OpenCharities

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

2024-03-31-accounts

CRODA FOUNDATION Annual Report

Company number: 13097522 Charity number: 1196455

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

Contents

Reference and administrative information 1
Trustees’ annual report 2
Independent auditor’s report 20
Statement of financial activities (incorporating an income and expenditure
account)		 25
Balance sheet 26
Statement of cash flows 27
Notes to the financial statements 28

Cover photo courtesy of Neverthirst

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

Administrative details

Company number: 13097522 Charity Number 1196455 Country of registration England & Wales

Registered office and operational address: Cowick Hall

Snaith Goole East Yorkshire DN14 9AA

Trustees

Trustees who are also directors under company law, who served during the period and up to the date of this report were as follows:

Dr Helena Ganczakowski – (Appointed May 2023 and Chair as of September 2023) Nigel Turner (retired September 2023)

Stuart Arnott

Anthony Fitzpatrick (resigned May 2024)

Veronica Santana de Freitas Blanco (Appointed May 2023)

Key management personnel

The following two individuals are key management personnel of Croda Foundation:

Executive Director: Rommel Moseley Grants Manager: Nazia Mutto

Independent Auditor: Bankers: Solicitors: Sayer Vincent LLP NatWest Bank Bates Wells 110 Golden Lane 34 King Edward Street 10 Queen Street Place London Hull London EC1Y 0TG HU1 3SS EC4R 1BE

Page 1 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

Trustees’ annual report

The Trustees of Croda Foundation (“The Foundation”), who are also directors of the charity for the purposes of the Companies Act, are pleased to present their annual report and financial statements for the year ended 31 March 2024. The financial statements comply with current statutory requirements, the memorandum and articles of association, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice- Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and activities: objects of the charity

The objects of Croda Foundation are to advance all purposes charitable under the law of England and Wales. The Foundation’s strategic priorities over this reporting period are to improve the lives of the communities which the Foundation supports by providing access to people, know-how and capital. This includes (but is not limited to) supporting projects which would improve access to healthcare and health provision, reduce poverty, hunger, improve livelihoods and protect/restore ecosystems in the Foundation’s Priority Countries. In carrying out its work, and within the scope of its objects, the Foundation aims to support the United Nations Sustainable Development Goals (UN SDGs).

Grant making criteria

Grants provided by the Foundation support registered charities and other grantees (which may include, but are not limited to, farmer cooperatives, international development organisations and institutional partners) located both within and outside of England and Wales, which promote purposes which are exclusively charitable under the law of England and Wales. The Foundation prioritises support for the priority countries, which are predominantly countries in which Croda International Plc does business. The Trustees consider that the Foundation can make the greatest impact in these Priority Countries. To be eligible for support from the Foundation in the previous reporting period, projects must meet all of the following conditions:

meet all areas in the Core Criteria (as described below);

meet at least one requirements under the Impact Plus Criteria (as described below); and support the Foundation’s charitable purposes.

Photo courtesy of Fondo para la Paz

Page 2 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

Core Criteria

Any potential projects for the Foundation must:

Impact Plus Criteria

Nominated projects must also meet at least one of the below criteria:

Grants are a minimum of £20,000 per project. There is no maximum grant amount, and each project is evaluated by the Trustees against the Foundation’s grant making criteria and the annual budget.

All grants made are restricted fund grants to be applied to a specific purpose, to ensure that delivery by grantees supports the Foundation’s charitable purposes and meets the grant making criteria set out by the Trustees.

Principal activities of the charity and public benefit

The Trustees have considered Charity Commission published guidance on the operation of the public benefit requirement. The Trustees have considered how our funded projects will contribute to the Foundation’s grant criteria. All projects funded fall under the purposes defined by the Charities Act 2011.The Trustees are committed to ensuring our income is used efficiently, effectively and responsibly to provide public benefit.

Photo courtesy of Kaleka

Page 3 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

Achievements and Performance: Croda Foundation grant portfolio

Croda Foundation has supported 38 grants in 22 countries to date with a total grant commitment of £4.3m . In this reporting period we have supported 15 grants with a total commitment of £1.4m . Our grant portfolio supports partners in our three strategic priority focus areas:

Reducing hunger and poverty, and improving livelihoods by building resilience in communities

Improving access to healthcare and health provision by strengthening infrastructure in the communities

Protecting and restoring ecosystems by improving biodiversity

Association of Women in Agriculture Kenya

Two continuation grants were awarded to AWAK, £63,640 in June and £45,350 in October, with the goal to empower women and lift them out of poverty, through building self-sustaining urban farming. Both grants combined will train and support 3,500 women living in slums in Nairobi and Mombasa Kenya, teaching them urban farming, baking, briquette making and business development skills. They utilise their trainer of trainers’ (TOTs) model to motivate women and the beneficiaries by using a peer learning experience and applying shared knowledge.

Beyond Suncare

A continuation grant of £90,000 was awarded to Beyond Suncare to enable people with albinism to live a free and dignified life, protected against skin cancer and discrimination in Uganda. They will train a further 90 health workers to deliver skin cancer screening clinics and sun protection education in Uganda. The grant will support 1,200 people living with albinism and their caregivers.

Page 4 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

Cleft Lip & Palate Association (CLAPA)

A grant of £29,181 was awarded to CLAPA to provide support and advice to children and families of those who have a cleft lip and palate. Their grant specifically went towards funding Welcome Packs of specialist feeding equipment and information to 730 families in the UK, so parents can feed their baby and get home from hospital as soon as possible.

CABI

A grant of £299,145 was awarded to support small-holder farmers in Chile who are growing potatoes but have an over reliance on chemical pesticides and lack knowledge with using them, which are needed to combat pests and disease. This project seeks to provide training and structured support that will embed skills and knowledge into farming communities, enabling improved farm safety and biodiversity conservation, leading to income security and improved livelihoods.

Café Joyeux

A grant of £20,000 was awarded to Café Joyeux to support people with learning difficulties such as intellectual and developmental disabilities, with an apprenticeship in the café and catering industry, and providing them with longterm jobs at Café Joyeux in France. The programme includes on the job training in cafés teaching them professional techniques and skills in catering and customer service. They also receive theoretical training with a trainer to learn about associated knowledge needed for the job, receiving a diploma upon completion.

Dig Deep (Kenya)

A grant of £51,196 was awarded to Dig Deep for Water, Sanitation and Hygiene (WASH) infrastructure in Bomet County Kenya, enabling a wider catalytic impact of reducing poverty, alleviating hunger and improving health. In total 10,800 people in 25 villages will benefit from WASH, through the provision of rainwater harvesting at four schools and protection of two community springs, along with sanitation, hygiene and menstrual health education.

Dig Deep (USA)

A grant of £100,000 was awarded to Dig Deep to support the Navajo Nation (in New Mexico, Arizona, and Utah, USA) with Water, Sanitation and Hygiene (WASH) infrastructure. The project will install 11 household water solutions to indigenous people without access to water and sanitation. These solutions include providing solar-powered Home Water Systems, piped water extensions and mainline water connection, and wastewater solution installation, repair, and servicing.

Page 5 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

Espaço Feminista

A grant of £30,000 was awarded to Espaço Feminista to deliver a grassroots women-led project to support the Conceição das Crioulas women in Brazil, whose descendants arrived to the region as free Creoles, acquiring land rights in the 18th and early 19th centuries. The project helps highlight these women’s heritage and restores the caatinga biome and water springs where they live. The project will reach between 80-200 women enabling them to earn an income through planting organic cotton to create products from and producing fair-trade honey to sell.

Fondo Para La Paz

A grant of £19,768 was awarded to Fondo Para La Paz for constructing Rainwater Collection and Storage Systems, enabling water security and water access for 83 Nahua-speaking indigenous families. These people are living in ‘hard to reach’ indigenous rural communities faced with the challenges of poverty. This project aims to be participatory, inclusive and sustainable, working with the community to ensure the long-lasting provision of clean water.

Instituto Sinal do Vale

A grant of £90,000 was awarded towards capacity building for 200 small-holder farmers to improve their livelihoods. The project is implementing agroforestry practices and developing income-generating opportunities through conservation, aiming to foster inclusive forest landscape restoration, local food security, and sustainable economic development through the creation of the Guanabara Bay Trail, in Brazil.

Photo courtesy of Espaço Feminista

Page 6 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

Kaleka

A grant of £60,000 was awarded to the Kaleka Mosaik Initiative, through the ASD Impact Fund to support 200 small-holder farmers and communities in Central Kalimantan, Seruyan and Kotawaringin Barat, two districts in Indonesia in high-risk palm oil production landscapes. The grant helps communities adopt and upscale models of regenerative agriculture, restore degraded lands and protect their existing forests. Farmers in these districts will also become Roundtable on Sustainable Palm Oil (RSPO) certified, allowing them to get a price premium for sustainably producing commodities, which is critical to improving their product value and consequently their livelihoods.

Neverthirst

A continuation grant of £119,871 was awarded to Neverthirst to bring Water, Sanitation and Hygiene (WASH) to unreached communities. Their grant went towards rehabilitating or installing new hand pumps in poor communities in Uganda benefiting 5,400 people, where many women are walking one to two hours per day to collect water. Neverthirst was also successful in being awarded Charity of the Year, voted for by Croda employees, giving them an additional £25,000 towards installing one hand pump and 40 household filters, benefiting a further 750 people.

Standing Voice

A grant of £398,187 was awarded to Standing Voice to reduce mortality from skin cancer among people with albinism in Tanzania. They will achieve this by establishing a national skin cancer prevention programme, with a focus on strengthening the capacity of duty bearers (health workers, civil society actors and family members), and disseminating a comprehensive toolkit of resources to reinforce long-term sustainability.

Photo courtesy of Standing Voice

Page 7 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

Impact reporting:

The Foundation’s implementing partners who receive funding are required to report against key performance indicators (KPIs) aligned with the Foundation’s Grantmaking criteria. The Foundation shares performance information through our Annual Report and via our website. In the last two years of grant giving, our support directly impacted 22.8m people.

----- Start of picture text -----
56,579
lives sustainably improved
----- End of picture text -----

----- Start of picture text -----
22,740,723 129,006
lives sustainably improved lives sustainably improved
----- End of picture text -----

Lives sustainably improved: 22,862,243

The following case studies were selected to illustrate public benefit and impact against our three focus areas. Our case study grant partners have delivered impact against the agreed KPIs and in line with our Grantmaking policy. The three case studies are: Amref Health Africa, Nitidae and Project HOPE and were grant partners awarded in the previous financial year.

Amref Health Africa

Awarded a total of £249,754 towards setting up a Mobile Vaccination Clinics (MVCs) programme in 8 counties in Kenya, including training for Village Health Teams and Frontline Health Workers. Their mission is to increase sustainable health access to communities in Kenya.

Key impact:

Page 8 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

Nitidae

Awarded £233,511 towards creating an independent network of trials in real farmer context to develop innovative and sustainable cocoa farming models in the Ivory Coast, including restoring forest land and increasing small holder farmers’ incomes. This is a three-year project with the first year having been completed thus far.

Key impact:

Page 9 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

Project HOPE

Awarded £200,000 to improve access to vital maternal health services of underserved migrant women and young girls, mostly from Venezuela who are transiting through Colombia because medical care is often poor or very inadequate. The project works on the front lines of the world’s health challenges, providing funding for medical professionals and enabling four healthcare facilities to scale-up their resources.

Key impact:

Photo courtesy of Project HOPE

Page 10 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

Financial Review

During the reporting year, The Foundation received £1,434,549 in donations from Croda International Plc. We have made 15 grants in 9 countries with a total commitment of £1.4m.

Croda Foundation expenditure (includes direct grants and grant related costs) in this reporting period was £1.834m. £1.787m related to grants and £34k related to support costs and £13K related to governance costs.

The Foundation works closely with project partners to ensure the greatest impact of the funds it invests in projects. The project objectives and outputs are set out in a signed Grant agreement with the project partners. Progress against project objectives is monitored by the Grant Manager through project Status reports from the project partners and grant monitoring visits.

Fundraising

Croda Foundation does not fundraise from the public or use any professional fundraisers or commercial participators. Therefore, the charity is not registered with the Fundraising Regulator and received no complaints in this reporting period. The table on the next page shows our total grant making in this reporting period.

Page 11 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

----- Start of picture text -----
Amount
Implementing Grants supported in this
Location awarded
partner reporting period
(£)
Association of
Women in Kenya 108,990 2
Agriculture Kenya
Beyond Suncare Uganda 90,000 1
CABI Chile 299,145 1
Café Joyeaux France 20,000 1
Cleft Lip and Palate
UK 29,181 1
Association
Dig Deep (Kenya) Kenya 51,196 1
Dig Deep (USA) USA 100,000 1
Espaço Feminista Brazil 30,000 1
Fondo Para La Paz Mexico 19,769 1
Instituto Sinal do
Brazil 90,000 1
Vale
Kaleka Indonesia 60,000 1
Neverthirst Uganda 144,871 2
Standing Voice Tanzania 398,187 1
Totals 9 countries £1,441,339 15 grants
----- End of picture text -----

Page 12 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

Services provided by Croda International Plc

In addition to financial contributions from Croda International Plc, the company’s employees provide time, expertise and resources to Croda Foundation in direct support of its grant making activities and in the administration of its affairs. The services are provided free of charge and are subject to the Grant and Resource Sharing Agreement (GRSA) between Croda Foundation and Croda International Plc. The non-financial support includes Croda employees who are seconded to support the Foundation’s charitable objects. The estimated value of services in this reporting period is £35K.

Principal risks and uncertainties

Risks are assessed based on their likelihood and potential impact, along with the mitigation strategies in place to manage them in line with the board’s risk appetite. The Foundation Trustees review risks three times a year at their Governance meeting to ensure risks assessed accurately reflects their likelihood and potential impact.

The Executive Director continually monitors changes in risk levels or the emergence of new risks that may impact upon the organisation and escalates any concerns to the Trustees. The Trustees have established as of January 2024 an Audit, Risk, Finance Committee which will provide additional assurance on the management of risk and finances.

Page 13 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

The Trustees consider the following to be principal risks to Croda Foundation:

----- Start of picture text -----
Risk Identified Mitigation Steps
----- End of picture text -----

Risk Identified Mitigation Steps
Key personnel leave / inability
to recruit		 All policies and procedures documented and updated regularly
Policy of appropriate handover period
Knowledge of Foundation operations spread through
Foundation Team, Secondees, Board and Changemakers
Succession Planning discussed and monitored at Board once
per annum
Trustees agreed to pay competitive salaries as part of the
retention mitigation plan
Grantee / project failure Thorough due diligence completed before making grant to
ensure grantee is competent to deliver planned project
Regular reporting requirements for grantees and monitoring
visits to most grantees to monitor progress
Secondments come to an end
as agreed and no suitable
internal replacement has been
found		 An agreement of time-commitment and duration is negotiated
with the secondees’ Line Managers by the Executive Director
(ED)
Recruitment for future secondments to start three months
before current secondee role ends
ED seeks to extend secondees time with Line Manager until a
suitable replacement is found
ED to escalate to Board recommending external recruitment if
no replacement is found or secondment can't be extended

Page 14 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

Reserves policy and going concern

Reserves policy

Our reserves policy sets out the minimum balance of readily available cash held by the Croda Foundation to achieve the required risk reward profile for the Foundation. The purpose of setting a reserves level is to protect Croda Foundation against drops in income. The policy explains why we set some money aside rather than spending it on our charity’s aims. The Foundation currently exceeds its target reserves amount of £100,000.

Setting our reserves level

The Trustees have set the Foundation’s reserves level at £100,000. We estimate this is to cover three months of operating costs plus legal and audit expenses to shut down our operations.

The reserves level is reviewed twice a year by the Foundation Board of Trustees at their May and September meetings.

The Foundation currently hold reserves of £165,000. At each budget re-forecast meeting the board examines the reserves levels to ensure it meets our target level. The board will reallocate £65K in the first budget re-forecast of the next financial year to bring reserves down to target amount of £100,000.

We will always hold accessible cash reserves sufficient to cover:

Croda Foundation has protections in the Grant and Resource Agreement (GRSA) between the Foundation and Croda International Plc where it pertains to all committed expenditure to grantees. These are the funds required to meet our contractual financial obligations to grantees.

Croda International Plc agrees to provide funding to the Foundation to meet these commitments (provided that the Foundation does not enter into any such arrangements after a termination notice is served and does not extend any existing arrangements).

Page 15 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

Going concern

The Trustees have thoroughly reviewed Croda Foundation’s financial budget and are of the opinion that there are no material uncertainties that cast significant doubt about the ability of the Foundation to continue as a going concern.

Plans for the future

The Foundation has surpassed its Vision of sustainably improving one million lives by 2030. Trustees will take time in the next reporting period to reflect and reset milestones for the Foundation.

Trustees will focus on impact reporting and grant learning in the next financial period to demonstrate the people positive impact our grants are having on our targeted communities.

The Foundation will also review its Strategy: Improving Lives and Livelihoods to ensure all learnings are captured and integrated into any re-prioritisation within the strategy. The Trustees will also prioritise our funding in the poverty and livelihoods focus area as they recognise that long lasting impact which can be achieved in this focus area.

Trustees will continue to evaluate their governance against the Charity Governance Code at their governance meetings and through the Audit, Risk, Finance Committee. The board will conduct a full skills audit and consider adding an additional trustee in the next reporting period. The board remains committed to diversity in the Trustee board with different sets of skills and experiences.

Structure, governance and management

Legal status

The charitable, limited by guarantee, company was incorporated in the UK on 23 December 2020 with company number 13097522 and registered in England & Wales with the Charity Commission on 8 November 2021 with charity number 1196455. The Foundation is governed by the Company Memorandum and Articles of Association.

Page 16 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

Trustees:

Trustees are appointed on a need basis. As the sole Member of The Foundation, Croda International Plc appoints two Trustees to the Trustee Board. The Memorandum and Articles of Association support a minimum of three Trustees.

Trustees have attended suitable induction and training as well as familiarisation sessions to ensure they have a clear understanding of the charity, its governance, and the context within which it operates. The Foundation’s approach to governance and decision making is framed by the terms set out in its Articles of Association and informed by the Charity Governance Code and guidance published by the Charity Commission for England and Wales.

Management:

The Trustees delegate day-to-day management to the Executive Director of Croda Foundation and his team. The Executive Director presents a management update at every Trustee meeting and accounts are made available to the Board.The Executive Director and Grant Manager support the effective running of the Foundation by managing relationships with partner organisations and operationally ensuring the Foundation meets all regulatory requirements. They make grant recommendations to the Trustees in accordance with the grant making policy. Trustees make decisions about grants to support at Trustee investment meetings.

Related parties and relationships with other organisations

The charitable company’s sole member is Croda International Plc and the Foundation receives all its income from Croda International Plc and its shareholders. The Trustees recognise their charitable responsibilities, and the charity’s activities will always be consistent with achieving its objects.Any benefit which may accrue to Croda International Plc from the Foundation’s activities will be incidental and outweighed by the contribution to the Foundation’s charitable objectives and purpose.

The Foundation’s Articles of Association and Conflict of Interest policy ensures that any Member conflicted Trustee can take part in the discussions but not the vote on matters or issues linked to the sole member. The Foundation keeps a record of all discussions and decisions about a conflict of interests and this is reported in the minutes of the meeting. All trustees must declare interests at the beginning of each Board and Investment meeting. This is to ensure that anyone who is conflicted cannot vote in final decisions.

Page 17 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

Remuneration policy for key management personnel

The Foundation’s employees’ pay, and remuneration are set with reference to sector benchmarks and Croda International’s remuneration policies. The remuneration policy is also decided by the Trustees to ensure retention of key personnel. It is reviewed annually by the Trustees. The Executive Director and Grant Manager are supported by secondees who are employees of Croda International Plc. The secondments support the Foundation’s operations such as Finance, Communications and Marketing as well as volunteers to support partner organisations funded by the Foundation.

Statement of responsibilities of the trustees

The trustees (who are also directors of Croda Foundation 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 which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that 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. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 18 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

In so far as the trustees are aware:

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.

Auditor

Sayer Vincent LLP was reappointed as the charitable company's auditor and has expressed its willingness to continue in that capacity.

The directors’ annual report has been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

The trustees’ annual report has been approved by the trustees on 27 June 2024 and signed on their behalf by

Dr Helena Ganczakowski Chair – Board of Trustees

Page 19 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

Independent auditor’s report to the members of Croda Foundation

Opinion

We have audited the financial statements of Croda Foundation (the ‘charitable company’) for the year ended 31 March 2024 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Page 20 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

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

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

Other Information

The other information comprises the information included in the trustees’ annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Page 21 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

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

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, 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.

Page 22 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

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 are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

Page 23 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

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 is available 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.

Noelia Serrano (Senior statutory auditor) 2 July 2024

for and on behalf of Sayer Vincent LLP, Statutory Auditor 110 Golden Lane, LONDON, EC1Y 0TG

Page 24 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

Statement of financial activities (incorporating an income and expenditure account)

Note
Unrestricted
£'000
31 March
2024
Total
£'000		 Unrestricted
£'000
Restricted
£'000
31 March
2023
Total
£'000
Income from:
Donations
2
1,435
1,435
Investments
14
14		 1,035
-
1,035
-
-
-
Total income
1,449
1,449		 1,035
-
1,035
Expenditure on:
Charitable activities
3
1,834
1,834		 974
903
1,877
Total expenditure
1,834
1,834		 974
903
1,877
Net (expenditure)/income
and movement in funds
(385)
(385)
Reconciliation of funds:
Total funds brought forward
550
550		 61
(903)
(842)
489
903
1,392
Total funds carried forward
165
165		 550
-
550

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 14 to the financial statements.

All income and expenditure in 2024 was unrestricted.

Page 25 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

Balance sheet

As of 31 March 2024

Company no. 13097522

Note 2024
£'000
£'000		 2023
£'000
£'000
Current assets:
Debtors
10
Short term deposits
Cash at bank and in hand		 16
2,000
726		 8
-
2,140
Liabilities:
Creditors: amounts falling due within one year
11		 2,742
(2,091)		 2,148
(1,445)
Net current assets 651 703
Total assets less current liabilities
Creditors: amounts falling due after one year		 651
(486)		 703
(153)
Total net assets 165 550
The funds of the charity:
14
Restricted income funds
Unrestricted income funds:
General funds
Total unrestricted funds		 -
165
165		 -
550
550
Total charity funds 165 550

Approved by the trustees on 27 June 2024 and signed on their behalf by

Dr. Helena Ganczakowski Chair - Board of Trustees

Page 26 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

Statement of cash flows

Statement of cash flows
2024
£'000
£'000		 2023
£'000
£'000
Cash flows from operating activities
Net expenditure for the reporting period
(385)
Increase in creditors
979
Increase in debtors
(8)		 (842)
(330)
(3)
Net cash provided by/(used in) operating activities
586		 (1,175)
Change in cash and cash equivalents in the year
586
Cash and cash equivalents at the beginning of the year
2,140		 (1,175)
3,315
Cash and cash equivalents at the end of the year
2,726		 2,140

Page 27 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

Notes to the financial statements

1. Accounting policies

a) Statutory information

Croda Foundation is a charitable company limited by guarantee and is incorporated in England.

The registered office address is Cowick Hall, Snaith, Goole, East Yorkshire DN14 9AA

b) Basis of preparation

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

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

c) Public benefit entity

The charity meets the definition of a public benefit entity under FRS 102.

Key judgements that the charity has made which have a significant effect on the accounts include. The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

d) Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

e) Income

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

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

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

Page 28 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

1. Accounting policies (continued)

f) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation 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), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

On receipt, donated gifts, 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 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.

g) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

h) 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:

Expenditure on charitable activities includes the costs of grant making undertaken to further the purposes of the charity and their associated support costs

Other expenditure represents those items not falling into any other heading

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

i) Grants payable

Grants payable are made to third parties in furtherance of the charity's objects. Single or multiyear grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

j) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. As the only activity of the Foundation is grant making, all support costs have been allocated accordingly as per Note 3.

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

Page 29 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

1. Accounting policies (continued)

k) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £5,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

l) Short term deposits

Short term deposits includes cash balances that are invested in accounts with a maturity date of between 3 and 12 months.

m) 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.

n) 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.

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 their settlement value.

p) Pensions

The Foundation does not operate its own pension scheme. The Foundation contributes on behalf of the employees to a Nest defined contribution scheme. The charge in the statement of financial activities represents the actual amount of the contribution payable to the pension schemes in respect of the accounting year. There is no liability in excess of this.

2. Income from donations

2. Income from donations
2024
Unrestricted
Total
£'000
£'000		 2023
Unrestricted
Total
£'000
£'000
Gifts
Donated services		 1,400
1,400
35
35		 1,000
1,000
35
35
1,435
1,435		 1,035
1,035

Donated services comprise of seconded staff costs, travel costs and legal and professional fees associated with Croda Foundation.

All income from donations was unrestricted for both periods.

Page 30 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

3a. Analysis of expenditure (current year)

Charitable
activities
Governance
costs
Support
costs
£'000
£'000
£'000		 2024
£'000		 2023
£'000
Staff costs (Note 6)
234
-
34		 268 207
Grant making (Note 4)
1,441
-
-		 1,441 1,465
Legal & professional fees
45
13
-		 58 61
Website costs
-
-
-		 - 42
Subscriptions
12
-
-		 12 22
Travel costs
48
-
-		 48 75
Training costs
3
-
-		 3 2
Sundry expenses
4
-
-		 4 3
1,787
13
34		 1,834 1,877
Support costs
34
-
(34)		 - -
Governance costs
13
(13)
-		 - -
Total expenditure 2024
1,834
-
-		 1,834
Total expenditure 2023
1,877
-
-		 1,877

3b. Analysis of expenditure (Prior year)

Charitable activities Governance costs Support costs 2023
£'000 £'000 £'000 £'000
Staff costs (Note 6) 182 - 25 207
Grant making (Note 4) 1,465 - - 1,465
Legal & professional fees 50 11 - 61
Website costs - - 42 42
Subscriptions 22 - - 22
Travel costs 75 - - 75
Training costs 2 - - 2
Sundry expenses - - 3 3
1,796 11 70 1,877
Support costs 70 - (70) -
Governance costs 11 (11) - -
Total expenditure 2023 1,877 - - 1,877

Page 31 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

4. Grant making

Grant making
2024
£'000		 2023
£'000
Association of Women in Agriculture Kenya
109		 -
Beyond Suncare
90		 -
CABI
299		 -
Café Joyeux
20		 -
CLAPA
29		 -
Dig Deep (Kenya)
51		 -
Dig Deep (USA)
100		 -
Espaço Feminista
30		 -
Fondo para la Paz
20		 -
Instituto Sinal do Vale
90		 -
Kaleka
60		 -
Neverthirst
145		 -
Standing Voice
398		 -
Against Malaria
-		 100
America’s Grow-a-Row (AGAR)
-		 81
Amref – Kenya
-		 250
Association Morija
-		 40
Fair Planet
-		 225
Gavi
-		 200
Nitidae
-		 234
Project HOPE
-		 200
Toilet Twinning
-		 111
UNICEF
-		 25
At the end of the year
1,441		 1,465

All grants were awarded to institutions.

5. Net income/(expenditure) for the year

Net income/(expenditure) for the year
This is stated after charging:
2024
£'000		 2023
£'000
Auditor’s remuneration (excluding VAT):
Audit
10		 9

Page 32 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

6. Analysis of staff costs, trustee remuneration and expenses, and the cost of key management

Staff costs were as follows: 2024 2023
£'000 £'000
Salaries and wages 166 134
Social security costs 20 18
Other staff related costs 4 -
Employer’s contributions to defined contribution pension schemes 45 31
235 183
Donated staff costs 34 24
Total staff costs 269 207

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

2024 2023
No. No.
£80,000 - £89,999 1 1
£90,000 - £99,999 - -

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £174,109 (2023: £129,915).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2023: nil). No (2023: nil) charity trustee received payment for professional or other services supplied to the charity.

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totaling £11,316 (2023: nil) incurred by 3 members relating to attendance at meetings of the trustees.

7. Staff numbers

The average number of employees (head count based on number of staff employed) during the year was three (2023: two).

8. Related party transactions

Croda International Public Limited Company is a related party as it is the sole member of the company and ultimate controlling party and parent entity. As the Foundation has a charitable status, the Foundation is excluded from Croda International's group consolidation due to the severe long- term restrictions which substantially hinder the exercise of the rights of Croda International over the Foundation.

Donations of £1,400,000 (2023: £1,000,000) were received or receivable during the year from Croda International. In addition, donated services worth £34,549 (2023: £35,056) were provided to the Foundation from Croda International. In 2023, a further £1,400,000 donation was received in relation to the 2024 accounting year, and as such had been held within deferred income in 2023 and subsequently recognised as income in 2024.

Page 33 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

9. Taxation

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

10. Debtors

Debtors
2024 2023
£'000 £'000
Prepayments 16 8
16 8

11. Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2024 2023
£'000 £'000
Trade creditors 3 1
Grants payable 639 409
Other creditors 2 -
Accruals 47 35
Deferred income (Note 12) 1,400 1,000
2,091 1,445

12. Deferred income

Deferred income comprises of grant funding received in advance of the year it relates to.

2024 2023
£'000 £'000
Balance at the beginning of the year 1,000 1,000
Amount released to income in the year (1,000) (1,000)
Amount deferred in the year 1,400 1,000
Balance at the end of the year 1,400 1,000

13. Creditors: amounts falling due after more than one year

2024 2023
£'000 £'000
Grants payable 486 153
486 153

Page 34 of 35

Croda Foundation Annual Report 2024 For the year ended 31 March 2024

14a. Movements in funds (current year)

Movements in funds (current year)
At 1 April Income Expenditure At 31 March
2023 & gains & losses 2024
£'000 £'000 £'000 £'000
Unrestricted funds:
General funds 550 1,449 (1,834) 165
Total unrestricted funds 550 1,449 (1,834) 165
Total funds 550 1,449 (1,834) 165

14b. Movements in funds (previous years)

At 1 April Income Expenditure At 31 March
2022 & gains & losses 2023
£'000 £'000 £'000 £'000
Restricted funds:
Croda International Plc 903 - (903) -
Total restricted funds 903 - (903) -
Unrestricted funds:
General funds 489 1,035 (974) 550
Total unrestricted funds 489 1,035 (974) 550
Total funds 1,392 1,035 (1,877) 550

15. Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

Page 35 of 35

DATION