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2021-12-31-accounts

nnual Report and Financial Statements For the year ended 31 December 2021 •p II ACTION

Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

Contents

Contents
Page
The context 1
Strategic goals 2
Goal 1: To reduce pesticide use and related harms in the UK 7
Goal 2: To reduce pesticide use and related harms in agriculture 13
internationally
Fundraising review 19
Financial review 20
Reserves policy 20
Going concern 21
Principal risks and uncertainties 21
Structure, governance and management 23
Key management personnel 24
Related parties and relationships with other organisations 24
Public benefit 24
Key people and suppliers 25
Statement of responsibilities of the trustees 26
Independent auditor’s report 27
Financial statements 31

Cover image: Bee on marjoram. Copyright: PAN UK

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

The context

Pesticides impact nearly all life on earth. They are designed to kill pests, but it has been estimated that less than 1% of pesticides actually reach their targets . Pesticide use is increasing globally causing harm to the environment and ecosystems and to human health and farmer livelihoods

It is thought that over 17 million people have been

killed by synthetic pesticides since the green revolution in the 1960s. Even today, 70 years later, about 385 million cases of non-fatal unintentional pesticide poisonings occur every year with approximately 11,000 deaths. Pesticide selfpoisoning makes up 110,000–168,000 (14–20%) of global suicides. Pesticides are also associated with a multitude of serious illnesses including a range of cancers and neurological, immunological, and reproductive disorders.

Pesticides have been identified as one of the key drivers of global biodiversity loss . Direct effects of pesticides have been linked to population reductions of terrestrial insects, aquatic arthropods, organisms responsible for pollination and natural pest control, birds, and others. Study after study is uncovering the role that pesticides play in dramatic pollinator and insect declines. Bird populations are also suffering significant losses, as the populations of farmland and common birds in the UK have fallen by 46% and 10% respectively

Mission

Our mission is to end the harms to human health and the environment from pesticides.

Aims

We aim to:

Objects

Our objects are:

  1. To carry out research into, to gather and disseminate information relating to the manufacture, use, sale and application and effects of pesticides, chemicals, gases anywhere in the world; and

  2. To carry out research into, to gather and disseminate information relating to alternatives to pesticides.

For over 35 years, the Pesticide Action Network UK (PAN UK) has worked to tackle the problems caused by chemical pesticides in the UK and globally.

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

Strategic goals

We completed the process of developing a new strategic plan in 2021 and, in September, this was approved by the Board.

The strategic plan sets out our organisational objectives for the period 2021 to 2025, including interim objectives for 2023 to allow us to track our progress. It also captures our theory of change and the way in which we will work to deliver our objectives. In addition to the main strategic goals, there is also a cross cutting goal associated with information provision to the general public.

Goal 1: To reduce pesticide use and related harms in the UK.

Goal 1: To reduce pesticide use and related harms in the UK. Goal 1: To reduce pesticide use and related harms in the UK.
1.1 UK Governmentputs in place new measures to drive a major reduction in pesticide use by farmers, and
defends against threats to existing pesticide standards arising from EU exit.
By 2023, the UK Government - Puts in place ambitious pesticide reduction targets, and the monitoring
systems required to underpin them.
- Has not signed trade deals which undermine its pesticide standards.
By 2025, the UK Government - Has created a UK standalone pesticide regime that offers at least an
equal level of protection to human health and the environment as its EU
equivalent.
- Has provided UK farmers with subsidies for pesticide reduction and/or
adoption of Integrated Pest Management (IPM).
- Has not signed trade deals which undermine its pesticide standards.
1.2 UK Supermarketstake significant steps to reduce pesticide-related harms caused by their supply
chains.
By
2023, the
majority
of
supermarkets		 - State clearly in their company policies that their aim is to reduce both
pesticide use and pesticide-related harms linked to their global supply
chains.
- Support their suppliers to adopt Integrated Pest Management (IPM) by
providing access to training, guidance documents and bespoke advice.
- Prioritise the development of IPM strategies to replace Highly Hazardous
Pesticides (HHPs) listed on their monitored, restricted and prohibited
pesticide lists.
By
2025, the
majority
of
supermarkets		 - Adopt the PAN International List of HHPs as the basis of their monitored,
restricted and prohibited lists and will have ended the use of some
particularly harmful HHPs throughout their supply chains.
- Have a wide range of measures in place to support their suppliers to
adopt IPM, including functioning grower groups.
- Make their pesticide policies, HHP lists and residue data publicly
available.
- End the sale of synthetic pesticide products.

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

1.3 Local councilsgo pesticide-free as part of a long-term strategy to achieve national ban on urban-
pesticide use.
By 2023 - 150 UK councils have taken action to end, or significantly reduce, their
use of pesticides.
- Local campaigns are active in 120 locations around the UK supported by
PAN UK.
- Two-thirds of London boroughs are pesticide-free.
By 2025 - 250 UK councils have taken action to end, or significantly reduce, their
use of pesticides, including all borough councils in London.
- Local campaigns are active in 200 locations around the UK supported
by PAN UK.
- Widespread support among the public and parliamentarians, and
supportive statements from Government, regarding a national ban on
urban pesticide

Goal 2: To reduce pesticide use and related harms in agriculture internationally

Goal 2: To reduce pesticide use and related harms in agriculture internationally Goal 2: To reduce pesticide use and related harms in agriculture internationally
2.1 International Institutions, national authorities and mechanismssupport the reduction of pesticide
use, the adoption of agroecological methods and the elimination of HHPs in agriculture.
By 2023 - The UN Food and Agriculture Organization (FAO) takes action to reduce
harms from pesticides in agriculture.
- Regulatory action is taken against HHPs in response to evidence of
harm provided by PAN UK or its allies.
- The Convention on Biological Diversity (CBD) and The Strategic
Approach to International Chemicals Management (SAICM) have
recognised harms caused by pesticides and HHPs in particular in their post
2020 strategies.
By 2025 -
Donors,
governments
and
/
or
international
institutions
allocate new resources to eliminating HHPs, reducing use of pesticides
and/or adoption of agroecological methods.
- At least two priority HHPs prohibited by at least two more countries.
- At least 100,000 smallholder farmers in LMICs gain access to PAN UK
training resources / information through extension services, NGOs / CSOs.
- Increased coordinated action by NGO /CSO allies – including PAN
International – towards goals.
- A reduction in use of pesticides and increase in uptake of agroecological
alternatives in the countries in which PAN UK is directly engaged.
2.2 Key international supply chain initiativesprohibit the use of HHPs, reduce pesticide use and promote
the use of alternatives to pesticides.
By 2023 -
Two sustainability initiatives reference the PAN HHP list and adopt
timebound goals for HHP phase out.

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ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

Pesticide Action Network UK

By 2025 -
Four sustainability initiatives have committed to phase out HHPs.
-
Three are actively identifying, promoting and monitoring uptake of
agroecological alternatives to HHPs for specific pests.
-
At least one initiative systematically collects data on pesticide
poisonings as part of its Monitoring & Evaluation work.
-
Agroecological production principles & techniques incorporated into
supply chain initiatives in at least one project country.
2.3 Strengthened evidence baseon pesticide-related harms and alternatives to pesticide use to underpin
PAN UK and others advocacy
By 2023 - Evidence base for economic case for agroecology/reduced pesticide use
has been strengthened.
- Evidence base for biodiversity/reduced pesticide use has been
strengthened.
- Evidence base for health impacts of HHPs has been strengthened.
By 2025 -
UN
institutions
and/or
global
frameworks and
national
policy
documents reference evidence concerning the economic, environmental
and/or health case for agroecology/reduced pesticide use.
- Civil society organisations and allies use evidence in their advocacy and
influencing.

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

How will we achieve the strategic objectives?

Our unique contribution and approach to achieving the strategic objectives is summarised in the diagram below, with the specific activities undertaken in 2021 described on the following pages.

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

Goal 1: To reduce pesticide use and related harms in the UK

Significant achievements and activities 2021

It has been another big year for our national-level work which aims to put in place the measures required to drive a massive reduction in both pesticide use and harms associated to UK farming.

In January, Defra announced its intention to grant an emergency derogation allowing UK sugar beet farmers to use the neonicotinoid thiamethoxam, which was banned in 2018 due to its impact on pollinators. We immediately mobilised a coalition of NGOs and academics to call for the decision to be reversed in a joint letter which was covered by a wide range of media and succeeded in generating a great deal of outrage online. In the end, the Government decided not to grant the derogation.

At the beginning of the year we launched the Pesticide Collaboration, which is jointly hosted by PAN UK and RSPB. The Pesticide Collaboration brings together health and environmental organisations, academics, trade unions, farming networks and consumer groups, working under a shared vision to urgently reduce pesticiderelated harms in the UK. Getting a broad coalition of powerful organisations to speak with one voice on pesticides has already proven to be a game changer.

The UK’s National Action Plan on the Sustainable Use of Pesticides (known as ‘the NAP’), was finally published and went out for consultation in early December 2020. The purpose of the NAP is to drive a reduction in pesticide-related harms and an increase in uptake of Integrated Pest Management (IPM) by UK farmers. Thanks to our years of work to influence the plan, the published draft contained many of our core asks, including a commitment to introduce pesticide reduction targets by 2022. PAN UK, alongside the Pesticide Collaboration, mobilised a huge response to the consultation. A joint civil society response was submitted which was supported by individuals and organisations collectively representing over 3.5 million members, farmers and workers. Defra received an unprecedented 200,000 public petition signatures and 35,000 e-mails, alongside 1,500 full responses

Our work on trade has gone from strength-to-strength. In June, we published the second report in our Toxic Trade series which examined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The report secured traditional media coverage and was also shared on social media by many of our allies, with a total reach of around half a million people. It led to a successful meeting with the UK Government’s Chief Negotiator on CPTPP. The Lords International Agreements Committee pulled out pesticides as one of two concerns related to food standards and CPTPP. We also met with the UK Government’s Deputy Chief Negotiator on India. Shortly afterwards, the media reported that UK-India trade talks had stalled over a number of issues, the key one being pesticide standards.

We organised a parliamentary event in June on trade and pesticides. The event was chaired by the Conservative Chair of the Select Committee on Environment, Food and Rural Affairs and co-hosted by the SNP Chair of the International Trade Select Committee, Labour’s lead on Environment, Food and Rural Affairs and Simon Hoare MP (a Conservative backbencher who has been very vocal on protecting UK food standards from trade deals). The event was a huge success and even just the hosts alone constitute a cross-party group of the most powerful MPs on this topic.

In May, the UK Government announced that a trade deal had been signed with Australia. We were immediately contacted by the Labour frontbench for our analysis and invited to an urgent roundtable. Much of the media

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

coverage about the deal mentioned pesticides. Ensuring that pesticide issues are included in debates around trade and UK food standards (which often focus solely on animal welfare) is a key aim of our trade work.

We have been working hard to influence the UK’s new Environmental Land Management Scheme to ensure that it provides financial support to farmers working hard to reduce pesticide use, as well as those using minimal or zero pesticides. This year, after years of lobbying, we finally secured a written commitment from Defra that the new subsidy schemes will support farmers to adopt Integrated Pest Management. The devil will now be in the detail but finally getting Defra to commit to fund IPM is a big win.

During this period, we have continued to build relationships with a wide range of political targets and make written submissions on all relevant policy processes including Government consultations on water quality, the National Pollinator Strategy, the UK Common Framework between the devolved administrations, the National Food Strategy and the transition to the Environmental Land Management Scheme. We have also made submissions to House of Commons and Lords committee enquiries into various trade deals, including Australia, India, Mexico and Canada.

We also published a range of publications this year including a new briefing on why the UK must maintain its “hazard-based” approach to pesticide management and a report highlighting the impact of herbicide use on pollinators. In November, we launched our annual Dirty Dozen list which collates, analyses and repackages UK Government data on pesticide residues in food. It was covered in a range of media including The Telegraph and brought in 1,000 new subscribers to our mailing list.

Plans for 2022

In 2022, this area of work aims to achieve the following objectives:

Major outputs include; a joint report with the Nature Friendly Farming Network and RSPB examining whether Red Tractor standards are actually driving pesticide reduction, and a technical report laying out options for the UK’s pesticide reduction targets. We will also publish three Toxic Trade reports, co-authored with Sustain and Dr Emily Lydgate from Sussex University, looking at UK trade deals with Brazil, India and a third country. Our annual flagship publication, the Dirty Dozen, will be published towards the end of 2022.

We will be working to influence a range of UK Government policy processes through direct engagement and other advocacy activities, including: responding to the publication of the UK’s National Action Plan on the Sustainable Use of Pesticides (NAP) and follow up work to implement its commitments. We will also be working to ensure that both the binding targets included under the Environment Act, and the pesticide risk reduction targets committed to in the draft NAP are designed in a way which effectively drives a decrease in pesticiderelated harms to human health and the environment. In addition, we will continue to focus efforts on the Environmental Land Management Scheme to ensure that farmers are supported financially to reduce pesticide use and adopt non-chemical alternative, including via Integrated Pest Management. We will make written submissions to a wide range of government and parliamentary consultations, including on the common framework between England, Scotland and Wales, river basin management and all relevant trade deals.

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

September 2022 marks the 60th anniversary of Rachel Carson’s Silent Spring. Alongside the Pesticide Collaboration we will conduct a range of activities highlighting that, sixty years on, pesticide use and harms remain widespread and calling for action.

In January 2022, the UK Government announced a ‘Brexit Freedoms Bill’ which aims to cut so-called ‘EU red tape’. There is a real danger that pesticides standards will be included in this move towards deregulation. We will be working hard to ensure that pesticides standards are excluded from the Brexit Freedoms Bill and therefore maintained.

1.2 UK Supermarkets take significant steps to reduce pesticide-related harms caused by their supply chains

Significant achievements and activities 2021

PAN UK’s four-year supermarkets campaign really took hold in 2021 and has had some big wins. The campaign combines public-facing communications with behind-the-scenes advocacy, with the aim of reducing pesticiderelated harms linked to the global supply chains of the top ten UK supermarkets.

In 2021, we continued to work with the UK’s top ten supermarkets. For example, we fed into the Co-op’s efforts to develop its new pesticide policy which is built around our eight suggested areas of focus. Thanks to our efforts, Co-op made a huge amount of progress in 2021 including ending the sale of all synthetic pesticide products from its gardening and pet ranges. It also met all of our asks on transparency by publishing its full pesticide policy and becoming the first UK supermarkets to publish three years’ worth of data from its residue testing programme. Being able to access residue data enables UK shoppers to make buying decisions aimed at avoiding pesticide residues.

We also continued to make progress with M&S, proving detailed advice on an update to both its general pesticide policy and the lists of which specific pesticides it bans, restricts and monitors from use within its global supply chains. In 2021, M&S banned three additional hazardous pesticides, placed extra restrictions on the use of a further twenty chemicals, and flagged an additional twenty for monitoring. It also followed the Co-op’s example and published residue testing data for the past three years.

Waitrose is also making good progress. It has included PAN UK’s IPM Ladder in its farm assessment materials which are provided to all of its farmers and growers. The IPM ladder details the steps growers can take to move from chemical dependence towards adopting agroecological systems that farm with nature. Thanks to our campaigning, Waitrose also announced that it would end its sale of high-risk pesticide products. As well as providing Waitrose advice on which harmful products to remove, we also advised on its proposed range of nonchemical alternatives. Waitrose also moved the lethal herbicide paraquat onto its black list, which means it is now completely banned throughout its global supply chains (apart from one remaining use on Costa Rican pineapples).

Our work with Tesco has finally yielded a major result. When we ran our survey in 2019, Tesco was one of the few UK supermarkets that did not have lists of pesticides that were monitored, restricted or prohibited from use within its supply chains. We were therefore delighted when Tesco shared its draft lists with us in June and asked us for feedback which we provided. While we did point out some possible improvement, in general the lists are a good start and even go further than other supermarkets in some areas. For example, Tesco has chosen to restrict the use of the three bee-toxic neonicotinoids (banned by the UK in 2019) throughout its global supply chain. Whether this will remain in the final lists remains to be seen.

In addition to working with supermarkets individually, we also ran a series of roundtable events designed to bring their technical staff together to discuss common obstacles and solutions to reducing pesticide harms. We

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

held two roundtable events in 2021 and both were attended by representatives of at least eight of the top ten UK supermarkets. The first took place in February and focused on efforts by UK farmers to reduce pesticide use and how UK supermarkets can best support them. The second roundtable in July focussed on post-harvest storage and transportation issues.

We were approached by WWF regarding their new metric to measure the environmental sustainability of all UK supermarkets. They stated in their email, “We felt that if we were going to do something, we wouldn’t want to duplicate the brilliant work the PAN scorecard has been able to achieve. We recognise that your scorecard is well received by retailers and food businesses, and you are the NGO leaders on pesticides”. WWF’s “Basket and & Retailers’ Commitment for Nature” now points supermarkets towards our ranking as the gold standard.

Following a process of surveying UK supermarkets, in November we launched our 2021 Supermarket Ranking. Unlike our previous ranking in 2019 when Lidl did not participate, this time all ten supermarkets responded. The launch garnered media coverage in mainstream and supermarket industry press, as well as attention on social media.

Plans for 2022

Having launched the public ranking in 2021, in 2022 our supermarkets campaign will focus on behind-thescenes advocacy.

We will continue to conduct bespoke advocacy with supermarkets, including (but not limited to) Waitrose, Coop, M&S and Tesco. This involves providing detailed advice to their technical staff on a range of issues including how to phase out the most hazardous pesticide from their global supply chains and ways in which they can better support their suppliers to adopt non-chemical alternatives. Our advice is provided through a range of methods including regular face-to-face meetings and written submissions

We will also run three roundtable events for the top ten supermarkets. These events ensure that supermarkets’ technical staff hear from key experts in pesticide reduction and IPM (including farmers and growers). The three events will be each focus on a different topic, including how to use biocontrols and issues around reducing pesticide residues in food including testing, reporting and follow-up.

For the past two years we have mobilised the public around World Wildlife Day in March to email supermarket CEOs calling for an end to their sale of synthetic pesticide products. Having already succeeded in getting Waitrose and the Co-op to take action, in 2022, the campaign will target the six supermarkets still stocking these products, namely Asda, Aldi, Lidl, Morrisons, Sainsburys and Tesco.

1.3 Local councils go pesticide-free as part of a long-term strategy to achieve national ban on urban-pesticide use

Significant achievements and activities 2021

The Pesticide-Free Towns (PFT) campaign continued to gather pace in 2021, with increasing numbers of councils and members of the public reaching out to us for advice on how to end urban pesticide use.

In 2021, an additional 25 UK councils went entirely pesticide-free or implemented measures to significantly reduce their use. The list includes Reading, Petersfield, Sheffield, Guildford, Hastings, Cambridge, North Lanarkshire, Midlothian, Renfrewshire and Bath and North East Somerset. We provided direct advice and bespoke guidance to an additional 23 councils on a range of areas, including how to design trials of nonchemical alternatives, what to include in a pesticide policy and assistance drafting council Motions banning pesticide use.

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

Our Pesticide-Free London campaign is also making great strides. Ahead of the London Mayoral elections in May, we directly lobbied the candidates to commit to working towards making London pesticide-free if elected. We also mobilised our own supporters and other London residents to send emails to the Mayoral candidates from all major political parties. The pressure worked and commitments to making London pesticide-free were included in the manifestos of both the Conservative and Green Parties. In response to a question we asked at the London Mayoral Environment Hustings event, candidates from all parties committed to work to phase out pesticides in the Greater London area if elected. In addition, to these city-wide commitments, we also made progress in 2021 with a number of London boroughs including Westminster and Lambeth.

In addition to our direct work with councils, we also mobilise concerned residents to start their own local PFT campaigns. In 2021, we supported the establishment of 17 new local PFT campaigns around the UK including Bath, Hull, Norfolk, Plymouth, Stockport (Manchester), and Glasgow and Peebles. A new campaign started in Birmingham where a petition quickly garnered 95,000 signatures, attracting local media coverage.

In a new strategy for 2021, we linked up local campaigns to work together at the county level in Essex, West Suffolk and South Staffordshire. This is particularly crucial since county councils tend to control pesticide use in a range of areas including pavements and highways.

We supported campaigners around the UK in a range of ways including via regular online Campaigner Catchup events, our very active dedicated PFT Facebook Group which continues to grow, and the PFT newsletter which is published every two months.

Over the summer, we ran a series of online events called ‘Reassembling Our Cities’. Each Wednesday, four speakers from diverse backgrounds joined us in conversation to celebrate, investigate, examine and reimagine our green urban spaces. The aim was to challenge the idea of tidy, weed-free pavements, parks and gardens and to embrace pesticide-free, diverse towns and cities. Over 1,100 people booked tickets, half of which were brand new to PAN UK. These events have enabled us to form relationships with a network of community leaders and social media influencers who are now helping to spread the pesticide-free message on our behalf. They also moved us away from working almost entirely with the ‘usual suspects’ (such as long-established conservation organisations) and into a more radical and diverse space of community activists doing inspiring environmental work on the ground.

In 2021, we also built on our efforts to secure nationwide ban on urban pesticide use from the UK Government. We worked closely with bee expert (and PAN UK Trustee) Professor Dave Goulson to create and promote a petition on the UK parliament website calling for a national ban on urban and garden pesticides. The petition received more than 53,000 signatures and secured coverage in the mainstream press for the often-overlooked issue of urban pesticides.

Plans for 2022

In 2022, we are aiming for an additional twenty local councils to take action to end, or significantly reduce, their pesticide use. We will also continue to build the PFT grassroots movement and by the end of the year aim to be supporting local PFT campaigners in at least 120 locations. We will also continue to work on increasing support for a UK-wide ban on urban pesticide use among government decision-makers.

In terms of ongoing activities, we will continue to provide bespoke advice and guidance to councillors, council staff and other major, urban land managers on how to end pesticide use. We will also continue our successful strategy of linking up these various decision-makers with each other to discuss and explore common opportunities and obstacles to going pesticide-free. On the pubic-facing side of the PFT campaign, we will keep motivating and supporting concerned local residents around the UK to establish and run PFT campaigns via events, newsletters, our Facebook group and through the provision of bespoke advice and support.

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

Due to their high levels of activity and likelihood of being able to affect change, we have prioritised the following areas to focus upon in 2022; Kent, Surrey and Devon. In these areas we will make sure to provide extra support to both councils and local campaigners and connect up local campaigners to work together on making their county pesticide-free.

We will take advantage of the London city-wide council elections in May to advance the Pesticide-Free London campaign. Planned activities include the launch of an investigation into London boroughs’ usage of pesticides, publication of a short guide for campaigners on how to use a local election to advance their PFT campaigns, advocacy work to include a commitment to going pesticide-free in the manifestos of the main political parties and reaching out to London-based, like-minded organisations to mobilise them to join our efforts. Once newly elected councillors are in post, we will run a PFT workshop for them.

With the aim of highlighting the urgent need for a national ban on urban pesticide use, we are planning to launch a new project highlighting the large numbers of pets that are poisoned by urban pesticides. We will continue to push the UK Government directly via our ongoing lobbying work. In 2022, this work will build on commitments made in the final UK National Action Plan on the Sustainable Use of Pesticides. We will also use the European Commission’s recent announcement that it plans to introduce a ban on all urban pesticide use to move the UK Government on the issue.

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

Goal 2: To reduce pesticide use and related harms in agriculture

internationally

Significant achievements and activities 2021

Global chemical pollution is now beyond a level that is consistent with staying within a safe operating space for humanity. The threats to biodiversity, climate, rural livelihoods and human health put agriculture at the nexus of so many of our global crises. These threats are huge, but we also see significant opportunities e.g. in certain global forums, in supply chains and at the national and local levels. Importantly, we are rooted in the on-theground experiences of those affected by the decisions being made. We continue to work closely with our partners to strengthen our projects with farmers in Benin and Ethiopia and to bring frontline voices into policy spaces.

UN agencies

We work on a number of fronts to influence UN FAO and other relevant UN agencies.

At FAO we see increasing corporate influence including formal agreements with CropLife International, an association representing the world’s largest agrochemical companies, and the International Fertiliser Association and a strong policy focus on private sector engagement. The UN Special Rapporteur on the right to food wrote that this “may raise questions of conflict of interest and result in undue corporate influence over international policymaking.” Indeed. We have worked closely with our allies in PAN International to support its campaign against this partnership. The campaign has generated letters from more than 350 civil society organisations and 250 scientists urging the FAO Director-General to stop this toxic alliance as well as a petition of 187,300 signatures by civil society and indigenous people’s organisations. PAN UK’s Director, Keith Tyrell, met with Alex Jones, Director, Resource Mobilization and Private Sector Partnerships Division, FAO, to discuss our concerns and Ilang-Ilang Quijano of PAN Asia Pacific delivered a statement to the 49th Regular Session of the Human Rights Council on the subject. This work continues.

PAN UK enjoys observer status on the FAO/WHO Panel of Experts on Pesticide Management (JMPM), where we have supported proposals for action on HHPs and argued for stronger guidance on controlling risks from the online sale of pesticides and aerial spraying of pesticides. We also sit on FAO’s Steering and Technical Committees on Fall Armyworm control where we argue against the promotion of hazardous pesticides for this important pest over more effective, affordable and sustainable approaches.

We offer technical support to FAO’s regional and national efforts in order to strengthen both policy and practice at this level. In the Caribbean, for example, we contributed a variety of outputs designed to support FAO Caribbean’s programme to reduce the risks posed by Highly Hazardous Pesticides (HHPs), including developing a regional action plan on HHPs which was endorsed by key institutions and stakeholders across the region, and providing information for extension services concerning potential alternatives to priority HHPs. We have also provided technical input on pesticide container management to FAO’s programme in Central Asia and a speaker for an FAO / Rotterdam Convention webinar on alternatives to the deadly herbicide paraquat.

We work with other UN agencies, too. We have contributed to UNEP’s ChemObs programme, for example, to develop a ‘Risk and Vulnerability Calculator’, a decision-making tool designed to help national authorities to assess risks from different chemical pollutants, including pesticides. We are also working with the PAN

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

American Health Organisation, contributing to a WHO regional study of acute pesticide poisoning in the Caribbean.

Regulatory decisions

PAN UK has observer status on the Chemical Review Committee of the Rotterdam Convention. The information produced by this committee is used by many pesticide regulatory authorities around the world as well as supply chain actors. In 2021 we provided interventions to support the listing of several pesticides under the convention. Turbufos and Iprodione were put forward for listing and we have provided comments on the Decision Guidance Documents on these chemicals, which will be presented to the Conference of Parties for a decision in 2022.

We have long-standing links with pesticide regulators in many countries, particularly in Africa and the Caribbean. In 2021, the Trinidadian authorities used information on incidents of acute pesticide poisoning generated by us, with our partners in the University of the West Indies, to begin a regulatory review of several HHPs, which could lead to these pesticides being banned. We have also collaborated with the regulatory authorities plus an NGO (AGENDA) and Muhimbili University of Health and Allied Sciences in Tanzania to conduct a large survey of acute pesticide poisoning among cotton farmers. We have also supported ad hoc requests for information, such as from the state authorities in Tamil Nadu regarding alternatives to several priority HHPs.

In 2021, launched a new project with the University of Edinburgh, Centre for pesticide Suicide Prevention (CPSP), to collaborate on eight new academic papers designed to give pesticide regulators the information they need to ban some of the most toxic pesticides used globally. The first paper will focus on paraquat and collect experience from supply chains, supermarkets and national regulators on useful lessons and experience associated with successfully eliminating this extraordinarily dangerous herbicide.

Convention on Biological Diversity (CBD)

The global rate of species extinction is unprecedented. The drivers of biodiversity loss are many, but numerous scientific studies have highlighted the major role pesticides play. We have teamed up with Third World Network (TWN) to engage in CBD Post-2020 Global Biodiversity Framework (GBF) discussions to set a target on pesticides. We were delighted when the first draft of GBF proposed a target to reduce the use of pesticides globally by two thirds. PAN UK and TWN have been advocating to support this target and add the phasing out of HHPs by 2030. We are also advocating for the need to support these targets with robust, quantifiable indicators.

Supporting smallholder farmers and promoting agroecology

Alongside our work to identify the most harmful pesticides, we also work to offer practical solutions and alternatives that can be taken up or promoted by farmers, regulators, sustainability standards and others. This work is grounded in our partnerships and direct experience through our projects in Ethiopia and Benin, which continue to go from strength to strength.

We work with our partners, PAN Ethiopia, to engage with farming families and communities to enhance yields and incomes, develop diverse and resilient farming systems and protect environmental resources. Over the last three years our trials of methods to enhance biological pest control in vegetables, for example, have shown 50% reductions in pesticide use and a 20% increase in natural enemy diversity with increases in net income and yields.

In 2021, we secured significant new funding over three years to double the scale of the project in Benin and enable our partners at the Organisation Béninoise pour la Promotion de l'Agriculture Biologique (OBEPAB) to reach over 9,000 farmers by 2023. We are also in discussion with the Government of Benin and other agencies regarding options for mainstreaming organic cotton production in Benin. In baseline surveys of conventional

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

and organic cotton producers in Benin in 2021, we found that organically certified cotton farms had a 222% higher net income from cotton than conventional cotton farms during the 2020/21 cotton season. This is a much higher difference than in previous years (increases of 60-90% are more usual). We think the explanation may be largely due to increased use of synthetic fertilisers among conventional growers, which may have led to marginally higher yields (they achieved yields 2% higher than organic growers on average) but the cost of these inputs is very high, leaving farmers much worse off than the organic farmers we support.

Using our experience with farmers and partners in Ethiopia, Benin and elsewhere, we develop tools and training resources that will support other organisations to adopt more sustainable agricultural practices. One of these tools is an ‘IPM ladder’ which can be used to assess where their producers sit in their journey towards integrated pest management (IPM) / agroecological pest management practices, and drive positive steps towards improvement. Two supermarkets have shown interest in the ladder and we have also presented it to a global sustainability standard, which plans to test it on a pilot scale. We have also refined plans for updating practical training resources designed to support the adoption of more sustainable practices by farmers based on established best practice and our partners’ practical experiences in Ethiopia and Benin.

Raising awareness

Over the last year we have engaged in many public forums in order to increase the visibility and impact of our work including engaging with our partners within the PAN International network and presenting to webinars hosted by FAO, the Rotterdam Convention Secretariat, the German NGO Forum on Environment and Development and the SAICM Community of Practice. Dr Alex Stuart – our agroecology project manager – presented in Montpellier to a workshop on reducing pesticide use in tropical agriculture in Montpellier organised by CIRAD and the Agropolis Foundation. We contribute to teaching the Diploma course in Pesticide Risk Management run by Cape Town University and are involved in a network of mainly French and African academics concerned with Pesticides and Politics.

Plans for 2022

In 2022, we will continue to engage with UN agencies and global processes including the CBD and the Rotterdam Convention, both of which will have significant meetings in 2022. We will also work to raise awareness of the links between climate change and pesticide use as we look forward to the UN Climate Change Conference in Cairo (UNFCCC COP 27). We will feed into PAN International efforts to list chlorpyrifos under the Stockholm convention later in 2022, which would lead to bans of this highly hazardous pesticide in all 152 signatory countries.

We will continue to support our partners in Ethiopia and Benin to help a growing number of farmers to achieve benefits from adopting agroecological methods and close monitoring of the impacts of this work and capturing and sharing lessons learned. In particular we will be looking for new support for ‘biodiversity-smart’ villages in Ethiopia, designed to enable whole communities to reduce pesticide use on vegetables and to value ecosystem services. We will also support and encourage partners to engage in national and international policy dialogues.

We will produce several very tangible outputs in 2022, including a revised and updated IPM ladder, new training resources and academic publications on acute pesticide poisoning and HHPs.

2.2 Key international supply chain initiatives prohibit the use of HHPs, reduce pesticide use and promote the use of alternatives to pesticides

Significant achievements and activities 2021

We created a new role of Project Manager (Supply Chains), which was filled in the second half of 2020. This role has become embedded in 2021 and added significant capacity to our efforts to influence supply chain actors

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

to reduce the use of pesticides, particularly HHPs, and to invest in supporting farmers to adopt agroecological practices.

Our key messages to supply chain actors include:

We actively engage with several multi-stakeholder initiatives that aim to support farmers to improve practices, reduce reliance on pesticides and adopt alternatives at scale. Some examples of our work in 2021:

As Chair of the Board of Trustees of the Organic Cotton Accelerator (OCA) in 2021 we have overseen improvements in organisational governance, development of a strategy for growth in India and new countries. OCA is a multi-stakeholder initiative in the organic sector that is developing evidence, resources and a new model for increased investment in farmer support.

PAN UK joined the Council of the Better Cotton Initiative (BCI) in March 2021, representing BCI’s Civil Society members, to champion positive farm-level impact. PAN UK also sits on BCI’s Growth and Innovation Fund.

We have seen a major shift in BCI’s strategy towards impact and a commitment to provide high-quality farmer capacity building through the Better Cotton Growth and Innovation Fund (GIF). Indeed, BCI’s Growth and Innovation Fund is now investing more per farmer and in longer-term projects that we hope will demonstrate success in driving up standards and IPM adoption at farm level. While BCI continues to face some serious challenges, we hope that the changes described offer the opportunity for real improvements for cotton farmers at scale.

We provided training and support to BCI’s operational staff on managing plant protection under the growing climate crisis and on adoption of agroecological cotton production principles, leading to the trials by the BCI India team of a simple soil testing method for farmer participatory learning on soil health. Over 270 Indian cotton extension workers attend PAN UK's agroecological training session.

Global Coffee Platform (GCP) has aligned its HHP criteria with those of the PAN International HHP list and set a target of 2030 for phase-out in coffee production. Our recommendation to establish a working group of experts in sustainable coffee production to help them achieve this was adopted by the GCP Board with the group opening for applications at the end of 2021.

Plans for 2022

We will continue working with supply chain initiatives on setting pesticides standards and supporting farmers to phase-out HHPs and replace them with agroecological alternatives. We will remain active in governance of cotton sector initiatives to ensure as far as possible that strategies for achieving impact are implemented successfully and that the ambition for high-quality farmer support and capacity building remains high.

We continue to engage with the ISEAL IPM Coalition to find ways to drive a significant shift towards sustainable pest management across the 11 standards in the coalition

We will continue to work with sector initiatives to ensure that measurements of pesticide use and any targets set encourage a shift towards HHP elimination and reduced pesticide reliance overall. This includes calling on

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

supply chain initiatives to improve their monitoring and also their understanding of the negative impacts of pesticides on human health, biodiversity and livelihoods.

We will develop practical tools and training resources for the cotton sector to support a transition away from reliance on HHPs towards agroecological alternatives (some of these were mentioned in the previous section). The team will use its extensive contacts to ensure the dissemination and uptake of methods to improve farmer practice.

Significant achievements and activities 2021

Impacts of pesticides on health

With the support of the Laudes Foundation, we have successfully developed an app which is an effective field monitoring tool to enable field staff to collect data from farmers on incidents of acute pesticide poisoning using an Android operated smartphone or tablet. This app provides a valuable addition to our ongoing work to identify HHPs and to alert regulators, supply chain actors and others to the disproportionate harm they cause.

After two years of app development and data collection, we are delighted to now have both a useful data collection tool and a large data set from five countries – Benin, India, Jamaica, Tanzania, and Trinidad and Tobago. The system has worked well even in rural areas with poor connectivity and with the six different languages in which data was collected. Preliminary analysis of the data collected indicates that overall 40% of surveyed farmers reported incidents of acute pesticide poisoning over the previous 12 months. Alongside the app, we have developed a useful dashboard system that allows for the rapid processing of key statistics from the data, such as the % people reporting acute pesticide poisoning and the pesticide products most associated with incidents of poisoning.

Under UNEP’s ChemObs programme we have developed and refined a decision-making tool to help prioritise sites that are contaminated with pesticides and other chemicals, based on the risk to human health and environment. It has been used in nine countries to develop business cases for action to reduce risks from these chemicals.

Biodiversity and environment

The team is identifying simple and practical ways to capture the impact of pesticides on biodiversity. We have initiated work on soil testing in Benin, for example, where soil biodiversity and organic carbon content will be compared between organic land and land under conventional cultivation with pesticides. Apart from laboratory testing, we are also encouraging partners and farmers to undertake the ‘soil your undies’ method. For this method, participants receive a pair of 100% cotton underwear or cloth to bury in topsoil for two months. After this time, the undies are retrieved, photographed, weighed and the level of decomposition recorded. If they have decomposed significantly, there is good biological activity. This indicates healthy soil.

Our partners at PAN Ethiopia are also promoting vermiculture and testing the use of nitrogen-fixing plants, such as alfalfa, to improve soil health and support beneficial insects.

With our partners, we have become very experienced at monitoring ratios of natural enemies to pests in crops, and in finding ways to encourage natural enemies into crops. We have also been in discussions with various potential collaborators to do more work on monitoring impacts of pesticides on bees and other pollinators, which we know can be badly affected by pesticides.

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

Yields and livelihoods

Each of our projects conducts regular surveys to compare pesticide use, practices, yields, net income and other differences between trained farmers and local practice. In 2021, for example, we worked with PAN Ethiopia to collect high quality evidence of the impact of work to help vegetable farmers in the Ziway area of Ethiopia to reduce their use of pesticides.

Farmers in the Lake Ziway area in Ethiopia’s Central Rift Valley use large quantities of HHPs which are damaging their health and the natural resources on which they depend. A survey in 2018 revealed that 20% of farmers and 73% of farm workers recalled at least one incident of pesticide poisoning in the previous 12 months. There is also serious concern for livestock, honey bees, fish and wildlife in this important wetland ecosystem. Over a three-year period, the team has been able to demonstrate the following benefits of IPM methods in vegetable crops:

PAN Ethiopia is using this data in its engagement in national and global policy forums.

Plans for 2022

Now that the health monitoring app has been thoroughly tested and refined it will be launched at a high-profile event in 2022. We will promote the app to organisations that are in a position to use it to generate information to guide their efforts to tackle acute pesticide poisoning. We are already getting enquiries from various organisations regarding using the app, including researchers, sustainability standards, national authorities and UN agencies. We continue to work with our partners to explore the data generated by the app and to expose the evidence of widespread harms caused by pesticides among farmers and farm workers. In the Caribbean, for example, we are working with the University of the West Indies and the Pan American Health Organisation / WHO Americas to publish the data from Trinidad and Jamaica with the intention of feeding into a regional study for WHO on the issue of acute pesticide poisoning. We are also working to support efforts in the region to make notifications to the Rotterdam Convention Secretariat.

We will continue to field test new methodologies to capture data on the impact of pesticides, including continued engagement and partnerships with academic researchers. We will bring this evidence to bear in policy forums, including international processes, engagement with pesticide regulators and policy makers, sustainability standards and supply chain actors. In particular, we will develop new communications resources for actors in the cotton supply chain using strong evidence to demonstrate the benefits of replacing pesticides with agroecological methods.

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

Fundraising review

The majority of our funds are provided by trusts, foundations and institutional donors and these are raised through direct approaches, in response to requests for proposals from these organisations or as unsolicited donations. We raise a small amount of income each year from individual giving. Most of this income is unsolicited although we undertake an annual Christmas appeal designed to increase donations. For this appeal, fundraising communications were sent electronically to existing supporters and social media was used to raise awareness of the campaign. The original communications were followed up once, but we took great care to ensure that we protected the public from undue pressure and persistent communications. No complaints were received regarding the fundraising activity undertaken in 2021 and we are satisfied with the success of this campaign.

We use a supporter database to manage communications, including those related to fundraising, with our supporters. This is a key tool in ensuring the quality and success of our communications.

We are not currently registered with the Fundraising Regulator as this is a relatively minor area of work for us. We have received advice from a fundraising consultant regarding approaches to adopt and how to ensure our fundraising activity is effective and legal.

We have renewed our focus on generating unrestricted income in 2021 and have set up an unrestricted income working group to consider all aspects of this area in more detail. This group has supported fundraising activity that has taken place during the year and has also been used to generate ideas for additional activity or improvements that could take place.

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

Financial review

Our income for the year was £943,228, which was significantly lower than the previous year. This was primarily a result of a decrease in unrestricted income in 2021. This decrease was expected to happen as, in 2020, we received the second tranche of a large legacy plus unrestricted grants from long standing donors in response to the COVID pandemic. Stripping out the one off income items from the 2020 figures shows that our underlying unrestricted income has reduced by around £20,000. This is the result of a reduction in consultancy income from 2020 to 2021.

The majority of our income for 2020 was contracted before the year began and so 2021 has been the first year of funding that has been generated since the beginning of the COVID pandemic. We are pleased that overall levels of funding have broadly held up in the year. Restricted income is slightly lower than in 2020 but this is largely the result of timing differences in receipt of funds.

Total expenditure for 2021 was significantly higher than in 2020 (£949,174 in 2021 compared to £818,635 in 2020). The overall increase is mainly driven by an increase in average staff head count from 9.5 in 2020 to 12.0 in 2021. We were able to increase our head count because of the ability to underwrite the costs of recruitment and initial salary costs from our unrestricted reserves. 2021 also saw lower levels of expenditure than we have historically had on travel costs, costs of holding physical events, etc. as a result of the limitations imposed by the COVID pandemic. This is consistent with 2020 and we expect that this will continue to some extent in the future as a result of what we have learned from our pandemic operations.

Total grants to partner organisations of £296,454 were made in 2021 (£245,632 in 2020). The increase is driven by an increase in grants to Organisation Béninoise pour la Promotion de l'Agriculture Biologique, Benin as a result of securing additional restricted funds for our cotton project there. Grants to partners are made primarily in the context of Goal 2, where we work with local organisations to reduce pesticide use in agriculture in countries outside of the UK. These organisations are partners in the planning and implementation of these activities and are best placed to deliver activities at field level.

The overall increase in expenditure has largely been funded by restricted funds (£864,205 in 2021 compared to £758,045 in 2020) with the remainder funded by unrestricted funds. This has been possible as a result of a successful year in raising restricted funds to support the additional head count and activities.

Overall, we saw a net reduction in funds in 2021 of £5,946 split between a reduction in unrestricted of £12,533 and an increase in restricted funds of £6,587. In addition to using our unrestricted reserves to support an increase in head count, we also provided a grant of £24,000 from our unrestricted funds as bridging funding to one of our partners following the end of a project. This is a specific draw down on unrestricted funds. Without this, we would have presented an increase in unrestricted reserves and so this represents a positive performance in 2021.

Total funds carried forward at the year-end were £890,427, of which £559,594 was unrestricted. These reserves are largely held as cash.

Reserves policy

In 2021, we have undertaken a review of our reserves policy to ensure that the level of reserves held is sufficient to respond to the risks that the organisation faces. The remainder of this section describes the policy adopted.

Reserves are that part of a charity’s unrestricted funds that are freely available to spend on any of the charity’s purposes. These funds are important to a charity because they support the charity in managing the risk of insolvency, service closures, etc. in the event of future financial difficulties.

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

Each year, as part of the annual budget process, we undertake a review of the key risks facing the charity and the range of potential financial impacts of these risks. Once completed, the individual risks and ranges are reviewed together to determine the potential exposure of the organisation and, therefore, the level of reserves that should be held.

Our financial model is based on securing restricted funding to cover organisational and salary costs. This funding is often in the form of large grants of defined length and so there is a risk of funding gaps appearing if a grant ends without an immediate replacement. We manage this risk by seeking to diversify funding streams, seeking out longer term funding and increasing our unrestricted income but we also need to hold reserves to manage any gaps.

In addition to this risk, we also hold reserves to manage the risk of unforeseen operating costs, especially staff costs, and to support the management of working capital on large grants where we have to pre-finance expenditure before receiving the income.

Having made an assessment of the potential financial impacts of these risks and considered how these might materialise, we have determined that we should hold reserves in the range of £320,000 to £470,000. This is roughly equivalent to six to nine months of the total salaries plus core organisational costs budgets.

The current free unrestricted reserves are £559,594 (all unrestricted reserves are free as there are no designations and the net book value of fixed assets is nil), which is considerably above the target range. This is primarily the result of receiving a number of large, one-off, unrestricted income items in 2019 and 2020. We have used the higher levels of reserves to underwrite the recruitment of additional staff in 2019 and 2020. In 2022, we are also planning to use around £50,000 of these reserves to recruit a further member of staff to respond to the many opportunities in the international policy arena. This will bring our reserves more into line with our target range.

Going concern

We have worked hard to develop a strong and resilient organisation and to build unrestricted reserves over recent years. This has been challenging given the difficult funding environment and the difficulties in building an unrestricted reserve whilst being reliant on restricted funding. However, the one-off items of unrestricted income received in recent years, plus strong underlying performance, have helped us to generate healthy unrestricted reserves.

The Board reviews the financial performance of the organisation and future funding on a quarterly basis, based on agreed contracts and estimates of potential future funding based on the best available evidence. Having prepared detailed projections for 2022 and considering what we know already for 2023 – including confirmed contracts and a moderate and realistic estimate from pending funding applications and other sources – the board of Trustees considers that there is adequate funding to continue operating for the next twelve months. The accounts have therefore been prepared on a going concern basis.

Principal risks and uncertainties

The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finance of the charity, and are satisfied that systems are in place to mitigate the charity’s exposure to the major risks. The risk assessment is reviewed regularly at senior management and Board level. In the last two years, the COVID pandemic has featured heavily within the risk register but, as a result of our experiences of the impact of restrictions, this has become less prominent. We have found that, whilst our ways of working have changed, this has not significantly impacted on the risk profile of the organisation.

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

The table below highlights some of the most significant risks that have been identified and the key mitigations that are in place:

that are in place:
Risk Mitigations
Restricted grants end without a replacement lined up. Review of reserves policy to consider appropriate
level of reserves to hold to manage this risk. Focus
on securing funds from new donors and increasing
the number of multi-year grants.
Health, safety or security issues arising during
overseas travel		 New travel policy developed including measures
such as: improved risk assessments, mandatory
travel training, review of corporate travel insurance.
Natural disasters, conflict or disease in project area
prevents effective delivery of projects		 Situations closely monitored with project partners.
Contingency plans considered in project designs.
Engagement with donors on project risks.
Reputation
damage
through
association
with
partners or donors		 All partnerships closely monitored. All financial
relationships with private sector actors approved by
Board.

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

Structure, governance and management

The charity is constituted as a charitable company limited by guarantee, and was set up by a Memorandum of Association on 14 July 1986. It is governed by its Articles of Association as amended by special resolutions of 2 December 2009, 15 February 2000 and 13 April 1989. Legal responsibility for the management and stewardship is vested in the Board of trustees

The Board consisted of nine trustees as at 31 December 2021 (the maximum number is 12). The names of the trustees who served during the year are set out later in this annual report. The Board met five times in 2021.

Decisions of the board are made by consensus. The Executive Director prepares a brief of the issues and decisions required. These may then be discussed with the Chair of the Board and/or the Treasurer of the Board before circulation to the full Board. In cases where a decision is required between Board meetings, all members are circulated with information and feedback given.

The Board delegates the day-to-day running of the charity to the Executive Director, who is recruited and appointed by the Board. The Executive Director reports regularly to the trustees on the financial and operational performance of the charity, and where necessary, other staff report to the trustees on issues appropriate to their work area. The Board has an outline schedule for the meetings held each year that ensures that the Board is able to fulfil its responsibilities.

Recruitment and appointment of trustees

We aim to recruit trustees from organisations which represent the constituencies it seeks to serve (health, environment, development organisations and trades unions), as well as members who will bring specific expertise (e.g. media, financial, management, pesticide-related). Members of the Board give their time voluntarily and are not remunerated beyond repayment of expenses to cover travel to meetings.

The Board has in place a skills matrix which details the skills it has identified as being essential for the governance of the organisation. Each trustee has assessed themselves against each skill and perspective area to identify those areas which are represented poorly and which are strong, which informs the process of recruitment. Other considerations for the Board with respect to trustee recruitment are the social, gender and ethnic mix of the board. This information is used to help guide trustee recruitment strategy. Trustees are sought via PAN UK’s website, through PAN UK’s organisational networks, via trustee and other search websites and occasionally through advertising.

Induction and training of trustees

Once recruited, trustees are required to participate in an induction programme. Each trustee is issued with an induction pack which includes the following documents:

In addition, new trustees are invited to meet with key staff and to visit the offices.

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

A ‘Board update’ is provided to each Board meeting with progress reports and activities of each project, publications, outreach activities, funding and donor news, and relevant organisational matters. Management accounts are also provided at each meeting.

Trustees are encouraged to identify development needs which PAN UK seeks to meet.

Key management personnel

The Trustee Board are responsible for setting pay for key management personnel. Pay for key management personnel will always be discussed and agreed during the Trustee Board meetings. In 2019, the Board approved the creation of a new staff / salary structure including five separate salary bands. The salary bands were benchmarked through comparison with peer organisations and the NICVA pay scale. Each role was assigned to a salary band based on the job description and responsibilities of that role. This includes the key management personnel. These salary bands took effect from 1 January 2020. The salary bands, and individual salaries, have been reviewed at the end of each year and a cost of living allowance increase set. For 2022, a cost of living allowance increase of 4.5% has been approved by the Board.

Related parties and relationships with other organisations

PAN UK plays a significant role in the global Pesticide Action Network (PAN). The global PAN consists of five Regional Centres, located in Africa, Asia and the Pacific, Europe, Latin America and North America. While each of the five Regional Centres is institutionally independent, they maintain regular coordination and collaboration. They have formed an institutional umbrella body ‘PAN Regional Centres’, but it has a limited turnover and does not employ staff. PAN UK has established joint programmes and projects with separate PAN Regional Centres, in particular PAN Africa and its member organisations, and in these cases funds and activities are specified in separate contracts.

PAN UK also seeks to work with other organisations on joint projects, where the projects fit the overall goals of all organisations involved. PAN UK is part of a number of coalitions and multi-stakeholder initiatives, and takes an active role in, for example, Sustain; the alliance for better food and farming, the Global Coffee Platform and the Better Cotton Initiative.

Public benefit

We develop our strategic plans to ensure that we provide public benefit and achieve our objectives. When reviewing our aims and objectives, and in planning activities and setting policies for the year ahead, the trustees confirm they have referred to the guidelines contained in the Charity Commission’s general guidance on public benefit.

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

Key people and suppliers

nd suppliers
Trustees Barbara Dinham, Chair
Edward Moore, Treasurer
Lasse Bruun
Elizabeth Gadd
David Goulson
Sondhya Gupta (appointed 22
February 2022)
Victoria Johnson
Vera Ngowi (appointed 7
December 2021)
Christopher Stopes
Anthony Youdeowei
Company Secretary Keith Tyrell
Registered office Brighthelm Centre
North Road
Brighton
BN1 1YD
Telephone 01273 964230
Website www.pan-uk.org
E-mail admin@pan-uk.org
Company registration number 02036915 (England and Wales)
Charity registration number 0327215
Auditors Goldwins Chartered Accountants
75 Maygrove Road
West Hampstead
London
NW6 2EG
Bankers Co-operative Bank Plc
City Office
80 Cornhill
London
EC3V 3NJ
National Westminster Bank Plc
Brixton Branch
504 Brixton Road
London
SW9 8EB
Triodos Bank
Deanery Road
Bristol
BS1 5AS

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

Statement of responsibilities of the trustees

The trustees (who are also directors of Pesticide Action Network UK for the purposes of company law) are responsible for preparing the Trustees' Report (incorporating the directors’ report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Auditors

Goldwins limited were re-appointed as the auditors of the charitable company during the year and have expressed their willingness to continue in that capacity.

The trustees’ annual report has been approved by the trustees on _____ 2022 and signed on their behalf by;

Barbara Dinham, Chair

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

Independent auditor’s report

To the members of Pesticide Action Network UK

Opinion

We have audited the financial statements of Pesticide Action Network UK (the ‘charitable company’) for the year ended 31 December 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other Information

The other information comprises the information included in the trustees’ annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

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

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than

29

Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Anthony Epton (Senior statutory auditor)

for and on behalf of Goldwins Limited,

Statutory Auditor, Chartered Accountants

75 Maygrove Road, West Hampstead, LONDON, NW6

30

Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

STATEMENT OF FINANCIAL ACTIVITIES (incorporating an income and expenditure account) For the year ended 31 December 2021

Notes 2021
2021 2021		 2020
Unrestricted
funds
Restricted Total
funds funds
£
£
£		 Total
funds
£
Income from:
Donations and legacies
3
Charitable activities:
Goal 1 (UK)
4
Goal 2 (International)
4
Information provision
4
Other trading activities
5
Investment income
6
Total income
Expenditure on:
Raising funds
7
Charitable activities:
Goal 1 (UK)
7
Goal 2 (International)
7
Information provision
7
Total expenditure
Net income / (expenditure)
8
Transfer between funds
Net movement in funds
Total funds brought forward
Total funds carried forward
16

47,549
-
47,549
-
265,602
265,602
33,441
596,325
629,766
-
-
-
148
-
148
163
-
163

81,301
861,927
943,228

487
-
487

22,441
285,324
307,765
59,965
528,022
587,987
2,076
50,859
52,935

84,969
864,205
949,174
(3,668)
(2,278)
(5,946)
(8,865)
8,865
-

(12,533)
6,587
(5,946)
572,127
324,246
896,373
559,594
330,833
890,427

246,836
211,785
638,692
99,000
609
648
1,197,570

291

218,193
543,749
56,402
818,635
378,935
-
378,935
517,438
896,373

All of the above results are derived from continuing activities.

There were no other recognised gains or losses other than those stated above.

The attached notes form part of these financial statements.

31

Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

BALANCE SHEET

As at 31 December 2021

Notes 2021
£		 2020
£
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Cash at bank and in hand
18
Creditors: amounts falling due within one year
13
Net current assets
Net assets
Represented by:
Restricted funds
16
Unrestricted funds
- General fund
16
Total funds		 -
24,622
893,191
917,813
(27,386)
890,427
890,427
330,833
559,594
890,427		 -
1,099
902,674
903,773
(7,400)
896,373
896,373
324,246
572,127
896,373

The financial statements have been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

Approved by the trustees on _____ 2022 and signed on their behalf by

Barbara Dinham, Chair

32

ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

Pesticide Action Network UK

STATEMENT OF CASH FLOWS

For the year ended 31 December 2021

Note 2021
2021
£
£		 2020
£		 2020
£
Net cash provided by / (used in) operating
activities
17
Cash flows from investing activities:
Interest / rent / dividends from investments
Cash provided by / (used in) investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Change in cash and cash equivalents due to exchange
rate movements
Cash and cash equivalents at the end of the year
18		 (9,646)
163
163
(9,483)
902,674
-
893,191		 648 375,078

648
375,726
526,948
-
902,674

33

Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102 - effective 1 January 2015) - (Charities SORP FRS 102) and the Companies Act 2006.

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

b) Public benefit entity

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

c) Going concern

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern. The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

d) Income

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

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Income received in advance for the provision of specified service is deferred until the criteria for income recognition are met.

e) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

f) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

34

Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

g) Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity.

h) Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

i) Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charitable activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities on the basis of staff time.

j) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

k) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £1,000. Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Furniture and office fittings 25% Computer and similar equipment 25%

l) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

m) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

n) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can

35

Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

o) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

p) Pensions

The Company's pension policy is to make a contribution to employees’ pension schemes of 8% of gross salary. The employee can choose to contribute as well. Contributions are recognised as expenditure as they fall due and are allocated between activities and restricted and unrestricted funds in line with staff time spent on these.

36

ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

Pesticide Action Network UK

2 Detailed comparatives for the statement of financial activities Detailed comparatives for the statement of financial activities
2020 2020 2020
Unrestricted Restricted Total
£ £ £
Income from:
Donations 246,836 - 246,836
Charitable activities:
Goal 1 (UK) - 211,785 211,785
Goal 2 (International) 55,164 583,528 638,692
Information provision - 99,000 99,000
Other trading activities 609 - 609
Investment income 648 - 648
Total income 303,257 894,313 1,197,570
Expenditure on:
Raising Funds 291 - 291
Charitable activities:
Goal 1 (UK) 19,025 199,168 218,193
Goal 2 (International) 38,220 505,529 543,749
Information provision 3,054 53,348 56,402
Total expenditure 60,590 758,045 818,635
Net income / (expenditure) 242,667 136,268 378,935
Transfer between funds 9,037 (9,037) -
Net movement in funds 251,704 127,231 378,935
Total funds brought forward 320,423 197,015 517,438
Total funds carried forward 572,127 324,246 896,373
3 Income from donations and legacies
2021 2020
Unrestricted Restricted Total Total
£ £ £ £
Gifts
- Tolkien Trust - - - 80,000
- Esmee Fairbairn Foundation - - - 25,000
- Croudace Homes Ltd - - - 8,000
- Artemis Charitable Foundation - - - 5,000
- John & Susan Bowers Foundation - - - 800
Other gifts 47,549 - 47,549 31,053
Legacies - - - 96,983
47,549 - 47,549 246,836

37

Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

4 Income from charitable activities
2021 2020
Unrestricted Restricted Total Total
£ £ £ £
Goal 1: To reduce pesticide use and related harms in the UK
Arcadia, a charitable fund of Lisbet Rausing and
Peter Baldwin - 80,000 80,000 -
Chapman Charitable Trust - 20,000 20,000 20,000
Esmee Fairburn Foundation - 50,000 50,000 50,000
Farming the Future - 20,843 20,843 42,486
RSPB - 54,759 54,759 -
The Savitri Waney Charitable Trust - 20,000 20,000 -
Tides Foundation - - - 4,049
Tolkien Trust - - - 81,000
Zephyr Charitable Trust - 20,000 20,000 14,250
Total Goal 1 - 265,602 265,602 211,785
Goal 2: To reduce pesticide use and related harms in agriculture internationally
Aid by Trade Foundation - 24,948 24,948 -
C & A Foundation - 45,615 45,615 159,329
University of Edinburgh - 49,677 49,677 -
GIZ - 45,650 45,650 -
IDH - 19,204 19,204 17,735
JJ Trust - - - 40,000
Laudes Foundation - 44,142 44,142 20,944
PAN North America - 35,911 35,911 15,599
Paul Reinhart AG - 62,832 62,832 -
TRAID - 241,679 241,679 238,332
UN Food and Agriculture Organisation - - - 91,493
UN Environment Programme - 26,667 26,667 96
Consultancy 33,441 - 33,441 55,164
Total Goal 2 33,441 596,325 629,766 638,692
Information Provision
Tolkien Trust - - - 99,000
Total Information Provision - - - 99,000
Total Income from charitable activities 33,441 861,927 895,368 949,477
5 Income from other trading activities
2021 2020
Unrestricted Restricted Total Total
£ £ £ £
Publication sales and subscriptions - - - 25
Other trading activities 148 - 148 584
148 - 148 609
6 Income from investments
2021 2020
Unrestricted Restricted Total Total
£ £ £ £
Bank interest 163 - 163 648
163 - 163 648

38

Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

7 Analysis of expenditure

Current reporting period

2020 Total £ 422,878 104,453 245,632 18,741 18,685 8,246 818,635 - - 818,635
2021 Total £ 552,379 54,310 296,454 19,925 17,484 8,622 949,174 - - 949,174 818,635
Governance costs £ - - - - - 8,622 8,622 - (8,622) - -
Support costs £ 72,915 - - 19,925 17,484 - 110,324 (110,324) - - -
Information provision £ 34,570 9,789 - - - - 44,359 7,954 622 52,935 56,402
Goal 2 (Intl) £ 216,546 21,266 296,454 - - - 534,266 49,827 3,894 587,987 543,749
Goal 1 (UK) £ 228,348 22,768 - - - - 251,116 52,543 4,106 307,765 218,193
Cost of raising funds £ - 487 - - - - 487 - - 487 291
Basis of allocation Direct Direct Direct Direct Direct Direct % staff costs % staff costs
Staff costs Direct costs Grants to partners Support costs - rent Support costs - other Governance costs Support costs Governance costs 2021 Total 2020 Total

39

Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

Previous reporting period

2020 Total £ 422,878 104,453 245,632 18,741 18,685 8,246 818,635 - - 818,635
Governance costs £ - - - - - 8,246 8,246 - (8,246) -
Support costs £ 45,968 - - 18,741 18,685 - 83,394 (83,394) - -
Information provision £ 34,941 12,965 - - - - 47,906 7,732 764 56,402
Goal 2 (Intl) £ 173,880 82,011 245,632 - - - 501,523 38,426 3,800 543,749
Goal 1 (UK) £ 168,089 9,186 - - - - 177,275 37,236 3,682 218,193
Cost of raising funds £ - 291 - - - - 291 - - 291
Basis of allocation Direct Direct Direct Direct Direct Direct % staff costs % staff costs
Staff costs Direct costs Grants to partners Support costs - rent Support costs - other Governance costs Support costs Governance costs 2020 Total

Of the total expenditure in 2021, £84,969 was unrestricted (2020: £60,590) and £864,205 was restricted (2020: £758,045). Grants to partners in 2021 includes grants to Pesticide Action Nexus Association, Ethiopia of £103,534 (2020: £102,956), Organisation Béninoise pour la Promotion de l’Agriculture Biologique, Benin of £188,622 (2020: £120,837) and Pesticide Action Network, India of £4,298 (2020: £nil). Grants to partners in 2020 also includes a grant to AGENDA for Environment and Responsible Development, Tanzania of £21,839.

40

Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

8 Net income / (expenditure) for the year

This is stated after charging / (crediting):
Operating lease rentals:
Property
Other equipment
Auditor's remuneration: audit fees
Foreign exchange (gains) / losses		 2021
2020
£
£
19,926
18,741
328
372
4,200
4,200
(3)
1,784

9 Analysis of staff costs, trustee remuneration and expenses and the cost of key management personnel

Staff costs were as follows:
Salaries and wages
Social security costs
Employer’s contribution to defined contribution pension schemes		 2021
2020
£
£
468,802
359,890
46,074
34,197
37,503
28,791
552,379
422,878

The number of employees with employee benefits (excluding employer pension contributions) greater than £60,000 per annum was as follows.

2021 2020
Range No. No.
£60,000 to £69,999 1 1

The total employee benefits (including employer pension contributions) of the key management personnel were £74,542 (2020: £73,440).

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2020: £nil). No charity trustees received payment for professional or other services supplied to the charity (2020: £nil). Charity trustees were reimbursed expenses of £nil during the year (2020: £nil).

Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:

Charitable activities
Support		 2021
2020
No.
No.
10.0
7.5
2.0
2.0
12.0
9.5

10 Taxation

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

41

Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

11 Tangible fixed assets

Cost
At the start of the year
Additions in year
Disposals in year
At the end of the year
Depreciation
At the start of the year
Charge for the year
Eliminated on disposal
At the end of the year
Net book value
At the end of the year
At the start of the year
All of the above assets are used for charitable purposes.
12 Debtors
Trade debtors
Other debtors
Prepayments
Accrued income
13 Creditors: amounts falling due within one year
Trade creditors
Other creditors
Accruals		 Furniture,
fittings and
equipment
Total
2021
2021
£
£
5,021
5,021
-
-
-
-
5,021
5,021
5,021
5,021
-
-
-
-
5,021
5,021
-
-
-
-
2021
2020
£
£
2,080
-
1,600
1,000
99
99
20,843
-
24,622
1,099
2021
2020
£
£
1,800
8,185
1,184
680
18,017
4,920
27,386
7,400

14 Pension scheme

The Company's pension policy is to make a contribution to employees’ pension schemes of 8% of gross salary. The employee can choose to contribute as well. Contributions are recognised as expenditure as they fall due.

42

Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

15 Analysis of net assets between funds

Tangible fixed assets
Net current assets
Net assets at the end of the year
Tangible fixed assets
Net current assets
Net assets at the end of the year
16 Movements in funds
Restricted funds:
Goal 1 (UK)
Goal 2 (International)
Information provision
Total restricted funds
General funds
Total unrestricted funds
Total funds
Movements in funds in
previous reporting period
Restricted funds:
Goal 1 (UK)
Goal 2 (International)
Information provision
Total restricted funds
General funds
Total unrestricted funds
Total funds		 2021
Unrestricted
Restricted Total funds
£
£
£
-
-
-
559,594
330,833
890,427
559,594
330,833
890,427
2020
Unrestricted
Restricted Total funds
£
£
£
-
-
-
572,127
324,246
896,373
572,127
324,246
896,373
At 1 January
Income
Expenditure
At 31
December
2021
& gains
& losses
Transfers
2021
£
£
£
£
£
153,570
265,602
285,324
-
133,848
116,098
596,325
528,022
8,865
193,266
54,578
-
50,859
-
3,719		 2021
Unrestricted
Restricted Total funds
£
£
£
-
-
-
559,594
330,833
890,427
559,594
330,833
890,427
2020
Unrestricted
Restricted Total funds
£
£
£
-
-
-
572,127
324,246
896,373
572,127
324,246
896,373
324,246
861,927
864,205
8,865
330,833
572,127
81,301
84,969
(8,865)
559,594
572,127
81,301
84,969
(8,865)
559,594
896,373
943,228
949,174
-
890,427
At 31
At 1 January Income Expenditure
December
2020
& gains
& losses
Transfers
2020
£
£
£
£
£
149,990
211,785
199,168
(9,037)
153,570
38,099
583,528
505,529
-
116,098
8,926
99,000
53,348
-
54,578
197,015
894,313
758,045
(9,037)
324,246
320,423
303,257
60,590
9,037
572,127
320,423
303,257
60,590
9,037
572,127
517,438
1,197,570
818,635
-
896,373

43

Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

Purposes of restricted funds

Goal 1 (UK)

This is our work to reduce pesticide use and related harms in the UK. This includes engagement with the UK Government, supermarkets and local councils. This work is described in more detail in the annual report.

Goal 2 (International)

This is our work to reduce pesticide use and related harms internationally. To achieve this objective, we work with international institutions, national authorities and key supply chain initiatives. We also act to build the evidence base to encourage action, including the delivery of projects in Benin and Ethiopia.

Information provision

This work raises awareness about the harms caused by pesticides. It is done in various ways, including publishing information booklets, posters and leaflets as well as through our online communications channels.

17 Reconciliation of net income / (expenditure) to net cash flow from operating activities

Net income / (expenditure) for the reporting period
(as per the statement of financial activities)
Interest, rent and dividends from investments
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net cash provided by / (used in) operating activities		 2021
2020
£
£
(5,946)
378,935
(163)
(648)
(23,523)
46,548
19,986
(49,757)
(9,646)
375,078

18 Analysis of cash and cash equivalents

Cash at bank and in hand
Total cash and cash equivalents		 At 31
At 1 January Cash
Other
December
2021 flows changes
2021
£
£
£
£
902,674
(9,483)
-
893,191
902,674
(9,483)
-
893,191

19 Operating lease commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

Less than 1 year
1 – 5 years		 Property
Equipment
2021
2020
2021
2020
£
£
£
£
22,407
18,647
304
304
5,602
4,662
25
25
28,009
23,309
329
329

44

Pesticide Action Network UK ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021

20 Contingent assets or liabilities

There are no contingent assets or liabilities existing.

21 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. Each member is liable to contribute a sum not exceeding £1 in the event of the charity being wound up.

22 Related party transactions

PAN UK is related to Pesticide Action Network Europe (PAN Europe), a company registered in England and Wales, by virtue of the fact that PAN UK is one of the founding members of PAN Europe and currently sits on PAN Europe's Board. PAN Europe's objectives closely relate to PAN UK's objectives and from time to time PAN UK supports PAN Europe's projects by providing administrative support and technical support.

PAN UK paid a €200 membership subscription to PAN Europe in 2021.

45