OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-09-30-accounts

Environmental Defense Fund Europe

Annual Report and Financial Statements Year ended 30 September 2021 Charity number: 1164661

Company number: 09217493

Table of Contents

Reference and administrative information 3
Report of the trustees 4
Trustees’ responsibilities in relation to the financial statements 14
Statement as to disclosure to our auditors 15
Independent auditor’s report 16
Financial statements and notes to the financial statements 21

2

Reference and Administrative Information
Other Names
Environmental Defense Fund, Environmental Defense
Fund Ltd (former name), Environmental Defence Fund
Europe/UK (former name), EDF Europe/UK, EDF Europe,
EDF UK, Environmental Defence Fund
Directors
Katherine Lorenz (Resigned 14thSeptember 2021)
Carl Ferenbach
Jens Dag Ulltveit-Moe
Lord Brian Griffiths
Christopher Cole (Resigned 14thSeptember 2021)
Lance West
Connie Hedegaard (Appointed 19thNovember 2020)
Andrea Monge (Appointed 19thNovember 2020)
Ravi Gurumurthy (Appointed 19thNovember 2020)
Roland Kupers (Appointed 19thNovember 2020)
Registered Office
3rdFloor
41 Eastcheap
London
EC3M 1DT
Company Registration Number
09217493
Charity Registration Number
1164661
Accountants
Haysmacintyre LLP
10 Queen Street Place
London
EC4R 1AG
Auditors
BDO LLP
55 Baker Street
London
W1U 7EU
Bankers
Citibank
33 Canada Square
London
E14 5LB

3

Environmental Defense Fund Europe Report of the trustees for the year ended 30 September 2021

Report of the trustees for the year ended 30 September 2021

The trustees are pleased to present their annual directors’ report together with the financial statements of the charitable company for the year ended 30 September 2021 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act 2006 purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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) (effective 1 January 2019).

No single entity can do all that is needed to address today’s urgent environmental problems - not the United States, not Europe, not the global business community, certainly not Environmental Defense Fund alone. Nevertheless, by working in partnership with many others, we can make a difference.

As we expand our platform in Europe, we will continue to investigate and assess what needs to be done to meet the most pressing challenges that cross national boundaries. We will remain alert and flexible, responding to new scientific discoveries, technological innovations and social trends and pursuing important opportunities as they arise.

Objectives and activities

The objects of the Charity are for the public benefit to promote:

The charity Trustees consider that they have complied with their duty in section 17 of the Charities Act 2011 to have due regard to the Public Benefit guidance published by the Charity Commission.

Environmental Defense Fund Europe Report of the trustees for the year ended 30 September 2021 (continued)

Europe so often leads the world in safeguarding the environment and human health, from its major advances on climate to its protections for species and habitat, and its ambitious standards for clean air, clean water, safer chemicals and greener products. Yet we still face many challenges. Tackling global climate change requires unprecedented action, our seas are still under great pressure, our land does not sustain the protective web of biodiversity and habitats it once did, and human health is still too often impaired due to poor environmental conditions.

To help deliver solutions on the scale of these problems, Environmental Defense Fund Europe will reach out to new audiences, unlock additional resources, and deploy both tried and tested tools and innovative approaches, adding further diversity to the European environmental movement.

Hallmarks of Environmental Defense Fund Europe’s approach include:

Charting a Course for EDF Europe

EDF has a 50-year track record in the US of using economics, science, and partnerships to provide pragmatic solutions to the world’s most pressing environmental problems. To increase its overall effectiveness, EDF will expand its European presence in the coming years. It will do this by expanding its engagement in the heart of decision making in Brussels and across Europe. We will collaborate with politicians, policy makers, businesses and academia to hasten the transition to a carbon free economy, develop and implement ambitious environmental policies across Europe, and share learnings from Europe to other parts of the globe.

By developing a significant presence in Brussels and raising our profile as a global organisation, we will ensure that we can disseminate the best science and economics to achieve cohesive solutions that are effective locally, regionally and globally.

5

Environmental Defense Fund Europe Report of the trustees for the year ended 30 September 2021 (continued)

Goals

Energy

Accelerated adoption of clean energy in all sectors has reduced carbon emissions (against a 2017 baseline) and contributed to improvements in air quality, while allowing for strong growth in the economy.

Measuring methane emissions

Measured methane emissions from global oil and gas infrastructure to help identify emissions mitigation opportunities within Europe.

Reducing methane emissions

European countries and companies make strong commitments to reduce methane emissions, consistent with achieving a 45% global reduction by 2025.

Climate

Europe meets its commitments under the Paris Agreement, pledging to cut emissions by at least 55% by 2030 (from a 1990 baseline).

Carbon Pricing

That carbon pricing is effective in reducing emissions across all sectors, including through the European Union Emissions Trading Scheme (EU-ETS) and through ICAO and IMO for international aviation and shipping.

Oceans

Establish Europe as a world leader in addressing climate change impacts on fisheries.

Air Quality

Advance innovation in air pollution monitoring and control around the world to tackle the growing crisis of urban air quality. Working with diverse partners on the ground around the world, we are advancing scientific and policy tools to support solutions that deliver cleaner air and healthier communities.

6

Environmental Defense Fund Europe Report of the trustees for the year ended 30 September 2021 (continued)

Achievements and performance

Measuring and reducing methane emissions

Methane is a potent greenhouse gas, responsible for around 25% of current global warming. In 2021, our work over the past 11 years culminated in the EU- and US-driven pledge at COP26 of more than 100 countries to slash methane emissions by 30 percent by 2030.

Our work also led to the inclusion in a European Commission legislative proposal in December 2021 of rules for measuring, reporting and verification; leak detection and repair and reducing emissions from venting and flaring.

Furthermore, we continued to work with the European Commission to introduce measures to reduce methane emissions from gas imports.

These instrumental developments follow the Environmental Defense Fund Europe’s work with a network of EU stakeholders and decision-makers to drive ambitious methane reform. EU interlocutors have explicitly referenced us as essential to “putting methane on the EU agenda and keeping it there.”

Advocating for smart, science-based use of hydrogen across the UK and Europe

The EU has placed hydrogen at the centre of its ambitious Green Deal. In 2021, Environmental Defense Fund has galvanized new science and advocacy in Europe to ensure that investments in hydrogen deliver on their promise to protect the climate. A series of events hosted by or featuring Environmental Defense Fund articulated the important nuances and risks of deploying hydrogen.

Officials in the European Commission took note of our intervention and were struck by the new insights. Several follow up meetings have taken place with Commission interlocutors, and they have welcomed ongoing information exchange and encouraged further discussions on appropriate research.

Cleaning up shipping

The EDF Europe shipping team published several reports this year relating to leveraging international law and market-based mechanisms for decarbonising shipping, which have received significant media and key stakeholder attention.

Europe was an expert founding partner for Cargo Owners for Zero Emission Vessels (COZEV), which includes a pledge by major companies like Amazon and Ikea to use zero-carbon ocean freight by 2040. The platform launched in October, receiving widespread coverage (e.g. BBC, Financial Times, Washington Post).

7

Environmental Defense Fund Europe Report of the trustees for the year ended 30 September 2021 (continued)

Breathe London/Clean air in the UK

Through our Breathe London project (which was handed over to Imperial College London at the end of 2021), Environmental Defense Fund Europe has worked to translate hyperlocal air pollution data into actionable information for communities and grassroot campaigns as well as policy makers to advance clean air actions in the city. In 2021, we provided a summary of our work to put actionable information into the hands of communities, NGOs and policymakers to inform key clean air interventions, like the Ultra-Low Emission Zone, and raise the political ambition of the London Mayor’s clean air goals.

In summer 2021, we supported local grassroots campaigners and fellow NGOs with data assessments and visuals to strengthen their campaigns to improve air quality and health, particularly for the most vulnerable Londoners including the very old and young, and those living in areas of high deprivation. This included providing ‘Mums for Lungs,’ a group of concerned parents, with a list of the monitoring sites across the city that registered illegal air pollution in 2020 - despite lockdown measures - and an assessment showing that about two-thirds of the NO2 pollution at these locations came from diesel vehicles.

We also released an interactive map displaying detailed information on the sources of healthharming air pollution across Greater London, using a modelled dataset from the Breathe London pilot. The map allows local officials and campaigners to drill down to a 10x10 metre grid and see how specific activities (e.g., diesel van drives, aviation, or burning gas for fuel) contribute to PM2.5 and NO2 air pollution at that particular location. Many local government officials, advocates, academics and researchers attended our launch webinar and map demo. We have been informally told that both the Greater London Authority and Defra are interested in adopting this approach to mapping pollution sources. The Greater London Authority also referenced our Clean Air Zone analysis in a new report on the city’s Low Emission Zone as evidence of benefits beyond London.

Sustainable freight

In 2021, Environmental Defense Fund Europe partnered with POLIS to launch the SURF (Sustainable Urban Freight) project to guide city planners, business leaders and other freight decision-makers to develop a vision and strategy pathway for sustainable freight.

Taking place between April and December 2021, the project focused on the design and implementation of Zero-Emission Zones for freight (ZEZ-Fs), which can dramatically reduce carbon emissions and contribute to healthier cities.

SURF also built practice and partnerships to launch innovative solutions and measures for the decarbonisation of the freight sector, with a focus on urban logistics.

This project consisted of two core components:

8

Environmental Defense Fund Europe Report of the trustees for the year ended 30 September 2021 (continued)

The SURF e-course, which includes learnings from our work in London, successfully launched two of three modules, which more than 50 individuals have so far enrolled in. The course covers current challenges and trends, opportunities and the policy context for zero-emission zones for freight.

Development and Operations

Environmental Defense Fund Europe continues to establish itself as an environmental non-profit that brings a unique science-based perspective to the major policy debates shaping the future of the European Union. As we deepen our engagement and impact on the continent, we are augmenting our organizational capacity with new senior appointments across Europe.

Following the arrival of Executive Director Jill Duggan in June 2020, the team has continued to grow. Key recent hires include an AVP for European Strategy and Engagement (Dagmar Droogsma); Director of Parliamentary Engagement (Kate Wilson); AVP of European Strategy and Engagement (Helen Spence-Jackson); and Head of Communications (Brett Kobie). Soon to join are a new Senior Policy Analyst and a Senior Director for EU Energy Transition. These will be supported by new operational roles at our administrative headquarters in Amsterdam.

We continue to actively pursue government funding from entities such as the European Commission, individual governments, and institutional funding from foundations. Diversifying our funding streams by tapping into new sources will help us grow and expand.

Financial review

Expenditure

Direct expenditure for the year ended 30 September 2021 totalled £4,002k ( 2020: £3,790k). Of the total expenditure, £3,298k was considered unrestricted ( 2020: £2,038k ) and £704k was subject to donor restrictions ( 2020: £1,752k ).

Stichting EDF Europe’s direct expenditure was £371k ( 2020: £428k ) The expenditure covered charitable activities and operational costs.

Income

EDF Europe receives funding and support from a number of generous private individuals and foundations. The remainder of our activity is funded through a grant from EDF Inc. We maintain a restrictive government and corporate donations policy that ensures our objectivity, aligns with our commitment to non-partisanship, and allows EDF Europe to make its work freely available to ensure its widest possible adoption.

9

Environmental Defense Fund Europe Report of the trustees for the year ended 30 September 2021 (continued)

EDF Europe received total income of £4,064k ( 2020: £3,766k) for the year ended 30 September 2021. This included £3,310k of unrestricted funds ( 2020: £2,187k ) and £754k of funds that were subject to a restriction on usage ( 2020: £1,579k).

EDF Europe ended FY2021 with an unrestricted surplus of £11k compared to a £149k surplus a year earlier.

Total funds at the end of 20FY21 were £659k ( 2019: £598k). All net assets held were considered unrestricted.

Conduit funding

During the year, EDF Europe received funding on behalf of EDF Inc totalling £48k. These funds were passed directly to EDF Inc at the request of the donor and are not included in the results of EDF Europe.

Reserves policy

Reserves are typically required to bridge the gap between spending and receiving income, and/or to cover. The Trustees believe the ideal level of Reserves is three months of Operating Expense which is £727k ( 2020: £582k ). The reserves level has been reviewed in light of the COVID-19 pandemic and the Trustees assess that the required level of reserves remains appropriate despite this external event. The total unrestricted funds as of 30 September 2021 amounted to £659k ( 2020: £598k ). This includes fixed assets with a Net Book Value (NBV) of £51k ( 2020: £57k ) that are not available for general purposes at the year-end, leaving free reserves at the year-end of £608k ( 2020: £541k ). The trustees feel that the current level of reserves is sufficiently close to target so as not to require specific action. This will however be reviewed annually as the organisation continues to grow.

Going concern

In assessing the impact of COVID-19 on EDF Europe, the Trustees have considered all the matters described in the Trustees’ Report, including the potential impact on the group’s operations, donations and grant funding. The trustees do not expect the impact of COVID-19 to have a material impact on current programmatic strategy and expansion plans. EDF Europe has a signed letter of support from the parent charity Environmental Defense Fund Inc (for the period to the end of March 2023) guaranteeing to cover any shortfalls incurred by EDF Europe that covers the period to the end of March 2023.

As at the date of signing these financial statements, the Trustees’ forecasts indicate that the charitable company will be able to maintain liquidity for a period of at least one year following the date of signing these financial statements and will therefore be able to continue to operate as a going concern. The Trustees therefore consider that no material uncertainty exists that could impact the charitable company’s going concern assessment.

10

Environmental Defense Fund Europe Report of the trustees for the year ended 30 September 2021 (continued)

Looking to the future

In 2022, we will continue our push toward realising positive environmental change in the European Union and, as part of EDF’s new global strategy – convene discussions with the EU and other regions to drive best practice on the policy frameworks need to curb the climate crisis. As part of this exercise, we will be separating the UK and EU-focused elements of our work across the relevant legal entities.

Recognising our institutional strengths, we are continuing to raise the importance of tackling methane emissions from oil and gas, encouraging the EU to take a global leadership role to address this issue rapidly. The EDF Europe team is also actively exploring (new workstreams where our unique science- and economics-based approach can add significant value. These include product sustainability in the context of the circular economy; climate smart agriculture, forestry and land use (AFOLU); fisheries and oceans; leveraging investor influence as well as enhanced engagement with Central and Eastern European countries on climate.

Across all work areas, we adhere to the principle of additionality, ensuring that we fill gaps where other NGOs are less active.

Fundraising

We seek to raise funds from individuals, foundations and relevant Government grant making programmes. EDF Europe receives donations raised by EDF Inc. for our work in Europe and direct support received from European sources. Fundraising activities in Europe are closely coordinated between EDF Inc. and EDF Europe.

We carry out our fundraising in-house, do not currently employ professional fundraising service providers, and do not manage small-scale donations from individuals. EDF Europe does not hold or manage a list of contact details for donors’ residents in Europe, donating to EDF Europe. We have received no complaints. Our fundraising activity is currently not operating at a level where we consider it necessary to agree to any voluntary standards. Should it increase, we will ensure we adopt leading practices and sign up to and meet the appropriate standards.

We have received no complaints in relation to fundraising activities. Our terms of employment require staff to behave reasonably at all times; it is not currently necessary to design specific procedures to monitor such activities. When fundraising from individuals in Europe is facilitated in Europe via a dedicated communications channel such as the new website, we will establish the necessary procedures and guidelines to manage that activity.

11

Environmental Defense Fund Europe Report of the trustees for the year ended 30 September 2021 (continued)

Structure governance and management

Governing document

Environmental Defense Fund Europe (EDF Europe) is a company limited by guarantee under the Companies Act 2006 and incorporated in England and Wales. Environmental Defense Fund, Incorporated, a New York not-for-profit organisation (“EDF Inc.”), is the sole member of the Charity. The liability of the Member is limited to £1, being the amount that the Member undertakes to contribute to the assets of EDF Europe in the event of its being wound up while it is the Member or within one year after it ceases to be the Member. In addition to the foregoing, EDF Inc. has entered into an agreement with EDF Europe to pay operating expenses that EDF Europe is unable to pay during the period from October 2021 through March 2023.

Decisions of EDF Europe are made by the Charity’s trustees, who act independently from EDF Inc. EDF Inc may suggest areas of work for consideration by the EDF Europe’s trustees; however, work in these suggested areas will be undertaken only if the trustees of the Charity decide that it will further the Charity’s objects and that it will be effective in the UK and/or wider European context. Program and geographic leaders work collaboratively to identify and maximise opportunities for transformative environmental impact.

Stichting Environmental Defense Fund Europe is a charitable foundation, registered in the Netherlands (Chamber of Commerce registration no. 72607440) and a company limited by guarantee, incorporated in the Netherlands (Fiscal identity company no. 859171814). Environmental Defense Fund Europe consolidates the results of the Stichting on the basis that it has the ability to govern the Stichting’s financial and operating policies. The mission of the Stichting follows that of EDF Europe and its ultimate parent organisation, EDF Inc. Summary results for Stichting EDF Europe are included in the notes to the financial statements.

The workforce remuneration and key management personnel (KMP) salaries are reviewed against market pay data. We are also in the process of devising a remuneration policy to ensure workforce pay is within the appropriate market benchmark, parameters and criteria against the UK charity and not for profit sector.

Appointment of trustees

The Memorandum and Articles of Association of EDF Europe require that the Charity have at least four trustees, two of whom must be independent trustees. EDF Inc., as the sole member, appoints trustees for such term as the sole member specifies.

Trustees of EDF Europe have been, and prospective trustees will continue to be, chosen with their knowledge of the European region in mind. In due course, as the Charity gains experience and develops its own organisational capacity, it is anticipated that the Charity's staff and trustees will increasingly propose areas of focus and activities to be carried out by EDF Europe and will liaise with EDF Inc. to ensure such activities coordinate with EDF Inc.’s work.

EDF Inc. and EDF Europe work together towards the achievement of common goals and currently share a common Board Chair, which helps to provide co-ordination and consistency.

12

Environmental Defense Fund Europe Report of the trustees for the year ended 30 September 2021 (continued)

We are seeking to expand Board membership to include representatives from a wider spectrum of European countries and a greater range of skills, experience and influence.

Trustee induction and training

New EDF Europe trustees are voted on by a majority vote of the board. Upon their approval, new trustees are provided a trustee handbook and organisational orientation. The orientation includes meetings with the board chair, EDF Europe Executive Director, and other members of the organisation’s senior leadership team including but not limited to the Chief Administrative Officer and programme teams. The goal of the orientation is to give new trustees the opportunity to ask questions and gain a deeper understanding of the organisation’s mission, vision and operations.

Organisation

An Executive Director is appointed by the trustees to manage the day-to-day operations of both Environmental Defense Fund Europe and Stichting Environmental Defense Fund Europe by implementing the policy and strategy adopted by and within a budget approved by the Trustees. The Trustees provide the manager with a description of his or her role and the extent of his or her authority; and any manager must report regularly to the Trustees on the activities undertaken in managing EDF Europe and provide them regularly with management accounts, which are sufficient to explain the financial position of the Charity.

Risk management

The Trustees of EDF Europe receive regularly updated risk assessments which cover the principal risks and uncertainties that the charity face, including financial, operational and reputational, presented in the form of a risk register that also summarises implementation of policies, processes or procedures to minimise or manage the potential impact on the charity should those risks materialise.

The trustees review the risk register at each board meeting and consider any further steps which may be necessary to manage new as well as previously identified risks. The trustees consider the most serious risks to which the charity is exposed at present to be:

13

Environmental Defense Fund Europe Report of the trustees for the year ended 30 September 2021 (continued)

Trustees’ responsibilities in relation to the financial statements

The charity trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity trustees to prepare financial statements for each year, which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing the financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

14

Environmental Defense Fund Europe Report of the trustees for the year ended 30 September 2021 (continued)

Statement as to disclosure to our auditors

In so far as, the trustees are aware at the time of approving our trustees’ annual report:

In preparing this Trustees’ Report advantage has been taken of the small companies’ exemption, including the option not to produce a strategic report.

By order of the board of trustees

Carl Ferenbach (Chair) 8th March 2022

15

Environmental Defense Fund Europe Report of the trustees for the year ended 30 September 2021

INDEPENDENT AUDITOR’S REPORT TO MEMBERS AND TRUSTEES OF ENVIRONMENTAL DEFENSE FUND EUROPE

Opinion on the financial statements

In our opinion, the financial statements:

We have audited the financial statements of Environmental Defense Fund Europe (“the Parent Charitable Company”) and its subsidiaries (“the Group”) for the year ended 30 September 2021 which comprise the consolidated statement of financial activities, the consolidated and parent balance sheet, the consolidated statement of cash flow and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remain independent of the Group and Parent Charitable Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions related to going concern

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and the Parent

16

Charitable Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. The other information comprises: Report of the Trustees. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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.

Other Companies Act 2006 reporting

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

In the light of the knowledge and understanding of the Group and the Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Strategic report or the Trustee’s report.

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

17

Responsibilities of Trustees

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

In preparing the financial statements, the Trustees are responsible for assessing the Group’s and the Parent Charitable Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the Parent Charitable Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

In preparing the financial statements, the Trustees are responsible for assessing the Group’s and the Parent Charitable Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the Parent Charitable Company or to cease operations, or have no realistic alternative but to do so.

Extent to which the audit was capable of detecting irregularities, including fraud

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

18

Audit response to risks identified

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate

concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

19

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at:

https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charitable Company and the Charitable Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Jill Halford (Senior Statutory Auditor)

For and on behalf of BDO LLP, statutory auditor London, United Kingdom

Date: 09 March 2022

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

20

Environmental Defense Fund Europe Consolidated Statement of Financial Activities

(incorporating an income and expenditure account) For the year ended 30 September 2021

Note
Income from:
Charitable activities:
- Climate initiatives
2
Other income
3
Total income
Expenditure on:
Charitable activities:
- Climate initiatives
4
Total expenditure
Net income / (expenditure) for the year
Transfers between funds
Net movement in funds
5
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
14		 Unrestricted
£
3,309,583
-
3,309,583
3,298,200
3,298,200
11,383
50,252
61,635
597,529
659,164		 Restricted
£
754,345
-
754,345
704,093
704,093
50,252
(50,252)
-
-
-		 2021
Total
£
4,063,928
-
4,063,928
4,002,293
4,002,293
61,635
-
61,635
597,529
659,164		 Unrestricted
£
2,186,075
1,083
2,187,158
2,038,222
2,038,222
148,936
-
148,936
448,593
597,529		 2020
Restricted
Total
£
£
1,578,666
3,764,741
-
1,083
1,578,666
3,765,824
1,751,869
3,790,091
1,751,869
3,790,091
(173,203)
(24,267)
-
-
(173,203)
(24,267)
173,203
621,796
-
597,529

All of the above results are derived from continuing activities.

There were no other recognised gains or losses other than those stated above. The attached notes form part of these financial statements.

21

Environmental Defense Fund Europe Consolidated Balance Sheet As at 30 September 2021

Company registration no. 09217493

Note
Fixed assets:
Tangible assets
8
Intangible Assets
9
Current assets:
Debtors
10
Cash at bank and in hand
16
Liabilities:
Creditors: amounts falling due within one year
11
Net current assets
Total assets less current liabilities
Provisions for liabilities
12
Total net assets
Funds
Restricted funds
13
Unrestricted funds
13
Total funds		 2021
£
42,860
8,238		 2021
2020
£
£
37,445
19,224
51,098
1,043,075
132,666
1,175,741
(628,881)
614,066
665,164
(6,000)
659,164
-
659,164
659,164		 2020
£
56,669
546,860
161,656
1,281,687
1,443,343
(829,277)
603,529
(6,000)
597,529
-
597,529
597,529

The financial statements have been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

Approved by the trustees on 8th March 2022 and signed on their behalf by:

Carl Ferenbach (Chair)

The attached notes form part of the financial statements.

22

Company registration no. 09217493

Environmental Defense Fund Europe Parent Charity Balance sheet As at 30 September 2021

Note
Fixed assets:
Tangible assets
8
Intangible Assets
9
Investments
8
Current assets:
Debtors
10
Cash at bank and in hand
16
Liabilities:
Creditors: amounts falling due within one year
11
Net current assets
Total assets less current liabilities
Provisions for liabilities
12
Total net assets
Funds
13
Restricted funds
Unrestricted funds
13
Total funds		 2021
£
42,860
8,238
-		 2021
2020
£
£
37,444
19,224
1
51,098
1,041,583
132,666
1,174,249
(650,049)
591,406
642,504
(6,000)
636,504
-
636,504
636,504		 2020
£
56,669
524,200
223,344
1,184,925
1,408,269
(816,863)
580,869
(6,000)
574,869
-
574,869
574,869

The financial statements have been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

As permitted by section 408 of the Companies Act 2006, the Parent Charitable Company's profit and loss account has not been included in these financial statements. The surplus for the year was £61,635 (2020: £32,542 deficit).

Approved by the trustees on 8th March 2022 and signed on their behalf by:

Carl Ferenbacj (Chair)

The attached notes form part of the financial statements.

23

Environmental Defense Fund Europe Consolidated Statement of Cash Flows For the year ended 30 September 2021

Cash used in investing activities
increase in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Net expenditure for the reporting period
(as per the statement of financial activities)
Amortisation charge
Depreciation charge
(Increase) / decrease in debtors
Increase in creditors
Write-down of investment
Increase in provisions
Net cash provided by operating activities
Cashflow from investing activities
Purchase of Tangible Fixed Assets
Changes in Net Funds
£
£
Cash at bank and at hand
132,666
1,149,021
Net cash
132,666
1,149,021
At 01
October
2020
Cash Flows
Net cash provided by operating activities
Reconciliation of net expenditure to net cash flow from operating
activities		 2021
£
1,169,974
(20,953)
1,149,021
132,666
1,281,687
2021
£
61,635
10,986
15,537
881,419
200,396
1
-
1,169,974
20,953
20,953
£
-
-
Non-cash
changes		 2020
£
105,885
(35,565)
70,320
62,346
132,666
2020
£
(24,267)
10,986
6,028
(218,317)
325,455
-
6,000
105,885
35,565
35,565
£
1,281,687
At 30
September
2021
1,281,687

The attached notes form part of the financial statements.

24

Environmental Defense Fund Europe Notes to the financial statements For the year ended 30 September 2021

1 Accounting policies

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102 - effective 1 January 2019) - (Charities SORP FRS 102) and the Companies Act 2006. The charitable company meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note. These financial statements have been prepared in accordance with provisions applicable to companies’ subject to the small companies’ regime.

1.1 Basis of Consolidation

These financial statements consolidate the results of the charity and its controlled subsidiary undertaking Stichting Environmental Defense Fund Europe on a line by line basis. A separate Statement of Financial Activities and Income and Expenditure account for the charity has not been presented because it has taken advantage of the exemption afforded by the Charities SORP.

1.2 Going concern

In assessing the impact of COVID-19 on EDF Europe, the Trustees have considered all the matters described in the Trustees’ Report, including the group’s operations, the impact on donations and grant funding. With this in mind, the Trustees can confirm there are enough funds to support the programmatic operations of EDF Europe. Despite the global pandemic, Environmental Defense Fund Europe is in a good position and maintaining its current programmatic strategy and expansion plans. The trustees also deem the future risk to income streams to be negligible as a result of the signed letter of support from Environmental Defense Fund Inc. This letter demonstrates that the parent company has a legal obligation to cover the shortfalls up to March 2023. The trustees have made suitable inquiries and considered the charity’s forecasts, including cash flow, updated in the context of the COVID-19 pandemic and covering a period of at least 12 months from the date of approval of these financial statements. In making our assessment, the Trustees did not consider there to be any material uncertainty relating to events or conditions that individually or collectively may cast significant doubt on the company’s ability to continue as a going concern.

1.3 Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably. Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Income received in advance for the provision of specified service is deferred until the criteria for income recognition are met.

1.4 Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity, which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations, which the donor has specified, are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity.

25

Environmental Defense Fund Europe Notes to the financial statements For the year ended 30 September 2021

1 Accounting policies (continued)

1.5 Expenditure and irrecoverable VAT

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

1.6

Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include office costs, finance, personnel, payroll and governance costs which support the charity's environmental programmes and activities. Support costs have been allocated to expenditure on charitable activities.

1.7

Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

1.8 Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.9 Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Provisions for dilapidations totalling £6,000 (2020: £6,000) are the best estimate of costs for the repairs and redecoration of office premises to return to good order before vacating in July 2025.

1.10 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

26

Environmental Defense Fund Europe Notes to the financial statements For the year ended 30 September 2021

1 Accounting policies (continued)

1.11 Intangible Assets

Intangible assets relate to website development costs. Where the charitable companies’ websites are expected to generate future revenues in excess of the costs of developing those websites and all other capitalisation criteria are met, expenditure on the functionality of the website is capitalised and treated as an intangible fixed asset. The capitalised website development costs are subsequently amortised to ‘administrative’ expenses on a straight line basis over 4 years, except for those that are ‘assets under construction’, where no amortisation charge is incurred until the asset is complete.

1.12 Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

1.13 Foreign Currencies

1.14 Judgements in applying accounting policies and key sources of estimation uncertainty

The trustees do not consider there are any further critical judgements or key sources of estimation uncertainty requiring disclosure.

27

Environmental Defense Fund Europe Notes to the financial statements (continued) For the year ended 30 September 2021

2
Donations and Grants
Climate initiatives
EDF Inc
Thirty Percy
Clean Air Fund: Breathe London
Clean Air Fund: Data Into Action
Clean Air Fund: Through Traffic
Children's Investment Fund Foundation
Frederick Mulder Foundation
Fundación SHA
Levine Family Foundation
Oceano Azul Foundation
Other Donations
Rodel Foundation (via EDF Inc.)
Diego and Veronique De Giorgi
United Nations Environment Programme
Total for climate focused initiatives		 Unrestricted
£
3,243,226
-
-
-
10,000
-
-
-
56,357
-
-
3,309,583		 £
-
-
181,879
29,920
39,000
346,725
-
-
-
50,959
-
-
-
105,862
754,345
Restricted		 2021
Total
£
3,243,226
-
181,879
29,920
39,000
346,725
10,000
-
-
50,959
56,357
-
-
105,862
4,063,928		 2020
Total
£
2,152,005
150,000
904,201
406,097
25,000
3,297
2,400
-
9,070
110,671
2,000
-
3,764,741

Of the total Donations and Grants recognised in 2020, £1,578,666 was considered restricted. A breakdown of this income can be found in note 15.

Analysis of turnover by country of destination
United Kingdom
Rest of Europe
Rest of the world
3.
Other Income
Interest Receivable		 Unrestricted
£
-		 £
-
Restricted		 2021
Total
£
653,881
166,821
3,243,226
4,063,928
2021
Total
£
-		 2020
Total
£
1,473,768
28,297
2,262,676
3,764,741
2020
Total
£
1,083

28

Environmental Defense Fund Europe Notes to the financial statements (continued) For the year ended 30 September 2021

4 Analysis of expenditure

Staff costs
Professional fees
Staff travel
Rent
Office costs
Meetings
Subscriptions
General Administration
Audit and accounts fee
Support costs
Governance costs
Total expenditure 2021
Total expenditure 2020		 Climate
initiatives
£
1,912,295
1,355,351
8,414
-
-
-
-
-
-
3,276,059
646,830
79,402
4,002,292
3,790,091		 Support
costs
£
-
234,746.00
-
317,197
46,115
222
14,574
33,976
-
646,830
(646,830)
-
-
-
Charitable		 Charitable £
-
-
-
-
-
-
-
-
79,402
79,402
-
(79,402)
-
-
Governance
costs
activities		 2021 Total
£
1,912,295
1,590,097
8,414
317,197
46,115
222
14,574
33,976
79,402
4,002,292
-
-
4,002,292
3,790,091		 2020 Total
£
1,449,967
2,032,873
23,016
133,072
54,657
19,483
11,611
34,012
31,400
3,790,091
-
-
3,790,091
3,790,091

Of the total expenditure incurred in 2021, £3,298,200 was unrestricted (2020: £2,038,222) and £704,093 was restricted (2020: £1,751,869).

Professional fees relate to third party services utilised in order to meet charitable objectives, as well as services required to maintain the operational aspects of the Charity, such as HR and accountancy.

29

Environmental Defense Fund Europe Notes to the financial statements (continued) For the year ended 30 September 2021

This is stated after charging: 2021 2020
£ £
Operating lease rentals:
- Property 271,109 133,072
Depreciation 15,537 6,028
Amortisation 10,986 10,986
Auditor's remuneration:
- Audit fees 32,760 26,500
Staff costs were as follows:
Salaries and wages
Social security costs
Employer’s contribution to defined contribution pension schemes
Other staff costs		 2021
£
1,337,054
187,406
201,536
150,475
1,876,470		 2020
£
917,228
108,280
84,127
340,332
1,449,967

The following number of employees received employee benefits (excluding employer pension) greater than £60,000 during the year:

2021 2020
No. No.
£60,000 - £69,999 1 1
£70,000 - £79,999 2 1
£80,000 - £89,999 - 1
£100,000 - £109,999 1 2
£110,000 - £119,999 1 -
£150,000 - £159,999 1 -

Other staff costs comprised US employee staff costs recharged to the UK in respect of various EDF Europe programme costs, which includes the work on the Energy, Office of the Chief Scientist (OCS), Climate and Oceans programmes in Europe.

The total employee benefits including pension contributions and national insurance contributions of the key management personnel were £489,076 (2020: £378,901). Key management personnel were determined to be the Managing Director, Executive Director and Director of Development in 2020, in line with the prior year period.

Redundancy and termination costs relating to employees were £nil (2020: £105,051).

The charity trustees were not paid or received any other benefits from employment with the Trust or its subsidiary in the year (2020: £nil) neither were they reimbursed expenses during the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:

Charitable activities 2021
No.
20
20		 2020
No.
15
15

30

Environmental Defense Fund Europe Notes to the financial statements (continued) For the year ended 30 September 2021

7 Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

8
Tangible fixed assets
Cost
At the start of the year
Additions in year
Disposals in year
At the end of the year
Amortisation
At the start of the year
Charge for the year
Eliminated on disposal
At the end of the year
Net book value
At the end of the year
At the start of the year		 £
44,747
20,953
-
65,700
7,303
15,537
-
22,840
42,860
37,444
Office
Equipment		 £
1
(1)
-
-
-
-
-
1
Investment in
Subsidiary		 Total
£
44,748
20,953
(1)
65,700
7,303
15,537
-
22,840
42,860
37,445

All of the above assets are used for charitable purposes.

9
Intangible fixed assets
Cost
At the start of the year
Additions in year
Disposals in year
At the end of the year
Amortisation
At the start of the year
Charge for the year
Eliminated on disposal
At the end of the year
Net book value
At the end of the year
At the start of the year
All of the above assets are used for charitable purposes.
10
Debtors
Other debtors
Amounts owed by group undertakings
Prepayments
Accrued income		 Group
2021
£
-
-
129,236
32,420
161,656		 £
43,942
-
-
43,942
24,718
10,986
-
35,704
8,238
19,224
Group
2020
£
9,334
946,123
49,755
37,863
1,043,075
Website
Development		 Parent Charity
2021
£
-
61,688.00
129,236.00
32,420
223,344.00		 Total
£
43,942
-
-
43,942
24,718
10,986
-
35,704
8,238
19,224
Parent Charity
2020
£
9,334
946,123
48,263
37,863
1,041,583

31

Environmental Defense Fund Europe

Notes to the financial statements (continued) For the year ended 30 September 2021

11 Creditors: amounts falling due within one year

Trade creditors
Other creditors
Accruals
Amounts owed to group undertakings
Taxes and Social Security
Deferred income
12. Provisions for liabilities
Opening balance
Additions
Amounts charged against the provision
Closing balance		 Group
2021
£
35,416
12,358
676,953
56,663
31,311
16,576
829,277
Group
2021
£
-
6,000
-
6,000		 Group
2020
£
69,331
35,761
386,563
-
29,573
107,653
628,881
Group
2020
£
-
6,000
-
6,000		 Parent Charity
2021
£
35,416
12,358
665,384
55,818
31,311
16,576
816,863
Parent Charity
2021
£
-
6,000
-
6,000		 Parent Charity
2020
£
68,604
35,761
386,563
21,895
29,573
107,653
650,049
Parent Charity
2020
£
-
6,000
-
6,000

The provision above has been made to cover the cost of dilapidations expected to arise at the end of the lease term on the new London property. This provision is expected to be utilised in 2025.

13
Analysis of net assets between funds - current year (Group)
Tangible fixed assets
Net current assets
Provisions for liabilities
Net assets at the end of the year
Analysis of net assets between funds - previous year
Tangible fixed assets
Net current assets
Provision for liabilities
Net assets at the end of the year
Analysis of net assets between funds - current year (Parent Charity)
Tangible fixed assets
Net current assets
Provisions for liabilities
Net assets at the end of the year
Analysis of net assets between funds - previous year
Tangible fixed assets
Net current assets
Provision for liabilities
Net assets at the end of the year		 Unrestricted
£
51,098
614,066
(6,000)
659,164
Unrestricted
£
56,669
546,860
(6,000)
597,529
Unrestricted
£
51,098
591,406
(6,000)
636,504
Unrestricted
£
56,669
524,200
(6,000)
574,869		 Restricted
£
-
-
-
-
Restricted
£
-
-
-
-
Restricted
£
-
-
-
-
Restricted
£
-
-
-
-		 Total funds
£
51,098
614,066
(6,000)
659,164
Total funds
£
56,669
546,860
(6,000)
597,529
Total funds
£
51,098
591,406
(6,000)
636,504
Total funds
£
56,669
524,200
(6,000)
574,869

32

Environmental Defense Fund Europe Notes to the financial statements (continued) For the year ended 30 September 2021

14
Movements in funds - current year (Group)
Transfers
£
£
£
£
Restricted funds:
Clean Air Fund: Breathe London
-
181,879
(181,879)
-
Clean Air Fund: Data Into Action
29,920
(11,102)
(18,818)
Clean Air Fund: Through Traffic
39,000
(39,000)
-
Children's Investment Fund
-
346,725
(346,725)
-
Oceano Azul Foundation
-
50,959
(50,959)
-
United Nations Environment Programme
-
105,862
(74,428)
(31,434)
Total restricted funds
-
754,345
(704,093)
(50,252)
Unrestricted funds:
General funds
597,529
3,309,583
(3,298,200)
50,252
Total unrestricted funds
597,529
3,309,583
(3,298,200)
50,252
Total funds
597,529
4,063,928
(4,002,293)
-
Movements in funds - current year (Parent Charity)
Transfers
£
£
£
£
Restricted funds:
Clean Air Fund: Breathe London
-
181,879
(181,879)
-
Clean Air Fund: Data Into Action
29,920
(11,102)
(18,818)
Clean Air Fund: Through Traffic
39,000
(39,000)
-
Children's Investment Fund Foundation
-
346,725
(346,725)
-
Oceano Azul Foundation
-
50,959
(50,959)
-
United Nations Environment Programme
-
105,862
(74,428)
(31,434)
Total restricted funds
-
754,345
(704,093)
(50,252)
Unrestricted funds:
General funds
574,869
2,938,878
(2,927,495)
50,252
Total unrestricted funds
574,869
2,938,878
(2,927,495)
50,252
Total funds
574,869
3,693,223
(3,631,588)
-
Income
Expenditure
At 01
October
2020
At 01
October
2020
Income
Expenditure
Transfers between funds reflect expenditure incurred on the projects above in the previous financial year. This expenditure
within unrestricted expenditure in the 2019/20 financial statements. .		 £
-
-
-
-
-
-
At 30
September
2021
-
659,164
659,164
659,164
£
-
-
-
-
-
-
At 30
September
2021
was captured
-
636,504
636,504
636,504

33

Environmental Defense Fund Europe

Notes to the financial statements (continued) For the year ended 30 September 2021

Movements in funds - prior year (Group)
Restricted funds:
C40
Alta Advisers
Thirty Percy
Clean Air fund
Children's Investment Fund
Diego and Veronique De Giorgi
Levine Family Foundation
Fundación SHA
Rodel Foundation
Total restricted funds
Unrestricted funds:
General funds
Total unrestricted funds
Total funds
Movements in funds - prior year (Parent Charity)
Restricted funds:
C40
Alta Advisers
Thirty Percy
Clean Air Fund
Children's Investment Fund Foundation
Diego and Veronique De Giorgi
Levine Family Foundation
Fundación SHA
Rodel Foundation
Total restricted funds
Unrestricted funds:
General funds
Total unrestricted funds
Total funds		 £
123,203
50,000
-
-
-
-
-
-
-
173,203
448,593
448,593
621,796
123,203
50,000
-
-
-
-
-
-
-
173,203
434,208
434,208
607,411
At 01
October
2019
At 01
October
2019		 £
-
-
150,000
904,201
406,097
2,000
2,400
3,297
110,671
1,578,666
2,187,158
2,187,158
3,765,824
-
-
150,000
904,201
406,097
2,000
2,400
3,297
110,671
1,578,666
2,187,158
2,187,158
3,765,824
Income
Income		 £
(123,203)
(50,000)
(150,000)
(904,201)
(406,097)
(2,000)
(2,400)
(3,297)
(110,671)
(1,751,869)
(1,737,318)
(2,038,222)
(3,790,091)
(123,203)
(50,000)
(150,000)
(904,201)
(406,097)
(2,000)
(2,400)
(3,297)
(110,671)
(1,751,869)
(2,046,497)
(2,046,497)
(3,798,366)
Expenditure
Expenditure		 Transfers
£
-
-
-
-
-
-
-
-
-
-
-
-
-
Transfers
-
-
-
-
-
-
-
-
-
-
-
-
-		 £
-
-
-
-
-
-
-
-
-
At 30
September
2020
-
898,433
597,529
597,529
-
-
-
-
-
-
-
-
-
At 30
September
2020
-
574,869
574,869
574,869

15 Operating lease commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

Less than 1 year
2 - 5 years
Greater than 5 years		 2021
£
270,804
637,317
-
908,121		 2020
£
270,874
908,356
-
1,179,230

35

Environmental Defense Fund Europe Notes to the financial statements (continued) For the year ended 30 September 2021

16 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. Each member is liable to contribute a sum not exceeding £1 in the event of the charity being wound up.

17 Related party transactions

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

During the year the organisation received a grant of £3,423,225 (2020: £2,152,005) from EDF Inc. Included within creditors falling due within one year is an amount owed at the end of the year to EDF Inc. of £55,818 (2020: £946,123 debtor was owed by EDF Inc.). Included within the grant from EDF Inc was £370,705 to cover the operating costs of the Stichting. This was subsequently regranted by EDF Europe to the Stichting. At the end of the year a creditor balance of £61,688 was owed by the Stichting to EDF Europe and £845 was owed to EDF Inc.

Roland Kupers, a board member of EDF Europe and of Stichting EDF Europe, was paid €27,000 by EDF Inc during FY21, under contract as a Senior Science Advisor to the EDF Office of the Chief Scientist.

18 Conduit funding

During the year, EDF Europe received £48k from the Levine Family Foundation (2020: £48k). The Foundation specified that this funding was intended to support EDF Inc's work on Indonesian fisheries and asked for it to be transferred to EDF Inc. The funding was received into EDF Europe's bank account but was immediately transferred, in full, to EDF Inc, in accordance with the Foundation's intention. EDF Europe has treated both this and the funds received in FY20 as conduit funding and as such, has not included the donations for either year in its financial results.

36

Environmental Defense Fund Europe Notes to the financial statements (continued) For the year ended 30 September 2021

19
Stichting EDF Statement of Financial Activities
Unrestricted
£
Income from:
Donations and grants
370,705
Total income
370,705
Expenditure on:
Charitable activities
370,705
Total expenditure
370,705
Net movement in funds
-
Reconciliation of funds:
Total funds brought forward
22,660
Total funds carried forward
22,660		 Restricted
£
-
-
-
-
-
-
-		 2021
Total
£
370,705
370,705
370,705
370,705
-
22,660
22,660		 Unrestricted
£
325,435
325,435
317,160
317,160
8,275
14,385
22,660		 2020
Restricted
Total
£
£
110,671
436,106
110,671
436,106
110,671
427,831
110,671
427,831
-
8,275
-
14,385
-
22,660

All of the above results are derived from continuing activities.

There were no other recognised gains or losses other than those stated above.

The attached notes form part of these financial statements.

37

Environmental Defense Fund Europe Ltd Notes to the financial statements (continued) As at 30 September 2021

Company registration no. 859171814

20
Stichting EDF Balance Sheet
Current assets:
Amounts due from parent
Prepayments
Cash at bank and in hand
Liabilities:
Creditors: amounts falling due within one year
Amount due to group undertakings
Other liabilities
Net current assets
Total net assets
Funds
Restricted funds
Unrestricted funds:
General funds
Total unrestricted funds
Total funds		 2021
£
-
-
96,762		 2021
2020
£
£
21,895
1,491
-
23,386
(727)
(727)
22,660
22,660
-
22,660
22,660
22,660		 2020
£
22,660
96,762
(62,533)
(11,569)
(74,102)
-
22,660
22,660
22,660
22,660

Carl Ferenbach (Chair) 8th March 2022

38