CLIMATE BONDS INITIATIVE TRUSTEES, REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
CLIMATE BONDS INITIATIVE CONTENTS Page Charlty R•f•rence and Adrninistrative Detalls Report of thè Trustees Report of thg Independent Auditor 10-13 Consolldatèd Statement of Flnanc5al Act5vltles Ilneludlng th• Income and Expenditure Account) 14 Balance Sheets 15 Consolidated Statement of Cash Flaws 16 Notes to the Flnanclal Ststem•nts 17-32
CLIMATE BONDS INITIATIVE CHARITY REFERENCE AND ADMINISTRATIVE DETAILS Trustèès Ms Doris Honold (Chairl Mr Nicholas Silver (resigned 1 January 2024J Mr Simon Coopèr (r68igned 23 May 2024) Ms Karen Ke8rney Mr Jonathan Stone Mr Kevin Steele Dr Rathin Roy Ms Elizabeth Grayer Ms Yulanda Chung (appointed 23 May 2024J CEO Mr Sean Kidney Company Number 07455730 Charity Number 1154413 Reglsterèd Offieè First Floor Queen Street Place London EC4R 1BE Bankers HSBC UK Bank plc 1 Centenary Square Bimingham B1 1HQ Audltor PKF LitU8john LLP 15 Westferry Circus Canary Wharf London E144HD
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES The Trustees eonflm) that the Annual Report and FlnarTrci81 St8tem8nts of th8 wmp8ny comply wlh the current stslutory requirements, the requirernents of the companys governing document and the provisions ol the Charities Act 2011. Accounting and Reporting by Charities.. Statement of Recommended Practice ISORPI (applicable from 1 January 20191. Thg company qu8lrfi&s as Srn811 under sedion 383, so the strategic report required of rnedium and large companies under The Cornpanies Act 2006 (Strategic Report and Directorfs Report) Regulations 2013 is not required. Objectives and activities About us The Climate Bonds Initlatlve (Climato Bonds) 1$ an In18malion81 nol-for-profil organisalion working lo mobilise global c8pilal for climate action. Climate Bonds was created with a vlsion to moblllse Institutional Investors to counter the short-lemism 8nd vested interests that Infert pol and finance and undermine action on climate change. Our charitable objective is to presetve and conserve the environment for the public benefit. In particular, but not exclusively by.. serving as a catslyst lo rnobilise the global investment required in developing and developed countries to address the threat of catastrophic clirnate change., working to align govemment policy, industry development and institutional finance toward the timely and affordable deployment of a global low carbon e¢onomy,- and ensuring the environmental credibility of debt issuance and investment. Climate Bonds has played a ntral role in transforming the green bond market from a niche concept to a mainstream Sour of capital lor sustainable development, driving quality of issuance through the developrnent of saenee-based green definitions in line with the Paris Agreement. As financial market volatility increases and we grapple with rnultiple Crises, the Clirllate Bonds mission is more important than ever. We must act urgenily to address the climate crisis by Cutting emissions to bring economies in line wilh 1.5-degree warming and bulld the resilien of communities to protect them against the worst climate impacts. As underscored by th6 Intergovernmental Panel on Climate Change IIPCCI, this decade is critlC81 lo the futur8 of our planet. To avoid runaway and catsstrophic climate change, we must halve emissions by 2030. How we do It Climate Bond5 has a Multi-fated appro8ch that is divided into several key areas of focus: Policy Analysis and Advocacy: Conducting global and country-level ptslicy research and analysis, providing policy advisory services to governments, règulators, central banks, and cities, engaging with governments. and publishing and diss8rninating reports, policy briets, blogs, and webinars. Standards and Taxonomles: Developing green bond standards and definitions. creating a Climate Bond8 Taxonomy, providing advisory services on national 8nd region81 standards and tsxonomies, and promoting thought leadership on green definitional frarneworks. Certlflcatlon.. Includes Cetyng green btsnds,108ns, and other debt instruments, certrfylng entities, vetting and approving third-party verifi8rs, gnd providing a Clim8t8 Bonds Standard V4.0. Capaclty Bulldlng.. Providing technical assistance to issuers, governments. development banks, financlal institutions. and investors, offering training workshops and programmas, rèvièwing portfolios, assets, and pipelines for aligntnenl with taxonomy and standards, and providing advisory services on the GSS+ Bonds Frarnework. Markat D&v8lopmènt: Catalysing grèèn financ8 rrarkots in Asia Pacifi¢, Africa, Latin America, North Arnerica, and the EU, 8ng8ging with stakeholders and convening events, conferences, and meetings. developing partnerships to foster local green finance initiatives, and providing advisory services on localised green finane8 strategies through stakeholder engagement.
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES Market Intelllgence and R&s•arch.' Malntalning sever81 greon bond and related instrument databases. conducting research. analysis, and reporting on the sustainable finan market evolution, providing data to major green bond indices providers, financial data providers. and investors, and demonstrating investment pipelines through Investment Opportunity Reports. Investor Engagement.. Providing data 58TViCèS, analysis, and advisory services, promoting thought leadership and providing tools and knowledge lo ewpower investors to navigate, instigate, and influence change. providing assurance on the environmental integrity and credibility of green financial products, and conv8ning a global neOrk of sustainable h'nance leaders. issuers. intemediaries, and policymakers. Achievements and Perforniance Review of activÈties in the year 2023 With 8 mlsslon to rnobilise global capital for cjimate action. Climate Bonds aims to edLEcate, Insplm, eonvgne, and steer g global collaboration of institutional investors. govemments, development banks and industry lo shift capital toward low<arbon and resilient investments. Under th6se ft)ur banners, the followng serve as highlights from 2023.. Educate During 2023 we expanded and Improved our Market Intelligefjce data offerings. Climate Bonds datasets now include more than 26,000 grgen-labelled, aligned debt securities and infomi multiple green bond indices from S&P Global, MSCI, JP Morgan, Citi, and Solactive. Our Social and Sustainability bond datas8t now eontains over 16,000 issues Iwith 94°A meeting our methodology criteria- 8 con5id8rable achievement for a product launched in late 20221. In 2023 we added th8 sust8iri8bility-linked Bond dataset and its associated methodology to our Market Intelligence data product suite. The methodology is innovative and has therefor8 attracted client interest. By the end of 2023, there were 773 issuances aeross the various SLB 81ignm8nl categories. Technology is k8y to how we conduct business and in late 2023 we commenced a project to update the plafform that builds and manages our various data products. This wlll give us more accuracy, tirneliness and efficiency in our product management and will position us for growth into new produ¢l areas as the market evolves. In 2023, our promotion of sustainable finance and climate actlon continued apace across multiple channels. Our website was viewed over 1.3 million times by 312,000 visitors lof which 640/0 were first-time visitors). We saw 164,000 downloads of reports and other gducational content and received over 4.000 mentions in articlès and interviews in leading publications such as.. Bloomberg. The Financial Times, and Reuters. This year we conducted 44 trainlng actlvities across a divers8 array of fomiats and engagements, conducted across online, in-person, and hybrid pl8tforms, notably the four offered as public training sessions. reflecting our commitment lo knowledge dissemination beyond organisational boundaries. Our tralning work in 2023 reached more than 1,600 participants in six continents, predominantly in Asi8, Afric8, Europe and Latin America. We have reached over 5,500 Individuals since 2019, transcending geographical borders with participants from 125 countries. Inspire Climate Bonds was chosen out of over 200 organizations lo be a member of the EU High-level Expert Group on sraling up sustainable finance in low- and middle-income countries. The group Is mandated by the European Commission to provide guidan regarding the expansion of sustsinable finance in low- and middle-income countries. Climate Bonds is also a member of the Plaffomi on Sustainable Flnancè and a number of sub-working groups. Being a part of these groups is crucial for our capacity to driv8 change in the EU and beyond. We exerted Influen on four EU lagislations, notsbly by effectively advocating for stringent criteria for gas usage in the Delegated Act of the EU Taxonomy Regulation. Additionally, the member of the European Parfiam8nt responsible for leading on this matter adopted our reeommèndatlons on transition plans. Moreover, our suggestions pertaining to energy effieiency weig in¢¢)rporaled into the Energy Efficiency Directive. We worked on projects with more than 50 funders, including receiving charitab16 grants from philanthropic partners and champi¢)ning collaborative worknno to achieve wr mission and goals. Amongst others. the Charity
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES carried out high level collaborations with.. Dlrector8te General FISMA, the EU Commission department responsible for EU policy on banking and finance. Financial sector regulators and inilialivgs, for exarnpl8 the Centrdl America Stod( Exchange and the Latin Am6rieAn Green Bond Fund. NGOS such as FSD Africa, Intein8tion81 Finance Corporation, Asian Infrastructure Inveslment Bank. th8 European Bank for Roconstruction and Developrll8nl, the United Nations Office for Disaster Risk Réduetlon. and the World R8sources Institute IWRII. Government ministiies and regulators, such as the Ministry of Agriculture and Ministry of Economy in Br8zil and the Monetary ALrthority of Sing8por8. Foundations working towards dim818 solutions such as the Childrens Investment Fund Foundation. Gordon & Betty Moor8, New V8ntur8 Fund, Laudes Foundation and Growald Climate Fund. Throughout 2023, Glimale Bonds Initiative expanded its influence in the Latin America region. Our stand-out market intelligence reports for the region included Th6 L8tin Am8riC8 Stat8 of the Al8$1, Colombia Sustainable FinanG8 Slate of the Market, Investment Opportunities in the Agri-foocl Seclor in Brazil, Guidance Report for Implementing Ihe Colombian Tèxcnomy, EU-Colomhi8n Taxonomy Comp8rNson Report, ResilienGe Report in collaboration wth IDB, and through the reports we expanded our influence. W6 also developed proxles for the Colomblan national taxonomy. We slrenglhened alliances with th8 Stock Exchanges of LAC, signing seven new MOUS for co15aboration with the Dominican Republic, Colombia, Ecuador (Quito and Guay8quill. México, Chile, and Honduras, and we continued lo play a pivotal role in the development of Taxonomies in the region, providing support to the Governments of Brazil, Panama, and Costa Riea. We were proud lo bo invited lo address the Nassau Declaration meeting in the Bahamas, the sole non- governmental entity to do so. We contributed to the Inter-Atnerican Climate Chang¢ Aolion Plan organEed by the OAS, actively participated in initiatives such as the Brazilian Green Finance Initiative, engaged in public hearings for the Brazilian Taxonomy. and contlnued to develop Technical Assistance projects with financial and corrate institutions. Convene The Climate Bonds CONNECT 2023 event seri6s Is an important opportunity lo bring regional communities log&th8r, sharing th8 latest information and creating a space to connect key stakeholders in the sustainable debt arena. The events were held in key financial capitals worldwide, including Hong Kong. London, Bogota and New York. Titled Ready. Set, Transition, the 2023 Climate Bonds Connect series eng8g&d participants in disoussions to foster a credible global transition from brown to green, and facilitated debate on Irallsition across markets. sustainable debt products, and the economy, tackling the most difficult seclors, and creat4.ng opportunities for investrnents lo flow towards the development of sustainable infra-structure, energy and rnore. Th8 discourse was focused on achieving an ambitious, inclusive transformation aligned with the goa15 of the Paris Agreement. Through a combination of in-person and online events, over 3,600 participants from 1872 organisati'ons and 155 countries were connected. We had 96 speakers, market leaders and opinion-makers sharing insights on how the private sector and govemment can work together to drive the sustsinable finan¢a agenda ftsrward. Sinco 2016, Climat8 Bonds Initiative has Celebrated organisations, financial institutions and governments who have demonstrated leadership through financing climate-resilient and Iow-carbon projects across various industries and economic sectors. The 8th Climate Bonds Awards recogrii5ed 34 organisations frorll emerging markets, financial institution5, and gov@rnm8nts wortdwide who have led the development of the marf(et over 2022 with the key sustainable debt labelled bonds issuances. Stèar The Clim8le Bonds Standard v4.0 launched in April 2023 after an extensive period of public consultation and is the most important milestone in the history of the Climate Bonds Certification Scheme sineè its incoption in 2012. The scheme has been expanded to include the certification of non-fin8ncial corporations, and issuers of sustalnability-linked debt instruments, whose transition plans are aligned with 1.5-degree pathways. It now offers Iwo alignment levels to best-in-dass corporates who are already compliant with the Climate Bonds sectoral trajectories, as well as to those on rapid decarbonisation journeys, that will get them on track by 2030. CBS v4.0 defines the framework for assessing the Credibility of transition plans based on the clear articulation and aTnbilion of perforrn8nce targets, inl8m81 policy alignment and a robust governance framework. CBS v4.0
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES 8lso offers the certification of projects and assets which sakn'sfy the requirements of the Climate Bonds Sector Criteria. Improvements to the Climate Bonds Sector criteria continued into 2023, both in the hard-to-abale sectors. such as Hydrogèn Production and Electrical Ulilily Companies, and the upgrade of existing criteria to accommodate the certification of companies and general-purpose instruments Isuch as Sustainability-Linked instrument51. Additionally, in 2023, our Verif16r nehOrk expanded to indude fiv8 n8w firms b888d in Australia, China, UK. Au5tri8 and Brazil. Thrèè of our global and most active Approved Verifiers have already been approved and trained lo conduct Entity-level verifications and transition plan assessments. During the year we completed our first certification in the steel sector and our first sukuk certification. Cumulative cerbfied greèn insLJf8nc8 has exceeded the $300bln mark. Key Perfomiance Indlcators IKPlsl The Charity is on course lo deliver criteria for the Climate Bonds Stsndard across key sectors Identrfièd as crib'cal to achieving the targets sel by the Paris Agreement. During 2023, 93 green debt instruments with a value of £23bn were certrfied under Climate Bonds standards. Athough a reduction of 14Yo on 2022, many European instruments were allgned to the new EU tsxonorny, and overall green bond certificaiion continues to grow. Our Marf(et Intelligence team maintains professional monitoring of and provides relevant, timely reports on the international bond markets to quantify the development and Issuan of green bonds and other labelled debt instruments. Climate Bonds Initiative maintains its high standards of preparation. publication and prèsèntation of policy and technical analyses. Climate Bonds Initiative continues to expand the breadth and depth of Its partnerships wlh investors, banks, data service providers and other key beneficiaries. Partnershlp incomè grew 2.20k in 2023. Climate Bonds Initiative conty'nues to increase its geographical reach. At the end of the year we had staff based in 26 countries and were actively managing projects across all 5 contin8nts. The Charity continues to lift Climate Bonds Initiatlve's global brand recognition, profile and share of voice on key issues. All our commercial activities are mission aligned and our tot81 income 18 a measure of our outpul. Income increased year on year by 290h. Financial review The Balance Sheet Is shown on page 15 of this dOCu9nt, with further analysis shown in notes 12-21 on pages 17-32. For the year ended 31 December 2023. the Charfty had In¢omg of £8.8m12022.' £6.8ml and incurred expenditure of £9.4m12022.. £6.3ml. Climate Bonds Initiative's success continues to be built upon the breadth and depth of r818tionships developed over t4me wth investors, banks and othèrs, as wèll as an inere8s8 in th8 geographical reach of the organisation's work. Climate Bonds Initiab've's unrestricted deficit for the year 2023 was £620k12022'. surplus £517kl. Restricted income tOgnISed in the year has been mosdy spent with a £121 k12022.' £76kl carry forward balance. Net assets of the Charity al the year-end amounted to £1.6m12022.' £2.2ml. Future plans In 2023, w8 continued lo work on our strategy for the next three years of our mission. Our strategy focuses on mobilising global capital for climate action through four strategic objectives.. Strengthening internal stralegies and processes to optlmlse impact., Demonstrating the investment opportunity in the transition to 8 sustainablg and resilient future- Inspiring investors to champion Climate action, and.
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES Shaping climate policy to establish a favourable environment for green and resllient investments. By pursuing these objectives, Climate Bonds Initiative aims lo contribute to a rapid transition to a sustainable. green. and resilient future where societies and ecosystems thrive in the lace of climate change. Our Theory of Ghange oullin8s how we intend to achieve the goal of limiting global warming to 1.5 degreos Celsius, with people and the planet being more resilient to climate change. Ydt4di¢l.5'C ¥•xEwn Our key areas of focus include policy analysis and advocacy, standards and t8xonomi8s, certification, capacity building, market development, markel research and investor enuagement. Our global and regional priorities include achieving an ever-stronger presence in the European Union, L81in Ameri¢8 and ASEAN. We will prioritise key countries such as Brazil, China. India. Japan and the Uni18d Stales. given their high emissions profiles and role in shaping the global dimate agenda. We are committed to strengthening our leading role as the authority on taxonomies and providing market intelligence globally. Publlc beneflt statement The Charity has regard lo th8 guidance on public benefit published by the Charity Commission. Climate change is an enormoLJS worldwide ehall8ng8 that will 8ff&cl nations, communities and societies. Addressing that Challengè requires huge levels of financing immediately, as well as in the near to medium future. ClirM8tg and green bonds have the potential to make a major contribution to that financing. For the limate bonds market lo grow, investments need to be underpinnèd by confidence in the green credentials of bL¥nds. The Charity manages the Climate Bonds Standards that play a vitsl role in ensuring that there is confidenee and credibility in these inve51Ments. Details of activities in furtheran of publlc beneflt are set out in this report. Prin¢lpal ri$k$ and uncertainties The Trustees have assessed the major risks that the Charity faces in relation lo its operations and finances and are satisfied that the Charity is taking th8 action riecessary to mitigate its exposure to these risks. A risk aS5essm8nl r8gisler is being maintained and updated on a regular basis. The main risks and uncertainties facing the Charity relate lo.. Financial stability.. Ensuring that the Charity's sourees of Ineome continu8 in the fvlure requires maintaining a range of income streams, maintaining and extending good relationships with financial supporters, sound financial govemance, and continuing to provid8 guidance and encouragement that is respected and well-received by the international financial mark8tS and governmental regulators. Lack of engagement from potential bond issuers.. If bond Issu8ts do not recognise the value of issuing green bonds the charittys overall objective to stimulate green growth is diminished. Lack of engagement from other financial markèt stakeholders such as investors, underwriting banks and domesticfinternats'onal development banks. Lack of participation by polieymakers and rUltorS 85 8 result of disinterest in engaging with our outputs and advocacy. This could put the Clirnatg Bonds Initiative's leading intemalional standing at risk.
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES Reserves pollcy Th8 Board has 8gr88d that the Charity, in addition lo 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 unrestricted expenditure, so that the Charitls aetlvities Could continue in the event of any funding shortfalls. Unrestrictéd reserves at th8 year-8nd showed a balance of £1.5m12022.' £2.1 ml. Unrestricted reseNes exceeded the minirnum free reserves at the end of 2023 by appmximately £0.5m12022.' £1.4ml. Structure. governance and managemant 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 Bond8 Initiative are also the directors of the charitable Company for the purposes of company law. Climate Bonds Initiative has a wholly own8d subsidiary, Clim8te Bonds Services Limited, which is included in the consolidated financial stat8m8nts. We have also established two wholly owned overseas subsidiaries.. CBI Europe ABSL and Low Carbon Worfd Ishanghail Business Consulting Corporation, Ltd, designed to accommodate our activities in those regions, achieving alignment wlth funding p8rtn8rs and to m881 local compliance requlrements. Details of the Trustees who served during the year are included in the R6fèrène8 8nd Administrative Detsils on page 2. Trustees Trustees are elected by recommend8tion from gxisting charity trustees and by confirmation by the Chair of the Board. An 8ppropriat8 v8lling prLKess is overseen by the Chair. Climate Bonds Initiative appoints and reenjits new trLSStees through its wde n8twork of supporters, bearing in mind the skills required. The over811 performance of th8 Charity is the responsibility of the Board, but day-to- day decision-rnaking is dele9aled lo the Chief Executive Officer and Chief Operations Officer Ifonmedy Executive Director), supported by the Senior Leadership Team. Key strategic directlon and tnajor issugs of policies and procedures are set by the Board for implementation by the Chief Executive OffIr and Chief Operations Officèr. The induction and training of trustees is handled through a series of individual meetings with koy p8rsonnel. The Board sets the pay of the CEO and provides guidance for setting pay and remuneration for other senior staff. Key management personnel The key manag8rn8nl p8r50nnel of the group consist of the Tr*Jstees, the Chief Executive Officer and the Chi8f Operating Officer Ifomierfy the Executive Directorl-. Chief Executive Officer.. Sean lQdnay Executive Director.. Claire Berson luntil 31 December 20231 Interim Chief Executive Officer.. Nicola Adams-Hendry (from 29 September to 17 December 20231 Chief Operating Officer.. Nicola Adams-Hendry Ilrotn 18 December 20231 In addition, the following individuals served on the Senk)r Leadership Team during the year.. Oireclor of Climate Services.. lan Howard IfFom 11 D8c8mber 20231 Director of Country Prograrnrnès.. Ben Allen Ifrorn 17 July to 8 August 20231 Director of Environmental Impact & Thought Leadership.. Anna Creed Director of Finance.. Duncan Perriti Director of Operations.. Nicolè Adams-H&ndry lunlil 28 September 20231 DitOr of People & Culture.. Helen Ferguson Director of Strategic Communications & Marketing.. Selena Chapman and Pénny Cross (from 4 Deoernber 20231 Director of Strategy & ProgramTnes.' Ujala Qadir lunlil 30 November 20231 Director of Strategic Programmes: Ujala Qadir (from 1 December 20231
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES Director of Techni1 Dgveloprn8nt.. Bridget Boull8 Trustees, responsibllitles In relatlon to the flnanclal statements The Trustees Iwho are also Dir8¢tors of the comp8ny for the purposes of company lawl are responsible for preparing the Trustees. Report and the Financial Slalements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practi1. Cornpany law requires the Trusltses lo prtspare Finan¢ial Slattsments for ea¢h financial yoarwhich give a true and fair view of Ihe slate of affairs of the charitable company and of the incoming reSoUrS and application of resources, induding the income and expenditure. of the charitable company for that period. In preparing these Financial Statements, the Trustees are required to.. Select suitable accounting policies and then apply them consistently., Observe the methods and principles in the Charities SORP IFRS1021', Make judgements and estimates Ihat 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 concem basis unless it is inappropriate to presume that the charity wll continue in business. The Trustees are responsible for keeping adequale accounting records that disdose. with reasonable accuracy at any time, the financial position of the charitable company and enable them to ensu that the Financial Stst8ments oomply with the Companies Act 2006. They arg also résponsible for safegu8rding the 8ssets of the charitable cornpany and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. DSCIosUr of Information lo th8 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.. there 15 no relevant audit information of which the charitable company's auditors are unaware- and we have tsken all steps th8t we ought to have taken as Dir8¢tors in ordar to m8ko ourselves aware of any relevant 8udil inforrn8tion and to èstablish that the ch8rit8ble company's auditors are aware of that Information. Audltor PKF Littlejohn LLPwas appointed as auditor during 2020 and have indicated Iheirwillingness to continue in office. This report is prepared in accordance with the small companies. regime under thè Companies Act 2006. Approval This report was approved by the Board on 25th September 2024 and signed on its behalf. orp) I38 BSTI
CLIMATE BONDS INITIATIVE REPORT OF THE INDEPENDENT AUDITOR YEAR ENDED 31 DECEMBER 2023 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF CLIMATE BONDS INITIATIVE Oplnlon We have audited the financ4al statements of Cllmate Bonds Initiative Ilhe 'parenl charrtsble company'l and its subsidiaries {the 'group'l for th8 y8ar ended 31 Decerllber 2023 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 framèwork that has been applied in their preparation is applicable law and United Kingdom AcGounling Standards, induding FRS 102 The Financial Reporting Standardappli¢able in thg UKand RepubliG of Irelandluniled Kingdom GenerallyAccepted Accounting Pr8cticel. 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 Dember 2023, and of the group's incoming resourees and applie8tion of resources, induding ils income and expenditure, for the year then ended., have been properly prepared in accordance wth United KingdoFn Generally Accepted Accounting Practice.. and have been prepared in accordance with the reqLJirements of tho Companies Act 2006 and the Charities Act2011. Basis for opinion We conducted our audit in accordance wth Intornational Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities und9r those standards are further described in ihe Auditor's responsibilities forthe 8udil of the financial statements section of our report. We are independent of the group and parènt charitable company in accordance with the ethical requirements that are relevant to our audit of the financial slalements in the UK. including the FRC'S Ethieal Standard. and we hav& fvifilled our other ethical responsibilities in accordance with these requirem8nts. W8 b81ieve th81 the audit evidence we have obtained is suffiaent and appropriate to provid& 8 b8si5 for our opinion. Conclusions relating to golng concem In auditing the financial statements. we have concluded that the trus188s' use of the going concem basis of accounting in the preparation of th8 finanal 51alemenls is appropriate. Based on the work we hgve performed, we have not identffied any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's or parent charitable cornpany's ability to continue as a going concern for a period of al least twelve months from when the financial statements are authorised for issue. Our responsibllit1è5 and the responsibilities of the trustees with respect to going concem are descrfbed in the r8lev8nl sections of tris report. Other inforniatlon The other information comprises the information includ8d in the report of the trustees, other than the financia statements and our auditor's report thereon. The trustees are responsible for the other inlomiation contsined within the report of the Iruslees. Our opinion on the financial statements does not cover the other inforrnation and we do not express any fomi of assurance conclusion thereon. Our responsibility is to r88d th8 other information and, in doing so. consider whether the other inforrnation is m8terially inconsistent wilh the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we idèntify such material inconsistencies or apparent material misstatements. we are required to dèt8miinè whether this gives rise to a material misstatement in the financial statements Ihgmsglvos. If, based on the work we have performed, we conclude that there Is è material mis51alerllenl of this other infomiation. we are required lo report that fact. We havg nothing to report in this regard. 10
CLIMATE BONOS INITIATIVE REPORT OF THE INDEPENDENT AUDITOR YEAR ENDED 31 DECEMBER 2023 Opinions on other matters prescrlbed by the Companlas Act 2006 In our opinion, based on the work undertaken in the course of th8 audit.. the infomiaii'on given in the trustees. report. which includ85 th8 dire¢lors' report prepared forthe purposes of company law, for the financial year for which th9 fingncial stsl8m8nts are prepared is consistent with the finanaal statements., and the directors, report included wlthSn the tmstees, report has been prepared in accordan wth applicable legal requirements. Matters on which we ara r8quSr•d to rèport by èxception In the lighlof ihe knowledge and understanding of the group and parent charitable company and their environment obtsined in the couisè of th8 8udit, W8 have not identified material misstatements in the directors. report induded within the Irust88S' annual report. We have nothing to report in respect of the following matters in relation to vthich thé Cornp8nies Act 2006 and the Charities Act 2011 requires us to report to you if. in our opinion- ad8qua18 arid sufficient accounting records have not been kept by the parent charit8bl8 eompany, or returns adequate for our audil have not been reiVed from branches not visited by us.. or the parent charitable cornpany's financial statements are not in agreement wth thg a0ting records and returns., or certain disclosures of trustees, remunerats'on specified by law are not made., or we have not reiVed all the information and explanations we require for our audit., or the trustees were not entitled lo prepare the financlal statèrnénts in accord8nC8Wbth the small companies, regime and take advantage of the small companiès. èx8mptions in pr8p8ring the directors. report and from the requirement to prepare a strategie report. Responsibllitles of tNstees As explained more fully in thg trustees, responsibilities slalement, the trustees (who are also the directors of th8 tharilable wmpany for the purposes of company lawl are responsible for the preparation of the group and parent charitable company financial slalements and for being satisfied that they give a true and fair view. and for such intemal control as the trustees determine is necessary lo enable the preparation of financial statements that are fr6e from tnatèri81 misstatement, whether due lo fraud or error. In preparing the group and parent charitable company financial statements, the tmstees ar8 T8spon$ibl8 for assessing the group and parent charitable company's ability to continu8 as a going concem, disclosing, as applicable, matters related to going eoncgrn and using the going concem basis of accounting unless the trustees èither intend to liquid8te the group or the parent charitable company or to cease operations, or havè no raalistic allernats've but to do so.
CLIMATE BONDS INITIATFVE REPORT OFTHE INDEPENDENT AUDITOR YEAR ENDED 31 DECEMBER 2023 Audltor's r8sponslbllltl•s for thè audit of ihè financial statements We have been appointed auditor under the CorMp8nies Ad 2006 and secb'on 151 of the Charities Act 2011 and report in accordance wth those Ads and relevant regulations rnade or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are fr88 from material misstatement, whether due to fraud or error, and to Issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS IUKI wll always detect a material misslalement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate. they Could rèasonably ba expected to influence the economic decisions of users taken on the basis of these financial stslements. Irregularities, including fraud. are instances of non-complian with18ws and r8gul8tions. We design procedures in line with our responsibilities. outlined above, to detect rnat8ri81 rnisstgtements in respect of irregularities, In¢luding fraud. Th$ &xtenl to which our prwedures are capable of detecting irregularities. including fraud is detsiled below.. We obtained an understanding of th8 group and parent charitsble company and the sectors in which they operate to identify laws and raguladons that could reasonably be expected to have a direct effect on the financial statements. We obtained our und8rsl8nding in this regard through discussions with management, industry rèsearch, appllcatlon of ¢umulative audit knowledge and experience of the sector. We determlned thè prineipal laws and regulation5 relevant lo the group and parent charitable company in this regard to be those arisirig from Companies A¢1 2006. Charities Act 2011. Charities (Accounts and Reports) RegLJlations 2008, employ99 8nd lax legislation. We designed our audit procedures lo ensure the audit team considered whether there were any indications of non-compliance by the group and parent charitable company with those laws and regulatlons. Thesè procÈdur8s included, bul were not limited to.. enquiries of tnanag8menl,' and rèvièw of minLJt8$ We also identified th8 risks of m8leri81 misslalernent of the financial stalements due to fraud. We eonsidered, in addition lo the non-rebuttable presumption of a risk of fraLJd arising from management Overridè of Controls, that provisions fordoubttul debts and other liabilities as well as accruals and def6rrals Could be subject to manag9menl bias. We have reviewed the calculations for provisions and the assumptlons involved. We also reviewed the application of cut-off through accrued and dèferred incomè. No issues were identrf18d. As in 811 of our audits, wg addressed the risk of fraud arising from management overridè of controls by pèrforming audit procedures which included bul were not limited to.. the testing of joumals,. r8vi8wing accounting estirnales for evidence of bias.. and evaluating the business rationalè of any significant transactions that ar8 unusual or outside the nomial course of business. No issues wera idantrfied in our review. B¢¢ause of the inhtsrenl limitslions of an audit, there is a risk thal we will not detect all Irregularities, including those leading lo a material misstatement in the financial statements or non-cornpliance with regulation. This risk increases the more that compliance with a law or regulation is r8rnoved from the events and transactions reflected in the finanelal statements, as we wll be less likely to becorne aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error. as fraud involves intentional Conalment, forgery, collusion, omission or misrepresentation. A further description ol our responsiblllies for the audit of th8 financi81 statements is located on the Financial Reporting Council's wèbslte 8t.. www.fr .uklauditorsres onsibilities. This description forms part of our audthr's report. 12
CLIMATE BONDS INITIATIVE REPORT OF THE INDEPENDENT AUDITOR YEAR ENDED 31 DECEMBER 2023 Use of our report This report is made solely to the charitable oompany's rnembers, as a body, in accordan with Chapter 3 of Part 16 of the Companies Act 2006 and to the charitable company's trustees, as a body, in aecordance with Part 4 of the Chariti85 IAwounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might stsle 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 purposè. To the fullest extent pemitted by law, we do not accept or assum& responsibility to anyone, oth8r than the charitable cornpany and the charitable compantys 8s a body and th8 ¢haritsbl8 ¢ompany's Iruslees as a body, for our audit work. for this report, or for the opinions we have formed. Alastalr Dukè {Senlor Statutory Auditor) For and on behalf of PKF Litllejohn LLP Statutory Auditor 15 Westfery CTrcus Canary Wharf London E14 4HD Date 13
CLIMATE BONDS INITIATIVE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES {incorporating an income and expenditure account) YEAR ENDED 31 DECEMBER 2023 Unrestricted Restricted Funds Funds Total 2023 Total 2022 Notes Income from.. Charitable activities Bank interest other trading income 3.543,799 4,827 128,207 5.123,911 8,667.710 4,827 128,207 6,580,286 245,543 Total In¢om• 3,676,833 5,123,911 8,800,744 6.825,829 Expendlture on: Charitable activitie8 Trading activities 3,844,238 452.582 5,L178,891 8.923,129 452.582 6.028,369 312,336 Total expendtture 4.296,820 5,078,891 9,375,711 6,340,705 Net incomè 1619.9871 45,020 {574,9671 485,124 Transfers beeen funds Net Movement in Funds 1619,9871 45,020 1574,9671 485.124 Rèeonclllatlon of Fund$.' Total fvnds brought forward 2,146.W3 75,632 2,222,535 1.737,411 Totsl funds carried forward 1,526,916 120,652 1,647,568 2,222.535 All income and expenditure derwe from continuing activities. The statemènt of finanaal actiwties includes all gains and lossès rècognisèd durfng th8 y88r. The notes on page 17 to 32 form part ofthese Finanaal Statements. 14
CLIMATE BONDS INITIATIVE Cornpany number 07455730 BALANCE SHEETS AT 31 DECEMBER 2023 Consolidated Charity Not8$ 2023 2022 2023 2022 Fixed Assets Investments Intangible fixed assets Tangible fixed assets 12 13 14 100,112 77,101 59,603 50,100 44,376 41,765 77,101 61,296 44,376 43,481 138,397 87,857 236,816 136,241 Currènt Assets Debtors Cash 15 798,483 4,804,909 1,316,568 5.761,312 1,367,034 4,520,965 1,508,808 5,574,062 5,603,392 7,077,880 5,887,999 7,082,870 Credltors: amounts falling due within one year 16 {4,094,2211 14.943,2021 14.075,3671 14,920,488) Net Current Assets 1.509,171 2.134,678 1,812,633 2.162.382 Net Assets 1,647.568 2,222,535 2.049.449 2,298,623 Charlty Fund$ 17 Unrestricted funds Restrfcted funds 1,526.916 120.652 2.146,903 75,632 1.928.797 120,652 2,222,991 75,632 Total Funds 1,647,568 2,222,535 2.049,449 2,298,623 The Charity has taken exemplion frorn presenting its unconsolidated profit and loss account under section 408 of Companies Act 2006. The unconsolidated deficit lor the year ended 31 December 2023 Is £249.174 (2022= $urplus of £548,7331- The financial statements have been prepared in accordance with the prowsions applicable lo companies subject to the small companles reglme. The finandal statements were approved and authorised ftrr issue by th8 Board of Trustees on 251h Septernber 2024 and were signed on its behalf by.. ?Ori3 H--lJ . tyB28th sep24 Trustee The notes on pages 17 to 32 form part of these Financial Statements. 15
CLIMATE BONDS INITIATIVE CONSOLIDATED STATEMENT OF CASH FLOWS AT 31 DECEMBER 2022 Notès 2023 2022 Net Cash flow provlded by operatlng activities 20 1883,3711 2,545,238 Cash flow from Invastlng actlvltles Payments to 8cquir8 t8ngibl8 fixed assets Payments to acquire intangible fixed assets Bank interest 134,4101 143,4491 4,827 129,5181 Net cash flow used in investing adivities 173,0321 129,5181 Change in 5h and cash equlvalgnts In the year 1956.4031 2.515,720 Cash and cash 4uival•nts at 1 January 5.761,312 3.245.592 Cash and cash equlvalents at 31 December 4.804.909 5,761,312 The notes on pages 17 to 32 form part of these Flnanci81 Statements. 16
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT31 DECEMBER 2023 1. Summary of significant a¢¢ounting policies The significant accounting policies applied in the preparation of these financial staternents are set out below. The accounting policies have been applied consislently throughout the year and in the preceding year, unless olherwsè stated. General Inforniation Climate Bonds Initiative is a company limited by guarantee and is registered rith the Charity Commission (charity number 11544131 and the Registrar of Companies (company number 074557301 in England and W8185. In tha èvent of thè Charity being wound LSP, tha liability in raspoet of thé guaranteè is liTnited £1 p8r member of the Charity. The address of the registered office is shown under Charity Reference and Administrative Details. Basis of Pr¶tSon of Accounts Th8 charity constitutes a public benefit entity as d8fingd by FRS 102. Th8 finan81 staternents h8v8 been prepared IN accordance with Acwunting 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 IFRS 1021, the Financial Reporting Standard applicable in the United Kingdom and Republic of Iréland IFRS 1021, 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 Low Cart>on Woild Ishanghail Business Consultillg Co., Ltd . A further subsidiary corrp8ny, Glimate Bonds Inthalive {Evropel ASBL. registered in Belgium is also consolidated, though imrnaterial this year. The finanaal statements are prepared in sterlino which is the fijnctional currency of the charity. Going Concern The financial statements have been prepared on a going concern basis as the trustees consider that no material UnrtaIntieS exist conceming the chariWs ability to operate for the foreseeable future. The trustees have consldered the charlty's abilltyto meet its Ilabilities as theyarise over the fores8&ablefuture lo September 2025, being 12 months from the date of approv81 of these fin8nci81 slalernents. Accordingly, financial forecasts and cash flow projects'ons have been prepared for this period. The trustees recognise that in a period of growth there are some uncertainties that exist in the assumptlons underlying these forecasts, principally conoeming incorne gener8tion 3nd have identified actions to be taken as appropriate risk mitigation should these assumptions and forecasts not be adequately achieved. Income Recognltlon All Incomlng Tesourc8s 8r8 In¢ludgd in thg Statement of Fin8ncial Activities ISOFAI when the charity is legally entitled lo 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 reeognised the Charity will have been notlfied of the amoLJnts and the settlement date in writing. If there ar8 conditions 8ttached to the donation and this requires a 18v81 of performance before entitlement can be obtained then income is deferred until those conditions are fully mel or the fulfilment of those conditions is within the control of the Charity and it is probable that they will be fulfilled. Tha Charlty récèivèd govèrnmènt and othèr grants in rèspéct of fLJrth8ring its eharitablé objéctivès. Incoine from government and other grants are recognised at fair value when the Charity has entitlement after any perfomiance conditions have been met. it is probable that the income will be received, and the arnount can be measured reliably. If entitlement is not met then these amounts are deferred. Verification fees, ¢&rtrFic8tion fees, reports income and events incorlle are recognised in full when the charity is entitled to the income. 17
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT31 DECEMBER 2023 1. Aeeountlng Pollei•s leontinuèdl Annual partner subscriptions are reeognised 50¥D immediately and the balance over a 12-month period to whlch they relate from the month of rec&ipt. wth the b818nc8 at the ye8r-8nd Included as d8f&rred incomg. Interest on funds held on d8posII is induded when receivable and the amount can be measured reliably by ihe Charity., this is normally upon notification of the interest paid or payable by the bank. On receipt, donated professional setvices and donated facilities are recognised as gnls in kind 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 of facilities of equivalent economic benefit on the open rllark8t- a corresponding amount is then recognised in expenditure in the period of receipt. ExpendFture Recognltlon All expenditure Is a¢¢ountad for on an 8rU41$ b8$1S 8nd has been cl8ssified under the headings that aggregate all costs related lo the category. Expenditure is recognised wher8 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 reeognised irnm8dialely upon becoming a constructive oblig81ion. Expenditure 15 ¢alegorised under the following headings.. Costs ol raising funds includes are those costs incurred in attraeting donations. and those incurred in tiading activities that r81se funds., and Expenditure on eharitable actiwties includes expenditLJre assoclated th thè maln oblèctivès of thè charity and in¢ludg both direot costs and support costs relating lo these aclivili85. Support costs allocatlon Support costs are those that assist the work of the charity but do not directly represent charitable activits'es and include office premises costs, finance, HR, ISIIT, legal and govemance costs and management and administration costs. They are incurred directly and necessarily in support of èxpenditure on the objects of thé charity. Where support costs cannot be direcuy attributed lo particular headings they have been allocated to expenditure on charitable activities on a basis consistent with use of the resources. Govemanee costs are those incurred in eonneetlon with th6 runnlng of the Charity and compliance wlth conslilulional and slatulory requirements. The analysis of these costs is included in note 8. Intanglble fixed assets Intangible fixed assets are assets that do not have physical sUbstsn but are identrfiable and are Controlled by th& Charity through oustody or legal rights. Int8ngible fixed assets are recorded al historical cost and amortised on a slraight-line basis over 4 years. Tangible Fixed Assèts and Deprèciation 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 fixèd assèts, less th8ir ostimated r85idual valu8, ov8r their exp&cted useful lives on str8ight-line basi5'. Plant and machinery Offic6 éqLJipmént 20% 20% 18
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2023 1. Aeeounting Polleies leontinuèdl Debtors and credltors receivable I payable within one year Debtors are recognised when the Charity is legally entitled to the income after any performance conditions have been met. the atmount can be tneasured reliably, 8nd il 1$ probable that the income will be reived. Creditors are recognised when the Charity has a present or constructive obligation resLJlting from a past event and the setdement is expected to result in an ouffiow of economie benefits. Foreign Currency The consolidated financial statements are presented in UK pounds st6rfing l£'sl. th8 functional ¢urrency of th8 charity. For project planning purposes, the ch8rity uses 3 standard exchange rate for the year. All transactions denominated in foreign currencies are translated at the spot rate. the aclual rate achieved al the time of the transaction. All bal8n¢tr sh&8t bal8n¢es ar$ translatttd al the prevailing year-8nd rate. Any gains or losses resulting from exchange rates are recognised through the SOFA. Funds and Fund Accountlng Unrestricted funds are availablefor use at the discretion of the Trustees in furtherance ofthe general objective of the charity and which have not been designated for other purposes. R8Stricted funds ar8 funds which are to be u$8d in ac¢ord8nce with specific reslriclions irnposed by donors or which have been raised by the Charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restrlcted fund is set out in the notes to the financial statements. Employee Benefits The eharity operates a definèd contributSon plan for tha benafit of employees. Contributions are expensed as they b8wme payable. Tax The ¢h8rity is an exempl tharily within the meaning of schedule 3 of the Charities Act 2011 and is considered lo pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010. It thefOre meets the dèfinition of a charitable company for UK corporation tax purposes. Financial instruments The Charity only holds basie financial Instruments. Thg finana81 assets and finanal liabilthes of the Charity are as follows.. Debtors trade and olher debtors lincludlng accrued Income) are basic financial instrutnents and are dèbt instrLJmènts mèasured at transaction Cost. Prgp3yrllgnts are not financial instruments. C8sh al bank- is classif18d as a basic financial instrument and is measured al face value. Liabilities trade creditors, accruals and other creditors are dassified as financial instmments. and are measured at transaction cost. Taxation and social 5eeurity arB not included in th8 financial instruments diselosura. DoforrÉd incomè is not deérmed lo be a fin8nci81 liability as the cash settlement has already tsken place and there is simply an obligation to deliver charitable SeNiS rather than cash or another financial instrument. 19
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER2023 Crlti¢al a¢¢ountlng ¢$tlmat¢$ and ar••$ of ludg&ment The following judgements (apart from those involving eslirnatesl have been made in Ihe process of applying the above accounting policies that have had the most significant effect on amtsunts recognised in the finanual st8tements'. location of support costs Depreciation rates for tangible fixed assets 75¢/ts Capitalisation of graphic design lorfrontond development) of websitè, and subsequèntamortisation. Intercomp8ny recharge 20
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2023 2. Income from Charltable Actlvltles Unr•strletsd Rastrletèd Funds Funds Total 2023 Total 2022 Projects, advocacy and guidance 3.543,799 5,123.911 8.667,710 6.580,286 3. Bank Int•r•st Unrestricted Restricted Funds Funds Totsl 2023 Total 2022 Bank interest 4,827 4,827 4. Other tradlng Incom& Unr&strict•d Rostrictèd Funds Fund¥ Total 2023 Tatal 2022 Trading 128,207 128.207 245,543 5. Exp8ndlturn on Charltablè Aetlvltl•s Dlrect Costs Support Costs Total 2023 Total 2022 Projects, advocacy and guidance 8.048.005 874,440 8.922,445 6,028.369 Totals 2022 5.751,757 276,612 6,028,369 fj. Direct costs Unrestrlcted Funds Restrlcted Funds Total 2023 Total 2022 Consultancy costs Other direct costs Travel and subsistence Staff costs Reallocated costs 3,203.989 33.837 175,446 537,066 1505,2141 344,573 739,526 93,268 2,920,300 505,214 3,548,562 3,205,818 773,363 43,324 268,714 197,58fj 3,457,366 2,305,029 Total 3,445,124 4.602,881 8.048,005 5.751,757 21
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2023 7. SLFPPOrt eosts Unrestricted Funds Reslricted Funds Total 2023 Total 2022 Conference event costs Establishment and g8n8ral adrninistration Support staff costs Goverllance costs Depreciation Atnortisation Foreign exchange lossllgainl 17,318 19.569 36,887 42,395 131.144 7.644 18,366 16.595 10.724 197.323 418.891 550,035 7,644 24,366 16,595 10,724 228,873 589,596 6.000 11,011 11,182 5,624 1383,1961 31.550 Total 399,114 476,010 875,124 276,612 8. Governance costs Total 2023 Total 2022 Legal and professional Auditor's remuneration 8udil other servic8S Overaccrual in prior years 4,771 11,840 14.500 5,095 18,0(X) 7,680 126,5091 24,366 11,011 9. N•t Income for the year The net incorna is stated after Icreditingllcharging.. Total 2023 Total 2022 Depreciation of tangib16 fixed assets Amortisation of intangible Iix8d assets Net lossesllgainsl on foreign exchange 16,595 10.724 228.873 11,182 5,624 {383,1961 10. Staff costs and employee benefrts The lo181 staff costs and employee benefits were as follows.. Total 2023 Totsl 2022 Wages and 5818ries Social security Defined contribuuon pension costs 3.076,689 320,384 69.092 2,013,730 241,865 44,459 3,466,165 2.300,054 22
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2023 10. Staff costs and employee benefrts Icontinuèdl The number ofemployees who received total employee benefits18xduding employer pension costs) of rnore th8n £60,000 Is as follows.. Number of employees 2023 2022 £60,001 to £70.000 £70,001 to £80,000 £80,001 to £90,000 £90,001 to £100,000 During the year, the charity paid £25,97512022.' £8,740) under a defined contribution pension scheme on behalf of staff. The average monthly number of employees during the year was as follows- Number of employees 2023 2022 Staff 56 47 11. TNstees' and key management personnel remuneration and •xpansas No trustees reived any remuneration or reimbursement of travel expenses from the charity during the year 12022- 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 oparating thè charity on a day-to4ay basis. The total amount ol employee benefits received by key management personnel during the year was £254,82912022.. £218.5641. 12. Invèstm•nts (Charltyl Cost 2023 2022 Investment in Clirnate Bond servIs Limited Investment in Clirnate Borlds Initiative Low Carbon World Ishanghail Business Consulting Go., Ltd 100 100 100,012 50,000 100,112 50,100 Clirnale Bonds Initiative has 100¢A control of Climate Bond S8rviees Llmited (Company règistratlon number 117159561, a company registered by share capital and whose registered office is First Floor, Queen Street Place, London, EC4R 18E. The subsidiary year-end is also 31 December 2023. The company was incorporated on 6 December 2018. The rnajor actItieS of the company comprised the hosting of the Climate Bonds Initiative annual ¢oNference, forwhich wmmer¢ial sponsorship was obtained. The income for Clirnate Bonds Services does not include individual attendee ticketed income, which is included in Climate Bonds Initiative. The summary financial performance of the subsidiary for the year ended 31 Dember 2023 is as follows. 2023 2022 Turnover Cost of sales Adrninistrative expenses 128.194 1116,065 173,324 245,489 102,214 147,549 Operating loss Gift aid to parent {61,1951 14,2741 Result for the period 161,1951 {4.2741 23
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2023 12. Investmènts (Charltyl {contlnuedl Current assets Current liabilities 294,577 1359,9471 288,677 1292.8511 Net (liabilitiesllassets 165,3701 14,1741 Climate Bonds Initiative has 100 /0 control of Clirnale Bonds Initi8live (Europe) ASBL (Company registration numbér 0730.588.7561. a company registered by share capital and whose registered office is Av8nU8 Leon Jourez 34, 420 Braing I'Alleud, Belgium. The subsidiary year-end is also 31 Dember 2023. The company was incorporated on 6 December 2018, Th8 company had no malerfal activlty in either year but is intended to become a hub for Climate Bonds Initiative's activities in m8inland Europe, espocially in a post-Brexit era. The summary finanaal perfomiance of the subsidiary for ihe period ended 31 Dernber 2023 is as follows. 2023 2022 Turnover Adminislralive èxpenses 1232.6861 125,8951 Result for the year 1232.6861 125,8951 2023 2022 Flxed assets Current assets Current liabilities 1,693 1,809 1262,0821 1,716 186 127,7971 1258,5801 125,8951 Climate Bonds Initiative established a subsidiary in China, Climate Bonds Initiative Low Carbon Worfd Ishanghail Business Consulting Co., Ltd Iunified Social Credit Cod8.' 91310115MA1 K4MYUOOI. Climate Bonds Initiative retains 100°A control of the company, whose registered address is., No. 14, Lane 1502 Luoshan Road China ISh8ngh8il Fr86 Trade Pilot Zone. The resLJlts lor the year to 31 December 2023 were.. 2023 2022 Tumover Administrative expenses 54 136.9001 131,1911 Result for the year 131,1411 136,8461 Current assets Current liabilities 24,364 15,0781 12.577 {11,8711 Nel assets 19,286 706 Share capital Retained earnings 100,012 180,2761 50,000 149,2941 R8S8rv8S 19,286 706 24
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2023 13. Intangible Fixed Assets IGroup and Charity) Cost Webslte and database Total At beginning of year Additions 202,717 43.449 202,717 43,449 Al end of year Amortisation 246.166 246,166 At beginnin Charge for t of year 8 year 158,341 10,724 158,341 10,724 Al end of year Net Book Value 169,065 169,065 At 31 December 2023 77,101 77,101 Al 31 D8cernbèr 2022 44,376 44,376 14. Tangible Fixed Assets (Group) Plant & Office & IT machlne equipment Cost Total Al beginning of year Additions 424 103,253 34.410 103.677 34.410 At end of year 424 137,663 138,087 Depreciation Al beginnin Charge for t of year e year 424 59,772 16,595 60,196 16,595 At énd of yèar Nat Book Value 424 76,367 76,791 At 31 December 2023 61,296 61,296 At 31 December 2022 43,481 43,481 25
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2023 14. Tanglble Fixed Assets (Charity) Plant & Office & IT maching 8quipmant Cost Totsl Al beginning of year Additions 424 101,309 33,750 101,733 33,750 At end of year 424 135,059 135,483 Depreciation of year e year Al beginnin Charge for I 424 59,544 15,912 59,968 15,912 At end of year 424 75,456 75,88Q Net Book Value At 310ecember 2023 59,603 59,603 At 31 December 2022 41,765 41,765 15. Debtors Group Charity 2023 2023 2022 2022 Trade debtors Other debtors Prepayments and accruéd income Intercompany debtor 392.861 1.104,552 14,020 197,996 374.147 1,015,053 405,622 404.540 588,347 197,996 295,759 798,483 1.316.568 1,367,034 1,508,808 16. Creditors= Amounts Falllng Due Within One Year Group Charity 2023 2023 2022 2022 Trade creditors Social security and other tsxes Other creditors Accruals and def8rr8d Ineome" Intercompany creditor 159,834 66,229 142,730 3.725,428 203,817 106.644 287.272 4,345,469 137,279 192,428 81,190 106,644 142,729 287,272 3,714,169 4,334.044 100 4,094.221 4.943,202 4,075,367 4,920,488 'Deferr8d incomè.. Brought forward al 1 January 2023 Incoming resources deferred during thè yèar Amounts released from previous years 4,081,316 3.392,268 14.081.316) Carried forward at 31 December 2023 3,392,268 26
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2023 17. Fund reconciliation Icon501idat•dl Current Ytrar Balance as at 1.1.23 Balance as Transfèrs at 31.12.23 Income Expenditure UNDP G & B Moore Foundation Oak Foundation World Resources Institute (WRII BEIS Agora Foundation ECF EU Taxonomy 2020 ECF EU Taxonorry 2021 ECF EU Taxonorny 2022 FSD Africa GIZ ASEAN Growald Foundation IPSF GIZ 2020 IPSF GIZ 2021-22 The Children's Investment Fund The Foreign Commonw88lth and D8valopmÉnt Office- India 2021 The Foreign Commonwealth and Development Office UK PACT China UK PACT India UNDRR Laudes Foundation 2021-23 N8w Venture Fund Tara Clirnate Limited Forsythia Foundation European Climate Foundation Scaling Up Finan for India's Green Transition 438 1327,6191 1126,8931 438 1,033 1,959 2,724 11,356 185 1,597 11,8561 326,585 124,934 2,724 12,918 185 1.597 (1.8561 46.998 145,4371 29,999 1,491 67.207 125,2371 71,969 1,491 5,238 110,161 1111,6551 235,277 1230,0381 110,161 1111.6551 2,164,483 12,164,483) 190,275 1191,0441 1769) 8,056 181,174 1180,9461 131 142,6921 1331,7811 1647,4621 1163.2891 160,3531 183.8421 8,286 1,029 42,161 336,485 645,123 156,703 61,785 83.842 499 4,704 10,626 12,964 6.586 1.432 460,879 1458.2141 2.665 Total r¢$trlet•d funds 75,632 5,123,911 15,078.8911 120,652 General Funds 2,146,903 3,676.833 14,296.8201 1,526,916 Total unrestrfcted funds 2,146,903 3.676.833 14,296.8201 1,526,916 Total funds 2,222,535 8.800,744 19,375,710) 1,647.568 27
CLIMATE BONDS INITIATIVE NOTES TOTHE FINANCIAL STATEMENTS AT 31 DECEMBER 2023 17. Fund reconclllatlon {consolldatedl {contlnuedl Prlor Yéar Balance as at1.1.22 Balance as Transfers at 31.12.22 Income Expendltur& European Cornmission IEuroPacel UNDP G & B Moore Foundation Oak Foundation World Resources Inslilule IWRII BEIS China BEIS Columbia Agora Foundation ECF EU Taxonomy 2020 ECF EU Taxonomy 2021 ECF EU Taxonomy 2022 ECF Tara FSD Africa GCA Standards GIZ ASEAN Growald Foundation IPSF GIZ 2020 IPSF GIZ 2021-22 The Children's Investment Fund The Foreign Cornrnonweallh and Development Office- India 2021 The Foreign Commonwealth and Development Office- India 2022 UK PACT China UK PACT Colurnbia UK PACT India UNDRR Laudes Foundation 2021-23 New V8ntur8 Fund Tara Climate Limited 11,8461 13,132 352,873 140,394 9,981 1,847 129,1201 1352,8731 1141,9081 124,6371 15,988 1.033 3.473 17,380 3,905 9,460 185 1,597 24,130 1,Q33 1.959 2,724 3,905 7,451 185 1,597 11,8561 {2,0091 12,795 109,311 24,015 30,359 138,7811 1109.3121 114,8891 12,8501 144 19,1261 2,490 11441 6,349 17,9351 26,035 29,999 14,8581 111,630 1,491 (103,6951 84,126 110.161 1111.6551 1111,6551 1.042,204 11.042,2041 121,426 36,204 1121,4261 136,2041 1201 143,343 417,228 24,109 102,331 370,436 531,703 29,474 1135,2671 1417,2281 124,1061 1101,3021 1370,2661 1531,7031 122,8881 8,056 1,029 11701 12,964 12,964 6,586 Total restricted fund5 107,594 3,504,589 {3,536.5511 75,632 General Funds 1,629,817 3.321,240 {2.804.1541 2,146,903 Toial unrestrlcted funds 1.629,817 3,321,240 12,804,154) 2.246,903 Total funds 1,737.411 6,825.829 16.340,7051 2,222,535 28
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2023 Purposes of Restricted Funds= Europaan Commlsslon {EuroPacel European Gornrnission under its Horizon 2020 Programme funded the project "EuroPace Developing, piloting and standardising on-tax finanang for residential energy efficiency retrofits in European cities and regions" frorn March 2018 to Fabruary 2021 In a total amount up to É175.775. UNDP Support for Climate Bonds Initiative lo partiapale in Working Group "D8veloping Taxonomy for Indian Government. G & B Moore Foundatlon Driving the Development of Green Agri Bonds in Brazil and Chin8. Oak Foundation Oak Foundation funded the project "Growng the Global Green Bonds Market. from September 2016 to December 2021. World Resources Institute IWRII Support to WRI project entitlèd Transformational Project Pipelines for NDC Implementation. Signed in 2019 and extended to Sept 2022. BEIS: China The Secretary of State for 8usiness, Energyand Industrial Strategy hasfunded the prolectentltled'sustsinlng the Growth of China's Green Bond Market and Facilitating Inter-country Green Capital Flows. (February 2019 Nov8rnb8r 20201 with £300,000. Colombla The Secr8tsry of St8t8 for Busin8ss, Energy and Industrial Strategy h8s funded the project entitled 'Scaling up Green Finance and establishing building blocks for scalable and low carbon investment in Colombia" (July 2019- October 20201 with £485,699.54. Mexl¢o The Seuetary of Stale for Business, Energy and Industrial Strategy has fund8d th8 proj8Ct entitl8d "Building a foundation for a sustainable and scalable low carbon future in Mexico - from Green Bonds lo a Greener Ecosystem . (July 2019- September 20201 wlh £181,622. Agora Foundation SEFEP GmbH Agora Energiewende funded Climate Bonds Initiative with a grant forworking in the context of 'CRUX Poli Centre Pow8rf' wth the obj8Ctive of 8n8bling th8 8n8rgy transition in South Africa by building caDacitv for areen bonds (June 2020 - Januarv 20211 with É70.000.. SEFEP (Smart Energy for Europe Pl8tforml received the grant funding from the Aspen Global Chang8 InstitLIt8 IAGCII. ECF EU Taxonomy 2020 The European Climate Foundation funded this project to step up enqagement and capacity building activities with key stakèholdÈrs, such as Mèmbèr Slatès, around EU gré8n taxonorny developments and future plans. Also, it conb'nues Climate Bonds Initiative's technical engagement with EU on next iteration of taxonomy. IApril 2020- March 20211 with É155,619. ECF EU Taxoftomy 2021 EU Sustainable Finance Taxonomy- Ensuring alignment to 1.5 degree pathways and supporting the growth of a Taxonomy-alignÈd green bond markets In k6y Member States in Europe. ECFTara EU Sustainable Finance Taxonomy- Ensuring alignment lo 1.5 degree pathway5 and supporting the growth of a Taxonomy-aligned green bond markets in key Member States in Europe. FSD Afrlca The Financial Sector Dg8P8ning AfricA IFSDAI has funded this projèct to Clim8ta Bonds Initiativè lo act as the lead consultant in the Nigerian Green Bonds Programme. Climate Bonds Initiative has provided support for Green Bond Issuanc8, which involv8s issu8nee of guidalin8s and listing requiremènts for grèan bonds. developing a pool of Nigeria-based LInced verifiers, developinq a pipeline of qreen investments, developing an inlemalion81 collaboration. and dev91onina 8 debt caDlt81 market reform aaenda to support grggn bonds under the Debt Capitsl Markets Development. (April 2018- June 20211 with £110,320. 29
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2023 GCA Standards The Global Centre on Adaptation funded this project with an overall goal lo hglp advancè wmmon tsnderstanding of resilience investments and opportunities in the bond market. through bespoke research. guidance preparation, and stskehold8r engag8rnent (Sep. 2020- March 20211 wth É64,763. GIZ ASEAN GIZ (Deutsche Gesellschaft fLlr Internationale Zusammenarbeit GmbHI funded this project to asse5S the"EU Sustainable Finance Action Plan to Finance a Green Corona Recovery in the ASEAN Region (Dec 2020 - Aug 20211 with É447.147. Growald Foundation The Growald Foundation has funded this project lo deliver.. lil Green infra5lruUre investment opportuniti8S report and investor forum for GBA. lill Market education and trainings to relevant stakeholders in GBA. on green bonds, liiil Guidelines on green transition financ& for China with a fo¢u$ on GuangdonglGBA (July 2020 October 20211 with $100,000. r GBA is ihe GrealerBay Area of China enrnwising Hong Kong and n8vJhbouriTbg Chilles8 cl1) IPSF GIZ GIZ (Deutsehe Gesellsehaft fur Intemationale Zusammenarbeit GmbHI has funded this project to support the International Platform on Sustainable Finance IIPSFI, an initiative of the Eu's OG FISMA (June 2020 April 20211 with É175,716. The Children's Investment Fund Accelerated industrial decarbonisalion in Europe through dgdicated transition flnanung to industrial companies Thè Forelgn Commonwealth and Development Office UK PACT- Columbla Greening the Colombian Financial Systom.. Implementlng local green deflnitions to enable long-term investment into priority sectors. UK PACT- China Accelerating high-quality growth In Chlna's Green Bond market and supporting post-COVID Green Economic Recovery. UK PACT- India Strengthening climate risk assessment and enabling ntral bank supervision in the Indian finanaal sector.. a partnership with fronlrunning bank5 and DFIS. IPSF GIZ 2021122 IPSF Technical support Phase 2 Ilnlemational Plaffom for Sustainable Finance). Laudes Foundatlon 2021123 EU Building Programme on Energy Effioency New Venture Fund Preparation of Concept Note for Transition Proposal on Land use. Rockefeller Foundation- Rev303 RoGkefe119r Foundation funded the standards project "Climate Bonds Standards and Definitions lo Support Market Confidence. from August 2017 to May 2020 in a total amount up lo $400.000. Rockefeller Foundation- INF311 Rockefeller Foundation funded the pollcy proleet"Green Aggregation and Securitization in Emerging Markets and Developing Countries. from November 2015 to June 2017 (extended lo June 20191 in a totsl 8rMount up to $510,000. FCO India FCO IUK Foreign 8nd Cotnmonwealth Office) funded the project°Using Green Bonds to Raise Intemational Capital for India's Transition to a Low-carbon and Clirnate Resilient Economy Phase-llll. from January 2018 to July 2018 in 8 total amount up to £57,717. ECF ASEAN 30
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2023 Th8 Int8rn8tion81 Forurn for En8rgy IIFEI, an initiative of the European Climate Foundation IECFI. 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 infrastruGtur8 in ASEAN countries {April 2019 - April 20201 with $150,000.00. 18. Analysls of not assats b•tw•èn funds Current Year Creditors Currènt du8 wlthSn assats onè year Fixed Assèts Total Restricted Funds 120,652 120,652 Unre5tri¢tsd fund$ 138,397 5,482,740 14,094,221) 1.526.916 Total funds 138,397 5,603,392 14,094,221) 1,647,568 Prlor Year Creditor5 Current due within Assets one year Fixed Assets Total Restricted Funds 75,632 75,632 Unrestrlcted funds 87,857 7.022.248 14,943.2021 2,146,903 Total funds 87,857 7.077,880 14,943 ,202) 2.222,535 19. Reconciliation of net income to net cash flow from operatlng actlvltles 2023 2022 Net movement in funds for the year 1574,9671 485,124 Bank in18res1 Depreciation and arnorbsation Decreaselllncreasel in debtors (Decreaselllncrease in creditors 14.827} 27.319 16.806 518.085 148.8371 1848,9811 2.142,145 Net cash provld•d by oparatlng aetlvltles 1883,3711 2,545,238 31
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2023 20. Relatod Party Transactlons t)uring the year. Climate Bonds Initiative was invoiced £211,494 for 59rvices provided by ODI, a company of which Rathi Roy is a Managing Director. No amount is outstanding as at 31 Decembèr 2023. 21. Prlor year Statemènt of Financial Actlvltl•s Unrestricted Funds R•strlcted Funds Total 2022 Notè$ Income from: Charitable 8oliwlies Bank interest Qlher trading income 3.075,697 3,504,589 6.580,285 245,543 245,543 Total Income 3,321.240 3.504,589 6,825,829 Expfrndlturè on.. Charitable activits'&s Trading activities 2,491,818 312,336 3,536,551 6,028,369 312.336 Total expendlture 2,804,154 3.536,551 6,340.705 Net income 517.086 {31,9621 485.124 Transfers between funds Net Movemant in Funds 517,086 131,9621 485,124 Réconciliation of Funds.- Total funds brought forward 1,629,817 107,594 1,737.411 Total funds carrlèd forward 2,146,903 75.632 2.222,535 32