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2024-12-31-accounts

REGISTERED CHARITY NUMBER: 1197456

TERRAVERDE CIO

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

CONTENTS OF THE FINANCIAL STATEMENTS

for the year ended 31 December 2024

Page
Trustees Narrative Report 3 to 8
9
Independent Examiner Report
Statement of Financial Activities 10
Statement of Financial Position 11
Notes to the Financial Statements 12 To 14

Page 2

TRUSTEES’ NARRATIVE REPORT TERRAVERDE CIO

FOR THE YEAR ENDED 31 DECEMBER 2024

Terraverde: Trustee Narra�ve: 2024 Accounts

Terraverde (TV) was physically launched to the charity market at the Labour Party conference in Liverpool in September 2024, as we iden�fied that this would be a suitable event for us to reach our target donors: middle class professionals with virtuous leanings and high disposable income – plus, of course, other poten�al legacy donors like John Hill himself.

why Bangladesh? I replied, rather uncertainly, that I saw Bangladesh as a crucible of global inequality, based on a few outside percep�ons:

London, but ironically also the historic centre of the Victorian-era rag trade with many tex�le factories preciously opera�ng nearby.

Sangeeta told me that she was also connected to the Bri�sh Bangladeshi Associa�on, with community leaders based locally, although she did not use this as a posi�ve asset of hers to win business from TV as a poten�al new client.

She told me that I was on the wrong track to establish TV as a UK charity, that Bangladesh was too remote a prospect for all but the most empathe�c of UK donors. If I was intent on establishing TV as an inequali�es-focused charity aiming at climate, health and wealth, then I should be looking at problems closer to home in order to make meaningful connec�ons with UK donors. Rather than feel limited by the UK’s rela�ve wealth, she said I should direct our charitable efforts towards those suffering from the intrinsic inequali�es here as there are many in desperate need of help. I took her advice, deferring to her charity and sustainability experience.

that he wished a charity to be set up following his death, but it was only in the accompanying le�er of wishes that he said he wished the charity to support organisa�ons working against climate change and wealth inequality. The trustees had previously taken the decision to limit ourselves to climate only, as wealth inequality (or, as its also know, poverty) seemed too insurmountable a problem – a narrow view, which I as Chair now regre�ed. As a telling background influence, my Mum happened to be an inequali�es specialist, having been the Director of Public Health back home in the Wirral. Known for its fair share of UK-extreme levels of wealth, being on the cusp of Liverpool and Cheshire, it’s also home to some extreme levels of depriva�on – which I had been conscious of as a kid watching Boys From The Blackstuff and wondering why, as a teenager, I couldn’t get a job. What my Mum saw as an epidemiologist, and worked with every day, is how those economic factors translated directly into higher disease and lower life expectancy levels in our home town.

Page 3

Prior to mee�ng John Hill I already knew that wealth and health inequality were intrinsically linked. I knew from my wealth management business that those on lower incomes and with fewer assets were not only in poorer health but were going to die much sooner. It was more expensive for them to insure themselves and protect their families; they wasted what li�le money they had because they had lower levels of educa�on; they lived in worse housing condi�ons because they had never escaped the social housing sector, never mind the private rented sector. They were not in control of their own lives, and I knew very well how the financial services industry was not interested in helping people like this because they had nothing they could make profit from. Advisers like me only really looked at a new client if they had 100k+ to invest, so I felt uneasy that there was a huge popula�on out there precariously on the edge of security.

condi�on, themselves directly correlated to wealth. The effects of the prolonged mental compression led to a reimagining of lives lived, and for one I was intent on pursuing a business not solely driven by financial return. I had decided to sell my business because I no longer wished to trade in a legacy industry limited by outdated salesforce structures, which served only the comfortable and the rich. Advances in tech, however, meant that those people could be served by new disruptors who could gather data and transact business more efficiently without the need for a city office, or – post-covid – a suit and �e. Despite not being able to code, or remember my passwords properly, I decided to build a new digital business designed to offer consumer value.

brother had coincidentally suggested that I get involved in green mortgages as he felt that they were an innova�ve product worth be�ng on – combining energy efficiency and interest rate savings in one. This insight then became the focus of my new financial business: addressing the fundamentally immediate need of ge�ng on (and staying on) the housing ladder, involving the only-too-willing sharing of the widest possible range of data in order to underwrite the loan, and the regula�on to provide reassurance to the borrower that all was suited to their needs. This is the business that I was building at the point that I met Sangeeta.

Following her advice to focus on the UK I was therefore mindful that I had coincidentally been turning my commercial business, Lenderhive, towards more impact-driven, quasi-charitable aims: energy-efficiency, financial coaching and health improvement – all with the strategic aim of delivering be�er value for consumers who have been so systema�cally ripped off by an extrac�ve financial system in collusion with the regulator and government. I had almost been pushing my business in that charitable direc�on anyway, taking a bet that our goodwill would be recognized and that we would – despite being mo�vated by a higher purpose than mere profit – somehow be commercially sustainable in a compe��ve financial market.

that we would be viewed as furthering the interests of the business using the charity’s resources. The two en��es had dis�nct yet overlapping aims, which could, in isola�on, be viewed as their own work. The risk was all on the TV side, as that was where the resources were – but if we were to focus on UK climate inequality, the first place to look was the home as that is where people use - and waste - the most carbon. Bearing in mind that u�lity bills had skyrocketed following the Ukraine invasion, helping people to reduce energy consump�on was, therefore, a way to not just reduce impact on climate change but to improve their personal economy, reducing income wastage, and, by happy consequence, improve their quality of life. The blurring of the lines between the opera�onal focus of the business and the charity was a poten�al risk, but one that I felt, with expert legal and communica�ons advice, we could navigate to clearly delineate our inten�ons and outcomes. We were trying our damnedest to do a good thing, and I viewed the risks as acceptable given that the overall results would, I hoped, be a huge net posi�ve for our charitable objects and commercial objec�ves

Page 4

There was no restric�on on exactly what type of charity we had to be, and the other trustees and I had no immediate wish to get our hands dirty plan�ng trees, or serving at a soup kitchen. We saw our role as purely suppor�ve of other chari�es already on the ground, doing the work that furthered our objects. We wondered aloud about finding projects that furthered our aims, but soon realized that as a new charity our ability to evaluate and document the projects was limited; we were much be�er off simply ac�ng as a founda�on, dispensing our assets like a kind grandad wishing all the best to those chari�es on the front line actually doing the work.

to help people improve their property’s energy efficiency and live a lower-carbon lifestyle; to improve their financial behaviour by receiving coaching on expenditure, thereby improving their financial resilience; and by offering health improvement coaching on diet, exercise and mental wellbeing. We would use data analy�cs, machine learning, and agen�c AI to help deliver these as tailored as possible to the individual person seeking help. This would be our charitable ac�vity, in addi�on to funding our charity partners. We were aiming to develop partnerships with alreadyestablished organisa�ons who might also teach us more about what was needed in the – for lack of be�er word – charity market, or third sector as it’s less-cynically known.

Labour conference. Farms for City Children, Buglife and Rewilding Britain all matched our charitable objects, and because they highlight economic impacts of climate change; we were grateful to find that they were also pleased to work in partnership with us, a fledgling trying to find our feet. In order to cra� an iden�ty for our ‘brand’ I commissioned a film with my fellow nursery Dad Tim’s firm Hey Goose, who took great pains to iden�fy exactly what it was that was different about us - which is where my background as a wealth manager comes in, not to men�on how I actually met John Hill originally and set up Terraverde.

with those films to remain invested a�er his death has been assets of the charity. Terraverde would therefore be suppor�ng not only chari�es company working to achieve its objects. Sangeeta, who was not comfortable for those portraying us as a kind of green financial advisor, decided to step aside. She was sentenced to two accusa�ons that we were greenwashing, as the phones which I had invested the charity's assets into, had minute traces of fossil fuel assets within them - despite the adhering to the UN principles of responsible investment and by being assured by the investment company that they met all requirements. I should have inves�gated at a more granular level of detail because it transpired that the US index funds have no such responsible restric�on and we're, along with the rest of the market, invested in assets which benefited from fossil fuel extrac�on therefore directly accelerated climate change. I had done my job by ensuring the right principles were sought but, arguably, according to the absolute standard of some in the green lobby, had fallen short of their expecta�ons. I therefore, as financial advisor to the charity, sold our holdings in the fund as soon as possible, and le� the assets in cash. Ironically, the ‘responsible’ funds had done rather well, leaving us in a posi�on of spending growth to support our launch rather than dipping into our capital.

At around a similar time, the compliance department for my wealth management business, True Potential (TP), judged my position as being paid to advise the charity of which I was Chair of Trustees on its risk and asset selection as a conflict of interest. As it was a regulated advisory position, which I had always carried out and being paid for by John Hill from the very start, I disagreed. However, their strict interpretation as my regulated entity had to have the final say. As Chair of Trustees, but unpaid in my continued role as regulated financial advisor, I then conducted extensive research on all funds available in the UK, based on the extensive requirements of all of our charitable objects: climate, health and wealth inequality. We were of course remaining bound by our aversion to fossil fuel assets, but in more subtle fashion we also chose to avoid assets which directly preyed on those with less wealth: alcohol and gambling being the two most damaging examples. TV’s assets are now invested in a range of funds which probably adhere to not just our investment preferences, but in direct governance terms, to our charitable objects

Page 5

The �me came to launch in Liverpool, myself and our new colleague Morgan on a stall for the best part of 3 days surrounded by the newly-elected government and neighbours to the LBC radio studio (it was far too big and glamourous to call it a stall). We were joined for a day by Nick, one of our trustees, previously John Hill’s estate solicitor who actually drew up his will and le�er of wishes, and subsequently set up Terraverde itself; and by Lisa Tame, fundraising manager of Farms for City Children. Our other interested party, John’s friend and my cousin Kevan, who had actually introduced him to me in the first place, had resigned by email in June 2023, but was s�ll invited to trustee mee�ngs as a courtesy – as he remained closely involved with the ongoing estate issues as the executor ‘on the ground’ in Tuscany.

In prepara�on for the physical launch we had produced a website se�ng out TV’s story, objec�ves and partnerships. I had foolishly included references to my business Lenderhive’s promo�on of green mortgages, thinking that, as they were also focused on reducing carbon emissions through energy efficiency, it was acceptable to do so. A�er reconsidera�on, I instantly removed all traces of Lenderhive from the TV website.

Despite receiving zero dona�ons, the launch event was a huge success in learning from the charity market and developing rela�onships with our partners. We have since capitalized on this to develop our own charitable proposi�on, to act more like a founda�on suppor�ng other exis�ng chari�es who do work on the ground which supports our objects; while also developing our own digital tools to offer freely as a public good, and for the benefit of our partners. This was based on our feedback from the launch event and our partner engagement, where we realized the depth of inefficiency in the charity sector: the amount spent on human admin, the poor systems and outdated technology, the lack of due diligence and cost-control – all of which detracts from the charity’s ability to actually deliver on its objects, and increases its bo�om line costs as a ra�o of its dona�ons brought in. This was perhaps most clearly underlined when I visited one of Farms for City Children’s 3 farms and spent hours probing how best we can help, in addi�on to financial support. It was brought home to me how a poten�al digital-first approach for TV might be of benefit, when Lisa of FfCC told me how laborious it was to process contribu�ons made with gi� aid, with complex manual processes involving HMRC – whereas we could fairly easily automate that for them.

For our own charitable work we have developed 5 digital projects, all fully costed and ra�onalized in terms of TV’s objects and opera�ons. These are based on LH’s Intellectual Property, freely shared with TV in order to develop its charitable services, with the added academic background of work far beyond LH’s commercial purposes.

  2. tenants what, based on their par�cular property, they can do to improve energy efficiency, by linking the details of that exact property (or, if not on the register, those exactly like it) to a Large Language Model AI tool offering specific, conversa�onal advice. The aim is to not only reduce the amount of energy consumed, but the amount the service users spend on energy as an essen�al u�lity.

  3. The academic basis of this project is world-leading inequali�es expert Professor Sir Michael Marmot’s Cold Homes Report, linking property energy efficiency to both wealth inequality and health outcomes. We have engaged with him via UCL’s Ins�tute of Health Equity.

  4. Donor analy�cs – Internal

  5. To help TV understand the sen�ments and propensity of poten�al donors we have purchased a market research facility from GWI, along with the consultancy to help us develop the targe�ng tools to find them in the specific media channels where they are most recep�ve.

Page 6

3. CaaS (Charity as a Service) - Internal

Plus two other revenue sources:

  1. Founda�on grants: based upon our charitable services and objects we can bid for funding from larger founda�ons, to help bear the cost of our tech development.

  2. of reserves to charitable objects, with fees to be paid to TV Ltd, a new commercial subsidiary of TV. There will then need to be a referral across to me as regulated financial adviser under TP to actually carry out the advice, with a propor�on of fees to be paid to TV Ltd – the profits of which, as a whollyowned subsidiary, would go to TV itself.

  3. revenue to TV.

4. Financial coaching AI tool – External

5. Health improvement tool – External

to localized NHS services, this can be based on a few anonymous demographic indicators or a full medical ques�onnaire – with appropriate accuracy caveats made.

project does not seek to replace any NHS services but through the applica�on of correlated data offer insights into how health and finance interact, leading to insights promp�ng degrees of self-realisa�on that scarce financial resources can be wasted on vices that – although ini�ally enjoyable – lead to harmful a�er-effects; whereas awareness of personal impulses and thereby limi�ng consump�on can lead to be�er health and wellbeing outcomes, with related improved financial benefits. This might be characterized as the virtue of abs�nence and benefit of saving as opposed to spending

Page 7

Our trustee Niamh made it clear that she wished to resign. I was pleased to appoint my friend Karl as trustee in her place, as he also works as a fundraising manager for the Bri�sh Heart Founda�on. The new board of Karl, Nick and myself held our first mee�ng together in December 2024 and all project expenditure was approved. As Chair I made every effort to ensure that my sharing significant IP with TV, to act as the basis for its projects, was documented and understood, prior to recusing myself from any vote on the related project expenditure – the bulk of which was on the digital projects.

Amongst the plans agreed were to con�nue with the exis�ng partners and to develop those proposed with:Young Power in Social Ac�on, a charity in Bangladesh – which, although not part of our launch, I re-proposed as a second year ‘branching out’ exercise to tell a global story; Wildfowl & Wetlands Trust, and Walton Youth Group.

In December we have sought to appoint with retainer agreements:

I considered recusing myself from the trustee vote only proposal to appoin�ng these roles, as they also both have roles in LH – but as TV has an objec�ve need for their services and there is zero direct or indirect benefit to me personally, I didn’t see the need.

Seth Shenbanjo was commissioned to deliver projects 1, 2, 4 & 5. I again considered recusal but I couldn’t see a

that our Commission register details showed us as being late for our accounts filing again, which as Chair I considered a cri�cal risk to our governance. Derrick was appointed to take immediate charge of the finances and prepara�on of accounts by Abacus, who had completed the 2 previous sets filed.

projects in rela�on to our governance, accoun�ng and charitable objects. We are very well set up to consolidate on our ini�al launch phase by building on our partnerships, launching our digital tools and establishing ourselves as a leading new digital charity.

James Armitage Chair of Trustees 8[th] March 2025

Page 8

INDEPENDENT EXAMINER REPORT TERRAVERDE CIO

FOR THE YEAR ENDED 31 DECEMBER 2024

1. Independent Examiner's Report to the Trustees of Terraverde CIO

I report to the Charity trustees on my examination of the accounts of the charity for the year ended 31[st] December 2024.

2. Responsibilities and basis of report

The charity’s trustees are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in

carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

3. Independent examiner's statement

I confirm that I am qualified to undertake the examination because I am a member of the ACCA, which is one of the listed bodies, in section 124 of the Charities Act 2011.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records

  3. the accounts do not comply with the applicable reporting requirements

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Nur Ahmed Chowdhury FCCA

Association of Chartered Certified Accountants

Abacus Partners (Ldn) LLP Unit A, Abbotts Wharf 93 Stainsby Road, London, E14 6JL

Date : 17/03/2025

Page 9

TERRAVERDE CIO

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME & EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2024

Notes
INCOME AND EXPENDITURE
INCOMING RESOURCES
Donations and legacies
Interest receivable
Total
Income
RESOURCES EXPENDED
Charitable Activity Costs
9
Governance and Support
Costs
10
Total Resources Expended
NET INCOME /DEFICIT FOR
THE YEAR
Total gains/(losses) on
capital endowment
Funds brought forward
Funds carried forward
13		 Total 2024
Unrestricted
Restricted
£
£
£
75,421
-
75,421
30
30
75,451
-
75,451
(90,138)
(90,138)
(32,054)
-
(32,054)
(32,054)
(90,138)
(122,192)
43,397
(90,138)
(46,741)
93,942
-
93,942
74,638
1,035,747
1,110,385
211,977
945,609
1,157,586		 Total 2023
£
-
-
5,572
5,572
(5,572)
(58,904)
1,057,053
1,110,385

All the activities of the charity are from continuing operations.

The notes on pages 12 to 14 form part of these financial statements.

Page 10

TERRAVERDE CIO

FIXED ASSETS:
Investments
Current
Assets:
Cash at Bank and in
hand
Creditors:
Amount falling due within one
year
Net Current Assets
Total Net
Assets
Funds
Unrestricted funds
Endowment
Funds
Total Funds		 STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 31 DECEMBER 2024
Total 2024
Note
s
£
£
12
1,169,398
5,373
821
-
11
17,185
2,400
(11,812)
1,157,586
13
211,977
13
945,609
1,157,586		 STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 31 DECEMBER 2024
Total 2024
Note
s
£
£
12
1,169,398
5,373
821
-
11
17,185
2,400
(11,812)
1,157,586
13
211,977
13
945,609
1,157,586		 Total 2023
£
1,111,964
Note
s
12
11
13
13		 £
5,373
17,185 821
(1,579)
1,110,385
74,638
1,035,747
1,110,385

The notes on pages 12 to 14 form part of these financial statements.

The charity dispensed with the requirement for an audit on the grounds that it was established via transfer of proceeds from a special trust, and the proceeds of the endowment do not form a part of the charity’s gross income, thus making the gross income below the threshold to require a statutory audit.

These financial statements were approved by the board on 17[th] March 2025, and are signed on behalf of the board by:

J Armitage (Chair)

Page 11

TERRAVERDE CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

4. General information

The charity is a CIO (charitable incorporated organisation), and is governed by Charity law in England & Wales.

5. Accounting convention

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP '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) (effective 1 January 2019)', and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

6. Going concern

The trustees have taken into account the entity's forecasts and projections for the 12 months from signing these financial statements, in confirming their assessment of going concern.

7. Income Recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

8. Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

9. Support and Governance Costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities in the fulfillment of the main restricted project delivery.

Governance costs include expenditure classified as required in order for the charity to satisfy its regulatory and legal requirements.

10. Funds:

Unrestricted funds are available to the charity for general use. Restricted funds can only be used in accordance with the terms of the activities specified by donors and legacies.

11. Governing document:

Unrestricted funds are available to the charity for general use. Restricted funds can only be used in accordance with the terms of the activities specified by donors and legacies.

Page 12

TERRAVERDE CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

9. CHARITABLE ACTIVITY COSTS:
Grantmaking
Conferences and Event Cost
Content writing & Publication
Research and Analytics
Campaign Design Costs
Technology Implementation
Public Relations		 Unrestricted
Restricted
2024
£
£
£
-
25,000
25,000
-
11,759
11,759
-
3,500
3,500
-
10,032
10,032
-
21,523
21,523
-
8,024
8,024
-
10,300
10,300
90,138
90,138		 2023
£
10
GOVERNANCE AND SUPPORT
COSTS:
Governance Costs:
Legal Fees
Accountancy fees
Support Costs:
Staff training and welfare
Travel and subsistence expenses
Workspace hire
IT networking rep.& maintenance
Insurance
Administrative expenses
Professional fees
Bank Charges
Investment advisory charges
Total Expenses		 Unrestricted
Restricted
2024
£
£
£
3,600
3,600
1,200
1,200
4,800
4,800
140
140
2,035
2,035
9,443
9,443
1,022
1,022
96
96
5,047
5,047
2,903
2,903
60
60
6,508
6,508
27,254
27,254
32,054
32,054		 2023
£
1,200
1,200
96
4278
4,374
5,574

Page 13

TERRAVERDE CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

11
CREDITORS: AMOUNT FALLING DUE WITHIN ONE YEAR
Accruals and deferred income
Other Creditors
12
FIXED ASSET INVESTMENTS:
Market value at 1 Jan
Additions
Charges and disposals
Gains/(losses) on investment
Market value at 31 Dec		 2024
£
2,400
14,785
17,185
2024
£
1,111,964

0
(36,508)
93,942
1,169,398		 2023
£
2,400
2,400
2023
£
1,027,246
0
(34,250)
118,968
1,111,964
13
MOVEMENT IN FUNDS:
As at 1 January
2024
Surplus/(Deficit)
Movement on
investment
As at 31
December 2024		 Unrestricted
Designated
Total
Restricted
Fund
Fund
Unrestricted
Fund
Total
£
£
£
£
£
74,638
-
74,638
1,035,747
1,110,385
43,367
-
43,367
(90,138)
(46,771)
93,942
-
93,942
-
93,942
211,947
-
211,947
945,609
1,157,556

14 TAXATION

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992, to the extent that these are applied to its charitable objectives.

15 EVENTS AFTER THE REPORTING PERIOD

There were no adjusting or non-adjusting events to report after the year-end.

16 RELATED PARTY TRANSACTIONS AND TRANSACTIONS WITH TRUSTEES

There were no related party transactions to report during the year.

17 CONTINGENT ASSETS AND LIABILITIES

There were no contingent assets or liabilities in the year.

Page 14