www.igd.com THE INSTITUTE OF GROCERY DISTRIBUTION Annual Report and Accounts For the year ended 31st December 2020 Registered Number 105680 Charity Number 309939 The Institute of Grocery Distribution Report and Accounts For the year ended 310t Decembgr 2020 Contents Page Trustees, Report (including Strategic Report) Group Statement of Financial Activities statements of Financial Position 12 Group Statement of Cash Flows 13 Notes to the Accounts 14 Independent Auditor's Report 27 IGD Board of Truslees 30 IGD Senior Leadership Team 31 The Institute of Grocery Distribution Trustees, Report {including the Strategic Report) For the year ended 31st December 2020 The trustees present their report {including the Strategic Report) together with the financial statements for the year ended 31 st December 2020. The trustees have adopted the provisions of the Slalement of Recommended Practice for Accounting and Reporting by Charities (Charities SORP {FRS 1021 {Second edition- October 201911. The report and the financlal statements also compty with the requirements of the Companies Act 2006. Ob'ectives and activlties As a charity, we exist to upskill people working in or looking to join the food and consumer goods industry. We also manage initiatNes driven by research and best practice relats'ng to science. technology or economics in the food industry. Our charitable work is funded by the profits from our trading subsidiary. IGD servI￿s Limited, together with its vo overseas based subsidiaries. The three companies provide research and insight based commercial Services to the food ancl consumer go(xJs industry. We enable companies across the food and consumer goods industry lo work together collatorativety across four key areas of focus.. people, health, sustainability and economics. We seok to incfease the publ￿ benefit we deliver every year by making a bigger impact on a larger number of people and companies. Ensuring our work dellver6 agalnst our obje¢tivgs When launching anything new, we check that it complies fully with the Memrandum and Articles of Association and we regularfy review all activities throughout the year. In these reviews we remind ourselves what we set out to achieve, what we have learnt, the publi¢ benefft delivered so far and the opportunities lo extend this. In doing so, we refer lo the Charity Commission's general guidance on public benefit. The trustees Consider that the charity h8s wmplied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charities Commission. The trustees regularly consider and discuss how our existing and planned activities ¢ontribLtte to IGD'S charitable objectives and probe to ensure that resources are used efficiently and deliver a sab'sta¢tory ￿turn. How work We are guided by a series of advisory groups. drawing expertise from our member companies and beyond, all under the oversight of our trustees. Full details of which can be found at www.igd.comlinduslryworkinggroups. Our 2020 charitable achlevements Summary 2020 has been an extraordinary year as we lived through a pandemic that has profoundly affected so many aspects of everyone's INes. The food an¢Y consumer goods industy has done a fantastic job, pulling together and Wor￿.ng hard to keep food and other essentials on the she5ves to protect the most vulnerable in our stxiety- We owe our thanks to all of the food heroes working across our industry- At IGD. our purpose is to drive change and make a tangible dIffe￿nCe to society by uniting and inspiring the food and consumer goods industry. We do this through sharing knowledge, leading collaborations and by delivering great programmes on specific challenges. We use our unique ability to convene stakeholders across the whole food and consumer goods supply chain to influence change across four key area5.' people. health, sustainability and economics. With young people set to be among the worst affected by COVID-19 from an &rnployability perspective, during the summer we launched a virtual work experience training programme. bringing some of the industy's biggest ￿tallerS and brands together to deliver a week of interactive learning and skills development. In addition, we have continued to develop our free leaming offer to ensure its relevance in today's world. with the aim of championing lifelong leaming within our industy. The Institute of Grocery Distribution Trustees, Report (including the Strategic Report) (continued) For Ihp ygar ended 31•1 December 2020 Summary (continued) Through our work on sustsinability, we continued lo champion the Food Waste Reduction Roadmap, with signatories who publicly reported data achieving a 17°h year on year reduction in food waste. We also brought together key players along the redistribution SUp￿Y chain to align on a joint ambition to increase the redistribution of food surplus. We helped the industry deliver 22,000 pallets of food to charities and food banks through our COVID-19 emergency appeal. As part of our focus on health we have an ambition to encourage more people to adopt a healthy and sustainable diet and we published Appets"te for Change, the outcomes of our behaviour change research, which we plan to build on in 2021. Through our economic analysis, and engagement with governmen( we aim lo help all food and consumer goods businesses to make well informed decisions, in the interests of society- This includes supporting them lo address any immediate risks lo the food supply chain. Over the last 12 months we've helped the industry to rnanage the challenges of COVID-19, and to p￿pare for the end of the transition period with the EU, ? work5tream that will continue apa￿ as we head into 2021. None of the above would be possible wilhout the expertise and support of our industry advisory groups, member companies, volunteers, customers and policy rnakers and of course, the learn here at IGD. who are passionate about creating a tangible difference. All of the funding for our swial impact work is derived from IGD'S trading subsidiary, and we are genuinely grateful lo businesses for their fantastic 5UPPOrt and investment in our commercial insight and expertise. We have an ambitious programme of work planned for 2021. including expallding the scale of our new virtual wort( experience programme, refocusing our efforts on inclusion and diversity and bringing the industry logelher to drive collaborative action on food redistribution. As an organisalion. we strive to create inclusive partneiships and make a tangible differen￿ by addressing common issues which are relevant to society, business and the individual. People We focus on giving young people opportunities to devek)p their employability and life skills and on building the knowledge and skills of food and conSU￿r goods industry colleagues, so that we foster an incluswe and Pfoduclive workforce. We quickly adapted our free leaming resources, so that they continue lo support industry colleagues throughout the COVID-19 pandernic. Allogelher, we have provided 11.000 free leaming hours, through videos, webinars and our other online resources. All of these are available for industry colleagues to access at any time. to suit their needs. This has been incredibly well received, with learner satisfaction feedback standing at an impressive 85Vo. Our Fast Track programme, specialty designed lo support people who have recently joined the industry, has Continued to expand significantly, with over 1,300 people from 250 companies registering lo take part. We have developed new conlenl around 'buitding a digital mindsef and 360 learners from over 210 companies have already benefited from this structured leaming joumey. Over 200 people took part in our unKiue talent programmes, sponsored by our Supply Chain Leaders Fowm, designed to help supply chain professionals take the next step in their careers. Through our employability programme we deliver nationwide Workshops in secondary schools, connecting students with industry professionals so that they can hear about the dwerse range of careers available in the food and consumer goods industry and learn about employability skills. We have continued our support for students and teachers working remotely by providing online workshops and free resources. We have also delivered weeks of virtual work experience designed lo help young job seekers build their employability ski115 and to undelstand the opwrtunities available in our industry. in the context of rising youth unemployment. Overall. we helped 6,000 young people in 2020, th the support of 500 volunteers from 50 companies and an amazing 93Yo of young people said they felt beller prepa￿d for the Wofld of work as a result of taking part in these IGD initiatives. Following the kun¢h of our report on Diversity & Inclusion in Grocery at the end of 2019, we've continued to champion this agenda throughout all of our activities. We are actively encouraging companies to share their experiences so that we can ac¢elerate the adoption of best practice. To facilitate this, we organised an online event for HR professionals in December, with the support of our HR Leaders Forum. Our priority for 2021 is lo scale up all our people programmes so that we can help Th)re people lo develop their skills. We will expand the number of virtual work experience opportunities we offer to unemployed people and we will be launching a new programme, specifically designed to support new and aspiring line managers in our industry. The Institute of Grocery Distribution Trustees, Report (including the Strategic Report) (continued) For the ygar ended 3161 December 2020 Hgalth Our ambits'on is to make healthy and sustainable diets easy for everyone by leading industry collaborations and building greater knowledge of what really works. Through ground-breaking research, we are focusing our efforts on championing a shift towards healthier and more sustainable diets. as we see this as a key lever to address both the obesity crisis and climate change. Our first slep was to launch our Appekn'te for Change report eadier this year, outlining the key opportunities to shift people's behaviour and also recommending next steps to help businesses to act. We Continued lo build our evidence base for this throughout the year, recognising the sigrsificant changes in consumption in the wake of the pandemic. We've partnered with experts in behavioural science. using innovative research techniques to identify acb'onable inS￿htS and we've been sharing our findings widely-, 1.000 organisations have downloaded our reports or attended our unique webinar5. We are now leading an industy-wide c081ilion that will test behaviour change inte￿entionS in real lrfe settings. Our aim is to help lo identify practical inleNentions that can be scaled up and then share these widely. 18 leading retailers, manufacturers and foodservice businesses are supporting this initiative and we are working closely with other organisalions. such as leading academics, the Behavioural Insights Team. the British Nutrition Foundation, the Food Foundation and the Consumer Goods Fowm, to join all of the dots and accelerate progress. We are in regular dialogue with government Offi￿alS lo ensure that our work is aligned with an evolving policy agenda. For example, senior offiuals from the Department of Health and Social Care mel with our Nulritionisl Group to discuss the new obesity strategy and Tamsin Cooper. the leading civil seNanl on the National Food Strategy. met with our Technical Leaders Forum. Via our free online tools and resources, we continue to help and encourage more companies to refomiulale their products to be healthier by sharing our free tools and insights. Our online resource of practical guides, case studies and free ¢on5umer insights had over 22,000 visits this year, twice as many as the previous year. Our nutrition and behaviour change experts led free webinars which were attended by some 500 people from 270 organisations. We've also been proactwe in sharing our consumer insighl on attitude5 to health and nutrition by contributing to over SO industy events and briefings with government departments. And, we reach over 5,400 people who subscribe to our monthly neWs￿tter of free articles and insights. Our top priorty for 2021 is to mobilise the industy to help shift consumer behaviour towards healthier and more sustainable diets. We are preparing to launch new online resources for businesses and to lest the impact of specific behaviour change interventions in real life settings. We will conts'nue to make our ffindings widely available and work to mobilise businesses to implement them. Sustalnablllty Our priorities are lo champion food waste reduction and food redistribution, and to mobilise industry and critical Stakeholders lo develop sustainable packaging systems for food and consumer goods products. In a wodd first. IGD and VVRAP united to launch the Food Waste Reduction Roadmap in September 2018, to help food businesses measure waste more consistently and give them*lves a target for reduction. Two years on, 210 UK food businesses have already committed lo target, measure and act on food waste, representing more than hall of the UK food industry by turnover_ The latest comparable data shows a 17°/ty reduction in food waste for participating businesses who publicty reported data. This equates lo a saving of over £300m of f(JJd1180,000 tonnes). In the Autumn, to find ways lo redistribute more food surplus, we launthed a new initiative to shine a light on food surplus redistribution and convene the stakeholders involved. We hosted a roundlable, in collaboration with Ben Elliot, the UK Government's Food Surplus and Waste Champion, WRAP and the Department for Environment, Food & Rural Affairs (Defral, which led to a commitment from all involved to accelerate progress. February 2020 saw the launch of our new workstream on sustainable packaging systems. We organised a highly successful evenL attended by 70 delegates across the packaging value chain and we also launched new, free resources for the industy. We have now taken the lead in bringing businesses and critical stakeholders together lo create a joint vision for sustainable packaging systems to 2030 and lo mobilise the industry behind a united direction of travel. The first Stage was to facilitate systems thinking workshops that will create a draft vision. ready to publish in the first half of 2021. We have developed new, free. online resources for businesses, to help them understand key issues related to ¢limate change and biodiversity loss. For example, we published a report on the implications of the pandemic on the sustainability agenda, to help companies prepare their response. Through our Technical Leaders Forum, we invited expert5 to discuss The Institute of Grocery Distribution Trustees, Report (including the Strategic Reportl (continued) st For the year ended 31 Decomber 2020 Sustslnablllty (contlnued key challenges, such as the soy supply chain and net zero targets. and we also published a summary on our website to enable more companies to understand these issues. Our focus for 2021 is to make progress on our key workstreams and continue to build our online resources. We also want to capilalise on the COP26 Conference in Glasgow to encourage more people. from more businesses, to take action, highlighting the practical steps that businesses Gan take. Economlc8 We supwrt better strategic planning and decision making. for the benefit of consumers, through our economic anatysis and engagement with policy makers. COVID-19 brought about the biggest challenge to food supply for a generation, requiring greater levels of collal)oration and closer relationships with govemment than ever before. In March. at the height of the pandemic, we helped Defra establish th￿r Food Resilience Industy Forum, which brings together key industy contacts and officials from across government departments to share intelligence and address issues. We have parbcipated in this forum throughout 2020 to help tackle the challenges of COVID-19 and plan for the end of the transition period with the EU. Alongside this, we have continued lo participate in a variety of forurns bringing together industry bodies, goveinmenl departments and olheT experts lo share Intelligen￿ and our relevant research. These include the Department for Transport's Road Haulage Roundlable, the Defra Food Chain Emergency Liaison Group, Defra's Retailer Forum, and the Food and Drink Industry Roundtable. convened by the Food and Drink Federation. We worked closely with Defra and our extensive industry nelwork to initiate emergency parcels lor the clinically extremely vulnerable, as part of the Govemment's National Shielding Programme. Vve also put out a raltying call lo industry to safeguard a consistent suppty to food banks, ensuring some of the most vulnerable people in our society did not go without during the crisis. Through the donath'ons made via IGD to our food redislribution partners, and through Defra's follow-up fund, our industry was able to suppty more than 22.000 pallets to charities and food banks, effectively meeting the original target identified at the start of the pandemic. This made a tangible difference, by serving the needs of those who fety so heavily on food banks for their daily food essentials. Throughout the pandemic, we have developed new ways of supporting the wider industy for the benefit of consumers. All of IGD'S unique research and insights, gathered through engagement with government and industry leaders. in addition to our economic anatysis and shopper data, were made freely available to 811 those who needed it. Our new economics bulletin has over 2,600 subscribers and is providing relevant and timely economic and political news. including the latest on COVID-19 and our relationship with the EU. Through our calls with industry leaders and through our working group meetings, we are regularfy exploring the big picture issues for the food and consumer goods industry that will shape the strategic direction of these businesses. This is supplemented by our deep-dive webinars, which in 2020 focused on planning for the end of the transition penod and have been very positively received. In addition. we continue to act as a key contributoi lo the EU Exit Food Hub, helping food businesses of all svzes prepare for changes in January 2021. In 2020. IGD helped mole than 800 organisalions prepare for the UK'S departure from the EU. In 2021, we will continue to provide ￿noMiC insight, tracking the impact of COVID-19 and ￿8ving the EU, to undeTStand what it means for the food and consumer goods sector. to manage the impacts and protect consumers. We also plan to help industry leaders to look forward, providing insight on other relevant topics such as industy prixluctivity. We will also develop our understanding of new economic models to foster an industry that recognises and demonstrates the value of all types of capital - manufactured, financial, human, social and natural. The Institute of Grocery Distribution Trustees, Report (including the Strategic Report) (contlnued) For the year ended 31bt December 2020 Financial review The source of funding for our charitable activities is profit from our wholly owned trading subsidiary, IGD SeTvices Ltd together with its Iwo overseas subsidiaries. Following the impact of the global Covid-19 pandemic, we quickly migrated our research and content to reflect the new trading environment. Initially we helped our Customers to adjust lo the new trading dynamics, before migrating to more fvture focused insights. As a result, both our Online Insight Services and Membership revenue were up 2¥0 on the previous year. However, our Events and Solutions business were negatively impacted by the restrictions surrounding face to face gatherings and travel. Although virtual allernalwes were success￿11Y introduced, given the disruption caused by the pandemic, it took lime before the industry was ready to migrale to the new offerings. As a result, total trading revenue was down 230A to £13.1 m. We quickly adjusted our cost base which, as covered in the People al IGD section on page 6, s8dty resulted in a number of redundancie5 which helped to mitigate the reduction in revenue_ The operating profrt of the trading sub5idiarie5 was £3.4m down 24% on 2019 after expenditure of£9.9m (2019.. 12.7m). Expenditure on charitable activities was protected but at £3.6m was down 7% on 2019 levels due to a reduction in face lo face actNIty. The net deficit for the year was £0.2m, compared to a £0.6m surplus in 2019. The closing financial position of the Group remains largely in line with 2019 with cash and short-temi bank deposits only falling £0.1m trom 2019 despite the fall in trading revenue. Group reserves The trustees have set a reseNes policy which requires that reserves be maintained at a level which provides financial stability and ensures that IGD'S charitable activilies could continue duTing a period of unforeseen difficulty and that a proportion of reserves be maintained in a readity realisable fomi {°free reseNes"l. The trustees consider free reserves to be the amount of reseNes that are easily ¢onverted into cash should the need arise,. they exclude unrestricted ￿ndS of £2.4m tied up in fixed assets. The trustees assess the reserves policy on an annual basis and have determined that IGD should review the Pevel of reserves in conjun¢tion with IGD'S business plan and its requirement for investment in the future, considering the risks associated with its income stream. As a guide the level of free reserves should be within the range of 3 to 6 months of planned expenditure, and 1 to 2 years of the level of the expected annual gift aid payment from its trading subsidiary, re¢Lwnising that this is the only source of significant income. At 31st December 2020. free reseNes Itolal non-reslricled feserves less fixed assets) were £7.9m12019.. £7.9ml, which equates lo 6.6 months of planned expenditure and 2.6 times the 2020 gift aid paymenl which is marginally ahead of the policy approved by the Board, but given the high level of economic uncertainty. the Board of Trustees are comfortable with the position. The Board considers this to be an appropriate level of cover and the reserves will ensure that further investment can be made in IGD'S charitable programmes and in capital investment lo underpin IGD'S long-term plans. Princi al risks and uncertainties The risks the tharity faces are reviewed as part of our annual business planning cycle. Risks are pr￿rItISed by reviewing the potential impact, together with the likelihood of them txcurring. Mitigating actions are reviewed with owners assigned to those actions. The risk register is reviewed on a regular basis and updated as appropriate and the trustees are provided with uplates on major risks by exception at regular meetings. After taken into account the mltigating controls in place. the following risks, many of which are intedinked. have been assessed to be the major ongoing risks which could impact IGD- Keeping employees safe during the Covid-19 pandemic Ensuring IGD remains relevant and retains the support of its stskeholders Reduction of funds from IGD'S trading subsidiary The impact of Covid-19 on both the industry and IGD'S activities Damage to IGD'S standing and reputation Infomation security breach Econom￿ and geopolitical uncertainty including the end of the EU exit transition period IGD content or event being used to facilitate a breach of competrtion law The Institute of Grocery Distribution Trustees, Report (including the Strategic Report) (continued) For the yoar gndfjd 31$t December 2020 Princi al risks and uncertainties continued The key action lo mitigate external risks is constant monitoring. The annual business planning cycle reviews how the exlemal environment is changing, and these changes are wnsidered in our decision-making and investment planning process. We use our advisory groups to s18y Close to the industry and, when launching new activities, we check that the activities fully comply with the Memorandum of Articles and we fully review the effectiveness of our programmes to ensure we are investing resour￿ appropriately. The business planning cycle reviews every element of our Ir8ding actniitEs lo ensure that they are still relevant and appropriate for the needs of our customers. Financial performance is reviewed on a weekly basis and a revised f0￿caSt for the financial year is completed quarterly so that mitigatsng 8clions can be tsken if perf0m￿nCe is off plan. Procedures have been set lo minimise the risk to our standing and reputation. This includes ensuring staff are appropriately inducted and trained. Policies, including IT security, crtses management and ¢ompetilion law, are in place and contingency plans are in place to minimise the impact in the unlikely event an incident occurs. Subsidia com anies IGD Services Limited is a wholly owned trading subsidiary company of IGD. The aim of this company is to provide sources of funding for our charitable activities. IGD Services Limited has three wholly owned subsidiary companies. IGD Selvices {Canada) Inc. IGD Se￿I￿s (Singapore) Pte. Ltd and IGD Trading Limited lincorporaled in 2019). All three share the aim of providing funding our charitable activities. IGD Trading Limited was incorporated as a company limited by guarantee in the UK in July 2019 and has not traded. Our trading subsidi3ries are trusted pathers to the industry providing unrivalled insight and foresight on the food and onsumer good industry. We give our customers a better understanding of how to unlock success and where our industry is going. Our global insight enables us to deliver unique commercial knowledge and capabilities. We make a difference by gNing our customers the ability to meet everyday challenges and adapt to changing futures. Our Online Insight Services provide international news, ￿searCh and forward thinking so that our customers can get a deeper understanding of industy- Our events portfol￿ brings people together across the industy allowing attendees to gain a deeper understanding of themes impacting their business. Via IGD Solutions our customers Can gain access to our extensive expertise to get the specific business solutions or training they require. 2020 trading was impacted by the global Covld-19 pandemic as restrictions on face-t￿laCe gatherings and travel affected some areas of our portfolio. A large proportion of our offering was already online based. which pul us in strong position, however we had lo cancel all physical events and our IGD Solutions was impacted by the inability to travel plus the uncertainty which our customers foLJnd themselves in. Our Solutions business giadually started to recover in the second half of the year as virtual interactions became the nomi and we also successfully delivered virtual events in the second half of the year. We plan to move forward with a blended model into the fvlure. Peo le at IGD People at IGD are pivotal in all we do. We rely on their knowledge, skills, intellectual rigour and passion for the food and grocery industry. Through our pOI￿leS, practices and remuneration we aim to be a fair employer. Everyone at IGD can pursue stretching goals and develop rewarding careers. In such a competitive and fast-changing world, we continually invest in our people. In 2020 the f￿uS was keeping our colleagues safe in the pandemic. both frDm a physuS and mental wellbeing perspective. We followed the government guidan￿ closely and adopted our working practices quickly to allow our colleagues to work safely and pioduclNely at home. The offKe was adapted to comply with government and best practice guidance and was opened lor those who wanted lo use it as and when govemment guidance allowed. By the end of the year it was fully closed. We increased the level of communication and ran virtual briefing sessions throughout the year to ensure everyone stayed connected. In addition, during 2020, we came together to develop a new Purpose, Brand and Values which went live in January 2021. A new behaviours framework was developed which will be rolied-out The Institute of Grocery Distrlbution Trustees, Report (including the Strategic Report) (continued) For the year ended 31bt December 2020 Peo le at IGD continued throughout 2021. We also delivered a series of Wellbeing and Resilience workshops to help colleagues through the pandemic. Given the Impact the pandemic had on some of our trading activities and how we used the office. we had to adjust our base during the year. Sadly, this resulted in 18 colleagues being made redundant. We fvlly followed best practs'ce as regards consultation with the majority of the consultation undertaken prior to Ihe Summer with most of those impacted leaving IGD in the third quarter. Our sixth annual Your Say staff survey achieved a response rate of 96Yo193Yv LYI. Despite the redundancy programme earlier in the year, the engagement score was up 4 on the previous year at 77 and 5 ahead of the extemal benchmark. The Your Say Forum continues lo provide an effective way for staff to voice their opinions and has been instrumental in understanding what is important to the team in tems of Iheir wellbeing and engagement with IGD. Environmental res onsibili The biggest positive impact we make is via our charitable programmes which include workn'ng with the food and grocery on sustainability and waste. However, we are also conscious of our own activities and impact on the environment and we pkgn to review and implement a new environmental responsibility plan in 2021. Structure overnance and mana ement IGD is a registered charity (registration number 3099391 and is constituted as a company registered in England and limited by guarantee Iregislrab'on number 1056801. Our objeGts and powers are set out in our Memorandum and Articles of Association. The Board of Trustees is responsible for governing the charity. The trustees retire after up to seven years, service. IGD is managed by a senior leadership team and the Chief Executive Officer reports to the h￿steeS. The members of the senior leadership team are listed on page 31. The Nominations Committee oversees the Board's (x)mposition making recommendations to the Board of Trustees in the light of specific criteria and the needs crealed by retirements. Trustee appointments are based on the need for the Board lo have the skills and experience from across the supply chain. and providing the appropriate oversight and scrutiny, govemance and leadefship to IGD in pursuit of its strategies to fulfil its charitable purpose. Al trustee5 undertake an induction programme lo ensure they understand the activities of the charity and their role as a Iru5tee. We have an online document store providing trustees with instant acce&9 to all relevant resources including policEs, minutes and governing documents. Trustees are also appraised annually. The Board of Trustees have adopted a formal schedule of matters reserved for the Board and this is reviewed regularly. The Audit Committee. which is a Comm5tlèe of the Board of Trustees. provides oversight of financial reporting, risk and financial control matters. The Remuneration Committee, which is a Committee of the Board of Twstees, is responsible for overseeing Ihe remuneration for the Chief Executs've and senior leadership team al IGD. The Board of Trustees also has a SuccvJsion Committee which consKlers succession planning for the Chief Executive Officer. Trustees consider the Charity Govemance Code and use it as a tool for deveh)ping best practice to ensu￿ that decisions are grounded in gocd governance. IGD rewards appropriately to attract and retain high calibre indNiduals who have the potential to grow and develop. We also recognise and reward high pertOrrnan￿ so that our standards and values are never compromised. This requires a flexible approach to position our packages competits'vely against a mix of comparators, bul primarily against the industy we represent and recruit from. I packages are benchmarked to provide assurance that reward packages are fair and sel at the level appropriate for the responsibility of each role. Salaries are determined on appointment depending on the relevant external market for the skills and experience required and are reviewed each year considering the exteTnal market (including general pay trends), IGD perforrnan￿ and affordability. All pay and Ixjnus proposals for the Chief Executive and the senior leadership team are approved by the Remuneration Committee. The Institute of Grocery Distribution Trustees, Report (including the Strateglc Report) (continued) For the year ended 31" December 2020 Fundraisin ststement Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising actNlties. Although we do not undertake any fundraising from the general public. the legislation defines fund raising as 'soliciting or otherwise procuTing nK)ney or other property for charitable PUTposes." Such amounts re￿1vable would be presented In our accounts ?s'voluntary income. should we receive any and would include legacies and grants. The charity is not bound by 8ny undertaking to be bound by any regulatory scheme and the charity does not consider it necessary to comply wrth any voluntary code of practi￿ as it does not undertake fundraising from the general public. Goin Concern In assessing the impact of COVID-19 on IGD. the trustees have considered all the matters described in the Trustees. Report, including the group's operations, the impact on trading within the subsidiary companies and our charitable ackn'vities. In particular, in order to support the trustees, assessment of the suslainabilty of the group's actwilies. management has piepared monthly cash-fiow forecasts based on dtfferent scenarios arising from the impact of COVID- 19. The majorty of IGD'S revenue is contracted annually and invoiced upfront, therefore the group has good visibilty of its fr>rward revenues giving rt time to adjust the cost base accordingly should il be necessary, as il did during 2020. However, to provide assurance. a 'worst case. scenario was completed which assumed a 25Yo reduction in revenue vs budgel115% reductson in 2021 to reflect that around a third of income was already contracted by the start of the yearl. This worst case S￿nariO gave assurance that cash reserves would remain F)OSitive for over three years with minimal related cost reductions. As at the date of signing, the trustees are confident that the group will be able to maintain liquidity for a period of at least one year from that dale and will therefore be able to continue to trade as a going concern. Statement of trustees, res onsibilities The names of the trustees who have 2¢ted in the year are given on page 30. The trustees are responsible for preparing the trustees, annu81 report, includillg the strategic reporL and the financial statements in accordance with applicable law and United Kingdom Accounling Standards {Unite(l Kingdom Generally Accepted Accounting Pra¢ti¢e). Cornpany law requires the trustees lo prepare financial statements for each financial year that give a true and fair view of the stsle of affairs ofthe group and the parent charity and of the incoming resources and application of resources, including the nel income or expenditure, of the group for the year. In preparing those financial statements the trustees are required select suitable accounting policies and then appty them consisten￿Y' observe the methods and principles in the Chanties SORP-, make judgements and estimates that are reasonab￿ and pnJdent'. slate whether applicable accounting Standards have been folEowed, subject to any material departures disclosed and explained in the financial statements,. and prepare the financial statements on the going coni*rn basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy al any time the financial position of the group and the parent charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also reswnsible for safeguarding the assets of the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. So far as each of the trustees is aware at the time the report is approved-. there is no relevant audit infonnation of which the company's auditors are unaware- and the trustees have taken all steps that Ihey ought to have tsken lo make themselves aware of any relevant audit information and to establish that Ihe auditotE are aware of that inft)rmation. The Institute of Grocery Distribution Trustees, Report (including the Strategic Report) (continued) For the year ended 31•t December 2020 al and Administrative Infomiation List of Advisors to IGD Audltorn: BDO LLP 55 Baker Street London W1U7EU Bankers: HSBC 60 Queen Victoria Street London EC4N 4TR The Co-operative Bank 3-7 Market StreeL Watford. WD18 OPE CAF Bank 25 Kings Hill Avenue Kings Hill Wesl Malling Kent. ME19 4JQ Lloyds Bank PIC- Treasury Faryners House 25 Monument Street London EC3R 8BQ Solicitorn: Stone King Boundary House 91 Charterhouse Street London EC1M 6HR Slaughter & May 1 Bunhill Row London. EC1Y 8YY Pension Scheme Advisors: One Employee Benefits Sunfield Busines5 Park New Mill Road Finchampstead RG40 4QT Principal Office Address: IGD Grange Lane Letchmore Heath Wattord VVD25 8GD Company registration Thum￿r: 105680 Charty reglstratlon number: 309939 The Institute of Grocery Distribution Trustees, Report (including the Strategic Report) (continued) For thè year ènded 31 Dgcgmbgr 2020 Directors, report The TTUStees' Report incorporates inform3tion required in the Directors. Report for the company under the Companies Act 2006. Auditops A resolution for the reappointment of BDO LLP will be proposed at the forthcoming Annual General Meeting. Tru5tg95 Report {Includlng the Strateglc Report) approved on bphalf of the Board of Trustees: Jill Ross Chaiiman 30 June 2021 10 The Institute of Grocery Distribution Group Statement of Financial Actlvlties (Incorporating an income and expenditure account) For the year ended 311l December 2020 Not•s Total (General Funds) Total (General Funds) 2020 2019 Income and endowments from: Charitable activities Tradiw activities 13,113,115 17.139,351 other income received 114,617 Interest recÈlvable TOTAL 13.263.970 17,199,592 nditure on.. Raising funds 7a 19,866,127) {12,724,3981 Charitable activtbes 7b 3.613,075 3 892 333 TOTAL (13.479.202) {16.616,7311 Net lexpenditurn)fincomo {215,232) 582,861 Taxation (4.786) {23.9231 {Lossllgain on revaluation of overseas Subsidiarfes 1813) 24.727 Net movement In funds 1220.8311 583,665 Reconciliation of funds: Total funds brought fomard 10.492 778 9.909 113 Total funds carrled fonvard 90 10.271947 10 492778 The notes on pages 14 to 26 fonn part of these accwnts. All the above results are derived from continuing activities. There are no other recognised gains or losses other than thosè slated above. The Institute of Grocery Distribution Statement of Financial Position 31It December 2020 Company Number 105680 GROUP COMPANY Notes 2020 2019 2020 2019 FIXED ASSETS Intangible assets Tangible assets Investments 10 10 67,522 2,302,817 176,694 2.450.766 1,984,980 300 000 2,284.980 2.032,585 300,000 2,332.585 2,370,339 2,627,460 CURRENT ASSErs Debtors Short-temi bank tjeposils Cash at bank and in hand 12 3.163.096 4.106,296 8 264 622 3,059,456 4,058,208 8 458 224 4.560.060 7.840,522 3 972 872 15,534.014 15.575.888 8.532,932 9,767,806 Creditors: Amounts falling du8 vAthln one year 13a 17,613.168} 17.699.320) 1553,0611 11,302,351) Nol current assets 7 920 846 7.876.568 7.979.871 Total assgts less CUbTOnt Ilabllfties 10,291,185 10,504,028 10.264.851 10.798,040 Crgdltors: Amounts falllng due after more than one yoar 13b 119.2381 111,2501 Net assets 10 271947 10 492 778 10 264 851 10798040 The funds of the charlty: Unrestricted fund5 Revaluation reserve 8,913.462 1,356,485 9,114,000 1,378,778 8,906,366 1,358,485 9.419.262 1.378.778 Total charfty funds 10 271947 10492778 10 264851 10798 040 The Statement of Financial Actbvities for the year ended 31 De￿mber 2020 for the parent charitable company only was a deficit of £533.189 {2019'. surplus of £198,030). Approved and authorised for issue by the Board of Trustees on 30 June 2021 and signed on its behalf by.. Colin Moss- Trustee and Chair of Audit Committee The notes on pages 14 to 26 form part of these accounts. 12 The Institute of Grocery Distribution Group Ststement of Cash Flows For the year ended 31*t December 2020 Notes 2020 2019 Net cash {used byllgenerated from operatlng actlvltles 14 1108,1521 1,462,030 Cash flows from investing activities: Interest received Purchase of intanglble fixed assets Purchase of tangible fixed assets Proceeds from the sale of tangible fixed assets 36,238 120.2511 {53.3491 60,241 11,3751 {191,313) Net cash from Inveyting activities 137,362} 1132.447) Cash flows from flnanclng actlvltles Transfers to short-term bank depossls 148,088) (32.208) Net ￿$h used in financing activlti 148,088) (32,2081 Changg in cash and cash equlvalents 193602 16 1.297,375 Cash and cash 8qulvalonts atthe bgglnnlng of the year 8.468.224 7.160.849 Cash and cash equlvalents at the end of the year 8.264 622 8 458 224 The notes on pages 14 to 26 fomi part of these accwnls. IGD has taken advantage of the exemption under FRS102 not to prepare a statement of Cash flows for the parent company. 13 The Institute of Grocery Distribution Notes to the financial statements For the ygar gndod 31" December 2020 1. Constitution IGD 1$ 2 ¢ompany limited by guarantee and not having a share capital. In the event of a winding up, the members (who are the trustees) each have a maximum liability of ￿enty-fve pence. 2. Accountlng Pollcles Basls of Accounts The financial slalements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in aceordan¢e with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) {effeclive 1 January 2019) - Charities SORP IFRS 10211, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 20(￿. IGD meets the definition of a public benefit entity under FRS 102. Assets and liabilities are inttialty reeognised at historical cost or transaction value unless otheNise stated in the relevant accounting polw notes. During 2020 the impact of the ongoing COVID-19 pandemic created Un￿rtaInty for IGD and ils subsidiaries. However, although the impact to revenues resulted in a £4m1230kn1 reduction from 2019 revenues, mitigating cost savings meant that the impact to cash (including cash on deposill and rese￿eS was minimal (falling £0.1 m and £0.2m respectively). Budgeting for 2021 and beyond has taken the learnings from 2020 and assumes that the impact of COVID-19 will remain for some lime_ In addition. scenarios were prepared with a reduction vs budgeted income of 25 /D115°A in 2021 given that over a third of income was already contracted al the start of the year). These scenarios gave assurance that cash reseNes would remain positive for several years. Based on the budget, these scenafios and the available liquid resource, the Trustees believe that. while uncertainty exists. this does not pose a material uncertainty Ihal would cast doubt on the charity's ability to continue as a going concem for the foreseeable fLrture, being a period of at least 12 months after the date on which the report and Financial Statements are signed. The Trustees, therefore, consider it appropriate for the accoun15 to be prepared on a going concem basis. Basis of Consolidation The consolidated financial statements have been prepared, uslng the equity method, for IGD and its subsidiary IGD Services Limited together with ils subsidiaries, IGD Services {Canadal Inc. and IGD servI￿s (Singapore) Ple. Ltd. The entity has taken exemption from presenting its unconsolidated profit and Soss account under section 408 of Companies Act 2006. Income Income is the amount receivable for services supplied and from subscriptions for membership, excluding value adijed tax. lthere income is received relating to fvlure events {such as a conference or workshop) il is deferred and treated as a creditor until the event has occurred. Where income is received relating to a fixed period leg a subscription to one of our online services or membership} the amount is allocated across the length of the subscription on a mnthly basis and any portion relating to a fvture period 15 deferred and treated as a creditor. Donations received and fund-raising efforts are shown as income in the year in whi¢h Ihey are receivable. Expenditure ExpendibJre is alloGated between costs of raising funds and costs of charitable activities accordlng to the actual spend for e2¢h category. Expenditure on charitable activities are then further allocated between categories within charitable expenditure on the basis of their function within the Charty. Any such costs where il is not possible to allocate in this way are allocated across the activities in the same proportion as those which are direcuy allocated. Mn)ere costs are gpportioned be￿een these headings a consistent basis is used. All costs are recognised on an accruals basis. Translation of Forelgn Curr8ncias Transactions denominated in foreign currencies are translated into sterling at the rate applying on the date of the transaction. Year end balances stated in foreign currencies are translated into sterling al the relevant Bank of England currency rale on 31* December. All gains and losses on translation of foreign currency amounts are recognised as income or expenditure. 14 The Institute of Grocery Distribution Notes to the financial statements (continued) For the year ended 3151 Decembèr 2020 Accountlng Pollcles (continued) Intanglble Assets Intangible assets relate to website development costs. ￿ere group companies. websites are expected to generate future revenues in excess of the costs of developing those websites and all other capitalisation criteria are met, expendi￿re on the fvnclionality of the website is capitalised and treated as an intangible fixed asset. The capitalised website development costs are subsequently amortised to 'administrative' expenses on a straight line basis over 3 years, except for those that are 'assels under construction,, where no amortisation charge is incurred until the asset is complete. Tanglble Agsets Only assets costing over £300 are capitalised. All fixed assets are stated at cost (or deemed cost in the case of Freehold Property). Depreoalion is calculated lo write off the cost amount of the assets over their estimated useful lives as follows= Land Buildings Building improvements Fixlures and fittings Office machinery & computer sothvare Computer Hardwa Not depreciated 50 years straight line 5 years slraighl line 10 years reducing balance years reducing balance 3 years straight line Impalmient Pollcy Impairment reviews are carrie