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2022-12-31-accounts

Sustainable Hospitality Alliance (A company limited by guarantee)

Report and Financial Statements Year ended 31 December 2022

Charity number 1188731 Company number 12373950

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Report of the trustees for the year ended 31 December 2022

The trustees are pleased to present their annual directors’ report together with the consolidated financial statements of the charity for the period ended 31 December 2022 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and the charities Statement of Recommended Practice (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland; FRS 102, 2nd Edition) effective 1 January 2019.

2 Independent Auditors Report to the Trustees of Sustainable Hospitality Alliance

Report of the trustees for the year ended 31 December 2022 Reference and administrative details

Directors and trustees

The directors of the charitable company (the charity) are its trustees for the purpose of charity law. The trustees and officers serving during the period and since the period end were as follows:

Board of Trustees:

Wolfgang M. Neumann, Chair Tim Davis, Vice-Chair (appointed 31 March 2022) Catherine Hammond, Treasurer Yasmin Diamond Stephen Farrant Melissa Froehlich Flood Pia Heidenmark Cook (resigned 15 December 2022) Daniella Foster (Appointed 08 March 2023)

Members of Board Sub-committees serving during the period and since the period end were as follows:

Finance Risk and Audit Committee:

Catherine Hammond, Treasurer Wolfgang M. Neumann, Chair Tim Davis, Vice-Chair Lesley Wolfenden Mike Reilly

Key management personnel

Senior Management Team:

Glenn Mandziuk CEO (appointed 02 May 2022)

Patrick O’Meara (Interim CEO August 2021 to May 2022, Director of Business Development)

Simon Le Gouais (Director of Finance and Resources & Company Secretary)

Reference and administrative details

Registered charity name Sustainable Hospitality Alliance Charity registration number 1188731 Company registration number 12373950 Registered address 2 Putney Hill, London, SW15 6AB Auditor Haysmacintyre LLP Bankers HSBC UK Solicitors Russell-Cooke LLP

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Chair’s report

This has been a particularly significant year for Sustainable Hospitality Alliance. We celebrated 30 years since we were founded back in 1992 by the CEOs from 11 of the world’s leading hotel companies. Motivated by the UN Earth Summit in Rio de Janeiro and inspired by the then Prince of Wales, King Charles III, the industry came together and, recognising the urgent need for action, the International Hotel’s Environment Initiative (IHEI) was born.

Thirty years on, I am immensely proud that not only is the work of the IHEI still going strong, now as the Sustainable Hospitality Alliance, but our organisation is bigger and more impactful than ever before, addressing a wider range of environmental and social challenges, and leading the industry towards our global ambition of Net Positive Hospitality. We are also highly pleased to have renewed our connection with our Royal Patron this year through our participation in the Sustainable Markets Initiative.

But it is notable that the need for our organisation is greater than ever before. The failure to mitigate climate change remains the most severe global risk according to the World Economic Forum[1] , and almost three quarters of the global population live in countries where inequality has grown[2] . Prior to the pandemic, the travel and tourism sector accounted for over 10% of global GDP and 10% of global jobs[3] , and the hospitality industry recognises that it has an influential role to play in contributing towards a better and more sustainable future for all.

To enable the Alliance to take on the scale of the challenges and opportunities that lie before us, the trustees were delighted to appoint Glenn Mandziuk as our new Chief Executive Officer, who took up his appointment in June 2022. We were unanimous in our agreement that Glenn has the vision, drive and experience to lead the Alliance into its next phase of growth and influence, and this has been evident from the charity’s achievements this year and ambitions for the future.

This year has seen the charity’s profile raise considerably. The team and trustees have featured on the global stage at sustainability conferences including UN Climate Conference (COP27), UN Biodiversity Conference (COP15) and UN Global Compact, in addition to the largest tourism trade events including ITB Berlin and World Travel Market. We also hosted our first high-level industry summit, welcoming senior leaders from across our membership and strategic partners to convene and share learnings on the pressing sustainability issues of today.

We are also seeing a notable increase in recognition from the hospitality industry for the need to incorporate sustainability principles into their operations and developments. The business case for sustainability is becoming ever stronger – being influenced by the changing demands of our guests, clients, partners, investors, regulators, media and even staff. While meanwhile the very tangible impacts of things like climate change, unethical employment, non-inclusive practices and negative effects on our natural world are very hard to overlook.

These increases in awareness and profile have also led to a significant growth in interest in becoming part of the Alliance. Our membership has more than doubled in the past year across our members and affiliate members, and we have formed new partnerships with over 30 organisations to expand our reach and specialist expertise.

1 World Economic Forum (2023), Global Risks Report 2023

2 United Nations citing World Inequality Database

3 WTTC (2022), Economic Impact Report 2022

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All these developments leave me with a huge amount of confidence for the future of the Alliance, and our collective ability to make an even greater impact in 2023 and beyond. We thank all our members, partners and supporters including philanthropic organisations, governments and the private sector. Through the active engagement and expertise of our staff, members and partners, we will continue to drive collaborative action, make our vision of Net Positive Hospitality a reality and become a prosperous and responsible sector that gives back more than it takes.

Wolfgang M. Neumann Chair, Sustainable Hospitality Alliance

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Objectives and activities

Our vision and mission

Our vision is responsible hospitality for a better world.

Our mission is to drive collaborative action to enable the hospitality industry to have a lasting positive impact on our planet and its people.

We do this by bringing together engaged hospitality companies and strategic partners and using the collective power of the industry to deliver impact locally and on a global scale.

Summary of the purposes of the charity

The Charity’s objects are, for the public benefit, anywhere in the world, to:

The trustees confirm that they have referred to the information contained in the Charity Commission’s general guidance on public benefit when reviewing the Sustainable Hospitality Alliance’s aims and objectives, and in planning activities and setting strategy for the year ahead.

Summary of main activities

To achieve our objectives, we work with our members, partners and other stakeholders, to assess the key global challenges affecting our planet and its people. We then prioritise our activities and programmes to identify where we can collectively deliver the most positive impact towards our mission.

Aligned with the United Nations Sustainable Development Goals (SDGs), we commit to drive continued action in the following areas:

People – Advancing fair and inclusive opportunities for people and communities now and for future generations.

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Planet – Safeguarding our natural environment for a thriving and diverse world for all.

Policy on social investment and grant making

The charity works in partnership with its members and with organisations engaged in programmes in alignment with the Alliance’s objectives to deliver integrated social investment programmes particularly where members and partners can add value and reach to the Alliance’s objectives and activities as described above.

The trustees are mindful of their duties with respect to ensuring the charity is carrying out its purposes for the public benefit, that protecting people and safeguarding responsibilities are a governance priority and a fundamental part of its operations, and that where operating through partners, and especially internationally, trustees have legal duties and responsibilities in carrying out due diligence checks and monitoring in relation to the charity’s involvement with external bodies and individuals and verifying the end use of charitable funds.

Thus where working with partners, the charity:

During the year the charity funded work with the following partners:

All were programmes training young vulnerable people for entry to the hotel industry.

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Contribution made by members and volunteers

The members of the Sustainable Hospitality Alliance are the corporate organisations supporting the Alliance through annual financial donations and involvement in our work. They do not have a formal governance role.

The donor members make up approximately 40% of the global hotel industry by rooms and currently include 24 world-leading hotel companies with a combined reach of over 50,000 properties and 7 million rooms, including large and small hotel companies with both international and regional portfolios.

The Alliance launched its affiliate member programme in December 2021. The purpose of affiliate membership is to invite influential players across the value chain to participate in dialogue with each other and with our hospitality members, to share expertise and learning, to influence our pathway to net positive and to challenge, enable and inspire the movement through collaboration. Affiliate members have an advisory rather than a governance role. There are currently 14 affiliate members in place.

As our members differ in the size and scale of their operations, ownership structures, geographic footprint and the stage of organisational maturity on their sustainability journey, this gives us unique insights into the industry, and awareness of what is needed to drive progress on sustainability across the industry. With their technical know-how and expertise, we design and pilot solutions, create tools and resources, and showcase best practices to help any hotel, anywhere in the world, get started and progress on its sustainability agenda.

Our members also, from time to time, offer us additional support, in terms of secondments and resources, to help us get skills, resources and expertise in support of our work, either operationally or programmatically, and operate in a cost-effective way.

Throughout 2022 we were grateful for the support of our members and the industry as it responded to the great difficulties caused by the conflict in Ukraine and Covid. We were grateful to Marriott for its partnership in welcoming us to their London office, enabling our team to convene, work closely with colleagues and provide a welcoming space for our visiting members and partners.

Partnerships programme

This year saw the launch of the Alliances partnership programme, where we seek to officially partner with philanthropic organisations, non-profits, governments and the private sector who want to work with the hospitality industry to drive action on shared sustainability challenges.

This partnerships approach will form a central pillar of our strategy for 2023 to 2028. This approach has seen immediate impact with over 30 official partners announced. These partners are categorised as strategic, delivery, knowledge, supplier, funding or implementing partners.

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Key achievements and performance: People

Employability:

Supporting local vulnerable and disadvantaged populations is an area the hospitality sector has the potential to impact and influence at scale, while developing their employment and talent pipelines.

Through our employability programme, we focus on supporting young people who have faced a range of barriers (including people from low-income families, those living without parental care, survivors of human trafficking, refugees, and people with disabilities). Our programme aims to support them in developing the skills and experience to gain and sustain employment in hospitality and across many industries.

Our flexible programme delivery model consists of 100 hours of classroom training delivered through our local non-profit implementing partners. This is followed by two to four months of practical training with local employers. The trainees are then supported to find work with local businesses.

Projects:

Employability training programmes continued in India, Sri Lanka and Nigeria, where we worked with local hotels and implementing partners to support young people, people with disabilities and survivors of trafficking. We also supported local NGOs in Zambia and Lebanon to use our Core Employability Skills Curriculum and engage with local hotels to deliver the training programme.

In 2022:

Through the projects, key learning across 2022 included potential for positive impact beyond immediate outcomes. During an internal evaluation, which included interviews with programme graduates and local stakeholders, we recorded substantial positive impact on vulnerable groups’ emotional, social, and economic capital. Findings included that average income increased by 80% and 72% recorded a positive change in relationships.

"After taking part in the training programme, I noticed a drastic development in myself. I learned that I have a ‘never give up’ attitude and am very capable of tending to guests needs, even during the busiest times."

“I learned that I have the ability to learn fast on the job, and good time management. The programme has helped me to know that disability is not a limitation. I am going to seize this golden opportunity to build my career and also expand my knowledge in this field.”

“The training program has helped me to be a courageous and independent individual. I have a strong feeling that the things that I have learned in this training will help me to work towards building my career. I wish to work and make it to a higher position in a top-tiered hotel.”

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Refugees

In spring 2022 the Alliance came together with its members to develop a collaborative sector response for Ukrainian refugees. Across Europe, hotels had been providing accommodation to refugees during their journeys, ensuring that their colleagues were financially supported where operations had ceased, provided donations to charities to support their efforts, and finding employment for existing staff who needed to relocate and displaced people needing new jobs.

Representatives from Accor, Four Seasons, Hilton, IHG Hotels and Resorts, Marriott International and Radisson Hotel Group were therefore able to work together to share on-the-ground experiences and best practices to support the development of a Refugee Response Hub. The hub features guidance for hotels to support the recruitment of refugees and internally displaced people, as well as guidance for hotels on providing accommodation and a welcoming experience for people and families in transit. It also provides access to training resources to enable refugees to re-skill themselves for jobs in the industry.

Subsequently, the Alliance worked in collaboration with Harri to develop a launch a united platform to provide opportunities for refugees. Initially running as a pilot for Ukrainian refugees looking for hospitality work throughout Europe, the platform provides a centralised space for hotel brands to post job opportunities, and a simple online system for refugees to apply and interview for roles while in transit or looking to leave Ukraine.

The website, which is available in both Ukrainian and English, includes jobs postings from leading brands including Radisson Hotels Group, Accor and IHG Hotels & Resorts. The ambition is that this platform can be rolled out globally, both in response to a disaster and as an ongoing support mechanism for the almost 90 million people who are currently forcibly displaced worldwide. By December 2022 there were: 67 jobs posted with 155 applications.

In addition to bringing together the hotel industry, the Sustainable Hospitality Alliance worked with the International Rescue Committee (IRC) to make the employment opportunities available to refugees, along with the Tent Partnership for Refugees (Tent) – a network of major companies committed to economically integrating refugees in their new communities.

Human Rights

The services industry (which includes hospitality and transportation) accounts for the largest share of forced labour exploitation impacting almost 5.5 million people globally.[4]

In 2022, the Sustainable Hospitality Alliance continued our three-year collaboration with the International Organization for Migration (IOM) on the project “Promoting Ethical Recruitment in the Hotel and Tourism Industry” to develop relevant training resources for the hospitality industry. As part of the project, IOM and the Alliance developed training for key internal stakeholders in HR, Operations and Finance/Procurement at country level, hotel level, and corporate level with the aims to establish ethical recruitment standards in cross-border labour migration and make international recruitment fair for everyone involved. Training modules included content on:

4 ILO (2023), Global Estimates of Modern Slavery

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Member hotel companies had the option to participate in pilot training sessions featuring corporate and regional hotel teams, including HR, Procurement, and Legal team members, and provided feedback and input to help the Alliance to enhance the training resource development.

Over 300 participants across four brands representing over 22,000 hotels took part in the Ethical Recruitment training programme at a corporate level. The programme has helped to promote consistency and coherence in the diverse ownership structures within the different geographies when approaching ethical recruitment and human rights. The programme has also made it easier for teams to work towards common goals such as the Alliance’s Principles on Forced Labour and these standards can be effectively implemented across the emerging regions of the world.

Over the three years of the project, participating members have implemented the following:

The next phase of the project is to implement learnings from pilots and to make the trainings available to the industry at large.

Key achievements and performance: Planet

Striving for a Net Positive industry

The need for increased action on environmental impact – from all sectors – is now urgent and recognised by governments, business and the public. We have therefore set a global ambition for the industry of Net Positive Hospitality – giving back to our communities and destinations more than we take.

To support every hotel to work towards this ambition – no matter their starting point – we developed the Pathway to Net Positive Hospitality for the Planet. This is a practical strategic action framework with increasing stages of environmental maturity, which supports the industry to focus on the most meaningful environmental actions. The aim is also to encourage a more joined up approach and shared responsibility towards sustainability, with practical guidance for asset owners, as well as brands and operators. The Pathway covers key environmental issues including climate action, water stewardship, waste and circular economy, and biodiversity protection and regeneration.

We launched the first two stages of the Pathway in March 2022 at ITB Berlin – the leading global trade fair – supported by the CEOs of IHG Hotels & Resorts, Marriott International, Radisson Hotel Group, Hilton, Accor, Wyndham Hotels & Resorts, Deutsche Hospitality, Kerten Hospitality and

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Soneva. We are continuing development on the Pathway to explore the more complex challenges and incorporate social and governance elements into the journey.

Climate action

With the importance of sustainability increasing in the eyes of customers – both public and corporate travellers – in addition to other key stakeholders and business partners such as hotel investors, regulators and even staff, there is a huge need for consistent and transparent systems for hotels to monitor and report on their progress.

In 2012, we created the Hotel Carbon Measurement Initiative (HCMI), a free methodology and tool to enable any hotel to understand their carbon footprint. This year, we launched an updated version of the methodology to further align with GHG Protocol and encourage reporting of renewable energy purchases.

This tool is now being used by over 30,000 hotels including those of Hyatt, Marriott International, Radisson Hotel Group and Scandic, and business travel platforms for corporate travellers. In addition, HCMI is supported by leading industry organisations, including World Travel & Tourism Council (WTTC), American Hotel & Lodging Association (AHLA), Global Sustainable Tourism Council (GSTC), Global Business Travel Association (GBTA) and the Cornell Hotel Sustainability Benchmarking index (CHSB). The methodology has also been recognised at the governmental level, with data based on it used in the UK government’s greenhouse gas reporting calculator. It also supports users of the UNWTO’s Glasgow Declaration for Climate Action in Tourism.

We are calling on the hospitality industry, including corporate clients and booking platforms, to use common measurement metrics to ensure a transparent and globally comparable approach to sustainability reporting.

Responsible resourcing

The Sustainable Hospitality Alliance is a proud supporter of the UN Global Tourism Plastics Initiative (GTPI) which unites the tourism sector behind a common vision to address the root causes of plastic pollution.

The Global Tourism Plastics Initiative requires tourism organisations to make a set of concrete and actionable commitments by 2025 which include eliminating problematic or unnecessary plastic packaging and items and taking action to move from single-use to reuse models or reusable alternatives.

The Alliance collaborated with United Nations World Travel Organisation (UNWTO) and United Nations Environment Programme (UNEP) to develop a resource designed to help hotels understand the use of plastic in their operations. The Plastics Measurement Methodology for Accommodation Providers also helps hotels to identify priority items and focus their plastics reduction efforts where they can have the most impact. Additionally, the tool supports signatories of the Global Tourism Plastics Initiative (GTPI) to report on their progress towards their commitments.

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To support our work on responsible waste management, we also partnered with WWF to produce educational content for the industry on the importance of sustainable food and actions hotels can take to reduce their impacts. This covered topics including the carbon impacts of meal choices and food waste as well as how sustainable food can have an impact on biodiversity.

Biodiversity

More than 80% of the value of Travel & Tourism goods and services is highly dependent on nature – from the demand for raw materials to the popularity of nature-based tourism.[5]

During the United Nations Biodiversity Conference COP15 we announced a new collaboration with the World Travel & Tourism Council (WTTC) and United Nations World Tourism Organisation (UNWTO) which will bring together the public and private sectors in a shared vision to halt and reverse biodiversity loss by 2030. Signatories to the vision have committed to adopt a nature positive approach to tourism through integrating biodiversity safeguards by reducing carbon emissions, the impact of pollution, the unsustainable use of resources, and by protecting and restoring nature and its wildlife. Over 150 organisations have signed up to the vision so far including international hotel groups, tour operators, travel agents, destinations, and international wildlife charities.

Raising awareness of the industry’s work on global stages

Convening the industry

In October 2023, we hosted our first high-level industry summit on Net Positive: Hospitality with purpose, for people, planet and prosperity. This was an exclusive event attended by senior leadership from the Alliance’s Members, comprising world-leading hotel brands, operators, owners, investors and other partners, alongside our strategic partners and collaborators.

The Summit featured a range of expert panellists, from within and outside the industry, who examined the current sustainability challenges and driving factors, and shared best practice examples and expertise of current actions and innovations. This included Dr. Dirk Glaesser, Director, Sustainable Development of Tourism at UN World Tourism Organisation, and Dame Julia Cleverdon DCVO, CBE, Vice President of Business in the Community.

The event also featured high-level discussions that will feed into the development of our new fiveyear strategy, enabling every part of the industry to contribute towards achieving the global targets set by the UN Sustainable Development Goals.

The Sustainable Hospitality Alliance was also proud to announce a host of new members and a wide range of collaborative strategic partnerships, designed to reach the wider hospitality industry and inspire an even more joined up approach to sustainability. Our new strategic partners include the World Travel and Tourism Council (WTTC), the United Nations World Tourism Organization (UNWTO), American Hotel and Lodging Association (AHLA), Global Business Travel Association

5 WTTC (2022), Nature Positive Travel and Tourism

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(GBTA), Global Sustainable Tourism Council (GSTC), International Organization for Migration (IOM) and the UK Green Buildings Council (UKGBC).

United Nations Climate Conference

A year ago, at the United Nations Climate Conference COP26, the Sustainable Hospitality Alliance became one of the founding signatories of the Glasgow Declaration on Climate Action in Tourism, urging the acceleration of climate action by securing commitments to reduce emissions in the sector by at least 50% over the next decade and achieve Net Zero as soon as possible before 2050.

One year on, the Sustainable Hospitality Alliance, represented by our Chief Executive Officer Glenn Mandziuk, joined the UN World Tourism Organization (UNWTO) at COP27 to present on policies and corporate strategies for scaling up climate action in tourism. We also spoke about climate and water action in destinations at the UNWTO Meeting of the Committee on Tourism Sustainability highlighting some of our regional programmes on water risk and supply chains.

Launching the Hospitality and Tourism Task Force

The Sustainable Hospitality Alliance was selected to co-chair the Sustainable Markets Initiative (SMI) Hospitality and Tourism Task Force. Launched at the United Nations Biodiversity Conference (COP15) in Montreal, the Task Force will comprise of CEOs from across the hospitality and tourism industry, under the leadership of the Sustainable Hospitality Alliance and the Considerate Group. It will also combine the expertise of hospitality associations, tourism partners and inter-governmental development organisations.

The Sustainable Markets Initiative was launched by the former Prince of Wales at the World Economic Forum 2020 Annual Meeting in Davos. The Task Force is aligned with the Terra Carta which provides a roadmap for the private sector to accelerate the transition to a sustainable future by harnessing the power of nature combined with the transformative power, innovation and resources of the private sector.

Task Force, which joins other significant sectors as part of the SMI including financial services, health systems and energy, will focus on creating new business models, reducing emissions, and investing in people to support a sustainable hospitality and tourism sector and communities. The Alliance will now focus on securing commitments from CEOs from across the leading hotel companies, with the full list of members confirmed in early 2023.

Guiding wider industry thinking

As the experts in sustainable hospitality, the Alliance continues to sit on various industry committees including:

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Plans for future periods

We recognise the need to support responsible recovery post-pandemic, raise aspirations, and enable the hotel industry to play the greatest role it can in leveraging its global might and local presence to support and protect the planet and its people.

The Alliance is moving towards a more holistic view of sustainability which encompasses people, planet, place and prosperity to ensure our ecosystems, communities and destinations all thrive.

We will be expanding our Pathway to Net Positive Hospitality to incorporate social and governance actions to augment the environmental framework launched early 2022. This will include strategies to better engage communities and develop destination-specific approaches to respond to local needs and situations.

This will be released in March 2023 with further work to follow on supporting hotels to benchmark their progress on the Pathway and align their external reporting with Net Positive ambitions.

Additionally, we have received funding from GIZ to carry out a project in several countries in Africa to map out the current scale of local sourcing by the hospitality industry, understand the barriers and determine what support the hotels and local suppliers need to increase the occurrence of local sourcing. This will initially be a small-scale scoping exercise but there is potential for further funding to then create the initiatives and tools which are highlighted as needs for hotels and suppliers.

People

Reporting impact data on people programmes remains a challenge as there are no standardised KPIs available. Therefore, as part of the Pathway development, the Alliance will be working on developing key metrics, as well as detailed guidance, tools and resources to support the sector to plan, implement and measure sustainable net positive social initiatives.

To increase accessibility for workers and customers we will be working with partner organisations to develop guidance materials and tools for hotels to become disability inclusive. Collating learning from employability projects we will be releasing a set of guidance materials for hotels and local partners to encourage and support a greater portion of the industry to work with and include disadvantaged groups. To ensure adaptation of stronger human rights awareness and practices at destination level, in 2023 we will start adapting Human Rights trainings and tools for hotel teams.

Planet :

To reflect changing realities at the destination level and help hotels account for the local context in their water stewardship activities, we are updating the Destination Water Risk Index which we first created in 2018. The Alliance, Greenview and STR collaborated to create v2.0 of the DWRI, expanding the number of destinations included from 68 to 379 (across 63 countries) and incorporating additional risk metrices. DWRI v2.0 will be released in March 2023 for World Water Day.

Throughout 2023, we will be reviewing HCMI with a view to expanding the methodology to cover the remainder of Scope 3 emissions and creating an online tool to make it more user-friendly and easily accessible to the wider industry.

To raise awareness within the industry about different options available to them to help fund their climate efforts we are co-creating a webinar series with IFC. This series will cover different financial solutions available to the hotel industry as well as how to assess, improve, and disclose the resilience of a hotel.

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Financial review

The Charity was registered on 24 March 2020 and launched independent operations on 1 October 2020, having separated as a programme from Business in the Community (BITC), a registered charity (297716). 2022 saw our second full year of independence, with income and expenditure building on the secure foundations achieved in the previous the previous financial year.

During 2022, the Sustainable Hospitality Alliance recorded a net surplus on operations during the period of £49,650, reached after Income of £1,234,437 and Expenditure of £1,184,787

Our income came from Charitable Grants of £643,294, where support is received under specific agreements supporting restricted activities aligned to our objectives from a range of Institutional Donors, Foundations and Trusts and Corporate Bodies, as listed in the Notes to the Accounts3 Membership contributions of £554,558 related to the contributions from our corporate members, and Donations of £46,585, including in-kind donations of £42,381, by members for use of office space and Greenview Consulting for pro-bono work on our Hotel Carbon Measurement Initiative.

Expenditure comprises Support Costs (including the value of In-Kind donations), Staff Costs, and Grants to Partners and is analysed in the accounts to Fundraising and publicity, and Expenditure on charitable activities, split between the major activities of the Alliance, as set out in the Notes to the Accounts, the highest expenditure being on Human Rights and Youth Employment work.

At 31 December 2022, both Net Assets and Funds stood at £717,111. Net Assets included Cash held of £1,364,445, with Accruals and deferred income standing at £899,635, the majority of which is pre-paid membership or Deferred income and largely explains the excess of Cash over Net Assets.

Funds were made up of Restricted Funds of £8,612 and Unrestricted Funds of £708,499.

Structure, Governance and Management

Governing document

The Sustainable Hospitality Alliance is a company limited by guarantee governed by its Memorandum and Articles of Association dated 16 December 2019. It is registered as a charity with the Charity Commission.

Appointment of trustees

As set out in the Articles of Association the business of the Charity is governed by the Board of Trustees, the first members of which were the four subscribers to the registration of the Alliance and a Company. The number of Trustees must be a minimum of three and no more than nine. Trustees may be appointed by a resolution of the Board and serve for a term of up to three years and can be eligible for re-appointment for a further period of three years.

Trustee induction and training

New trustees undergo orientation to brief them on: their legal obligations under charity and company law, the Charity Commission guidance on public benefit, and inform them of the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the charity. During orientation they meet key employees and other trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

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Organisation

The Board of Trustees, which can have up to nine members, administers the charity. The board normally meets quarterly and has one sub-committee, the Finance Risk and Audit Committee, which also meets quarterly in advance of Board meetings or as often as necessary. A Chief Executive Officer is appointed by the trustees to manage the day-to-day operations of the charity. To facilitate effective operations, the Chief Executive Officer has delegated authority, within terms of delegation approved by the trustees, for operational matters including finance and employment.

Glenn Mandziuk was appointed as permanent CEO from the interim CEO Patrick O’Meara in May 2022 . The trustees would like to record their thanks to Patrick for his work in supporting Glenn and the Alliance so effectively into 2023 and are grateful for his highly valued work as Director of business Development.

Related parties and co-operation with other organisations

None of our trustees receive remuneration or other benefit from their work with the charity other than reimbursement of expenses.

Trustees must declare any direct or indirect interest that conflicts, or may conflict with the interests of the Charity, because the Trustee or a Connected Person may receive a benefit from the Charity or has some separate interest or duty in a matter to be decided, or in relation to information which is confidential to the Charity. Declarations and updates are requested at each team meeting. Similarly all payments are reviewed monthly for related party transactions.

Pay policy for senior staff

The pay of the senior staff has been determined by Management together with the Finance Risk and Audit Committee on a review of pay levels in other similar organisations and in accordance with our Performance Related pay Policy..

Principal risks and uncertainties

The trustees have a risk management strategy which comprises:

The trustees have assessed the risks that the Alliance is exposed to and have identified that the principal risk categories include:

Relevance :

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Operating Model

Financial & Human Resource

Governance & Compliance

Intellectual Property

Reserves policy and going concern

The Trustees, having considered the risks outlined above have determined a desired range of reserve levels to be held in light of these risks to lie between £408,000 and £695,000.

The reserves to be deployed should be unencumbered by prior obligation and held as liquid assets.

Currently the organisation holds £708,572 of Unrestricted Reserves, of which £699,930 are unencumbered and free to be deployed to use. This level is within the required reserves range.

The trustees judged that a higher level of reserves was prudent given the uncertainty regarding the general economic outlook. The budget for 2023 therefore plans to keep reserves towards the higher value of the recommended reserves requirement.

The trustees review the financial circumstances of the Alliance as part of the quarterly FRAC review and consider that adequate resources continue to be available to fund the activities of the trust and group for the foreseeable future. The trustees are of the view that the company is a going concern.

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Our approach to fundraising activities

The charity raises funds from member contributions, from institutional donors including Trusts and Foundations, International Development Organisations and Government Institutions in the UK and internationally. We have developed an Ethical Fundraising Policy to guide decisions on solicitation and acceptance of funds.

The charity does not currently actively fundraise from the public or run legacy campaigns or undertake similar fundraising activities. The trustees are though pleased to receive unsolicited gifts and legacies from patrons and supporters who generously support our work.

No complaints have been received from funders or beneficiaries in respect of fundraising activities undertaken by the alliance.

Trustees’ responsibilities in relation to the financial statements

The charity trustees (who are also the directors of the Sustainable Hospitality Alliance for the purposes of company law) are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

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

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

Report of the trustees for the year ended 31 December 2022

19

Statement as to disclosure to our auditors

In accordance with company law, the Company’s Directors confirm that:

In preparing the Report of the Trustees the trustees have taken advantage of the exemptions available to small companies.

This report was approved by the board of trustees and signed on their behalf by Wolfgang M. Neumann, Chair:

Date: 28 June 2023

Report of the trustees for the year ended 31 December 2022

20

Independent Auditors report to the Trustees of Sustainable Hospitality Alliance

Opinion

We have audited the financial statements of Sustainable Hospitality Alliance for the period ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s '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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. 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.

In connection with our audit of the financial statements, 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

21 Independent Auditors Report to the Trustees of Sustainable Hospitality Alliance

misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report).

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

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on pages 15 and 16, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

Independent Auditors Report to the Trustees of Sustainable Hospitality Alliance

22

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

Based on our understanding of the charitable company and the sector in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to regulatory requirements of the Charity Commission, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011, Companies Act 2006 and payroll taxes.

We evaluated management’s opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in certain accounting estimates and judgements such as the income recognition policy applied to grant income. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

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

Vikram Sandhu (Director) For and on behalf of Haysmacintyre LLP, Statutory Auditors Date: 10 July 2023

10 Queen Street Place London EC4R 1AG

Independent Auditors Report to the Trustees of Sustainable Hospitality Alliance

23

SUSTAINABLE HOSPITALITY ALLIANCE STATEMENT OF FINANCIAL ACTIVITIES (including Income and Expenditure account)

FOR THE YEAR ENDED 31 DECEMBER 2022

Note
INCOME FROM:
Donations and legacies
2A
Alliance Membership contributions
Charitable activities
Grants
3
TOTAL INCOME
EXPENDITURE ON:
Raising funds
Fundraising and publicity
Charitable activities
Human Rights
Youth Employment
Climate Action
Water Stewardship
Cross organisational activities
TOTAL EXPENDITURE
5
Net gains/(losses) on investments
NET INCOME BEFORE TRANSFER
FROM BUSINESS IN THE COMMUNITY
Net Transfer from Business In the Community
2B
NET INCOME
4
Transfer between funds
NET MOVEMENT IN FUNDS
Reconciliation of funds:
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Funds
£
46,585
544,558
-
591,144
110,458
-
6,231
178,506
17,988
196,828
510,010
-
81,133
-
81,133
-
81,133
627,365
708,499		 Restricted
Funds
£
-
-
643,294
643,294
-
249,254
390,173
30,922
-
4,427
674,777
-
(31,483)
-
(31,483)
-
(31,483)
40,095
8,612		 Total
Funds
Year ended
31-Dec-22
£
46,585
544,558
643,291
1,234,437
110,458
249,254
396,404
209,428
17,988
201,255
1,184,787
-
49,650
-
49,650
-
49,650
667,461
717,111

All transactions are derived from activities that commenced during the period. The split between unrestricted and restricted donations and legacies is shown in note 3. There was no other restricted income or expenditure for the year ended 31 December 2021. All recognised gains and losses are included in the Statement of Financial Activities.

24

SUSTAINABLE HOSPITALITY ALLIANCE STATEMENT OF FINANCIAL ACTIVITIES (including Income and Expenditure account)

FOR THE PERIOD ENDED 31 DECEMBER 2021

Note
INCOME FROM:
Donations and legacies
2A
Alliance Membership contributions
Charitable activities
Grants
3
TOTAL INCOME
EXPENDITURE ON:
Raising funds
Fundraising and publicity
Charitable activities
Human Rights
Youth Employment
Climate Action
Water Stewardship
Cross organisational activities
TOTAL EXPENDITURE
5
Net gains/(losses) on investments
NET INCOME BEFORE TRANSFER
FROM BUSINESS IN THE COMMUNITY
Net Transfer from Business In the Community
2B
NET INCOME
4
Transfer between funds
NET MOVEMENT IN FUNDS
Reconciliation of funds:
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Funds
£
62,001
306,209
5,000
373,210
83,710
4,530
4,588
5,923
5,923
74,352
179,027
-
194,182
-
194,182
-
194,182
433,183
627,365		 Restricted
Funds
£
-
639,742
639,742
-
236,652
465,575
28,499
-
-
730,726
-
(90,985)
-
(90,985)
-
(90,985)
131,080
40,095		 Total
Funds
Year
ended
31-Dec-
21
£
62,001
306,209
644,742
1,012,951
83,710
241,183
470,164
34,422
5,923
74,352
909,754
-
103,198
-
103,198
-
103,198
564,263
_667,461 _

Notes on the accounts year ended 31 December 2022

25

Sustainable Hospitality Alliance Company Number 12373950

BALANCE SHEET

AS AT 31 DECEMBER 2022

Note
FIXED ASSETS
Tangible assets
8
Investments
9
CURRENT ASSETS
Debtors
11
Cash at bank and in hand
CREDITORS: amounts falling
12
due within one year
NET CURRENT ASSETS
TOTAL ASSETS LESS
CURRENT
LIABILITIES
NET ASSETS
FUNDS
14
Restricted funds
Unrestricted funds:
Designated funds
General funds		 2022
£
£
8,642
-
8,642
284,024
1,364,445
1,648,469
(940,000)
708,469
717,111
717,111
8,612
(73)
708,572
708,499
717,111		 2021
£
£
6,923
-
6,923
155,495
1.170.431
1,328,926
(665,388)
660,538
667,461
664,461
40,095
36,639
590,726
627,365
_667,461 _		 2021
£
£
6,923
-
6,923
155,495
1.170.431
1,328,926
(665,388)
660,538
667,461
664,461
40,095
36,639
590,726
627,365
_667,461 _
6,923
660,538
667,461
_664,461 _
40,095
36,639
590,726
627,365
_667,461 _

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the Trustees on 28 June 2023 and were signed below on its behalf by:

Wolfgang M. Neumann. Chair.

26

Sustainable Hospitality Alliance STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2022

Note
Cash Flow from operating activities
21
Cash flows from investing activities
Income from listed investments
Other interest receivable
Payments to acquire tangible fixed assets
Disposal of tangible fixed assets
Purchase of investments
Sale of investments
Cash used in investing activities
Increase/(Decrease) in cash and cash
equivalents in the year
Cash and cash equivalents at the beginning of the
year
Change due to exchange rate movements
Total cash and cash equivalents at the end of the
Cash and cash equivalents
Cash at bank and in hand
Cash held by investment manager
Cash at bank and in hand at the end of
the reporting period		 2022
£
£
199,834
(5,820)
(5,820)
194,013
1,170,431
1,364,445
year
1,364,445
1,364,445
-
1,364,445		 2021
£
£
223,301
(4,429)
(4,429)
218,872
951,559
1,170,431
1,170,431
1,170,431
-
_1,170,431 _		 2021
£
£
223,301
(4,429)
(4,429)
218,872
951,559
1,170,431
1,170,431
1,170,431
-
_1,170,431 _
218,872
951,559
1,170,431
_1,170,431 _
1,170,431
-
_1,170,431 _

Notes on the accounts year ended 31 December 2022

27

1 Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a) Basis of preparation

The financial statements have been prepared in accordance with the Charities: Statement of Recommended Practice (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)) (2nd Edition effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Sustainable Hospitality Alliance meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

b) Preparation of the accounts on a going concern basis

The Sustainable Hospitality Alliance reported net income of £103,198 for the period. The trustees are of the view that ongoing funding agreements and membership contributions have secured the immediate future of the Sustainable Hospitality Alliance for the next 12 to 18 months, and that the current cash position and future projections indicate sufficient levels to continue operations without interruption, and that on this basis the charity is a going concern for the foreseeable future and that there are no material uncertainties in relation to the ability of the charity to continue as a going concern.

The trustees remain vigilant of the need to secure on-going financial support and to monitor financial commitments and cash flows to maintain the organisation’s financial viability.

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably and is not deferred.

Grant income received in advance of performance or provision of other specified service it is deferred until the criteria for income recognition are met (see note 23).

d) Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general time of volunteers not recognised; refer to the trustees’ annual report for more information about their contribution.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to

Notes on the accounts year ended 31 December 2022

28

obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

e) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

f) Fund accounting

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

g) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

• Costs of raising funds comprise fundraising and publicity and their associated support costs.

• Expenditure on charitable activities includes the costs of undertaking specific activities and projects in Human Rights, Youth Employment, Climate Action, Water Stewardship and Cross organisational activities and their associated support costs.

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

h) Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back-office costs, finance, personnel, other organisational running costs and are classified between Office expenses, Governance costs and Other support costs. These costs have been allocated between cost of raising funds and expenditure on charitable activities.

Support costs have been allocated to activities (whether raising funds or charitable activities) on the following bases:

• Where a support cost can be specifically attributed to an activity it is directly allocated

• Where the support costs have a general effect on activities, they are apportioned to activities on the basis of staff time recorded undertaking the activities

Support costs related to publicity and promotion are not reapportioned to charitable activities.

i) Tangible fixed assets

Individual fixed assets costing £500 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight-line basis as follows:

Asset Category

Computer equipment

Over 3 years

j) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Notes on the accounts year ended 31 December 2022

29

k) Cash at bank and in hand

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

l) Creditors and provisions

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

m) Pensions

Existing employees of the charity were entitled to join the defined contribution Group Personal Pension Plan operated by Scottish Widows which is funded by contributions from employee and employer.

n) Critical accounting judgements and key sources of estimation uncertainty

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The Trustees do not consider there are any critical judgements or sources of estimation uncertainty affecting assets or liabilities at the balance sheet date which is likely to result in a material adjustment to their carrying amount in the next financial year.

o) Financial Instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at the settlement value.

Notes on the accounts year ended 31 December 2022

30

NOTES ON THE ACCOUNTS YEAR ENDED 31 December 2022

NOTES ON THE ACCOUNTS YEAR ENDED 31 December 2022
2A.
DONATIONS AND LEGACIES
Donations
Gifts in kind
DONATIONS AND LEGACIES 2021
Donations
Gifts in kind		 Unrestricted
£
4,204
42,381
46,585
Unrestricted
£
4,988
57,013
_62,001 _		 Restricted
£
-
-
-
Restricted
£
-
-
-		 Year
ended
31-Dec-
22
£
4,204
42,381
46,585
Period
ended
31-Dec-
21
£
4,988
57,013
_62,001 _

The value of volunteers, consultants and corporate entities time is estimated at £42,381 (£57,013 in 2021). We have included the value where it is quantifiable but recognise that the Charity received a significant level of support, which we are unable to quantify.

2B. TRANSFER FROM BUSINESS IN THE COMMUNITY

Transfer - cash, assets and balance owing
Recognised as Trade debtors
Recognised as Deferred and prepaid membership contributions
Recognised as accrued income
TRANSFER FROM BUSINESS IN THE COMMUNITY 2020
Transfer - cash, assets and balance owing
Recognised as Trade debtors
Recognised as Deferred and prepaid membership contributions
Recognised as accrued income		 Unrestricted
£
-
-
-
-
-
Unrestricted
£
-
-
-
-
-		 Restricted
£
-
-
-
-
-
Restricted
£
-
-
-
-
-		 Year
ended
31-Dec-
22
£
-
-
-
-
-
Period
ended
31-Dec-
21
£
-
-
-
-
-

Notes on the accounts year ended 31 December 2022

31

3.
CHARITABLE ACTIVITIES 2022
Grants
Global Fund to End Modern Slavery
Sightsavers (Royal Commonwealth Society for the Blind)
Hyatt Community Grants Fund
TUI Care Foundation
The J. Willard and Alice S. Marriott Foundation
Marriott International
The International Labour Organisation (ILO)
International Organisation for Migration (Geneva)
International Organisation for Migration (Philippines)
United Nations Environment Programme (UNEP)
GIZ GmbH
CHARITABLE ACTIVITIES 2021
Grants
Souter Charitable Trust
Global Fund to End Modern Slavery
Sightsavers (Royal Commonwealth Society for the Blind)
Hyatt Community Grants Fund
TUI Care Foundation
The J. Willard and Alice S. Marriott Foundation
Marriott International
The International Labour Organisation (ILO)
International Organisation for Migration (Geneva)
International Organisation for Migration (Philippines)
United Nations Environment Programme (UNEP)
4.
NET INCOME FOR THE YEAR
This is stated after charging the following:
- Depreciation
- Auditors remuneration for audit services
for audit services
for other services
- Operating lease rentals		 Unrestricted
£
-
-
-
-
-
-
-
-
-
-
-
-
Unrestricted
£
5000
-
-
-
-
-
-
-
-
-
-
5,000		 Restricted
£
11,058
34,775
101,709
38,102
148,265
20,131
-
249,254
-
30,922
9,078
643,294
Restricted
£
-
102,541
85,520
57,616
7,703
138,074
18,932
18,304
155,980
38,271
16,802
639,472
Year
ended
31-Dec-22
£
4,101
15,000
1,800		 Year
ended
31-Dec-
22
£
11,058
34,775
101,709
38,102
148,265
20,131
-
249,254
-
30,922
9,078
643,294
Period
ended
31-Dec-
21
£
5,000
102,541
85,520
57,616
7,703
138,074
18,932
18,304
155,980
38,271
16,802
644,742
Period
ended
31-Dec-
21
£
2,785
12,000
1,800

Notes on the accounts year ended 31 December 2022

32

5. EXPENDITURE

FOR THE YEAR ENDED 31 December 2022

Support
Costs
£
a)
ANALYSIS OF EXPENDITURE
Raising Funds
Fundraising and
publicity
19,076
Expenditure
on charitable
activities:
Human Rights
25,521
Youth
Employment
12,871
Climate Action
23,985
Water
Stewardship
1,288
Cross
organisational
activities
84,668
TOTAL
EXPENDITURE
167,410		 Staff Costs
£
91,381
223,309
262,259
182,524
16,700
773
776,945		 Grants
to
Partners
£
-
-
94,012
-
-
-
94,012		 Other Direct
£
-
425
27,262
2,919
-
115,814
146,420		 Total
2022
£
110,458
249,254
396,404
209,428
17,988
201,255
1,184,787		 Total
2021
£
83,710
241,183
470,164
34,422
5,923
_74,352 _
_909,754 _

The costs above include support costs which are allocated on the basis of expenditure undertaken.

b) ANALYSIS OF SUPPORT COSTS FOR THE YEAR ENDED DECEMBER 2022

Raising Funds
Fundraising and
publicity
Expenditure on
Human Rights
Youth
Employment
Climate Action
Water
Stewardship
Cross
organisational
activities
TOTAL
SUPPORT
COSTS:		 Office
expenses
Governance
costs
£
£

-
-
charitable activities:
270
-
209
-
202
-
-
-
21,510
17,810
22,192
17,810		 Other
support
costs
£
19,076
16
(10,832)
112
50
118,985
127,408		 Reallocation
£
-
25,234
23,494
23,671
1,238
(73,637)
-		 Total
2022
£
19,076
25,521
12,871
23,985
1,288
84,668
167,410		 Total
2021
£
7,400
33,780
63,613
6,091
1,994
37,352
150,230

The basis for apportionment of support costs is set out in Note 1i). Include in Other support costs is the value of £57,013 of in-kind contributions received.

c)

GOVERNANCE
COSTS
Legal and
professional,
including audit		 Year ended
31-Dec-
22
£
17,810
17,810		 Period
ended
30-Dec-
21
12,000
12,000

Notes on the accounts year ended 31 December 2022

33

EXPENDITURE
(cont)
Year ended
Unrestricted
Restricted
31-Dec-22
Grants paid to
institutions
£
£
£
Cheshire Disability Services
Kenya (CDSK)
-
-
-
Kherwadi Social
Welfare Association
-
60,093
60,093
Stanforte Edge
-
27,454
27,454
Spence Evoluzione
Charitable Trust
-
3,901
3,901
Don Bosco Tech
Society
-
2,564
2,564
-
94,012
94,012
6.
STAFF NUMBERS AND COSTS
The average number of persons employed during the year were as follows
Raising funds
Charitable activities
Support
The aggregate payroll costs of these persons were as follows
Salaries and wages
Social security costs
Pension scheme contributions		 EXPENDITURE
(cont)
Year ended
Unrestricted
Restricted
31-Dec-22
Grants paid to
institutions
£
£
£
Cheshire Disability Services
Kenya (CDSK)
-
-
-
Kherwadi Social
Welfare Association
-
60,093
60,093
Stanforte Edge
-
27,454
27,454
Spence Evoluzione
Charitable Trust
-
3,901
3,901
Don Bosco Tech
Society
-
2,564
2,564
-
94,012
94,012
6.
STAFF NUMBERS AND COSTS
The average number of persons employed during the year were as follows
Raising funds
Charitable activities
Support
The aggregate payroll costs of these persons were as follows
Salaries and wages
Social security costs
Pension scheme contributions		 Year ended
Restricted
31-Dec-22
£
£
-
-
60,093
60,093
27,454
27,454
3,901
3,901
2,564
2,564
94,012
94,012
the year were as follows		 Period
ended
31-Dec-21
£
6,129
28,131
25,933
7,844
29,238
97,275
2022
No.
1.1
9.8		 2021
No.
1.5
7.0
Support 1.1 0.8
12.0 9.3
The aggregate payroll costs of these persons were as follows
Salaries and wages
Social security costs
Pension scheme contributions		 £
662,592
71,573
42,779
776,945		 £
490,673
58,431
29,758
_578,862 _

The number of employees whose emoluments, excluding pension contributions and employer's national insurance who were in excess of £60,000 were:

£60,000 - £69,999
£70,000 - £79,999		 2022
No.
3
3
6		 2021
No.
1
1
2

Contributions of £42,779 (£29,758 in 2021) were paid on behalf of these employees into a money purchase pension scheme.

The total employee benefits of the key management personnel of the Charity were £259,767 (£166,495 in 2021)

Notes on the accounts year ended 31 December 2022

34

7. TRUSTEES' REMUNERATION AND REIMBURSED EXPENSES

Reimbursements of travelling expenses totalling £997.31 was paid to Trustees for attendance at Trustee meetings.

8. TANGIBLE ASSETS

Group and Charity
Cost or Valuation
As at 1 January 2022
Additions
Disposals
At 31 December 2022
Depreciation & Amortisation
As at 1 January 2022
Charged in Year
Disposals
At 31 December 2022
Net Book Value
At 01 January 2022
At 31 December 2022		 Computer
Equipment
£
10,188
5,820
-
16,009
(3,265)
(4,101)
-
(7,366)
6,923
8,642

09. INVESTMENTS

There were no investments on behalf of the charity at 31 December 2022

10. TAXATION

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

Notes on the accounts year ended 31 December 2022

35

11
DEBTORS
Trade debtors
Other debtors
Prepayments and accrued income
12
CREDITORS: Amounts falling
due within one year
Trade creditors
Other creditors including taxation and social security
Grant commitments
Accruals and deferred income		 Charity
2022
£
234,520
-
49,504
284,024
Charity
2022
£
11,233
29,132
899,635
940,000		 Charity
2021
£
140,413
-0
15,081
155,495
Charity
2021
£
2,205
21,079
642,103
665,388
13.
DEFERRED INCOME
Amount deferred in the year		 Brought
forward
deferred
income
01 Jan
2022
£
(616,020)
(616,020)		 Amount
released
in 2022
£
_(_1,237,747)
(1,237,747)		 Amount
deferred
in 2022
993,274
993,274		 Deferred
income
carried
forward
year
ended 31
Dec 2022
(860,494)
(860,494)

Deferred income represents income or membership contributions invoiced or received for use in future periods

Notes on the accounts year ended 31 December 2022

36

14. FUNDS
Unrestricted Funds
Designated Funds
Humanity United
General Funds
Restricted Funds
Global Fund to End Modern Slavery
Sightsavers (Royal Commonwealth
Society for the Blind)
Hyatt Community Grants Fund
The IHG Foundation (UK) Trust
TUI Care Foundation
Marriott International
Hilton Effect Foundation
The J. Willard and Alice S. Marriott
Foundation
The International Labour
Organisation (ILO)
International Organisation for
Migration (Geneva)
International Organisation for
Migration (Philippines)
United Nations Environment
Programme (UNEP)
GIZ GmbH
Booking.com
Grants		 At 31
December
2021
Income
Expenditure
Transfer
from
BITC
Transfers/
gains/
(losses)
At 31
December
2022
£
£
£
£
£
£
36,639
-
36,713
-
-
(73)
590,726
591,144
473,298
-
-
708,572
627,365
591,144
510,010
-
-
708,499
-
11,058
11,058
-
-
-
-
34,775
34,775
-
-
-
-
101,709
101,709
-
-
-
1
-
-
-
-
1
-
38,102
38,102
-
-
-
12,532
20,131
32,663
27,564
-
18,951
8,614
-
148,265
148,265
-
-
-
-
-
(1)
249,254
249,254
(2)
-
-
-
-
-
30,922
30,922
-
-
9,078
9,078
-
(1)
-
-
(1)
40,095
643,294
674,777
-
-
8,612
667,461
1,234,437
1,184,787
-
-
717,111

Notes on the accounts year ended 31 December 2022

37

14. FUNDS
Unrestricted Funds
Designated Funds
Humanity United
General Funds
Restricted Funds
Youth Employment-restricted
Global Fund to End Modern Slavery
Sightsavers (Royal Commonwealth
Society for the Blind)
Hyatt Community Grants Fund
The IHG Foundation (UK) Trust
TUI Care Foundation
Youth Employment-broadly restricted
Marriott International
Hilton Effect Foundation
The J. Willard and Alice S. Marriott
Foundation
Human Rights
The International Labour Organisation
(ILO)
International Organisation for Migration
(Geneva)
International Organisation for Migration
(Philippines)
Sustainability
United Nations Environment Programme
(UNEP)
Booking.com
Grants		 At 31
December
2020
Income
Expenditure
Transfer
from
BITC
Transfers/
gains/
(losses)
At 31
December
2021
£
£
£
£
£
£
134,938
-
98,299
-
-
36,639
298,245
373,210
80,728
-
-
590,726
433,183
373,210
179,027
-
-
627,365
102,541
102,541
-
-
-
85,520
85,520
-
-
-
57,616
57,616
-
-
-
13,262
-
13,261
-
-
1
15,532
7,703
23,234
-
-
-
37,856
18,932
44,257
-
-
12,532
28,637
-
1,073
-
-
27,564
-
138,074
138,074
-
-
-
-
18,304
18,304
-
-
-
24,097
155,980
180,078
-
-
(1)
-
38,271
38,271
-
-
-
-
16,802
16,802
-
-
-
11,696
-
11,697
-
-
(1)
131,080
639,742
730,726
-
-
40,095
564,263
1,012,951
909,754
-
-
_667,461 _

Notes on the accounts year ended 31 December 2022

38

ANALYSIS OF FUND BALANCES BETWEEN NET ASSETS - 15. CURRENT YEAR

Tangible fixed assets
Investments
Net current assets		 Restricted
Funds
£
-
-
8,612
8,612		 AT 31 December 2022
General
Funds
Designated
Funds
£
£
8,642
-
699,930
(73)
708,572
(73)		 Total
£
8,642
-
708,469
717,111

ANALYSIS OF FUND BALANCES BETWEEN NET ASSETS - PRIOR YEAR

Tangible fixed assets
Investments
Net current assets		 Restricted
Funds
£
-
-
40,095
40,095		 AT 31 December 2021
General
Funds
Designated
Funds
£
£
6,923
-
-
-
583,803
36,639
590,726
36,639		 Total
£
6,923
-
660,538
667,461

16. CAPITAL COMMITMENTS

Sustainable Hospitality Alliance had no capital commitments at 31 December 2022 or at 31 December 2021

17. OPERATING LEASE REQUIREMENTS

Sustainable Hospitality Alliance had no operating lease commitments at 31 December 2022 or at 30 December 2021.

18. MEMBERS LIABILITY

In the event of the company being wound up, Trustees will each have a liability of £1.

19. PENSION COMMITMENTS

Sustainable Hospitality Alliance operates a Group pension arrangement. The overall pension charge for the year was £42,779 (£29,758 in the period to 31 December 2021). At 31 December 2022, £6,005 contributions were outstanding (£4,104 as of 30 December 2021).

Notes on the accounts year ended 31 December 2022

39

RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH

20. INFLOW

RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH
INFLOW
Net movement in funds
Investment income
Net (gains)/ losses on investments
Depreciation and amortisation
Increase/ (Decrease) in creditors
(Increase)/ Decrease in debtors
(Increase)/ Decrease in stocks
Net Cash generated by operating activities		 2022
£
49,650
-
-
4,101
274,612
(128,530)
-
**199,834 **		 2021
£
206,396
-
-
2,785
92,264
25,054
-
326,499

21. RELATED PARTY TRANSACTIONS

There were no related party transactions other than the trustee payment in note 7 in the current or previous accounting period.

Notes on the accounts year ended 31 December 2022

40