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2021-12-31-accounts

CLEAN AIR FUND 20 21 Annual report and accounts

CONTENTS

CONTENTS
LETTER FROM OUR CHAIR AND EXECUTIVE DIRECTOR 3
TRUSTEES’ REPORT 5
OUR YEAR AT A GLANCE 6
OUR MISSION AND APPROACH 7
STRATEGIC REPORT 11
OVERVIEW OF OUR GRANT MAKING AND ORGANISATIONAL PROGRESS 12
GLOBAL: MOVEMENT BUILDING AND ENGAGEMENT 14
GLOBAL: DATA 16
AFRICA 19
EUROPEAN UNION 20
INDIA 22
UNITED KINGDOM 24
2021: TEN THINGS WE LEARNED 26
OUR GOALS FOR 2022 28
OUR STRUCTURE, GOVERNANCE AND MANAGEMENT 29
RISKS 32
FINANCIAL REVIEW 34
ADDITIONAL POLICIES 38
STATEMENT OF TRUSTEES’ RESPONSIBILITIES 39
INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF CLEAN AIR FUND 40
FINANCIAL STATEMENTS 43
STATEMENT OF FINANCIAL ACTIVITIES 44
BALANCE SHEET 45
STATEMENT OF CASH FLOWS 46
NOTES TO THE STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31 DECEMBER 2021 47
NOTES TO THE ACCOUNTS 48
REFERENCE AND ADMINISTRATIVE DETAILS 62

LETTER FROM OUR CHAIR AND EXECUTIVE DIRECTOR

During 2021, we increased significantly the reach and influence of our grant making. We committed funding to 45 new projects, worth $13 million on a multi-year basis, an increase of more than 50% on 2020. Our annual expenditure on new and live projects also grew by 50%, to $7.8m in 2021.

Air pollution is increasingly seen as a major public health concern and one of the most visible symptoms of the wider climate emergency.

Over the last two years, COVID-19 has brought attention to public health issues, and respiratory health in particular. In 2021, the World Health Organization highlighted clear evidence of the health damage inflicted by air pollution, even at low levels, and tightened their Air Quality Guidelines accordingly. A few months later, global leaders at COP26 underscored the risks that polluting, greenhouse gas-emitting fossil fuels pose to planetary health. In 2022, the war in Ukraine has highlighted again the harmful dependency of nation states on fossil fuels and kept energy security high on the political agenda.

We brought new funders on board to fund our programme of work. We also stimulated, through co-funding for example, a further $17.5m of financial support to clean air projects globally.

This report outlines how our in-country partners and our work on cross-cutting themes are already creating an impact, such as laws and policies enabling the roll-out of clean air zones and the shift towards cleaner forms of domestic heating. Our strategic partnerships are making a difference too — from supporting the World Economic Forum to engage business leaders, to funding C40 to deliver action on air quality in more than 50 cities.

We need to keep demonstrating how clean air measures can solve some of our greatest challenges. From climate change to sustainable development, early childhood development to equity, our collective efforts to deliver clean air can pay for themselves many times over. But we must be quick. In too many places, air quality is still deteriorating, and the numbers of people who suffer severe illness or die because of poor air quality grows every year.

We are grateful for the support and engagement of our funders, grantees, partners, trustees and staff members. Thank you all for your adaptability, determination and hard work. We look forward to drawing lessons from our experiences of 2021 and building on these successes in 2022.

JANE BURSTON Executive Director

KATHERINE GARRETT-COX Chair of the Board of Trustees

TRUSTEES, REPORT I. r4

OUR YEAR AT A GLANCE

$13m 45 projects for clean air funded

$1.1m $0.05m of projects of projects awarded awarded in India in Africa

$7.4m $2.9m $1.6m of projects of projects of projects awarded to awarded awarded global work in the EU in the UK

Global

$2m raised for our grants

10 multinational companies committed to clean air action

450 medical organisations demanded action from heads of state

$17.5m of clean air funding catalysed for the field

13 billion data points aggregated by OpenAQ

500 parents groups mobilised against fossil fuel burning

50 cities joined the C40 Air Quality Network

140 media articles on gaps in clean air funding

1 million people reached by our digital campaign during COP26

EU

$250 million government investment won for electric Polish buses

12 Polish mayors committed to Low Emission Zones

€10billion committed to Polish Clean Air Programme

7 NGOs demanded ambitious action in Sofia

28 European NGOs advocated for WHO EU targets

Africa

India

UK

25 reference grade monitors shipped to the continent

4 UK clean air zones expanded or implemented

1 Indian parliamentary group on air quality established

3.8 million more people covered by London Ultra Low Emission Zone expansion

68 Indian businesses joined Forum for Clean Air

2000 Indian public health centres championing clean air

We’re working towards a world where everyone can breathe clean air.

Air pollution is one of the largest threats to human health, our climate and the environment. Working together for clean air will create a healthier, fairer, more prosperous future for everyone.

The Clean Air Fund aims to accelerate the movement for clean air by:

THE CLEAN AIR FUND IS FUNDED BY:

OUR OBJECTIVE: CLEAN AIR FOR ALL

for itself many times over. That is why stronger laws on air pollution and better enforcement have the backing of two thirds of the public.

We all need clean air to live, grow and thrive.

Yet 9 out of 10 people breathe harmful, dirty air, making air pollution one of our biggest health threats.

Together, we can make this happen.

The Clean Air Fund works around the world with governments, funders, businesses and campaigners to deliver clean air for all as fast as possible. We know the solutions exist. They need to be prioritised and introduced quickly and more widely.

It’s everywhere and it’s getting worse. Invisible particles penetrate cells and organs in our bodies – our lungs, heart, blood and brain.

THE MOVEMENT FOR CLEAN AIR

Momentum is growing.

The grassroots campaigning we support in the streets of cities like Delhi, London and Warsaw is gaining traction and inspiring others. We’re raising pollution up the political agenda through partnerships with the World Economic Forum, the World Health Organization and the C40 Cities’ global Mayors forum. Crucially, political leaders are starting to adopt the measures needed, like banning dirty coal stoves, introducing clean air zones and setting ambitious targets in line with international guidelines.

A HIDDEN EMERGENCY

This leaves millions suffering with acute and chronic diseases including asthma, strokes, heart attacks and dementia. Over 7 million people die each year as a result of air pollution – more than twice as many as from malaria, tuberculosis and HIV/AIDS combined.

The poorest communities living in the most congested, polluted areas are hit hardest. Babies, children and older people suffer most.

It doesn’t have to be this way. By tackling air pollution together, we can save and improve many lives.

With more funds and more support, we can do so much more.

It is time to clean our air, to improve health, tackle climate change and build fairer societies and stronger economies.

PROTECTING OUR PLANET

OUR APPROACH

Clean Air Fund is a global philanthropic organisation that brings together governments, funders, businesses and campaigners to create a future where everyone breathes clean air.

We build and strengthen the movement at local, national, regional and global levels through:

Through grant-making and directly funded projects, we create change and accelerate action on clean air. We do this by supporting and building the clean air ecosystem across three areas:

WHERE WE WORK

We achieve local action through our intensive work in lighthouse geographies and we influence decision makers across national boundaries to make clean air the expectation and the norm.

OUR PRESENCE

By 2022, we will be present in 5 geographies and 4 global themes

Global themes Data Health Campaigns Private Sector Engagement

STRATEGIC REPORT

OVERVIEW OF OUR GRANT MAKING AND ORGANISATIONAL PROGRESS

CONTEXT

GRANT MAKING

We increased our grant making reach and influence significantly across our geographies and thematic areas. We

In 2021, the global COVID pandemic continued to prove a challenge and made aspects of our work slower or more difficult. Major events were re-scheduled, travel and face-to-face meetings with colleagues and partners remained hard and key legislative and policy decisions in our lighthouse geographies were delayed.

strengthened our strategic partnerships too. In the last financial year, we awarded funding to 45 new projects, worth $13.0m multi-year value[1] , a $4.4m or 52% increase on the $8.6m we awarded in 2020. The growth is mostly due to an increase in the number of multi-year grants we gave, particularly in the UK and the European Union, having developed good relationships with grantees over our first two years of operations. This is allowing us to work with small NGOs and provide them with a longer-term, more secure funding base. This doubled our average grant size from $0.2m to $0.4m. In addition, we awarded our largest ever grant to C40 Cities (Global - Other)[2] , worth $3.7m over 3 years. Annual Expenditure on new and live projects totalled $7.8m, a 50% increase from $5.2m in 2020.

Despite the pandemic, work to clean up our air progressed. The updated WHO Air Quality Guidelines and COP26 focused the minds of policy makers on climate, and to an extent on air pollution.

Against this backdrop, the projects we instigated, campaigns we supported, partnerships we funded and research we commissioned produced results. These are some of the highlights.

We brought on board new funders , securing $500k from Bloomberg Philanthropies for our pooled fund, $1.2m from the CH Foundation for a low-cost sensor project in Providence, Rhode Island, to be delivered by Brown University and $365k from McCall McBain for UK-based clean air academic fellowships to start in 2022. Our India grantee Council on Energy, Environment and Water (CEEW) secured ~$15m of institutional funding to scale up a pilot project that we had funded, improving air pollution mitigation and reducing exposure in the IndoGangetic Plains.

----- Start of picture text -----
EUROPE
22%
INDIA
8%
AFRICA
<1%
UK
12%
NEW MULTI YEAR VALUE GLOBAL-
PROJECTS BY PORTFOLIO DATA
18%
GLOBAL-
HEALTH
GLOBAL-
OTHER [2] GLOBAL- 4%
31% CAMPAIGNS
5%
12
Clean Air Fund: 2021 Annual Report and Accounts
----- End of picture text -----

  1. Multi-year value is the total value of our grant commitments over the lifetime of the grant. These differ from the annual commitment in our accounts due to a legally binding clause (the annual performance review) that limits our legal commitment to just one year of the grant.

  2. ‘Global - Other’ refers to the C40 Cities grant and some monitoring, evaluation and learning activity.

DIRECT DELIVERY

In instances where we were best placed to provide a service to the field, we delivered a number of projects ourselves. These include The State of Global Air Quality Funding 2021 report, our achievements at COP26, and the new global corporate Alliance for Clean Air in partnership with the World Economic Forum.

ORGANISATIONAL PROGRESS

2021 was a year of rapid expansion for the Clean Air Fund, as we built the organisation to manage multi-million dollar portfolios in each of our lighthouse geographies and thematic areas and to prepare for future growth. We continued to:

10

multinational companies committed to clean air action

GLOBAL: MOVEMENT BUILDING AND ENGAGEMENT

Our Strategic Partnerships and Communications team began work this year, extending Clean Air Fund’s influence and impact. It focused on building alliances and coalitions to drive action on clean air, supporting campaigning and public mobilisation, and working with partners and grantees to communicate the impact of and solutions to air pollution.

We got the first global, corporate Alliance for Clean Air off the ground

In partnership with the World Economic Forum, we launched an Alliance with ten multinational companies who committed to measure and reduce their air pollution footprint, communicate with stakeholders about the impacts of air pollution and contribute their business assets to working towards clean air. The Alliance for Clean Air was launched at COP26 with Accenture, Biogen, Bloomberg, Google, GoTo, IKEA, Maersk, Mahindra Group, Siemens, and Wipro as founding members.

Using guidance developed by the Stockholm Environment Institute, the companies will measure their air pollution footprints, and publish baseline footprints and reduction targets within a year. This builds on the corporate engagement work in our lighthouse geographies. In 2022 we will expand the Alliance to include other major companies in diverse sectors.

Our research and analysis on air quality funding secured significant interest and coverage

As part of coordinated global efforts for UN International Day of Clean Air for blue skies in September, we launched our third annual report on air quality funding. The powerful arguments in The State of Global Air Quality Funding 2021 were used by staff in the World Bank, USAID and other development agencies to argue air quality programmes need higher funding.

The report received notable news coverage - (Funding needed to tackle life shortening air pollution - report) in print and online (More global aid goes to fossil fuel projects than - tackling dirty air study) . BBC World Service interviewed Jane Burston and in total, our findings were covered in 140 media articles around the world, from Australia to Vietnam. The launch also had impact on social media, reaching over 72,000 people on the day it launched.

We brought together Official Donors to build alignment and support

We convened a working group of development agencies and multilateral lenders to build support for greater investment in clean air, the only regular gathering of official donors on air quality outside the Climate and Clean Air Coalition. We leveraged the State of Global Air Quality Funding report to build influence and connections that led to an invitation for Jane Burston to speak on a World Bank panel event during COP26. Despite this, as yet no significantly new and additional pledges have been made towards tackling air pollution by development agencies or banks. Building support for more funding to tackle air pollution as a priority for governments and donors will require high-level advocacy to shift policy, as well as a coordinated effort to address institutional barriers.

We pushed air pollution up the agenda at COP26 and joined the dots to climate change

Our focus at COP26 in Glasgow was to insert air pollution into climate and health narratives and position ourselves to build influence and mobilise funding.

Our report, Joined-Up Action on Air Pollution and Climate Change, outlined the benefits of addressing air pollution and climate change together, showing that an additional eight gigatonnes CO2e reduction could be secured. It provided the policy foundations, analysis and narrative on which we built our communications at COP26.

We funded installations of Michael Pinsky’s iconic Pollution Pods in five UK cities. The Pollution Pods, a series of geodesic domes whose air quality, smell and temperature recreate the pollution of different locations on three continents, were accompanied by medical staff from six children’s hospitals taking part in a Ride For Their Lives to Glasgow where they delivered a Healthy Climate Prescription Letter on behalf of 450 medical organisations across the globe. Thousands of members of the public visited the Pods and, together with the cycle ride, they garnered significant media coverage including in: BBC, The Evening Standard, and Forbes.

Jane Burston, spoke at key events in the ‘blue zone’ at COP, including panels hosted by the Wellcome Trust, the WHO and the World Bank.

We helped mobilise a delegation of parents to campaign on clean air

We supported our grantee, Campaign Collective, to launch a global ‘Our Children’s Air’ campaign, bringing together parents to demand clean air for their children. Nearly 500 parents groups from 44 countries were mobilised and some sent representatives to Glasgow to share their powerful personal stories. An international delegation of mothers met UK President of COP26, Alok Sharma MP, to present a petition demanding action. This meeting and a subsequent panel discussion and press conference secured ‘cut through’ coverage in major international and UK titles.

13 billion data points aggregated by OpenAQ

GLOBAL: DATA

As The State of Global Air Quality Funding 2021 report shows, funding to data projects grew by 500% (albeit from a low base) between 2015 and 2020, outstripping any other project type we track. Despite this, the field remains relatively undeveloped. Our approach is focussed on codeveloping projects with grantees to build capacity and expertise in data monitoring, and making existing data accessible to citizens who want to campaign, and governments that want to implement solutions.

In 2021 we developed several key partnerships. We are working with the United Nations Environment Programme (UNEP) on improving global coordination for air quality data and the US Environment Protection Agency (EPA) on a collaborative data management project.

Breathe London pilot inspired many other cities with its low-cost sensor deployment

The Breathe London monitoring project, piloted with Clean Air Fund and other philanthropic support in 2020, has now secured long-term funding from the Greater London Authority and Bloomberg Philanthropies. In 2021, a final city blueprint and detailed technical report were published, enabling others to draw on this approach of using low-cost sensors alongside reference-grade monitors. Examples include:

We made wearable sensors more accessible to campaigners and citizen scientists

Our grant to HabitatMap, a non-profit community campaigning organisation, made their AirBeam wearable sensor more userfriendly through improved sensor design, an updated app available on iOS devices, and detailed user guidance. Developed with user input, these improvements will make it easier for community campaigners, educators and citizen scientists to monitor and share air pollution data and spur action.

41 new countries and 40,000 new stations were added to the OpenAQ platform

OpenAQ continues to expand its global air quality data platform, adding tens of thousands of new stations (including both referencegrade and low-cost sensor platforms) in 2021, particularly from the Global South. In total, OpenAQ now hosts about 13 billion data points from 136 countries, with 15 million user downloads each month, supporting the application and use of the data that would otherwise not be possible.

Dozens of cities took steps to improve air quality, starting where the need is greatest

With 37 signatory mayors supporting the C40 Clean Air Cities Declaration and membership of the C40 Air Quality network reaching 50 cities in 2021, there is now a solid foundation for influencing and supporting ambitious air quality action in the world’s largest cities. With our

support, C40 provided technical assistance to support cities where the capacity needs were highest including Ethiopia’s Addis Ababa and Quezon City in the Philippines.

We boosted capacity for ambient air quality work at the WHO, laying the foundations for a long-term partnership

Our grant to WHO supported the update of a new official air quality database to include countryverified data on particulate matter and, for the first time also NO2. This will allow the calculation of updated global health statistics, which were last issued in 2018 based on 2016 data. Preliminary analysis shows that 2,000 more cities are in the revised database, a significant rise in the number of cities monitoring air quality.

Our grant enabled WHO to maintain a Global Air Pollution and Health Technical Advisory Group which brings together 80 experts from academia, government and NGO institutions to advise WHO and inject technical rigour to their air quality data work.

“ CLEANING UP OUR AIR CAN BE A SECRET WEAPON IN ADDRESSING SOME OF SOCIETY’S BIGGEST ISSUES

25

reference grade monitors shipped to the continent

AFRICA

We began supporting air pollution monitoring in African cities and commissioned the creation of a dedicated urban clean air network through our partnership with C40.

We bolstered monitoring capacity

Together with AfriqAir and the UK Centre for Ecology & Hydrology, we helped boost monitoring capacity in Africa. We funded 25 reference-grade PM2.5 monitors to be serviced and shipped from the UK to AfriqAir, a consortium of 15 global institutions dedicated to improving air quality in Africa. This is a first step in increasing reference-grade monitoring capacity in Africa, where only 7 out of 54 countries provide reliable, real-time air pollution monitoring, despite the region recording some of the highest fine particulate levels in the world. Without our support, the 25 monitors – valued at ~$1m if purchased new - would likely have been scrapped.

We initiated our clean air programme in Ghana

In 2021, we identified Ghana as our next lighthouse geography and developed a strategy focused on capacity building on data generation, analysis and communication, supporting key influencer groups to engage on clean air, and assisting with air quality management implementation planning.

12 Polish mayors committed to Low Emission Zones

EUROPEAN UNION[3]

The European Commission initiated a revision of the EU’s Air Quality Directives to align more closely with the revised WHO air quality guidelines. This provides an exciting opportunity to influence air pollution levels right across the 27 member states of the European Union. In Bulgaria, three rounds of national elections stymied progress on air pollution with policy makers.

We successfully influenced the process for the EU Air Quality Directive revision

In March, the European Parliament adopted a Resolution to revise the EU Air Quality Directive based on the new WHO guidelines. We funded a report by the European Environment Bureau revealing all but two EU Member States (Slovakia and Belgium) have National Air Pollution Control Programmes that are inadequate in terms of the National Emission Reduction Commitments Directive. These findings were included in the resolution.

With our support, Za Zemiata brought together 13 Polish NGOs and 15 Bulgarian NGOs to call for the revised Air Quality directive (which will be set in 2023) to be fully aligned with WHO guidelines, sending a strong message from two of the most polluted countries in the EU. Clean Air Fund echoed this call, submitting our own feedback as part of the public consultation.

We supported better designed LEZs that are based on real-world data

We are supporting The Real Urban Emissions (TRUE) Initiative to study real-world passenger vehicle emissions in Warsaw and Bulgaria, with the results providing scenarios for low emission zone implementation and its associated impacts on transport emissions. The research was shared with city officials in Sofia to inform the launch of a pilot LEZ in 2022. Political engagement in Warsaw continues, with the aim of ensuring maximum uptake of the results in 2022.

€10BN secured for Poland’s National Clean Air Plan thanks to successful advocacy by grantees

Our grantee Polish Smog Alert, supported by other NGOs in Poland, successfully advocated for substantial funds to tackle air pollution in the National Recovery Plan of Poland (funded by the European Commission). This will primarily support the replacement of coal-fired boilers used for household heating, development of electric vehicle charging infrastructure and electrification of public transport fleets.

Revised legislation enabled LEZ implementation and won support of 12 mayors

A coalition of organisations we supported - including the Foundation for Electric Vehicles Promotion (FPPE), PSA and the European Clean Air Centre (ECAC) - worked closely with the Ministry of Climate, the Prime Minister’s Plenipotentiary for Clean Air and MPs to adopt LEZ-friendly legislation. Our support for The Union of Polish Metropolis and the Polish Association of Alternative Fuels (PSPA) – through ECF – saw them sign a public

declaration supporting the accelerated roll out of LEZs across the 12 member cities and beyond.

The Polish government allocated €250MLN to electrify the public bus fleets

After strong advocacy by our grantee FPPE, the Polish government has provided crucial financial support to cities to electrify their public bus fleets. FPPE worked with the government to run a public-facing webinar on the initiative. Thanks to the support received, around 1,500 zero-emission buses and trolleybuses will be introduced in Polish cities in the coming years, tripling the number of zero-emission buses.

Advocacy success: Sofia strengthened its air quality plan

Our grantee Za Zemiata coordinated 7 NGOs to jointly demand changes to Sofia’s Air quality plan. In response, the city agreed to: commission additional studies to inform their plan, develop a programme to replace lowefficiency furnaces in private homes and bring in a LEZ in Sofia in mid-2022.

  1. Including Eastern and Southeastern Europe

68

Indian businesses joined Forum for Clean Air

INDIA

Amid economic decline (compared to forecast growth pre-COVID), the Government of India is under pressure to prioritise the economy over environmental impact. Discussions around development of a national Clean Air Mission for India have progressed and could create new opportunities for our work.

The upcoming publication by the Government and UNEP (CCAC) of an annual air assessment report, funded by us, has received backing from the Ministry of Environment, Forest and Climate Change and the Central Pollution Control Board.

We identified hotspots and pushed for government action in Delhi and Uttar Pradesh (UP)

Delhi and Uttar Pradesh, our two focal States, have some of the worst polluted locations in India. The State Governments are adopting the ‘pollution hotspot identification and management’ based approach to fix the problem.

In UP, we are supporting the incubation of an integrated decision support system within the UP Pollution Control Board and the UP Environment Department. With our funding, CEEW is also working to identify hotspots across 17 cities within UP to catalyse both government and public action.

In Delhi National Capital Region, we are supporting an in-depth analysis of low-cost sensors to understand the opportunities and barriers to scaling up in India. Based on the recommendations, the Gurgaon Metropolitan Development Authority will decide what low-cost sensors to deploy to inform policy choices across Gurgaon and

(potentially) Faridabad. We are also working with the city level government, South and East Delhi Municipal corporations, on management and control of air pollution in their jurisdiction. Our grantee, Local Governments for Sustainability together with Urban Local Bodies, are codesigning air quality management plans, capacity building initiatives, and providing implementation support.

A new Parliamentary forum got off the ground

Our grantee, Swaniti Initiative, supported the creation of a Parliamentarians Group for Clean Air, an alliance of MPs formed to raise awareness around air pollution. Swaniti are compiling briefings on various air quality issues to bring attention to those during upcoming Parliament sessions.

Health care professionals led public education on the health impacts of air pollution

We coordinated businesses to commit to action on air pollution

2,000 public health centres in Chattisgarh state are now displaying posters on air pollution and health that were developed in collaboration with the State Health Resource Centre. Posters and communication toolkits on air pollution and its health effects in English, Hindi and five other regional languages have been pushed out on social media channels and have garnered a reach of 22,000 + individuals.

Almost 70 business leaders have joined the India CEO Forum for Clean Air and pledged to develop and scale up sustainable business models, exceeding our target of attracting 50 businesses. The Confederation of Indian Industry backed the report we commissioned from Dalberg consultancy: Air Pollution in India and the Impact on Business. This publication highlighted that toxic air costs Indian businesses $95 billion per year (or 3% of the country’s GDP). Two Indian businesses, Mahindra and Wipro, joined the WEF Alliance for Clean Air which was launched at COP26.

4 UK clean air zones expanded or implemented

UNITED KINGDOM

Following the inquest into Ella Adoo Kissi-Debrah’s death, in April 2021 the Coroner’s Prevention of Future Deaths report made several recommendations, including to national government, on reducing particulate matter and setting legally binding targets in line with WHO air quality guidelines. The Environment Bill became law, mandating the government to establish targets for PM2.5 by October 2022 and to produce a new National Air Quality Strategy within the year.

Together with grantees, we provided eight cities with evidence of the benefits of Clean Air Zones

London’s Ultra Low Emission Zone (ULEZ) was made 18 times larger, covering 3.8 million more people. Roadside nitrogen dioxide (NO2) pollution reduced by 36% in the zone in the first six months of the initial ULEZ according to City Hall. London also estimated that CO2 emissions fell by 4% within six months. Birmingham introduced a class D CAZ in June which reduced NO2 levels by up to 20% in the first three months of operation. Bath’s new class C CAZ – the first in England outside London — contributed to a 14% reduction in NO2 in its first quarter. Portsmouth launched a Class-C CAZ in November. Six UK cities are planning to introduce CAZs in 2022.

We supported commitment to and implementation of these CAZs. With our support, Asthma + Lung UK mobilised a new generation of youth campaigners in Birmingham, Manchester and Liverpool and inspired a stream of positive media stories.

We also commissioned research from CBI Economics that demonstrated the economic benefits of CAZs. The findings indicated the CAZs could deliver an 18% (5 µg/m3) reduction in NO2, prevent at least 1% of deaths and inject millions of pounds into city economies. They received widespread media coverage and have been used by Manchester and Birmingham’s mayors to support the introduction of CAZs.

We made clean air a priority issue in the local and mayoral elections

We supported Asthma + Lung UK, Choked Up, the Conservative Environment Network, the Environmental Defence Fund Europe and Mums for Lungs to deliver impactful campaigns in the run-up to the 2021 local and mayoral elections. This contributed to the inclusion of clean air in leading candidates’ election platforms in London, Birmingham, Manchester and Liverpool[4] and a clean air hustings that attracted significant engagement on social media, demonstrating public demand for action on air pollution.

The results were encouraging, with the Mayors of Birmingham, London and Manchester committing to, or introducing, CAZs once elected.

  1. Policies proposed by our grantees included the expansion of the London Ultra Low Emission Zone, cleaning up London’s Red Routes, Zero emission buses, increasing charge-point provision, increasing bike usage by improving storage and cycle paths, improving connectivity through public transport and improving energy efficiency in homes and buildings. These positions were supported by media and digital engagement campaigns in London, Greater Manchester, Liverpool and the West Midlands.

We supported civil society’s demand for new national targets on PM2.5

We campaigned for the WHO target for PM2.5 to be in the Environment Bill and advocated hard for legislative ambition with a coalition of campaigners. We supported the members of the Healthy Air Campaign to shape two direct calls to the Prime Minister to bring PM2.5 targets in line with tighter WHO limits. Despite not getting the WHO target agreed, campaigning efforts laid the groundwork for the battle next year when the target for PM2.5 will be set.

2021: TEN THINGS WE LEARNED

We are continually learning about the barriers to change, the opportunities to achieve greater impact, and where we can improve.

3 [MANY CLIMATE DECISIONS IGNORE ] THE HEALTH, ECONOMIC AND SOCIAL CO-BENEFITS OF CLEANER AIR. This is

5 [DISADVANTAGED GROUPS, OFTEN THE ] MOST AFFECTED, TEND TO BE THE LEAST INCLUDED IN CLEAN AIR WORK. Analysis

9 [BUSINESSES ARE RELATIVE NEWCOMERS ] TO THE ISSUE OF AIR POLLUTION. First-

6 [BUILDING LOCAL SUPPORT FOR CLEAN AIR ] MEASURES THROUGH CONSULTATION AND ENGAGEMENT IS VITAL. Not only does it

unlock political support, but it pre-empts potential pushback and enables measures like clean air zones to be implemented quickly and positively.

8 [ENGAGING WITH A FEW KEY CHAMPIONS ] IN THE HEALTH CARE SECTOR IS THE BEST STARTING POINT. This is preferable to engaging with the health sector as a whole due to the ongoing focus on the pandemic. Some high profile champions have built platforms to influence policy during the pandemic, and many respiratory doctors are now on high-level advisory panels.

10 [INTERNATIONAL NETWORKING ] OPPORTUNITIES ARE NEEDED FOR THE CLEAN AIR MOVEMENT. The Clean Air Fund plays a role in cross-fertilising ideas. For example, we facilitated a workshop on CAZ/ LEZ implementation to share insights from the UK with policy makers in Poland. We need to systematically identifying ‘bright spots’ of good practice and facilitate discussions among campaigners about what works.

OUR GOALS FOR 2022

Our current strategy covers 2019-22. Our goals for 2022 are summarised here.

FUNDING

We will continue to fundraise for air quality projects that we and others deliver. In addition to renewing and growing our grants with existing donors for 2023 at a level that allows us to grow our impact, we aim to raise $5-$10m in new income from foundation funders. We will also finalise our approach to corporate funding and build a pipeline of prospective corporate funders. We will highlight the low levels of air quality funding and continue to focus on increasing both the quantity and impact of funding.

GRANTMAKING

We will keep driving change through our geographic and thematic portfolios, awarding $13.7m worth of projects (multi-year or lifetime value) over the next 12 months. Ambitious targets developed for each portfolio include: strong new national laws and local regulations, major city-level clean air initiatives, packages of support to boost air pollution management, new air quality data to inform policy making, and a ground-breaking toolkit on measuring corporate air pollution. We will strengthen our strategic partnerships with C40, WHO, UNEP, the World Economic Forum, among others, driving political and corporate action and increasing our expertise and impact.

STRATEGY AND EVALUATION

We will finalise our next four year strategy for 2023 to 2026. Through our global advocacy strategy, we will set out how to secure global leadership and action on clean air. We will also define and agree the next phase of our health and global advocacy strategies, and select a third state for action in India. We will continue to demonstrate our impact and identify lessons to strengthen air pollution programme for Clean Air Fund and the wider field.

DEVELOPING THE MOVEMENT

We will drive clean air up the global policymaking agenda at key political moments, amplifying diverse voices, and maximising reach and engagement through flagship events and publications. We will deepen our focus on Africa through existing and new grants and also push for the inclusion of messages on air quality at the UN Climate Change Conference (COP27) in Egypt. By convening our grantees and other NGOs, we will facilitate capacity building and learning. We will also develop our field building approaches to support early childhood development efforts.

BUILDING THE ORGANISATION

We will continue to build and strengthen the organisation by recruiting two new Board members. Also, we will develop the legal frameworks and system to support our growing international operations in Ghana, India and the US.

OUR STRUCTURE, GOVERNANCE AND MANAGEMENT

OVERVIEW

are funder Trustees and three are independent Trustees. The Chair is one of the independent Trustees. All Trustees are also Members.

Clean Air Fund is a charitable company limited by guarantee (registered company number 11766712), constituted in 2019 and governed by its Memorandum and Articles of Association. Clean Air Fund is a charity registered in England and Wales (registration number 1183697) under the Charities Act 2011. The Charity had two subsidiary organisations at 31 December 2021:

Trustees serve a four-year term from their date of appointment. Trustees are eligible to serve up to three full terms. Trustee appointment is confirmed at an annual general meeting of the Board.

New Trustees are appointed following a selection process based on our needs, and gaps in expertise of existing Board members. Potential new Trustees meet with the Executive Director and Chair of Trustees to assess fit with the organisation. New Trustees receive an induction briefing from the Executive Director and the senior leadership team and access to relevant policy documents covering their legal and regulatory responsibilities as well as relevant information about Clean Air Fund.

CAF Trading Limited, a UK registered company (13318649), incorporated on 7 April 2021

Clean AF Foundation India, an Indian registered company (U85100DL2021NPL391210), registered on 14 December 2021

PUBLIC BENEFIT

As a charity, Clean Air Fund is a Public Benefit Entity. The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit including (PB2 Public Benefit: Running a Charity).

The Board of Trustees updated our Board skills matrix and in December 2021 reviewed Board meeting agendas and concluded that the most important focus areas for future Board meetings are strategy, impact, people and culture.

As a funding organisation, we work through the organisations we fund, which includes NGOs and research organisations. Our beneficiaries are people living in the countries and cities in which our partners are working to clean the air. Ultimately, the beneficiaries are much wider, as our aim is to improve air quality globally so that the lives of every individual in the geographies we work will benefit from these improvements. We coordinate a collective strategy for air pollution activity, provide grant funding to a multi-national portfolio of clean air programmes, grants funds to research and knowledge-building activities, and provides a means of knowledge sharing and networking between stakeholders.

TEJPREET SINGH CHOPRA

Appointed 15 January 2019

KATHERINE GARRETT – COX (CHAIR) Appointed 5 February 2019

JUSTIN JOHNSON Appointed 5 February 2019

IVAN VATCHKOV Appointed 10 February 2020

BING HAO Appointed 1 February 2022

PATRICIA ATKINSON Resigned 6 November 2021

THE BOARD OF TRUSTEES

DOMINIC WAUGHRAY Resigned 30 October 2021

The Board of Trustees is the governing body of the organisation and has legal, financial and managerial responsibility for the Charity. Clean Air Fund has five Trustees of which two

SENIOR LEADERSHIP TEAM

The senior leadership team (SLT) of the Clean Air Fund compromises of 5 members, the Executive Director as well as the other directors of the organisation.

Executive Director JANE BURSTON May 2019

Director of Finance & Operations MIKE SAXTON April 2020

Director of Programmes GILLIAN HOLMES June 2020

Director of Strategic Partnerships & Communications

SEAN MAGUIRE January 2021

Director of HR

LIZ BOONMAN-SALGADO August 2021

The purpose of the SLT is to set Clean Air Fund strategy and drive its implementation, to help achieve clean air for all. It focuses on strategic issues and the setting and revision of organisational process. The SLT’s key responsibilities cover people and culture, strategy and impact, organisation and planning, and risk and reputation. This is the first year the full SLT has been in place.

The remuneration of the Executive Director and key management are based on a combination of philanthropic and not-for-profit market rates. The Executive Director’s remuneration is reviewed annually by the Trustees.

DECISION MAKING

The Trustees, together with the Executive Director and the SLT, comprise the key management of the charity in charge of directing and controlling, running and operating the charity on a day to day basis.

The Trustees have delegated certain authorities for decision making to the Executive Director (on grant making and daily operations) and to the Grants and Charitable Activities Committee (on grant making and other charitable spending), the significant decisions of which are reported and monitored at each Board meeting.

FINANCE, AUDIT AND RISK COMMITTEE

The Finance, Audit and Risk Committee is a sub-committee of the Board. The Committee’s membership includes designated Trustees and independent advisors with relevant technical expertise.

The Committee meets at least twice per year to consider budgeting and financial planning, financial reporting, risk management and audit, assurance, systems and controls.

GRANT AND CHARITABLE ACTIVITIES

COMMITTEE

The Grant and Charitable Activities Committee is a sub-committee of the Board. The Committee’s membership includes designated Trustees, independent advisors with relevant technical expertise, and donors that have contributed at least $500,000 per year to the pooled fund.

The Grant and Charitable Activities Committee meets at least three times per year to consider in-country strategies and potential grant awards.

GRANT MAKING POLICY

Grant making within Clean Air Fund is guided by the Grant Making Policy, the key principles of which are outlined below:

Principles relating to Clean Air Fund’s strategy

Principles relating to Clean Air Fund’s values

The Committee meets prior to the Board meetings and a report from each meeting is taken to the Board.

RISKS

The Trustees in conjunction with the SLT are responsible for the management of the risks faced by Clean Air Fund. This is documented in Clean Air Fund’s risk management policy which sets out our risk management principles and roles and responsibilities. The policy covers the major strategic, financial, legal and operational risks to which the charity may be exposed.

All major risks are documented within a risk register. The risk register grades the risks according to their importance by assessing the likelihood and level of impact of each risk both before and after any mitigating actions. The risk register is updated and reviewed on a quarterly basis by the SLT, and is also reviewed by the Finance, Audit and Risk Committee on a six monthly basis and by the Board on an annual basis. Where necessary, Clean Air Fund also creates and maintains risk response plans for specific topics; currently the only such plan is for funding renewals.

Clean Air Fund’s risk appetite is determined by the Board. We are prepared to take programming and grant-making related risks within accepted limits, for instance supporting innovative programmes whose outcome is uncertain.

The principal risks identified by the Trustees are:

■ Fast organisational growth, especially international growth creates the challenge of compliance with law and regulations in different jurisdictions. This risk is mitigated by having senior staff with international management expertise, hiring high quality local advisors and having a strong set of organisational policies and processes.

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Clean Air Fund: 2021 Annual Report and Accounts
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MOMENTUM IS

GROWING

The Trustees are satisfied that plans, systems, controls and policies are in place to mitigate and manage exposure to such major risks identified by the Trustees.

FINANCIAL REVIEW Multi-year financial review

We have two key financial goals as part of our four-year strategy;

initiatives we have encouraged). To date we estimate that we have leveraged an estimated $20m and influenced around an additional $55m more.

  1. Secure $100m of funding for the clean air movement, pooled through or aligned with Clean Air Fund.

During 2021 we made significant progress against our disbursement goal, awarding $13m of new projects. We signed $11.5m of new grant agreements, taking the total multi-year grant commitments to $27m since 2019. In addition, we signed $1.4m of contracts for direct charitable activity that is used to support and amplify our grant-making and our grantees. We are on track to achieve the $40m target by the end of 2022.

  1. Commit to the disbursement of the majority of funds raised to organisations working to achieve clean air for all, including signing at least $40m of grants from the first tranche of secured funding.

We have exceeded the income goal with total funding secured directly and leverage being over $130m. In 2021 direct funding secured by CAF increased by $2m to $56m. In addition to the funding we’ve raised directly ourselves, we have had a wider impact through ‘leveraged funding’ (i.e. co-funding or funding to scale up pilots made possible by CAF) and ‘influenced funding’ (i.e. new funding for air quality

Below is a table of our financial results over the past 3 years and a brief summary of our sources of income, areas of expenditure and overall financial results for 2021.

SUMMARY OF INCOME AND EXPENDITURE

USD $m 2019 2020 2021
Total Income 15.2 10.9 17.8
Total Expenditure 10.1 7.2 11.8
Net Movement in Funds 5.2 3.7 6.0
Fund balance 5.2 8.9 14.9
Restricted 0.0 0.5 0.9
Unrestricted 5.2 8.4 14.0

2021 Financial Statements Review

INCOME: $17.8M

Clean Air Fund’s income in 2021 came from large scale grants from philanthropic funders. Total income recognised during the year relating to these grants was $17.8m ($10.8m in 2020). Income is recognised in line with Clean Air Fund’s accounting policy (when there is entitlement to the funds, receipt is probable and the amount is measurable) which means there is significant variation in annualised income depending upon our funders’ profile of payments and mid-grant review processes across different financial periods. This accounting difference is the primary reason for the 66% ($7.0m) increase from 2020, as well as some additional project related funding.

The majority of Clean Air Fund’s 2021 income ($14.4m, 81%) relates to unrestricted funds and is received into the central pooled fund, allocated across projects in our portfolios and supporting the organisation. A small percentage of income ($3.4m, 19%) is from restricted grants (where the funder has placed a geographic or project restriction on the use of funds). This amount increased in year due to a $1.2m donation specifically towards our Breathe Providence project, as well as funds restricted to spending on Clean Air Fund organisational development.

EXPENDITURE: $11.8M

The most significant area of Clean Air Fund’s expenditure relates to grants to third party organisations. We also deliver charitable activities through service contracts with non-charitable organisations (which we call Direct Charitable Activity or DCA), and on some occasions Clean Air Fund delivers charitable activities itself.

Total charitable activities expenditure represents 99% of total expenditure. In 2021 this was $11.7m (2020 - $7.1m), an increase of $3.6m (51%). The primary driver of expenditure increase is growth in our Global grants towards our work on data, cities, health and international campaigns. Charitable expenditure is broken down by:

SUMMARY OF FINANCIAL KPIS

SUMMARY OF FINANCIAL KPIS
2019 2020 2021
Average FTE 4.2 12.3 22.9
Funds awarded to Partners 8.9 8.6 13.0
($m)
% Total Expenditure Awarded 87% 82% 77%
To Partners
Grant disbursements ($m) 1.7 6.2 6.7

FINANCIAL RESULTS

Clean Air Fund’s net income on our unrestricted fund at year end was $5.6m (2020 - $3.2m). This serves two purposes: firstly, to provide the initial free reserves for the charity and secondly to fund future grant commitments – including planned grant expenditure with partners pending formal grant agreements. There was also $0.4m of net income on our restricted funds at year end, which are expected to be utilised during 2022 and 2023.

BALANCE SHEET

At the end of 2021, the majority of Clean Air Fund’s assets were cash and bank deposits of $18.3m (2020 - $13.4m).

The main liabilities of Clean Air Fund are grants payable. At the end of 2021, these totalled $4.8m (2020 - $4.7m), of which $4.6m are payable within 12 months of year end and $0.2m is payable in more than 12 months. Driven by the annual review clause we have seen a reduction in the fund’s liabilities above 12 months.

The closing position was total funds of $14.9m (2020 - $8.8m), of which $14.0m (2020 - $8.4m) were unrestricted and $0.9m (2020 - $0.4m) restricted.

RESERVES POLICY

The Trustees aim to maintain free reserves in unrestricted funds at a level which equates to between four to six months of unrestricted charitable expenditure. The Trustees consider that this level will provide sufficient funds to respond to applications for grants and ensure coverage of support and governance costs.

The Trustees also consider contingent grant commitments (where grant commitments are contingent on future performance milestones) when considering the appropriate level of reserves. Trustees may decide to earmark unrestricted reserves as designated funds for these contingent liabilities. The Trustees may, at their discretion, ring-fence further unrestricted funds for future essential spend or for a specific purpose.

The end of 2022 represents the end of a strategic period for CAF. As CAF makes applications for grant renewals from its donors, the Trustees decided to hold funds from this first strategic period to cover the value of grants that have been made in the period, but for which funds have not yet been allocated.

Combined, this is $11.2m, of which $5.0m is funds that will be spent on our planned budget deficit in 2022 and $6.2m is funds for future years of grants we have awarded but not yet committed. The total reserves at year end were $14.9m. Total free (unrestricted) reserves were $14.0m, consisting of: the $11.2m planned deficit and future year grants; $1m core reserve - in line with our reserves policy; and $1.8m temporary unallocated reserves, which will be allocated during 2022.

GOING CONCERN STATEMENT Clean Air Fund’s current financial position is strong and 2022 plans are based upon confirmed funder income. As 2022 marks the end of Clean Air Fund’s first strategic and funding period, the majority of the CLEAN organisation’s donor renewal decisions for 2023 onwards will be taken over the twelve month period from July 22 – June 23. There is therefore some temporary funding uncertainty for the 2023 financial year and beyond. Clean Air Fund has a strong relationship with all existing funders and expects renewal funding to be similar or higher than the current funding levels and therefore we have confidence that AIR we will have sufficient funds to continue to operate as a going concern. Taking into account the current strong financial position, our cash-flow projections and likelihood of renewal funding, the Trustees and the SLT believe that Clean Air Fund has adequate financial resources to continue to operate and implement our plans. Accordingly, FOR the financial statements have been prepared on the going concern basis. ALL

ADDITIONAL POLICIES

INVESTMENT POLICY

In order to create a working environment that safeguards our beneficiaries and stakeholders Clean Air Fund will:

Clean Air Fund does not have an endowment and therefore investment is not a major part of the Fund’s activities. Clean Air Fund’s funds are held to support future grant expenditure. The aim of the investment policy is to minimise risk and protect capital security and therefore such assets are held as cash, invested to obtain a yield where possible. We had no investment income in year due to virtually zero interest rates on USD and GBP deposits. With some rises in interest rates expected during 2022 we will expect to obtain some investment income on cash deposits placed in line with our policy.

FUNDRAISING

Clean Air Fund does not undertake any public fundraising activities that meets the Charities Act 2016.

SAFEGUARDING AND CHILD PROTECTION

Clean Air Fund is committed to sector wide best practice with regards to safeguarding and child protection. Clean Air Fund is committed to:

REMUNERATION

None of the Trustees are remunerated for their services to the charity.

The remuneration of the Executive Director and key management are based on a combination of philanthropic and not-for-profit market rates. The Executive Director’s remuneration is reviewed annually by the Trustees.

Staff salaries are based upon set pay scales which are set with reference to philanthropic and not-for-profit market rates. Any increments to staff salaries are proposed by the SLT and ratified by the Trustees.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also the directors for the purposes for company law) are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable law and regulations and United Kingdom generally accepted accounting practice (United Kingdom accounting standards) including FRS 102 (The Financial Reporting Standard) applicable in the UK and Republic of Ireland.

to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. This Trustees’ report has been prepared in accordance with the provisions applicable to companies entitled to the small companies’ exemption.

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

They are also responsible for safeguarding the assets of the company and hence for 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.

In preparing these financial statements, the Trustees are required to:

So far as the Trustees are aware, there is no relevant audit information of which the charitable company’s auditor is unaware. The Trustees have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.

The Trustees’ Annual Report including the Strategic Report was approved was approved and authorised for issue by the Board of Trustees on 20 July 2022 and signed on its behalf by:

The Trustees are responsible for keeping adequate accounting records that are sufficient

KATHERINE GARRETT-COX, Chair

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF CLEAN AIR FUND

OPINION

CONCLUSIONS RELATING TO GOING CONCERN

We have audited the financial statements of Clean Air Fund (‘the charitable company’) for the year ended 31 December 202 1 which comprise Statement of Financial Activities, Balance Sheet, 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In auditing the financial statements, we have concluded that the trustee’s 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 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.

In our opinion the financial statements:

OTHER INFORMATION

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

BASIS FOR OPINION

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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the trustees’ responsibilities statement set out on page 39 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 determine is necessary to enable the

preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the 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 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

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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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

EXTENT TO WHICH THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient

and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Charities SORP (FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within grant expenditure and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Finance Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, designing and performing audit procedures for grant expenditure, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements

in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

TARA WESTCOTT Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor Cheltenham Date: 26 July 2022

FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL ACTIVITIES

INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

NOTES UNRESTRICTED RESTRICTED TOTAL FUNDS TOTAL
FUNDS FUNDS FUNDS
2021 $ 2021 $ 2021 $ 2020 $
INCOME FROM:
Donations 2 14,410,767 3,424,205 17,834,972 10,771,639
Investments 3 _ _ _ 22,719
Other Income 4 _ _ _ 56,146
TOTAL 14,410,767 3,424,205 17,834,972 10,850,504
EXPENDITURE ON:
Raising Funds 5 128,912 _ 128,912 86,005
Charitable activities 5 8,688,364 2,986,278 11,674,642 7,074,572
TOTAL 8,817,276 2,986,278 11,803,554 7,160,577
Net income before 5,593,491 437,927 6,031,418 3,689,927
transfers
Transfers _ _ _ _
Net income and net 12/13 5,593,491 437,927 6,031,418 3,689,927
movement in funds
RECONCILIATION OF
FUNDS:
Fund balances brought 8,407,596 444,884 8,852,480 5,162,553
forward at 1 January
2021
Fund balances carried 14,001,087 882,811 14,883,898 8,852,480
forward at 31 December
2021

BALANCE SHEET

AS AT 31 DECEMBER 2021

NOTES 2021 $ 2021 $ 2020 $ 2020 $
CURRENT ASSETS
Debtors 9 2,163,550 617,070
Cash at bank and in hand 18,288,050 13,438,760
20,451,600 14,055,830
LIABILITIES FALLING DUE
WITHIN ONE YEAR
Grants payable 10 (4,584,625) (4,073,726)
Creditors 11 (790,581) (513,524)
(5,375,206) (4,587,250)
NET CURRENT ASSETS 15,076,394 9,468,580
LIABILITIES FALLING DUE
AFTER ONE YEAR
Grants payable 10 (192,496) (616,100)
TOTAL NET ASSETS 14,883,898 8,852,480
FUNDS
UNRESTRICTED FUNDS
General funds 14,001,087 8,407,596
RESTRICTED FUNDS 882,811 444,884
TOTAL FUNDS 14,883,898 8,852,480

These accounts have been prepared in accordance with the Companies Act 2006. (Company number 11766712)

Notes 1 – 14 form part of these financial statements.

The financial statements were approved by the members of the Board of Trustees on 20 July 2022 and signed on their behalf by:

All of the charity’s activities derived from All recognised gains and losses are included in continuing operations during the above financial the above statement of financial activities. period.

CHAIR: KATHERINE GARRETT-COX

STATEMENT OF CASH FLOWS

AS AT 31 DECEMBER 2021

Notes 2021 $ 2020 $
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by operating activities A 4,849,290 1,886,182
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received _ 22,719
Net cash provided by investing activities _ 22,719
CASH FLOWS FROM FINANCING ACTIVITIES _ _
Net cash provided by fnancing activities _ _
CHANGE IN CASH AND CASH EQUIVALENTS IN THE PERIOD B 4,849,290 1,908,901
CASH AND CASH EQUIVALENTS AT 1 JANUARY 2021 B 13,438,760 11,529,859
CASH AND CASH EQUIVALENTS AT 31 DECEMBER 2021 B 18,288,050 13,438,760

NOTES TO THE STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31 DECEMBER 2021

A. RECONCILIATION OF NET (EXPENDITURE) INCOME AND NET MOVEMENT IN FUNDS TO NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES

2021 $ 2020 $
NET (EXPENDITURE) INCOME AND NET MOVEMENT IN FUNDS (AS PER 6,031,418 3,689,927
THE STATEMENT OF FINANCIAL ACTIVITIES)
ADJUSTMENTS:
Dividends and interest from investments _ (22,719)
(Increase) / Decrease in debtors (1,546,480) 24,244
Increase / (Decrease) in creditors falling due within one year 787,956 (617,764)
(Decrease) in creditors falling due after one year (423,604) (1,187,506)
Net cash provided by operating activities 4,849,290 1,886,182

B. ANALYSIS OF CASH AND CASH EQUIVALENTS

2021 $ 2020 $
TOTAL CASH AND CASH EQUIVALENTS
Changes in cash and cash equivalents in the year 4,849,290 1,908,901
Cash and cash equivalents at the beginning of the year 13,438,760 11,529,859
TOTAL CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 18,288,050 13,438,760

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

1 ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.

A BASIS OF PREPARATION

The Charity is a charitable company limited by guarantee (registered number 11766712), which is incorporated and domiciled in the UK and is a public benefit entity. The Charity is registered in England and Wales (registered number 1183697). The Charity was incorporated on 15 January 2019 and the year end date was changed from 31 January to 31 December. The Charity started trading on 1 May 2019. These financial statements cover the period from 1 January 2021 to 31 December 2021.

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.

The financial statements have been prepared in accordance with the Charities SORP (FRS102) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Charities Act 2011, and UK Generally Accepted Practice as it applies from 1 January 2015.

The charity constitutes a public benefit entity as defined by FRS 102.

B CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT

Preparation of the accounts requires the Board of Trustees and management to make significant judgements and estimates. The items in the accounts where these judgements and estimates have been made include:

C ASSESSMENT OF GOING CONCERN

The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the Trustees have considered Clean Air Fund’s current financial position, cash-flow and scenario planning forecasts and future funding streams.

Clean Air Fund’s current financial position is strong and 2022 plans are based upon confirmed funder income. 2022 marks the end of Clean Air Fund’s first strategic and funding period, so the majority of the organisation’s donor renewal decisions will be taken over the twelve month period from July 22 – June 23. Therefore, there is some temporary funding uncertainty for the 2023 financial year and beyond. Clean Air Fund is working closely with all existing funders and expects renewal funding to be similar or higher than the current funding levels.

Taking into account the financial position, cash-flow projections and likelihood of renewal funding, the Trustees have concluded that they are happy with the assumptions and that there is a reasonable expectation that the Charity has or will raise adequate resources to continue in operational existence for the foreseeable future. The Charity therefore continues to adopt the going concern basis in preparing its financial statements.

D INCOME

Income is recognised once the Charity has entitlement to the income, it is probable that the income will be received, and the amount can be measured reliably.

Donations received by the Charity, which are made up of grants, include those from donors that provide core funding, or are of a general nature. In the event that a grant is subject to conditions, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the Charity and it is probable that those conditions will be fulfilled, including those committed over multiple years.

Grants received with a restricted purpose are allocated on receipt directly into the correct fund and are not transferred between funds.

E EXPENDITURE

All expenditure is accounted for on an accrual basis and is recognised as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All expenditure is stated inclusive of irrecoverable VAT.

Charitable activities comprise direct expenditure including grant expenditure and direct staff costs attributable to the activity.

Grants are made to institutions and are recognised where the beneficiary has been formally notified in writing of the award. This notification gives the recipient a reasonable expectation that they will receive the oneyear or multi-year grant. In the case of an unconditional grant offer this is accrued once the recipient has been notified in writing of the grant award. Grant awards that are subject to the recipient fulfilling conditions are accrued when any remaining unfulfilled conditions attaching to that grant are outside of the control of the Charity.

The provision for a multi-year grant is recognised at its present value where settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the Charity that would permit the Charity to avoid making the future payment(s), settlement is probable and the effect of discounting is material. The majority of Clean Air Fund grants are accounted for on an annual basis due to an annual performance review within our grant agreements. The grantees performance is seen as being outside the control of the Charity.

Costs of raising funds include staff time incurred seeking new donations and additional funding for the Charity.

F ALLOCATION OF SUPPORT COSTS

Support costs, including general management, financial management, information systems and premises costs, have been allocated to activities based on the average staff time spent. Governance costs are those incurred in connection with the management of the Charity’s assets, organisational administration and compliance with constitutional and statutory requirements. Support costs are allocated on the basis of direct staff costs for each activity.

G DEBTORS

Debtors are recognised at their settlement amount, less any provision for nonrecoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

H CASH AT BANK

Cash at bank represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

I CREDITORS

Creditors are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

L FOREIGN CURRENCY TRANSLATION

Monetary assets and liabilities denominated in a foreign currency are translated into USD at the exchange rate ruling on the Balance Sheet date. Transactions in foreign currencies are recorded at the average rate of exchange for the month the transaction was incurred.

All exchange differences are taken to the statement of financial activities.

2 INCOME FROM DONATIONS

UNRESTRICTED RESTRICTED YEAR TO YEAR TO
2021 $ 2021 $ 31 DECEMBER
2021 $		 31 DECEMBER
2020 $
Grants 14,410,767 3,424,205 17,834,972 10,771,639
TOTAL 14,410,767 3,424,205 17,834,972 10,771,639

3 INCOME FROM INVESTMENTS

M FINANCIAL INSTRUMENTS

J FUNDS STRUCTURE

General funds are unrestricted funds that are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity, and that have not been designated for other purposes. Restricted funds are funds that are to be used in accordance with specific restrictions imposed by donors.

All income and expenditure of Clean Air Fund has been included in the Statement of Financial Activities.

K PENSION COSTS

Contributions payable to defined contribution pension schemes and/or personal pension plans are accounted for in the year in which they are payable.

The Charity 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 the present value of the future cash flows unless the effect of discounting would be immaterial. Financial assets comprise cash at bank and in hand and debtors, including accrued income. Financial liabilities comprise grants payable, other creditors and accrued expenditure.

N TAXATION

Clean Air Fund is a registered charity and, therefore, is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

UNRESTRICTED RESTRICTED YEAR TO YEAR TO
2021 $ 2021 $ 31 DECEMBER
2021 $		 31 DECEMBER
2020 $
Bank Interest _ _ _ 22,719
TOTAL _ _ _ 22,719
4 OTHER INCOME
UNRESTRICTED RESTRICTED YEAR TO YEAR TO
2021 $ 2021 $ 31 DECEMBER
2021 $		 31 DECEMBER
2020 $
Gains on FX movement _ _ _ 56,146
TOTAL _ _ _ 56,146

5 EXPENDITURE

A Charitable expenditure

5 EXPENDITURE
A Charitable expenditure
DIRECT COSTS
GRANTS
(NOTE 6) $
STAFF
COSTS $
OTHER
COSTS $
SUPPORT AND
GOVERNANCE
COSTS $
YEAR TO
31 DECEMBER
2021 $
CHARITABLE ACTIVITIES
UK		 926,077
97,411
644,629
177,398
1,845,515
India 849,728
107,690
284,201
196,119
1,437,738
European Union 1,306,404
180,640
187,352
328,970
2,003,366
Global 3,359,752
820,086
650,669
1,493,490
6,323,997
Africa 138
1,447
59,805
2,636
64,026
TOTAL CHARITABLE ACTIVITIES 6,442,099
1,207,274
1,826,656
2,198,613
11,674,642
RAISING FUNDS -
45,695
-
83,217
128,912
TOTAL CHARITABLE EXPENDITURE 6,442,099
1,252,969
1,826,656
2,281,830
11,803,554

PRIOR YEAR
DIRECT COSTS
GRANTS
(NOTE 6) $
STAFF
COSTS $
OTHER
COSTS $
SUPPORT AND
GOVERNANCE
COSTS $
YEAR TO
31 DECEMBER
2020$
CHARITABLE ACTIVITIES
UK		 1,124,214
104,430
217,377
228.156
1,674,178
India 826,437
103,841
213,500
226,868
1,370,646
European Union 1,690,631
106,006
85,432
231,599
2,113,668
Global 424,393
207,576
777,840
453,509
1,863,317
Africa 47,772
1,439
409
3,143
52,763
TOTAL CHARITABLE ACTIVITIES 4,113,447
523,292
1,294,558
1,143,275
7,074,572
RAISING FUNDS -
27,005
-
59,000
86,005
TOTAL CHARITABLE EXPENDITURE 4,113,447
550,297
1,294,558
1,202,275
7,160,577

B Support and governance costs

YEAR TO YEAR TO
31 DECEMBER 31 DECEMBER
2021 $ 2020 $
SUPPORT COSTS
Staf costs 1,060,831 585,626
Other staf related costs 325,589 73,769
Communications & Events 117,906 159,388
Legal & Professional Services 376,834 82,399
Ofice & IT 238,604 134,016
Consultant Costs 56,272 103,874
Travel 1,872 18,747
Foreign Exchange 60,798 -
TOTAL SUPPORT 2,238,706 1,157,819
GOVERNANCE COSTS
Auditors remuneration 24,847 23,143
Accountancy 5,747 10,855
Trustee Costs - 10,458
Consultant costs 12,530 -
TOTAL GOVERNANCE 43,124 44,456
TOTAL SUPPORT AND GOVERNANCE 2,281,830 1,202,275

6 GRANTS

UK $ INDIA $ EUROPEAN GLOBAL AFRICA $ YEAR TO 31
UNION $ AND DECEMBER
OTHER $ 2021 $
Air for Health - - 43,690 - - 43,690
Association Krakow Smog Alert - - 460,604 - - 460,604
Asthma and Lung UK 267,854 - - - - 267,854
Brown University - - - 493,211 - 493,211
Bulgaria Fund for Women - - 48,751 - - 48,751
C40 Cities Climate Leadership - - - 963,299 - 963,299
Group Inc
Clean Air Asia - 128,916 - - - 128,916
Conservative Environment 56,715 - - - - 56,715
Network
Electric Vehicles Promotion - - 378,023 - - 378,023
Foundation
Ekologichno sdruzhenie Za - - 114,699 - - 114,699
Zemiata
Ella Roberta Family Foundation 183,999 - - - - 183,999
European Clean Air Center - - 50,000 - - 50,000
(ECAC)
Forum Energii - - 220,637 - - 220,637
Great Ormond Street Hospital - - - 133,173 - 133,173
Children’s Charity
Guy’s and St Thomas’ 322,128 - - - - 322,128
Foundation
Health Efects Institute - - - 220,598 - 220,598
ICLEI - 57,070 - - - 57,070
Indian Institute of Technology, - 41,438 - - - 41,438
Kanpur
International Council on Clean - 141,486 - - - 141,486
Transportation (ICCT)
Jhatkaa - 46,914 - - - 46,914
Mahila Housing SEWA Trust - 180,220 - - - 180,220
New Venture Fund - - - 292,325 - 292,325
OpenAQ - - - 423,755 - 423,755
UK $ INDIA $ EUROPEAN GLOBAL AFRICA $ YEAR TO 31
UNION $ AND DECEMBER
OTHER $ 2021 $
Pravah - 71,377 - - - 71,377
Sesame Workshop India - 110,870 - - - 110,870
Swaniti Iniative - 87,600 - - - 87,600
UK100 Cities Network Limited 96,893 - - - - 96,893
University of California, Davis, - - - 30,000 - 30,000
Air Quality Research Center
Washington University in St - - - 215,000 - 215,000
Louis
World Health Organisation (WHO) - - - 300,000 - 300,000
World Resources Institute - - - 291,626 - 291,626
BMJ Publishing Group Ltd (Write (4,010) - - - - (4,010)
Back)
Centre for Ecology, Development - (16,163) - - (16,163)
and Research (Write Back)
-
FX Variance on prior year grants 2,498 - (10,000) (3,235) 138 (10,599)
TOTAL 926,077 849,728 1,306,404 3,359,752 138 6,442,099

PRIOR YEAR

PRIOR YEAR
UK $ INDIA $ EUROPEAN GLOBAL AFRICA $ YEAR TO 31
UNION $ AND DECEMBER
OTHER $ 2020 $
Association Krakow Smog Alert - - 273,262 - - 273,262
Asthma UK and British Lung 60,993 - - - - 60,993
Foundation Partnership
BMJ Publishing Group Ltd 18,721 - - - - 18,721
Centre for Ecology, Development - 80,817 - - - 80,817
and Research
Conservative Environment 52,222 - - - - 52,222
Network
Council on Energy, Environment - 370,520 - - - 370,520
and Water
CWC Environmental 49,329 - - - - 49,329
UK $ INDIA $ EUROPEAN GLOBAL AFRICA $ YEAR TO 31
UNION $ AND DECEMBER
OTHER $ 2020 $
Ekologichno sdruzhenie Za - - 146,661 - - 146,661
Zemiata
Electric Vehicles Promotion - - 253,561 - - 253,561
Foundation
Environmental Defense Fund - 60,000 - - - 60,000
Environmental Defense Fund 404,709 - - - - 404,709
Europe
European Clean Air Centre - - 197,286 - - 197,286
European Climate Foundation - - 32,898 - - 32,898
European Environmental Bureau - - 88,177 - - 88,177
Global Action Plan 22,933 - - - - 22,933
Guy’s and St Thomas’ Charity 409,470 - - - - 409,470
HabitatMap - - - 100,000 - 100,000
Health Efects Institute - - 124,102 - - 124,102
IEMA 40,630 - - - - 40,630
International Council on Clean - - 177,109 - - 177,109
Transportation
OpenAQ - - - 325,443 - 325,443
Purpose Foundation - - 397,575 - - 397,575
Swaniti Initiative - 92,400 - - - 92,400
UK Centre for Ecology & Hydrology - - - - 47,772 47,772
UK100 Cities Network Limited 65,207 - - - - 65,207
United Nations Environment - 222,700 - - - 222,700
Programme
Cape Farewell (written back) (1,050) - (1,050)
TOTAL 1,124,214 826,437 1,690,631 424,393 47,772 4,113,447

7 NET (EXPENDITURE) INCOME BEFORE TRANSFERS

This is stated after charging:

This is stated after charging:
TOTAL FUNDS TOTAL FUNDS
2021 $ 2020 $
Audit Fees (incl VAT) 24,847 23,143

8 STAFF COSTS

YEAR TO YEAR TO
31 DECEMBER 2021 $ 31 DECEMBER 2020 $
Wages and salaries 1,941,406 965,210
Social security costs 218,068 100,521
Pension costs 154,326 70,191
TOTAL 2,313,800 1,135,922

The average number of employees has been analysed over a 12 month period, (by head count), analysed by function, was as follows:


follows:
2021 NO. 2020 NO.
Fundraising 0.5 0.3
Charitable Activities 13.3 7.1
Support 9.1 4.9
TOTAL 22.9 12.3

By 31 December 2021 Clean Air Fund had 23 employees (2020:14).

There were 9 employees (2020:4) who earned $77,000 (£60,000) per annum or more (including benefits) during the year, based on the average exchange rate for the year.

YEAR TO YEAR TO
31 DECEMBER 2021 31 DECEMBER 2020
$81k to $94k (£60k to £70k) 3 2
$95k to $108k (£71k to £80k) 2 1
$109k to $122k (£81k to £90k) 1 -
$135k to $148k (£101k to £110k) 2 -
$195k to $205k (£151k to £160k) - 1
$230k to $243k (£171k to £180k) 1 -
TOTAL 9 4

of the key management personnel were $893,661 (2020: $417,058).

The key management personnel of Clean Air Fund have been defined as the SLT which compromises of the Executive Director, Director of Finance and Operations, Director of Programmes, Director of Strategic Partnerships & Communications, Interim Director of HR and Director of HR. This is the first year all members of the SLT have been in post. The total employee benefits including employer’s National Insurance payments and pension contributions

The Trustees did not receive any remuneration for their services during the period. No Trustees’ were reimbursed expenses for travel and subsistence in the year (2020: 2 Trustees were reimbursed, amounting to $10,458).

9 DEBTORS

YEAR TO YEAR TO
31 DECEMBER 2021 $ 31 DECEMBER 2020 $
Accrued income 2,119,721 590,670
Prepayments 43,829 26,400
TOTAL 2,163,550 617,070

10 GRANTS PAYABLE

YEAR TO YEAR TO
31 DECEMBER 2021 $ 31 DECEMBER 2020 $
GRANTS COMMITMENTS AT 1 JANUARY 4,689,826 6,764,324
Grants awarded in the year 6,472,871 4,114,497
Grants written back in the year (30,772) (1,050)
Grants paid in the year (6,729,205) (6,187,945)
Grant repayment owed 374,401 -
GRANT COMMITMENTS AT 31 DECEMBER 4,777,121 4,689,826
Payable within one year 4,584,625 4,073,726
Payable after one year 192,496 616,100

11 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

YEAR TO YEAR TO
31 DECEMBER 2021 $ 31 DECEMBER 2020 $
Trade Creditors 258,759 181,190
Accruals 467,796 294,718
Social Security costs 64,026 37,616
TOTAL 790,581 513,524

12 MOVEMENT IN FUNDS

AT 1 JANUARY AT 1 JANUARY INCOME EXPENDITURE TRANSFERS AT 31
2021 $ $ $ $ DECEMBER
2021 $
UNRESTRICTED FUNDS
General fund 8,407,596 14,410,767 (8,817,276) 14,001,087
RESTRICTED FUNDS
Pooled Fund – UK and Africa 368,146 911,019 (1,278,873) 292
Clean Air Fund UK pooled 2,210 1,048,850 (875,330) 175,730
Fund
Health Communication 74,528 - (74,528) -
Research
Organisational development - 264,336 (264,336) -
funding
Breathe Providence - 1,200,000 (493,211) 706,789
TOTAL 444,884 3,424,205 (2,986,278) - 882,811
TOTAL FUNDS 8,852,480 17,834,972 (11,803,554) - 14,883,898

We have two funds that operate through the same mechanism as our pooled fund (unrestricted funding) does, however with a geographical focus creating restricted funds. In 2021 these funds were for:

The remaining restricted funds are restricted to specific projects or activities:

PRIOR PERIOD

PRIOR PERIOD
AT 1 JANUARY INCOME EXPENDITURE TRANSFERS AT 31
2020 $ $ $ $ DECEMBER
2020 $
UNRESTRICTED FUNDS
General fund 5,162,553 8,946,695 (5,701,652) - 8,407,596
RESTRICTED FUNDS
Pooled Fund – UK and Africa - 853,590 (485,444) - 368,146
Clean Air Fund UK pooled - 532,527 (530,317) - 2,210
Fund
Health Communication 317,692 (243,164) - 74,528
Research
Collaboration on 200,000 (200,000) - -
India Clear Air Programme
TOTAL - 1,903,809 (1,458,925) - 444,884
TOTAL FUNDS 5,162,553 10,850,504 (7,160,577) - 8,852,480

13 ANALYSIS OF NET ASSETS BETWEEN FUNDS

13 ANALYSIS OF NET ASSETS BETWEEN FUNDS
UNRESTRICTED RESTRICTED TOTAL
FUND $ FUNDS $ 2021 $
FUND BALANCES AT 31 DECEMBER
2021 ARE REPRESENTED BY:
Current Assets 18,367,905 2,083,695 20,451,600
Current Liabilities (4,261,810) (1,113,396) (5,375,206)
Non-Current Liabilities (105,008) (87,488) (192,496)
TOTAL NET ASSETS 14,001,087 882,811 14,883,898

PRIOR YEAR

PRIOR YEAR
UNRESTRICTED RESTRICTED TOTAL
FUND $ FUNDS $ 2020 $
FUND BALANCES AT 31 DECEMBER
2020 ARE REPRESENTED BY:
Current Assets 13,094,980 960,850 14,055,830
Current Liabilities (4,095,169) (492,081) (4,587,250)
Non-Current Liabilities (592,215) (23,885) (616,100)
TOTAL NET ASSETS 8,407,596 444,884 8,852,480

14 TRANSACTIONS WITH RELATED PARTIES

No related parties transactions have taken place with senior management. Clean Air Fund’s Conflict of Interest policy is Board or Grant and Charitable Affairs Committee members who have an interest in any grant awarding decisions do not take part in that decision and disclose any interest.

Justin Johnson (Trustee) currently holds the position of Climate Director at The Children’s Investment Fund Foundation (CIFF) and is a member of the Global Board of directors of C40 Inc. During the year Clean Air Fund received $6,964,336 from CIFF in respect to a grant awarded in 2019. In the year C40 Inc was paid $373,166 in respect of a grant given in 2019

and awarded a new grant of $963,299 of which all was paid in year. He has received no remuneration in his capacity as a Trustee.

Patricia Atkinson (Trustee, resigned 6 Nov 2021) held the position of Chief Programme Officer at IKEA Foundation during 2021. Bing Hao (Trustee) currently holds the position of Head of Project Control at IKEA Foundation. During the year Clean Air Fund received $5,000,000 from the IKEA Foundation in respect of a grant awarded in the previous year. Neither party received any remuneration in their capacity as Trustees.

REFERENCE AND ADMINISTRATIVE DETAILS

REGISTERED NAME

DATE OF INCORPORATION

COMPANY NUMBER REGISTERED CHARITY NUMBER

TRUSTEES

EXECUTIVE DIRECTOR

DIRECTOR OF FINANCE & OPERATIONS DIRECTOR OF PROGRAMMES

DIRECTOR OF STRATEGIC PARTNERSHIPS & COMMUNICATION

DIRECTOR OF HR

COMPANY SECRETARY REGISTERED OFFICE

BANKERS

SOLICITORS

AUDITORS

Clean Air Fund 15th January 2019

11766712 1183697

Katherine Garrett-Cox CBE Patricia Atkinson [resigned 6 November 2021] Tejpreet Singh Chopra Justin Johnson Ivan Vatchkov Dominic Waughray [resigned 30 October 2021] Bing Hao [appointed 1 February 2022]

Helen Jane Burston

Mike Saxton

Gillian Holmes

Andrew Sean Maguire

Elizabeth Boonman-Salgado

Mike Saxton

40 Bermondsey Street London SE1 3UD

HSBC Bank Plc

69 Pall Mall St James London SW1Y 5EY

Mills & Reeve

24 King William Street London EC4R 9AT

Crowe U.K. LLP

Fourth Floor St James House St James’ Square Cheltenham GL50 3PR

Photo credit:

p.4: Pixabay

p.10: Pixabay

p.13: Pexels / Taryn Elliot p.14: Unsplash / DJ Paine p.16: Pexels / Barbara Olsen p.18: Unsplash / Wonderlane p.19: Pexels / Adi Perets p.20: Pexels / Adam Borkowski p.22: Pexels / Abdul Rabbani p.23: Unsplash / Yash Bhardwaj p.24: Pexels / Samuel Wölfl p.25: Pixabay

p.33: Pexels / Guillaume Meurice

p.37: Unsplash / Cynthia Magana

The Clean Air Fund (UK) is registered in England with company number 11766712 and charity number 118369. Registered address: 40 Bermondsey Street, London, SE1 3UD.

info@cleanairfund.org www.cleanairfund.org @cleanairfund