INITIATIVE Climate Bonds Trustees, Report and Consolidated Financial Statements for the year ended 31 December 2024
CLIMATE BONDS INITIATIVE CONTENTS Contents Page Charity Reference and Administrative Details Report of the Trustees 3-19 Report of the Independent Auditor 20-23 Consolidated Statement of Financial Activities (including the Income and Expenditure Account) 24 Balance Sheets 25 Consolidated Statement of Cash Flows 26 Notes to the Financial Statements 27-42
CLIMATE BONDS INITIATIVE CHARITY REFERENCE AND ADMINISTRATIVE DETAILS Climate Bonds Initiative Charity Reference and Administrative Details Ms Dorts Honold (Chair) Mr Nicholas Silver (resigned l January 2024) Mr Simon Cooper (resigned 23 May 2024) Ms Karen Kearney Mr Jonathan Stone Mr Kevin Steele Dr Rathin Roy Ms Elizabelh Grayer Ms Yulanda Chung (appointed 23 May 2024) Trustees CEO Mr Sean Kidney Company Number 07455730 Charity Number 1154413 CIO Sedulo London Office 605 Albert House 256-260 Old Street London EC1V 9DD Registered Office HSBC UK Bank plc 1 Centenary Square Birmingham B1 1HQ Bankers PKF Littlejohn LLP 15 Westferry Circus Canary Wharf London E14 4HD Independent Auditor
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES Report of the Trustees Trustees Annual Report The Trustees confirm that the Annual Report and audited Financial Statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Companies Act 2006, Charities Act 2011, Accounting and Reporting by Charities.. Statement of Recommended Practice (SORP) (applicable from 1 January 2019). The company qualifies as Small under section 383. so the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES Objectives and Activities Climate Bonds Initiative (Climate Bonds) is an international not-for-profit organisation mobilising global capital for climate action and resilience, ensuring investments support a sustainable, adaptive. and Iow-carbon future. Climate Bonds has played a central role in Iransforming the green bond market from a niche concept into a mainstream source of capital for sustainable development. We drive quality and credibility through the development of science-based definitions and frameworks aligned with the Paris Agreement, including our Taxonomy, Standards and Certification Scheme. As financial market volatility increases and the world faces multiple intersecting Grises, our mission has never been more urgent. Climate Bonds equips market participants with trusted tools, data, and policy guidance to accelerale the flow of capital towards projects that deliver real climate impact. We must act now to reduce emissions and build the resilience of communities to withstand the worst effects of climate change. Influencing investment flows and shaping government financial policy are essential to achieving this. Climate Bonds aims to contribute to a sustainable, green, and resilient future where societies and ecosystems thrive. Our Theory of Change outlines how we work towards the global goal of limiting warming to 1.5°C. with people and the planet better able to adapl to climate impacts.
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES Strategy Catalyse the growth of a large and credible finance market that is aligned to 1.5 degrees and resilient economies. Inspire investors to support the transition to a green and resilient future. Influence govemments to tilt the playing field towards green and resilient investments. Optimise our impact by strengthening intemal strategies, structures, finanS and processes. Climate Bonds, Theory of Change Our Theory of Change outlines how we work towards the global goal of limiting warming to 1.5°C, with people and the planet better able to adapt to climate impacts. nnovative Inance inspires een Investlon Institutional investors. IsIneSS and dvil society licymakers e playing fi r 1.5 degree d resilient vestments pital flows wardszero rt>on and e511ient nvesknents Global warming limited to l.S°C and people and the planet are more resilient to climatt Ihanst thAt inrenti¥i5e
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES Climate Bonds has a multi-faceted approach that is divided into several key areas of focus: ysis vocacy aXonomS AavIS & Capac Uubiaing . iTrdepth8Iobalaruurtlry r¥Aar£haJ1ysl& . DElin1ObL&retn Ij0PMntb0k faiknredtrnlRpr0srdrn5adwarkth vPortldlorelElDa&1tsWithlaX0o[S andrVja5. Centbanks.0ndcF .ActNeereagementith pdwakertio Inlluonceclimatefhianceaynda . SharlrelnsltsthtQU8hfÈport4poOrytrA blo84awEl¥ll1rS. * p1knr0n w4nalstandr&s . Leadin8thoht0nenfiTre rtificatlori Climate Bonds activities Investor Engagement . riimateBords5tsndardforwrroJs IlrnèteallM(I. . 4-ertSfKatK?nol8vewbond4103n4 nddbtinArwhoDtk PffjvKJng andadWsoryserve TorJ15and in5iBhtstOhe invÈslorsdti FThtsty.11CertifiOOTrrorC1IrnatreIp. EnSuringetréiTtsnn1taIIte8rfty thro n8ttousstarIffd Con10•bal TretworkolfinèrKe We IS5uer5,andpuboTnakw5. arket Development . SupportIn8rnathrtgrknth Aalf1(. frKa.LinP4r¢rKa, andtEv. . C4nne¢tingstaPholdplSthrotrtrj1& conlerences.anddki . 8uildingpartneryhips¢odth*locat8rethi frnantÈinitiatfft 'Aarket Intelligence & Research matkettrxkir 0a&prS)nlOrthwfM¥pLthrrnI d investo Mwhhghtingin5tMPn¢vUnIbe$thro8h tswedrtp)rf> tote£
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES Achievements and Performance Review of activities in the year 2024 With a mission to mobilise global capital for climate action, Climate Bonds aims to catalyse, inspire and influence a global collaboration of institutional investors, governments, development banks and industry to shift caprtal toward Iow-carbon and resilient investments. Under this strategy, plus our drive to optimise intemal operations, we are pleased to report the key achievements of 2024. Catalyse On 24 October 2024, Climale Bonds delivered its lenth Climate Bonds CONNECT Global Conference in London, UK. This event convened over 400 leaders, innovators, and experts from across the globe to discuss the issues and opportunities presented by the transition to net-zero. From the launch of its new sector criteria for Agriculture. to the importance of pivoting financial flows to support adaptation and resilience. the conference explored Climate Bonds agenda to mobilise the debt markets lo facilitate climate action. Our South East Asia team held their second Connect event in Mumbai on 17 September 2024, with support from Amundi and AIIB, and reinforced Climate Bonds, position as a key convenor, driving dialogue and collaboration on climate risks and sustainable finance in India. Climate Bonds was appointed as a knowledge partner for the Brazilian presidency of the G20. This included a contribution to a report (presenled to the Sustainable Finance Working Group (SFWG) in Belém) emphasising the crucial role of policymakers in mobilising private finance to support a credible and just transrtion in the steel and cemenl sectors. The paper served as a key reference, informing and being cited in the 2024 G20 Suslainable Finance Report. Also in Latin America. Climate bonds successfully advanced the adoption of the Colombian Green Taxonomy (TVC). It hosted 38 training sessions that engaged 2,700 participants and developed 33 tailored tools to support key stakeholders throughout the implementation process. Subsequentty, COP334.7bn (approximately £62m) was mobilised towards green and sustainable projects. contributing to the greening of the financial system in Colombia.
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES Climate Bonds actively participated in events across Latin America. including the Biodiversity COP16 in Colombia where it CCrganised the Latin America and the Caribbean Finance and Biodiversity Day with partners such as UN, GFANZ. PRI. GRI, CPI and IDB. Climate Bonds also expanded its Stock Exchanges partnership in Latin America to len, committing these exchanges to promote and reinforce their sustainable markets. In India, Climate Bonds leads the Initiative on Climate Risk and Sustainable Finance (IICRSF), funded by CIFF, which supported critical policy inputs on climate risk assessment and transition planning for the Reseple Bank of India (RBI) and delivered targeted capacity- building to over 500 financial professionals across major banks. This deepened our work with financial institutions (such as SBI, Axis, Union Bank), focused on embedding climate risk and transition finance strategies into their policies. in line with RBI'S guidelines. We also delivered workshops for RBI supervisory personnel in collaboration with the RBI College of Supervisors (Cos), and the banking system in general via the India Banks Association (IBA), further integrating climate risk and transrtion finance considerations systemically into the banking sector. Climate Bonds collaborated with the Asian Development Bank to produce Accelerating Green Bonds for Municipalities in Southeast Asia, a report describing the necessary steps to stimulate growth in this market. Engagement work with key stakeholders in India led to Asia's first Certified Green Municipal Bond by Vadodara. In China, Climate Bonds has played a pivotal role in providing much-needed guidance and clarity to the market. It has contributed to the rapid expansion of the investable universe and established itself as a credible partner in the development of definitions, such as the Hong Kong Taxonomy for Sustainable Finance, and by shaping transition finan guidelines at both the national and provincial levels. In Europe, Climate Bonds published an in-depth guide to support European development finance institutions {DFls) accelerate the mobilisation of capital, providing pragmatic and evidence-based recommendations on how DFIS and policymakers can overcome the practical challenges faced. We engaged with 6 DFIS during drafting, receiving positive feedback from all of them, including from the European DFI association (EDFI). Climate Bonds organised its first Eu-wide policy discussion on transition finance and buildings, decarbonisation, hosted in the European Parliament by senior MEPS, with more
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES than 100 policy makers from across the EU attending. The event was addressed by the IMF, Commission. MEPS, banking sector and energy businesses. We also collaborated with the London School of Economics. Grantham Institute to publish a research paper on the use of bonds to ffinan a just transition. This research is key in broadening the general understanding of what bonds can achieve, particularly relevant in the context of a political backlash against green measures. Inspire Climate Bonds became a member of a third expert advisory group in Ihe EU, the Commission's Investors, Dialogue on Energy, feeding its views into the Commission's proposal for energy investment. Climate Bonds spoke at the Commission's annual sustainable energy event. The India team also hosted a high-level roundtable with 37 key investors and issuers and are initiating the first India Investor Supley on GSS+ finance wtth support from the Shakti Foundation. Climate Bonds forthcoming State of the Market (India) report will document a 186 % growth in cumulative GSS+ volume signalling strong market momentum in the region. Climate Bonds research team has created strong visibilty for Climate Bonds definitions through its Global State of the Market publications and continues to leverage this platform to maintain relevance. The Global State of the Market series includes an annual round up, and quarterly updates which include topical spotlights. For example, the H12024 report included a spotlight on France's leadership position in sustsinable finan to coincide with the Olympic Games. Climate Bonds Research has collaborated with Climate Bonds Technical Assistance on the assessment of Investor transition frameworks and is developing a framework to create a new business line in this area.
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES Here are just some of the other specific outcomes, inspired by Climate Bonds. work globally: Climate Bonds signed contracts to develop taxonomies in 15 countries: Australia, Brazil, Cambodia, Columbia, Fiji, Ghana, Hong Kong, Indonesia, New Zealand, Peru, the Philippines, Rwanda, Senegal, Singapore, and Thailand. Japan issued an $11 bn climate transition bond and Climate Bonds, the Hokkaido Government and the City of Sapporo issued a joint statement to promote Green Transformation. Also in Japan, Climate Bonds published an investor strategy which engaged many asset owners and asset managers, including: Nippon Life, GPIF, Asset Management One, Norinchukin, SMTAM, Manulife. Nikko am. Nissay am, Amundi, Fil investment, Mitsubishi UFJ, Tokyo Marine am, Schroders and MFS investment management. In addition, we established a partnership with the Asia Investor Group on Climate Change (AIGCC) for future collaborations. Climate Bonds and the International Fund for Agricultural Development (IFAD} launched a partnership to promote sustainable investment and rural transformation in developing nations. Climate Bonds, United Nations Environment Programme Finance Initiative (UNEP FI) and UN'S Principles for Responsible Investment (PRI) partnered up in a joint effort to support global taxonomies. Climate Bonds and the European Mortgage Federation, Energy Efficient Mortgages Initiative (EMF-ECBC) joined forces to certify bonds in line wtth the EU taxonomy. Climate bonds signed a Mou with the China Hydrogen Alliance (CHA). With the hydrogen related climate bonds standard, Climate Bonds and CHA will deepen cooperation in research and capacty building to support the financing and implementation of high-quality, low carbon hydrogen projects in China. In the USA, the San Francisco Public Utilities (SFPUC) issued $1 bn in Climate Bonds certified green bonds to upgrade resilience of stormwater systems. 10
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES Climate Bonds and the Institute for Global Environmental Strategies (IGES) jointly develop a strategy toolkit to promote transition finance. Climate Bonds is developing an adaptalion and resilience taxonomy with support from multilateral funders such as the Global Environment Facility. a collaboration announced at COP in Baku. Influence In Europe, Climate Bonds extended rts engagemenl at EU and national level, and rts contribution is increasingly sought after to inform debate. Climate Bonds research was referenced in the Building's Decarbonisation report on the Commission's energy portal. Climate Bonds has participated in the debate on the simplification of the EU sustainable finance framework (Omnibus). Climate Bonds analysts have obtained visibilty for their expertise on the subject through radio debates, podcasts, and an appearance on the EURONEWS channel. In India, Climate Bonds also contributed to sutFnalional readiness through the Sequoia Climate Foundation-funded project across five Indian states, developing policy roadmaps and catalysing dialogue on sulFsovereign green bonds and green budgeting. This culminated in a high-impact multi-stakeholder roundtable and the release of knowledge products guiding state-level green finan planning. Also in India, Climate Bonds regulatory engagement continued to support Ihe Ministry of Finance on the development of India's national climate finance taxonomy through technical committee contributions. We have expanded our engagement wtth regulators and financial institutions in India (IFSCA, SEBI, RBI, PFRDA, IRDAI) enabling domestic institutional capital flows through green investment mandates. As a strategic node in South Asia, the Climate Bonds programme engaged deeply with financial regulators, development finance institutions (DFIS), sukFnational governments, and investors to build the enabling environment for sustainable finance. During 2024, the Global Policy Team also set out Climate Bond's policy strategy, which better defines the points that differentiate Climate Bonds, unique work in the climate finance
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES space. They have also defined a process to support regional teams in planning and executing policy work and launched a Policy Network for all staff working on policy issues. Optimise We laid out a plan before the start of the year to derisk the organisation's finances and create a solid financial platform for activities going forward. The 4 constituents of the plan are: Grow independent and mission aligned commercial I repeat incomes, such as data services, network membership, certifications. capacity building and lechnical assistance. Extend our funding commitments, moving from isolated project funding arrangements to programmatic or 'lhemed' agreements covering multiple years. Expand the number of funding partners. reducing our dependence on a small number of large donors. Increase the flexibility of our cost base by developing wider partnership collaborations, OLrtsourcing services and increase contract flexibility- To achieve this, we had lo make organisational changes, which unfortunately led to several redundancies. We also made significant appointments adding lan Howard as Director of Climate Services at the end of 2023. to restruclure our commercial operations. More recently, in January 2025, Ina Hoxha was appointed Chief Investment OffIr (Deputy CEO) and Biathnaid Byrne was brought in as Director of Global Strategic Engagement. As well as financial restructuring and significant organisational changes, we have improved many other areas of the business, such as our data platform, our communications and marketing, resource management and financial reporting systems. We are now seeing the benefit of these actions as we progress through 2025. Key Performance Indicators (KPIS) In 2024, Climate Bonds Initiative made strong progress in advancing sustainable finance globally. Key achievemenls included continued growth in green bond issuance, expansion of its international footprint, and increasing alignment with its standards and methodologies. 12
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES Green bonds issuance, aligned with the Climate tM)nds standards, grew 9 % in 2024, and accounted for just over US$670 billion. New Standards l Taxonomies were created in 15 countries At the end of Dernber 2024, 82 % of thematic debt volume captured by Climate Bonds was aligned with ils database methodologies. Climate Bonds Global Slate of the Market 2023 report was downloaded from the Climate Bonds website 5.000 times. The number of network members fell from 95 at the end of 2023 10 87 at the end of 2024. as we restructured the product and focused on higher value for clients. Average income per member increased by 9 % and overall Partnerships income remained at £1.23m Climate Bonds Iniliative continues to increase its geographical reach. At the end of the year we had staff based in 25 countries and were actively managing projects across all 5 continents. Income growth of 8% achieved. Financial review The Balance Sheet is shown on page 25 of this document, with further analysis shown in notes 12-21 on pages 2742. For the year ended 31 December 2024. the Charity had income of £9.5m (2023.. £8.8m) and incurred expenditure of £10.2m (2023: £9.4m). Climate Bonds continued to grow significantly in 2024, increasing our income by 8 %. We worked on 79 projects across Latin America, India. China, Europe. Australia and South East Asia. Climate Bonds unrestricted funds at the end of 2024 was £0.9m (2023: £1.5m). Net assets of the Charity at the year-end amounted to the same £0.9m (2022: £1.6m). 2024 was a challenging year financially for Climate Bonds, having to readjust the organisation and our processes to accommodate 6 years of growth totalling nearly 400 % , 13
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES greater regulatory and compliance requirements globally. and the end of some favourable grant arrangements with our largest funding partners. Action was taken to minimise the impacl of these changes without compromising our mission,. to de-risk our finances, improve the reliability of our income streams and reduce our cost base. In the second half of the year and into 2025. with the help of our funding partners, we have seen the very positive impact of these changes, and we are now well on track to restore reserves to the target set by the Trustees. Future Plans A specific target for 2025 is to develop and enhan our toolkit to address adaptation and resilience. Going forward, Ina Hoxha is leading a major strategic exercise, with the support of our key funders and a top strategy consultant, to develop our programmes to ensure we deliver optimal impact across all that Climate Bonds works and engages on. We will define the macro landscape, understand the pain points and needs of our customers and the wider market, and identify priorities where Climate Bonds can have greatest impact. We will then improve the strategies to best deliver in these areas and establish the organisation, workplans and timelines to implement accordingly. Public Benefit Statement The Charity has regard to the guidan on public benefit published by the Charity Commission. Climate change is an enormous worldwide challenge that will affect nations, communities and societies. Addressing that challenge requires huge levels of financing immediately, as well as in the near to medium future. Climate and green bonds have the potential to make a major contribution to that financing. For the climate bonds market to grow, investments need to be underpinned by confidence in the green credentials of bonds. The Charity manages 14
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES the Climate Bonds Standards that play a vital role in ensuring that there is confidence and credibilrty in these investments. Details of activities in furtherance of public benefit are set out in this report. Principal Risks and Uncertainties The Trustees have assessed the major risks that the Charty faces in relation to its operations and finances and are satisfied that the Charity is taking the action necessary to mitigate its exposure to these risks. A risk assessment register is being maintained and updated on a regular basis. The main risks and uncertainties facing the Charity relate to: Financial stability: Ensuring that the Charity's sources of income continue in the future requires maintaining a range of income streams, maintaining and extending good relationships with financial supporters, sound financial governance, and continuing to provide guidan and encouragement that is respected and wel received by the inlemational financial markets and governmental regulators. Lack of engagement from potential bond issuers: If bond issuers do not recognise the value of issuing green bonds the charity's overall objective to stimulate green growth is diminished. Lack of engagement from other financial market stakeholders such as investors, underwriting banks and domesticlinternational development banks. Lack of participation by policymakers and regulators because of disinterest in engaging with our outputs and advocacy. This could put the Climate Bonds Initiative's leading international standing at risk. Reserves Policy Climate Bonds aims to maintain reserves above a minimum level deemed appropriate by the Board of Trustees. The reserves target will be reviewed quarterty and reported to the Trustees at each Board meeting. The target may be adjusted based on the organization's 15
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES review and will be influenced by various factors, including: Economic conditions Fluctuations in income and expenditure Anticipated future commitments Potential risks and uncertainties The strategic plan and organizational priorities Calculation of Minimum Reserves Targel: The Minimum Reserves Target for Climate Bonds is reviewed at least every year by the Finance Steering Committee and approved by the Board of Trustees. The minimum resenie target will be based on a calculation of the emergency wind-up costs of Climate Bonds in the unlikely event of a major, adverse and irrecoverable failure. The Board will also review other reserve calculations lo ensure that the minimum reserve tsrget is not significantly out of line with these altemative minimum reserve calculations. These include: To maintain cuent levels of activity in the event of a major disruption to Income Aggregate net cosl of risks based on impact and probability of negative events Appropriate number of months unrestricled expenditure The minimum reserve target at the end of 2024 was assessed to be £600,000. The actual reserves were £917,029. The Trustees detemiined that reserves, although above the minimum, were too low, particularly as Climate Bonds had grown significantly, and therefore set a target reserve level of £1.5m by the end of 2025. Structure, governance and management Climate Bonds Initiative is a company limited by guarantee and a registered charity. The Charity's memorandum and articles of association are its primary governing documents. The Trustees of Climate Bonds Initiative are also the directors of the charitable company for the purposes of company law. Climate Bonds Inrtiative has a wholly owned subsidiary, Climate Bonds Services Limited, which is included in the consolidated financial statements. We have also established two wholly owned overseas subsidiaries: CBI Europe ABSL and Low Carbon World (Shanghai) Business Consulting Corporation, Ltd, designed to accommodate 16
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES our activities in those regions, achieving alignment with funding partners and to meet local compliance requirements. Details of the Trustees who sepled during the year are included in the Reference and Administrative Details on page 2. Trustees Trustees are elected by recommendation from existing charity trustees and by confimiation by the Chair of the Board. An appropriate vetting process is overseen by the Chair. Climate Bonds appoints and recrurts new truslees through its wide network of supporters, bearing in mind the skills required. The overall performance of the Charity is the responsibility of the Board, but day-ttrday decision-making is delegated to the Chief Executive Offir, Chief Operations OffIr and Chief Investment Officer (Deputy CEO), supported by the Senior Leadership Team. Key strategic direction and major issues of policies and procedures are sel by the Board for implementation by the CEO, COO and CIO. The induction and training of trustees is handled through a series of individual meetings with key personnel. The Board sets the compensation of the CEO and provides guidance for setting compensation and remuneration for other senior staff. The remuneration of key management personnel is determined by the Board of Trustees, which review market benchmarks and comparable charities within the sector. Annual pay awards are aligned with performan assessments and sector-wide trends. Key management personnel The key management personnel of the group during 2024 consist of the Trustees, the Chief Executive Officer and the Chief Operations Officer: Chief Executive Officer: Sean Kidney Chief Operations Officer: Nicola Adams-Hendry 17
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES In addition. the following individuals served on the Senior Leadership Team during the year.. Director of Climate Services.. lan Howard Director of Environmental Impact & Thought Leadership: Anna Creed Director of Finance: Duncan Perritt Director of People & Culture: Helen Ferguson Director of Strategic Communications & Marketing: Selena Chapman and Penny Cross Director of Strategic Programmes: Ujala Qadir Director of Technical Development: Bridget Boulle (to 2910212024) Director of Technical Development: Caroline Harrison (from 0110312024) Principal Technical Advisor: Bridget Boulle (From 0110312024) General Counsel: Rosamund Barker On 2710112025 Ina Hoxha was appointed to the position of Chief Investment Officer (Deputy CEO) and on 1310112025 Blathnaid Byrne was brought in as Director of Global Strategic Engagement Related parties See note 20. Trustees, responsibilities in relation to the financial statements The Trustees (who are also Directors of the company for the purposes of company law) are responsible for preparing the Trustees, Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires Ihe Trustees to prepare Financial Statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of reSoUrs. including 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 consistentty., Observe the methods and principles in the Charities SORP {FRS102)" Make judgements and estimates that are reasonable and prudent" 18
CLIMATE BONDS INITIATIVE REPORT OF THE TRUSTEES State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the Financial Statements., Prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The Trustees are responsible for keeping adequate accounting records that disclose, with reasonable accuracy at any time, the financial position of the charitable company and enable them to ensure that the Financial Statements compty with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for Ihe prevention and detection of fraud and other irregularities. Disclosure of Infomiation to the Auditors: We, the Directors of the charitable company who held office at the date of approval of these Financial Statements as set out above. each confirm, so far as we are aware, that: there is no relevant audit information of which the charitable company's auditors are unaware., and we have taken all steps that we ought to have taken as Directors to make ourselves aware of any relevant audrt information and to establish that Ihe charitable company's auditors are aware of that infomiation. Auditor PKF Littlejohn LLP was appointed as auditor during 2020 and have indicated their willingness to continue in office. This report is prepared in accordan with the small companies, regime under the Companies Act 2006. Approval This report was approved by the Board on 8 August 2025 and signed on its behalf. ori5 Doris Honold IAug 11. 2025. 9."293ml Doris Honold, Trustee 19
CLIMATE BONDS INITIATIVE REPORT OF THE INDEPENDENT AUDITOR YEAR ENDED 31 DECEMBER 2024 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF CLIMATE BONDS INITIATIVE Opinion We have audited the financial statements of Climate Bonds Initiative (the 'parent charitable company'l and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Financial Activities. the Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion. the financial statements- give a true and fair view of the state of the group's and the parent charitable company's affairs as at 31 December 2024, and ofthe group's incoming resources and application of resources, including its income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities A¢t2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) {ISAs (UK)} and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit ofthe financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard. and we have fvlfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concem In auditing the financial statements, we have concluded that the trustees, use of the going cOnM basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have 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 company's ability to continue as a going concem for a period of at least e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concem are described in the relevant sections of this report. Other inforniation The other information comprises the infonatIon included in the report of the trustees, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the report of the trustees. Our opinion on the financial ststements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other infomiation is materially inconsistent wrth the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent matenal misstatements. we are required to determine whether Ihis gives rise to a material misststement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 20
CLIMATE BONDS INITIATIVE REPORT OF THE INDEPENDENT AUDITOR YEAR ENDED 31 DECEMBER 2024 Opinions on other matters prescribed by the Companies Act 2006 In our opinion. based on the work undertaken in the course of the audit= the infomiation given in the trustees. report, which includes the directors, report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements- and the directors, report included within the trustees, report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light ofthe knOedge and understanding of the group and parent charitable company and theirenvironment obtained in the course of the audit. we have not identified material misstatements in the directors, report included within the trustees, annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion= adequate and sufficient accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us- or the parent charitable company's financial statements are not in agreement with the accounting records and returns- or certain disclosures of trustees. remuneration specified by law are not made; or we have not received all the infomiation and explanations we require for our audit- or the trustees were not entitled to prepare the financial ststements in accordance with the small companies, regime and take advantage of the small companies, exemptions in preparing the directors, report and from the requirement to prepare a strategic report. Responsibilities of trustees As explained more fully in the trustees, responsibilities statement, the trustees (who are also the directors of the charitable company forthe purposes of company law} are responsible forthe preparation ofthe group and parent charitable company financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees detemiine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the group and parent charitable company financial statements, the trustees are responsible for assessing the group and parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concem and using the going concem basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations. or have no realistic alternative but to do so. 21
CLIMATE BONDS INITIATIVE REPORT OF THE INDEPENDENT AUDITOR YEAR ENDED 31 DECEMBER 2024 Auditor's responsibilities for the audit of the financial statements We have been appointed auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud. are InStanS of nonwcompliance laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The exient to which our procedures are capable of detecting irregularities, including fraud is detailed below.. We obtained an understanding of the group and parent charitable company and the sectors in which they operate to identfy laws and regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard through discussions with management. industry research, application of cumulative audit knowledge and experience ofthe sector. We determined the principal laws and regulations relevant to the group and parent charitable company in this regard to be those arising from Companies Act 2006. Charities Act 2011, Charities (Accounts and Reports) Regulations 2008. employee and tax legislation. We designed our audit prOdureS to ensure the audit team considered whether there were any indications of non-complian by the group and parent charitable company with those laws and regulations. These procedures included. but were not limited to.. enquiries of management., and review of minutes We also identified the risks of material misstatement of the financial statements due to fraud. We considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management override of controls, that provisions for doubtful debts and other liabilities as well as accruals and deferrals could be subject to management bias. We have reviewed the calculations for provisions and Ihe assumptions involved. We also reviewed the application of cut-off through accrued and deferred income. No issues were identified. As in all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures which included but were not limited to.. the testing of journals., reviewing accounting estimates for evidence of bias,. and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. No issues were identified in our review. Because of the inherent limitations of an audit, there is a risk that we wll not detect all irregularities. including those leading to a material misstatement in the financial ststements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment. forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. www.frc.or .uklauditorsres onsibilities. This description forms part of our auditor's report. 22
CLIMATE BONDS INITIATIVE REPORT OF THE INDEPENDENT AUDITOR YEAR ENDED 31 DECEMBER 2024 Use of our report This report is made solely to the charitable company's members, as a body, in accordance wth Chapter 3 of Part 16 of the Companies Act 2006 and to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's members and trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone, other than the charitable company and the chantable company's as a body and the charitable company's trustees as a body, for our audit work, forthis report, or for the opinions we have formed. Alastair Duke (Senior Statutory Auditor) For and on behalf of PKF Littlejohn LLP ststutory Auditor 15 Wesfferry Circus Canary Vvharf London E14 4HD Date 3 September 2025 23
CLIMATE BONDS INITIATIVE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES {incorporating an income and expenditure account YEAR ENDED 31 DECEMBER 2024 Unrestricted Restricted Funds Funds Total 2024 Total 2023 Notes Income from: Charitable activities Bank interest Other trading income 4,905,120 5.412 4,595,026 9,500,146 5,412 8,667,710 4,827 128.207 Total Income 4,910,532 4,595,026 9,505,558 8,800,744 Expenditure on: Charitable activities Trading activities 4.847,569 672.850 4,715,678 9,563,247 672.850 8,923,129 452.582 Total expenditure 5,520,419 4,715,678 10,236,097 9,375,711 Net loss (609,887) (120,652) (730,539) (574,967) Transfers between funds Net Movement in Funds (609.887) (120,652) (730,539) (574,967) Reconciliation of Funds." Total funds brought forward 1,526,916 120,652 1,647,568 2,222,535 Total funds carried forward 917.029 917.029 1.647.568 All income and expenditure derive from continuing activities. The statement of financial activities indudes all gains and losses recognised during the year. The notes on page 27 to 42 form part of these Financial Statements. 24
CLIMATE BONDS INITIATIVE Company number: 07455730 BALANCE SHEETS AT 31 DECEMBER 2024 Consolidated Charity Notes 2024 2023 2024 2023 Fixed Assets Investments Intangible fixed assets Tangible fixed assets 12 13 14 200,148 201,215 58,395 100,112 77,101 59,603 201,215 59,630 77,101 61,296 260,845 138,397 459,758 236,816 Current Assets Debtors Cash 15 1.710.669 3,809,097 798.483 4,804,909 2.602,689 3,657,119 1.367,034 4,520,965 5.519.766 5.603,392 6,259,808 5,887,999 Creditors: amounts falling due viithin one year 16 (4.863.582) (4,094,221 } 14,824,863) (4,075,367) Net Current Assets 656,184 1,509,171 1,434,945 1,812,633 Net Assets 917,029 1,647,568 1,894,703 2,049,449 Charity Funds 17 Unrestricted funds Restricted funds 917,029 1,526,916 120,652 1,894,703 1,928,797 120,652 Total Funds 917,029 1,647,568 1,894,703 2,049,449 The Charity has taken exemption from presenting its unconsolidated profrt and loss account under section 408 of Companies Act 2006. The unconsolidated deficrt for the year ended 31 December 2024 is £154,746 (2023.. £249,174). The financial statements have been prepared in accordance wth the provisions applicable to companies subject to the small companies regime. The financial statements were approved and authorised for issue by the Board of Trustees on 8 August 2025 and were signed on its behalf by.. Ori5 Doris Honold (Aug 11, 2025, 9."29aml Doris Honold Trustee The notes on pages 27 to 42 form part of these Financial Statements. 25
CLIMATE BONDS INITIATIVE CONSOLIDATED STATEMENT OF CASH FLOWS AT 31 DECEMBER 2024 Notes 2024 2023 Net cash flow provided by operating activities 19 (839,441) (883,371) Cash flow from investing activities Payments to acquire tangible fixed assets Payments to acquire intangible fixed assets Bank interest (17,980) {143,803) 5,412 (34,410) (43,449) 4,827 Net cash flow used in investing activities (156,371) {73,032) Change in cash and cash equivalents in the year (995,812) (956,403) Cash and cash equivalents at 1 January 4,804,909 5,761,312 Cash and cash equivalents at 31 December 3.809,097 4,804,909 The notes on pages 27 to 42 form part of these Financial Statements. 26
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2024 1. Summary of significant accounting policies The significant accounting policies applied in the preparation of these financial statements are set out below. The accounting policies have been applied consistently throughout the year and in the preceding year, unless otherwise stated. General Infomiation Climate Bonds Initiative is a company limited by guarantee and is registered with the Charity Commission (charity number 1154413) and the Registrar of Companies (company number 074557301 in England and Wales. In the event of the Charrty being wound up. the liability in respect of the guarantee is limited £1 per member of the Charity. The address of the registered office is shown under Charity Reference and Administrative Details. Basis of Preparation of Accounts The charity constitutes a public benefft entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102). the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019. The financial statements consolidate Climate Bonds Initiative and its wholly owned subsidiaries, Climate Bonds Services Limited, Climate Bonds Initiative Low Carbon Wodd {Shanghai} Business Consulting Co.. Ltd. and Climate Bonds Initiative (Europe) ASBL, registered in Belgium. The financial statements are prepared in sterling which is the fvnctional currency of the charity- Going Concern The financial ststements have been prepared on a going concern basis as the trustees consider that no material uncertainties exist conceming the charty's abilty to operate for the foreseeable future. The trustees have considered the charity's ability to meet its liabiltties as they arise over the foreseeable future to July 2026. being 12 months from the date of approval of these financial statements. Accordingly, financial forecasts and cash fl¢)w projections have been prepared for this period. The trustees recognise that in a period of growth there are some uncertainties that exist in the assumptions underlying these forecasts. principally concerning income generation and have identified actions to be taken as appropriate risk mitigation should these assumptions and forecasts not be adequately achieved. Income Recognition All incoming resources are included in the Statement of Financial Activities {SoFA) when the charity is legally entitled to the income, after any perfomiance conditions have been met, when the amount can be measured reliably and when it is probable that the income will be received. For donations to be recognised the Charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Charity and it is probable that they will be fulfilled. The Charity received government and other grants in respect of furthering its charitable objectives. Income from government and other grants are recognised at fair value when the Charity has entitlement after any performance conditions have been met. it is probable that the income wll be received, and the amounl can be measured reliably. If entitlement is not met then these amounts are deferred. Verification fees, certification fees. reports income and events income are recognised in full when the charity is entitled to the income. 27
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2024 1. Accounting Policies {continued) Annual partner subscriptions are recognised over the 12-month period to which they relate, with the balance at the year-end included as deferred income. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity., this is normally upon notification of the interest paid or payable by the bank. On receipt, donated professional services and donated facilities are recognised as gffts in kind on the basis ofthe 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 benefft on the open market., a corresponding amount IS then recognised in expenditure in the period of receipt. Expenditure Recognition All expenditure is accounted for on an accruals basis and has been classified under the headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, tt is probable that the settlement will be required, and the amount of the obligation can be measured reliably. Redundancy and tennination payments are recognised immediately upon becoming a constructive obligation. Expenditure is categorised under the following headings.. Costs of raising funds includes are those costs inCued in attracting donations, and those incurred in trading activities that raise funds.. and Expendf(ure on charitsble activities includes expenditure associated with the main objectives of the charity and include both direct costs and support costs relating to these activities. Support costs allocation Support costs are those that assist the work of the charity but do not direclly represent charitable activities 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 expenditure on the objects of the charity. Where support costs cannot be directly attributed to particular headings they have been allocated to expenditure on charitable activities on a basis consistent with use of the resources. Govemance costs are those incurred in connection with the running of the Charity and compliance with constitutional and statutory requirements. The analysis of these costs is included in notes 7 and 8. Intangible fixed assets Intangible fixed assets are assets that do not have physical substance but are identifiable and are controlled by the charity through custody or legal rights. Intangible fixed assets are recorded at historical cost and amortised on a straight-line basis over 4-5 years. Development costs that are direcuy attributable to the design and testing of identifiable and unique sofvare products controlled by the Charity are recognised as intangible assets when the following criteria are met.. It is technically feasible to complete the software so that it will be available for use. Management intends to complete the software and use or sell it. There is an ability to use or sell the software. It can be demonstrated how the software will generate probable future economic benefits. Adequate technical, financial and other resources to complete the development and to use or sell the software are available. The expenditure attributable to the software during its development can be reliably measured. 28
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2024 1. Accounting Policies {continued) Other development expenditures that do not meet these criteria are recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period Tangible Fixed Assets and Depreciation Tangible fixed assets are stated at cost or net realisable value after depreciation. The cost of minor additions or those costing less than £500 are not capitalised. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on a straight-line basis: Plant and machinery Office equipment 200 200 Debtors and creditors 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 amount can be measured reliably, and it is probable that the income will be received. Creditors are recognised when the Charty has a present or constructive obligation resulting from a past event and the settlement is expected to resutt in an ouffiow of economic benefits. Foreign Currency The consolidated financial statements are presented in UK pounds sterling {£'s}, the functional currency of the charity- For project planning purposes, the charity uses a standard exchange rate for the year. All transactions denominated in foreign currencies are translated at the spot rate, the actual rate achieved at the time of the transaction. All balance sheet balances are translated at the prevailing year-end rate. Any gains or losses resulting from exchange rates are recognised through the SOFA. Funds and Fund Accounting Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objective of the charity and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance wth specific restrictions imposed by donors orwhich have been raised by the Charity for particular purposes. The cost of raising and administering such funds are charged against the specrfic fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Employee Benefits The charity operates a defined contribution plan for the benefft of its employees. Contributions are expensed as they become payable. Tax The charity is an exempt charity wthin the meaning of schedule 3 ofthe Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010. It therefore meets the definition of a charitable company for UK corporation tax purposes. 29
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2024 1. Accounting Policies Icontinued) Financial instruments The Charity only holds basic financial instruments. The financial assets and financial liabilities of the Charity are as follows= Debtors trade and other debtors (including accrued income) are basic financial instruments and are debt instruments measured at transaction cost. Prepayments are not financial instruments. Cash at bank- is classified as a basic financial instrument and is measured at face value. Liabilities - trade creditors, accruals and other creditors are classified as financial instruments, and are measured at transaction cost. Taxation and social security are not included in the financial instruments disclosure. Deferred income is not deemed to be a financial liability as the cash settlement has already taken place and there is simply an obligation to deliver charitable ServIS rather than cash or another financial instrument. Critical accounting estimates and areas of judgement The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements= Allocation of support costs Depreciation rates for tangible fixed assets 750A capitalisation ofgraphic design {orfront-end development) of website, and subsequent amortisation. Capitalisation of software in development Intercompany recharge 30
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2024 2. Income from Charitable Activities Unrestricted Restricted Funds Funds Total 2024 Total 2023 Projects, advocacy and guidance 4.905.120 4.595.026 9.500,146 8,667,710 3. Bank interest Unrestricted Restricted Funds Funds Totsl 2024 Total 2023 Bank interest 5,412 5,412 4,827 4. Other trading income Unrestricted Restricted Funds Funds Total 2024 Total 2023 Trading 128.207 5. Expenditure on Charitable Activities Direct Costs Support Costs Total 2024 Total 2023 Projects, advocacy and guidance 8,519,656 1,043.591 9,563,247 8,923,129 Totals 2023 8.048,005 875,124 8,923,129 6. Direct costs Unrestricted Funds Restricted Funds Total 2024 Total 2023 Consultancy costs Other direct costs Travel and subsistence Staff costs Reallocated costs 3.545.043 7.160 189,866 989.651 (704,068) 308,031 777,421 102,737 2.599,747 704,068 3,853,074 3,548,562 784,581 773,363 292,603 268,714 3.589,398 3.457.366 Total 4.027.652 4.492,004 8,519,656 8,048,005 31
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2024 7. Support costs Unrestricted Funds Restricted Funds Total 2024 Total 2023 Conference event costs Establishment and general administrakn'on Support staff costs Governance costs Depreciation Amortisation Foreign exchange loss 91,164 63,268 154,432 36,887 588.147 5,310 30,206 19,188 19,689 66.213 155,344 743,491 5,310 32,506 19,188 19,689 68,975 550.035 7,644 24,366 16.595 10,724 228.873 2,300 2.762 Totsl 819,917 223,674 1,043,591 875,124 8. Governance costs Total 2024 Total 2023 Legal and professional Auditor's remuneration audit other servi$ 17,506 4,771 15.000 14.500 5,095 32,506 24,366 9. Net income for the year The net income is stated after charging.. Total 2024 Total 2023 Depreciation of tangible fixed assets Amortisation of intangible fixed assets Net losses on foreign exchange 19,646 19,689 68,975 16,595 10,724 228,873 10. Staff costs and employee benefits The total staff costs and employee beneffts were as follows.. Total 2024 Total 2023 Wages and salaries Social security Defined contribution pension costs Redundancy costs 3,490,813 3,076,689 344.524 320,384 76,117 69,092 141.899 4,053,353 3,466,165 32
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2024 10. Staff costs and employee benefits (continued) The number of employees who received total employee benefits (excluding employer pension costs) of more than £60,000 is as follows.. Number of employees 2024 2023 £60,001 to £70,000 £70,001 to £80,000 £80,001 to £90,000 £90,001 to £100,000 £100,001 to £110.000 £110,001 to £120,000 £120,001 to £130,000 During the year. the charity paid £19.372 (2023.. £21.133) under a defined contribution pension scheme on behalf of staff. Total redundancy I temiination cash payments of £141,899 (2023= £nil) were made to 13 individuals (2023.. none). No amounts were outstanding at year end. The average monthly number of employees during the year was as follows: Number of employees 2024 2023 Staff 57 56 11. Trustees, and key management personnel remuneration and expenses No trustees12023 one) received any remuneration or reimbursement of travel expenses from the charity during the year (2023 - £1,824). The trustees consider the board of trustees, the Chief Executive Officer and the Chief Operating Officer as comprising the key management personnel ofthe charity in charge ofdirecting and controlling the charity and running and operating the charty on a day-t(Fday basis. The total amount of employee benefits received by key management personnel dunng the year was £226.875 (2023.. £254,829). 12. Investments (Charity) Cost 2024 2023 Investment in Climate Bond servIs Limited Investment in Climate Bonds Initiative Low Carbon World (Shanghail Business Consulting Co.. Ltd 100 100 200.048 100,012 200.148 100,112 Climate Bonds Initiative has 1000kn control of Climate Bond Services Limited (Company registration number 11715956), a company registered by share capital and whose registered office is First Floor, Queen Street Place, London, EC4R 1BE. The subsidiary year-end is also 31 December 2024. The company was incorporated on 6 December2018. The majoractivities ofthe company comprised the hosting ofthe Climate Bonds Initiative annual conference. fOrICh commercial sponsorship was obtained. The income for Climate Bonds Services does not include individual attendee ticketed income, which is included in Climate Bonds Initiative. The summary financial performance of the subsidiary for the year ended 31 December 2024 is as follows. 33
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2024 12. Investments (Charity) (continued) 2024 2023 Tumover Cost of sales Administrative expenses 128,194 (116,065} {73,324) (6.319) Operating loss Gift aid to parent (6,319) (61,195) Result for the period (6,319) (61,195) Current assets Current liabilities 29,364 (101,047) 288,677 (292,851) Net liabilities (71,683) (4,174) Climate Bonds Initiative has 1 OOOA control of Climate Bonds Initiative (Europe) ASBL (Company registration number 0730.588.756), a company registered by share capital and whose registered office is Chaussée de Louvain, 233. 1410 Waterloo, Belgium. The subsidiary year-end is also 31 December 2024. The company was incorporated on 6 December 2018. The company is intended to become a hub for Climate Bonds Initiative's activities in mainland Europe, especially in a post-Brexit era. The summary financial performance of the subsidiary for the period ended 31 December 2024 is as follows. 2024 2023 Tumover Administrative expenses (623,627) 1232,686) Result for the year 1623,627> 1232,6861 Fixed assets Current assets Current liabilities 1,235 22,542 (905,976) 1,693 1,809 (262,082) Net liabilities (882,199) (258,580) Climate Bonds Initiative established a subsidiary in China. Climate Bonds Initiative Low Carbon World (Shanghail Business Consulting Co., Ltd [Unified Social Credit Code.. 91310115MA1K4MYUOO]. Climate Bonds Initiative retains 100 % control of the company. Ose registered address is.. No. 14, Lane 1502 Luoshan Road China (Shanghai) Free Trade Pilot Zone. The resulls for the year to 31 December 2024 were.. 2024 2023 Tumover Administrative expenses 20 (42,882) 50 {31,191) Result for the year (42.862) {31,141) Current assets Current liabilities 108,974 (32,064) 24,364 (5,078) Net assets 76,910 19,286 34
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2024 12. Investments (Charity) (continued) Share capital Retained earnings 200,048 (123,138) 100,012 (80,276) Reserves 76,910 19,286 13. Intangible Fixed Assets (Group and Charity) Cost Website and database Asset under construction Total At beginning of year Additions 246.166 19.971 246,166 143,803 123.832 At end of year 266,137 123,832 389,969 Amortisation At beginning of year Charge for the year 169,065 19,689 169,065 19,689 At end of year 188,754 188,754 Net Book Value At 31 December 2024 77,383 123,832 201,215 At 31 December 2023 77,101 77,101 14. Tangible Fixed Assets (Group) Plant & Office & IT machine equipment C¢)st Totsl At beginning of year Additions Disposals 424 137,663 17,980 (36,116) 138,087 17,980 136,5401 (424) At end of year Depreciation At beginnin of year Charge for t e year Disposals 119,527 119,527 424 76,367 19,646 (36,116) 76,791 19,646 136,5401 (424) At end of year Net Book Value 59.897 59,897 At 31 December 2024 59,630 59,630 At 31 December 2023 61,296 61,296 35
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2024 14. Tangible Fixed Assets (Charity) Plant & Office & IT machine equipment C¢)st Total At beginning of year Additions Disposals 424 135,059 17,980 (36,116) 135,483 17,980 136,5401 (424) At end of year Depreciation At beginning of year Charge for the year Disposals 116,923 116,923 424 75.456 19,188 (36,116) 75,880 19,188 136,5401 (424) At end of year Net Book Value 58.528 58,528 At 31 December 2024 58,395 58,395 At 31 December 2023 59,603 59,603 15. Debtors Group Charity 2024 2024 2023 2023 Trade debtors Prepayments and accrued income Intercompany debtor Others 728,606 875,169 392,861 405,622 728,606 868,898 898,291 106,894 374.147 404,540 588,347 106,894 1,710,669 798,483 2,602,689 1,367,034 16. Creditors: Amounts Falling Due Within One Year Group Charity 2024 2024 2023 2023 Trade creditors Social security and other taxes Other creditors Accruals and deferred income" 303,664 62,296 6,274 4,491,348 159,834 66,229 142,730 3,725,428 287,839 137,279 64,927 81,190 6,274 142.729 4,465,823 3,714,169 4,863,582 4,094,221 4,824,863 4,075,367 'Deferred income: Brought forward at 1 January 2024 Incoming resources deferred during the year Amounts released from previous years 3,392,268 4,196,059 (3,392,268) Carried foNrfard at 31 December 2024 4,196,059 36
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2024 17. Fund reconciliation (consolidated) Current Year Balance as at 1.1.24 Balance as Transfers at 31.12.24 Income Expenditure UNDP Oak Foundation World Resources Institute (WRI) BEIS Agora Foundation ECF EU Taxonomy 2020 ECF EU Taxonomy 2021 ECF EU Taxonomy 2022 FSD Africa GIZ ASEAN Growald Foundation IPSF GIZ 2020 IPSF GIZ 2021-22 The Children's Investment Fund The Foreign Commonwealth and Development Office UK PACT China UNDRR Laudes Foundation 2021-23 New Venture Fund Tara Climate Limited Forsythia Foundation Scaling Up Finance for India's Green Transition ECF China Steel Transition Climate Arc 2023 LSE Just Transition UK Pact Colombia Taxonomy Brazil UNEP 2024 Herlin China LAC UNEP Biodiversity FrarneVrk 2023 ECF DFI 2023 Abatement of methane emissions in agriculture and energy sectors 438 (438) (41,066) (2,724) (12,918) (185) (1,597) 1,856 41.066 2,724 12,918 185 1,597 (1.856) (1) 71,969 1,491 5,238 110,161 (111.655) (71,969) (1,491) {139,809) (110,161) 111,655 1.136,929 (1,136,929) 94.675 (93,906) 134.571 (769) 8,286 499 4,704 10,626 (8,286) (499) (58,722) {864,577) (198,865) (1,432) 54,018 853.951 198,865 1,432 2,665 199,282 171,826 46.824 17,412 227,616 75,515 122,262 {201,947) {171,826) (46,824) (17,412) (227,616) (75,515) {122,262) 110,245 53.469 1.056,500 {110,245) (53,469) (1,056,500) Total restricted funds 120,652 4.595,026 (4,715.678) General Funds 1,526,916 4,910,532 (5,520,419) 917,029 Total unrestricted funds 1,526.916 4.910,532 (5,520,419) 917,029 Total funds 1.647.568 9.505,558 (10,236,097) 917,029 37
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2024 17. Fund reconciliation (consolidatedl (continued) Prior Year Balance as at 1.1.23 Balance as Transfers at 31.12.23 Income Expenditure UNDP G & B Moore Foundation Oak Foundation World Resources Institute (WRI) BEIS Agora Foundation ECF EU Taxonomy 2020 ECF EU Taxonomy 2021 ECF EU Taxonomy 2022 FSD Africa GIZ ASEAN Growald Foundation IPSF GIZ 2020 IPSF GIZ 2021-22 The Children's Investment Fund The Foreign Commonwealth and Development Office- India 2021 The Foreign Commonwealth and Development Office UK PACT China UK PACT India UNDRR 438 {327,619) {126,893) 438 1,033 1,959 2,724 11,356 185 1.597 (1,856) (1) 29,999 1.491 326.585 124,934 2,724 12,918 185 1,597 (1,856) (1) 71,969 1,491 5,238 110,161 (111,655) 46,998 (45,437) 67,207 (25,237) 235,277 (230,038) 110,161 (111.655) 2,164,483 (2,164,483) 190.275 (191,044) (769) 8.056 181.174 {180,946) (3) (42,692) 8,286 1,029 42.161 499 Laudes Foundation 2021-23 336,485 (331,781) 4,704 New Venture Fund Tara Climate Limited Forsythia Foundation European Climate Foundation Scaling Up Finance for India's Green Transition 12,964 6,586 645,123 156,703 61,785 83,842 {647,462) (163,289) (60,353) (83,842) 10,626 1,432 460.879 {458,214) 2,665 Total restricted funds 75,632 5,123,911 (5,078,891) 120,652 General Funds 2,146,903 3,676,833 (4,296,820) 1,526,916 Total unrestricted funds 2.146.903 3.676,833 (4,296,820) 1,526,916 Total funds 2,222.535 8.800,744 (9,375,710) 1.647,568 38
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2024 Purposes of Restricted Funds: UNDP Support for Climate Bonds Initiative to participate in Working Group "Developing Taxonomy for Indian Government. G & B Moore Foundation Driving the Development of Green Agri Bonds in Brazil and China. Oak Foundation The Oak Foundation granted Climate Bonds a grant to support the core work of the organisation in China World Resources Institute (WRI) Support to WRI project entitled "Transfomiational Project Pipelines for NDC Implementation" Signed in 2019 and extended to Sept 2022. BEIS The Secretary of State for Business. Energy and Industrial Strategy has funded this project for Capacity building for transition finance market and dissemination materials, Implementation guide development for the China and UK Green Taxonomy Insert Agora Foundation SEFEP GmbH Agora Energiewende funded Climate Bonds Initiative wth a grant for working in the context of "CRUX Policy Centre Powerf, with the objective of enabling the energy transition in South Africa by building capacity for green bonds (June 2020 - January 20211 with £70,000. SEFEP (Smart Energy for Europe Platform) received the grant funding from the Aspen Global Change Institute IAGCI). European Climate Foundation: ECF EU Taxonomy 2020 The European Climate Foundation fvnded this project to step up engagement and capacity building activities with key stakeholders, such as Member States, around EU green taxonomy developments and future plans. Also, it continues Climate Bonds Initiative's technical engagement with EU on next iteration of taxonomy. ECF EU Taxonomy 2021 EU Sustainable Finance Taxonomy- Ensuring alignment to 1.5 degree pathways and supporting the growth of a Taxonomy-aligned green bond markets in key Member States in Europe. ECF EU Taxonomy 2022 EU Sustainable Finance Taxonomy-to supportthe growth of a 1.5 degree aligned green bonds market across Europe (Phase 3). ECF China Steel ECF-PIE is supporting the work of Climate Bonds to aclerate steel decarbonisation in China FSD Africa The Financial Sector Deepening Africa IFSDA) has fvnded this project to Climate Bonds Initiative to act as the lead consultant in the Nigerian Green Bonds Programme. Climate Bonds Initiative has provided support for Green Bond Issuance, which inVoeS issuance of guidelines and listing requirements for green bonds, developing a pool of Nigeria-based LInced verifiers, developing a pipeline of green investments, developing an international collaboration, and developing a debt capital market reform agenda to support green bonds under the Debt Capital Markets Development. (April 2018- June 2021) with £110,320. GIZ ASEAN GIZ (Deutsche Gesellschaft fur Internationale Zusammenarbeit GmbHI fvnded this project to assess the"EU Sustsinable Finance Action Plan to Finance a Green Corona Recovery. in the ASEAN Region (Dec 2020 - Aug 2021) with £447,147. Growald Foundation The Growald Foundation has funded this project to deliver-. lil Green infrastructure investment opportunities report and investor forum for GBA, (li) Market education and trainings to relevant stakeholders in GBA. on green bonds, {iii) Guidelines on green transition finance for China wth a focus on GuangdonglGBA {July 2020 October 2021) with $100,000. I" GBA is the Greater Bay Aa of China comprising HoThJ KotwJ and 1ghbOunng Chinese oliesl 39
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2024 IPSF GIZ GIZ {Deutsche Gesellschaft ft)r Intemationale Zusammenart)eit GmbHI has funded this projectto support the Intemational Platform on Sustainable Finance (IPSF), an initiative of the Eu's DG FISMA {June 2020 - April 2021) with É175,716. IPSF GIZ 2021122 IPSF Technical support Phase 2 (International Platform for Sustainable Finance). The Children's Investment Fund Accelerated industrial decarbonisation in Europe through dedicated transition financing to industrial companies The Foreign Commonwealth and Development Office FCO (UK Foreign and Commonweatth Office) funded the project"Using Green Bonds to Raise International Capital for India's Transition to a Low-carbon and Climate Resilient Economy Phase-(11}" from January 2018 to July 2018 in a total amount up to £57,717 UK PACT- China Accelerating high-quality growth in China's Green Bond market and supporting post-COVID Green Economic Recovery. UK PACT- India strengthening climate risk assessment and enabling central bank supervision in the Indian financial sector= a partnership with frontrunning banks and DFIS. UNDRR- United Nations Office for Disaster Risk Reduction Developing Climate Resilience Definitions for Thematic Debt Markets Laudes Foundation 2021123 EU Building Programme on Energy Efficiency New Venture Fund Preparation of Concept Note for Transition Proposal on Land use. Tara Climate Limited: Tara Japan 2023 This project seeks to accelerate the mobilisation of capital for financing the net-zero transition in six (6) tsrget countries of Cambodia, Indonesia. Malaysia. Thailand. Wietnam. and Japan. Tara Vietnam 2024 This grant from Tara Climate Foundation supports a project aimed at accelerating the impacfful use of transition finance instruments -namely climate-themed debt (be it bonds or bank debt)- and facilitate investments in real-economy decarbonisation initiatives within Vietnam's industrial sector,. thereby supporting Vietnam's NDCS, and intemational commitments to facilitate a swift transition to net-zero emissions, aligned with Climate Bonds. vision of a sustainable. green. and resilient future Tara Japan +Thailand 2024 Tara is supporting Climate Bonds's work in Japan and Thailand to ensure that future finance investments and partnerships unlock opportunities to accelerate Japan and ASEAN'S transition towards a sustainable future. Forsythia Foundation A research grant to develop an understanding beyond climate change in the Green Chemicals space to uncover the scientific evidence base knowledge that links green chemistry to climate mitigation and resilience goals. Scaling Up Finance for India's Green Transition Sequoia Climate Fund granted Climate Bonds a 0•year grant to mobilize public and private capital with speed and scale to finance India's 2030 climate tsrgets. Transition Climate Arc 2023 The goal of this project funded by Climate Arc is to build consensus around commonalities across existing frameworks and to develop a practical methodology or tool for allocating investment portfolios to different ategories of transition finance 40
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2024 LSE Just Transition The London School of Economics and Climate Bonds collaborated on this project wth the aim to increase knowledge and confidence by key stakeholders (issuers. investors} on how just transition outcomes can be built into thematic bond issuances UK PACT Colombia UK Pact granted Climate Climate Bonds a fourth and final extension to the project Greening the Colombian Financial System.. Implementing local green definitions to enable long- term investment into priority sectors. The extension tsrgets financial institutions and non-financial corporates utilizing the Colombian taxonomy, fostering taxonomy-aligned green credit lines and financial and, in particular, the use of proxies for the water, AFOLU and transport sectors. including the development of new AFOLU proxy Taxonomy Brazil UNEP 2024 UNEP has granted Climate Bonds funds to develop the technical annexe5 for six sectors of the Brazilian Sustainable Taxonomy. Herlin China Herlin Foundation is supporting Climate Bonds. work to accelerate the decarbonisation of the steel industry in China. LAC UNEP Biodiversity Framework 2023 An additional contractto deliver a tailored-made hybrid VrkShoP program on sustainable finance taxonomies and a Common Framework on Sustainable Finance Taxonomies for LAC with a focus on the conservation, restauration, and sustainable use of biodiversty and its ecosystems ECF DFI 2023 European Climate Foundation is providing support to Climate Bonds, work to ensure that European DFIS take interventions that increase the amount of private sector capital mobilised for 1.5°C and resilient investments. Abatement of methane emissions in agriculture and energy sectors Climate Bonds is in receipt of a grant from a donor who wishes to remain anonymous to develop tools and frameworks for stakeholders to design and execute their 1.5°C transition plans that frontload methane abatement. These include transition plan guidan. investment criteria, and investment taxonomies. 18. Analysis of net assets between funds Year ended 31 December 2024 Creditors Current due within assets one year Fixed Assets Total Restricted Funds Unrestricted funds 260,845 5.519,766 (4,863,582) 917,029 Total funds 260,845 5.519.766 (4,863.582) 917,029 Year ended 31 December 2023 Creditors Current due within Assets one year Fixed Assets Total Restricted Funds 120,652 120.652 Unrestricted funds 138,397 5,482,740 (4,094,221) 1,526,916 Total funds 138,397 5.603.392 14.094.221) 1.647,568 41
CLIMATE BONDS INITIATIVE NOTES TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 2024 19. Reconciliation of net income to net cash flow from operating activities 2024 2023 Net movement in funds for the year (730,539) (574,967) Bank interest Depreciation and amortisation Ilncrease)IDecrease in debtors Increasel{Decrease) in creditors 15,412} 39,335 (912.1861 769,361 (4,827) 27,319 518,085 (848,981) Net cash provided by operating activities (839,441) (883,371) 20. Related Party Transactions There have been no related party transactions during the year. In 2023, Climate Bonds Initiative was invoiced £211,494 for setvices provided by ODI. a company ofwhich Dr Rathin Roy, a Trustee, is a Managing Director. No amount is OLrtstsnding as at 31 December 2023. 21. Prior year Statement of Financial Activities Unrestricted Funds Restricted Funds Total 2023 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 Total Income 3,676,833 5,123,911 8,800,744 Expenditure on: Charitable activities Trading activities 3.844,238 452,582 5,078,891 8,923,129 452,582 Total expenditure 4,296,820 5,078,891 9,375,711 Net loss 1619,987> 45.020 1574,9671 Transfers beeen funds Net Movement in Funds (619,987) 45,020 (574,967) Reconciliation of Funds." Total fvnds brought forward 2.146,903 75.632 2,222,535 Total funds carried forward 1,526,916 120,652 1,647,568 42