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-fa￿ted 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 Ce￿tyng 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 ne￿Ork 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 lowon 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 Un￿rtaIntieS 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 8￿rU41$ 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 re￿ived. 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$8d in ac¢ord8nce with specific reslriclions irnposed by donors or which have been raised by the Charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restrlcted fund is set out in the notes to the financial statements. Employee Benefits The eharity operates a definèd contributSon plan for tha benafit of employees. Contributions are expensed as they b8wme payable. Tax The ¢h8rity is an exempl tharily within the meaning of schedule 3 of the Charities Act 2011 and is considered lo pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010. It the￿fOre meets the dèfinition of a charitable company for UK corporation tax purposes. Financial instruments The Charity only holds basie financial Instruments. Thg finana81 assets and finan￿al liabilthes of the Charity are as follows.. Debtors trade and olher debtors lincludlng accrued Income) are basic financial instrutnents and are dèbt instrLJmènts mèasured at transaction Cost. Prgp3yrllgnts are not financial instruments. C8sh al bank- is classif18d as a basic financial instrument and is measured al face value. Liabilities trade creditors, accruals and other creditors are dassified as financial instmments. and are measured at transaction cost. Taxation and social 5eeurity arB not included in th8 financial instruments diselosura. DoforrÉd incomè is not deérmed lo be a fin8nci81 liability as the cash settlement has already tsken place and there is simply an obligation to deliver charitable SeNi￿S rather than cash or another financial instrument. 19 CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER2023 Crlti¢al a¢¢ountlng ¢$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 re￿ived 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 servI￿s 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 actI￿tieS 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 De￿mber 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 De￿mber 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 De￿rnber 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 LI￿nced 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 infra5lru￿Ure 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