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2022-12-31-accounts

CLEAN AIR FUND 20 22. Annual report and accounts

CONTENTS

CONTENTS
LETTER FROM OUR CHAIR AND EXECUTIVE DIRECTOR 3
TRUSTEES’ REPORT 5
OUR YEAR AT A GLANCE 6
WHY CLEAN AIR? 7
OUR APPROACH 7
STRATEGIC REPORT 11
OVERVIEW 12
ACCELERATING CHANGE AT A GLOBAL LEVEL 14
AIR QUALITY DATA 16
HEALTH 18
ACCELERATING CHANGE AT A NATIONAL AND CITY LEVEL 20
GHANA 20
EUROPEAN UNION 20
BULGARIA 21
POLAND 22
INDIA 23
UNITED KINGDOM 24
10 LEARNINGS AND INSIGHTS FROM 2022 26
OUR STRUCTURE, GOVERNANCE AND MANAGEMENT 28
RISKS 31
FINANCIAL REVIEW 32
KEY POLICIES 36
STATEMENT OF TRUSTEES’ RESPONSIBILITIES 37
INDEPENDENT AUDITOR’S REPORT 38
FINANCIAL STATEMENTS 41
STATEMENT OF FINANCIAL ACTIVITIES 42
BALANCE SHEET 43
STATEMENT OF CASH FLOWS 44
NOTES TO THE STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31 DECEMBER 2022 45
NOTES TO THE ACCOUNTS 46
REFERENCE AND ADMINISTRATIVE DETAILS 62

LETTER FROM OUR CHAIR AND EXECUTIVE DIRECTOR

The clean air movement has grown in strength and ambition over the last 12 months.

From Climate Week in New York to COP27 in Sharm El-Sheikh, the lifting of Covid travel restrictions brought new opportunities to make the case for clean air in global forums and to convene the clean air movement. Campaigners, businesses, funders and policy makers alike were able to forge connections like never before and strengthen the vision we share of a future where everyone breathes clean air.

The rapidly changing context brought challenges too, with Russia’s invasion of Ukraine driving up energy costs and inflation, and political instability in many countries adding to the complexities of advocating for action on air pollution. The focus on cutting energy bills and boosting national self-sufficiency highlighted an ongoing reliance on fossil fuels and fed a growing recognition of the role of renewables.

Against that background, we succeeded in expanding the scale and influence of our grant making and our cross-cutting research, advocacy and strategic communications.

We committed funding to 58 new projects, worth a total of almost $15 million. We grew our annual expenditure on new and live projects by 70%, from $7.8m in 2021 to $13.3 in 2022. We developed our portfolios, making our first grants in Ghana and at an EU level, and building our private sector work. Activities

we deliver ourselves, such as our flagship research publications and accompanying advocacy and outreach efforts, reinforced our grant making and enabled us to draw on our unique perspective as the largest philanthropic initiative dedicating to cleaning the air.

The year marked the completion of our first strategic period (2019-2022) and the beginning of our new Clean Air For All strategy (20232026). Our ambitious plan sets out how we will build on our collective achievements to date and catalyse change at all levels — from grassroots to government and from boardroom to global stage.

In our new strategic period, we will work to drastically reduce air pollution and greenhouse gas emissions, and to increase political recognition of air pollution as a global health priority. With air pollution disproportionately affecting the most marginalized people, we will work with local communities to ensure that the benefits of clean air are equitably secured for all. Our exciting new Breathe Cities programme will bring additional attention and resources to create tangible change at a city level.

We are grateful to all of our funders who have supported us on our journey so far. Thank you too to our grantees, our trustees and our staff whose expertise, passion and commitment enables everything we do.

JANE BURSTON Executive Director

KATHERINE GARRETT-COX CBE Chair of the Board of Trustees

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TRUSTEES’ REPORT

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

OUR YEAR AT A GLANCE

$14.8m

committed to clean air

58 new air quality projects 8 grant making portfolios

2.2m on 1.2m on projects to health campaigns projects and corporate engagement

0.4m on 0.3m Africa on India projects projects

3.3m on air 2.2m on UK quality data projects projects

Global

$59m raised for grants

$76m catalysed for the air quality field

16 members of the corporate Clean Air Alliance

34,000 video views of flagship air quality funding report

EU

$22 bn allocated to Poland’s National Clean Air programme

India

50,000 female construction workers educated on air pollution

92 members of corporate CEO Forum for Clean Air

UK

180,000 responses to public consultation on air quality targets

20-44% NO2 concentrations cut since 2021 London ULEZ expansion

Africa

10 African cities joined C40’s Clean Air Accelerator

65 low-cost sensors and 7 reference grade monitors delivered to Accra

WHY CLEAN AIR?

Air pollution is everywhere. Invisible particles penetrate cells and organs in our bodies: our lungs, heart, blood and brain. Dirty air is a leading cause of heart attacks, stroke and many other diseases.

In addition to harming our health, air pollution is linked to climate change. Some health harming pollutants, like black carbon or soot, have a very high global warming potential. The sources of air pollutants and greenhouse gas emissions are often the same — burning fossil fuels for energy, transport, industry or agriculture.

MORE THAN 90%

of the world’s population breathes harmful, dirty air

7 MILLION PEOPLE

die each year as a result of air pollution

X 2

more people die from air pollution than malaria + tuberculosis + HIV/AIDS

45%

of current global temperature rises are caused by short-lived climate pollutants including air pollutants like black carbon

IT DOESN’T HAVE TO BE THIS WAY.

OUR APPROACH

We accelerate action on clean air through:

DATA

DEMAND DRIVE

Putting compelling evidence Growing public awareness Influencing decision-makers in the right hands and political will to commit to ambitious clean air measures

TOGETHER, WE CAN DELIVER CLEAN AIR FOR ALL.

OUR MISSION

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:

Funding and partnering with organisations across the globe that promote data, build public demand for clean air and drive action;

Influencing and supporting decision-makers to act on clean air, bringing together funders, researchers, policy makers, businesses, and campaigners to build & strengthen the air quality cause; and

Working with communities disproportionately affected by air pollution.

WHERE WE WORK

We work where both the need and potential for impact is greatest. We also run a global programme to raise air pollution up the agenda and encourage decision makers to take action.

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CLEAN AIR FOR ALL STRATEGY: Accelerating action (2023-2026)

In 2022, with pro bono support from Bain, we developed an ambitious new strategy setting out how we will catalyse progress on air pollution. We will work to make a significant impact on air pollution and greenhouse gas emissions, especially in the cities in which we work, as well as securing political recognition of air pollution as a global health priority.

OVER THE NEXT FOUR YEARS WE AIM TO:

Catalyse a total of $250 million in funds for air quality programming

Drive significant progress on reducing air pollution in at least 8 countries and 55 cities

Bring together leaders at all levels to agree international action on air pollution.

Encourage at least 75 multinational companies to commit to ambitious plans to reduce their air pollution footprints across their value chains

STRATEGIC REPORT

SPOTLIGHT ON IMPACT: WE CATALYSED $135M IN NEW FUNDING TO TURN THE TIDE ON AIR POLLUTION

■ Today the Clean Air Fund is the single biggest philanthropic donor dedicated to cleaning our air, having raised $59m of direct funding to our pooled fund in our first strategic period. Crucially, we secured a pioneering funding partnership across climate, health, early childhood development and sustainable mobility funders. Three of our funders tell us that air quality is “the first environmental issue” they have funded.

■ With more funds, and more partnerships built across sectors and issues, the movement can start to turn the tide on air pollution.

OVERVIEW

INCREASED SCALE OF GRANT MAKING

In the last 12 months, we committed funding to 58 new projects, worth $14.8m in multi-year value and a $1.8m (14%) increase on $13.0m in 2021. With our partners, we managed a total of 77 projects. Annual expenditure on new and live projects totalled $13.3m, a $5.5m (70%) increase from $7.8m in 2021.

EXPANDED REACH AND INFLUENCE ACROSS GEOGRAPHIES AND THEMATIC AREAS

In 2022, we made our first grants in Ghana and at an EU level. We increased to eight live portfolios, with another (South Africa) under development, and built our private sector work into a full portfolio with its own team, strategy and grantees. Our geographic portfolios are: EU (including Poland), Ghana, India and UK. Our thematic portfolios are: Advocacy & Campaigns, Data, Health and Private Sector Engagement.

CROSS-CUTTING ACTIVITIES TO COMPLEMENT GRANTS

We carry out some work ourselves at global level to reinforce our grant making. This includes research, advocacy and strategic communication projects. They enable us to make the most of our unique position as the largest philanthropic initiative dedicated to cleaning the air. In the last year, these projects have included another attention-grabbing edition of The State of Global Air Quality Funding report, among other publications, and direct

engagement with decision makers, most notably at the COP27 conference in Egypt in November.

ORGANISATIONAL PROGRESS

In 2022, we focused on delivering against our initial strategic objectives (2019-2022) and preparing our new strategy (2023-2026).

We grew the team from 27 to 36 [1] , adding expertise in Monitoring Evaluation and Learning, health and digital communications, by hiring our first Chief Impact Officer, Head of Health and Digital Communications Manager.

We also expanded our capacity to operate internationally, setting up a new legal entity in India to employ our team there. We hired team members in Ghana, Switzerland and Brussels. [2] In the UK, we moved to a bigger and better office to accommodate the team’s growth.

We have developed our approach to equity in our programming, governance and team, creating an organisational self-assessment tool in preparation for producing a crossorganisational equity vision, strategy and action plan in 2023. We also broadened and enhanced our recruitment practices as part of a concerted effort to increase the diversity of our team.

  1. 28 UK (Nov payroll incorporating maternity cover) plus 2 to join in Jan, 4 India, 1 Ghana, 1 Switzerland

  2. Through an Employer of Record partnership with a specialist provider.

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GLOBAL-
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GLOBAL-
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NEW MULTI YEAR VALUE 21%
PROJECTS BY PORTFOLIO
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ACCELERATING CHANGE AT A GLOBAL LEVEL

Setting the agenda: Research, campaigns, advocacy and strategic communications

HIGHLIGHTING AIR QUALITY FUNDING TRENDS AND GAPS

of air quality on the continent with a headline statistic that 36 times more funding was committed by international development funders to fossil fuel-prolonging projects ($14.6 billion) than air quality projects ($403.6 million) in Africa (between 2015 and 2020). The report was covered widely, including by AFP in English and French (Fossil fuel investment in Africa dwarfs clean air funding). We generated record levels of engagement about the research on social media, including over 3.4k video views on Twitter and a post by climate activist Vanessa Nakate to her 242k followers.

We launched our fourth The State of Air Quality Funding report on UN International Day of Clean Air for blue skies in September. This flagship annual report provides the only global snapshot of clean air funding from donor governments and philanthropic foundation.

This year, we highlighted the fact that air quality funding still receives just 0.5% of total international development funding and less than 0.1% of philanthropic foundation funding. We focussed our analysis and recommendations on Africa, ahead of the ‘Africa COP’ in Egypt. We demonstrated the drastic underfunding

SPOTLIGHT ON IMPACT: WITH OUR BACKING, MORE GRASSROOTS CAMPAIGNERS ARE INSPIRING CHANGE

From Accra to Cairo and Delhi to Warsaw, our support has helped mobilise community campaigners and influential advocates. Around two-thirds of our grants go to grassroots organisations. We have:

MOVING AIR POLLUTION UP THE GLOBAL AGENDA

At COP27, our focus was to raise air pollution up the political agenda, insert it into climate and health narratives and position the Clean Air Fund to build its influence and mobilise funding.

SUPPORTING CAMPAIGNS FOR CHANGE

At a global level, we supported organisations like Campaign Collective and Our Kids Climate to enable advocates to make the case for clean air at international forums such as COP27 and UN Climate week. Our grantee, Campaign Collective provided key strategic support to air quality campaigners globally, working behind the scenes to share key messaging and enable campaigners like Dr Kumar of Health Care Without Harm to take the global stage. We supported Our Kids’ Climate to bring four parent campaigners from across Africa and

India to COP27, where the delegation framed air pollution within the context of children’s rights, pushing to the fore the need to tackle air pollution.

ENGAGING THE PRIVATE SECTOR

Corporate engagement on air quality is gathering pace. The trailblazing corporate Alliance for Clean Air, which we established in partnership with our grantee, the World Economic Forum, has welcomed six new multinational companies, bringing the Alliance membership total to 16. New joiners include pharmaceutical and software giants, GSK, Haleon, Moderna and Oracle, and engineering firm GEA Group. All Alliance members have committed to measuring their air pollution footprint with a view to including air pollution in their corporate sustainability reports. To advance this work, the Alliance launched a ground-breaking guide on how to measure air pollution across value chains and produced a business case toolkit to encourage other companies to follow suit.

We also supported national level activities with businesses. Through a grant to the Confederation Lewiatan business coalition in Poland, we secured commitments from over 20 companies to collaborate on reducing air pollution in their operations. In India, our work with the Confederation of Indian Industry has built support among close to 100 CEOs and developed an interactive website with case studies showcasing best practice.

AIR QUALITY DATA

INCREASING DATA CAPACITY IN AFRICA

There is an urgent need to increase capacity in Africa on air quality data: only 8 out of 54 countries on the continent currently provide air quality data, according to the WHO air quality database. And only 6% of children on the continent live near a reliable ground-level realtime air quality monitor, compared to 72% of children in Europe and North America, according to UNICEF.

To address this, our grantee C40 secured the commitment of 10 African cities to its Clean Air Accelerator programme, up from just one in 2021. This aligns city ambition to WHO guidelines, recognizes clean air as a human right, and commits cities to implementing clean air actions and publicly reporting on progress. C40 also launched their African Cities for Clean Air Programme, providing a first-of-its-kind forum for regional city-to-city cooperation on air quality management.

Another grantee, World Resources Institute, has been generating new information on air quality and its sources in four African cities through their CanAIRy Alert Programme. Using data from local, low-cost sensor networks alongside air quality forecasting and pollution insights tools, the programme enables local air quality managers to forecast pollution episodes and identify and address pollution sources. Its community of practice has brought together academics and government officials in Ethiopia, Ghana, Kenya, Rwanda and Senegal to draw from experiences of Colombia and Mexico.

We also initiated an ambition city-wide data project in Accra, Ghana. The project will provide fully open data from 65 low-cost sensors and seven reference grade monitors, and training workshops for government officials on how to use the data and to effectively implement Accra’s AQ management plan. This will transform the availability of data in Ghana and provide a blueprint for other Breathe cities.

EQUIPPING COMMUNITY ORGANISATIONS WITH AIR QUALITY DATA

The UrbanBetter initiative engaged a diverse group of campaigners in key cities in Ghana, Nigeria and South Africa in an innovative campaign centered around youth and running. Some 10 youth activists led runs with wearable sensors to map their exposure to air quality and their experience of the built environment. In Cape Town, the Mayor joined one of the runs; in Lagos, the Commissioner of Health of Nigeria engaged with the project; and in Accra, local civil society organisations got involved. The project was covered by local press and broadcasters and Africa.com. Follow-up workshops with local campaigners used the data to shape advocacy plans tailored for each city to highlight air pollution with local and national government leaders and the media. The data was also showcased at COP27 through talks, an exhibition and another run. This campaign was effective in drawing attention to the issue and can be easily scaled up or replicated.

BUILDING PARTNERSHIPS WITH KEY GLOBAL INSTITUTIONS

We signed a memorandum of understanding with the US Environmental Protection Agency, one of the world leaders in measuring and tackling air pollution, and supported a collaborative project to improve international data management systems. In addition, we worked closely with UNEP, co-funding projects and convening a cross-UN agency working group, to lay the foundation for better coordination and more impactful guidance materials for the air quality field.

SPOTLIGHT ON IMPACT: TWICE AS MANY COUNTRIES HAVE PUBLICLY AVAILABLE AIR QUALITY DATA

■ Our continued support to the OpenAQ platform has facilitated access to interoperable air quality data from more than 43,000 reference, research and low-cost monitors. More than 23 billion data points have been aggregated from 150 countries, representing 390% more stations and double the countries since 2019.

■ In 2022, six new low-cost sensor partnerships were added to the platform, new user tools developed, and several community events and webinars held. OpenAQ is seeing significant growth in user numbers (now 18 million downloads per month), facilitating potential applications in academic research, data services, public outreach initiatives, modelling and policymaking tools.

■ Also within our air quality data portfolio, we supported the World Health Organization to update its air quality database for the first time since 2018. Launched on World Health Day, this provided member-state ratified annual average data for 6,000 cities in 117 countries for PM10, PM2.5 and, for the first time, NO2.

HEALTH

INCREASING THE REACH OF HEALTH DATA AND RESEARCH ON AIR POLLUTION

With our support, the WHO’s Air Quality and Health Unit released an updated database of air quality data covering over 6,000 cities and conurbations. This database is a critical benchmark for national, regional and global analysis of air pollution challenges in different cities and regions.

We grew our partnership with Health Effects Institute (HEI) , combining forces on media outreach to publicise their State of Air Quality and Health Impacts in Africa and our own From Pollution to Solutions in Africa’s Cities report - released just ahead of COP27. Both featured in international media, reaching health policy makers and donors before, during and after COP.

Other HEI research addressed important knowledge gaps, supporting evidence-led policy making and action. For example, their Air Quality and Health in Cities report provided comprehensive analysis of air pollution and global health impacts for more than 7,000 cities and focussed on the most harmful pollutants including PM2.5 and, for the first time, nitrogen dioxide (N02). It showed striking differences in global patterns of exposure to these two key air pollutants. Exposures to PM2.5 pollution tend to be higher in cities in low- and middle-income countries (LMICs), but exposure to NO2 poses a serious danger to public health across highincome cities as well as LMICs.

AIR POLLUTION AND EARLY CHILDHOOD DEVELOPMENT

Early Childhood Development is the central focus of our new health strategy. We aim to increase attention from global health actors and donors on air pollution as a major threat to child health. We will also fill evidence gaps on the cognitive and physical impacts from air pollution on the youngest children, especially in LMICs. Highlights from the last year:

ACCELERATING CHANGE AT A NATIONAL AND CITY LEVEL

GHANA

LAYING THE FOUNDATIONS FOR BETTER AIR

We are supporting the delivery of action on clean air through a new data initiative in the capital. Clean Air Fund has convened the 13 municipalities across Accra and developed relationships with the Ministry of Environment, Science, Technology and Innovation and Ghana’s Environmental Protection Agency (EPA). The project is deploying 65 low-cost sensors and 7 reference grade monitors across the city and providing training to support municipal staff to use and interpret the data. This will significantly bolster local understanding of air quality, helping to support the implementation of effective policy.

STRENGTHENING DEMAND FOR ACTION ON CLEAN AIR

We are developing new grants to fund youth engagement, train media houses and journalists to better report on air pollution, and accelerate activities to promote pollution-free play for young children attending nursery schools.

FILLING A RESEARCH GAP ON HEALTH IMPACTS

We are partnering with the Gates Foundation through a grant with Columbia University, Kintampo Health Research Centre and Mount Sinai Medical School to conduct a longitudinal study on the short-term and lifelong health impacts of early life air pollution exposures. The grantees will investigate the impacts of prenatal and early childhood exposure to air pollution on children’s health outcomes and the risk of lifelong impacts of noncommunicable diseases.

EUROPEAN UNION

We are building our presence in Brussels to influence the European Commission and EU member states. In 2022, the European Commission put forward a draft Ambient Air Quality Directive (AAQD) which sets a target for all 27 Member States to meet the WHO’s interim targets for PM2.5 and NO2 by 2030. This high level of ambition was achieved thanks to an internal drive within the Commission, alongside pressure from civil society which we reinforced in meetings with EU representatives. The draft Directives will now be considered by the European Parliament and negotiated in the EU Council, where Member States will vote on its adoption.

BULGARIA

BREATHE SOFIA LAUNCHED

The Mayor of Sofia launched a new Breathe Sofia initiative last year, setting out ambitions for air quality standards and committing to address gaps in the city’s capacity. Our grantee, TRUE Initiative, modelled the impact of a low emission zone in Sofia which helped to convince the city to approve the introduction of a pilot LEZ for transport and for heating.

ZA ZEMIATA MOVEMENT GROWS

Our grantee, Za Zemiata, is building momentum, with new local clean air activist groups launched across Bulgaria and now pressing local authorities to take action on cleaning the air. For example, in Dimitrovgrad, a small town in the centre of the country, a newly formed group engaged with local authorities and the Ministry for the Environment and Water secured the closure of a polluting power plant.

SPOTLIGHT ON IMPACT: LAW-MAKERS IN POLAND, THE UK AND THE EU ARE NOW ADOPTING HIGHER STANDARDS

Although many challenges remain, we have seen growing national and regional political commitment and legislative progress across geographies.

■ In Poland, our grantees convinced the Mazovia regional government to adopt a law requiring Warsaw to phase out coal in household heating by 2023.

■ In the UK, we pushed the government to consult on two targets for PM2.5, resulting in over 180,000 responses. We increased pressure by proving that the WHO-10 air quality target is affordable and achievable by 2030 and by coordinating a letter from leading Mayors across the UK calling on the Prime Minister to adopt the WHO guidelines as targets.

■ In the EU, we joined our voice with many others that persuaded the European Commission to propose an air quality target of WHO-10 levels by 2030 .

POLAND

A BREAKTHROUGH IN THE MAZOVIA REGION

The central region of Mazovia is the country’s most polluted area and home to 14% of Poland’s 38 million population. Mazovia’s biggest city, Warsaw, ranks as one of the most polluted cities in Poland with domestic heating as a major pollution source. In 2019, urban Warsaw recorded an annual average PM2.5 level of 21 μg/m3 – more than 4 times the WHO’s guideline level for healthy air.

In April 2022, the Regional Council voted to ban coal-fired household heating in Warsaw by Q3 2023 and in the rest of the region by 2028. This decision will have a major positive impact, as home heating is still dominated by solid fuels, and these ‘low-stack’ emissions are a major contributor to Poland’s unhealthy air, leading to 6,000 premature deaths in Mazovia each year. Moving from coal to zero emission alternatives will cut CO2 emissions by an estimated 3.6 megatonnes per year, the equivalent of 775,000 cars being taken of the roads.

We made strategic grants to support this decision. This included support to Polish Smog Alert and the European Clean Air Centre for everything from briefing legislators and supporting policy drafts to a media campaign to share facts and address misinformation.

BREATHE WARSAW GETS UNDERWAY

The city launched Breathe Warsaw in mid-2022, an ambitious partnership with Clean Air Fund and Bloomberg Philanthropies to improve air quality in Poland’s capital. With 859 cars per 1,000 residents, Warsaw has one of the highest vehicle ownership rates in Europe. Cleaner air will improve public health and economic productivity across the city. If and when Warsaw meets WHO air quality guidelines, an estimated 1,500 deaths could be prevented each year.

Warsaw’s network of air quality sensors across 165 locations is the largest in Europe. Breathe Warsaw will leverage this network to develop a comprehensive air quality database, allowing officials to better understand pollution sources. The initiative will also provide technical assistance and policy research to:

INDIA

Health professionals are galvanising action

Last year, thoracic surgeon and well-known campaigner, Dr Arvind Kumar, launched the Medanta Institute of Research and Advocacy for Clean Air and Health under the umbrella of our Health Care Without Harm grant. One of the largest private hospital groups in India, Medanta, is now promoting awareness of the health effects of air pollution with health staff and patients, and through the Confederation of Indian Industry’s CEO Forum, with companies too. This new institute will further support healthcare professionals to push for change on air pollution.

Health Care Without Harm released a manual for communities impacted by pollution - Tools for Community Environment and Health Monitoring – and helped organise the second virtual ‘Doctors for Clean Air Conclave 2022’ alongside the Ministry of Health & Family Welfare and 10 international and national medical associations.

Dr Kumar has also brought his perspective from India to several global forums, including the Stockholm+50 Pre-Summit on the Global Just Transition from Fossil Fuels, COP27 and a webinar on ‘Cleaning our Children’s Air’ convened by Clean Air Fund.

TARGETED SUPPORT IS PROTECTING THOSE MOST AFFECTED BY AIR POLLUTION

Informal workers, particularly those who work in construction or street trading, are particularly vulnerable to air pollution. Grantees Mahila Housing Trust (MHT) and Purpose conducted training sessions with 60 female construction workers and community leaders on air quality. The training focused on the impact of air pollution on their health and lives and how to protect themselves. MHT has also partnered with a construction workers’ union, enabling outreach to 50,000 construction workers to educate them on the impacts of air pollution. This work concluded with a roundtable event

with Government of Delhi officials, researchers, practitioners, doctors, and women from the community. The project catalysed dialogue between affected communities and the government which resulted in the Government of Delhi committing to provide health camps for construction workers, and to ensure that these workers can access existing Government

compensation schemes when construction is suspended due to very high air pollution levels.

BUILDING CAPACITY BY WORKING CLOSELY WITH REGIONAL GOVERNMENTS

Technical support funded by Clean Air Fund has been welcomed by State Governments and regulatory authorities in Uttar Pradesh and the Delhi National Capital Region. For

example, our grantee the Indian Institute of Technology at Kanpur developed a technical Decision Support System dashboard, working closely with the Department of Environment, Government of Uttar Pradesh, the Uttar Pradesh State Pollution Control Board (Control Board) and the Lucknow Municipal Corporation in the process. The dashboard tool, which was formally handed over to the Control Board following a training workshop, will inform day-to-day decision-making and future policies on air pollution.

Another grantee, ICLEI SA, has worked with the city authorities of Delhi, Meerut and Gurgaon in the National Capital Region of India to help identify key priorities from the detailed Air Quality Management Plans mandated under the National Clean Air Programme. ICLEI is now supporting them to implement the actions identified. In addition, following requests for support, ICLEI facilitated expert training to build the capacity of city officials on air pollution mitigation strategies.

UNITED KINGDOM

SUPPORTING LOCAL AUTHORITIES TO ROLL OUT OR EXPAND CLEAN AIR ZONES

In November, London’s Mayor Sadiq Khan announced a further expansion of the Ultra Low Emission Zone (ULEZ) to cover all of Greater London from August 2023. This is expected to reduce emissions of dangerous nitrogen oxides from cars and vans by around 10% while reducing CO2 emission by up to 150,000 tonnes in outer London. We will be supporting the successful launch of the ULEZ expansion throughout 2023.

In 2022 we supported progress on clean air in cities across the UK:

SECURING GOVERNMENT SUPPORT FOR A PM2.5 TARGET BASED ON THE WORLD HEALTH ORGANIZATION GUIDELINE LIMITS

With the Government legally required to present a new target for particulate matter (PM2.5) to Parliament before the end of October 2022, we provided the evidence to support a campaign from across the clean air field, calling on the government to adopt the World Health Organization’s 2021 interim target for PM2.5, WHO-10, by 2030 rather than their proposed target of WHO-10 by 2040 and a 35% reduction

in population exposure to PM2.5 by 2040. This evidence was presented in a ground-breaking report, The Pathway to Healthy Air in the UK. Based on analysis by Imperial College, the publication showed that the UK could meet the WHO-10 by 2030 with existing and anticipated policies.

We worked closely with the field to galvanise a strong public response to the eightweek public consultation by funding the development and roll-out of a consultation tool. As a result, over 5,000 supportive responses were submitted, a joint letter was published by 16 Local and Combined Authorities pledging their commitment to meeting the WHO-10 target by 2030, and regular media coverage was secured, including two pieces in The Times. The team and field also engaged directly with the Environment Minister, Jo Churchill. At the end of the year, the Government confirmed that it was sticking with their proposed target. This decision continues to be challenged, most recently via ‘Ella’s Law’ which proposes the target of WHO-10 by 2030.

UNDERSTANDING PUBLIC ATTITUDES TO AIR POLLUTION

We commissioned Stonehaven, a political consultancy, to interrogate public attitudes to air pollution and identify messages that will mobilise swing voters in polluted areas ahead of the next General Election.

Stonehaven used focus groups, surveys and modelling and found that, while health messaging works for some sections of the public, framing the issue in terms of the benefits of clean air for the local community generates additional support.

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10 LEARNINGS AND INSIGHTS FROM 2022

We are continually learning about the barriers to change and the opportunities to increase our impact. Here are some of the insights and lessons learned in the last 12 months.

THE LACK OF LOCAL EVIDENCE ON THE HEALTH IMPACTS OF AIR POLLUTION 1 HINDERS ACTION IN LOW- AND MIDDLEINCOME COUNTRIES. Because there is less evidence of the adverse impact of air pollution on people’s health in LMICs compared with high-income countries, air pollution is often not recognized by policy makers as an urgent issue to tackle. To address this, the Clean Air Fund will be investing in high quality research in these areas in the year ahead.

AIR POLLUTION ACTION THAT DELIBERATELY TARGETS CLIMATE CHANGE 3 MITIGATION CAN UNLOCK ACTION AND

FUNDING. Supporting action on black carbon — soot — which is both a shortlived climate pollutant and an important component of particular matter, can inspire both action and funding.

CITY LEADERS ARE STEPPING UP TO THE ‘STRETCH’ TARGET OF WHO’S UPDATED 2 GUIDELINES. Tougher World Health

Organization (WHO) air quality guidelines introduced in September 2021, which effectively halve the recommended safe annual levels of PM2.5 and tighten the limit for NO2 by a factor of four, appear to be driving commitments. At a city level, 48 mayors signed up to C40’s Clean Air Cities Declaration which commits cities to work towards these global standards. At a national and regional levels, the guidelines provide a helpful benchmark for advocacy.

AS A GLOBAL FUNDER, WE CAN OPEN DOORS WITH SENIOR POLICY MAKERS 4

FOR LOCAL PARTNERS. As an international funder we are sometimes well placed to broker support for action and bring senior decision makers to the table with local partners.

CHANGE HAPPENS WHEN EVIDENCE OF THE IMPACT OF AIR POLLUTION GOES 5 HAND-IN-HAND WITH COMPELLING POLICY RECOMMENDATIONS. As part of the clean air movement, we need to offer policy solutions — or support the development of these solutions — and demonstrate the benefits they bring.

ANTICIPATING AND ADDRESSING UNINTENDED CONSEQUENCES IS VITAL. 6 For example, when India’s Supreme Court imposed a temporary ban on construction activities to address air pollution in Delhi, there was a chance that construction workers could lose out on pay. Our grantee, Mahila Housing Trust, raised awareness about the compensation fund the government had set up so that the workers did not lose out.

WE NEED TO EMBED CONTINUOUS REFLECTION, LEARNING AND ADAPTATION 7

INTO OUR PROCESSES. Working across uncertain environments and in fastchanging contexts means that similar programmes in different environments may generate widely different results. Flexible and exploratory approaches, such as Adaptive Management, can support continual learning, adaptation and development.

TESTING WHICH MESSAGES GRAB PEOPLE’S ATTENTION IS VITAL. When 8

making the case for clean air with policy makers, we need to tap into local perspectives and concerns and not assume that ‘off the peg’ messages on public health or climate will resonate with all audiences.

IT IS CRUCIAL TO GALVANISE GLOBAL HEALTH INSTITUTIONS TO ACT ON AIR 9 POLLUTION. Although air pollution was recognised by the UN General Assembly in 2018 as a major global risk factor for premature death and disability, political action hasn’t followed. Air pollution has not been on the agenda of the annual meeting of Ministers of Health (World Health Assembly) since 2016. We will be looking to push air pollution up the agenda in the coming year.

10

GROWING REGULATORY PRESSURE IS ENCOURAGING CORPORATE ACTION.

Regulatory pressure is coming, for example, draft EU corporate sustainability reporting standards include mandatory reporting on air pollution for all companies obliged to report. Companies that get ahead of the curve will be at an advantage, such as members of the Alliance for Clean Air.

OUR STRUCTURE, GOVERNANCE AND MANAGEMENT

OVERVIEW

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 three subsidiary organisations at 31 December 2022:

THE BOARD OF TRUSTEES

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

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.

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).

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 their 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.

The Board of Trustees updated our Board skills matrix during 2022 and met quarterly with Board agenda meetings focusing on strategy, impact, people and culture.

KATHERINE GARRETT–COX CBE

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.

(Chair)

TEJPREET SINGH CHOPRA Resigned 15 January 2023

JUSTIN JOHNSON

IVAN VATCHKOV

BING HAO

Resigned 30 June 2023

GUNJAN SHAH

Appointed 02 November 2022

SENIOR LEADERSHIP TEAM

The senior leadership team (SLT) of the Clean Air Fund compromises six 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

Chief Impact Officer SIETSKE VAN DER PLOEG August 2022

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 setting and reviewing organisational processes. The SLT’s key responsibilities cover people and culture, strategy and impact, organisation and planning, and risk and reputation.

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

DECISION MAKING

The Trustees, together with the Executive Director and the SLT, make up the key management of the charity and are responsible for directing, controlling and running the charity on a day-to-day basis.

The Trustees have delegated certain decision making responsibilities 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.

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

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 approve 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

ruled out of our strategies, including:

Principles relating to Clean Air Fund’s values

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 every six months and by the Board once a year. 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:

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 had two key financial goals as part of our 2019-2022 four-year strategy;

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

  2. 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 funding secured directly and through leveraged sources totalling $136m. In 2022, direct funding secured by CAF increased by $3m to $59m. In addition to the funding we raise directly, 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 initiatives we have encouraged). To date we estimate that we have leveraged an estimated $22m and influenced around an additional $55m more.

During 2022 we achieved our disbursement goal, awarding $14.8m of new projects, taking the total multi-year project commitments to $41.8m since 2019.

Below is a table of our financial results over the past four years and a brief summary of our sources of income, areas of expenditure and overall financial results for 2022.

SUMMARY OF INCOME AND EXPENDITURE

USD $m 2019 2020 2021 2022
Total Income 15.2 10.9 17.8 15.1
Total Expenditure 10.1 7.2 11.8 18.6
Net Movement in Funds 5.1 3.7 6.0 (3.5)
Fund balance 5.1 8.8 14.9 11.4
Restricted 0.0 0.4 0.9 0.9
Unrestricted: Core 5.1 8.4 14.0 3.3
Unrestricted: Designated 0 0 0 7.2

SUMMARY OF FINANCIAL KPIS

SUMMARY OF FINANCIAL KPIS
2019 2020 2021 2022
Average FTE 4.2 12.3 22.9 26.9
Funds awarded to Partners 8.9 8.6 13.0 14.8
($m)
Grant disbursements ($m) 1.7 6.2 6.7 10.1

2022 Financial Statements Review

INCOME: $15.1M

The vast majority of income in 2022 came from large scale grants from philanthropic funders. Total income recognised during the year relating to these grants was $14.9m ($17.8m in 2021). There was also a small amount of interest income and gifts in kind of $0.2m ($0 in 2021) within the total $15.1m income.

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 timing difference is the primary reason for the 16% ($2.9m) decrease in income from 2021.

The majority of Clean Air Fund’s 2022 income ($12.5m, 83%) relates to unrestricted funds and is received into the central pooled fund, which is allocated across projects in our portfolios and to support the organisation. A small percentage of income ($2.6m, 17%) is from restricted grants (where the funder has placed a geographic or project restriction on the use of funds).

EXPENDITURE: $18.6M

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 Charitable Service Contracts or CSCs), and on some occasions Clean Air Fund delivers charitable activities itself.

Total charitable activities expenditure represents 97% of total expenditure. In 2021 this was $11.7m (2021 - $11.7m), 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 into:

The remaining 3% of expenditure $0.5m (2021 - $0.1m, 1%) is related to fundraising and communications activity and consisted of staff time dedicated to finding new donors and communicating about the work of CAF and its grantees.

FINANCIAL RESULTS

Clean Air Fund’s net unrestricted fund result was a deficit of $3.5m (2021 – surplus of $6.0m). The deficit was planned and budgeted for as we utilised a proportion of our four year funding that had been received in the previous financial year.

BALANCE SHEET

At the end of 2022, the majority of Clean Air Fund’s assets were cash and bank deposits of $24.2m (2021 - $18.3m), an increase of $5.9m. The increase was due to $5.6m of advance payments from our funders related to grants commencing in 2023. This balance is matched by a corresponding deferred income liability.

Total liabilities are $14.4m (2021 –$5.6m), an increase of $8.8m. The two drivers of the increase in total liabilities are:

The closing position was total funds of $11.4m (2021 - $14.9m), of which $10.5m (2021 - $14.0m) were unrestricted and $0.9m (2021 - $0.9m) restricted.

ring-fence further unrestricted funds for future essential spend or for a specific purpose.

The year-end total reserves were $11.4m. This is broken down as follows:

GOING CONCERN STATEMENT

Clean Air Fund’s current financial position is strong and during 2022 our major funders renewed their funding to CAF with multi-year commitments from 2023- 2026. Our 2023 plans are based upon this committed income and therefore we have a high degree of confidence that 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, the financial statements have been prepared on the going concern basis.

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.

During 2022, the Trustees created a designated reserves of $7.2m. This reserve represents the contingent liabilities to cover the costs of grant commitments made in 2022 where the expenditure is not yet accounted for (as grant commitments are contingent on future performance milestones and so are contingent liabilities). The rationale for doing so this year was due to 2022 being the final year of CAF’s first strategic period – to align funder income to the full costs of grants made during this period. The Trustees may, at their discretion,

KEY POLICIES

INVESTMENT POLICY

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 a small amount investment income in 2022 on our USD and GBP deposits, which were placed in interest bearing bank accounts and very low risk money market funds.

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:

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

FUNDRAISING

Clean Air Fund does not undertake any public fundraising activities that meet the Charities (Protection and Social Investment) Act 2016.

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 and are reviewed annually. 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.

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.

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

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

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.

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 and authorised for issue by the Board of Trustees on 6 July 2023 and signed on its behalf by

KATHERINE GARRETT-COX CBE, Chair

INDEPENDENT AUDITOR’S REPORT

We have audited the financial statements of Clean Air Fund for the year ended 31 December 2022 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 our opinion the financial statements:

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 are independent of the 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING 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 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 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.

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 its 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 2006 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 37 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.

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 income 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 income, 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.

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.

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: 25 July 2023

FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL ACTIVITIES

INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022

NOTES UNRESTRICTED RESTRICTED TOTAL FUNDS TOTAL FUNDS
FUNDS FUNDS
2022 $ 2022 $ 2022 $ 2021 $
INCOME FROM:
Donations 2 12,343,753 2,597,794 14,941,547 17,834,972
INVESTMENTS 3 103,179 - 103,179 -
Other Income 4 46,908 - 46,908 -
TOTAL 12,493,840 2,597,794 15,091,634 17,834,972
EXPENDITURE ON:
Raising funds 5 (469,780) - (469,780) (128,912)
Charitable activities 5 (15,191,377) (2,734,994) (17,926,371) (11,674,642)
TOTAL (15,661,157) (2,734,994) (18,396,151) (11,803,554)
Net (expenditure)/income (3,167,317) (137,200) (3,304,517) -
before gains & losses on
Investments
Foreign exchange losses (165,003) - (165,003) -
Net (Expenditure) /Income (3,332,320) (137,200) (3,469,520) 6,031,418
before transfers
Transfers (160,103) 160,103 - -
Net (Expenditure)/income 15/16 (3,492,423) 22,903 (3,469,520) 6,031,418
and net movement in funds
RECONCILIATION OF
FUNDS:
Fund balances brought 14,001,087 882,811 14,883,898 8,852,480
forward at 1 January
Fund balances carried 10,508,664 905,714 11,414,378 14,883,898
forward at 31 December

BALANCE SHEET

AS AT 31 DECEMBER 2022

FIXED ASSETS:
Investments
CURRENT ASSET:		 NOTES
10		 2022 $ 2022 $
205,525		 2021 $ 2021 $
-
Debtors 11 1,364,886 2,163,550
Cash at bank and in hand 5,608,600 18,288,050
Investments - Cash deposits 18,587,766 -
25,561,252 20,451,600
LIABILITIES FALLING DUE
WITHIN ONE YEAR:
Grants payable 12 (7,363,935) (4,584,625)
Creditors 13 (6,245,137) (790,581)
(13,609,072) (5,375,206)
NET CURRENT ASSETS 11,952,180 15,076,394
LIABILITIES FALLING DUE
AFTER ONE YEAR:
Grants payable 12 (743,327) (192,496)
TOTAL NET ASSETS 11,414,378 14,883,898
FUNDS:
UNRESTRICTED FUNDS:
General funds 3,308,664 14,001,087
Designated funds 7,200,000 -
RESTRICTED FUNDS 905,714 882,811
TOTAL FUNDS 15 11,414,378 14,883,898

All of the charity’s activities derived from continuing operations during the above financial period.

All recognised gains and losses are included in the above statement of financial activities.

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

Notes 1 – 18 form part of these financial statements. The financial statements were approved by the members of the Board of Trustees on 6 July 2023 and signed on their behalf by

CHAIR: KATHERINE GARRETT-COX CBE

AS AT 31 DECEMBER 2022

STATEMENT OF CASH FLOWS

Notes 2022 $ 2021 $
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by operating activities A 6,010,662 4,849,290
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends and interest from investments 103,179 -
Purchase of investments (205,525) -
Net cash (used in) investing activities (102,346) -
CHANGE IN CASH AND CASH EQUIVALENTS IN THE PERIOD B 5,908,316 4,849,290
CASH AND CASH EQUIVALENTS AT 1 JANUARY B 18,288,050 13,438,760
Cash and cash equivalents at 31 December B 24,196,366 18,288,050

NOTES TO THE STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31 DECEMBER 2022

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

2022$ 2021 $
NET (EXPENDITURE) INCOME AND NET MOVEMENT IN FUNDS
(AS PER THE STATEMENT OF FINANCIAL ACTIVITIES) (3,469,520) 6,031,418
ADJUSTMENTS:
Dividends and interest from investments (103,179) -
Decrease / (increase) in debtors 798,664 (1,546,480)
Increase in creditors falling due within one year 8,233,866 787,956
Increase/(decrease) in creditors falling due after one year 550,831 (423,604)
Net cash provided by operating activities 6,010,662 4,849,290

B. ANALYSIS OF CASH AND CASH EQUIVALENTS

2022 $ 2021 $
TOTAL CASH AND CASH EQUIVALENTS
Change in Cash and cash equivalents in the year 5,908,316 4,849,290
Cash and cash equivalents at the beginning of the year 18,288,050 13,438,760
TOTAL CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 24,196,366 18,288,050
REPRESENTED BY
Cash at bank and in hand 5,608,600 18,288,050
Short term investments 18,587,766 -
24,196,366 18,288,050

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

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 2022 to 31 December 2022.

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 subsidiary undertakings have been excluded from consolidation because inclusion is not material. Clean Air Fund at 31 December 2022 owned three subsidiaries: CAF Trading Limited now dormant, is a UK registered company (13318649), incorporated on 7 April 2021, Clean AF Foundation India, an Indian s8 registered company (U85100DL2021NPL391210), registered on 14 December 2021 also dormant, and Clean AF Services India, and Indian private limited company, (U74999DL2022FTC405832) registered on 13 October 2022.

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:

Timing of entitlement of income as described in the income policy.

Timing of entitlement of grant expenditure as described in the expenditure policy

C ASSESSMENT OF GOING CONCERN

Clean Air Fund’s Board of Trustees have assessed whether the use of the going concern basis is appropriate and have considered feasible 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. Specifically, the Trustees have considered Clean Air Fund’s current financial position, our cash-flow projections and scenario planning forecasts and future funding streams.

Clean Air Fund’s plans are based upon confirmed funder income. 31st December 2022 marked the end of Clean Air Fund’s first strategic and funding period, so the majority of the organisation’s donor renewal decisions for 2023 and beyond have occurred, apart from two donors pending final decision, all funding agreements for the next four years have been signed.

Considering Clean Air Fund’s financial position, cash-flow projections and the renewed funding agreements in place, the Trustees have concluded that they are happy with the assumptions and that there is a reasonable expectation that the Charity will continue in operational existence for the foreseeable future. The Charity therefore continues to adopt the going concern basis in preparing its financial statements.

The financial statements are presented in US dollars and are rounded to the nearest dollar. US dollars is the currency of the primary economic environment in which the entity operates reflecting the currency of both the majority of income and grants awarded.

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.

Other income received by the charity is Gift-inkind (GIK). GIK is a type of charitable giving in which contributions take the form of tangible goods or services or time given instead of money. Clean Air Fund’s reported GIK were donated services, and they were valued at fair market value on receipt of the service.

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

Income received in advance of the start of the grant agreement and with time-related conditions attached to the grants are deferred until the commencement date.

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 one- year 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 total 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.

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.

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.

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. Designated funds are unrestricted funds earmarked for a particular purpose by the trustees. Designation does not legally restrict the trustees’ discretion to apply the fund. During 2022, the Trustees created a designated reserves of $7.2m. This reserve represents the contingent liabilities to cover the costs of grant commitments made in 2022 where the expenditure is not yet accounted for (as grant commitments are contingent on future performance milestones and so are contingent liabilities). Restricted funds are funds that are to be used in accordance with specific restrictions imposed by donors.

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.

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

2 INCOME FROM DONATIONS

YEAR TO 31 YEAR TO 31
UNRESTRICTED RESTRICTED DECEMBER DECEMBER
2022 $ 2022 $ 2022 $ 2021 $
GRANTS 12,343,753 2,597,794 14,941,547 17,834,972
TOTAL 12,343,753 2,597,794 14,941,547 17,834,972

3 INCOME FROM INVESTMENTS

YEAR TO 31 YEAR TO 31
UNRESTRICTED RESTRICTED DECEMBER DECEMBER
2022 $ 2022 $ 2022 $ 2021 $
BANK INTEREST/DIVIDENDS 103,179 - 103,179 -
TOTAL 103,179 - 103,179 -

4 OTHER INCOME

YEAR TO 31 YEAR TO 31
UNRESTRICTED RESTRICTED DECEMBER DECEMBER
2022 $ 2022 $ 2022 $ 2021 $
GIFTS IN KIND 46,908 - 46,908 -
TOTAL 46,908 - 46,908 -

5 EXPENDITURE

A Charitable expenditure

5EXPENDITURE
A Charitable expenditure
DIRECT COSTS
GRANTS
(NOTE 6) $
STAFF
COSTS $
OTHER
COSTS $
SUPPORT
AND
GOVERNANCE
COSTS $
YEAR TO
31
DECEMBER
2022 $
CHARITABLE ACTIVITIES
UK		 1,209,861
238,666
545,934
462,998
2,457,459
India 1,020,020
63,284
87,899
271,885
1,443,088
Europe 2,876,263
271,482
391,283
821,555
4,360,583
Global 5,800,880
642,598
649,703
1,646,621
8,739,802
Africa 580,042
55,838
115,202
174,357
925,439
TOTAL CHARITABLE ACTIVITIES 11,487,066
1,271,868
1,790,021
3,377,416
17,926,371
RAISING FUNDS -
381,271
-
88,509
469,780
TOTAL CHARITABLE EXPENDITURE 11,487,066
1,653,139
1,790,021
3,465,925
18,396,151
PRIOR YEAR
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
Europe 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

B Support and governance costs

YEAR TO 31 YEAR TO 31
DECEMBER 2022 DECEMBER 2021
SUPPORT COSTS
Staf Costs 1,047,925 1,060,831
Other Staf related Costs 660,944 325,589
Communications & Events 150,823 117,906
Legal & Professional 176,500 376,834
Consultant Costs 211,384 56,272
Ofice & IT 353,701 238,604
Travel 173,428 1,872
Foreign Exchange 660,361 60,798
TOTAL SUPPORT 3,435,066 2,238,706
GOVERNANCE COSTS
Auditors’ remuneration 25,491 24,847
Accountancy 5,368 5,747
Consultant costs - 12,530
TOTAL GOVERNANCE 30,859 43,124
TOTAL SUPPORT AND GOVERNANCE 3,465,925 2,281,830

6 GRANTS

UK $ UK $ INDIA $ EUROPEAN GLOBAL AFRICA $ YEAR TO 31
UNION $ AND OTHER DECEMBER
$ 2022 $
Air for Health 38,230 38,230
Air Parif 160,017 160,017
Asthma + Lung UK 44,898 44,898
Asthma + Lung UK 123,133 123,133
Brown University 294,678 294,678
C40 Cities 2,764,628 2,764,628
C40 Cities Climate Leadership 49,991 49,991
Group, Inc.
Center for the Study of Democracy 41,800 41,800
Centre for Policy Studies 91,157 91,157
Chintan 99,913 99,913
Conservative Environment Network 51,166 51,166
(CEN)
Council on Energy, Environment and 329,786 329,786
Water (CEEW)
Ella Roberta Family Foundation 181,346 181,346
European Clean Air Center (ECAC) 320,697 320,697
European Climate Foundation (ECF) (62,436) (62,436)
– Writeback
European Environmental Bureau 356,694 356,694
(EEB)
European Policy Centre (EPC) 81,810 81,810
Forum Energii 386,560 386,560
Fundacja Promocji Pojazdów 241,633 241,633
Elektrycznych (FPPE)
HabitatMap 178,000 178,000
Health Efects Institute (HEI) 110,157 110,157
Health Efects Institute (HEI) 639,561 639,561
ICLEI 95,994 95,994
IIT-Kanpur 313,491 313,491
Instytut Zdrowia i Demokracji (IZID) 79,921 79,921
UK $ UK $ INDIA $ EUROPEAN GLOBAL AFRICA $ YEAR TO 31
UNION $ AND OTHER DECEMBER
$ 2022 $
International Council on Clean 58,561 58,561
Transportation (ICCT)
International Council on Clean 57,512 57,512
Transportation (ICCT)
Institute for Public Policy Research 50,979 50,979
(IPPR)
Kigali Collaborative Research Centre 238,109 238,109
Association Krakow Smog Alert 246,066 246,066
(KSA)
Lewiatan 163,466 163,466
Open AQ 475,000 475,000
Polityka Insight 140,306 140,306
Pravah 5,441 5,441
Polskie Stowarzyszenie Paliw 205,431 205,431
Alternatywnych (PSPA)
Purpose Foundation 97,425 97,425
Road Safety Partnership 139,518 139,518
Sesame Workshop India Trust 116,749 116,749
Social Change Nest 268,080 268,080
Social Good Fund 145,976 145,976
Transport & Environment 195,265 195,265
Transport and Environment 120,545 120,545
Trust for Social Action Foundation 50,836 50,836
UK 100 (Write back) (20,367) (20,367)
UK Community Foundation 303,231 303,231
United Charitable 70,000 70,000
University of Birmingham (UoB) 283,163 283,163
University of California, Davis, Air 40,000 40,000
Quality Research Center
University of Cape Coast 201,454 201,454
University of Pretoria 142,969 142,969
UK $ INDIA $ EUROPEAN GLOBAL AFRICA $ YEAR TO 31
UNION $ AND OTHER DECEMBER
$ 2022 $
Washington University in St Louis 75,000 75,000
World Economic Forum (WEF) 125,000 125,000
World Economic Forum (WEF) 522,500 522,500
FX Variance on prior year grants (19,390) 85 (14,628) (7,551) (2,490) (43,974)
TOTAL 1,209,861 1,020,020 2,876,263 5,800,880 580,042 11,487,066

PRIOR YEAR

PRIOR YEAR
UK $ INDIA $ EUROPEAN GLOBAL AFRICA $ YEAR TO 31
UNION $ AND OTHER DECEMBER
$ 2021 $
Air for Health 43,690 43,690
Association Krakow Smog Alert 460,604 460,604
British Lung Foundation 267,854 267,854
Brown University 493,211 493,211
Bulgaria Fund for Women 48,751 48,751
C40 Cities 963,299 963,299
Clean Air Asia 128,916 128,916
Conservative Environment Network 56,715 56,715
Electric Vehicles Promotion 378,023 378,023
Foundation
Ella Roberta Family Foundation 183,999 183,999
European Clean Air Center (ECAC) 50,000 50,000
Forum Energii 220,637 220,637
Great Ormond Street Hospital 133,173 133,173
Foundation
Guy's and St Thomas' Foundation 322,128 322,128
Health Efects Institute 220,598 220,598
ICLEI 57,070 57,070
IIT-Kanpur 41,438 41,438
International Council on Clean 141,486 141,486
Transportation (ICCT)
Jhatkaa 46,914 46,914
UK $ INDIA $ EUROPEAN GLOBAL AFRICA $ YEAR TO 31
UNION $ AND OTHER DECEMBER
$ 2021 $
Mahila Housing SEWA Trust 180,220 180,220
New Venture Fund 292,325 292,325
Open AQ 423,755 423,755
Pravah 71,377 71,377
Sesame Workshop India 110,870 110,870
Swaniti 87,600 87,600
UK 100 96,893 96,893
University of California, Davis, Air 30,000 30,000
Quality Research Center
Washington University in St Louis 215,000 215,000
World Health Organisation (WHO) 300,000 300,000
World Resources Institute 291,626 291,626
Za Zemiata 114,699 114,699
BMJ Publishing Group Ltd (Write Back) (4,010) (4,010)
Centre for Ecology, Development and (16,163) (16,163)
Research (Write Back)
FX Variance on prior year grants 2,498 (0) (10,000) (3,235) 138 (10,599)
TOTAL 926,077 849,728 1,306,404 3,359,752 138 6,442,099

7 NET (EXPENDITURE) INCOME BEFORE TRANSFERS This is stated after charging:

This is stated after charging:
TOTAL FUNDS TOTAL FUNDS
2022 $ 2021 $
Audit Fees (excl VAT) 21,243 20,706

8 STAFF COSTS

YEAR TO 31 DECEMBER YEAR TO 31 DECEMBER
2022 $ 2021 $
Wages and salaries 2,226,552 1,941,406
Social security costs 268,097 218,068
Pension costs 206,415 154,326
TOTAL 2,701,064 2,313,800

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


analysed by function, was as follows:
2022 NO. 2021 NO.
Fundraising 3.2 0.5
Charitable Activities 13.8 13.3
Support 9.9 9.1
TOTAL 26.9 22.9

By 31 December 2022 Clean Air Fund had 27 employees (2021:23).

There were 11 employees (2021:9) whose emoluments amounted to over $73,000 (£60,000) per annum or more (excluding benefits) during the year, based on the average exchange rate for the year.

YEAR TO 31 DECEMBER YEAR TO 31 DECEMBER
2022 2021
$73k to $84k (£60k to £70k) 0 3
$85k to $96k (£71k to £80k) 5 2
$97k to $108K (£81k to £90k) 1 1
$109k to $120k (£91k to £100k) 2 0
$121k to $132k (£101k to £110k) 0 2
$133k to $144k (£111k to £120k) 1 0
$145K TO $156K (£121K TO £130K) 1 0
$206K TO $217K (£171K TO £180K) 0 1
$218K TO $229K (£181K TO 190K) 1 0
TOTAL 11 9

The key management personnel of Clean Air Fund have been defined as the: Executive Director, Director of

Finance and Operations, Director of Programmes, Director of Strategic Partnerships & Communications, Director of HR and Chief Impact Officer. The total employee benefits including employer’s pension contributions of the key management personnel were $960,659 (2021: $893,661).

The Trustees did not receive any remuneration for their services during the period. 6 Trustees were reimbursed expenses for travel and subsistence in the year $6,277 (2021: No trustees reimbursed).

9 SUBSIDIARY UNDERTAKINGS

Clean Air Fund has a wholly-owned trading subsidiary undertaking, Clean Air Fund India Private Limited (CAFIPL), a company incorporated and registered in India (registered no U74999DL2022FTC405832). The principal activities of this company are to provide grant research and management services to Clean Air Fund. All of its profits are retained by the entity. The charity owns the entire issued share capital of 1,600,000 equity shares of INR1,600,000 equity shares of INR 10 each.

10 FIXED ASSET INVESTMENTS

2022 $ 2021 $
Investments held in subsidiary
Clean Air Fund India Services Private Limited 205,525 -
TOTAL INVESTMENTS 205,525

11 DEBTORS

YEAR TO 31 DECEMBER YEAR TO 31 DECEMBER
2022 $ 2021 $
Trade Debtors 10,981 -
Accrued income 1,261,549 2,119,721
Prepayments 92,356 43,829
TOTAL 1,364,886 2,163,550

12 GRANTS PAYABLE

YEAR TO 31 DECEMBER YEAR TO 31 DECEMBER
2022 $ 2021 $
GRANT COMMITMENTS AT 1 JANUARY 4,777,121 4,689,826
Grants awarded in the period 11,487,066 6,472,871
Grants written back in the period (126,777) (30,772)
Grants paid in the period (8,030,149) (6,729,205)
Grant repayment owed - 374,401
GRANT COMMITMENTS AT 31 DECEMBER 8,107,261 4,777,121
Payable within one year 7,363,935 4,584,625
Payable after one year 743,327 192,496

13 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

YEAR TO 31 DECEMBER YEAR TO 31 DECEMBER
2022 $ 2021 $
Trade creditors 198,928 258,759
Social security costs 79,358 64,026
Accruals 354,047 467,796
Deferred income (note 14) 5,610,142 -
Other creditors 2,662 -
TOTAL 6,245,137 790,581

14 MOVEMENT IN DEFERRED INCOME

YEAR TO 31 DECEMBER YEAR TO 31 DECEMBER
2022 2021
As at 01 January 2022 - -
Released in year - -
Deferred in year 5,610,142 _
AS AT 31 DECEMBER 2022 5,610,142 -

Deferred income comprises grant funds which the charity has received but is not yet entitled due to time-related conditions attached to the terms of the grants.

The $5.6m relates to payments in advance from two of CAF’s funders for new grants commencing in 2023.

15 MOVEMENT IN FUNDS

AT 1 JANUARY INCOME $ EXPENDITURE TRANSFERS AT 31
2022 $ $ AND FX DECEMBER
LOSSES $ 2022 $
UNRESTRICTED FUNDS
General funds 14,001,087 12,493,840 (15,661,157) (7,525,106) 3,308,664
Designated funds - - - 7,200,000 7,200,000
Total unrestricted funds 14,001,087 12,493,840 (15,661,157) (325,106) 10,508,664

RESTRICTED FUNDS

Pooled Fund - UK and Africa 292 808,999 (809,291) - -
Clean Air Fund UK Pooled Fund 175,730 1,015,735 (1,191,465) - -
Bloomberg Philanthropies - 650,000 (156,397) - 493,603
McCall MacBain - Clean Air - 123,060 (283,163) 160,103 -
Fellowships
Breathe Providence 706,789 - (294,678) 412,111
Total restricted 882,811 2,597,794 (2,734,994) 160,103 905,714
TOTAL FUNDS 14,883,898 15,091,634 (18,396,151) (165,003) 11,414,378

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.

Designated funds are unrestricted funds earmarked for a particular purpose by the trustees. Designation does not legally restrict the trustees’ discretion to apply the fund. The $7.2m designated funds represents the contingent liabilities to cover the costs of grant commitments made in 2022 where the expenditure is not yet accounted for (as grant commitments are contingent on future performance milestones and so are contingent liabilities).

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.

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 2022 these funds were for:

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

PRIOR YEAR

AT 1 JANUARY INCOME $ EXPENDITURE TRANSFERS AT 31
2021 $ $ AND FX DECEMBER
LOSSES $ 2021 $
UNRESTRICTED FUNDS
General pooled 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 Fund 2,210 1,048,850 (875,330) - 175,730
Health Communication Research 74,528 - (74,528) - -
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

16 ANALYSIS OF NET ASSETS BETWEEN FUNDS

GENERAL FUND $ DESIGNATED RESTRICTED TOTAL 2022 $
FUNDS $ FUNDS $
FUND BALANCES AT 31
DECEMBER 2022 ARE
REPRESENTED BY:
Investments 205,525 - - 205,525
Current Assets 16,251,683 7,200,000 2,109,569 25,561,252
Current Liabilities (12,495,676) - (1,113,396) (13,609,072)
Non-Current Liabilities (652,868) - (90,459) (743,327)
TOTAL NET ASSETS 3,308,664 7,200,000 905,714 11,414,378

PRIOR YEAR

PRIOR YEAR
GENERAL FUND $ RESTRICTED FUNDS $ TOTAL 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

17 FX GAINS AND LOSSES

YEAR TO 31 DECEMBER 2022 $ YEAR TO 31 DECEMBER 2021 $
FX losses for the period 660,361 60,798

FX losses are treated as support costs in the accounts.

18 TRANSACTIONS WITH RELATED PARTIES

No related parties transactions have taken place with senior management (2021: Nil). Clean Air Fund’s Conflict of Interest policy is Board or Grant 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. During the year CAF received $2,787,789 from CIFF in respect to a grant awarded in 2022. In the year C40 Inc was awarded a new grant of $2,764,628 of which $1,220,321 was paid in year. He has received no remuneration in his capacity as a Trustee.

Bing Hao (Trustee) currently holds the position of Head of Project Control at IKEA Foundation. During the year CAF received $5,000,000 from the IKEA Foundation in respect of a grant awarded in 2022, and an additional $5,274,975 in deferred income relating to a grant awarded in 2022. She has received no remuneration in her capacity as a Trustee.

Clean Air Fund has a wholly-owned trading subsidiary undertaking, Clean Air Fund India Private Limited (CAFIPL), a company incorporated and registered in India (registered no U74999DL2022FTC405832). The charity owns the entire issued share capital of 1,600,000 equity shares of INR1,600,000 equity shares of INR 10 each. During 2022, there were no income and expenditure activities for CAFIPL.

There were no other transactions with any of the subsidiary entities.

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

CHIEF IMPACT OFFICER

COMPANY SECRETARY

REGISTERED OFFICE

BANKERS

SOLICITORS

AUDITORS

Clean Air Fund

15th January 2019

11766712

1183697

Katherine Garrett-Cox CBE Tejpreet Singh Chopra [Resigned 15 January 2023] Justin Johnson Ivan Vatchkov Bing Hao [Resigned 30 June 2023] Gunjan Shah [Appointed 02 November 2022]

Helen Jane Burston

Mike Saxton

Gillian Holmes

Andrew Sean Maguire

Elizabeth Boonman-Salgado

Sietske van der Ploeg

Mike Saxton

20 St Thomas Street London SE1 9RS

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: istock p.8: Unsplash / Leo Rivas p.13: Unsplash / Kevin Valencia p.14: Clean Air Fund p.19: Unsplash / Iccup p.19: iStock p.21 (above): iStock p.21 (below): iStock p.22 (above): Unsplash / Ivan Nedelchev p.22 (below): Unsplash / Reiseuhu p.23: iStock p.24: iStock p.25: Unsplash / Aron Van de Pol p.35: iStock

The Clean Air Fund (UK) is registered in England with company number 11766712 and charity number 118369. Registered address: 20 St Thomas Street, London, SE1 9RS.

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