Soil:49soeialion
Tru*,tees,,
Report
an
"Fin
ncial Statements
FOT the year ending 31st March 2023
Table of Contents
Who We Are.........................................................................................................................................
Chair's Introduction.........................................................................................................................
Trustees. Report.................................................................................................................................
Chief Executive's Introduction .
Charitable Objects.......................................................................................................................................
How This Report Was Compiled...............................................................................................................
Glossaryof Common Terms......................................................................................................................
Our Achievements and Performance in 2022-23....................................................................10
Impact.. Farming and Land-Use...............................................................................................................10
Impact.. Healthyand Sustainable Diets.................................................................................................. 15
Impact.. Our Standards..............................................................................................................................20
Impact.. Joining Forces for Positive Change.........................................................................................22
Soil Association Group.................................................................................................................. 26
How We Fundraise.....................................................................................................................................26
Our People..................................................................................................................................................27
Consideration of Directors, Responsibilities.........................................................................................30
Soil Association Certification.
.32
Soil Association Exchange........................................................................................................................36
Our Land Trust............................................................................................................................................37
Streamlined Energyand Carbon Reporting ISECRI.............................................................................39
Financial Teview and iesults foT the year................................................................................. 43
Financial Review.........................................................................................................................................43
Going Concern...........................................................................................................................................46
Significant Risks and Uncertainties.
.47
Structure and Governance.......................................................................................................................49
Stalement ofTrustees' Responsibilities.................................................................................................53
Independent auditOT'S report to the Members of the Soil Association Limited..............SS
Financial Statenients................................................................................................................... 60
Consolidated Statement of FinancialActivities....................................................................................60
Soil Association Ltd.
Company Registration Number.. 00409726
Registered Charity Number.. 206862
Registered Charity Number lin Scotlandl.. SC039168
Who We Are
The Soil Association is the charity that joins forces with nature for a better future.
Working with everyone to transform the way we eat. farm and care for our natural world. we
build real solutions from the ground up.
Together. we are a force for nature.
OUT Vision
Regeneration - a world with good health, in balance with nature and a safe climate
restored for all.
Our Mission
To help everyone understand and explore the vital relationship between the health of
soil, plants, animals and people.
Soil Association Ltd.
Company Registration Number.. 00409726
Registered Charity Number.. 206862
Registered Charity Number lin Scotlandl.. SC039168
Chair's Introduction
l am pleased to present to you the Soil Association's Annual Report and Accounts for the
year ending 31 March 2023. 1 hope you will be as impressed as l am by the extraordinary
range of activities delivered by our committed and talented team. Rather than highlight
here specific programmes and achievements, I would rather encourage you to dive into
the detail of the report. Here you will see how the Soil Association actively shares its
extensive agroecological and organic experience with many organisations and
individuals to improve the health of soil, plants, animals and humans - and thereby the
health of the planet.
We tackle these complex, inter-connected issues with practical solutions from the
ground up, bringing together citizens, farmers and growers, foresters, producers,
schools, local authorities, companies, civil servants and politicians to provide them with
real world advice and encouragement. We use hard data and rigorous research, in
conjunction with extensive on-the-ground experience, to define and set standards, to
unambiguously state what good and what sustainable looks like, and where appropriate
to celebrate success. And where progress is slow or non-existent, or the commitments
vague or empty, we look to constructively challenge, to encourage joined-up thinking
and to hold people and organisations properly accountable.
That includes ourselves. We have set some very challenging goals for the Soil
Association, and we regularly ask ourselves - are we doing enough? Regrettably the
answer is usually "no"
but not for lack of ambition and vision. Although we have made
significant investments in our capabilities, this year we have had to make some tough
decisions about resources and priorities in this difficult economic environment. We are
painfully aware what a challenging time it is for many of our farmers, growers and
caterers. The cost of living is affecting us all. Our costs as a charity are rising too.
Accordingly, we are determined to do everything we can to increase our income to
allow us to further amplify our positive impact on the climate, nature and health
emergencies. Please help us with this.
If you are already a supporter, you have our sincere thanks, please continue your
support, and consider increasing it if possible. And do tell like-minded people about us.
If you are not yet supporting the Soil Association, thank you for your interest in our work,
and I hope that you will soon start supporting us in whatever way you can. For anybody
looking to help transform the way we eat, farm and care for our natural world, this is a
great charity to get behind, making a tangible difference. Together, we are a force for
nature.
Martin Nye, Chair of the Board of Trustees
Soil Association Ltd.
Company Registration Number.. 00409726
Registered Charity Number.. 206862
Registered Charity Number lin Scotlandl.. SC039168
Trustees. Report
Chief Executive's Introduction
If there is one thing that is certain now, it's that there is no certainty in the world. We are
in volatile and unpredictable times, and we should not expect this to change. We have
set in motion cataclysmic forces by polluting and destroying our natural world, and the
human impacts will be far reaching. I ncremental progress will be insufficient to stabilise
and regenerate the environment on which society s wellbeing is dependent,. we need
some fundamental shifts in the way we manage resources, and bring people together in
a concerted, unified way.
This is a tough message with which to open our Annual Report, but as one of the UK'S
oldest environmental and farming organisations, it's one we must look square in the face,
and we are doing just that. We have set almost impossibly and
understand that we cannot achieve these alone. Indeed, our most significant
contributions both this year and over the decades, are those that put organisational ego
to one side, working to build collaboration and consensus. Over recent years we have
initiated Food for Life, Sustainable Food Places and Innovative Farmers, all amazing
partnerships, and worked hard to establish the Food, Farming and Countryside
Commission to provide the 'big tent, where many voices can come together to agree the
way forward and provide powerful advocacy for that path.
This year we worked with RSPB to build a consensus on next steps for farming and
environment policy. This has been supported by a multitude of organisations across
diverse f ields, and work is ongoing to build this further as political parties start to develop
their manifestos for next year's General Election. For the first time too, we were able to
appoint a head of policy, Andrew Tuddenham, in Wales,. both Wales and Scotland are
often leaders in progressive farming policy. We have set the agenda for the debate
around integrating trees on farms and crofts in Scotland, working in partnership with
Woodland Trust Scotland and finding common ground with NFU Scotland on the need
for the post-CAP agricultural support framework to incentivise agroforestry and the
creation of on-farm woodland. We also joined a Scottish Government delegation to
Biofach in February to learn lessons from our European neighbours on how to bring
organic from the margins to the mainstream and ensure the SNP-Green government
meets its goal of doubling organic land by 2026. In Wales, we have voiced clear support
for the Food (Wales) Bill, a food policy governance bill, presented oral evidence to the
Welsh Parliament and commissioned legal advice to inform partnership campaigning on
the Bill.
Our Food for Life programme continues to grow its footprint in schools and early years
settings with two large new commissions in Lancashire and West Northamptonshire
Soil Association Ltd.
Company Registration Number.. 00409726
Registered Charity Number.. 206862
Registered Charity Number lin Scotlandl.. SC039168
Glossary of Common Ternis
FFL
FFLSH
FFLGTS
My Food
Sustainable
Community
Food Places
My FooL1 Community is
Susiainable FooL1 Places
prffjramme that helps is a programme led by
people who want lo
the Soil sOciatIon.
champion good food in
Food Matters an¢
their communiiy by
Sustain, 10 support t(al
lacilitsting learning and
cross-seclor food
personal development
partnerships towards
making gooL1 fooo a
¢elining characteristic of
Ihe place where they
Food for Life. Soil
socialion's
programme that
makes good food the
easy choice for
everyone Ihrough a
'whole seiting
approach, and
stratified award
scheme.
Food for Life Servecj
Here is Soil
socialion'5 award
scheme for caterers.
operaied through FFL
Award hol¢ers have
demonstrated their
commitment lo serving
heallhy anoj sustainable
food
Food lor Life Gei
Togeihers are regubr
comwunity events that
connect people of all
ages anoj backgroun¢s
through lood.
Cook and
Share
Plant and Share Innovative
Farmers
Field Lab
FABulous
Farmers
Cook and Share 15 3
FFLGTS campaign,
promoting ways to
come together
through food.
Plant and Share Month
is a FFLGTS campaign
lo gel the nation
growing and sharing
produce with their
community, £hool.
Innovative Farmers is a
not for profit
embership neiwork.
for all farmer5 and
growers who are
running on farm Iri31s,
on Iheir own terms
Field labs are IF'5 lerm
FA8ulou5 Farrner5 is a
lor on-larm Irials run by European project
farmers and
supporting farmers in
researcher&
the transition lo more
agroecological practices
on their farm5
Herbal Leys
ELMS
Soil Association Agroecology
Exchange
Agroforestry
Herbal ley5 are
temporary gras51ands
made up of legume.
herb and gra55
5pecie5
ELM5 5tand5 for
Environrnenlal Land
Management Scheme
and 15 Ihe new way the
government will
5upporl English land
owners after leaving
the EU, and consider a
range of public
interests in mind and
lor 3 range o15erwces
that benefit people, not
just loocl or timber
production.
Soil Association
Exchange is a new on-
farm and online service
aiming lo become the
ndu5try standard lor
measuring, improving
and rewarcling the
ecological
perlorrnance of all UK
farming and forestry.
Agroecology 15 the
application of
ecologial cofjcepls
and principals in
larTning It's SU51ainable
farming Ih3t works wilh
nature.
Agroforestry refer5 to
anyol a broad range of
land use praclice5 where
pasture or crop5 are
ntegraled with tree5 and
5hrub&
Regenerative
farming
Regenerative
Dynamic food procurement
Out to Lunch
Dynamic foooj pr(Kurement provides an open
'LaunchecJ in 2013. our Out to Lunch campaign Is
digital marketplace for food producers and buyers. working to Improve the food and service offered t
By removing many of the barrier5 to entry for
children and familie5 when they eat out Wilh the
suppliers. a more balanceL1 market can emerge,
help of a team of 'secrel diner. parents. the
approach to lood and creating substantial opporiunities lor local
campaign compiles a league table, and aims 10
farming 5yStems.
producer5 and suppliers.
irnprove healthy menu development and
encourages goo¢ sourcing and preparation
practy'ces.
conservation and
Soil Association Ltd.
Company Registration Number.. 00409726
Registered Charity Number.. 206862
Registered Charity Number lin Scotlandl.. SC039168
o
Consideration of Directors. Responsibilities
Section 172 of the Companies Act 2006 requires the directors to act in the way they
consider, in good faith, would be most likely to promote the success of the charity to
achieve its charitable purposes. The Act states that in doing so, the directors should have
regard, amongst other matters, to..
The likely consequences of any decision in the long term
Soil Association's strategic goals were developed as part of a long-term approach to
improve access to information about climate change and choices that citizens, farmers,
policymakers and businesses can make to counter it. We routinely review external
developments and assess future trends to ensure that our plans can be adapted as
needed to meet changing circumstances.
The interests of the company's employees
Our colleagues are a vital part of the Soil Association group, whether they work within
the Charity, Certification, or Exchange teams, or with one of our partner programmes.
We regard regular engagement with them as a top priority, and our employee
engagement levels are important to our progress. This year, through our programme of
values workshops colleagues from across the group have been able to share their views
on the organisation's values and identity,. the feedback from these sessions is now being
applied to our working practices.
The need to foster the company's business relationships with
suppliers. customers and others
We prioritise benef icial relationships with all our stakeholders, as well as our wider
audience. They will continue as our reach grows through social media activity and
member recruitment.
The impact of the company's operations on the community and the
environment
We recognise the importance of accountability and transparency to our community,
members, and supporters and as such recognise that the way our activities affect the
environment should be as transparent as possible. As such, we have compiled
information on our environmental impact which can be found in the section entitled
"Streamlined Energy and Carbon Reporting We also hold regular citizen panels to
assess our impact on beneficiaries, with groups that span supporters and non-
supporters.
30
Soil Association Ltd.
Company Registration Number.. 00409726
Registered Charity Number.. 206862
Registered Charity Number lin Scotlandl.. SC039168
The desirability of the company maintaining a Teputation for high
standards of business conduct
We are regulated by the Charity Commission as well as by the Fundraising Regulator,
ensuring that our conduct remains close to both our organisational values and what our
audience expects from us. In recruitment, we ensure that everyone who meets the
requirements for a position has equal opportunity and access to apply. and that
applicants with criminal records are considered on their individual merits unless the
posting is exempt from the Rehabilitation of Offenders Act 1974. In working practice, we
also adhere to the actions set out in our Modern Slavery Statement so that our
stakeholders and business partners can be assured that our practice is ethical throughout
our whole supply chain.
The need to act fairly as between members of the company
Having a fully equal, diverse, and inclusive organisation remains one of our prime
considerations. We want to be as accessible and relevant to as many people as possible,
and we recognise that we need to diversify both our internal practices and external
activities in order to ensure that this develops. More information on our Equality,
Diversity, and Inclusion work can be found under the People section.
51
Soil Association Ltd.
Company Registration Number.. 00409726
Registered Charity Number.. 206862
Registered Charity Number lin Scotlandl.. SC039168
Emissions statistics comparison
2022-23
2021-22
Bristol HQ
Energy consumption used to calculate
emissions Ikwhl
160,983
175,557
Emissions from combustion of gas
IkgC02el
Emissions from purchased electricity
IkgC02el
Total emissions from gas and electricity
IkgC02el
Emission from water (supplied and
wastel IkgCO2el
11,404
18,075
18,879
16,322
30,283
34,397
Not measured in
last year's report
227
Net internal area IN IA) of office Im21
1,276
1,276
Intensity ratio Itotal kgC02e per m2 of
office N IA)
24
27
Business travel
Soil Association Certif ication Limited
IkgC02el
Soil Association Limited IkgC02el
Total emissions from business travel
IkgC02el
Average full time equivalent IFTEI
employees in 2022-23
Intensity ratio Itotal kgC02e per FTE
employee from business travell
61,836
34,924
27,761
14,012
89,597
48,936
311
277.1
288
177
Emissions from Bristol HQ and business
travel IkgC02el
120,107
83,333
40
Soil Association Ltd.
Company Registration Number.. 00409726
Registered Charity Number.. 206862
Registered Charity Number lin Scotlandl.. SC039168
Current practice and improvement proposals
The Soil Association is continually making improvements to the environmental practices
within the business.
The Head Office has energy-saving measures in place such as motion activated LED
lighting, the replacement of ineff icient mechanical and electrical plant such as upgrading
water heaters and boilers with more modern equipment, and a policy of encouraging
staff to use natural ventilation rather than air-conditioning.
We source our electricity from Good Energy, a supplier who matches IOO/o of the
electricity we use with power they generate at their own renewable energy farm or
power they buy from independent renewable generators.
Further improvement in the building's energy efficiency is likely to require significant
capital funding for projects such as upgrading the HVAC system Isomething that could
eliminate our use of gasl, upgrading to more modern double glazing, renewing the
building roof to incorporate better insulation and installation of solar PV.
A hybrid working system has been in place since COVID-19 and there is a percentage of
home or remote workers.
The energy usage and emissions from Spear House have reduced over the past financial
year, based on the above actions which in turn has reduced the total kgC02e.
Current organic and forestry certif ication regimes require physical inspections at client
sites. These inspections have also returned to normal following COVID-19 and in turn,
the mileage has increased. Often these sites are in rural or out of town locations that
cannot be easily accessed by public transport, and in the case of forestry a significant
number of clients are overseas necessitating air travel. For so long as the regulations
require physical inspections a signif icant degree of business travel will need to be
undertaken. Improvements that can be explored include reviewing the scheduling of
visits to minimise distances travelled and the fuel efficiency of the vehicles driven. The
number of electric and hybrid vehicles has increased from 2021-22.
Exchange technicians also have to physically attend sites to undertake visits, but these
technicians only undertake travel within a 100 mile radius of their home to reduce travel
and emissions. Again, public transport is recommended where available to use.
For other UK business travel in the Soil Association Group, we operate a travel hierarchy
that encourages online meetings, but when not possible we encourage the use of public
transport and car sharing.
In January 2023, an in-house Environmental Lead was recruited. There is an
Environmental Working Group who meet every three months, and a series of
environmental champions who help and support teams with environmental
41
Soil Association Ltd.
Company Registration Number.. 00409726
Registered Charity Number.. 206862
Registered Charity Number lin Scotlandl.. SC039168
Cash at bank fell by E2,634k largely due to the E2,219k Group operating deficit in the
year as well as a £705k increase in year-end debtors. For more information, please refer
to the consolidated statement of cashflows on page 65.
Creditors due in less than one year increased by £345k year on year, of which £209k was
in other creditors and E96k in accruals and deferred income. Creditors due in greater
than one year decreased by E139k year on year due to another year of payments relating
to the Spear House loan creditor.
Reserves at 31 March 2023
At 31 March 2023, the total funds held by the Group were £12,744k, down from £14,963k
the year before, Total funds at 31 March 2023 were made up of £3,663k unrestricted
funds and £9,081k restricted funds.
Unrestricted funds and reserves
Unrestricted funds and reserves decreased to £3,663k at the end March 2023 from
E4,522k the previous year, as we invested in the Charity s future growth.
The Trustees have set a reserves policy that determines a desired range of free
unrestricted reserves based upon future expenditure plans and the risks and
opportunities inherent within our Group business model. Free unrestricted reserves are
those amounts readily available to support charitable activities in the event of
unexpected reductions in income, cost increases and to provide a source of funds for
planned investment in future years. The Group deems its unrestricted free reserves to be
total unrestricted funds less designated funds less unrestricted pledged donations where
the cash has not yet been received. The Trustees review the appropriate level of free
reserves regularly and, taking into account the current impact of inflation and income
risk, consider that free reserves should be in the range of £850k to £1,700k.
As at the end of March 2023, the Group s free reserves were £993k12022. El,754kl. The
decrease in free reserves was due to the planned investment in the Charity, leading to
the unrestricted deficit made by the Group in the year. The current level is within the
range set by Trustees.
The Soil Association's reserves are generated by and held for the benefit of the Soil
Association Charity and its trading subsidiaries SA Certification and SASS.
Restricted funds and reserves
Restricted funds and reserves decreased to E9,081k at the end of March 2023 from
EIO,441k at the end of March 2022, due to expenditure of restricted project funds where
the grant income was received or recognised in advance.
The £9,081k of funds largely comprise fixed assets Iland, buildings and machinery)
totaling E5,985k within Soil Association Land Trust and E3,096k of grant funding
received or receivable by the Charity for future expenditure on restricted projects as
directed by funders.
45
Soil Association Ltd.
Company Registration Number.. 00409726
Registered Charity Number.. 206862
Registered Charity Number lin Scotlandl.. SC039168
Significant Risks and Uncertainties
After several years of turmoil caused by the pandemic and, more recently, the global
energy crisis, we continue to face significant uncertainty. The Trustees, through the
Audit & Risk Committee, oversee a formal risk management process, regularly reviewing
the risks the Group faces, prioritising them and, where possible, identifying means of
mitigating them. We have adopted an agile approach to financial management, so that
we can respond to issues quickly.
The most significant risks and uncertainties facing the Soil Association Group are..
Inflation
The current high level of inf lation has led to organisational costs increasing and a
pressure to substantially increase pay, the Group s largest cost. We have responded to
this with a combination of focusing on income growth where possible and prioritising
cost to the most strategically important areas of our work. If inflation continues at a high
level without corresponding increases in income, our ability to achieve our 2030 goals
will be impacted.
Retaining our team
The cost-of-living crisis is making it challenging for many team members. We are a Real
Living Wage employer, and we are making pay and investment in our employees a top
priority for the coming year. However, we will not be able to increase pay in line with
inflation, and this makes retaining our skilled and knowledgeable team more difficult.
Income generation
The organic sector is under considerable pressure within the UK. Demand is reducing as
people feel the bite of the cost-of- living crisis and retailers discount non-organic lines.
Supply chain problems, including the more complex cross border trade with the EU
following Brexit, add to the pressure. These issues are expected to result in the loss of
some organic producers as well as reduced turnover and margins, all impacting SA
Certification income.
Much of our forestry income within SA Certification is overseas, in parts of the world not
experiencing the high level of inflation in the UK. This makes it hard to pass on price
rises to our customers. This is a growing area of business but, with a cost base subject to
high inflation and income that is not, margins are under pressure.
We have started to see a reduction in income from charitable donations as donors feel
the impact of the cost-of-living crisis, and we are expecting this to remain a challenge
over the coming year. Stock market declines could also impact funds available for
investment by Trusts and Foundations and lead to a reduction in grant funding.
47
Soil Association Ltd.
Company Registration Number.. 00409726
Registered Charity Number.. 206862
Registered Charity Number lin Scotlandl.. SC039168
Standards Board
This advisory board consists of lay representatives and experts drawn from industry
sectors in which the Soil Association operates. The Board is chaired by an independent
lay member. The role of the Standards Board is to provide independent oversight of the
integrity of the Soil Association's standards and to make recommendations for their
improvement to the Board of Trustees.
Subsidiary Boards
Each subsidiary trading company has its own Board of Directors consisting of at least
one of the Charity s Trustees, which is responsible for the running of the company. Soil
Association Land Trust has its own Board of Trustees, which includes the Soil Association
Group Chief Executive.
Executive Team
The day-to-day running of the Charity is delegated to and undertaken by the Group
Chief Executive and the Charity Managing Director, under a scheme of delegation
agreed with the Board of Trustees. The Group Chief Executive leads the Group
Leadership Team consisting of the Charity Managing Director, the Group Resources
Director and the Chief Executives of SA Certification and Exchange.
Pay setting for key management personnel
The Trustees consider the Group Chief Executive and director level appointments within
the charity and its trading subsidiaries, teams are the key management personnel of the
Group. The pay of these employees is determined by the Group Leadership Team with
oversight from the Remuneration Committee and the relevant subsidiary boards.
Starting pay levels for these senior roles are determined using a combination of the
Group s career level assessment, internal benchmarking of comparative roles and
assessment of the external job market. Pay progression is reviewed annually and
normally increased in line with the standard pay award given to all other staff.
How we secure funding
Soil Association supporters can be assured that we are registered with the Fundraising
Regulator and we comply with the regulatory standard for fundraising.
We fundraise by submitting applications to grant-giving trusts, by partnering with
companies to deliver joint benefits, by securing donations and gifts-in-wills from
individuals and members. Our fundraising from supporters takes the form of funding
appeals, and direct asks., face-to-face, by letter and by email.
Last year, we used Ethicall telemarketing agency to deliver telemarketing campaigns to
fundraise and reactivate lapsed or cancelled members. We always ensure that any
agency we use to assist us with our fundraising is fully accredited with the relevant
51
Soil Association Ltd.
Company Registration Number.. 00409726
Registered Charity Number.. 206862
Registered Charity Number lin Scotlandl.. SC039168
Auditor
The auditor, RSM UK Audit LLP, is deemed to be reappointed under section 487121 of the
Companies Act 2006.
The report, including the strategic report, was approved by the Board of Trustees on 18th
July 2023 and signed on their behalf by..
Martin Nye
Chair of the Board of Trustees
54
Soil Association Ltd.
Company Registration Number.. 00409726
Registered Charity Number.. 206862
Registered Charity Number lin Scotlandl.. SC039168
4 August 2023
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Reference and Administrative Details
REGISTERED CHARITY NUMBER. 206862 IEngland and Wales)
SC039168 Iscotlandl
REGISTERED COMPANY NUMBER. 00409726
REGISTERED OFFICE.
Spear House
51 Victoria Street
Bristol
BSI 6AD
GOVERNING DOCUMENT.
Articles of Association
CONSTITUTION.
Company limited by guarantee
ROYAL PATRON.
The former Prince of Wales
HONORARY VICE PRESIDENTS.
Charlotte Mitchell
Jonathan Dimbleby
Trudie Styler
TRUSTEES.
Martin Nye (Chairl
Phil Fearnley Ivice-chairl
Thomas Bourne Ivice-chairl, resigned 24 Nov 2022
Richard Allan, appointed 24 Jan 2023
Anthony Balance. appoinled 24 Jan 2023
Lauren Branston, appointed 24 Jan 2023
Andrew Burgess
Sepideh Golzari, resigned 19 July 2022
Steven Lizars
Caroline Missen
Isabel Oliver
Rosemary Radcliffe
Jonathan Spencer
Sabine Vandenbroucke , appointed l Nov 2022
GROUP KEY MANAGEMENT PERSONNEL.
Group Chief Execulive - Helen Browning
Group Resources Director - Nicola Spencer. started 26 Sept 2022
Chief Operating Officer - Marlin Dawson, left 12 Oct 2022
Charity Managing Director - James Cashmore
Director of Marketing and Communications - lan Ayling
Programmes Director - Aoife Behan, left 7 Apr 2023
Director of Development - Louisa Pharoah
Policy and Strategy Director Joanna Lewis
103
Soil Association Ltd.
Company Registration Number.. 00409726
Registered Charity Number.. 206862
Registered Charity Number lin Scotlandl.. SC039168
www.soilassociation.org