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2025-12-31-accounts

ANNUAL REPORT, &ACCOUNTS 2025 UKCEH

2025 HIGHLIGHTS

The UK’s first rice trials on rewetted peat aim to cut emissions and reshape farming.

We monitor how rapidonset ‘flash droughts’ are happening in the UK, to build resilience in a warming climate.

Advising the House of Lords’ committee on the urgent need for smarter, more sustainable nitrogen use.

Soil conditions significantly increase rainfall in world’s megastorm-prone hotspots.

UKCEH Land Cover Map’s new spatial explorer tool uses high-tech satellite imagery to identify small features from woodland patches to waterways.

Pinpointing practical ways to reduce peatland emissions and restore one of the planet’s most powerful natural carbon stores.

A decade of coordinated The first national study national monitoring in uncovers the powerful, Wales shows clear gains in unseen role of river land use, biodiversity and biofilms in keeping sustainable farming. England’s waters healthy.

Advising the Climate Change Committee on reducing emissions from land use.

UKCEH signs agreement for our citizen science volunteer programmes to be even more inclusive.

Our UK hydrological outlooks detail heatwave conditions, very low rainfall and river flows supporting the water management sector and communities.

Our scientists predict what will be top of the crops by 2080 due to climate change.

CONTENTS

INTRODUCTION ..................................................................... 6 STRATEGIC REPORT WHO WE ARE AND HOW WE WORK .......................... 10 ACHIEVEMENTS AND PERFORMANCE ................... 14 GOVERNANCE ................................................................ 24 OUR PEOPLE ................................................................... 32 OUR STAKEHOLDERS .................................................. 37 ENVIRONMENT ............................................................... 40 RISK MANAGEMENT ..................................................... 44 OUR FINANCES .............................................................. 46 OUR FUTURE PLANS .................................................... 50 STATEMENT OF TRUSTEES’ RESPONSIBILITIES ......... 52 INDEPENDENT AUDITOR’S REPORT .............................. 54 FINANCIAL STATEMENTS .................................................. 60

Front cover shows aerial shot of the field trials site in the Cambridgeshire Fens. Credit: UKCEH/Cookie Cut Media.

2025

As a leading independent research organisation, we are leveraging our expanding global and UK collaborations to address major climate and biodiversity challenges, across land, water and air, as we strive to ensure that our science creates positive impact for society and the environment.

We bring together world-class environmental science, data gathering and analysis at scale and innovative modelling to reveal how our planet is changing. We work with governments, businesses, NGOs, academia and communities to turn evidence into action that safeguards the environment and

Dr Stuart Wainwright OBE Chief Executive

enables humanity and economies to thrive. In 2025, to ensure our research reaches the places it needs to, attract talent and partners, and continue to gain credibility, trust and distinction we repositioned our brand – and this has gone down incredibly well with partners, old and new.

We continue to build resilience by improving how we work – strengthening our leadership skills, taking steps to ensure we keep our people safe in the myriad environments in which they work, and improving cyber security to protect our systems and data. We have also improved our governance and welcomed new board members and a new Director of Science, Kathryn Brown.

As our strategy to 2030, Environmental Science for a Better World , predicted, the world is changing fast and government priorities and associated funding are changing as a result. This presents new demands for our science and skills but also challenges. Alongside this, demand is increasing from private and third sectors for understanding the challenges the world is facing and finding solutions. Given we are led by trying to make the world a better place through our science we want to meet that demand, but we must do so sustainably.

Financially, in 2025 we further strengthened our robustness enabling us to look ahead with confidence. Strategically, in 2025 we have taken steps to ensure our science reaches more places into the future, achieving more impact, which further strengthens our sustainability. While UKRI, our principal funder, has an increased budget for 2026, they are undergoing significant changes which we are supporting them on, including through our leading role in the new National Research Organisations Group.

We have taken further steps to strengthen our partnerships with academia enabling universities to do even more great science through our infrastructure and data. We

have deepened and expanded our trusted relationships with UK governments as we support them in their national and international priorities. We have also expanded our partnerships with the private sector and our newly established Campaign Planning Group advising us on opening up a whole new range of partnerships focused on achieving positive impact through our science.

Above all, I would like to thank all our teams for their continued commitment, dedication and inspiration. As we strive to increase our impact, we must further develop our partnerships, uphold scientific excellence and embrace digital technology to deliver more trusted science and analysis that ultimately helps make the world a better place.

I am privileged to have spent the past year as Chair of UKCEH at such a pivotal moment in our history. Throughout the year, we demonstrated the strength of our 2030 strategy, Environmental Science for a Better World , delivering exceptional scientific impact and expanding our role as a trusted research institute.

Importantly, I am proud of the strong partnerships we have forged across academia, government, industry and the third sector - relationships that underpin our ability to deliver public good. Our presence on global stages, including at United Nations events, our West Africa office, and international field research, further confirms our global impact.

Judith Batchelar OBE Chair

Beyond this, we have strengthened our Board of Trustees with new expertise and fresh perspectives. I believe we have a high-performing team with real ambition for the future direction of the organisation. Our new brand identity reflects this journey. And we have also taken significant steps to ensure financial resilience and long-term sustainability, providing a solid foundation for investment and innovation.

Finally, I would like to thank everyone for their support and contribution to our achievements. Looking ahead, we are well placed to address future challenges and opportunities. I am confident that together we will continue to deliver practical, scientific insights that benefit people and the planet, playing a vital role in creating a more resilient, sustainable and prosperous world.

[ STRATEGIC REPORT ]

WHO WE ARE

UK Centre for Ecology & Hydrology (UKCEH) is a leading independent research institute dedicated to understanding and protecting our planet for all that call it home.

By combining field research, data modelling, and decades of observation, UKCEH brings to light the complex, interconnected processes driving ecosystems across land, water, and air. We decode the complexities of our environmental systems and use that knowledge to strengthen resilience for people and the planet.

OUR STRATEGY TO 2030

In November 2024, we published our Strategy to 2030, Environmental Science for a Better World . This new strategy focuses on three interconnected environmental challenges which are crucial for a sustainable future.

Our research priorities:

• Building resilience in a changing climate.

Climate change is a major threat to our planet, affecting the environment, people and livelihoods. Its effects are far-reaching, from rising global temperatures to extreme weather events and damaged ecosystems. Our research enhances climate security by providing critical knowledge and tools to understand, predict, mitigate and adapt to the impacts of climate change.

• Enhancing ecosystem and human health.

Human activities cause pollution, habitat destruction, and overuse of natural resources, harming ecosystems. These ecosystems provide clean air, fresh water, fertile soil and a home for wildlife. We study how pollutants, nutrients, and pathogens move through the environment and affect ecosystems. Our work seeks to protect and restore these ecosystems.

• Restoring biodiversity for a sustainable future.

Biodiversity loss is happening faster than ever and presents major challenges for the environment, people, and economies worldwide. Preserving and restoring biodiversity is crucial to ensuring a sustainable future. We explore the role of biodiversity in ecosystems and provide services to maintain a healthy environment including pollination, climate regulation, flood protection, soil fertility, food production, and the benefits people get from being in nature.

Our strategic pillars:

Underpinning our work to tackle the planet’s biggest challenges, our strategic direction is determined by four pillars:

This is the first year of reporting against this new strategy. Find out more about our scientific achievements in pages 14-23.

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WHO WE ARE AND HOW WE WORK

[ STRATEGIC REPORT ]

HOW WE WORK

Our core principles combine scientific excellence, innovation and collaboration with a focus on impact and sustainability. Our people are at the core of our success. UKCEH’s research and innovation centres on large research infrastructures and our capabilities in monitoring, measurement, observation, experimentation, data science and modelling.

Monitoring, measuring and observation

We operate flexible, long-term, large-scale monitoring and surveillance networks fundamental to identifying and quantifying environmental changes and determining the associated underlying factors.

Experimental platforms and research facilities

Our experimental platforms and research facilities provide a robust foundation for investigating different root causes of environmental challenges and assessing the effectiveness of efforts to create positive change.

Data science and modelling

We develop models to forecast aspects of the environment at different spatial and temporal scales.

PARTNERSHIPS FOR IMPACT

The first whole-system approach to monitoring hydrological extremes in the UK, the Floods and Droughts Research Infrastructure (FDRI), will provide a worldleading facility of field and digital infrastructure for nextgeneration research into floods and droughts.

Environmental challenges cannot be tackled in isolation – we rely on a healthy environment for our own health, resilience of our infrastructure and livelihoods and to support sustainable growth and enterprise in the future.

Our partnerships work collaboratively with businesses and communities across the UK and internationally. We cover sectors from food and agriculture to health care and beyond, working towards shared goals with our key university partners. Together, we deliver the science and innovation needed to address these complex issues – protecting the environment, improving lives and boosting economic growth by helping organisations and governments to manage risk and build resilience.

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Water sampling
near Tidmarsh,
River Pang.
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OUR NATIONAL ROLE

We deliver impartial environmental science to benefit the UK research community, governments, businesses and society. Our large-scale research infrastructures and programmes generate high-quality scientific evidence, enabling and inspiring the academic community. The programme - National Capability for UK Challenges (NC-UK) – is the largest programme and a major investment in the UK’s environmental evidence base. It is funded by UKRI-Natural Environment Research Council. Many of the scientific achievements highlighted on pages 14-23 are funded by this programme.

In 2025, we strengthened the purpose of this programme by shaping a long-term vision for an integrated environmental monitoring network. This would be a system capable of meeting the UK’s environmental monitoring needs through to 2050. The work included collaborating with scientists, policymakers, regulators, industry and the wider monitoring community, through activities such as:

This work is strengthening UK-wide collaboration and supporting the development of high quality, interoperable evidence that government, regulators and industry can rely on. This early systems-based work is laying the foundations for a more coordinated, resilient and efficient UK monitoring landscape.

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WHO WE ARE AND HOW WE WORK

[ STRATEGIC REPORT ]

Clockwise: UKCEH scientists visiting AmazonFACE in Manaus and Maria Barbosa as speaker at COP-30 in Brazil; UKCEH delegation to the Intergovernmental Negotiating Committee for the Global Plastics Treaty; Hosting a visitor from the CSIR Water Research Institute (Ghana).

OUR INTERNATIONAL ROLE

We provide research-based evidence, advice and solutions around the globe, addressing many of the world’s most pressing environmental and social challenges, in line with the United Nations Sustainable Development Goals (SDGs). We do this through international research partnerships, including our work with UN agencies and programmes such as the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES), the United Nations Environmental Programme (UNEP), the United Nations Educational, Scientific and Cultural Organization (UNESCO), and the World Meteorological Organization (WMO). Large parts of the underpinning science and engagement here is delivered under our programme - National Capability for Global Challenges (NC-International) – a major part of UKRI-Natural Environment Research Council’s investments in delivering international scientific leadership and influence for the UK. Our international reach spans all continents and includes our recently established West Africa Office in Accra, Ghana.

Essential science for global challenges

Setting the agenda for collective global action on sustainable phosphorus management

To help promote food and water security, particularly in Africa, UKCEH and partners co-hosted the continent’s first Sustainable Phosphorus Summit, SPS8. The event united nearly 700 stakeholders to set the global agenda for collective action on the sustainable management of phosphorus, a key nutrient in crop and livestock production. Our participation forms part of our wider leadership in nutrient management, including our UpCycle project in Chile, where we are working with UNEP and local partners to identify a scalable, nature-positive solution to managing phosphorus sustainably.

Convening UK expertise for global water leadership

We strengthened our leadership in global water science, as we marked the 50th anniversary of UNESCO’s Intergovernmental Hydrological Programme (IHP). Addressing the complex, interrelated challenges of climate change, water scarcity and pollution requires sustained and collective international efforts to develop accessible, science-based solutions. We convened the UK hydrological community to showcase national expertise being deployed with partners worldwide and co-developed a forward-looking UK policy brief to shape future international priorities around water science.

Stella Linnekogel and Dr Abby Wallwork dangling in a crane to measure greenhouse gas fluxes in Panama.

national capability programme, is building long-term international partnerships and assisting early career researchers. By hosting a diverse cohort of visitors, the scheme strengthened collaborative research and knowledge exchange across areas including communitybased water monitoring in Colombia, heat-stress assessment with the Kenyan Meteorological Department, groundwater monitoring in Thailand, and ammonia emissions research across Europe.

Hosting a diverse cohort of international visitors to strengthen UK partnerships

Our significantly expanded Visiting Scientist Scheme, supported through our

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ACHIEVEMENTS AND PERFORMANCE

[ STRATEGIC REPORT ]

RESEARCH PRIORITY: BUILDING RESILIENCE IN A CHANGING ENVIRONMENT

Restoring peatlands to enable carbon capture

Peatlands cover 3% of the Earth’s land surface and store more carbon than all its forests combined, making their restoration vital to building climate resilience. However, some 20% of the world’s peatlands are now used for agricultural production, leading to greenhouse gas (GHG) emissions, including significant areas of peatland in Indonesia converted for oil palm plantations.

UKCEH studies have outlined land management strategies to amplify carbon storage and reduce emissions from peatlands, helping to pave the way to the creation of practical and cost-effective strategies to mitigate carbon loss from peatland used for agriculture.

Our researchers explored a combined approach to restoring damaged peatlands: rewetting (raising the water level), adding biochar (a carbon-rich material), and adding iron sulphate, over the course of a year. We found that these methods work together to slow peat breakdown, reduce methaneproducing microbes, and keep more carbon in the soil. Biochar provided stable carbon and improved soil structure, while iron sulphate helped to bind carbon chemically.

To further confirm the effectiveness of biochar, our researchers tested the effects of adding different organic materials to peat soils, finding that biochar was the most effective at retaining carbon within these vital ecosystems.

Together, these efforts lower GHG emissions and improve peatland health, providing a practical way to restore ecosystems, promoting sustainable land management and supporting global climate goals.

Highlights

Advising the UK government on reducing emissions from land use

UKCEH has provided valuable advice on the relationship between land use and GHG emissions to the UK’s independent Climate Change Committee. The recommendations we provide form part of the committee’s work to inform the UK government on strategies to achieve its climate goals.

We updated our land use modelling efforts in support of the Sixth Carbon Budget (the volume of GHG emissions that the UK can emit between 2033-2037 to remain on track to reach net zero and keep global warming below 1.5°C by 2050) to reflect GHG emission estimates for the Seventh Carbon Budget (2038-2042) advice through to 2050.

Through this project, our researchers modelled land use mitigation options in 2022 to assess their impact on GHG emissions, land availability and fuel and timber production. We considered the agriculture and land use sectors together to assess the availability of suitable land and overall impact of mitigation measures.

Finally, we combined these solutions into two pathways (‘business as usual’ and a

‘balanced pathway’) to investigate more sustainable land use strategies in the UK. Under the first option, the UK land use sector is projected to represent a net GHG emissions sink of -5.3 tonnes of CO2e in 2050, compared to a net source of 0.8 million tonnes CO2e in 2022. The ‘balanced pathway’ has the potential to save 24.5 million tonnes of CO2e by 2050, in addition to the ‘business as usual’ pathway.

Highlights

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ACHIEVEMENTS AND PERFORMANCE

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Soil conditions significantly increase rainfall from large thunderstorms

Exploring UK flash droughts in real time

Flash droughts have received significant scientific attention in the last decade, particularly in dry climates. UKCEH scientists have explored rapid-onset (or ‘flash’) droughts in the UK, a more humid setting, studying the period 1969–2021. Our team are working on real-time updates to better monitor these events. The findings stand to inform efforts to improve the country’s resilience to drought, as the climate warms.

To better understand flash drought development in the UK, we analysed the contribution of rainfall together with the atmospheric evaporative demand. This is the maximum potential amount of water that could evaporate from the soil and plants into the air. Overall, we found a significant increase in the number of flash droughts recorded in spring. We also discovered that droughts occur primarily in

the wake of irregular rainfall in autumn and winter, while the atmospheric evaporative demand can also have an impact on flash droughts, particularly in the drier regions of the south-east.

Overall, the study presents a comprehensive overview of the flash drought phenomenon in the UK, providing useful information for drought assessment and management and a benchmark for future research.

Highlights

Storm forecasting is traditionally based on studying atmospheric conditions. Our scientists have led ground-breaking research to show that land surface conditions can influence rainfall, with the contrast between dry and wet soil increasing rain from large thunderstorms by up to 30%. These findings are set to transform early warning systems in tropical regions, enabling communities to better adapt to the impacts of climate change.

Our research focused on storms that bring severe flash flooding and mudslides in parts of Africa, Asia, Americas, and Australia. These continents have a combined population of nearly four billion people. These colossal weather systems, which can be larger than England and travel hundreds of kilometres, bring intense storms that harm people and livestock, while destroying homes, infrastructure, and livelihoods. For example, in 2024, the World Health Organization reported that storms in Africa killed more than 1,000 people, displaced more than 500,000 and destroyed over 300,000 homes.

Our scientists analysed 20 years of satellite data relating to storm activity and soil moisture conditions in West Africa,

southern Africa, India, South America, complementing this with computer modelling. They found that surface conditions with the potential to influence rainfall can be observed two to five days before a storm arrives, allowing advance warning of potential flash flooding. The advanced warning would help people to move to upland areas or clear blocked drains in advance of storms to limit surface water flooding.

The report builds on previous UKCEH findings that land surface conditions affect the direction and intensity of megastorms in the Sahel, while deforestation increases the frequency of storms in some rapidly growing African coastal cities.

Highlights

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[ STRATEGIC REPORT ]

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Terhi Riutta monitoring
rice trial emissions.
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Elise Morel, Microplastics
Analysis Facility.
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Advancing innovation in digital research

UK’s first rice trials

As part of our contribution to the AgZero+ sustainable, climate-neutral agriculture project, UKCEH scientists led on a groundbreaking, UK-first trial in the Cambridgeshire Fens, establishing a variety of novel crops such as rice. We also planted other more traditional food such as salad crops, hybrid willow for bioenergy and wildlife-friendly crops, on rewetted peat soils. We grew nine varieties of coldresistant rice, selected for their suitability to the local environment.

Germinated in the GroDome - an indoor facility designed to run agricultural trials - at Wallingford, we planted the rice in June and harvested the crop in October. This collaborative research with local farmers at Ely’s Oxwillow Farm provided insights into how innovative crop systems can lower GHG emissions from degraded peatland, while promoting food security and improving farmers’ livelihoods.

This trial exemplifies the importance of combining research with practical solutions for sustainable land management, climate resilience and nature recovery. Initial results from the trial will be available at the end of the AgZero+ programme in 2027, and we aim for trials to continue as part of a ‘living lab’ demonstration, informing decisions on sustainable agriculture.

Highlights

Digital technology is increasingly shaping our future. Our Digital Research group is driving innovation in digital research infrastructure (DRI) for environmental science, in line with UKCEH’s Digital Strategy. By adopting a consistent, holistic approach, we are able to deliver more value and create a greater positive impact, while leveraging the latest best practice in digital research and innovation.

In 2025, we worked with stakeholders to develop a system to collect, analyse and share diverse, near real-time data from monitoring sites and catchments. We have also created a toolbox of models, methods and artificial intelligence (AI) techniques to support the entire environmental science process. Beyond this, we are expanding our AI expertise and exploring how to use such techniques to enhance data discovery and usability, including in relation to environmental data services that benefit local authorities and the public.

Elsewhere, we have developed a Spatial Explorer programme that will enable our researchers to visualise and interact with spatial data, including information gathered through the AgZero+ sustainable, climateneutral agriculture project.

In this way, we aim to enable long-term sustainability and efficiencies in digital platforms, as we continue to collaborate

across UKCEH to achieve our vision. Importantly, as part of our commitment to adopting an ethical and responsible approach to development, we are conducting research to understand and address the growing impacts of digital research innovation, while creating an inclusive stakeholder community. For example, UKCEH scientists are contributing to research on the growing challenge of energy and water consumption involved in large-scale data centres including preparing a briefing for the Department for Science, Innovation and Technology.

Highlights

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ACHIEVEMENTS AND PERFORMANCE

RESEARCH PRIORITY: ENHANCING ECOSYSTEMS AND HUMAN HEALTH

The importance of biofilms to freshwater ecosystem health

Towards reducing, recycling, or reusing nitrogen

Our scientists have contributed towards a report on sustainable nitrogen management published by the UK House of Lords Environment and Climate Change Committee. Entitled ‘ Nitrogen: time to reduce, recycle, reuse ’, the report outlines the need for the UK to take a more ambitious and strategic approach to this vital chemical element, particularly in the agricultural, wastewater, transport and industrial sectors. Nitrogen is vital for life, but when combined with other elements, it can form harmful pollutants that damage human health and the environment.

The Committee – with support from special advisers at UKCEH - highlights the need for a more strategic, holistic and innovative approach to managing nitrogen, and identifies opportunities to link nitrogen management with climate action, flood prevention and nature recovery. It also considers ways to reduce, recycle and reuse nitrogen from sources such as manure, slurry and wastewater.

Overall, the report calls for more rigorous regulation and decisive action on shortterm measures to reduce pollution, highlighting the potential benefits for public health, the climate, nature and farming.

Highlights

Researchers from UKCEH and the Environment Agency conducted the first national-scale study of microbial biofilms on stones and surfaces in rivers across England. These biofilms - thin layers of microorganisms embedded in a sticky matrix - are extremely important for river ecosystems because they drive many processes that regulate water quality and nutrient cycling.

Using advanced DNA sequencing techniques (metagenomics), the study analysed biofilms which revealed an unexpectedly high level of microbial diversity, including many organisms that had never previously been described by science. Approximately one-fifth of the reconstructed genomes represented entirely new bacterial types, highlighting how little is currently known about the microscopic life that supports river ecosystems.

The results show that river biofilms are typically dominated by a small number of widespread bacterial groups that can thrive across many environmental conditions. These microbes possess a wide range of metabolic capabilities that allow them to break down organic matter and cycle key elements such as carbon, nitrogen, and sulphur. Through these activities, biofilms play an essential role in regulating nutrient flows, supporting food webs, and maintaining water quality. The

study also examined the environmental factors that influence biofilm communities. Geological characteristics of river catchments and patterns of land use were the strongest drivers of microbial community composition, while nutrient inputs from wastewater treatment works also influenced some bacterial groups.

Overall, the research provides an important national baseline for understanding river microbial ecosystems. It shows that biofilms are highly diverse, metabolically versatile communities that underpin river health. The findings also demonstrate the potential use of microbial biofilms as indicators of environmental change and water quality in rivers.

Highlights

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ACHIEVEMENTS AND PERFORMANCE

RESEARCH PRIORITY: RESTORING BIODIVERSITY FOR A SUSTAINABLE FUTURE

Understanding environmental changes in rural Wales

Harnessing robotic technology to better monitor biodiversity

UKCEH scientists have co-authored a review that seeks to understand for the first time how robotic and autonomous systems (RAS) can offer innovative technical solutions to improve the accurate monitoring of biodiversity across ecosystems, particularly in remote areas.

Current barriers to biodiversity monitoring include site access, species and individual identification, data handling and storage, and power and network availability. Our robotics experts highlighted technologies that could overcome these challenges and identified the developments needed to promote RAS-based autonomous biodiversity monitoring.

We found that the widespread adoption of RAS for monitoring biodiversity requires further technological development, with some areas posing greater challenges such as power availability, generation of validated training data, eliminating the need for multiple sensor types and risk of

misidentification by automated classifiers. Collaborating in multidisciplinary teams (including biodiversity and RAS experts) was central to co-developing technologies effectively. Overall, we discovered that RAS could lead to major progress in the monitoring of terrestrial biodiversity by complementing existing methods.

Highlights

Wales is unique in the UK for having maintained a long-term, integrated national approach to monitoring change in its rural environment. In 2025, through the Environment and Rural Affairs Monitoring and Modelling Programme (ERAMMP) report, we have uncovered progress in key areas such as land use, nature conservation, climate action, biodiversity, decarbonisation and soil health over the past ten years (2013–2023). We also took the opportunity to evaluate the outcomes of the Glastir Agri-Environment Scheme (AES), a five-year Welsh Government scheme that incentivised farmers to adopt more sustainable land management practices. While some progress has been made there is still significant room for improvement.

We discovered an increase in woodland cover and recorded new hedgerows. However, urban land cover has also expanded by 29% (28,200 hectares) in the same time frame. We found limited evidence of reduced livestock numbers or concerted efforts to lower greenhouse gas (GHG) emissions, although the restoration of peatland will contribute positively to capturing carbon. Our report noted declines in biodiversity, with up to 35% and 75%

fewer birds and pollinators respectively. We recorded an 8% drop in plant species richness, and an increase in non-native vegetation and/or invasive species.

Meanwhile, there was a two-to-four-fold increase in improved soils, although increased soil compaction could lead to lower resilience to drought and raise the risk of agri-chemical runoff and nitrous oxide emissions (a potent GHG). Some 80% of headwater streams remain in good ecological condition, while 46% of ponds are now in a poor or very poor condition. Overall, habitats and landscape features were in a state of concern or had declined.

This report delivers the evidence base Wales needs to drive future environmental policy and demonstrate the real systemwide impact of land management and farming schemes.

Highlights

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GOVERNANCE

GOVERNANCE

Board members

Our Trustees:

The UK Centre for Ecology & Hydrology is a registered Charity in England & Wales (number 1185618) and in Scotland (number SCO49849), and a registered Company Limited by Guarantee in England & Wales (number 11314957). The liability of members is limited to a maximum of £1 each.

The registered office of the UK Centre for Ecology & Hydrology is at the Maclean Building, Benson Lane, Crowmarsh Gifford, Wallingford, Oxfordshire, OX10 8BB, UK.

Our board of trustees:

Our board of trustees is responsible for ensuring that:

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John Redhead at
Groundswell 2025
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Board meetings

The Board met four times during this accounting period (1 January – 31 December 2025). Attendance was as follows:

Trustee Director 11/03/25 30/06/25 30/09/25 10/12/25
Judith Batchelar Y Y Y Y
Ruth Davison Y Y
Lynette Eastman Y Y Y Y
Will Galgey Y Y N Y
Iain Gillespie Y
Charles Godfray Y Y Y Y
Victoria McMyn Y N Y Y
Paul Monks Y
Linda Naylor Y Y Y
Benet Northcote Y Y Y Y
Emily Shuckburgh Y Y Y Y
Alexia Tye Y Y Y Y
Stuart Wainwright Y Y Y Y

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GOVERNANCE

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Subcommittees of the board

employees. It reviews the renumeration of trustee directors and recommends a level of remuneration for the Chief Executive. The subcommittee also oversees the recruitment and selection of new trustees and the Chief Executive. The subcommittee met four times in 2025. It is chaired by Lynette Eastman. Members include Ruth Davison (from September 2025) and Dr Stuart Wainwright with Professor David Hannah (joining from January 2026).

The board delegates some areas of its work to subcommittees. These are:

The finance and audit subcommittee

The subcommittee oversees and reviews all financial matters and advises the board, as appropriate. It helps to ensure that there is a strong framework for financial accountability, together with risk analysis and management. Additionally, it evaluates the budget prior to board approval and oversees the financial audit and reporting process. The subcommittee met four times during 2025. It is chaired by Victoria McMyn. Members include Dr Stuart Wainwright, Linda Naylor (stepped down in September 2025) with Professor Paul Monks joining from November 2025.

In addition to the subcommittees, two more informal working groups were formed in the year to combine trustee, executive, and external expertise, to inform and oversee plans in two key areas: Environmental Sustainability (including Net Zero) and Estates.

The people subcommittee

Remuneration of key management personnel

During the year, the title of this committee changed to People, Pay and Culture subcommittee when its remit broadened to include a wider oversight of people matters and culture in the organisation.

The Chief Executive reviews remuneration of key management staff, supported by the board. The remuneration of the Chief Executive is reviewed by the people subcommittee. We use benchmarking data from comparable organisations to review and define pay levels.

The subcommittee is responsible for ensuring that there is an appropriate pay and performance framework for UKCEH

How we organise our work

The trustees delegate the day-to-day leadership and operations of UKCEH to the Executive Committee, led by the Chief Executive. The Executive Committee meets formally four times a year to review progress towards the organisation’s business plan. In addition, the committee meets fortnightly to deal with matters arising from day-to-day operations.

The Science Leadership Committee works collectively, openly and transparently to oversee UKCEH science direction and delivery. The committee is chaired by the Science Director and includes senior science and innovation employees. It holds quarterly formal meetings and meets informally weekly to deal with matters arising from day-to-day operations.

Key management personnel

The members of the executive committee during 2025 were:

Trading subsidiaries

UKCEH has two wholly-owned registered subsidiaries, the UK Centre for Ecology & Hydrology Enterprise Limited, a Company Limited by Shares (number 12251749) and UK Centre for Ecology & Hydrology International Limited, a Company Limited by Guarantee (number 15670898).

The registered address for both subsidiaries is the Maclean Building, Benson Lane, Crowmarsh Gifford, Wallingford, Oxfordshire, OX10 8BB.

UKCEH International Limited

UKCEH International Limited supports our activities outside of the UK, helping us to establish a greater presence in other countries to conduct research projects and deliver scientific expertise around the world. This includes operating our West Africa office, based in Accra, Ghana. The financial statements of UKCEH International Limited are independently audited and filed at Companies House. A branch of UKCEH International Limited is registered as an External Company in Ghana (number ET000510724).

Directors:

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Performance and achievements of UKCEH Enterprise Limited

As the wholly-owned trading subsidiary of UKCEH, UKCEH Enterprise Limited commercialises UKCEH intellectual property and delivers industry-funded research contracts in support of UKCEH’s ambition and charitable purpose.

Working and engaging with our stakeholders remains a priority to develop the science and real-world solutions required to deliver a positive environmental, social and economic impact. In 2025, UKCEH Enterprise Limited led initiatives to increase our engagement with industry partners, delivering themed activities and events for nature finance, net zero, water resilience and regenerative agriculture. As a result, we received significant interest in

UKCEH Enterprise Limited

Directors:

our activities, leading to 15 industry-funded science projects in 2025. Interest in our data information products remained strong with over 600 enquiries, resulting in a yearon-year growth in licensing income.

Financial performance

In 2025, UKCEH Enterprise Limited generated a profit of £337k from revenue of £2,683k. All UKCEH Enterprise Limited profits are Gift-Aided to UKCEH Charity in support of UKCEH charitable purpose. The profits Gift-Aided to UKCEH Charity from UKCEH Enterprise Limited increased by 11% compared to 2024.

Income derived through the licensing of information products and tools generated a strong profit margin. The flood estimation handbook web service remains a key

contributor to licensing income, making a significant contribution to UKCEH Enterprise Limited profit.

Other Enterprise income streams include equipment sales, equipment rental, laboratory services and industry-funded research projects. Revenue derived from customers within the water sector remains strong compared to 2024, with a growing interest from the financial and food and agriculture sectors in working with UKCEH to address systemic risks and opportunities relating to climate, water and nature. Income from industry-funded research projects generated revenues of £1.8m in 2025, compared to £40k in 2024.

Building a culture of innovation

We continue to build a culture of innovation across UKCEH, increasing commercial, entrepreneurial and design skills and awareness. Through a new partnership with Imperial College London Undaunted Climate Solution Catalyst, we launched a programme to provide practical innovation and entrepreneurial experience for UKCEH scientists interested in developing science-based climate solutions through commercial pathways.

UKCEH held its first organisation-wide Innovation Day in November, bringing together scientists, external stakeholders and members of the Enterprise team to share innovation best practice. Together, they explored how to develop a range of innovative solutions with commercial potential emerging from land, air and water science themes.

Our Royal Society Entrepreneur in resident is working closely with our Commercial and Innovation Enterprise team and scientists to accelerate commercial innovations within UKCEH’s Water and Climate Science area. At an international level, UKCEH

GOVERNANCE

West Africa Office partnered with UNESCO to establish a science, technology and innovation helpdesk as part of the Sankore initiative, working closely with research institutions in Ghana and Nigeria.

UKCEH is at the forefront of developing sensors and services to enable landowners, projects and investors to better understand the health of nature and the impacts of efforts to improve biodiversity. UKCEH has also launched Lepisense, a new generation of artificial intelligence - artificial intelligence (AI) enabled biodiversity monitoring technology designed to provide more affordable, high-integrity biodiversity MRV at scale.

We continue to develop and supply innovative environmental sensing technologies that enable us to collect environmental data and provide a range of systemic insights and services to help businesses better understand our planet. We strive to provide insights into risks posed to the natural environment by human activity, covering topics including air quality, water quality, soil health, biodiversity, ecosystem health, droughts and floods.

Section 172 statement

The UKCEH board of trustees has acted in good faith and in order to promote the success of the company for the benefit of its members, in line with section s172(1)(a-f) of the Companies Act 2006.

Creating long-term positive impact

During the year, the trustees have considered the long-term consequences of their decisions. For example, focuses for this reporting period included embedding the new organisation strategy, and building relationships and reputation to support future income and impact.

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GOVERNANCE

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The interests of the charity’s employees

In this reporting period, trustees considered updates to our People Strategy, including a revised approach to remuneration, reward and recognition. They also reviewed action plans to create a future that champions equity, equality, diversity and inclusion (EEDI).

Fostering relationships with suppliers and customers

Collaboration is central to our work. We partner with a wide range of organisations to provide scientific insights and solutions to help advance our society, including researchers, governments, NGOs, businesses and citizens. We build equitable partnerships, focusing on mutual respect and benefit.

Our procurement policy focuses on preferred and framework suppliers through an open and competitive process. We require our suppliers to respect our values and support our commercial, charitable, environmental, and social objectives, as far as possible.

The impact of the charity’s operations on the community and the environment

We demonstrate environmental leadership through our own actions; and are committed to conducting our scientific research in a way that minimises our impact on the environment. In line with our ISO 14001 certified environmental management system, we have defined ambitious environmental goals as part of our commitment to improving our environmental sustainability. In 2025, UKCEH continued our commitment as a Signatory to the Concordat for the Environmental Sustainability of Research

and Innovation Practice. This voluntary agreement, co-developed by the UK research and innovation (R&I) sector, aims to integrate environmental responsibility into all aspects of research and innovation practices, in line with the UK’s Net Zero by 2050 goal.

We promote public engagement across our research portfolio, with a focus on supporting citizen science, encouraging community understanding and informing public debate. We increasingly provide an informed, trusted, evidence-led narrative on the environment.

How we deliver public benefit

To fulfil our purpose as a charity, we aim to:

The ways in which we contribute to society are outlined both in the performance and achievements section of this report, and in the people, stakeholder and environmental sections.

The trustees confirm that they have complied with duty in section 17 of the Charities Act 2011 regarding the Charity Commission’s general guidance on public benefit, ‘Charities and Public Benefit’.

Our contribution to social value

At UKCEH, we are committed to making a positive impact on society and the environment, as reflected by our commitment to ethical research, equitable partnerships, and sustainable supply chain practices. We seek to create a diverse, collaborative workplace where every individual can flourish, as we strive to become an employer of choice. We

Matt Dalle Piagge pedaling his way to a smoothie, as part of a wellbeing initiative.

prioritise employee wellbeing through physical and mental health initiatives and take an inclusive approach to talent recruitment and retention, including by advertising employment opportunities in underprivileged areas. We provide high quality, equal opportunities for learning and development, while employees are also able to undertake secondments and volunteer in their communities.

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OUR PEOPLE

Our five Associate Science Directors, from left: Jeanette Whitaker; Claus Svendsen; Glenn Watts; Hazel Jackson and Daniel Read.

Our people are fundamental to our success, and we are proud to foster an inclusive, supportive working environment in which colleagues are empowered to perform at their best. Our workforce reflects a diverse international community, with colleagues representing 45 nationalities across the organisation.

check-ups delivered by our occupational health provider. We also invested further in our Welfare Officers, strengthening internal support for employees, and introduced Safecall, an independent whistleblowing service providing a confidential external route for raising concerns.

We continue to encourage a culture of appreciation and recognition across the organisation, including through our reward scheme. In 2025 we added ‘Our People and Planet’ as a category to recognise the importance of working together to ensure our collective health, safety and wellbeing, as well as progressing with our Strategic Environmental Goals. During the year, colleagues shared more than 850 messages of thanks, with more than 500 accompanied by a monetary voucher in recognition of outstanding contributions.

In 2025, we strengthened scientific leadership through a restructuring of our science directorate. We also welcomed new Associate Science Directors to lead our five science areas and appointed Group Heads, enhancing leadership capacity and providing clearer strategic direction and support for our scientific community.

Employee wellbeing remained an important priority throughout the year, supported by our wellbeing working group and diverse events. This included a guest session with Steffi Bednarek on climate change anxiety, providing opportunities for colleagues to share lived experiences of colour blindness, the continuation of our popular menopause cafés, and in-person wellbeing

In addition to our reward scheme, we recognise the importance of offering a comprehensive and balanced reward package. This year, we introduced pay progression, providing a clearer and

fairer route for employees to progress, as they develop in their roles. We improved our pay reporting and were pleased to record progress in our gender pay gap for the fourth consecutive year, alongside significant performance in our second equal pay audit. To ensure colleagues are well informed of the full range of reward and recognition available, we also introduced quarterly Reward Round-up sessions for all employees.

We were pleased to retain our Disability Confident Employer status under the UK Government’s Disability Confident scheme, reflecting our continued commitment to inclusion and accessibility for people with disabilities.

As a Disability Confident Employer, we are committed to ensuring that disabled people can join us and thrive within the organisation. This includes:

Consultation and communication

We are committed to maintaining strong and constructive employee relations and encourage trade union membership. We formally recognise Prospect as our

OUR PEOPLE

employee representative, and work in partnership through the Joint Consultation and Negotiation Committee to consult, negotiate and exchange views on matters affecting our employees.

During the year, we refreshed our employee engagement arrangements, replacing our previous forum with two dedicated groups: the Strategic Engagement Forum and the Operational Improvement Forum. Together, these forums enable employees across the organisation to participate in focused discussions, supporting strategic dialogue and collaborative problem-solving on operational matters.

We also continued to use regular pulse surveys to gather timely feedback from colleagues, helping us to understand emerging themes and ensuring employees’ opinions and perspectives inform organisational priorities and decisionmaking.

We further encourage open communication through our fortnightly employee UKCEH Connects meetings and a programme of Chief Executive Q&A sessions held across all sites. In 2025, we also introduced our Quarterly Leadership Collective, creating a dedicated forum for senior leaders to strengthen connections, share learning and improve the flow of information across the organisation.

To ensure employees remain well informed, we share organisational updates throughout the week via our intranet, complemented by our weekly newsletter, The Grapevine, which highlights key news and developments for employees and students. We have also introduced a monthly leadership pack, bringing together key messages to support leaders in communicating consistently and effectively with their teams.

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Our gender composition

The data provided here represent a snapshot of our gender composition on 5 April 2025 compared to 2024.

HRH The Prince of Wales with Maria Jarquin at the Natural History Museum Countdown to COP 30 event

OUR PEOPLE


compared to 2024.
Year 2024 2025
Men 323 331
Women 361 384
2024 Women 2024 Men 2025 Women 2025 Men
Lower Quartile 66.0% 34.1% 63.7% 36.3%
Lower Middle Quartile 56.2% 43.9% 58.7% 41.3%
Upper Middle Quartile 50.3% 49.7% 53.1% 46.9%
Upper Quartile 36.3% 63.7% 39.3% 60.7%

Equity, equality, diversity, and inclusion (EEDI)

We continued to focus on promoting diversity, inclusion and equal opportunities. For example, we developed longer-term action plans to address challenges and opportunities among specific colleague groups such as creating strategies to promote gender equality and ensure an inclusive approach to race and ethnicity. These were created in conjunction with colleague feedback sessions and focus groups ensuring the issues raised were prioritised. All objectives and action plans are designed in line with the UKCEH strategy to 2030, both in sentiment and in length of time to complete.

In January 2025, we held a survey among our employees and students on Gartner Inclusion Index measures, with the results indicating a significant improvement in achieving an inclusive and equitable culture. Initiatives that contributed to this change in results include heavy investment in training and awareness events across the EEDI portfolio and protected characteristics

and have started to build on colleague engagement to connect through staff networks.

The Inclusive Employers recognition scheme awarded us with Silver accreditation in September, demonstrating our progress and commitment to investing in EEDI.

Health and safety report

Keeping our people safe is our priority. In 2025, we focussed on making improvements to our internal training offering, conducting engagement initiatives, streamlining safety processes and undertaking audits and inspections. For example, we delivered employee training courses on risk assessment and audit awareness and launched a training needs matrix to help our people identify health and safety training opportunities relevant to their roles. To further enhance our extensive Health and Safety training programme, we developed refresher training for our ‘Safety Management in a Research Environment’ course for our science research managers. This will be launched in 2026.

We also invited our global security partner, International SOS, to engage directly with employees who travel internationally, to promote the travel safety and security assistance services available to our people and introduce its short training courses as part of our improved international travel approval process.

In addition to safety, we continued to promote better health and wellbeing across the organisation, working with the People team to create a 12-month wellbeing calendar along with offering free flu vaccinations and wellbeing checks. We produced a mini-podcast series as part of our ‘SHE & Me’ campaign focusing on invisible illness stories from individual

employees and delivered our annual ‘Move More’ challenge, to target poor posture and prevent issues relating to prolonged sitting.

Accident reporting

Over the course of 2025, there were 31 accidents (including ill health), 17 incidents (including vehicle incidents) and 49 near misses reported across UKCEH. There were no RIDDOR reportable accidents resulting in more than seven days lost time.

Learning and development

In January 2025, we launched our mandatory four-day management training course, Elevate. This was designed to standardise the quality of people

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management experiences across the organisation. Six cohorts completed the course by the end of the year, representing a total of 73 managers.

We have also digitised our access to individualised learning, approving 642 requests for external courses, while boosting our learning culture across all departments.

In October, we partnered with ICF UK to launch a coaching offer called Ignite. This saw 82 colleagues from a range of disciplines and levels take the opportunity to work on their professional goals, enhancing their career in environmental science.

Postgraduate and early career research

As part of our commitment to recruiting and training the next generation of environmental scientists and expanding access to opportunities, we welcomed 15 interns from across the UK to work closely with our role model scientists at diverse sites for several weeks.

We are currently involved in doctoral training partnerships that support the journey of 15 postgraduate researchers in environmental science.

We also hosted a postgraduate researcher three-day event bringing all lead students together at Wallingford for networking, training and presentations, celebrating the contribution of the students to UKCEH.

Research integrity

At UKCEH, we are committed to adhering to the principles defined in the Concordat to Support Research Integrity and integrate these into our everyday research culture. This is exemplified in our core values of teamwork, excellence and integrity. We

recognise the need to place research integrity at the centre of our research endeavours and ensure that research excellence is underpinned by the highest standards of honesty, transparency, accountability, rigour and respect.

UKCEH operates in line with UKRI’s Good Research and Trusted Research Policies and Processes, and according to our own Code of Ethics, together with relevant policies and procedures for Research Integrity, Research Ethics, Conflicts of Interest and Open Science.

In 2025, we strengthened our research integrity framework by updating our Research Ethics Policy. This included adding guidance on the use of artificial intelligence in research, and enhancing safeguarding measures, supported by a dedicated external reporting route.

We published a revised Open Research policy, with accompanying training on data management and open access. Open access is the principle that research should be as open as possible, and supports accessible, transparent and reproducible science.

Our teams made progress on authorship guidelines and preparations for signing the Technician Commitment. The commitment aims to ensure visibility, recognition, career development and sustainability for technicians working in higher education and research, across all research disciplines.

Meanwhile, we continued to conduct awareness-raising activities across the organisation and integrating trusted research processes which protect UKCEH’s intellectual property.

There were no formal allegations of scientific misconduct investigated in 2025.

OUR STAKEHOLDERS

How we work with stakeholders

UKCEH delivers world-class and impactful research on the environment – in relation to land, water and air – both in the UK and internationally. Conscious that complex environmental challenges require collaborative solutions, we are proud of our diverse, outstanding partners. Together, we deliver the insights and solutions needed to protect the climate and environment, promote food security and ensure that cities remain habitable. Our work seeks to address multiple challenges, including improving air quality, preventing further climate change (from rising temperatures to extreme weather events such as floods, droughts or wildfires), and addressing water scarcity, while ensuring that everyone has access to clean, safe water.

Partnering for the environment

From left: Amulya Chevuturi, Jeanette Whitaker, Judith Batchelar, Stu Wainwright, Deborah Meaden, Mark Sutton, Kate Farley, Anita Lazurko, Lee Walker and Jade Hatton.

In 2025, we hosted our inaugural Trustees’ Dinner at the Royal Institution in London, highlighting our shared commitment to collaboration, innovation and lasting environmental impact. The event brought together trustees, scientists and representatives from government, science, NGOs and business, offering a valuable opportunity to showcase the depth and diversity of our work and share our new brand identity. The evening sparked engaging discussions on the importance of partnership in delivering environmental solutions.

Dragon’s Den panellist Deborah Meaden and UKCEH Associate Science Director Jeanette Whitaker, exploring how UKCEH’s science can support businesses. Attendees also enjoyed a performance by violinist Ellie Wilson, who presented ‘Moth x Human’, a unique collaboration inspired by moth activity data to raise awareness of nighttime pollinators.

We also encouraged attendees to join a voluntary Campaign Planning Group to help guide us as we launch an ambitious fundraising programme in 2026.

Among the highlights, there was a conversation between entrepreneur and

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Here are some examples of how we worked with stakeholders in 2025:

Complaints and feedback

UKCEH maintains comprehensive and rigorously applied policies and procedures to manage external complaints and uphold high standards of customer satisfaction, in line with the requirements of ISO 9001 and recognised best practice frameworks. We undertake regular customer satisfaction surveys, the outcomes of which are reviewed by both the Executive Committee and the Board of Trustees, to drive continuous improvement across our services.

As part of our feedback processes, we also request information on the impact of our work in relation to the project delivered and the extent to which our outputs support and add value to the funder’s existing and future priorities. We have resolved all external complaints received in 2025.

How we engage with suppliers

We remain committed to creating value through our procurement activities, in line with our commercial, charitable, environmental and social objectives, while

complying with relevant legal requirements. As a charity primarily funded by the public sector, we adhere to the Procurement Act 2023.

efficient route to purchasing. Importantly, we require our suppliers to respect our values and goals, including our social and environmental commitments. In 2025, we launched our Net Zero Ambitions and invited our strategic suppliers to support our journey towards Net Zero.

Our transparent approach to engaging with suppliers ensures a cost effective and

Highlighting the importance of protecting moths

We sought to raise awareness of the importance of moths to biodiversity and food security through an evocative musical performance. Moths are indicators of ecosystem health, an important food source for a range of predators, and effective pollinators for crops and wildflowers. Collaborating with our biodiversity team, violinist and composer Ellie Wilson created Moth x Human, an immersive audio-visual performance bringing to life the decline of moths in our environment.

music and sound, using data collected by UKCEH’s automated insect monitoring activities. It premiered at the New Music Biennial event in Bradford and London, accompanied by a bespoke animated visual backdrop, designed by students from The Northern School of Art. Other events included a special late-night opening of the Oxford University Museum of Natural History.

Produced by Oxford Contemporary Music, this unique project transformed real moth activity into an intense ‘soundscape’ describing the activities of moths through

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ENVIRONMENT

ENVIRONMENT

Environmental, energy and carbon reporting

In 2025, we updated our Environmental Goals to better support our new UKCEH Strategy. Our Board of Trustees established a formal Environmental Sustainability Working Group to provide focus and oversight for the goals. We are pleased to share some of the progress made towards each of our strategic environmental goals below.

  1. Reduce UKCEH reliance on fossil fuels and achieve ‘Net Zero’ Scope 1 and Scope 2 GHG emissions by 2040 and Scope 3 emissions by 2050.

engagement through similar events in future. In addition, we launched our employee-led ‘Sustainable Stories’ as part of our ‘SHE & Me’ campaign to further support employee engagement with Environmental Sustainability, together with Health, Safety and Wellbeing initiatives.

Our Executive Committee and Board of Trustees approved our ambitious Net Zero pathway, developed in line with the Science-based Target Initiative methodology. We installed 14 electric vehicle (EV) charger ports at our Wallingford and Edinburgh sites, with capacity for extension, and received Natural Environment Research Council (NERC) funding to invest in new EV fleet vehicles in 2026.

We provided a case study to the Wellcome Trust outlining our progress against the Concordat Commitments. This helped contribute to the UKRI landscape report on environmental sustainability and research and innovation practice. We also held a weeklong Bioblitz survey across our main UK sites in June, through which we recorded 466 observations of plants, insects, lichen and other organisms, representing over 211 species.

Installation of direct drive motors for the solar dome fans at our Aber Climate Change facility in January 2025 has helped to achieve a 43% reduction in electricity use at this field site during the year, compared to 2024. An initial RIBA survey of UKCEH sites was commissioned by NERC at the end of 2025, the results of which will help to inform future investment decisions to help achieve our Net Zero goals.

  1. Demonstrate efficient use of resources

  2. and seek to reduce environmental impacts associated with our scientific research and from our operational activities

As part of Net Zero Connects week, the UKCEH Environmental Data Science team showcased how they have been considering sufficiency as part of UKCEH Sustainable Digital Research Infrastructure and held workshops to engage with the wider scientific workforce.

  1. Actively engage our people and key partners with UKCEH sustainability commitments.

We hosted our first Net Zero Connects week, engaging our people with core topics linked to our high ambition Net Zero pathway in November 2025. This was positively received, and we are seeking ways to ensure ongoing

One example of investment in more efficient research equipment is the

upgrading of our Miseq sequencers which will reduce energy consumption and waste generation associated with genetic sequencing research.

We also launched a Sustainable Catering survey at our Wallingford site at the end of 2025 to consult with employees on restaurant usage and consider ways to improve the sustainability of future provisions.

  1. Enable UKCEH people to make climate conscious travel decisions for personal and business travel needs.

As part of our Net Zero Connect week, we invited employees to meet with the partner providers who manage our Cycle to Work and EV car salary sacrifice schemes. These sessions were recorded and are available on demand for new and existing employees.

We are working closely with our Travel Management Company as part of its Sustainability Exchange Network to explore ways to support and promote more sustainable modes of travel for our people.

  1. Integrate sustainability considerations within UKCEH business and decisionmaking processes and work towards voluntary corporate reporting in line with recognised standards.

In 2025, we began engaging with key suppliers and partners to better understand their journeys to reduce environmental impact. We also integrated additional information about the environmental attributes of some of our most frequently ordered science items within the catalogue purchasing system, with further enhancements planned for 2026. We now formally require internal capital

investment requests for infrastructure and equipment to consider associated environmental sustainability impacts and explore alternatives.

We completed a gap analysis against voluntary corporate reporting standards to identify opportunities to strengthen our external reporting. As part of this process, core representatives from our Environmental Goal Delivery Groups identified key climate and nature risks and opportunities for UKCEH in line with the TCFD and TNFD Standards.

  1. Optimise management of UKCEH sites to enhance biodiversity and support ecosystem services.

Over summer, we deployed a camera in the wildlife pond at our Edinburgh site as part of a pilot collaboration with the Amphibian and Reptile Conservation Trust. We were delighted to observe all three native newt species, along with the common toad and common frog inhabiting the pond.

Over the summer months NERC commissioned biodiversity benchmark assessments at our Edinburgh and Wallingford sites, along with the Monks Wood field site. We will review and implement the resulting recommendations in 2026, as appropriate.

During Net Zero Connect week staff volunteers planted 250 metres of bare root native hedging at our Edinburgh site after a successful match-funded bid to the Woodland Trust’s MOREhedges scheme. Investment to install an on-site composter (Ridan Compost Box 10) will enable us to transform plant and food waste generated on site into compost for use in the fruit and vegetable communal raised allotment beds.

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Streamlined Energy and Carbon Reporting (SECR) Disclosure – Methodology & Limitations

The GHG emissions within this disclosure have been assessed following the GHG Protocol Standard and the Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance (2019). The calculations have been completed using 2025 emission conversion factors published by the Department for Energy Security and Net Zero (DESNZ) and the Department for Business, Energy and Industrial Strategy (BEIS)

1. The assessment follows the

dual-reporting approach for assessing Scope 2 emissions from purchased electricity, with tariff-specific emission factors from relevant suppliers used for market-based calculations. The table below summarises the GHG emissions for reporting year: 1 January 2025 to 31 December 2025.

  1. The previous year’s assessment results are provided for comparison.

Table 1: Breakdown of GHG emissions for UKCEH calendar year 2024 and 2025 for SECR

Scope GHG Emission Source 2025 GHG
Emissions
(tCO2e)		 2024 GHG
Emissions
(tCO2e)
1 Natural Gas 547.41 582.67
Fugitive Refrigerants 176.49 92.86
UKCEH Owned Vehicles 105.17 100.18
Other Fuel (e.g. generators,
equipment)		 1.10 2.45
Scope 1 subtotal 830.17 778.16
2 Electricity (location-based) 558.28 663.05
Electricity (market-based) 0.37 10.47
Scope 2 subtotal (location-based) 558.28 663.05
Scope 2 subtotal (market-based) 0.37 10.47
3 Employee-owned Vehicles
(Grey Fleet)		 26.03 25.44
Hire Vehicles 10.36 18.85
Scope 3 subtotal 36.39 44.29
Total tCO2e emissions (location-based) 1,424.84 1,485.50
Intensity Metric: Total location-based
tCO2e emissions per £1k turnover		 0.02 0.02
Intensity Metric: Total location-based
tCO2e emissions per average employee		 1.93 2.10
Total tCO2e emissions (market-based) 866.93 832.92
Intensity Metric: Total market-based
tCO2e emissions per £1k turnover		 0.01 0.01
Intensity Metric: Total market-based
tCO2e emissions per average employee		 1.18 1.17

ENVIRONMENT

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Helen Grant, Analytical Chemistry Lab
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Table 2: Summary energy use for UKCEH calendar year 2024 and 2025 for SECR

2025 Energy Use (kWh) 2024 Energy Use
(kWh)
Total purchased UK energy use3 6,717,098 6,979,973
Optional disclosure: Additional electricity
consumption from on-site generation 4		 122,117 96,365

  1. The following conversion factors were used to calculate GHG emissions: kgCO2e/kWh (for electricity and natural gas), kgCO2e/kg (for refrigerants), kgCO2e/litre (for vehicles where litres fuel was available), kgCO2e/mile (for vehicles where litres fuel was not available).

  2. For the UKCEH Bangor site, electricity and gas consumption data covers the period: 1st August 2024 to 31st July 2025 as utilities data are provided by Bangor University on an annual basis.

  3. Total purchased UK energy use includes mandatory SECR emission sources only (see Table 1 for breakdown of emission sources). The full UKCEH Scope 1, 2 and 3 GHG emissions inventory will be reported within the Sustainability section of our website (https://www.ceh.ac.uk/about-us/sustainability) once complete in autumn.

  4. This is a voluntary disclosure showing UKCEH on-site solar consumption, derived from the on-site solar generation minus any generated electricity exported to the mains grid. This energy consumption is in addition to, and not accounted for within, the ‘Total purchased UK energy use’ figure, which is a mandatory disclosure within the SECR requirements.

Overview and energy efficiency actions

Total purchased energy usage (kWh) has decreased in 2025. This is predominately due to a combination of warmer weather over the winter months requiring a reduced gas demand; along with increased on-site renewable electricity generation this year and capital investments in energy efficient infrastructure, including those described within our Environmental Goal 1 and 3 updates above.

We incurred higher losses from aging air-conditioning units in 2025 than the previous year. However, location-based emissions remain lower than in 2024 due to the reduced energy demands from UKCEH sites. Due to UKCEH using electricity from low-carbon sources, refrigerants account for a higher proportion of the market-based emissions total, hence the overall increase from 2024.

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RISK MANAGEMENT

RISK MANAGEMENT

The Trustee Directors hold ultimate responsibility for risk management, helping to ensure that risks are effectively governed at the highest level. Our Risk Strategy defines UKCEH’s overarching approach to risk, while our Risk Policy establishes clear responsibilities for identifying, assessing and managing risks.

Day-to-day risk management is assigned to the Executive Committee, which is responsible for identifying, evaluating, and monitoring key risks at the organisational level, such as any escalated risks from individual science project risk registers. This includes implementing controls and mitigation actions to reduce risk exposure.

Risk governance is integrated within the Quality Management System (QMS), certified to ISO 9001, helping to ensure

Cybersecurity and data protection

We actively monitor emerging cyber threats and trends, with a particular focus on critical risks such as ransomware and phishing. Our continuous surveillance informs our approach to security controls and mitigations, including targeted investments in cybersecurity infrastructure and improvements to key processes such as backups and recovery.

To maintain a robust security status, we regularly assess the effectiveness of our technological defences, incident reporting and recovery capabilities, taking steps to manage risk within acceptable levels. This includes conducting security penetration testing and implementing necessary remediation measures.

a structured and systematic approach to risk oversight. The Finance and Audit Subcommittee and the full Trustee Board review the risk register quarterly, focusing on high-level organisational risks and any significant changes.

In 2025, UKCEH continued to implement an electronic system to improve risk recording and monitoring, supporting science team leads in capturing and assessing risks. We review any areas of high risk and identify emerging risks, as appropriate.

To further understand risk, the UKCEH has grouped all organisational risks under 12 risk groups. The table (right) shows the principal risks within each of these groups, and the main actions we are taking to manage them.

In 2025, we successfully retained our Cyber Essentials accreditation, meeting evolving requirements. All UKCEH employees complete mandatory annual training on General Data Protection Regulation (GDPR), cyber security awareness and phishing identification, supplemented by ongoing guidance and communications. Additionally, all project audits and UKCEH risk assessments include a regular review of personal data management practices.

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Risk theme Principal risk under How the risk is managed
each theme
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Risk theme Principal risk under
each theme		 How the risk is managed
Technology
infrastructure		 Cyber security incident • Cyber essentials certification
• Clear policies and controls in place
• Dedicated resources and investment in IT hardware and software
• Employee training and testing
• Multi-factor authentication and identityaccess management
Technology
innovation and
capabilities		 High performing
computing capacity		 • Investment in digital research infrastructure
• Improvement team across IT and science groups
• Project and stakeholder management
• Capacity planningand resilience training
Financial Funding uncertainty • Engagement with key funders and stakeholders
• Scenario-based planning
• Income diversification
• Quarterlyforecasting
International International project
delivery		 • Project management processes are in place
• Experienced staff support contract delivery
• Clear communication is maintained with stakeholders
• Financial controls monitor costs and compliance
Environmental Meeting climate
and sustainability
commitments		 • Ambitious net zero plan in place
• Board working group to advise and monitor progress
• Certified to ISO14001
Infrastructure Suitability of our estate • Estate plan and working group
• Estates Working Group governance
• Condition surveys and investmentplanning
Health and
safety		 Serious health and
safety incident		 • Incident management plan, travel policies, training, strong
procedures – see ‘Health and safety’ section page 35
• Certified to ISO 45001
People Workforce capability
and wellbeing		 • People team resource and wellbeing officers
• Training and development
• Initiatives and events
• Business planning
• Dedicated recruitment team
• Workload planning
• Leadershipcapability
Strategy Delivery of strategic
objectives		 • Clear objectives are agreed
• Quarterly reporting cycle to monitor progress and make
interventions
• Communication plans
• Risk integration into strategicplanning
Science
delivery		 Trusted research and
ethics		 • Research ethics committee
• Artificial Intelligence framework
• Ongoing monitoring of regulations and guidelines
• Datagovernance and assurance
Legal and
compliance		 Major incident of
non-compliance or
control breakdown		 • Policies and procedures regularly reviewed
• Internal and external audits
• Training, communication and awareness
Stakeholder
management		 Reputational incident • New brand rollout
• Communications team and resource
• Monitoringof news and social media

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OUR FINANCES

OUR FINANCES

We continued to grow our income in 2025, while managing our cost base effectively, resulting in an overall surplus of £3.9m (2024 £1.4m). This comprised a net movement of funds of £2.9m (2024: £1.8m) relating to operating activity within our non-capital unrestricted and restricted funds, and a net movement of £1.0m (2024: £(0.4)m) on capital funds. The latter include funding for the purchase of new assets, and depreciation on existing assets. The net positive movement in 2025 was largely

driven by capital funding received from NERC at the end of 2025 and allocated for expenditure in 2026.

In 2025, we continued to place a focus on diversifying our income base and prioritising opportunities, with a portfolio of activity that balances scientific excellence and impact with financial sustainability. This is particularly important given that that much of our research funding is set at less than the full economic cost of delivering the work.

Principal funding sources and income

UKCEH’s total income for 2025 was £76.7m, an increase on £68.9m in 2024. The majority of this income came from UKRI in the form of awards, grants and agreements for scientific research activities of £38.3m (2024: £35.3m). Grants for capital, maintenance and enabling work of £2.7m were received from UKRI during

2025 (2024: £2.2m). Other government departments and the public sector accounted for a further £19.9m of research income (2024: £19.4m). In 2025, we received £7.4m for private and charitable sector projects (2024: £6.3m). Other income derives principally from UKCEH’s trading subsidiary, UKCEH Enterprise.

2025 Income

----- Start of picture text -----
£3.7m
£1.8m £7.4m
£2.9m
£38.3m
£19.9m
£2.7m
----- End of picture text -----

UKRI scientific research income

UKRI grants for capital, maintenance and enabling works Other government departments and public sector

European Commission

Universities

Private and charitable sector

Other income

Expenditure

The principal cost to the organisation is the remuneration and related people costs of the scientific research employees, which accounted for £28.2m in the year (2024: £26.8m). Science direct costs of £18.9m (2024: £17.6m) include the costs of subcontractors and partners, whereby work is delivered in partnership with other institutions. Raising funds expenditure

includes the teams that directly support income generation, such as business development and marketing. Support costs include the pay and related costs of professional services teams as well as the premises, information technology and administrative costs of running the organisation.

2025 Expenditure

----- Start of picture text -----
£1.9m
£2.3m
£19.7m
£28.2m
£2.0m £18.9m
----- End of picture text -----

Science research staff Science direct costs Raising funds Support and other costs Trading expenditure Depreciation

Reserves policy

Reserves consist of restricted funds (capital and non-capital in nature), unrestricted designated funds, and the remainder unrestricted funds, referred to as general reserves, an amount available for the furtherance of general charitable objectives at the discretion of the trustees.

equipment and infrastructure, and maintain a reserve. This is supplemented by other income, including that generated by our trading subsidiary, UKCEH Enterprise Limited.

The balance of the unrestricted designated capital fund at 31 December 2025 was £2.3m, which includes the net value of assets acquired with internal funds, as well as internal funds designated towards future planned capital expenditure.

UKCEH prices its grant and award-funded research under a methodology that allows us to meet funder requirements, cover costs sustainably, reinvest in capital

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OUR FINANCES

[ STRATEGIC REPORT ]

Alice Hope and Andy Elliott (Wildfire Tactical Adviser) recording the Counting the Earth podcast on wildfires.

The restricted capital fund had a balance of £10.0m at 31 December 2025. This represents funding the organisation has received whereby the use is capital in nature and has been specified by the funder. This includes capital items within large research projects such as the NERC-funded Floods and Droughts Research Infrastructure programme.

The restricted fund had a balance of £nil at 31 December 2025. This fund comprises funding and costs in respect of specific research projects. As explained above, for some scientifically important projects, closely linked to our charitable goals, the funding does not fully cover the costs of delivering the project. We co-fund these projects through a transfer of unrestricted funds to restricted funds to enable UKCEH participation. This is completed in total, annually, hence resulting in a £nil fund balance at year end.

UKCEH’s reserve policy sets a dynamic target reserve range. This considers operational costs, long-term income certainty and risk. If the general reserve balance falls below this range, we focus

on rebuilding the reserve. Conversely, if it goes above the range, we will seek to invest the reserve in furtherance of our charitable objectives.

The general reserve target range based on 2025 results is between £8m and £13m. The actual general reserve balance at 31 December 2025 was £11.3m. The board considers that maintaining reserves at least at the middle of the target range is appropriate, particularly given the current funding environment. As general reserves are slightly above this, the board will consider limited and targeted opportunities for reinvestment where there is good justification in 2026. The general reserve balance forms the free reserve.

Our approach to investments and cash management

UKCEH’s investment policy defines our approach to financial investment, objectives, and how we intend to achieve them. We maintain a low to medium attitude to risk, with a primary objective to mitigate erosion of capital by keeping pace with inflation. Commensurate with

our organisational objectives, we place Environmental, Social and Governance (ESG) considerations at the centre of our investment decisions. The finance and audit subcommittee is responsible for the overall oversight of financial investments, on behalf of the board of trustees.

As at 31 December 2025, our investment in the Rathbone Greenbank Strategic Growth Portfolio was £2.2m. This fund is considered to have a medium risk profile, targets a return of CPI+3 percent, and follows a defined sustainable investing approach.

During 2025, we continued to invest in UK Government T-bills of between one- and six-months duration on a rolling basis, managed by Rathbones.

The cash balance for the organisation includes a significant portion of grants and awards received in advance of spend, and hence must be readily available. We use rolling short- and long-term deposits to maximise interest earned, while ensuring that sufficient cash is available to meet day-to-day operational commitments.

Fundraising

UKCEH does not undertake any public fundraising activities that meet the Charities (Protection and Social Investment) Act 2016. However, we have been developing a targeted approach to fundraising through philanthropic organisations, individuals and foundations. In 2025, the board endorsed the formation of a campaign planning group, comprising internal and external stakeholders, with an aim to begin fundraising activities on a small number of defined projects in 2026.

Going concern

The trustees of UKCEH consider the organisation to be a successful going

concern. Since it was established on 1 December 2019, UKCEH has had a positive net income in aggregate, and built its general reserves to a level in the top half of the target reserve range.

In 2024, following a deficit in 2023, we addressed the challenge of growth through funding that does not fully cover costs, with actions including a focus on income diversification as well as prioritising the type of work for which we bid. We subsequently realised surpluses in 2024 and 2025, and have a robust and positive plan in place for 2026.

After a period of growth, we are consolidating the organisation at our current size and taking a considered approach to new opportunities to maintain financial sustainability.

The board of trustees reviewed and approved the 2026 UKCEH plan in December 2025, and has a high degree of confidence in future income levels, with the significant majority of planned income for 2026 already secured.

In the longer term, recognising changes in UKRI funding streams and priorities, we are working closely with key UK government partners, highlighting how our science is integral to national priorities, and positioning ourselves for future funding.

As traditional funding streams change, we are confident that there will be opportunities for us to make progress. Our science is fundamental to addressing global environmental challenges, and demand remains high for our expertise across the public, private and third sectors. We believe that there are no known measurable material uncertainties that could call into doubt the ability of the UKCEH to continue as a going concern.

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[ STRATEGIC REPORT ]

OUR FUTURE PLANS

----- Start of picture text -----
Professor Anjali Goswami, DEFRA Chief
Scientific Advisor, visiting UKCEH.
----- End of picture text -----

OUR FUTURE PLANS

In this first year of our new strategy to 2030, Environmental Science for a Better World , we outline our commitment to combining scientific excellence, innovation, and collaboration, with a relentless focus on impact and sustainability. We put nature and people at the heart of what we do.

UKCEH will focus on:

Research excellence: Deepening our understanding of land, water, and air systems through rigorous research. We will do this, by developing and providing cutting-edge technologies, research infrastructure, and facilities.

Positive impact: Ensuring our science helps governments, businesses and NGOs address the great environmental challenges of our time.

Working in partnership : Delivering realworld solutions that benefit nature and people through research and innovation. We will do this by:

Public engagement: Providing clear, robust, and independent environmental research to enrich public debate and combat misinformation.

Our strategy sets out how collaboration with both new and established partners will deliver shared benefits of protecting nature, boosting growth, and improving people’s lives. Our research is essential for tackling complex environmental issues that require collective action.

This work is based on our principles of:

Our work is only possible due to our expert and dedicated people. We will ensure that they receive the support, training and resources they need to make a positive difference and feel that the UKCEH is an inclusive and equitable place to work.

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[ STATEMENT OF TRUSTEES’ RESPONSIBILITIES ]

The trustees, who are also directors of UK Centre for Ecology & Hydrology for the purposes of company law, are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year. Under that 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 the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period.

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

The board of trustees is responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose (with reasonable accuracy) at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Insofar as each of the trustees is aware:

Approved by the board of trustees of the UK Centre for Ecology & Hydrology on 10 June 2026 including in their capacity as company directors, the strategic report contained therein, and signed on its behalf by:

Judith Batchelar OBE Chair

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[ INDEPENDENT AUDITOR’S REPORT ]

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE UK CENTRE FOR ECOLOGY & HYDROLOGY

OPINION

We have audited the financial statements of the UK Centre for Ecology & Hydrology (‘the charity’) and its subsidiaries (’the group’) for the year ended 31 December 2025, which comprise Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Charity Balance Sheet, Consolidated Statement of Cash Flows, Charity 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 by law and United Kingdom Accounting Standards, including Financial Reports Standard 102 The Financial Reporting Standard applicable in the UK and Republic or Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs UK) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statement that are relevant to our audit of the financial statements in the UK, including the The Financial Reporting Standard (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 our opinion, the financial statements:

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 charity’s or the group’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

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[ INDEPENDENT AUDITOR’S REPORT ]

material respect with the trustees’ report; or

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.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 53, the trustees 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.

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.

In preparing the financial statements, the trustees are responsible for assessing the group and the parent charity’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 charity or to cease operations, or have no realistic alternative but to do so.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

Discussions with UKCEH’s Singaporean partners - Nanyang Technological University (NTU) and Gardens by the Bay - on the scale and impact of our biodiversity monitoring work within the national context and its contribution to wider conservation efforts. We were joined by British High Commission representatives.

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[ INDEPENDENT AUDITOR’S REPORT ]

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011, and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members including internal specialists. 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 charity and group 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 Charities Act 2011 together with the Charities SORP (FRS 102) and the Charities Accounts (Scotland) Regulations 2006. 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 charity’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity and the group 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 income recognition (specifically grant and contract income recognised on a judgemental basis) and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the finance and audit subcommittee about their own identification and assessment of the risks of irregularities, designing and performing audit procedures over the income streams noted previously, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Tara Westcott Senior Statutory Auditor Crowe U.K. LLP Cheltenham

Date: 11/06/2026

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Crowe U.K. LLP is eligible for appointment as auditor of the charity under regulation 10(2) of the Charities Accounts (Scotland) Regulations by virtue of its eligibility under section 1212 of the Companies Act 2006.

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[ FINANCIAL STATEMENTS AND RELEVANT NOTES ]

Consolidated statement of financial activities for the year ending 31 December 2025 - incorporating an income and expenditure account

----- Start of picture text -----
Unrestricted Restricted Unrestricted Restricted Total Total
funds funds designated capital funds 2025 2024
capital funds
Note £000 £000 £000 £000 £000 £000
Income
Donations - - - - - 1
Income from charitable
activities
Scientific research 19,672 50,222 - - 69,894 64,151
Capital and maintenance - 693 - 2,050 2,743 2,192
grants
Education and training 12 183 - - 195 388
Other activities - 180 - - 180 320
Income from other trading
activities
Trading income 2,683 - - - 2,683 947
Other income 316 - - - 316 332
Income from investments 669 - - - 669 609
Total income 2 23,352 51,278 - 2,050 76,680 68,940
Expenditure
Charitable activities 13,438 33,687 349 1,553 49,027 46,318
- - -
Raising funds 1,985 1,985 1,711
Other 2,966 19,078 - - 22,044 19,683
Total expenditure 3 16,404 54,750 349 1,553 73,056 67,712
Net income for the year
6,948 (3,472) (349) 497 3,624 1,228
before transfers
Gain on fixed asset 253 - - - 253 204
investment
Transfer between funds (4,353) 3,472 21 860 - -
Net movement in funds 2,848 - (328) 1,357 3,877 1,432
in year
-
Fund balances at beginning 8,470 2,672 8,680 19,822 18,390
of year
Fund balances at
15 11,318 - 2,344 10,037 23,699 19,822
31 December 2025
----- End of picture text -----

All income and expenditure derives from continuing activities. Results of the charitable company for the year were total income £74,732k and surplus £3,877k.

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[ FINANCIAL STATEMENTS ]

Consolidated balance sheet as at 31 December 2025

Consolidated cash flow statement for the year to 31 December 2025

Company Registration No: 11314957

----- Start of picture text -----
2025 2025 2024 2024
Charity Group Charity Group
Note £000 £000 £000 £000
Fixed assets
Tangible assets 7 9,174 9,174 9,443 9,443
Investments 8 6,727 6,677 6,435 6,385
Total fixed assets 15,901 15,851 15,878 15,828
Current assets
Stocks 9 - 14 - 41
Debtors 10 14,979 14,621 12,934 13,472
Cash at bank and in hand 11 16,935 17,487 12,663 13,067
Current liabilities
Creditors falling due in one year 12 (24,116) (24,274) (21,653) (22,586)
Net current assets 7,798 7,848 3,944 3,994
Net assets 23,699 23,699 19,822 19,822
The funds of the charity
Unrestricted funds
Unrestricted funds 11,318 11,318 8,470 8,470
Unrestricted designated capital funds 2,344 2,344 2,672 2,672
Total unrestricted funds 13,662 13,662 11,142 11,142
Restricted funds
Restricted funds - - - -
Restricted capital funds 10,037 10,037 8,680 8,680
Total restricted funds 10,037 10,037 8,680 8,680
Total charity funds 15 23,699 23,699 19,822 19,822
----- End of picture text -----

----- Start of picture text -----
2025 2025 2024 2024
Charity Group Charity Group
£000 £000 £000 £000
Cash flows from operating activities
Net income/(expenditure) and net movement in 3,877 3,877 1,432 1,432
funds for the year
Interest receivable (624) (624) (585) (585)
Dividend receivable (45) (45) (24) (24)
Depreciation 1,902 1,902 1,990 1,990
Investment management fee 18 18 14 14
(Gain)/loss on disposal of fixed assets (2) (2) - -
(Gain)/loss on investments (253) (253) (204) (204)
Capital grants receivable (2,050) (2,050) (850) (850)
Decrease/(increase) in stock - 27 - (41)
(Increase)/decrease in debtors (2,045) (1,149) (2,095) (2,866)
Increase/(decrease) in creditors 2,463 1,688 (445) 412
Net cash provided by operating activities 3,241 3,389 (767) (722)
Cash flows from investing activities
Interest received 612 612 563 563
Purchase of tangible assets (1,633) (1,633) (1,693) (1,693)
Purchase of investments - - (1,000) (1,000)
Proceeds from sale of fixed assets 2 2 - -
Capital grants received 2,050 2,050 850 850
Net cash provided by investing activities 1,031 1,031 (1,280) (1,280)
Change in cash and cash equivalents in the year 4,272 4,420 (2,047) (2,002)
Cash and cash equivalents at the beginning 12,663 13,067 14,710 15,069
of the year
Change in cash and cash equivalents due to
exchange rate movements
Total cash and cash equivalents at the end of the 16,935 17,487 12,663 13,067
year
----- End of picture text -----

The financial statements on pages 60-81 were approved by the Board and authorised for issue on 10 June 2026 and signed on its behalf by:

Judith Batchelar Chair

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[ FINANCIAL STATEMENTS ]

RELEVANT NOTES

Notes to the Consolidated Financial Statements

1. Accounting policies

a. Basis of preparation

UK Centre for Ecology & Hydrology (UKCEH) (”the Charity”) is a private company limited by guarantee, domiciled and incorporated in England and Wales on 17 April 2018. The Company is registered as a charity in England and Wales and Scotland. The registered trading address and company and charity numbers are on page 27. The Charity began trading on 1 December 2019. The charity is a public benefit entity as defined by FRS102 and part of a public benefit group. Monetary amounts in these financial statements are rounded to the nearest whole £1,000, except where otherwise indicated. Sterling is the Group’s functional and presentational currency.

The group accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note/s to those accounts. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (FRS102) applicable to charities preparing their accounts in accordance with FRS102, the Financial Reporting Standard applicable in the UK and Republic of Ireland issued on 16 July 2014, the Charities Act 2011, the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and UK Generally Accepted Accounting Practice.

The principal accounting policies adopted in these financial statements, which have been consistently applied, are as follows:

b. Basis of consolidation

The consolidated financial statements incorporate the financial statements of UKCEH and its subsidiary undertaking in accordance with Financial Reporting Standard (“FRS”) 102 “Accounting for Subsidiary Undertakings”. The results of the subsidiary are consolidated on a line by line basis. The financial statements of all group undertakings and associates are made up to 31 December 2025. A separate income and expenditure account has not been presented for UKCEH as this is exempted by Section 408 of the Companies Act 2006.

UKCEH has two subsidiary undertakings: UK Centre for Ecology & Hydrology Enterprise Limited (Company registration number: 12251749, wholly owned) and UK Centre for Ecology & Hydrology International Limited (Company registration number: 15670898, limited by guarantee without share capital). The principal activity of the UK Centre for Ecology & Hydrology Enterprise Limited is to increase UKCEH’s social, economic and environmental impact and science excellence through commercial product and service collaborations and commercialisation of UKCEH research outputs and capabilities. UK Centre for Ecology & Hydrology International Limited was dormant in 2024 and began operating in 2025. It has been established to help undertake international activities in support of the Charity’s goals. The registered office of both subsidiaries is Maclean Building, Crowmarsh Gifford, Wallingford, Oxfordshire, OX10 8BB.

c. Going concern

The trustees of UKCEH consider the organisation to be a successful going concern. Since it was established on 1 December 2019, UKCEH has had a positive net income in aggregate, and built its general reserves to a level in the top half of the target reserve range.

In 2024, following a deficit in 2023, we addressed the challenge of growth through funding that does not fully cover costs, with actions including a focus on income diversification as well as prioritising the type of work for which we bid. We subsequently realised surpluses in 2024 and 2025, and have a robust and positive plan in place for 2026.

After a period of growth, we are consolidating the organisation at our current size and taking a considered approach to new opportunities to maintain financial sustainability.

The board of trustees reviewed and approved the 2026 UKCEH plan in December 2025. They have also reviewed longer term five-year forecasts and scenario plans, and have a high degree of confidence in future income levels, with the significant majority of planned income for 2026 already secured.

In the longer term, recognising changes in UKRI funding streams and priorities, we are working closely with key UK government partners, highlighting how our science is integral to national priorities, and positioning ourselves for future funding.

As traditional funding streams change, we are confident that there will be opportunities for us to make progress. Our science is fundamental to addressing global environmental challenges, and demand remains high for our expertise across the public, private and third sectors. We believe that there are no known measurable material uncertainties that could call into doubt the ability of UKCEH to continue as a going concern.

d. Income

Grant income is recognised in the statement of financial activities when received or when the charity becomes entitled to receipt. Grants that have been received will be treated as deferred income where there are specific requirements in the terms of the grant that the income recognition is dependent on certain activities being completed in a future accounting period.

Investment income relates to interests receivable from bank accounts and dividends receivable. These are recognised in the year they are earned.

Other income includes property rental income, training income, data licensing income and miscellaneous income. Revenue is recognised when the obligation is fulfilled. Capital grants and Institutional Funding are recognised in the consolidated statement of financial activities (“SoFA”) when entitlement passes.

e. Expenditure

Charitable activity expenditure represents the full cost of the research performed. It includes the cost of direct staff, consumable and indirect costs apportioned on the basis of use. Raising funds represents the cost of business development and communications. Governance costs represent the necessary cost of compliance with statutory and constitutional requirements. Support costs have been allocated to charitable activity expenditure, costs of generating funds and governance costs on a basis consistent with the use of resources.

f. Restricted funds

Where research at UKCEH is funded by grants with conditions attached to them, these are shown as restricted. Capital grants received and receivable together with other restricted funds received and receivable and used to purchase tangible assets are included within restricted funds. A restricted capital reserve has been established representing the net book value of fixed assets purchased from capital grants and the remaining committed but unspent capital funding.

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RELEVANT NOTES

[ FINANCIAL STATEMENTS ]

g. Unrestricted funds

Research grants that do not contain conditions for the final receipt of funds have been treated as unrestricted. Funds received for non-specified purposes have also been included as unrestricted. The designated capital fund within unrestricted reserves represents the funds that have been set aside by the trustees following transfer of assets from UKRI-NERC on independence and internal investment in capital.

h. Tangible assets and depreciation

Tangible assets are shown at cost or valuation less accumulated depreciation. The cost of tangible assets is their purchase cost, together with any incidental costs of acquisition. Items over £5,000 are capitalised. Depreciation is calculated using the straight line method to write off the cost or valuation of assets, less any estimated residual value, over their estimated useful lives at the following rates:

Assets under the course of construction are included at cost, and will be depreciated to their estimated residual values over their expected useful lives on a straight-line basis once the asset is available for use. An assessment is made at each reporting date of whether there are any indications that a fixed asset may be impaired or that an impairment loss previously recognised has fully or partially reversed.

i. Fixed asset investments

Investment in the subsidiary undertaking is included at cost. Other investments are stated at fair value which is determined by reference to market value.

j. Stocks

Stocks relates to the AMI (Automated Monitoring of Insects) system and CEH DELTA (Denuder for Long-Term Atmospheric sampling) system manufactured under contract in the subsidiary entity UK Centre for Ecology & Hydrology Enterprise Ltd.

Stocks are stated are the lower of cost and net realisable value, being the estimated selling price less costs to sell. Cost is based on the cost of purchase on a first in, first out basis.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to sell. The impairment cost is recognised immediately.

k. Debtors

Debtors are non-interest bearing and are stated at their nominal value, as reduced by appropriate allowances for estimated irrecoverable amounts.

l. Trade creditors

Trade creditors are non-interest bearing and are stated at their nominal value.

m. Staff and pensions

UKCEH staff that joined before 1 December 2019 were employed by UKRI-NERC up to 1 December 2019, when they transferred employment to the Institute under TUPE. Transferred employees retain their membership of the Research Councils Pension Scheme (RCPS), where applicable, with UKCEH becoming an admitted employer in the scheme. The RCPS is a defined benefit scheme funded from annual grant-in-aid on a pay-as-you-go basis. The RCPS Pension Scheme is a multi-employer scheme and UKCEH is unable to identify its share of the underlying assets and liabilities. UKCEH therefore accounts for the scheme as if it were a wholly defined contribution scheme. As a result, the amount charged to the income and expenditure account represents the contributions payable to the scheme in respect of the accounting period. Liabilities for the payment of future benefits are the responsibility of the RCPS and accordingly are not included in these Financial Statements. UKCEH has recruited all new staff from December 2019 on its own terms and conditions, covering basic pay and allowances, contractual payments, tax, Nl, and liabilities for pension contributions and redundancy. Such staff are eligible to join a defined contribution scheme.

n. Termination payments

Termination payments are payable when employment is terminated before the normal retirement date or end of employment contract. Termination costs are recognised when the offer of the benefits can no longer be withdrawn.

o. Operating leases

Rental costs are charged to the statement of financial activities on a straight line basis over the life of the lease.

p. Foreign currency transactions

The functional and reporting currency is pounds sterling. Transactions in foreign currencies are recorded at the rate of exchange ruling at the date of the transaction. Assets and liabilities denominated in foreign currencies are translated at year end exchange rates. All gains and losses are taken to the statement of financial activities in the year to which they relate.

q. Judgements in applying accounting policies and key sources of estimation

Preparation of the financial statements require management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

r. Donated goods, services and facilities

These are included at the value to the charity where this can be quantified. In accordance with the Charities SORP (FRS 102), no amounts are included in the financial statements for services donated by volunteers.

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[ FINANCIAL STATEMENTS ]

2. Analysis of incoming resources

----- Start of picture text -----
Research Education Other Total Total
activities and training activities 2025 2024
activities
£000 £000 £000 £000 £000
Donations - - - - 1
Income from charitable activities
Grant and contract income
UKRI 37,989 115 180 38,284 35,305
Other government departments and 19,901 39 - 19,940 19,417
public sector
- -
European Commission 2,856 2,856 2,395
Universities 1,760 40 - 1,800 1,459
Charities 798 - - 798 1,472
Private sector 6,590 1 - 6,591 4,811
Total grant income 69,894 195 180 70,269 64,859
Capital and maintenance grants
UKRI
Repairs and maintenance 693 - - 693 1,342
Capital expenditure 2,050 - - 2,050 850
- -
Total capital grants 2,743 2,743 2,192
Total income from charitable 72,637 195 180 73,012 67,052
activities
Income from other trading
activities
Trading income - - 2,683 2,683 947
Rental income - - 32 32 67
Training income - 88 - 88 135
Other income - - 196 196 130
Total income from other trading - 88 2,911 2,999 1,279
activities
Income from investments - - 669 669 609
Total income 72,637 283 3,760 76,680 68,940
----- End of picture text -----

RELEVANT NOTES

3. Analysis of resources expended

----- Start of picture text -----
Research Education Other Total Total
activities and training activities 2025 2024
activities
£000 £000 £000 £000 £000
Direct charitable expenditure:
Science staff cost 26,666 1,578 - 28,244 26,766
Science direct costs 18,816 65 - 18,881 17,562
Depreciation 1,902 - - 1,902 1,990
-
Expenditure on charitable 47,384 1,643 49,027 46,318
activities
Governance costs - - 98 98 80
Support costs 19,045 585 - 19,630 19,201
- -
Raising funds 1,985 1,985 1,711
Trading expenditure - - 2,316 2,316 402
Expenditure on other activities 19,045 585 4,399 24,029 21,394
Total expenditure 66,429 2,228 4,399 73,056 67,712
----- End of picture text -----

Allocation of support costs, governance and raising funds

----- Start of picture text -----
Research Education Raising Governance Total Total Basis of
activities and training funds costs 2025 2024 allocation
activities
£000 £000 £000 £000 £000 £000
Senior management and 1,017 31 - 98 1,146 1,305 Chargeable
other central costs hours
Facilities (including rent 7,552 232 - - 7,784 8,031 Chargeable
and maintenance) hours
- - -
Business development 1,985 1,985 1,711 Activity
and engagement
Finance, procurement and 2,598 80 - - 2,678 2,558 Chargeable
project support hours
IT 4,343 133 - - 4,476 4,080 Chargeable
hours
People & skills 1,691 52 - - 1,743 1,687 Chargeable
hours
Research contracts, 1,664 51 - - 1,715 1,477 Chargeable
licensing and info services hours
Science support 180 6 - - 186 143 Chargeable
hours
Total support costs 19,045 585 1,985 98 21,713 20,992
----- End of picture text -----

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RELEVANT NOTES

[ FINANCIAL STATEMENTS ]

Analysis of governance costs

----- Start of picture text -----
Total Total
2025 2024
£000 £000
Audit of the financial statements 31 28
Other assurance services 40 25
Trustees remuneration and expenses 27 27
Total governance costs 98 80
----- End of picture text -----

4. Employee information

The monthly average number of persons employed by the group and charitable company during the year, analysed by category, was as follows:

----- Start of picture text -----
Group and Charitable Company 2025 2024
Number Number
Science 550 529
Infrastructure 187 180
Total 737 709
----- End of picture text -----

The aggregate payroll costs of these persons were:

----- Start of picture text -----
Group and Charitable Company 2025 2024
£000 £000
Wages and salaries 31,185 28,489
Social security costs 3,774 2,923
Pension costs 5,041 4,831
Total 40,000 36,243
----- End of picture text -----

An analysis of the number of staff who fall within staff cost bands (excluding pension cost) from £60,000 upwards is provided below:

----- Start of picture text -----
Group and Charitable Company 2025 2024
£60,000 - £69,999 39 33
£70,000 - £79,999 19 11
£80,000 - £89,999 5 3
£90,000 - £99,999 1 2
£100,000 - £109,999 - -
£110,000 - £119.999 1 1
£120,000 - £129.999 4 1
£130,000 - £139.999 - 1
£180,000 - £189,999 2 1
Total 71 53

----- End of picture text -----*

Staff that joined prior to 1 December 2019 were employed by UKRI-NERC, when these employees transferred employment to the charity under TUPE.

Transferred employees retain their membership of the Research Councils Pension Scheme, where applicable, with UKCEH becoming an admitted employer in the scheme.

Staff that joined after 1 December 2019 are employed under UK Centre for Ecology & Hydrology terms and conditions.

The key management personnel of the group comprise of the Executive Board and Science Board, as listed on page 27.

The employment costs (salaries, social security costs and pension costs) of the key management personnel for the group and charitable company were £1,501,434 (2024: £1,601,019)

Redundancy and early termination payments in the year totalled £152,791 (2024: £45,000).

----- Start of picture text -----
Mark Simpson, Azmol Ali and Tom Burton cut the ribbon at the upgraded Severn trap
site to mark the installation of the first pieces of equipment installed under FDRI.
----- End of picture text -----

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[ FINANCIAL STATEMENTS ]

5. Remuneration of trustees

----- Start of picture text -----
2025 2024
£000 £000
Salary 14 13
Expenses 13 12
Total 27 25
----- End of picture text -----

Judith Batchelar was appointed as Chair of the Board of Trustees on 2 December 2024. She received remuneration of £14,356 (2024: £1,128), including employer’s national insurance contribution, covering work completed in this role. The remuneration was agreed and provided under a provision in the governing document of the Charity. Remuneration was provided due to the Trustee’s role as the Chair of the Trustees, which requires a range of knowledge and experience and has a remit in terms of the role that the Trustee is required to provide. The trustee did not receive any employee benefits or pension contribution.

Lord Cameron of Dillington retired on 28 November 2024 from his role as Chair of the Board of Trustees. He received remuneration of £nil (2024: £12,051), including employer’s national insurance contribution, covering work completed in this role. The remuneration was agreed and provided under a provision in the governing document of the Charity. Remuneration was provided due to the Trustee’s role as the Chair of the Trustees, which requires a range of knowledge and experience and has a remit in terms of the role that the Trustee is required to provide. The trustee did not receive any employee benefits or pension contribution.

The Executive Director, Stuart Wainwright is also a Trustee. He received no remuneration for this role in the year. He received remuneration and benefits for his services as Executive Director of £225,254 including employer’s national insurance contribution (2024: £219,347).

RELEVANT NOTES

are subject to corporation tax; however profits in the year are gifted to the charitable company resulting in a £nil tax charge payable.

The trading activities of the subsidiary company UK Centre for Ecology & Hydrology Ltd are subject to corporation tax. There was no tax payable in the year.

7. Tangible assets

Group and charitable company:

----- Start of picture text -----
Improve- Plant Fixture IT Transport Assets Total
ments to equipment and equipment under
buildings fittings construction
Cost
As at 1 January 2025 732 13,788 254 3,876 187 944 19,781
Addition - 688 - 302 52 591 1,633
- - - -
Disposal (45) (21) (66)
Transfer - 485 - 459 - (944) -
As at 31 December 2025 732 14,916 254 4,616 239 591 21,348
Depreciation
-
As at 1 January 2025 (90) (6,687) (192) (3,182) (187) (10,338)
-
Charged in the year (33) (1,371) (20) (475) (3) (1,902)
Disposals - 44 - 22 - - 66
As at 31 December 2025 (123) (8,014) (212) (3,635) (190) - (12,174)
Net book value
As at 31 December 2025 609 6,902 42 981 49 591 9,174
As at 1 January 2025 642 7,101 62 694 - 944 9,443
----- End of picture text -----

UK Centre for Ecology & Hydrology articles of association provide legal authority for these payments to be made.

The total reimbursement of travelling and subsistence expenses incurred by 14 trustees (2024: 13 trustees) amounted to £12,567 (2024: £12,024).

6. Taxation

UK Centre for Ecology & Hydrology (UKCEH) is an exempt charity within the meaning of the Charities Act 2011 and as such is a charity within the meaning of section 506(1) of the Income and Corporation Taxes Act 1988 and is not subject to corporation tax in respect of its charitable activities.

The trading activities of the subsidiary company UK Centre for Ecology & Hydrology Ltd

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[ FINANCIAL STATEMENTS ]

RELEVANT NOTES

8. Investments

----- Start of picture text -----
Group Cash T Bills Unit Trusts Total
£000 £000 £000 £000
Valuation at 1 January 2025 2,155 2,650 1,580 6,385
Additions - - - -
Purchases (26,105) 25,548 557 -
- -
Disposals 23,933 (23,933)
Interest receivable 12 - - 12
Dividend receivable 45 - - 45
- -
Investment management fee (18) (18)
Realised gain/(loss) on maturity/sale - 155 - 155
Revaluation gain/(loss) - 13 85 98
Valuation at 31 December 2025 22 4,433 2,222 6,677
----- End of picture text -----

The investments have been revalued to reflect their market value at the year end.

----- Start of picture text -----
Company Investment Cash T Bills Unit Trusts Total
in subsidiary
company
£000 £000 £000 £000 £000
Valuation at 1 January 2025 50 2,155 2,650 1,580 6,435
Additions - - - - -
Purchases - (26,105) 25,548 557 -
- - -
Disposals 23,933 (23,933)
Interest receivable - 12 - - 12
Dividend receivable - 45 - - 45
- - -
Investment management fee (18) (18)
Realised gain/(loss) on maturity/ - - 155 - 155
sale
Revaluation gain/(loss) - - 13 85 98
Valuation at 31 December 2025 50 22 4,433 2,222 6,727
----- End of picture text -----

The investment in the subsidiary company is valued at cost. All other investments have been revalued to reflect their market value at year end.

UK Centre for Ecology & Hydrology Enterprise Limited (company no 12251749) is a wholly owned subsidiary whose registered office is Maclean Building, Crowmarsh Gifford, Wallingford, Oxfordshire, OX10 8BB. The results for the year ended 31 December 2025, which are included in the consolidated financial statements, are set out in the next table:

----- Start of picture text -----
2025 2024
£000 £000
Turnover 2,684 947
Expenditure (2,347) (644)
Profit for the year 337 303
Gift aid distribution (337) (303)
- -
Retained profit for the year
Net assets at 1 January 50 50
Net assets at 31 December 50 50
Being:
Current assets 1,022 1,473
Current liabilities (972) (1,423)
Net assets at 31 December 50 50
----- End of picture text -----

UK Centre for Ecology & Hydrology Enterprise Limited’s principal activity during the year was commercialisation of UK Centre for Ecology & Hydrology (UKCEH) intellectual property and the delivery of research contracts and commercial services in support of UKCEH’s ambition and charitable purpose.

UK Centre for Ecology & Hydrology International Limited (number 15670898) is a private company limited by guarantee without share capital, incorporated on 23 April 2024. The Charity is the only member. The registered office is Maclean Building, Crowmarsh Gifford, Wallingford, Oxfordshire, OX10 8BB. UK Centre for Ecology. The results for the year ended 31st December 2025, which are included in the consolidated financial statements, are set out in the next table:

----- Start of picture text -----
2025 2024
£000 £000
Turnover 224 -
Expenditure (224) -
- -
Profit for the year
Net assets at 1 January - -
Net assets at 31 December - -
Being:
Current assets 122 -
Current liabilities (122) -
Net assets at 31 December - -
----- End of picture text -----

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75

RELEVANT NOTES

[ FINANCIAL STATEMENTS ]

UK Centre for Ecology & Hydrology International Limited’s principal activity in the year was to help undertake international activities in support of the Charity’s goals.

9. Stocks

----- Start of picture text -----
2025 2025 2024 2024
£000 £000 £000 £000
Charity Group Charity Group
Work in progress - 14 - 41
----- End of picture text -----

Stocks relates to the AMI (Automated Monitoring of Insects) system and CEH DELTA (Denuder for Long-Term Atmospheric sampling) system manufactured under contract in the subsidiary entity UK Centre for Ecology & Hydrology Enterprise Ltd.

10. Debtors

----- Start of picture text -----
2025 2025 2024 2024
£000 £000 £000 £000
Charity Group Charity Group
Trade debtors 3,820 3,983 3,235 4,146
Amounts owed from subsidiary 937 - 473 -
undertaking
Prepayments and accrued 10,126 10,542 9,100 9,200
income
Other debtors 96 96 126 126
Total 14,979 14,621 12,934 13,472
----- End of picture text -----

12. Creditors

----- Start of picture text -----
2025 2025 2024 2024
£000 £000 £000 £000
Charity Group Charity Group
Trade creditors 870 872 1,134 1,135
Accruals and deferred Income 21,633 21,724 18,927 19,711
Payroll & expense 944 944 723 723
Taxation (VAT payable) 669 734 852 1,017
Other creditors - - - -
Amounts owed to subsidiary undertakings - - 17 -
Total 24,116 24,274 21,653 22,586
----- End of picture text -----

13. Deferred income

----- Start of picture text -----
2025 2025 2024 2024
£000 £000 £000 £000
Charity Group Charity Group
Opening balance at 1 January 14,439 15,161 14,331 14,331
Deferred income released from (13,099) (13,821) (8,477) (8,477)
previous year
Amounts deferred in year 14,965 14,977 8,585 9,307
Carried forward at 31 December 16,305 16,317 14,439 15,161
----- End of picture text -----

Deferred income relates to grant income, including research grants, which are received in advance of specific conditions being met. The income is shown as deferred until those conditions are fully satisfied.

11. Cash and cash equivalents

----- Start of picture text -----
2025 2025 2024 2024
£000 £000 £000 £000
Charity Group Charity Group
Cash at bank 11,691 12,243 7,641 8,045
Notice deposits 5,244 5,244 5,022 5,022
Total 16,935 17,487 12,663 13,067
----- End of picture text -----

14. Capital commitments

----- Start of picture text -----
|||| |---|---|---| |2025|2024| |Group and Charitable Company|£000|£000| |Total|Total| |Contracted capital commitments at the end of the financial year not|1,452|322| |otherwise included in these accounts|

----- End of picture text -----

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[ FINANCIAL STATEMENTS ]

15. Funds

Analysis of net assets between funds - current year

----- Start of picture text -----
UKCEH Group Unrestricted Restricted Unrestricted Restricted Total 2025
Funds Funds Designated Capital Funds
Capital Funds
£000 £000 £000 £000 £000
Fixed assets 6,677 - 813 8,361 15,851
Current assets 5,115 23,800 1,531 1,676 32,122
Current liabilities (474) (23,800) - - (24,274)
As at 31 December 2025 11,318 - 2,344 10,037 23,699
----- End of picture text -----

Analysis of net assets between funds - prior period

----- Start of picture text -----
UKCEH Group Unrestricted Restricted Unrestricted Restricted Total 2024
Funds Funds Designated Capital Funds
Capital Funds
£000 £000 £000 £000 £000
Fixed assets 6,385 - 1,141 8,302 15,828
Current assets 3,209 21,462 1,531 378 26,580
Current liabilities (1,124) (21,462) - - (22,586)
As at 31 December 2024 8,470 - 2,672 8,680 19,822
----- End of picture text -----

Analysis of funds movements - current year

----- Start of picture text -----
UKCEH Group Unrestricted Restricted Unrestricted Restricted Total 2025
Funds Funds Designated Capital Funds
Capital Funds
£000 £000 £000 £000 £000
As at 1 January 2025 8,470 - 2,672 8,680 19,822
Total income and 7,201 (3,472) (349) 497 3,877
expenditure for the year
Funds transfers (4,353) 3,472 21 860 -
As at 31 December 2025 11,318 - 2,344 10,037 23,699
----- End of picture text -----

RELEVANT NOTES

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the trustees following the transfer of assets from UKRI-NERC on independence and internal investment in capital.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. These are largely for environmental science research activities including funding from UKRI-NERC for our major national capability programmes. The largest of these are ‘NC-UK’, which includes delivery of integrated monitoring, modelling and data on the UK environment; and the Floods and Droughts Research Infrastructure (FDRI) programme. The costs of raising and administering such funds are charged against the specific fund. Restricted capital funds are funds provided from third parties for sole use of purchasing capital items. The expenditure is the subsequent depreciation of these assets. Many projects classified as restricted are not funded at full cost. UKCEH decides to undertake these projects because of their scientific importance and deliberately ‘co-fund’ them using unrestricted funding. The fund transfer between unrestricted funds and restricted funds represents the allocation of co-funding to support these projects. The fund transfer between restricted funds and restricted capital funds represents the transfer of the capital cost of assets purchased as part of a restricted project.

16. Pension schemes

UKCEH staff that joined before 1 December 2019 were employed by UKRI-NERC up to 30th November 2019, when they transferred employment to the Institute under TUPE.

Transferred employees retain their membership of the Research Council Pension Scheme (RCPS), which is administered by the Joint Superannuation Services (JSS).

The RCPS Pension Scheme is a multi-employer scheme. UKCEH accounts for the scheme as if it were a wholly defined contribution scheme. As a result, the amount charged to the income and expenditure account represents the contributions payable to the scheme in respect of the accounting period. Liabilities for the payment of future benefits are the responsibility of the RCPS and accordingly are not included in these Financial Statements. The employer contribution rate during the year was 26% (2024: 26%).

UKCEH employees that joined after 30th November 2019 are eligible to join a defined contribution scheme.

The total pension charge for the year was £5,041k (2024: £4,831k). £3,270k (2024: £3,330k) relates to the defined benefit scheme and £1,771k (2024: £1,501k) relates to the defined contribution scheme.

Analysis of funds movements - prior period

----- Start of picture text -----
UKCEH Group Unrestricted Restricted Unrestricted Restricted Total
Funds Funds Designated Capital Funds 2024
Capital Funds
£000 £000 £000 £000 £000
As at 1 January 2024 6,655 - 3,052 8,683 18,390
Total income and 6,885 (4,313) (417) (723) 1,432
expenditure for the year
Funds transfers (5,070) 4,313 37 720 -
As at 31 December 2024 8,470 - 2,672 8,680 19,822
----- End of picture text -----

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[ FINANCIAL STATEMENTS ]

17. Related party transactions

UK Centre for Ecology & Hydrology has two subsidiaries: UK Centre for Ecology & Hydrology Enterprise Limited (number 12251749) and UK Centre for Ecology & Hydrology International Limited (number 15670898).

UK Centre for Ecology & Hydrology Enterprise Limited is a wholly owned subsidiary with which the following transactions took place during the year:

----- Start of picture text -----
2025 2024
£000 £000
Paid to UKCEH:
Management charge to cover licensing staff costs and 209 242
intellectual property charge
Science staff cost for research project 1,245 73
Gift aid donation 337 303
Total 1,791 618
----- End of picture text -----

At 31 December 2025 UK Centre for Ecology & Hydrology Enterprise Limited owed UKCEH £831,559 (2024 £472,705) and UKCEH owed UK Centre for Ecology & Hydrology Limited £nil (2024 £16,836).

UK Centre for Ecology & Hydrology International Limited (number 15670898) is a private company limited by guarantee without share capital, incorporated on 23 April 2024 to help undertake international activities in support of the Charity’s goals with which the following transactions took place during the year:

----- Start of picture text -----
2025 2024
£000 £000
Paid to UKCEH:
Management charge to cover governance, executive and 46 -
support staff costs
Management charge to cover office and staff costs 143 -
Total 189 -
Paid from UKCEH
Grant to expand science and impact overseas 222 -
Total 222 -
----- End of picture text -----

At 31 December 2025 UK Centre for Ecology & Hydrology International Limited owed UKCEH £105,318 (2024 £nil)

Judith Batchelar was appointed as Chair of the Board of Trustees on 2 December 2024. She was also a Non Executive Director of the Environment Agency until 31 March 2025. In the period 1 January 2025 to 31 March 2025, the UK Centre for Ecology & Hydrology group received £2,061,515 from the Environment Agency in relation to scientific work/research provided, of which nil was outstanding for payment at 31 December 2025. In the period 2 December 2024 to 31 December 2024, the UK Centre for Ecology & Hydrology group received £355,126 from the Environment Agency in relation to scientific work/research provided. £197,908 was outstanding for payment at 31 December 2024.

RELEVANT NOTES

Ian Reid is a director of the subsidiary entity UK Centre for Ecology & Hydrology Enterprise Ltd and received £5,085 (2024: £5,000 ) for his services as director. He is also a director of the company Trace Element Associates Ltd which received payment of £nil (2024: £6,197) in relation to consultancy work performed for the Charity. Nil was outstanding for payment at 31 December 2025 (£nil at 31 December 2024).

Alison Thorpe is a director of the subsidiary entity UK Centre for Ecology & Hydrology Enterprise Ltd and received £1,735 (2024:£nil) for her services as director.

UKRI-NERC

UKCEH is strategically funded, by UKRI-NERC. UKRI-NERC supports UKCEH via strategic funding programmes, competitively won project grants and funding for infrastructure and technology investments. Funding for the year was £41,027k as shown in note 2 (2024: £37,497k).

18. Agency arrangements

The charity acts as an agent in performing repairs and maintenance on the buildings leased from UKRI-NERC.

----- Start of picture text -----
2025 2024
£000 £000
Amount included in deferred revenue at 1 January 684 1,000
Grants received from UKRI-NERC 596 1,026
Expenditure on repairs and maintenance (618) (1,342)
Amount included in deferred revenue at 31 December 662 684
----- End of picture text -----

19. Operating lease obligations

----- Start of picture text -----
2025 2024
£000 £000
Less than 1 year: 1,976 1,982
1-5 year 7,846 7,881
More than 5 years 25,737 27,690
Total 35,559 37,553
----- End of picture text -----

These amounts relate to rent on land and buildings.

----- Start of picture text -----
2025 2024
£000 £000
Lease expenditure in the year:
Hire of equipment 11 18
Rent of land and buildings 1,914 1,554
Total 1,925 1,572
----- End of picture text -----

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UNITED KINGDOM

BANGOR

UK Centre for Ecology & Hydrology Environment Centre Wales Deiniol Road Bangor Gwynedd LL57 2UW United Kingdom +44 (0)1248 374500

EDINBURGH

UK Centre for Ecology & Hydrology Bush Estate Penicuik Midlothian EH26 0QB United Kingdom +44 (0)131 4454343

LANCASTER

UK Centre for Ecology & Hydrology ancaster Environment Centre Library Avenue Bailrigg Lancaster LA1 4AP United Kingdom +44 (0)1524 595800

WALLINGFORD

UK Centre for Ecology & Hydrology Maclean Building Benson Lane Crowmarsh Gifford Wallingford Oxfordshire OX10 8BB United Kingdom +44 (0)1491 838800

WEST AFRICA

ACCRA

UK Centre for Ecology & Hydrology International Limited CSIR Office Complex Council Close Agostinho Neto Road Airport Residential Area Accra Ghana +233 30 398 0192

enquiries@ceh.ac.uk

www.ceh.ac.uk

@UK_CEH