Resilient Planet, Sustainable Livelihoods
## Social Carbon Foundation Annual Report 2024-25
www.socialcarbon.org
## Chair's Message
"Our journey began decades ago, when I had the privilege of developing Brazil's first carbon project, only the second of its kind globally. That experience instilled in me a deep conviction that climate solutions must be rooted in equity, inclusion, and impact for those most affected."
In 2005, we launched Social Carbon Standard as a pioneering “co-benefits” framework, long before the term was widely recognised. And in 2022, faced with the perilous state of global nature markets, we recognised that co-benefits alone were not enough, and created Social Carbon Foundation to ensure nature-based finance reaches the communities and ecosystems that need it most.
But this is only the beginning. Our ambition is to support the scaling of nature markets from under $1 billion to $43 billion annually by 2040. We are building infrastructure, governance, and partnerships to ensure those markets deliver trust, transparency, and lasting benefits, especially for communities in the Global South.
We are proud of our roots. And we are ready to lead the next phase of climate and biodiversity solutions.
I am incredibly proud of what we have achieved in 2024/25. The Foundation has now developed nine robust Nature-based-Solution methodologies, deployed a blockchain-based registry, and created an integrated certification system for offsetting, insetting, and biodiversity. Our project pipeline spans over 5 million hectares, positively impacting more than 250,000 people, entirely self-funded to date. We are working with First Nation conservation leaders, supporting over 10,000 smallholder farmers through regenerative agriculture, and restoring ecosystems with over 200 native species.
Dr Divaldo Rezende - Chairman of the Board and Co-Founder
## Our Mission:
Catalysing scalable Nature-based Solutions to mitigate climate change, enhance biodiversity, and support sustainable livelihoods, through high integrity standards and innovation.
2
1
## CEO's Message
While this is Social Carbon Foundation’s third annual report, it is the first as a registered charity in England, which is one of the highlights of the 2024/25 year.
Other 2024/25 highlights include:
- Launched Peatland Restoration Methodology enabling the calculation of GHG emission reductions from rewetting drained peatlands in temperate agricultural areas.
- Launched Nature Stewardship Framework for Public Consultation. An innovative financial mechanism that rewards the protection, restoration, and sustainable management of ecosystems, combining the biodiversity and social impacts of nature-based solutions into a standardised credit.
• Launched Insetting Framework for Public Consultation. Reducing Scope 3 emissions by transforming supply chain practices, leveraging nature-based solutions like agroforestry, soil carbon sequestration, and regenerative agriculture, while creating co-benefits for communities, biodiversity, and long-term resilience.
- Published ARR methodology (SCM00009), replacing previously accepted CDM ARR methodologies.
- Presented at EU Carbon Farming Summit in Dublin, hosting and presenting in sessions on the potential of insetting, the role of AI and technology in carbon markets and the importance of peatlands.
- Portal launched saving significant time and money for us and our partners, digitising all methodologies and the Standard, managing audits and managing public consultations.
- Sunset our Cookstove Methodology as part of our ongoing effort to streamline and modernise our methodology portfolio.
- Recruited Chief Operating Officer and strengthened Advisory Board, growing and strengthening Social Carbon Foundation’s leadership.
Social Carbon Foundation’s approach is grounded in three focus areas that set us apart.
First, co-benefits are mandatory, not optional, ensuring every project we certify delivers real, measurable value for climate, biodiversity and local people.
Second, automation underpins all our processes, which levels the playing field for smallholders and communityled projects, and cuts cost, time, and risk for all, allowing projects to reach certification up to 12 months faster than legacy approaches.
Third, we prioritise agility and innovation, building integrated tools that unlock finance across offsetting, insetting, and biodiversity markets through one coherent platform. These focus areas are the foundation of everything we do.
The impact is real. Our first 14 live projects will, over their lifetime, remove more than 9 million tCO₂e, restore/conserve over 1.5 million hectares, and directly support over 250,000 people. Our pipeline includes 40+ projects across five continents, which together are projected to conserve or restore more than 5 million hectares, avoid/remove over 40 million tCO₂e, and improve the lives of over 1 million people.
None of this would be possible without the commitment of our team, our Board of Trustees, our expert Advisory Board, the many volunteers who’ve shared their time and talent, the project developers who’ve placed their trust in us, and the communities at the heart of this work.
The Social Carbon Foundation team believe that meaningful impact is only possible through strong collaboration and trusted partnerships. If you share our commitment to high-integrity, inclusive solutions, we warmly invite you to reach out and work with us.
Mike Davies - Chief Executive Officer
4
3
## Global Impact
By the end of the 2024/25 period, 14 projects had successfully completed registration under the Social Carbon Standard—marking a major milestone in the growth of our certification ecosystem. During this period, we also developed a robust and rapidly expanding pipeline of over 40 nature-based solution (NbS) projects. These initiatives span a diverse range of interventions, including conservation, grassland restoration, peatland restoration, and afforestation/reforestation, collectively covering more than 5 million hectares of vital ecosystems.
This traction reflects our emergence as a trusted platform for locally developed and community-led NbS initiatives. Unlike top-down models, our
approach prioritizes local knowledge, participation, and equity, enabling project developers to retain agency and ownership. As a result, our credibility is being built from the ground up, most of our growth now originates from organic referrals, with developers increasingly advocating for our Standard over legacy accreditation schemes.
This community-driven momentum reaffirms our belief that integrity, inclusion, and innovation are the cornerstones of a resilient and scalable nature market.
**----- Start of picture text -----**
No. projects per
country
7
1
**----- End of picture text -----**
## Current Project Distribution
Unterstützt von Bing
**----- Start of picture text -----**
Current Projects
Pipeline
**----- End of picture text -----**
## Pipeline Project Distribution
**----- Start of picture text -----**
No. projects per
country
19
1
Powered by Bing
5 © Australian Bureau of Statistics, GeoNames, Microsoft, Navinfo, Open Places, OpenStreetMap, Overture Maps Fundation, TomTom, Zenrin 6
**----- End of picture text -----**
## Insetting
## From Offsetting to an Integrated Nature Standard
In 2024/25, the Social Carbon Foundation advanced from its roots as a co-benefits-based offsetting standard to a fully integrated certification system for nature-based solutions (NbS). Recognizing that nature doesn’t operate in silos, we evolved our approach to reflect the real-world complexity of climate, ecosystems, and communities. The enhanced SOCIALCARBON Standard now offers three certification pathways: offsetting, insetting, and Nature Stewardship. This modular framework allows projects to align with their specific context, whether generating carbon credits, reducing Scope 3 emissions through value chain interventions, or earning biodiversity credits for ecosystem restoration and protection.
This integrated model offers practical benefits. It reduces risk by enabling flexible asset strategies as projects evolve, it improves resilience in volatile policy and market environments, and it streamlines certification for diverse initiatives under one umbrella. In 2024/25, we launched both the Insetting and Nature Stewardship frameworks for public consultation, laying the foundation for Version 7.0 of the
SOCIALCARBON Standard, set for release in early 2025/26. This unified, multi-pathway structure is entirely unique in the market, positioning the Foundation at the forefront of scalable, high-integrity nature solutions.
Scope 3 value chain decarbonisation through direct supply chain interventions
Offsetting Voluntary Carbon Market **Nature[3]** credits for external emission
compensation
Nature Stewardship Biodiversity credits supporting ecosystem conservation and restoration
8
7
## Pioneering Insetting
In 2024/25, the Social Carbon Foundation launched its Insetting Framework for public consultation, marking a significant step forward in enabling companies to decarbonize their value chains through nature-based solutions. Building on leading initiatives such as the GHG Protocol, the Value Change Initiative, and other insetting guidance, our approach addresses key gaps that have historically limited access and scalability, particularly for the Forestry, Land Use, and Agriculture (FLAG) sectors. The framework is designed to integrate
sequestration practices that directly improve supply chain performance while delivering measurable climate benefits. These projects also generate tangible co-benefits for communities, biodiversity, and longterm ecosystem resilience. Since its release, the
framework has already attracted significant interest, with early projects identified across multiple regions. These projects are expected to complete registration in 2025/26.
seamlessly with the SOCIALCARBON Standard, providing practical guidance and credible certification for interventions that reduce Scope 3 emissions from within a company’s own supply chain.
Did you know? Over 90% of food sector emissions come from Scope 3 sources, creating vast opportunities for insetting through agricultural and forestry supply chains.
Insetting projects differ from traditional offsets by
focusing on internal transformation—implementing regenerative agriculture, agroforestry, and soil carbon
10
9
## Unlocking Value Beyond Carbon: Nature Stewardship
In 2024/25, the Social Carbon Foundation launched the Nature Stewardship Credit (NSC) Framework for public consultation, a pioneering step toward monetizing the full spectrum of benefits delivered by nature-based solutions. Codeveloped with Natural State, this innovative framework creates a standardized mechanism to reward the protection, restoration, and sustainable management of ecosystems, while capturing the social and ecological value that lies beyond carbon alone. By integrating three core indices: Biodiversity, Socio-Economic, and Governance, the NSC framework offers a robust, transparent method for quantifying and verifying the broader impacts of nature-based projects.
The NSC is designed with flexibility in mind to support diverse project strategies and funding models. Projects may issue standalone NSCs, stack them with carbon credits for multiple
revenue streams, or use the framework to certify co-benefits alongside other crediting schemes. This adaptability not only enables access to emerging biodiversity markets, but also helps investors, buyers, and communities recognize and reward the full value of ecosystem stewardship. As global demand grows for high-integrity, multi-
dimensional environmental assets, the NSC offers a unique and credible pathway to scale inclusive, nature-positive finance.
Over 5 pilot projects have been identified and are expected to launch in 2025/26.
12
11
## Financial Impact & Growth
**----- Start of picture text -----**
Income £263k
**----- End of picture text -----**
**----- Start of picture text -----**
Services
Donations
Interest
Executive Team
Contribution*
**----- End of picture text -----**
>120,000 Individuals supported
Supporting communities across three continents through sustainable development
1.2M
Expenditure £243k
**----- Start of picture text -----**
Contractors
Travelling expenses
Software costs
Support costs
Governance costs
Executive Team
Contribution*
**----- End of picture text -----**
Hectares
Of ecosystems conserved or restored through our pipeline projects
18,270 tCO₂e
Removed/Avoided
14
13
*An estimated £187,000 was contributed by the executive team, based on market salaries.
## Board of Trustees
Dr Divaldo Rezende
Glenn Morley
Founder, Trustee & Chairman
Trustee
Founder of the Social Carbon Standard. Over 20 years experience in field, over 50 community positive carbon projects delivered and over 10,000 acres of amazon rainforest reforested.
Responsible climate solution advocate. Experienced climate NGO builder (built leading European carbon removal policy advocate), advisor to founders, boards and funders of climate game-changers.
## Paulo Gomes
## Diane Duncan
Trustee
Trustee
Former Executive Director at the World Bank. Paulo advises governments and businesses on strategic investments and sustainable development.
Experienced UK charity trustee. Ocean ecosystems expert.
## Dr Amadeu Soares
## Trustee
Professor and Head of Biology at the University of Aveiro, Portugal. Expert on Ecotoxicology and Functional Biodiversity.
## Executive Team
## Mike Davies
## Chief Executive Officer
Mike has led the transition of the SOCIALCARBON Standard from a Co-Benefit Standard to a full Standard focused on Nature-Based Solutions. With deep knowledge across the value chain of the market from the registry technology, to project development and methodologies design / development, he ensures the SOCIALCARBON Standard aligns with best practices, while remaining practical and scalable.
## Ian Short
## Chief Operating Officer
Ian has spent the last dozen years leading organisations focused on innovation for sustainable/smart cities, urban development and climate change. Before this he worked in senior roles in finance in Wellington, London and New York.
Previously, Ian was CEO of Climate-KIC, the world’s largest climate change innovation partnership with 18 offices across Europe. Prior to this Ian helped establish and lead a London based not-for-profit delivering sustainable city pilots and an urban development corporation leading the regeneration of east London.
## Dr Hongjun Wang*
## Chief Science Officer
Hongjun has over 20 years of experience leading research and development in both academia and industry. He is a seasoned scientist specializing in soil biogeochemistry, greenhouse gas emissions, regenerative agriculture, carbon farming, ecosystem restoration, and non-point source pollution control. Dr. Wang has published more than 40 peerreviewed papers, including three in Nature research journals (Google Scholar).
16
15
Charlty reglstratlon number 1210037 (England and Wales)
SOCIAL CARBON FOUNDATION
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2025
SOCIAL CARBON FOUNDATION
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Dr Davaldo Rez8nde
Glenn Morley
Paulo Gomes
Diane Duncan
DrAmadou Soares
{Appoinled 16 Seplernber 20241
(Appointed 16 Seplernber 20241
(Appointed 16 September 20241
{Appointed 16 September 20241
(Appointed 16 September 20241
Charlly number (England and Wales)
1210037
Prlnclpal address
Suile RA01
195 Wood Streel
London
E17 3NU
Webslte
www,soclalcarbon.org
Independent examlner
BK Plus Audit Limited
Oaklngham House
Frederick Place
High WycombB
Buckinghamshire
HP11 1JU
SOCIAL CARBON FOUNDATION
CONTENTS
Page
Trust88s' report
Stalemenl of INslees' responsibllllies
Independ8nl examinels report
Slalomenl of finanEial aclivilies
Balance sheet
Notes lo the financial slalements
8-12
SOCIAL CARBON FOUNDATION
TRUSTEES. REPORT
FOR THE PERIOD ENDED 31 MARCH 2025
The Iwslees pres6nl thtrir anntsal report and financial slalemenls for the period anded 31 Maich 2025.
The financial statements have been prepared in accordance with the accounting pollcies sel out in note 1 to the
financial stalemenls and comply with the charity's governing documenl, the Charities Act 2011, FRS 102 'The
Financial Reporting S13ndard applicable in the UK and Republic ol Ireland" and tha Charities SORP 'Accounling
and Reportino by Charllles.. Slalement ol Recommended Praclice applicable lo Gh8rS1ie8 preparing their accounts in
accordance with the Financial Reporting Slandard applicable th8 UK and Republic of Ireland IFRS 1021"
Objectlves and actlvltles
Vision., A thriving, resilient planel where nalure and humanity co-exlsl in harn70ny wtlh cllm81¢ change millgaled,
biodlversily flourishing and su$lainable livelihoods for all.
Mission= Calalysing scalable nalure-based-solullons lo miligale ¢llmate change, enhance biodlversity, 8nd support
sustainable livelihoods, Ihrough high Inlegrlty standards and innovation,
Key Aclivilie5',
1. Dévalop High-lnlegrily Standards and Methodologies
2. Project Certificallon
3. Innovallon in NalLTrre Markel SDlulions
4. Capacity Bullding and System Change
Achi8v8mènl8 and performanc8
By 31 March 2025, Social Carbon Foundation had.,
Oeveloped g live Nalure-based Solullon melhodol<]9ies-. conseN8tion
Brezil.. conservation
rest of world.,
afforÈslallon
South Africa., afforeslalion
rest of world., pealland resloralion,. iegenerative agrlcvlluro.,
suslalnable rice cullivalion- mangrove resloialion.. and harmlul algae bloom Irealmenl.
Reli18d lh8 cookslove methodology- (tue lo concerns related to Ihe robustness of cllmale claims related lo the
project Iype.
Developed a new niarkel mechanism. Nalure Slew8rd5hip Credits, an innovative approach that rewards the
protection, resloralion. and suslainable management of ecosystems.
Developed a new market mechanism, Insetting Ifamework, Ihal focuses on a company's scope 3 value.chain
decarbonisalion, a more fobusl approach than offsets.
13 live projects.. Based in Brazil, India, Zambia, South Afrlca, US and Canada- that will dellver 120k indlviduals
positively impacted, 850k heclaies conserved or reslored 8nd 1.8m IC02e removed from thé atmosphere.
Innovative use of block¢haln, Al, and digital platforms for cerilflcalion and regislfalion. allowing projÉcts lo
achleve certification vp lo 12 months faster Ihan under legacy slandards.
By 2030, Social Carbon Found81ion aims lo have our Nalure-based Solution melhodologies applied 31 sc818,
contributing signilicanlly to the proleelion of 300/0 of the wortrl's lands, frèshwalers, and oceans. and helping lo
address Ihè dual global crises ol biodiversity loss and climate change.
SOCIAL CARBON FOUNDATION
TRUSTEES. REPORT {CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
Slructure, Governance and Managemènt
Social Carbon Foundallon Is 8 reglslered UK charlty wllh the charity number 1210037 and a company number ol
CE037535.
The Board of Trustees is responslble for slralegy and tsverslghl. Trustees are..
1. Dr Divzldo Rezende- Co-chair and Co-Founder
2. Glenn Morley- Co-chair
3. Diane Duncan
4. Paulo Gomes
5. DrAmadeu Soares
The Advlsory Board brings together a group ol Independenl. world.class experts whose sclenllfic and market
expertise knowledge and perspectives complement the expertise of Soclal Carbon Foundallon's Tiuslèes and staff.
The Trustees wish lo acknoedge the invaluable contributions ol volunteers who have geneTously given Ihelr Ilme
and 8XPertise lo support Ihe development of our methodologies. advisory fLinclions, ancl outreach efforts. Thèir
Involv8menl, p8rfi¢ul8rfy in sciÉnlific, technical, and governanc8 roles, has significar)Ily slrenglhened the
Foundation's ¢apacSty durlng Ils early growth phase.
Tran8ltlon to Charltable Incorporated Orgynlsallon
Social C8rbon Foundation was originally 8s18bli$hed as 8 company (Company No. 14123164) in 2022 2nd operated
in that capacity until il was formally closed January 2025. On 16 September 2024, the organisalion was
registered as a Chari18ble Incorporal8d Organis81ion {CIOI with th6 Charity Commission for England and Wales
(Charity No. 12065671. From that dale. all operations, ass&ls, and activities were Iransilioned lo the newly formed
charilable enlily. This include5 th8 donation of £1 S,998 in cash.
Flnanclal revlew
Social Carbon Foundation has a sus18inable business model based on certification and issuance fees from proje¢ls.
Grants are sought lo support the developmenl of innovative nature-based Tnechanisms and Io scale lasler than
oroanic growih will allow, given the urgent need for 8¢1ion.
SoGial Carbon Foundation's eslablishmenl phase from 2022 10 2024 was self-fLfnded by the co-found8rs and
volunteers. Fundraising efforts from lale 2024 have been mixed. based primarity on the Foundation's limited Irack
record and the heightened volatility ol Climate and nature markets.
Th8 2024125 yaar had revenuè of £75,265, axpensès of £56,211, a surplus of £19,054 and nel ass8ls of £19,054.
The projection for Ihe 2025126 year is revenue of £646.000. expenses of £556.000. a surplus 01 £90.000 and n81
888els of £109,OCkO.
Rèservés Poll¢y
Social Carbon Foundallon's Raserves Pollcy Is lo maintain unreslrlcled reserves eqijivalenl lo al leasl Ihree months
of core oper81ional 8xp8ndilure. This level will incre8s6 as Ihe organisalion grows and has further cap&cily, il will be
reviewed annually as a minimum.
Rlsk Management
Th6 Trustees are responsible for ensuring that effecliva risk management systems afe in place lo ¥Jentify, assess,
and manage Ihe major risks faced by the ¢haMly. A rlsk regisler is maintained and reviewed regular lo monitor
slraleglc, operational, financlal, and repulalional rlsks. Millgalion slralegiès are in place for key risks, includlng
financial suslalngbilily, regulatory changes In global carbon mark8ls, data security, and repulalional inlegrily.
SOCIAL CARBON FOUNDATION
TRUSTEES. REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
Publlc Benefit
The Truslaeg tonl+rm that Ih&y have complied with Ihelr duly under 8eclion 17 of the Charilies Act 2011 to have due
regard to the Charity Commission's g¢Jidance on pub5ic benefit. In shaplng the Foundalion's aims and delivering ils
activities, the Trusl8es ensure that the Social Carbon Foundalion's work provides clear public beneflt by promoting
climale change millgallon, biodiversity conservallon, and suslaSnable livelihoods through the development and
certification of high-inlegrily nalure.based solutions. Th8 Foundalion priorillses Inclusive, science-based approaches
that support lottal communilies, parlicularly in Ihe Global South, and contribute lo lOnterM environmental and
SOC121 outcomes,
The trusleès, report was approved by the Board ol Trustees.
Diuado Re/i£nd6
' 46987KJ8-4LKZ93VJ
Trustee
Dale..
SOCIAL CARBON FOUNDATION
STATEMENT OF TRUSTEES. RESPONSIBILITIES
FOR THE PERIOD ENDED 31 MARCH 2025
Th8 Iruslees are responsible for preparing Ihe Trustees, Report and the financi81 statements in accoidance with
applicable law and United Kingdom Accounting Standards (Uniled Kingdom Generally Accepted Accounling
Praclicel.
The law applicable lo Gharilies in England and Wales requires Ihe trustèes lo prepare financial slalements for each
financial p8riod which giv8 a true and fair view of Ihe slate of 8ffairs ol the Charity and of the incoming resources
and applicallon of resources of the charity for that period.
In preparin9 these financial sla18menls, the Irusl88s are required to..
S61ecl suitable accounting polici8s and then apply Ihem consistenily..
observe the melhods and principles ir* the Charities SORP.
make judgements and eslimales that are reasonable and pwdent-
slate whether applicable accounling standards have bgen followed. subject lo any material departuras dlsclosed
and explained in the financial slatem8nts'. and
prepare th8 financial stal8menls on Ihe going concern ba818 unless il is inappropriate lo presum8 Ihal the charity
will conllnue in operation.
The trustees are responsible for keepino sufficient accounting records that disclose with reasonable accuracy al any
lima the financial position of the charity and enable them lo ensur8 Ihal the financial stal8ments comply with Iho
Charities Act 2011. the Charily (Accourils and Reports) Regulations 2008 and the provisions of the trust deed. They
are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the
prevenlion and deleclion of fraud and other irfegularilies.
SOCIAL CARBON FOUNDATION
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF SOCIAL CARBON FOUNDATION
I report to thè Iwslees on rny examination ol the financial slalemenls of Social Carbon Foundation Ilhe charity) for
Ihe period ended 31 March 2025,
Re8ponsibllltles and basls of report
As Ihe Iwsle6s of the chaiity you are responsible lor the prepardlion ol the fin8ne*81 slalements in accordance with
the requirements of the Charilies Act 2011.
Having satisfied myself Ihal Ihe financlal slalemenls of Ihe chBrily are not required lo be audited under Part 16 01
the Companies Acl 2006 and are eligible for indap&ndenl examination, I report in respect ol my examinal'on ol the
charitys fIancIal sl8lemenls carried out under section 145 of the Charities Act 2011. In carrying out my ex81Trinallon
I have followed the Dir8¢lions glven by the Charity Commission under section 14515llbl of the Charities Act 2011.
Independent axamlnerfs statement
I havè completed my examination. I confirm th81 no mallers have Come lo my allenllon in connection wlh the
examinallon 9iving me causè lo believe that in any m81eri81 respect.,
1. accounling records were not kept in respect of Ihe charity as required by secllan 130 of the Charilies
Ac12011.
2. the financial slalemen19 do not accord with those records
3. Ihe financial slalemenls do not comply with the applicable rtsquiremenls concerning the forTh and
conlenl of financial statements Sel out in the Charities {Aceounls and Reports) Regulallons 2008 Otr
than any requirement that the financial slalemenls give a true and fair view, which is not 8 maller
considered as part of an independent examination,. or
4. the finanGial slalemenls have nol bean prepared in accordance with the rnelhods and principals of the
Slalement of Rgcommended PracliGe lor accounting and reporting by charilies applicable to Gharilles
preparing Iheir accounts IT) accordance with the Financial Reportlng Standard applicable in the UK
and Republic of IielaRd IFRS 1021.
I have no concems and have come aoross fto olher matters in conneGlion with the examination to which allenllon
should be drawn in Ihls roport in order lo enable a prop8r understanding of th8 financial slalemenls to be leached.
Usè of my report
This report is made solely lo the Trustees in aGcordance with section 145 of Charllies Act 2011. My independonl
examination has been undertaken so that I mighl sl818 lo the Truslees those malleis l am required to slate lo Ih8m
in an Independent Examinorfs report and for no olher purposes. To the fullest exlenl permilled by law, I do not
a¢Gepl or assume responsibility lo aiiyona other than the Trustees for my independent examination or this report.
Davld Hynes
For and behall ol BK Plus Audit Limited
Oakingham House. Frederick Place, High Wycombe, Bucklnghafnshire, HP11 1JU
Datè..
..1.1./1.2.5
SOCIAL CARBON FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOfvIE AND EXPENDITURE ACCOUNT
FOR THE PERIOD ENDED 31 MARCH 2025
Unrfrstrlcted
funds
2025
Notes
Income from:
Donalions and legacies
Chariiable activities
Investments
15,998
59,128
139
Total Incom8
75,265
Expgndlture on:
Charitable aclivilles
56.211
Total expendlluro
56.211
Net Income and movement In funds
19.054
Reconclllatlon of funds-
Fund balances al 16 September 2024
Fund balancas at 31 March 2025
19,054
The slalemenl of financi81 activities includes all galns and losses recx)gnlsed In the period. All in¢om8 and
expendilur8 derlv8 from Gonlinuing aclivilles.
SOCIAL CARBON FOUNDATION
BALANCE SHEET
ASAT31 MARCH 2025
2025
Notes
Current assets
Cash al bank hand
22,554
Credllors., amounts falllng due within on8 year
11
13.500)
Net current assets
19,054
The funds of th8 charlly
Unresldcled funds
19,054
19,054
The finanGial slalem8nls were approved by the trustees on
16th.Ju!y 2025
46987KJ8-4LKZ93VJ
Trustèe
SOCIAL CARBON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2025
Accountlng pollcles
Charlly Informatlon
Social Carbon Foundation is a charlly incorporaled in England and W81os. The registered officos cw) be found
on the legal and 8dminislrallve page.
1.1 Reporting period
The charity was formed c>n 16 September 2024 and Ihese first financial 8lalem&nls cover the p8rtod from
formation through lo 31 March 2025.
1,2 Accountlno conventlon
The financial slalemenls have been prepared in accordance with Ihe chatily's governing document, Ihe
Charities Act 2011. FRS 102 °Th8 Financial Reporting Standard applicable in the UK 8nd Republic of l¥eland'
8nd the Charilies SORP Accounting and Reporting by Ch8rilies: Slalemenl of Recommended Practice
8pplicable lo charilies preparing Ihelr accounts in 2cc/)rdance with Ihe Financial Reporting Standard
8pplicabl6 in the UK and Republic of Ir81and IFRS 1021" The charity Is a Public Benefit Enlily As defined by
FRS 102.
The charSly has t8kon advantage of the provlslons In Ihe SORP for charllles not lo preFiare a stalanenl ol
cash fiows.
The financial slalemenls are prepared in sleTling, which is the functional Currency of the ch8rily. Monetary
am(>unls in these financial slalemenis are rounded lo Ihe nea$1 £.
The finane181 $18lemenls have been prepared under the hislorical cost convenllon. The principal accounting
policies adopted are sel 01 below.
1.3 Going concern
Al the lime of approving the financial slalemenls. the Iruslee5 have a reasonable expectation that the charity
hag 8dèquatè resources lo continue In operational existence for th8 foleseeable fulure. Thus lh8 Irlee$
conllnuts lo adopt the going concern basis of accounting in preparlng the financial slalemenls.
1.4 Charllable funds
Unrestricted funds ale avai18ble for use at Ihe discretion of th& Iruslees in furtherance of their charilable
objectives.
All funds held al Ihe Balance Sheet dale were deemed by the Ifuslees lo be unreslricled.
1.5 Income
Incomo is recognised when the charity is leg811y enlilled lo il af18r any performance condillons hav& been mel,
the amounts can be measured rellably, and11 is probable that Income wlll be received.
Cash donalions are recogniseLt on recelpl. Other donations aTe re¢ognised once the charity has been notified
of Ihe donalion. unless performance conditions require deferr81 of the amount. Income lax recoverable Sn
relalion lo donations received under GiftAid or deeds Df covenant is recognised al the lime ol the donation.
Legades are recognlsed (In rècèipt or otherwise if the charfly has been nDiified of an Impendlng di8tribullon,
the amount Is known. and recBlpl ts expacted. If the amount Is rhol known, the legacy is treated as a
conling8nl 8SS8t.
SOCIAL CARBON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
Accountlng pollcle5
{Contlnued}
1.6 Expendlture
Expenditur& is rè¢ogn6sed once there Ss a legal or conslmcllve obllgalion to transfer economlc benefit to 8
Ihird paty, il is probable that a transfer ol economic benefits wlll be required In setll8rnènl, and the amount of
Ihe obligation Can be measured reliBbly.
Expendllure is classlfled by activity. Thè costs of each aclivily are made up of the lolal of dIr1 costs and
shared costs, Including 8upport costs involved in uridertaking aatth acllvlty. Direct costs alldbul8ble lo a slngle
activity are allocaled direclly lo Ihat aclivily. Sha¥ed costs which contribute lo more Ih8n one activity and
support costs which are not allributable lo a single activity are apporlioned between those aciivilhgs on a basis
consislenl with tha use of resources. Centra1 staff costs are allocated on the basis of tim8 gpenl, and
depreciation charges are allocalecl on the portion of the asset's use.
1.7 C8sh and cash 8qulval&nls
Cash and cash equivalents include cash in hand. deposits held al call wilh banks, other short-lerm liquld
investments with original malurilles ol Ihree months or lèss, and bank overdrafts. Bank overdralls are shown
within borrowlngs in current Ilabllill&s.
8aslc flnanclal assgts
Basic financial assets, which include debtors and cash and bank ba18nces, are initially measured al
Iransacllon pl1 including tranga¢llon cosls and are subsequently carried al 8mortlsed cost using the effective
inleresl method unless the arrang8menl conslilutès a financing Iransa¢llon, where the Iransaclion is
measuréd al the present value of the future reip1S discounted al a markèt ratè of Inleiesl. Financial assets
classified as receivable within Dnè year are not amortlsed.
BBslc financlal Ilabllltlès
Basic financlal liabilities, Including aredilors and bank loans are Inlllally recognlsed al transaction price unl8SS
the arrangèment constilutes 2 financlng transactlon, whère the debt instrument Is measured al the present
value of the lulure payments discounted al a mat*el ralo of interest. Financial liabilities classified as payable
within one year are not amortiS8d,
Debt instrumen18 are Subsequenlly c8rTied al amotlisEd cost, using Ihe effectiv6 inleresl iale melh(K5.
Trade creditors are obligations to pay lor goods or seNices that have been acquired in the ordinary course ol
operalions froffl suppliers. Amounls payable are classified as current liabilities if payment Is due within one
year or less. If not, Ihey are presented as non.ciJrrent liabililies. Trade credi10¥s ale r8cognised initially al
IFans2clion price and subsequently me8sured al arnortised Gosl using the effective inter@s1 melhod.
Derecognltion of flnoncl81 liabilllles
Financial liabililles are derecognised when the charit*s conlraclual obligations expirè or are discharged or
cancelled.
1.8 Employee beneflts
The cosl of any un4Jsed ho1iclay enlillemenl Is recL)gnised in th8 period in which the employee's seryices are
received,
Terrninalion benefits are recognised immediately as an expense when Ihe charity is demonstrably committed
lo lerminale Ihe employment of an employee or Io Pfovide tem)in4lion benof51s.
SOCIAL CARBON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
Critical accountlng estlmates and ludgements
In the 2pplicalion Df the charrvs accounting pollcies, the Iruslees are requir8d lo make judgemenls, eslimales
and assumptions about the carrying amount of assels and liabili118s that are not readily apparent from other
souices. The estimates and associated assumptions are based on historical experience and oth8r laclors that
are considered lo be relevant. Actual results may differ from these eslSmales.
Thè eslimales and underlying assumptions are reviewed on an ongoing basis. Revislons lo accounllng
estimates aTe recognis6d in th6 period in which the eslim8le is revised where the revision affects only that
period, or in the peTlod of the revision and future periods where the revision aff8Cts both cuirenl and fulure
periods.
Income from donations and legacles
Unrestrlcted
funds
2025
Donations and gifts
15.998
Income from charltablo actlvltles
Unrestricted
funds
2025
SeNlces
Project fees
59,128
Incom¥ from Inv&stmants
Unrestrlcted
fLtnds
2025
Interesl re1vable
139
10.
SOCIAL CARBON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
Expendilure on charltable actlvllies
2025
Direct cos18
Contractors
Tr8velling expenses
Soflwarè costs
32,400
10,394
2,360
45,154
Share of support and governance costs {seÈ note 71
Support
Govgynance
367
10,690
56,211
Analysls by fund
Unrestricted funds
56,211
Support ¢08ts allocated to acllvlti8s
2025
Sltpport cosls
Governance costs
367
10,690
11,057
Analysed between..
Bank charges
Foreign exchange
Accounting lees
Legal fèes
302
65
3,860
6.830
11,057
Trustees
None of the l¥uslees lor any persons connecled with thèm) received any remunerallon or ben8fi1s from the
charity during th8 perlod.
11
SOCIAL CARBON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
Employees
Tho average monthly number of employees durir)g th8 Period was:
2025
Numbor
There were no employees whose annual remuneration was more than £60,000.
Romuneration of key management personnel
The key management personnel recewed no ramunarBtion during th8 period.
10 Taxatlon
The charily is exempl from 18xalion on its activili8s bècaus8 811 its income 1$ 8ppli8d lor cha¥itabl8 purposes.
11 Credltors: amounts falllng du8 wllhln one year
2025
Accruals and deferred income
3,500
12 Unrestricted funds
The unroslricled funds of th8 charity comprise Ihe unexpended balances of donalions. 9ifts and projecl fees
whlch are nol subject lo specific CndItIonS by donors 2nd grantors as lo how they may be used.
At16
Septembpr
2024
In¢omlng
resource8
Re$our¢es At 31 March
exponded
2025
General funds
75.265
{56,211)
19,054
13 Related party transactlons
There were no disclosable r8181frd party Iransactions duiing thé pÉriod l - non81.
12
Charlty reglstratlon number 1210037 (England and Wales)
SOCIAL CARBON FOUNDATION
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2025
SOCIAL CARBON FOUNDATION
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Dr Davaldo Rez8nde
Glenn Morley
Paulo Gomes
Diane Duncan
DrAmadou Soares
{Appoinled 16 Seplernber 20241
(Appointed 16 Seplernber 20241
(Appointed 16 September 20241
{Appointed 16 September 20241
(Appointed 16 September 20241
Charlly number (England and Wales)
1210037
Prlnclpal address
Suile RA01
195 Wood Streel
London
E17 3NU
Webslte
www,soclalcarbon.org
Independent examlner
BK Plus Audit Limited
Oaklngham House
Frederick Place
High WycombB
Buckinghamshire
HP11 1JU
SOCIAL CARBON FOUNDATION
CONTENTS
Page
Trust88s' report
Stalemenl of INslees' responsibllllies
Independ8nl examinels report
Slalomenl of finanEial aclivilies
Balance sheet
Notes lo the financial slalements
8-12
SOCIAL CARBON FOUNDATION
TRUSTEES. REPORT
FOR THE PERIOD ENDED 31 MARCH 2025
The Iwslees pres6nl thtrir anntsal report and financial slalemenls for the period anded 31 Maich 2025.
The financial statements have been prepared in accordance with the accounting pollcies sel out in note 1 to the
financial stalemenls and comply with the charity's governing documenl, the Charities Act 2011, FRS 102 'The
Financial Reporting S13ndard applicable in the UK and Republic ol Ireland" and tha Charities SORP 'Accounling
and Reportino by Charllles.. Slalement ol Recommended Praclice applicable lo Gh8rS1ie8 preparing their accounts in
accordance with the Financial Reporting Slandard applicable th8 UK and Republic of Ireland IFRS 1021"
Objectlves and actlvltles
Vision., A thriving, resilient planel where nalure and humanity co-exlsl in harn70ny wtlh cllm81¢ change millgaled,
biodlversily flourishing and su$lainable livelihoods for all.
Mission= Calalysing scalable nalure-based-solullons lo miligale ¢llmate change, enhance biodlversity, 8nd support
sustainable livelihoods, Ihrough high Inlegrlty standards and innovation,
Key Aclivilie5',
1. Dévalop High-lnlegrily Standards and Methodologies
2. Project Certificallon
3. Innovallon in NalLTrre Markel SDlulions
4. Capacity Bullding and System Change
Achi8v8mènl8 and performanc8
By 31 March 2025, Social Carbon Foundation had.,
Oeveloped g live Nalure-based Solullon melhodol<]9ies-. conseN8tion
Brezil.. conservation
rest of world.,
afforÈslallon
South Africa., afforeslalion
rest of world., pealland resloralion,. iegenerative agrlcvlluro.,
suslalnable rice cullivalion- mangrove resloialion.. and harmlul algae bloom Irealmenl.
Reli18d lh8 cookslove methodology- (tue lo concerns related to Ihe robustness of cllmale claims related lo the
project Iype.
Developed a new niarkel mechanism. Nalure Slew8rd5hip Credits, an innovative approach that rewards the
protection, resloralion. and suslainable management of ecosystems.
Developed a new market mechanism, Insetting Ifamework, Ihal focuses on a company's scope 3 value.chain
decarbonisalion, a more fobusl approach than offsets.
13 live projects.. Based in Brazil, India, Zambia, South Afrlca, US and Canada- that will dellver 120k indlviduals
positively impacted, 850k heclaies conserved or reslored 8nd 1.8m IC02e removed from thé atmosphere.
Innovative use of block¢haln, Al, and digital platforms for cerilflcalion and regislfalion. allowing projÉcts lo
achleve certification vp lo 12 months faster Ihan under legacy slandards.
By 2030, Social Carbon Found81ion aims lo have our Nalure-based Solution melhodologies applied 31 sc818,
contributing signilicanlly to the proleelion of 300/0 of the wortrl's lands, frèshwalers, and oceans. and helping lo
address Ihè dual global crises ol biodiversity loss and climate change.
SOCIAL CARBON FOUNDATION
TRUSTEES. REPORT {CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
Slructure, Governance and Managemènt
Social Carbon Foundallon Is 8 reglslered UK charlty wllh the charity number 1210037 and a company number ol
CE037535.
The Board of Trustees is responslble for slralegy and tsverslghl. Trustees are..
1. Dr Divzldo Rezende- Co-chair and Co-Founder
2. Glenn Morley- Co-chair
3. Diane Duncan
4. Paulo Gomes
5. DrAmadeu Soares
The Advlsory Board brings together a group ol Independenl. world.class experts whose sclenllfic and market
expertise knowledge and perspectives complement the expertise of Soclal Carbon Foundallon's Tiuslèes and staff.
The Trustees wish lo acknoedge the invaluable contributions ol volunteers who have geneTously given Ihelr Ilme
and 8XPertise lo support Ihe development of our methodologies. advisory fLinclions, ancl outreach efforts. Thèir
Involv8menl, p8rfi¢ul8rfy in sciÉnlific, technical, and governanc8 roles, has significar)Ily slrenglhened the
Foundation's ¢apacSty durlng Ils early growth phase.
Tran8ltlon to Charltable Incorporated Orgynlsallon
Social C8rbon Foundation was originally 8s18bli$hed as 8 company (Company No. 14123164) in 2022 2nd operated
in that capacity until il was formally closed January 2025. On 16 September 2024, the organisalion was
registered as a Chari18ble Incorporal8d Organis81ion {CIOI with th6 Charity Commission for England and Wales
(Charity No. 12065671. From that dale. all operations, ass&ls, and activities were Iransilioned lo the newly formed
charilable enlily. This include5 th8 donation of £1 S,998 in cash.
Flnanclal revlew
Social Carbon Foundation has a sus18inable business model based on certification and issuance fees from proje¢ls.
Grants are sought lo support the developmenl of innovative nature-based Tnechanisms and Io scale lasler than
oroanic growih will allow, given the urgent need for 8¢1ion.
SoGial Carbon Foundation's eslablishmenl phase from 2022 10 2024 was self-fLfnded by the co-found8rs and
volunteers. Fundraising efforts from lale 2024 have been mixed. based primarity on the Foundation's limited Irack
record and the heightened volatility ol Climate and nature markets.
Th8 2024125 yaar had revenuè of £75,265, axpensès of £56,211, a surplus of £19,054 and nel ass8ls of £19,054.
The projection for Ihe 2025126 year is revenue of £646.000. expenses of £556.000. a surplus 01 £90.000 and n81
888els of £109,OCkO.
Rèservés Poll¢y
Social Carbon Foundallon's Raserves Pollcy Is lo maintain unreslrlcled reserves eqijivalenl lo al leasl Ihree months
of core oper81ional 8xp8ndilure. This level will incre8s6 as Ihe organisalion grows and has further cap&cily, il will be
reviewed annually as a minimum.
Rlsk Management
Th6 Trustees are responsible for ensuring that effecliva risk management systems afe in place lo ¥Jentify, assess,
and manage Ihe major risks faced by the ¢haMly. A rlsk regisler is maintained and reviewed regular lo monitor
slraleglc, operational, financlal, and repulalional rlsks. Millgalion slralegiès are in place for key risks, includlng
financial suslalngbilily, regulatory changes In global carbon mark8ls, data security, and repulalional inlegrily.
SOCIAL CARBON FOUNDATION
TRUSTEES. REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
Publlc Benefit
The Truslaeg tonl+rm that Ih&y have complied with Ihelr duly under 8eclion 17 of the Charilies Act 2011 to have due
regard to the Charity Commission's g¢Jidance on pub5ic benefit. In shaplng the Foundalion's aims and delivering ils
activities, the Trusl8es ensure that the Social Carbon Foundalion's work provides clear public beneflt by promoting
climale change millgallon, biodiversity conservallon, and suslaSnable livelihoods through the development and
certification of high-inlegrily nalure.based solutions. Th8 Foundalion priorillses Inclusive, science-based approaches
that support lottal communilies, parlicularly in Ihe Global South, and contribute lo lOnterM environmental and
SOC121 outcomes,
The trusleès, report was approved by the Board ol Trustees.
Diuado Re/i£nd6
' 46987KJ8-4LKZ93VJ
Trustee
Dale..
SOCIAL CARBON FOUNDATION
STATEMENT OF TRUSTEES. RESPONSIBILITIES
FOR THE PERIOD ENDED 31 MARCH 2025
Th8 Iruslees are responsible for preparing Ihe Trustees, Report and the financi81 statements in accoidance with
applicable law and United Kingdom Accounting Standards (Uniled Kingdom Generally Accepted Accounling
Praclicel.
The law applicable lo Gharilies in England and Wales requires Ihe trustèes lo prepare financial slalements for each
financial p8riod which giv8 a true and fair view of Ihe slate of 8ffairs ol the Charity and of the incoming resources
and applicallon of resources of the charity for that period.
In preparin9 these financial sla18menls, the Irusl88s are required to..
S61ecl suitable accounting polici8s and then apply Ihem consistenily..
observe the melhods and principles ir* the Charities SORP.
make judgements and eslimales that are reasonable and pwdent-
slate whether applicable accounling standards have bgen followed. subject lo any material departuras dlsclosed
and explained in the financial slatem8nts'. and
prepare th8 financial stal8menls on Ihe going concern ba818 unless il is inappropriate lo presum8 Ihal the charity
will conllnue in operation.
The trustees are responsible for keepino sufficient accounting records that disclose with reasonable accuracy al any
lima the financial position of the charity and enable them lo ensur8 Ihal the financial stal8ments comply with Iho
Charities Act 2011. the Charily (Accourils and Reports) Regulations 2008 and the provisions of the trust deed. They
are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the
prevenlion and deleclion of fraud and other irfegularilies.
SOCIAL CARBON FOUNDATION
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF SOCIAL CARBON FOUNDATION
I report to thè Iwslees on rny examination ol the financial slalemenls of Social Carbon Foundation Ilhe charity) for
Ihe period ended 31 March 2025,
Re8ponsibllltles and basls of report
As Ihe Iwsle6s of the chaiity you are responsible lor the prepardlion ol the fin8ne*81 slalements in accordance with
the requirements of the Charilies Act 2011.
Having satisfied myself Ihal Ihe financlal slalemenls of Ihe chBrily are not required lo be audited under Part 16 01
the Companies Acl 2006 and are eligible for indap&ndenl examination, I report in respect ol my examinal'on ol the
charitys fIancIal sl8lemenls carried out under section 145 of the Charities Act 2011. In carrying out my ex81Trinallon
I have followed the Dir8¢lions glven by the Charity Commission under section 14515llbl of the Charities Act 2011.
Independent axamlnerfs statement
I havè completed my examination. I confirm th81 no mallers have Come lo my allenllon in connection wlh the
examinallon 9iving me causè lo believe that in any m81eri81 respect.,
1. accounling records were not kept in respect of Ihe charity as required by secllan 130 of the Charilies
Ac12011.
2. the financial slalemen19 do not accord with those records
3. Ihe financial slalemenls do not comply with the applicable rtsquiremenls concerning the forTh and
conlenl of financial statements Sel out in the Charities {Aceounls and Reports) Regulallons 2008 Otr
than any requirement that the financial slalemenls give a true and fair view, which is not 8 maller
considered as part of an independent examination,. or
4. the finanGial slalemenls have nol bean prepared in accordance with the rnelhods and principals of the
Slalement of Rgcommended PracliGe lor accounting and reporting by charilies applicable to Gharilles
preparing Iheir accounts IT) accordance with the Financial Reportlng Standard applicable in the UK
and Republic of IielaRd IFRS 1021.
I have no concems and have come aoross fto olher matters in conneGlion with the examination to which allenllon
should be drawn in Ihls roport in order lo enable a prop8r understanding of th8 financial slalemenls to be leached.
Usè of my report
This report is made solely lo the Trustees in aGcordance with section 145 of Charllies Act 2011. My independonl
examination has been undertaken so that I mighl sl818 lo the Truslees those malleis l am required to slate lo Ih8m
in an Independent Examinorfs report and for no olher purposes. To the fullest exlenl permilled by law, I do not
a¢Gepl or assume responsibility lo aiiyona other than the Trustees for my independent examination or this report.
Davld Hynes
For and behall ol BK Plus Audit Limited
Oakingham House. Frederick Place, High Wycombe, Bucklnghafnshire, HP11 1JU
Datè..
..1.1./1.2.5
SOCIAL CARBON FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOfvIE AND EXPENDITURE ACCOUNT
FOR THE PERIOD ENDED 31 MARCH 2025
Unrfrstrlcted
funds
2025
Notes
Income from:
Donalions and legacies
Chariiable activities
Investments
15,998
59,128
139
Total Incom8
75,265
Expgndlture on:
Charitable aclivilles
56.211
Total expendlluro
56.211
Net Income and movement In funds
19.054
Reconclllatlon of funds-
Fund balances al 16 September 2024
Fund balancas at 31 March 2025
19,054
The slalemenl of financi81 activities includes all galns and losses recx)gnlsed In the period. All in¢om8 and
expendilur8 derlv8 from Gonlinuing aclivilles.
SOCIAL CARBON FOUNDATION
BALANCE SHEET
ASAT31 MARCH 2025
2025
Notes
Current assets
Cash al bank hand
22,554
Credllors., amounts falllng due within on8 year
11
13.500)
Net current assets
19,054
The funds of th8 charlly
Unresldcled funds
19,054
19,054
The finanGial slalem8nls were approved by the trustees on
16th.Ju!y 2025
46987KJ8-4LKZ93VJ
Trustèe
SOCIAL CARBON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2025
Accountlng pollcles
Charlly Informatlon
Social Carbon Foundation is a charlly incorporaled in England and W81os. The registered officos cw) be found
on the legal and 8dminislrallve page.
1.1 Reporting period
The charity was formed c>n 16 September 2024 and Ihese first financial 8lalem&nls cover the p8rtod from
formation through lo 31 March 2025.
1,2 Accountlno conventlon
The financial slalemenls have been prepared in accordance with Ihe chatily's governing document, Ihe
Charities Act 2011. FRS 102 °Th8 Financial Reporting Standard applicable in the UK 8nd Republic of l¥eland'
8nd the Charilies SORP Accounting and Reporting by Ch8rilies: Slalemenl of Recommended Practice
8pplicable lo charilies preparing Ihelr accounts in 2cc/)rdance with Ihe Financial Reporting Standard
8pplicabl6 in the UK and Republic of Ir81and IFRS 1021" The charity Is a Public Benefit Enlily As defined by
FRS 102.
The charSly has t8kon advantage of the provlslons In Ihe SORP for charllles not lo preFiare a stalanenl ol
cash fiows.
The financial slalemenls are prepared in sleTling, which is the functional Currency of the ch8rily. Monetary
am(>unls in these financial slalemenis are rounded lo Ihe nea$1 £.
The finane181 $18lemenls have been prepared under the hislorical cost convenllon. The principal accounting
policies adopted are sel 01 below.
1.3 Going concern
Al the lime of approving the financial slalemenls. the Iruslee5 have a reasonable expectation that the charity
hag 8dèquatè resources lo continue In operational existence for th8 foleseeable fulure. Thus lh8 Irlee$
conllnuts lo adopt the going concern basis of accounting in preparlng the financial slalemenls.
1.4 Charllable funds
Unrestricted funds ale avai18ble for use at Ihe discretion of th& Iruslees in furtherance of their charilable
objectives.
All funds held al Ihe Balance Sheet dale were deemed by the Ifuslees lo be unreslricled.
1.5 Income
Incomo is recognised when the charity is leg811y enlilled lo il af18r any performance condillons hav& been mel,
the amounts can be measured rellably, and11 is probable that Income wlll be received.
Cash donalions are recogniseLt on recelpl. Other donations aTe re¢ognised once the charity has been notified
of Ihe donalion. unless performance conditions require deferr81 of the amount. Income lax recoverable Sn
relalion lo donations received under GiftAid or deeds Df covenant is recognised al the lime ol the donation.
Legades are recognlsed (In rècèipt or otherwise if the charfly has been nDiified of an Impendlng di8tribullon,
the amount Is known. and recBlpl ts expacted. If the amount Is rhol known, the legacy is treated as a
conling8nl 8SS8t.
SOCIAL CARBON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
Accountlng pollcle5
{Contlnued}
1.6 Expendlture
Expenditur& is rè¢ogn6sed once there Ss a legal or conslmcllve obllgalion to transfer economlc benefit to 8
Ihird paty, il is probable that a transfer ol economic benefits wlll be required In setll8rnènl, and the amount of
Ihe obligation Can be measured reliBbly.
Expendllure is classlfled by activity. Thè costs of each aclivily are made up of the lolal of dIr1 costs and
shared costs, Including 8upport costs involved in uridertaking aatth acllvlty. Direct costs alldbul8ble lo a slngle
activity are allocaled direclly lo Ihat aclivily. Sha¥ed costs which contribute lo more Ih8n one activity and
support costs which are not allributable lo a single activity are apporlioned between those aciivilhgs on a basis
consislenl with tha use of resources. Centra1 staff costs are allocated on the basis of tim8 gpenl, and
depreciation charges are allocalecl on the portion of the asset's use.
1.7 C8sh and cash 8qulval&nls
Cash and cash equivalents include cash in hand. deposits held al call wilh banks, other short-lerm liquld
investments with original malurilles ol Ihree months or lèss, and bank overdrafts. Bank overdralls are shown
within borrowlngs in current Ilabllill&s.
8aslc flnanclal assgts
Basic financial assets, which include debtors and cash and bank ba18nces, are initially measured al
Iransacllon pl1 including tranga¢llon cosls and are subsequently carried al 8mortlsed cost using the effective
inleresl method unless the arrang8menl conslilutès a financing Iransa¢llon, where the Iransaclion is
measuréd al the present value of the future reip1S discounted al a markèt ratè of Inleiesl. Financial assets
classified as receivable within Dnè year are not amortlsed.
BBslc financlal Ilabllltlès
Basic financlal liabilities, Including aredilors and bank loans are Inlllally recognlsed al transaction price unl8SS
the arrangèment constilutes 2 financlng transactlon, whère the debt instrument Is measured al the present
value of the lulure payments discounted al a mat*el ralo of interest. Financial liabilities classified as payable
within one year are not amortiS8d,
Debt instrumen18 are Subsequenlly c8rTied al amotlisEd cost, using Ihe effectiv6 inleresl iale melh(K5.
Trade creditors are obligations to pay lor goods or seNices that have been acquired in the ordinary course ol
operalions froffl suppliers. Amounls payable are classified as current liabilities if payment Is due within one
year or less. If not, Ihey are presented as non.ciJrrent liabililies. Trade credi10¥s ale r8cognised initially al
IFans2clion price and subsequently me8sured al arnortised Gosl using the effective inter@s1 melhod.
Derecognltion of flnoncl81 liabilllles
Financial liabililles are derecognised when the charit*s conlraclual obligations expirè or are discharged or
cancelled.
1.8 Employee beneflts
The cosl of any un4Jsed ho1iclay enlillemenl Is recL)gnised in th8 period in which the employee's seryices are
received,
Terrninalion benefits are recognised immediately as an expense when Ihe charity is demonstrably committed
lo lerminale Ihe employment of an employee or Io Pfovide tem)in4lion benof51s.
SOCIAL CARBON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
Critical accountlng estlmates and ludgements
In the 2pplicalion Df the charrvs accounting pollcies, the Iruslees are requir8d lo make judgemenls, eslimales
and assumptions about the carrying amount of assels and liabili118s that are not readily apparent from other
souices. The estimates and associated assumptions are based on historical experience and oth8r laclors that
are considered lo be relevant. Actual results may differ from these eslSmales.
Thè eslimales and underlying assumptions are reviewed on an ongoing basis. Revislons lo accounllng
estimates aTe recognis6d in th6 period in which the eslim8le is revised where the revision affects only that
period, or in the peTlod of the revision and future periods where the revision aff8Cts both cuirenl and fulure
periods.
Income from donations and legacles
Unrestrlcted
funds
2025
Donations and gifts
15.998
Income from charltablo actlvltles
Unrestricted
funds
2025
SeNlces
Project fees
59,128
Incom¥ from Inv&stmants
Unrestrlcted
fLtnds
2025
Interesl re1vable
139
10.
SOCIAL CARBON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
Expendilure on charltable actlvllies
2025
Direct cos18
Contractors
Tr8velling expenses
Soflwarè costs
32,400
10,394
2,360
45,154
Share of support and governance costs {seÈ note 71
Support
Govgynance
367
10,690
56,211
Analysls by fund
Unrestricted funds
56,211
Support ¢08ts allocated to acllvlti8s
2025
Sltpport cosls
Governance costs
367
10,690
11,057
Analysed between..
Bank charges
Foreign exchange
Accounting lees
Legal fèes
302
65
3,860
6.830
11,057
Trustees
None of the l¥uslees lor any persons connecled with thèm) received any remunerallon or ben8fi1s from the
charity during th8 perlod.
11
SOCIAL CARBON FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
Employees
Tho average monthly number of employees durir)g th8 Period was:
2025
Numbor
There were no employees whose annual remuneration was more than £60,000.
Romuneration of key management personnel
The key management personnel recewed no ramunarBtion during th8 period.
10 Taxatlon
The charily is exempl from 18xalion on its activili8s bècaus8 811 its income 1$ 8ppli8d lor cha¥itabl8 purposes.
11 Credltors: amounts falllng du8 wllhln one year
2025
Accruals and deferred income
3,500
12 Unrestricted funds
The unroslricled funds of th8 charity comprise Ihe unexpended balances of donalions. 9ifts and projecl fees
whlch are nol subject lo specific CndItIonS by donors 2nd grantors as lo how they may be used.
At16
Septembpr
2024
In¢omlng
resource8
Re$our¢es At 31 March
exponded
2025
General funds
75.265
{56,211)
19,054
13 Related party transactlons
There were no disclosable r8181frd party Iransactions duiing thé pÉriod l - non81.
12