls. 

## IPSF GlZ 2021/22 

IPSF Technical support Phase 2 (International Platform for Sustainable Finance). 

## Laudes Foundation 2021/23 

EU Building Programme on Energy Efficiency 

## New Venture Fund 

Preparation of Concept Note for Transition Proposal on Land use. 

Rockefeller Foundation — Rev303 Rockefeller Foundation funded the standards project “Climate Bonds Standards and Definitions to Support Market Confidence” from August 2017 to May 2020 in a total amount up to $400,000. 

## Rockefeller Foundation — INF311 

Rockefeller Foundation funded the policy project “Green Aggregation and Securitization in Emerging Markets and Developing Countries" from November 2015 to June 2017 (extended to June 2019) in a total amount up to $510,000. 

## FCO India 

FCO (UK Foreign and Commonwealth Office) funded the project “Using Green Bonds to Raise International Capital for India's Transition to a Low-Carbon and Climate Resilient Economy Phase —(II)" from January 2018 to July 2018 in a total amount up to £57,717. 

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CLIMATE BONDS INITIATIVE 

NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2021 

. 

## ECF ASEAN 

The International Forum for Energy (IFE), an initiative of the European Climate Foundation (ECF), has funded this project to grow green infrastructure investment opportunities and the green bond market in ASEAN in order to facilitate capital flows into green infrastructure in ASEAN countries (April 2019 - April 2020) with $150,000.00. 

## 19. Analysis of net assets between funds 

|CurrentYear|||Creditors||
|---|---|---|---|---|
||Fixed|Current|due within||
||Assets|assets|oneyear|Total|
||£|£|£|£|
|Restricted Funds|-|107,594|-|107,594|
|Unrestricted funds|25,145|4,405,729|(2,801,057)|1,629,817|
|Total funds|25,145|4,513,323|(2,801,057)|1,737,411|
|Prior Year|||Creditors||
||Fixed|Current|due within||
||Assets|assets|oneyear|Total|
||£|£|£|£|
|Restricted Funds|-|130,057|-|130,057|
|Unrestricted funds|48,266|1,817,502|(1,691,885)|173,883|
|Totalfunds|48,266|1,947,559|(1,691,885)|303,840|



## 20, Reconciliation of net income to net cash flow from operating activities 

|||2021|2020|
|---|---|---|---|
|||£|£|
|Net movement in funds forthe|year|1,433,471|405,781|
|Bank interest||(7)|(101)|
|Depreciation and amortisation|‘|38,282|49,405|
|(Increase) in debtors<br>Increase in creditors||(504,055)<br>1,109,172|(128,618)<br>491,093|
|Netcashprovidedbyoperatingactivities||2,076,863|817,560|



30 



CLIMATE BONDS INITIATIVE 

NOTES TO THE FINANCIAL STATEMENTS 

AT 31 DECEMBER 2021 

## 21. Related Party Transactions 

During the year, the daughter of the Chief Executive, Sean Kidney, was paid £90 (2020: £490) for services provided to the charity on an arm's length basis. 

## 22. Prior year Statement of Financial Activities 


**----- Start of picture text -----**<br>
|||||||
|---|---|---|---|---|---|
|Unrestricted|Restricted|Total|
|Funds|Funds|2020|
|Income|from:|£|£|£|
|Donations|-|-|-|
|Charitable|activities|2,024,385|1,482,061|3,506,446|
|Bank|interest|101|-|101|
|Other trading|income|137,727|-|137,727|
|Total|Income|2,162,213|1,482,061|3,644,274|
|Expenditure|on:|
|Charitable|activities|1,716,359|1,388,263|3,104,622|
|Trading|activities|133,871|-|133,871|
|Total|expenditure|1,850,230|1,388,263|3,238|493|
|Net|income|311,983|93,798|405,781|
|Transfers|between|funds|(29,684)|29,684|-|
|Net Movement|in|Funds|282,299|123,482|405,781|
|Reconciliation|of Funds:|
|Total funds|brought forward|(108,416)|6,575|(101,841)|
|Total funds|carried|forward|173,883|130,057|303,940|

**----- End of picture text -----**<br>


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