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Companies House: 06897785
Charity Commission Registration Number: 1130306
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**Annual Impact Report and Consolidated Accounts: September 2024 to August 2025**
2
## CONTENTS
|MESSAGES FROM THE CHAIR AND CEO|3|
|---|---|
|WHAT WE DO|6|
|OUR IMPACT|11|
|FINANCIAL REVIEW|21|
|STRUCTURE, GOVERNANCE, AND MANAGEMENT|30|
|INDEPENDENT AUDITORS’ REVIEW|34|
|FINANCIAL STATEMENTS|37|
|NOTES TO THE FINANCIAL STATEMENTS|41|
3
## A MESSAGE FROM DAME ELLEN MACARTHUR
FIFTEEN YEARS AGO WE SET OUT TO PROVE THAT A CIRCULAR ECONOMY COULD WORK AT SCALE.
Picture it: a handful of people in a small office on the Isle of Wight, setting out to change the global economy. It was ambitious. We built credibility with rigorous, data-backed insights and convened an ambitious network of business and policy leaders. And we started to make waves. Today, the circular economy is an essential part of conversations ranging from climate action and regeneration to economic competitiveness and supply chain resilience.
This progress didn’t happen by accident. It happened because people chose to lead, to see beyond the limits of the linear economy, and to work toward something better. There are the business leaders collaborating with others, the policymakers rewriting the rules, the investors backing new business models, and the designers, researchers, advocates, and innovators working to make the impossible not just possible, but inevitable.
The challenges ahead are real. None of this is easy. Transforming global systems is complex work. But I’ve learnt that when people pull together behind a shared goal and commit to seeing it through, extraordinary things happen.
And they _are_ happening. People are increasingly pulling in the same direction, not in isolation, but together. Not just talking about change, but co-ordinating the action needed to make it happen. This is how systems change. Not through individual heroism, but through collective determination.
The circular economy is not a distant dream. It is happening right now in pockets all over the world. The question now is how fast we can scale it — together.
This is only possible through collaboration. We are deeply grateful to our Strategic Partners, the businesses and policymakers we work with, and our philanthropic supporters for making this work possible.
With that in mind, I invite you to be part of it. Bring your expertise, your conviction, your networks, your resources, and, most of all, your willingness to collaborate with other people who see what you see. Join us.
## _**Dame Ellen MacArthur**_
_Founder and Chair of Trustees, Ellen MacArthur Foundation_
Over the years, belief turned into vision, vision turned into momentum, and momentum turned into real results. Now it’s time for implementation at scale. As an organisation, we are shifting from breadth to depth, from defining the circular economy to directing the focus, investment, and resources needed to deliver global impact.
4
## A MESSAGE FROM CEO, JONQUIL HACKENBERG
THIS YEAR MARKS MY FIRST AS CEO OF THE ELLEN MACARTHUR FOUNDATION, AND IT HAS BEEN A POWERFUL REMINDER OF BOTH THE URGENCY OF OUR WORK AND THE EXTRAORDINARY POTENTIAL OF THE NETWORK WE HAVE BUILT AROUND US.
The world today feels profoundly vulnerable, yet every conversation I have with one of our partners, every event where I talk about our work, confirms my confidence that we are on the right track — that we can build an economy that works better for people and nature.
The circular economy is no longer a fringe idea: it is a blueprint for a resilient future. That resilience is both environmental and economic. As geopolitics shift, supply chains show their cracks, and climate and nature make their way into bottom lines around the world, the circular economy offers a clear way forward. It also offers a narrative and outcomes which are apolitical, which means a pathway forward for a thriving economy, irrespective of whereabouts in the spectrum you sit. And we aren’t the only ones who see it. The momentum is visible in national strategies, investment flows, and new business model innovation. Over USD 400 billion of capital has so far been deployed towards the circular economy.
But momentum alone is not
enough. Even the most ambitious businesses are coming up against barriers they cannot overcome on their own: infrastructure designed for a linear system; incentives that reward extraction over circulation; policy frameworks that lag behind innovation.
What sets the Foundation apart is our ability to connect rigorous, science-based research with the people and partnerships needed to drive action. This enables us to direct action and investment towards circular economy solutions at scale.
In this next phase, a key priority is to help direct investment and resources to break down those barriers. This requires creative new approaches to systemic financing that unlock radically larger capital flows by spreading the risk.
Systems transform when multiple developments occur simultaneously — new business models, enabling infrastructure, supportive policies. Each requires different types of finance deployed in a coordinated way. Maximum impact comes from joining philanthropic support with corporate funding, institutional investment, and other forms of purpose-driven capital.
We are now firmly in an era of implementation, where coordinated action matters more than ever. Now, we must mobilise our network to reshape markets towards a circular transition. The pathway is clear. Our priority now is to focus on the action that will accelerate progress.
My thanks go to our funders, partners, and team for everything we have accomplished so far. The next chapter demands courage, leadership, and focus. Most of all it demands collaboration. Together, we can turn today’s momentum into lasting system change.
## _**Jonquil Hackenberg**_
_Chief Executive Officer, Ellen MacArthur Foundation_
5
## TRUSTEES’ REPORT
The Trustees present their report and the audited financial statements on behalf of the group for the year ended 31 August 2025.
The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ (FRS102) in preparing their annual report and financial statements, and the Trustees’ Report contains the information required in a Directors’ Report as set out in English company law.
The Trustees confirm that they have had regard to the Charity Commission’s guidance on public benefit when reviewing the Foundation’s objectives and activities, and in planning its future work.
6
## WHAT WE DO
## WE ARE A GLOBAL ORGANISATION COMMITTED TO TRANSFORMING THE ECONOMY SO THAT IT WORKS FOR PEOPLE AND THE ENVIRONMENT.
A circular economy offers solutions to some of the world’s biggest challenges — climate change, biodiversity loss, waste, and pollution — by decoupling economic activity from the consumption of finite resources. It gives us the opportunity to grow prosperity, jobs, and resilience while living within planetary boundaries and supporting a just transition.
## OUR PURPOSE
The Ellen MacArthur Foundation exists to help us build a better future — one built on an economy that benefits people, businesses, and the natural world. We do this by working with businesses, policymakers, investors, and other decision-makers to redesign how we make, grow, and use things.
## OUR VISION
A thriving economic system that delivers better outcomes for people and the environment by eliminating waste and pollution, circulating products and materials, and regenerating natural systems.
## OUR MISSION
## **TO ACCELERATE THE TRANSITION TO A CIRCULAR ECONOMY**
## IMPOSSIBLE POSSIBLE INEVITABLE
7
## HOW WE WORK
WE FOCUS ON THREE MUTUALLY REINFORCING LEVERS: SETTING DIRECTION ACROSS VALUE CHAINS, ENABLING COLLABORATION TO SHARE INFRASTRUCTURE AND CO-INVEST IN SOLUTIONS, AND SUPPORTING COLLECTIVE ADVOCACY TO CALL FOR THE POLICY CHANGES THAT LEVEL THE PLAYING FIELD.
Transforming markets also requires strategically deployed funding and investment. Much investment in circular solutions remains fragmented, so we increasingly engage philanthropic funders, development finance institutions, and private investors to support coordinated approaches that align capital with demonstration initiatives and help make them commercially viable. This includes exploring new financing models that combine public, philanthropic, development, and private capital to overcome early-stage barriers and unlock investment at scale.
These are designed to operate together: direction-setting reveals the limits of individual action, collaboration demonstrates what’s possible across stakeholders, and advocacy turns that evidence into policy change.
Policy engagement is key to success. Business action does not scale without enabling policy, and policy development is strengthened by credible business evidence. For this reason, our initiatives are designed to identify where policy ambition and business practice can inform and strengthen each other.
We develop implementation projects in places where they can have a significant impact and where solutions can provide roadmaps for global replication. What works locally is intended to create practical proof points that can inform adoption in other markets and policy environments.
## HOW IT BENEFITS THE PUBLIC
A circular economy is distributed, diverse, and inclusive. It’s a system that can create lasting balance between people, prosperity, and planetary boundaries.
The Foundation’s work contributes to this public benefit by accelerating the transition to a circular economy. Our ultimate beneficiaries are people and communities worldwide who benefit from reduced pollution, lower greenhouse gas emissions, and more resilient economic systems.
We provide this public benefit primarily by working with businesses, policymakers, investors, and other decision-makers. By providing evidence, tools, and convening platforms, we enable these actors to redesign products, services, and policies in ways that minimise waste, circulate materials, and regenerate nature. These benefits are realised at scale through the people and organisations we support and influence, and extend to both present and future generations, particularly those most vulnerable to environmental degradation and resource insecurity.
## 5%
of the global workforce are now employed in sectors that contribute to the circular economy[1]
8
## REFRESHING OUR STRATEGIC APPROACH
THE CIRCULAR ECONOMY IS NO LONGER A FRINGE CONCEPT. IT IS INCREASINGLY RECOGNISED AS A STRATEGY FOR COMPETITIVENESS, SUPPLY SECURITY, AND RESILIENCE.
As the circular economy has grown, the challenge has shifted from vision to delivery. In response, we have sharpened our strategy to focus on what it takes to make change happen at scale, marking a transition from agenda-setting and proof-building towards structured, mission-led implementation. Turning ambition into action requires clear choices about where to intervene, how to remove barriers that hold progress back, and how to unlock market transformation.
Over the past 12 months, we have aligned our organisation around this implementation focus. Building on 15 years of experience convening crosssector networks, we are increasingly directing our efforts towards marketlevel changes. This means working across business and policy to remove barriers and enable circular solutions to compete and grow.
## THREE MODES OF ACTION
Business action will not scale without policy change, and policy will not move without business evidence. Therefore, we only initiate projects with linked policy interventions.
## CHANGING BUSINESSES ONE BY ONE
## TRANSFORMING WHOLE MARKETS
## **EFFECTIVE COLLABORATION**
Join forces to launch joint ventures, share infrastructure, co-invest in solutions to unlock scale, or co-develop new materials, products, and services, reducing risk and cutting costs, all targeted directly at the systemic barriers.
## **DIRECTION SETTING**
Set direction for business action and build alignment along the value chain to both drive progress and reveal the limits of what individual businesses can accomplish alone.
## **COLLECTIVE ADVOCACY**
Support a two-way dialogue where policy decisions shape business action and business experience informs better policy design to influence local, regional, and global policies that create the conditions for scaled implementation.
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PARTNERSHIP IS NOT PERIPHERAL TO OUR WORK.
IT IS THE WORK.
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## OUR MISSIONS
As part of this refreshed strategy, we have organised our work around three focused Missions designed to translate circular economy ambition into practical market change.
Each is at a different stage of maturity, reflecting varying levels of market development and policy readiness, but all are ripe for (and, in many cases, already causing) disruption, and where circular solutions are seen as relevant.
We have completed the core phase of our Food programme. The Circular Design for Food framework and the Big Food Redesign Challenge have demonstrated that circular principles can be applied commercially within the food system, generating measurable environmental improvements and significant international engagement. Having established proof of concept and catalysed market interest, we will conclude dedicated Food programming in June 2026. Over the coming months our priority will be to embed this framework within key actors across the food ecosystem, ensuring that the tools, evidence, and learning developed continue to inform industry practice.
This sharpened focus is reflected in our allocation of resources. During the year, the Trustees reviewed programme priorities, organisational structure, and cost base to ensure that funding, staffing, and leadership focus are aligned with the areas of highest strategic importance.
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PLASTICS AND
PACKAGING
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CRITICAL
MINERALS
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FASHION AND
TEXTILES
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_Transforming the plastics system by addressing the barriers that prevent circular solutions from scaling. We are focusing on enabling reuse, addressing flexible plastic waste, and strengthening collection and recycling infrastructure — creating the conditions for a circular plastics economy that works in practice._
_Redesigning the fashion and textiles market by working with brands and retailers that shape global supply chains and everyday consumer choices, making circular products and services desirable, accessible, and commercially viable._
_Supporting the energy and digital transitions by accelerating circular critical mineral value chains, reducing reliance on virgin extraction through better investment, policy, and collaboration._
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## OUR IMPACT IN NUMBERS
## **6% reduction**
in virgin plastic use between 2018 and 2024 by businesses that joined our Global Commitment, compared to 13% growth across the rest of the market
## **13 leading brands**
have committed to scaling revenue from circular business models through our industry-leading The Fashion ReModel demonstration project
## **2 trillion plastic bags**
equivalent virgin plastic that has been avoided through our efforts[2]
## **4 times faster**
speed The Fashion ReModel participants are growing revenue from resale, rental, repair, and remaking compared to their overall revenue[3]
## **8 million tonnes**
of CO emissions 2 have been avoided by Global Commitment signatories[2]
## **51% of Global Plastics Treaty**
## **coverage**
around the negotiating committee meeting in Switzerland included a quote from the Foundation’s spokespeople
## **100+ countries**
now have circular economy strategies in place
## **50,000+ subscribers**
to our new CEO newsletter
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## PLASTICS AND PACKAGING
## UNLOCKING THE NEXT PHASE OF CHANGE
## WHAT WE DID THIS YEAR
We have contributed to global policy momentum. In collaboration with WWF, we have helped bring together more than 300 organisations through the Business Coalition for a Global Plastics Treaty — an unprecedented show of alignment across the plastics value chain. This year, the Coalition strengthened the business case for an ambitious global treaty by publishing a unique economic analysis, convening highlevel dialogues between governments and businesses, and coordinating communications that elevated the urgency and opportunity of a strong global agreement.
We have supported this momentum across regions, working closely with delegations across Africa, North America, Latin America, Europe, and Asia to ensure the business case for ambitious policy is credible, well understood, and grounded in local priorities. In parallel, governments are advancing action at national and regional levels, including in the EU, where progress towards strengthened circular economy policy frameworks signals growing commitment to system-level change.
## on strengthening collection and
waste management systems in highleakage contexts, addressing financial and practical barriers that limit the establishment of such systems. Designed as a city-level demonstrator with replication in mind, the project aims to generate practical evidence on how coordinated action — across local authorities, businesses, investors, and waste picker organisations — can reduce plastic leakage while creating a self-sustaining model of waste management. Crucially, it will test new approaches to financing infrastructure. Insights from this work will inform future infrastructure development in other regions.
Alongside, we continued to invest in storytelling and media to highlight the opportunities offered by circular solutions, influence decision-making where it matters most, and mobilise an ever-wider set of stakeholders. This included the production of two films, including one focused on reuse, showcasing how these models can scale in practice. Together, these films translate complex systems thinking into accessible stories that engage businesses, policymakers, and wider audiences in accelerating the transition to a circular economy.
## GLOBAL COMMITMENT SIGNATORIES HAVE...
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...AVOIDED 14 GLOBAL MARKET
MILLION TONNES GC SIGNATORIES
OF VIRGIN
PLASTIC USE
+13%
2018-2024
-6%
...TRIPLED THEIR GLOBAL MARKET
RECYCLED
GC SIGNATORIES
CONTENT
+11pp
2018-2024
+1pp
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We’re also supporting on-the-ground implementation with the launch of a place-based infrastructure initiative, starting in Brazil. This work focuses
## “
## **THE PAST 10 YEARS HAVE SEEN OUR** 13 **WORK IN PLASTICS GROW FROM AMBITION TO IMPACT.**
Signatories of the Global Commitment, representing about 20% of the market, have proven progress is possible. They have avoided 14 million tonnes of virgin plastics, the equivalent of almost 2 trillion plastic bags, since 2018. Now, it is time to build on that progress to break down the remaining systemic barriers and for the other 80% of the market to move forward.
## OUR IMPACT
We’ve helped create alignment for globally coordinated priorities. Over the past year, progress towards a Global Plastics Treaty has continued to build, even as negotiations remain ongoing. As the treaty negotiations have matured, our engagement has helped an increasing number of governments agree on the need for binding rules to tackle plastic packaging — the most common type of plastic pollution and one of the clearest examples of the takemake-waste economy.
Our Plastics and Packaging Mission has worked to minimise plastic pollution at its source by redesigning the systems that rely on single-use packaging and products. United through our Global Commitment, leading businesses representing 20% of global plastic packaging have proven progress is possible. Signatories have bent the curve on virgin plastic use, reducing their use by 6% since 2018 — the equivalent of keeping one barrel of oil in the ground every second — while the rest of the market increased it by 13%.
Our 2030 Plastics Agenda for Business set out clear priorities for businesses to break through the systemic barriers we know exist. We are now launching projects across the globe to tackle reuse, flexible packaging, and infrastructure, alongside our plastics policy work. We look forward to continuing our work with businesses, policymakers, and beyond and sharing learnings and progress.”
_**Rob Opsomer**_
_Executive Lead – Plastics and Packaging Mission, Ellen MacArthur Foundation_
## WHAT HAPPENS NEXT
This progress has clarified what is needed to go further. While leading businesses have made significant advances, the other 80% of the market has not kept pace, held back by system-wide barriers. Even market leaders face barriers that they cannot overcome alone: particularly scaling reuse systems, addressing flexible packaging waste and pollution, and establishing effective collection and recycling infrastructure.
The next phase of progress must move beyond pockets of individual leadership to market-wide change. This year, we mobilised leading businesses behind a concrete 2030 Plastics Agenda for Business, translating our extensive work with industry into a practical, focused approach for the next phase. At its core is a shift from individual action to market transformation. While individual business action remains essential, it cannot on its own move the rest of the market or dismantle system-wide barriers, particularly: reuse, flexible plastic packaging, and collection and recycling infrastructure challenges. The 2030 Agenda therefore complements individual action with collaborative action and collective advocacy — enabling businesses to work together, and with governments and civil society, to rebalance incentives and accelerate market-wide change.
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## CRITICAL MINERALS
## SHAPING SMARTER SYSTEMS
## WHAT WE DID THIS YEAR
We are working with market shapers to show what a circular economy looks like in practice. Our partnership with CATL, one of the world’s most prominent EV battery manufacturers, is an early example. Together, we are exploring circular design, material recovery, and system-level opportunities that can influence how the sector develops globally.
In 2025, we launched a dedicated Mission focused on critical minerals to help shape how this system develops. Our Mission focuses on scaling highquality secondary minerals, so they can meet a meaningful share of future demand. This requires more than incremental efficiency: it calls for collaboration to optimise investment, policy, and collaboration across entire value chains.
We’re also developing new approaches to e-waste collection and recovery that can better circulate valuable materials. Our design sprint on e-waste, hosted in New York City with partners including the Circular Electronics Partnership and IDEO, highlighted the significant opportunity e-waste presents as a source of secondary materials, and the need for better connections across the system. From designing devices that are easier to repair and recycle, to giving consumers clearer information that supports longer product lifespans, greater collaboration can help ensure critical materials are recovered and reused at scale.
Our early focus has been on convening the right people and creating a shared direction. By bringing together leaders across value chains, we are helping align efforts where change is both urgent and achievable: notably electric vehicle (EV) batteries and electronics. An action agenda for a circular economy for critical minerals was launched in June at a closed-door event during London Climate Action Week, convening more than 100 leaders from industry, government, finance, and philanthropy, and later took the agenda into key industry forums to build wider momentum. The strong response — including coverage in the Financial Times and Forbes — demonstrated a clear appetite for coordinated, system-level action.
This work is beginning to extend into regional collaboration. Our new partnership with the Commission for Environmental Cooperation (a collaboration between Canada, Mexico, and the USA) is an important first step in identifying areas for collaboration in North America’s electronics sector and will support industry and policymakers to advance circularity, focusing initially on mobile phones.
Demand for some materials is expected to increase by up to **500 percent** by 2040.
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## OUR IMPACT
We’ve highlighted the significant economic and environmental opportunity for circular innovation and investment. Critical minerals are essential to rapidly expanding technologies and demand is set to surge. Materials such as lithium, cobalt, and rare earth elements enable everything from electric vehicles and consumer electronics to renewable energy. Demand for some is expected to increase by up to 500 percent by 2040. At the same time, electronics waste forms one of the world’s fastest growing waste streams, with USD 60 billion worth of products and raw materials discarded each year.
With global demand for critical minerals set to continue rising sharply, the choices made now matter. Today’s linear take–make– waste model cannot meet rising demand without expanding mining into more remote and sensitive areas, accelerating environmental damage and intensifying geopolitical tensions. A circular economy offers a practical and scalable way to meet rising demand without expanding extraction. By keeping minerals in use at their highest value for as long as possible — through better design, reuse, repair, remanufacturing, and high-quality recycling — circular approaches can reduce reliance on virgin materials while strengthening resilience, lowering emissions, and protecting ecosystems.
## WHAT HAPPENS NEXT
We’re building the shared evidence base and cross-value chain networks needed to turn ideas into progress. Our white paper on a circular economy for the EV battery value chain, _Leading the charge_ , sets out high-impact, practical steps and we’re working across the ecosystem to develop collaborative projects that can generate proof points for policy. In electronics, we’re researching secondary markets for rare earth elements and battery metals that will define the economic opportunity and the interventions needed to capture it. We’ll be launching a Circular Tech Advisory Board in 2026 to provide strategic direction for this work. The work across both these entry points will provide a platform for engaging further on other technologies and sub-sectors of the energy and digital transitions, including renewable energy systems.
We’re exploring whether a circular economy can reduce, defer, or in some cases avoid the need for deep-sea mining. As land-based reserves face growing pressure, the deep sea has increasingly been positioned as a new extraction frontier. Environmental impacts remain contested, national and international governance frameworks are unresolved, and the economic case for deep-sea mining has not been tested. By keeping critical minerals in circulation and reducing demand for virgin supply, circular economy strategies offer a credible pathway to meet demand, without opening new frontiers.
The rapid expansion of AI infrastructure presents a critical opportunity to embed circularity before high-volume hardware reaches end of life. The scale and speed of this build-out makes it one of the most important opportunities to embed circularity from the outset. We are working with industry stakeholders and thought partners to understand how circular principles can be designed into data centre specifications and operations from the start, moving the conversation from material recovery to keeping components in use for longer.
“
**CIRCULAR ECONOMY STRATEGIES THAT KEEP CRITICAL MINERALS IN USE ARE CRUCIAL TO MAXIMISE VALUE AND BUILD RESILIENCE AGAINST SUPPLY CHAIN AND PRICE VOLATILITIES.**
There is a shared global challenge in meeting the surging demand for critical minerals in ways that are sustainable, fair, and economically sound.
We are working to make critical mineral value chains circular across multiple sectors, starting with strategically important and high-value materials in EV batteries and electronics.”
_**Wen-Yu Weng**_
_Executive Lead – Critical Minerals Mission, Ellen MacArthur Foundation_
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## FASHION AND TEXTILES
## CHANGING HOW CLOTHES ARE MADE AND USED
## WHAT WE DID THIS YEAR
This year, we focused on what it will take to scale a circular economy for fashion, particularly in circular business models. Our current fashion system is built on speed, volume, and disposability. As a result, millions of tonnes of clothes are produced, worn, and thrown away each year. This approach is not only environmentally unstable, it’s economically fragile. Launched in 2024, The Fashion ReModel addresses a core challenge facing the industry: how can businesses make money without making more clothes? By focusing on revenue, The Fashion ReModel tackles the heart of the challenge. Circular business models such as rental, resale, repair, and remaking will only scale if they are commercially viable. This project starts by working deeply with a small group of leading brands, retailers, and platforms — spanning high-street to high-end and operating across six continents — to increase the share of revenue from circular business models.
Our targeted approach is designed to unlock wider change. By beginning to decouple revenue from production with a core group, The Fashion ReModel is building the evidence, confidence, and shared direction needed to inspire wider adoption and inform policy. The next phase of the project will build on these insights, combining collaborative business action with policy engagement to help circular business models scale faster across the industry. “
Alongside this work, we have continued to inform policy discussions on a circular economy for fashion. Building on our 2024 paper, _Pushing the boundaries of EPR policy for textiles_ , we have shared evidence from industry engagement on how Extended Producer Responsibility (EPR) could support collection, reuse, and recycling at scale — helping create new jobs and industries in the process. Over the last year, we’ve brought these insights into high-level policy discussions, including contributing to work shaping the G7 Agenda on circular textile economies.
## **LAST YEAR MARKED A CRITICAL TURNING POINT FOR THE FOUNDATION’S FASHION AND TEXTILES MISSION.**
The Fashion ReModel is demonstrating that circular business models — rental, resale, repair, and remaking — offer a real opportunity for businesses to become competitive, desirable, and resilient.
These insights confirm that circular business models make commercial sense. But individual action alone is not enough to drive change at scale, which is why our work is now focused on collective advocacy and collaborative action, to go further together.
In parallel, we know that business model innovation is only one piece of the puzzle. Lasting change also requires accelerated progress on design and infrastructure, and our 2040 Agenda and subsequent projects with the Network reflects that broader ambition.”
## _**Jules Lennon**_
_Strategy Lead – Fashion and Textiles Mission, Ellen MacArthur Foundation_
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## OUR IMPACT
We’re proving that circular business models can be part of a competitive business portfolio. From the rapid growth of clothing resale to secondhand retailers staging major runway shows, new models are gaining cultural and commercial traction — yet much of this activity remains limited in reach. The Fashion ReModel, is a clear example of the opportunity that a circular economy for fashion presents. In its first year, participants grew circular business model revenues four times faster than their broader revenue.
We are helping to create the conditions for wider adoption and long-term change. By informing international policy discussions, we are helping to ensure emerging policy reflects real-world business experience and enables circular fashion to scale.
## WHAT HAPPENS NEXT
Overcoming fragmentation is essential to multiplying the impact of everything already underway. The industry doesn’t need more proof of concept without a pathway to scale. This is a genuinely global supply chain — from manufacturing hubs and resource-rich economies in the Global South to the major consumer markets driving regulatory pressure — and the most significant opportunities for change are distributed across it. A credible response has to work across all of them.
The clear next step is a shared direction specific enough to actually change what gets built, funded, and prioritised. We are now developing a 2040 Agenda for Fashion and Textiles: a blueprint everyone can use — not a patchwork of isolated efforts. The Agenda will bring together brands, retailers, platforms, manufacturers, fabric mills, policymakers, investors, and innovators to define the future system we are optimising for and to diagnose, with precision, the systemic barriers across design and materials, circular business models, and infrastructure that stand in the way. From that shared diagnosis, it will develop a clear point of view on the business cases, investment approaches, and policy levers that give businesses, investors, and policymakers the tools to act independently and effectively.
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## REDESIGNING FOOD
## FOUNDATIONS FOR A MORE CIRCULAR FOOD SYSTEM
LAUNCHED IN 2019, OUR FOOD PROGRAMME HAS SHOWN THAT CIRCULAR ECONOMY PRINCIPLES CAN DELIVER ENVIRONMENTAL AND COMMERCIAL VALUE ACROSS FOOD SYSTEMS.
We have equipped food businesses with practical tools to put circular design work into practice. The Challenge was envisaged as a stepping stone to making naturepositive food the norm. Sharing learning has been central to extending the impact of this work. Collaborating with partners including NYU Stern Center for Sustainable Business, we helped articulate how circular design can reduce risk, strengthen resilience, and create long-term value for food businesses. This work goes beyond theory, providing frameworks that support decision-making at board and operational levels.
Through the Circular Design for Food framework and the Big Food Redesign Challenge, we have helped shift the conversation in the food sector — from asking whether food businesses can support nature, to how they can play their part in making it happen.
Our work with leading food businesses showed that circular design for food can succeed in the real world. In 2025, products developed through the Challenge reached supermarket shelves, demonstrating commercial viability alongside improved environmental performance, with an average 18% improvement in nature-related impacts. From individual product innovation — such as a redesigned lasagne developed by COOK — to collaboration with retailers including Waitrose and Tesco, this work has helped bring products integrating circular design to market.
The legacy of the Challenge now lies in embedding these tools and approaches in the wider industry. Rather than remaining a standalone initiative, Circular Design for Food is increasingly being taken up and adapted by other organisations, allowing circular design approaches to travel further. As the Foundation’s Food programme draws to a close, passing this work over to partners is key to enabling the next phase of scale. By sharing evidence, tools, and learning from the Circular Design for Food work, we are supporting advocacy organisations and policymakers to build the right conditions — through incentives and aligned regulation — so circular design can move from early leadership into wider food system change.
Growing consumer awareness is reinforcing the case for change. Interest in regenerative and nature-positive food is rising, alongside a broader understanding of the link between personal health and planetary health. Consumers increasingly see retailers and brands as responsible for improving the environmental footprint of food, and businesses are starting to respond.
## “ We need to work with nature, not against it.
## _**Andy Cato**_
_Co-founder of Wildfarmed, a Challenge participant whose products are now stocked by both Waitrose and Tesco_
“
**THE BIG FOOD REDESIGN CHALLENGE HAS PROVED THAT CIRCULAR DESIGN FOR FOOD IS A REAL SOLUTION, NOT JUST IN THEORY, BUT IN PRACTICE.**
57 producers from 12 countries successfully created 141 products designed to regenerate nature, outperforming food industry averages on climate, biodiversity, and soil health. We have shown that redesigning portfolios with nature in mind isn’t just a niche opportunity, it is a reality and with these products now being stocked at leading retailers, there is a clear signal that the market is ready for food that is better for nature and climate.”
_**Beth Mander** Food Programme Manager, Ellen MacArthur Foundation_
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## POLICY ENGAGEMENT
## SHAPING THE RULES OF THE GAME
POLICY REMAINS ONE OF THE MOST POWERFUL LEVERS FOR SHAPING HOW MATERIALS FLOW THROUGH THE ECONOMY. WHILE BUSINESSES CAN LEAD WITH INNOVATION, THEY CANNOT SHIFT ENTIRE SYSTEMS ON THEIR OWN.
Our role is to connect business experience with effective policy design. We translate insights from practical initiatives into workable policy options that unlock the economics of circular models and give businesses the confidence to invest. By working at the business-policy interface across sectors and systems, we help ensure that policymakers understand what is needed for circular models to succeed, and that businesses are ready to operate and help shape the regulatory frameworks that govern them.
The rules that shape markets — from design standards to fiscal incentives — determine whether circular options grow from promising pilots into mainstream solutions. Each of our Missions depends on clearer rules, stronger incentives, and policies that make circular options easier and more affordable than linear ones.
Globally, action is well underway. Over 100 countries have national circular economy strategies or roadmaps in place, and governments are introducing binding measures that go far beyond waste management, including eco-design rules, recycled content mandates, and EPR schemes. International bodies increasingly treat the circular economy as central to climate, biodiversity, trade, and development policy, reflecting a growing recognition that the circular economy is not just a waste policy framework, but is essential to achieving economic, social, and environmental policy goals. However, while the adoption of circular economy-related policies is expanding, it is still uneven.
Our work in China illustrates how practical insights from business engagement can inform policy development at national level. This year, we provided technical expertise to a national Special Policy Study on circular economy legislation. The Foundation served as deputy lead for the international expert group and several of the study’s recommendations — focused on textiles and including proposals related to eco-design, EPR, and digital traceability systems — were subsequently adopted by the central government.
“
## **THE BIGGEST BARRIER TO SCALE PROBABLY REMAINS THE FACT THAT THE ECONOMICS DON’T STACK UP…**
...because the current model favours volume and consumption. The need to ‘make the economics work’ has been a central pillar of our Universal Circular Economy Policy Goals since 2021. As we pivot our focus to implementation, the issue is driving a lot of our business-policy engagement. The adoption of over 100 national frameworks is a clear sign of mainstreaming; now our job is to help create the right enabling environment for these strategies to thrive within and across borders.”
## _**Joss Blériot**_
_Executive Lead – Policy & Institutions Ellen MacArthur Foundation_
20
We also strengthened our businesspolicy engagement initiatives. A progressive and collective business voice can be a powerful driver of policy change: when companies advocate together for coherent, ambitious rules, they give authorities the confidence to act. The Business Coalition for a Global Plastics Treaty showed how shared positions, strong economic evidence, and vocal support can shape international debate and strengthen the case for bold, harmonised action. Building on this experience, we are increasingly leveraging our credibility and trusted partner status to convene private and public sector actors.
High-profile events and participation in key multilateral processes ensure we keep the circular economy on the international policy agenda. At COP30 in Belém, the circular economy gained increased prominence within climate and nature discussions, with circular economy solutions being tabled at the first-ever discussion of circular economy solutions within both the Mitigation Work Programme and the circular economy theme day, signalling its rising prominence in climate and nature discussions. We also supported South Africa’s G20 Presidency authoring a technical paper on the circular economy and EPR, ensuring it was framed not just as an environmental agenda, but as an industrial and economic development strategy, and engaged with policymakers and industry leaders shaping the EU’s forthcoming Circular Economy Act. This high-level engagement informs product design, material standards, and market conditions in major economies.
During the year, we also completed the Building Prosperity initiative, which explored how circular economy strategies in Europe’s built environment could unlock significant economic opportunity while regenerating nature. The project produced a series of targeted briefing papers for policymakers, businesses, and financial actors, highlighting how this approach could strengthen economic resilience, competitiveness, and the vibrancy of Europe’s cities. This included engagement with key stakeholders such as the United Nations Economic Commission for Europe and the European Commission.
Building on an exploratory project examining economic activity in the Amazon region, we are developing a bio-based materials policy framework in collaboration with the Latin America and the Caribbean Circular Economy Coalition. While bio-based materials are gaining attention, existing policies often treat them simply as substitutes for finite materials, with limited consideration of how they are produced, used, and returned safely to natural systems. The forthcoming paper sets out recommendations to ensure these materials circulate effectively in the economy while reducing environmental risk, helping to shape a more integrated circular bioeconomy.
Bringing about the conditions for the circular economy to scale involves a robust dialogue between businesses and policymakers. A co-creation process.
FIN
22
## FUNDING MODEL
In 2024-25, the Foundation’s income comprised 24% philanthropic funding, 71% corporate donations, 3% investment income and 2% other income, the majority of which (£280k) was from BlackRock. This income comes from a 10% share of net revenue generated by BlackRock’s Circular Economy Fund, where we support the asset manager to interpret circular economy principles and practices to inform the fund’s methodology.
Corporate income and associated operating costs are managed through a wholly independent trading subsidiary. This structure allows us to work closely with the most influential businesses while protecting the independence of our charitable mission. Independence allows us to set ambitious targets and provides the neutrality required to be trusted as a thought-leader in international spaces, such as the G7 and G20.
The Foundation has historically not relied on fundraising from the general public, with the majority of income coming from philanthropic foundations and corporate partners. Fundraising activities are monitored by the Trustees.
## INVESTMENT POLICY
The objective of the Charity’s investment policy is to preserve and, where possible, enhance the real value of its assets by maintaining a balance between returns, risk, and capital volatility. These investments ensure that funds not immediately needed for programme delivery are managed efficiently, generating a return while remaining available to support the Charity’s activities.
The Charity holds funds in an investment portfolio managed by Cazenove. In addition, working capital is held in interest-bearing accounts and short-term treasury instruments, with balances reviewed regularly to ensure sufficient funds.
The Trustees regularly review the Charity’s investment policy.
## **INCOME BY CATEGORY**
**----- Start of picture text -----**
£419,000 £1,418,000
Restricted
£6,628,000
2025
£14,007,000 £5,540,000
Unrestricted
£2,000
**----- End of picture text -----**
**----- Start of picture text -----**
£468,000
£2,839,000
Restricted
2024
£14,641,000
£7,018,000 £4,311,000
Unrestricted
£5,000
**----- End of picture text -----**
Donations Charitable and legacy activities Income from Investments trading operations
## **OVERALL EXPENDITURE**
**----- Start of picture text -----**
£645,000 £66,000
£5,412,000 £6,573,000
Restricted
2025
£20,296,000
£7,600,000
Unrestricted
**----- End of picture text -----**
**----- Start of picture text -----**
£572,000 £285,000
£4,573,000 £6,343,000
Restricted
2024
£19,572,000
£7,799,000
Unrestricted
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Charitable Fundraising activities (Restricted) Charitable Other activities (Unrestricted) Commercial trading operations
23
## INCOME
## IN 2024-25, TOTAL INCOME WAS £14M, A DECREASE OF 4% COMPARED WITH THE PREVIOUS FINANCIAL YEAR.
This is primarily due to lower restricted income, reflecting the completion of several major grants and the timing of funding cycles during a period of strategic refresh.
Restricted income decreased from £2.8m in 2023-24 to £1.4m in 2024-25, largely reflecting the timing of multi-year funding cycles rather than a reduction in programme activity. In particular, the China programme concluded its restricted funding cycle (2025 £0; 2024 £646k) and continues into 2025-26 supported by core unrestricted funding, while plastics funding reduced to £842k (£1.3m in 2024), reflecting the timing of grant income. Additionally, 2023-24 included a number of final income receipts, including for Building Prosperity (£467k), Circular Design for the Amazon (£294k), and Film and Media (£143k), which resulted in higher income in that financial year. Although no new restricted income was recognised for most of these projects in 2024-25, delivery continued as planned, financed by restricted fund balances carried forward from the previous year. This reflects the multi-year nature of these programmes and the planned use of restricted funds. For details of these projects, please see Note 17.
Unrestricted income increased by 7% as a result of new Network signings in the year, while income from charitable activities remained minimal in 2024–25 at £2k (2024: £5k), reflecting occasional speaking engagements and similar activities.
## **INCOME BY FUNDING SOURCE**
Bank, Network, Other, and Philanthropy
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25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
2021 2022 2023 2024 2025
YEAR
Philanthropy Network Bank Other
£ INCOME
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As we transition to our updated strategy and develop new funding partnerships, income levels reflect the natural cycle of concluding and securing multi-year funding agreements. Variations of this kind are a normal feature of our funding model.
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## PHILANTHROPIC
In 2024-25, philanthropic funding decreased slightly, accounting for 24% of income, down from 31% in 2023-24. During the year, we focused on aligning our philanthropic partnerships with our refreshed strategy and laying the groundwork for future funding in new priority areas, such as critical minerals and implementation projects in key regions. Alongside stewarding current relationships, we cultivated a strong pipeline of new opportunities and partnerships, reflecting growing interest in supporting the organisation’s next phase of work.
The wider philanthropic environment remains challenging, with economic uncertainty and shifts in policy and funder priorities affecting all charitable funding, and notably in the climate and environmental sector. In response, we have continued to diversify our funding base, expanding our geographic reach, and strengthen relationships with institutional and individual donors. Shortly after year end, we introduced new public giving channels through digital donation platforms, broadening opportunities for individuals to support the Foundation’s work and helping raise awareness of our charitable mission.
## CORPORATE
Corporate funding remained broadly stable in 2024-25, with over 150 organisations in our Network at different levels of engagement, including 10 Strategic Partners and more than 40 Partners. Overall income declined modestly during the year and
partly reflects the timing of membership and partnership renewals during the year. The composition of the Network shifted slightly over the year, with a greater share of income coming from higher-value partnerships than lower-cost memberships, reflecting our strategic pivot from circular economy awareness to implementation.
This shift is consistent with our evolving approach to working more deeply with partners around the Foundation’s Missions and is already visible in the strength of renewals across the Network. Notably, the majority of businesses in our Plastics Mission came up for renewal during the year, and we successfully increased overall revenue while maintaining the size of the Network. This demonstrates growing demand for deeper, implementation-focused partnerships, alongside new forms of corporate engagement, including collaboration with local businesses on specific projects.
While we remain confident in our direction based on strong feedback from participating organisations, we also recognise that the current volatility of market conditions can place pressures on decision making and investment in partnerships.
## INVESTMENT INCOME
On 1 September 2023, £10m was invested with Cazenove Bank, targeting short-to-medium-term capital growth while supporting liquidity requirements. In 2024-25, this portfolio generated a return of £411k. During the year, £3.5m was drawn down from investments to support programme delivery and working capital requirements, which reduced the amount invested and is reflected in the year-onyear decrease in returns. A significant proportion of the Foundation’s investment balance reflects funds received in advance of expenditure on multi-year philanthropic projects. Investments are therefore managed to balance capital preservation with liquidity, ensuring funds are available as programmes progress. Where future funding and cash flow allow, surplus funds may be reinvested in line with the Foundation’s investment policy.
In addition, the Charity held funds in a Triodos account, which had a balance of £318k at year end and generated interest of £7.5k during the year.
## **PHILANTHROPY INCOME: NORMALISED AND WITH ACCOUNTING ADJUSTMENTS**
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£10,000,000,
£7,500,000
£5,000,000
£2,500,000
0
2021 2022 2023 2024 2025
ACCOUNTING ADJUSTMENTS / NORMALISED
Normalised With accounting adjustments
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_Many of our funding agreements span multiple years. Under accounting standards, income is recognised when contractually committed, rather than when the related work takes place. This can result in the full value of an agreement being recorded in a single year, giving the impression of swings in reported income that do not reflect the timing of project delivery. To provide a clearer picture of our funding over time, this graph shows income both as recorded under accounting standards and on a normalised basis. The normalised view aligns income with project delivery timelines, spreading funding across the period in which activities take place and providing a more consistent picture of our financial position._
25
EXPENDITURE
TOTAL EXPENDITURE IN THE YEAR WAS £20.3M, REPRESENTING A NET INCREASE OF £0.7M (3.75%) ON THE PREVIOUS FINANCIAL YEAR. THIS REFLECTS A COMBINATION OF CHANGES IN PROGRAMME ACTIVITY ACROSS RESTRICTED PROJECTS AND CONTINUED INVESTMENT IN ORGANISATIONAL CAPACITY DURING A PERIOD OF TRANSITION.
## RESTRICTED
Restricted funding expenditure decreased by £1.2m in 2024-25 reflecting the planned completion of multi-year programmes, as outlined in the income section above. For details of these projects, see Note 17.
New restricted projects commencing in 2024-25 included The Fashion ReModel and Making the Business and Policy Case for Circular Design for Food.
As with many multi-year grants, expenditure for some projects continued beyond the period in which income was recognised, supported by restricted funds carried forward.
## UNRESTRICTED
Total unrestricted spending increased by £1.9m (17%) in 2024-25. This primarily reflects the conclusion of several restricted funding cycles during the year. As these projects ended or transitioned, some associated costs were absorbed by core funds to maintain organisational and programme continuity.
of two new team members and internal promotions, enabling dedicated fundraising support for each Mission, alongside a strengthened focus on institutional funding. Additional investment in travel and key events supported engagement with existing and prospective funders. This structure aligns fundraising more closely with our strategic priorities and strengthens our ability to develop long-term funding partnerships. The investment is already supporting new funding opportunities, for example, securing a first philanthropic donation from a UAE-based partner, Clean Rivers.
Staffing costs accounted for 62% of total expenditure, following a period of rapid growth initiated in 2022 and investment in organisational capacity. As part of the strategic refresh, a £500k provision was recognised for restructuring costs, including redundancies, payments in lieu of notice (PILON), and accrued holiday pay.
These changes have reduced the ongoing staff cost base by 15% for 2025-26, ensuring that resources are more effectively deployed to deliver on the organisation’s strategic objectives.
## **EXPENDITURE BY CATEGORY, 2021–2025**
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£10M
£8M
£6M
£4M
£2M
£0
2021 2022 2023 2024 2025
Restricted — Charitable activities Unrestricted — Charitable activities
Fundraising costs Other trading activities Other
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Fundraising costs increased modestly by £73k during the year, due to additional investment in fundraising capacity. This included recruitment
26
## OVERALL FINANCIAL POSITION
Expenditure exceeded income during the year, reflecting planned investment during a period of strategic transition and organisational realignment.
Changes to the organisational structure took place at the end of the financial year, meaning that while the Foundation incurred transition costs, the full savings associated with the new structure will only be realised in future periods. At the same time, the Foundation made targeted investments in new strategic priorities, including launching the Critical Minerals Mission. This investment, supported by a strong reserves policy, ensures the organisation is appropriately structured and resourced to deliver its refreshed strategy and future priorities.
## RESERVES
The Trustees monitor the level of reserves to ensure the Charity remains financially resilient and able to manage periods of income uncertainty. Free reserves are defined as unrestricted funds readily available for general use, excluding fixed assets. The Board’s policy is to hold free reserves equivalent to six to nine months of operating expenditure, which equate to £5.6m–£8.5m. This level is considered appropriate to enable the Charity to manage its financial commitments in the event of unforeseen changes in funding.
We are currently reviewing our reserves policy to revise the methodology used to calculate our free reserves, to ensure they remain proportionate to the needs and circumstances of the Charity and its new strategy.
## GOING CONCERN
The Trustees have assessed the Charity’s financial position, reserves, and cashflow and are satisfied that it has sufficient resources to continue its activities for the foreseeable future. The financial statements have therefore been prepared on a going concern basis.
Unrestricted reserves at year end were £8.6m (2023-24: £10m), of which £5.9m were free reserves, reflecting the net deficit in the year of £1.1m and transfer of funds between restricted and unrestricted. This equates to 6.3 months of operating costs and remains within the Board’s reserves range.
27
KEY RISKS
THE TRUSTEES REGULARLY REVIEW THE PRINCIPAL RISKS FACING THE FOUNDATION DAY-TO-DAY. RISK MANAGEMENT IS LED BY THE CEO, AND THE EXECUTIVE LEADERSHIP TEAM, AND OVERSEEN BY THE BOARD.
The most significant risks currently identified are:
## 1. INCOME STABILITY AND FUNDING MODEL
As an organisation funded primarily through philanthropic income and corporate partnership income, our ability to deliver long-term impact depends on multi-year and stable income. Changes in markets, shifts in funder priorities, or broader economic uncertainty could affect funding levels and the pace of programme delivery.
We mitigate this risk by maintaining a diversified funding base, developing multiyear partnerships where possible, actively managing our funding pipeline, and aligning our reserves policy with our operating risk. Financial forecasts are also reviewed regularly by the Board.
## 3. OPERATIONAL RESILIENCE AND PEOPLE
Delivering our strategy depends on attracting, retaining, and supporting a highly skilled, globally distributed team. Cost pressures, organisational change, or competition for talent could affect our capacity to deliver our mission.
We address this through workforce planning, flexible working arrangements, clear career pathways, performance management processes, and defined accountability structures. During the year, the Foundation implemented an organisational design update along with a formal succession planning process to strengthen leadership continuity and organisational resilience. Organisational performance, staffing trends, and succession planning are reviewed by the Executive Leadership Team and Trustees as part of routine governance.
## 4. GEOPOLITICAL AND POLICY UNCERTAINTY
## 2. REPUTATION AND INDEPENDENCE
Our influence relies on credibility, independence, and trust. Reputational damage or misuse of our brand could reduce our ability to convene stakeholders and shape policy and market outcomes.
We manage this risk through robust due diligence, clear partnership criteria, a conflict of interests policy, and active communications oversight. The Trustees review major partnerships and maintain an oversight of reputation and standing.
The transition to a circular economy depends in part on international cooperation, policy coherence, and constructive engagement between governments and businesses. Shifts in geopolitical relationships, trade dynamics, or regional instability may influence the pace and alignment of policy development and multilateral progress. Such shifts may affect the trajectory and speed of system-level change in certain regions or sectors.
We manage this risk by engaging across a broad range of geographies and political contexts, and grounding our work in robust economic and environmental evidence. By building coalitions across business, policy, and civil society, we aim to ensure that circular economy principles are non-partisan and remain relevant in changing political and economic environments. The Trustees receive regular updates on geopolitical developments relevant to our work.
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## STRATEGIC PRIORITIES AND FUTURE PLANS
## NOW THAT WE’VE PUT THE CIRCULAR ECONOMY ON THE AGENDA, THE EXTERNAL CONTEXT HAS ALSO EVOLVED. THE NEXT TASK IS TO IMPLEMENT IT.
Although progress is visible among leading organisations, adoption across the wider market remains limited with many businesses yet to move beyond pilot activity. Despite momentum, global material extraction continues to increase. The challenge now is not defining the vision, but addressing the structural barriers that prevent circular solutions from scaling across markets.
## IN THE YEAR AHEAD
Across our three Missions, priorities will reflect their stage of maturity. In plastics and packaging, where barriers and enabling policy needs are well established, we will focus on accelerating coordinated implementation and strengthening policy alignment to enable broader market adoption. In fashion and textiles, we will continue to test and refine ways to grow market share of circular business models. In critical minerals, our newest Mission, we will prioritise clarifying system-level barriers, building aligned coalitions, and identifying practical intervention points with pathways to scale.
## OVER THE MEDIUM TERM
Over the next three years, we will work to translate practical experience into broader market adoption, recognising that pace and sequencing will differ across Missions. In more mature areas, this will involve accelerating coordinated implementation and strengthening policy coherence. In earlier-stage areas, it will mean moving from barrier identification to infrastructure collaboration and targeted demonstration initiatives that test how barriers can be addressed in practice. Across all Missions, initiatives will be designed with clear pathways to scale, supported by aligned policy engagement and investment where appropriate. Evaluation and adaptive management will be central, ensuring that learnings inform subsequent interventions and wider system change.
## LONGER-TERM AMBITION
Looking further ahead, our ambition remains to help embed circular economy principles within mainstream market and policy frameworks. By focusing on coordinated implementation and innovation, we aim to contribute to system change that endures beyond individual initiatives.
29
SET DIRECTION (2012-2017)
**2012:** _Towards the circular economy vol 1_
**2016:** _The New Plastics Economy_ , our first plastics report, informs the EU Commission Plastics Strategy
**2015:** _Growth Within_ informs the first EU Circular Economy Action Plan
## **2017:** Join
France’s Circular Economy National Roadmap steering committee
**2016:** UN SDG 12 references circular economy
CREATE MOMENTUM (2018-2023)
**2021:** The African Circular
**2018:** We launch the Global Commitment
Economy Alliance launches to accelerate circular economy in Africa
**2018:** The Plastic Pact Network brings businesses and policymakers together
**2021:** We become a founding member of the Latin America and Caribbean Circular Economy Coalition
**2018:** Our China report sparks government discussions
**2019:** We launch our finance initiative, informing BlackRock’s Circular Economy Fund
**2022:** We obtain official registration in China as an international NGO
**2023:** Support the Brazilian government in its circular economy agenda
**2019:** We join the advisory board for Chile’s circular economy roadmap
**2023:** We receive the Champion of the Earth award, the UN’s highest environmental honour
**2019:** Intesa Sanpaolo launches first circular economy bond, raising EUR 750 million
IMPLEMENTATION (2024-PRESENT)
**2024:** COP28’s **2024:** Brazil Global Stocktake establishes its acknowledges first national circular economy circular economy as climate action strategy
**2024:** More than **2024:** 75 300 businesses national circular call for a Global economy Plastics Treaty roadmaps, as part of strategies, or the Business action plans Coalition are in place worldwide **2024:** We engage in high- **2025:** The Big level policy Food Redesign discussions in Challenge China, following engages 57 our _Triple play_ companies in report 12 countries, creating 141 circular products
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## STRUCTURE, GOVERNANCE, AND MANAGEMENT
## **CHARITABLE OBJECTS**
“TO PROMOTE FOR THE BENEFIT OF THE PUBLIC OF THE CONSERVATION, PROTECTION, AND IMPROVEMENT OF THE PHYSICAL AND NATURAL ENVIRONMENT AND THE PRUDENT USE OF NATURAL RESOURCES; AND TO ADVANCE THE EDUCATION OF THE PUBLIC IN THE CONSERVATION, PROTECTION, AND IMPROVEMENT OF THE PHYSICAL AND NATURAL ENVIRONMENT AND TO PROMOTE STUDY AND RESEARCH IN SUCH SUBJECTS FOR THE PUBLIC BENEFIT AND DISSEMINATE THE USEFUL RESULTS”
The Ellen MacArthur Foundation was registered as a charity in England and Wales on 7 May 2009, and is governed by a Memorandum and Articles of Association as most recently amended on 3 July 2013.
The Charity is formed as a Company Limited by Guarantee, registered in England and Wales, and governed by its Articles of Association. The Company has no share capital although the subscribers of the Memorandum are obliged to pay the sum not exceeding £1 in the event of a winding up of the Charitable Company. The Charity is registered with the Charity Commission for England and Wales, with the Office of the Scottish Charity Regulator and from 1 January 2018 as an ANBI (Algemeen Nut Beogende Instelling) in the Netherlands.
## Charity number: 1130306
Scottish Charity Register number: SC043120 ANBI RSIN number (Netherlands): 8257 45 925 Registered company number: 06897785
## BOARD OF TRUSTEES
The Charity is overseen in the UK by a Trustee Board, which carries ultimate responsibility for management and administration, and which provides oversight and guidance on strategy, governance, finance, and operations. The Board meets a minimum of three times per year. The Trustees are independent — not affiliated with funders or Network members — unpaid, and their overriding purpose is to protect and support the Charity and its mission. Trustees are appointed by agreement of the existing Board of Trustees and provided with an induction and training process. They must have specific skills or knowledge in a sector beneficial to the Charity and its charitable objectives: for example, the current board comprises expertise in sustainability, media, law, technology, and finance.
## EXECUTIVE LEADERSHIP TEAM
Day-to-day executive management of the Ellen MacArthur Foundation lies with the CEO and her appointed Executive Leadership Team, which is responsible for strategy, delivery, and operational systems and processes.
The Trustee Board has delegated specific functions and powers to CEO and other relevant officers.
## Jonquil Hackenberg (CEO)
## Joanne Bootle (COO)
Jocelyn Blériot (Executive Lead – Policy)
Joe Murphy (Executive Lead – Business Network) Jon Ely (Executive Lead – International and Philanthropy) Rob Opsomer (Executive Lead – Plastics and Finance) Danielle Holly (Executive Lead – North America) Wen-Yu Weng (Executive Lead – Critical Minerals) Laura Winn (General Counsel)
The Executive Leadership Team group meets monthly and is supported by a team of functional and Mission Leads, who oversee programme delivery. Mission Leads are accountable for operational performance and financial management within their respective areas, including oversight of budgets and resource allocation.
Portfolio oversight is coordinated through the strategy function, which evaluates projects to ensure alignment with the Foundation’s strategic priorities and assesses feasibility, resourcing, and delivery timelines. This structure is designed to balance strategic coherence with clear accountability for delivery and financial performance.
## Dame Ellen MacArthur (Chair/Trustee)
Peter Morgan (Director/Trustee) Philip Sellwood (Director/Trustee) Michael Lebovitz (Director/Trustee) Hema Patel (Director/Trustee) Laura Winn (Company Secretary)
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## ENVIRONMENTAL, SOCIAL, AND GOVERNANCE
## THE FOUNDATION AIMS TO OPERATE IN A WAY THAT REFLECTS THE PRINCIPLES IT PROMOTES EXTERNALLY.
Our mission to accelerate the transition to a circular economy is inherently connected to environmental sustainability, economic resilience, and social wellbeing. Alongside our programme work, we aim to manage our environmental impact, support our people, and maintain strong standards of governance and accountability across our global operations.
## ENVIRONMENTAL RESPONSIBILITY
We recognise the importance of managing the environmental footprint associated with our activities. We monitor emissions linked to our operations, including travel, events, and office use, and work to reduce these where possible. Hybrid working practices reduce commutingrelated emissions and enable a smaller office footprint while our travel policies prioritise virtual engagement where appropriate and encourage lower-carbon travel options where in-person collaboration is required. As our work increasingly engages partners around the world, we continue to balance the need for face-to-face collaboration with efforts to minimise environmental impact.
During 2025, we closed one of our two Cowes-based offices in response to increased remote and hybrid working patterns, which reduced our digital infrastructure requirements, with the number of active network devices dropping by 62%. We also apply circular principles in areas such as office hardware, for example, by using a Product-as-a-Service (PaaS) leasing agreement for office chairs and tables.
The Foundation operates a largely cloud-based technology approach, supporting collaboration across our global team. Over the 12 months to January 2026, our Google Workspace environment generated a total carbon footprint of 1.1 tCO2e.
Our device management approach focuses on extending product lifespans and keeping equipment in use for as long as possible. Many laptops remain in use for five years or more and mobile devices are procured through refurbished supply where possible. Last year, 94 electronic devices and accessories were returned through this programme, with 80% sold on for continued use, and only 20% requiring external recycling for component-level recovery. No e-waste was sent to landfill.
## SOCIAL RESPONSIBILITY
The transition to a circular economy has the potential to generate new economic opportunities, improve living standards, and support more equitable outcomes. The Foundation aims to reflect these principles both in its external work and its internal culture.
As part of our evolving strategy, we are strengthening the global relevance of our programmes, with particular attention to perspectives and partnerships in the Global South. Ensuring that circular economy solutions are informed by local context is essential to their success.
This approach works in tandem with the continued development of the Foundation’s internal capabilities. We employ almost 200 people from 30+ nationalities bringing diverse expertise and perspectives across our work. All team members are offered wellbeing support through access to online coaching and clinical counselling, delivered in partnership with My Thrive and Hello-Self. We have also extended our learning and development to offer more comprehensive training, including on cultural awareness, diversity, career development, and effective feedback. This is supported by regular performance reviews and a structured learning and development hub. We regularly review and reinforce our employee value proposition.
## GOVERNANCE AND ACCOUNTABILITY
We maintain policies and procedures to ensure transparency, ethical conduct, and effective management. The Board of Trustees and Executive Leadership Team regularly review operations to ensure the Foundation operates effectively and in line with its charitable objectives. The revised Charity Governance Code was released in October 2025, and we are currently reviewing the revised principles to ensure our own practices continue to meet the expected standards.
Robust governance also extends to how we manage data and technology. Our cloud platforms reduce reliance on physical hardware while enabling a lower-footprint, flexible operating model aligned with circular economy principles. Data protection and information governance are managed in accordance with UK GDPR and the Data Use & Access Act 2025, supported by robust policies, staff training, and processes to ensure responsible handling of personal and organisational data. Our commitment to cyber security is demonstrated through Cyber Essentials certification, which we have held for two consecutive years and are preparing to renew for a third, providing assurance to our partners and funders that we meet recognised national standards for cyber hygiene.
32
## STATEMENT OF RESPONSIBILITY OF THE TRUSTEES
The Trustees are responsible for their annual report and the preparation of financial statements in accordance with applicable law and UK Generally Accepted Accounting Practice.
Company and charity law requires the Trustees to prepare financial statements for each financial year. Under company law the directors must not approve financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of the surplus or deficit of the Charity for that year. In the preparation of those financial statements, the Trustees are required to:
- select suitable accounting policies and ensure they are applied consistently
- make judgements and estimates that are reasonable and prudent
- ensure that the financial statements are prepared on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for ensuring that the Charity keeps proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and which enable them to ensure that the financial statements comply with the Companies Act 2006 and with the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). They also have responsibility for ensuring that the Charity has appropriate systems and controls (financial and otherwise) and that reasonable steps are taken for safeguarding the assets of the Charity and for the prevention and detection of fraud and other irregularities.
## REMUNERATION
Our pay and benefit principles:
- Equitable
- Market-informed
- Personal
- Differentiated
- Transparent
- Well-governed
- Sustainable
The Executive Leadership Team is responsible for considering, agreeing, and overseeing the overall remuneration philosophy and policy of the Foundation. The COO holds overall accountability and ownership for pay and benefits and provides oversight of remuneration decisions and recommendations. Country Leads share this responsibility within their jurisdictions to account for regional variations. Recommendations for salary changes are evaluated against internal considerations (organisation structure, competencies, performance, affordability) and external factors (market benchmarks, cost of living assessments).
Any CEO and COO salary adjustments and bonuses are discussed and agreed by the Trustees.
## OUR APPROACH TO ETHICAL FUNDRAISING
We carefully vet our philanthropic partners to ensure value and mission alignment, and work to build long-term partnerships with organisations that understand system change. Donations are only accepted following a robust due diligence process. We have established policies to help ensure we comply with the law, ethical standards, and best practice, and help us protect our reputation — for example our Conflicts of Interest Policy explains how potential conflicts are identified and managed, and our Due Diligence Policy sets out the process for carrying out due diligence in order to assess and manage potential counterparty risks. We have never received any formal complaints in relation to our fundraising practices.
As the Fundraising Regulator introduced a new Code of Fundraising Practice in November 2025, we are currently reviewing the updated requirements to assess the impact on our fundraising activities and ensure our practices remain fully compliant.
8 May 20261
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## SUBSIDIARIES AND BRANCHES
As a charity with a global mission, the Ellen MacArthur Foundation forms an umbrella organisation for efforts in strategic geographies.
They are:
## Ellen MacArthur Foundation USA, Inc.
Incorporated as a Nonstock Exempt Corporation in 2015 to interpret and deliver our mission in North America.
## Ellen MacArthur Foundation Brasil
Established in 2017 to manage our Latin American outreach, registered as a subsidiary non-profit civil association.
## Ellen MacArthur Foundation (UK)
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## PROFESSIONAL SERVICE PROVIDERS
## Accountants:
Moore (South) Isle of Wight 9 St John’s Place, Newport, PO30 1LH
## Bankers:
Lloyds TSB 30 Commercial Road, Totton, Southampton, SO40 3TH
## Auditors:
Moore Kingston Smith LLP Floor 6, 9 Appold Street, London, EC2A 2AP
## Beijing Representative Office
Registered in 2022 with the Public Security Bureau as an international non-governmental organisation (INGO), under the authority of the Ministry of Ecology and Environment of China. This branch enables us to directly connect with stakeholders in China. Registration certificate number: No.00005014; Unified social credit code/tax code: G1110000MCW006869N.
_The Charity has two wholly owned trading subsidiary companies whose profits are donated to the Charity to further its work._
## CONTACT
The Ellen MacArthur Foundation The Sail Loft, 42 Medina Road, Cowes, PO31 7BX
01983 296463 info@ellenmacarthurfoundation.org www.ellenmacarthurfoundation.org
Ellen MacArthur Foundation Trading Ltd. (‘EMF Trading’) EMF Trading is a company limited by shares registered in England and Wales (registered company number 07110767) which provides business services relating to the circular economy to the Charity’s business network — Strategic Partners, Partners, and Members. In year, it had three directors: Dame Ellen MacArthur, Jocelyn Blériot, and Andrew Morlet (resigned 4 November 2024) / Joanne Bootle (appointed 19 December 2024).
## EMF Trading (USA), Inc.
Registered in Delaware in April 2020, and currently inactive.
INDEPENDENT AUDITORS’ REVIEW
34
## OPINION
We have audited the financial statements of the Ellen MacArthur Foundation (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 August 2025 which comprise the Group Statement of Financial Activities, the Group Summary Income and Expenditure Account, the Group and Parent Charitable Company Balance Sheets, the Group Cash Flow Statement, 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 Financial Reporting Standard 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:
- give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 August 2025 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 (as amended) and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).
## 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 group’s and parent charitable company’s ability to continue as a going concern for a period of at least 12 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 annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained in 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 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 there is 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:
- the information given in the strategic report and the Trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the Trustees’ annual report have been prepared in accordance with applicable legal requirements.
35
## MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the Trustees’ annual report.
We have nothing to report in respect of the following matters where the Companies Act 2006 or the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:
- the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## RESPONSIBILITIES OF TRUSTEES
As explained more fully in the Trustees’ responsibilities statement set out on page 32, the Trustees 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 group and parent 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 group or parent 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
We have been appointed as auditor under Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report to you in accordance with regulations made under those Acts.
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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the group and parent charitable company’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.
- Conclude on the appropriateness of the Trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or parent charitable company to cease to continue as a going concern.
- Evaluate the overall presentation, structure, and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of the group audit. We remain solely responsible for our audit report.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
36
## EXPLANATION AS TO WHAT EXTENT THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD
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, is detailed below.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.
Our approach was as follows:
- We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 (as amended), regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended), the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council.
- We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.
- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
- We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
## 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 and to the charitable company’s Trustees, as a body, in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the charitable company’s members and Trustees those matters which we are required to state to them in an auditor’s report addressed to them and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and charitable company’s members as a body, and the Charity’s Trustees, as a body, for our audit work, for this report, or for the opinions we have formed.
## 22 May 2026
Date:
Samir Chandoo (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP, Statutory Auditor
6th Floor 9 Appold Street London EC2A 2AP
Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.
~~37~~
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES**
(INCLUDING INCOME AND EXPENDITURE ACCOUNT)
**----- Start of picture text -----**
Unrestricted funds Restricted funds Total 2025 Total 2024
INCOME AND ENDOWMENTS FROM: Notes £’000 £’000 £’000 £’000
Donations and legacies 3 5,540 1,418 6,958 7,150
Charitable activities 4 2 - 2 5
Income from other trading operations 7 6,628 - 6,628 7,018
Investments 5 419 - 419 468
TOTAL INCOME 12,589 1,418 14,007 14,641
EXPENDITURE ON:
Fundraising costs 8 645 - 645 572
Other trading operations 7 5,412 - 5,412 4,573
Charitable activities 8 7,600 6,573 14,173 14,142
Other 8 66 - 66 285
TOTAL EXPENDITURE 13,723 6,573 20,296 19,572
NET INCOME / (EXPENDITURE) (1,134) (5,155) (6,289) (4,931)
Transfer between funds (255) 255 - -
NET MOVEMENT IN FUNDS (1,389) (4,900) (6,289) (4,931)
RECONCILIATION OF FUNDS
Fund balances at 1 September 2024 9,998 6,886 16,884 21,815
Fund balances at 31 August 2025 8,609 1,986 10,595 16,884
**----- End of picture text -----**
The Statement of Financial Activities includes all gains and losses in the period.
All incoming resources and resources expended derive from continuing activities. A full comparative statement of financial activities is shown in Note 2.
~~38~~
## **CONSOLIDATED AND CHARITY BALANCE SHEET**
At 31 August 2025
**----- Start of picture text -----**
Group 2025 Group 2024 Charity 2025 Charity 2024
FIXED ASSETS Notes £’000 £’000 £’000 £’000
Tangible fixed assets 11 295 473 185 252
Fixed asset investment 12 - - - -
295 473 185 252
CURRENT ASSETS
Stocks 22 22 - -
Debtors 13 5,751 5,330 3,448 3,568
Investments 14 7,316 10,414 7,316 10,414
Cash at bank and in hand 2,606 5,282 1,449 2,316
15,695 21,048 12,213 16,298
CREDITORS
Amounts falling due within one year 15 (5,395) (4,637) (3,240) (1,757)
NET CURRENT ASSETS 10,300 16,411 8,973 14,541
TOTAL NET ASSETS 10,595 16,884 9,158 14,793
FUNDS
Unrestricted funds 16 8,609 9,998 7,172 7,907
Restricted funds 17 1,986 6,886 1,986 6,886
TOTAL FUNDS 10,595 16,884 9,158 14,793
**----- End of picture text -----**
The financial statements on pages 21 to 65 were approved by the Board of Trustees and signed on its behalf by:
**Dame Ellen MacArthur**
The notes on page 41 form an integral part of these financial statements.
**Dated:** 18th May 2026
**Company Registration Number:** 06897785
~~39~~
## **STATEMENT OF CASH FLOWS**
Year ended 31 August 2025
**----- Start of picture text -----**
Group 2025 Group 2024
£’000 £’000
Cash flow from operating activities (6,179) (4,202)
CASH FLOW FROM INVESTING ACTIVITIES
Payments to acquire tangible fixed assets (18) (19)
Proceeds on disposal of tangible fixed assets 5 -
Purchase of investments (8,643) (11,731)
Proceeds from disposal of investments 9,327 7,500
Interest received 238 229
NET CASH FLOW FROM INVESTING ACTIVITIES 909 (4,021)
Net (decrease)/increase in cash and cash equivalents (5,270) (8,223)
Cash equivalents at 1 September 2024 11,225 19,448
CASH EQUIVALENTS AT 31 AUGUST 2025 5,955 11,225
CASH AND CASH EQUIVALENTS CONSISTS OF:
Cash at bank and in hand 2,606 5,282
Short-term deposits in current asset investments 3,349 5,943
CASH AND CASH EQUIVALENTS AT 31 AUGUST 2025 5,955 11,225
**----- End of picture text -----**
~~40~~
## **RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES:**
Year ended 31 August 2025
**----- Start of picture text -----**
2025 2024
RECONCILIATION £’000 £’000
Surplus for the year (6,289) (4,931)
Depreciation 196 244
Loss on disposal of fixed assets (5) 1
Profit on disposal of investments (180) (239)
Interest received (238) (229)
Movement in deferred income (1) (146)
Movement in creditors 759 (696)
Movement in inventories - (22)
Movement in debtors (421) 1,816
Net cash flow from operating activities (6,179) (4,202)
**----- End of picture text -----**
## **ANALYSIS OF CHANGES IN NET DEBT**
Year ended 31 August 2025
**----- Start of picture text -----**
As at 1 Sep 2024 Cash flows As at 31 Aug 2025
£’000 £’000 £’000
Cash 5,282 (2,676) 2,606
Short-term deposits in current asset investments 5,943 (2,594) 3,349
Total 11,225 (5,270) 5,955
**----- End of picture text -----**
41
## NOTES TO THE FINANCIAL STATEMENTS
## **1. ACCOUNTING POLICIES**
The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the period.
## GENERAL INFORMATION AND BASIS OF PREPARATION
The Ellen MacArthur Foundation is a charitable company limited by guarantee incorporated in England and Wales. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity. The address of the registered office is given in the Charity information on page 33 of these financial statements. The nature of the Charity’s operations and principal activities are as an Educational and Research Charity with the aim to inspire a generation to re-think, redesign, and build a restorative circular economy.
The Charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on October 2019, the Charities Act 2011, the Companies Act 2006, and UK Generally Accepted Accounting Practice.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the Charity, and rounded to the nearest £000.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## GROUP ACCOUNTS
Ellen MacArthur Foundation Trading Limited is a wholly owned UK trading subsidiary. Ellen MacArthur Foundation Inc. (US) and Ellen MacArthur Foundation Brasil are also considered to be subsidiaries, within the requirements outlined in the Charities SORP, because Ellen MacArthur Foundation UK (“EMF UK”) has the power to govern financial and operating policies as set out in specific clauses included within each of the charities constitution documents and, in the event of dissolution, remaining assets will be transferred to EMF UK. In addition to this and with reference to SORP FRS102 section 24.21, the vision, purpose, and values of EMF UK, EMF Inc. and EMF Brasil are identical and the objects of all three organisations are closely matched within each respective memorandum and articles of association thus ensuring that EMF Inc. and EMF Brasil contribute to the aims and purposes of EMF UK and benefits common beneficiaries.
All financial statements are made up to 31 August, and the results are consolidated on a line-by-line basis. All intra-group transactions, balances, and unrealised gains on transactions between group entities are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Where necessary, adjustments are made on consolidation to bring the accounting policies used into line with those used by other members of the group.
The summary financial information relating to the subsidiary entities are shown in Notes 7 and 12.
## FUND ACCOUNTING
- Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
- Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
- Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
42
## INCOME RECOGNITION
All incoming resources are included in the Statement of Financial Activities (SoFA) when the Charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received. The following specific policies are applied to particular categories of income:
- Voluntary income is received by way of grants, donations, legacies, and gifts and is included in full in the Statement of Financial Activities when receivable.
- Grants, where entitlement is not conditional on the delivery of a specific performance by the Charity, are recognised when the Charity becomes unconditionally entitled to the grant. Where donations relate to a work programme based on academic years, then receipt in advance is deferred to the appropriate year.
- For donations to be recognised, the Charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained, then income is deferred until those conditions are fully met or the fulfillment of those conditions is within the control of the Charity and it is probable that they will be fulfilled.
- Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably, and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the Charity. For example: the amount the Charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.
- Value in kind commitments on projects is often used as a method to obtain engagement with funding partners on projects, although these are not within the Charity’s control, and cannot be verified, and as a result a fair value estimate cannot be determined to be included in the accounts.
- No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102).
- Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the Charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.
- Incoming resources from grants, where related to performance and specific deliverables, are accounted for as the Charity earns the right to consideration by its performance.
- Investment income is earned through holding assets for investment purposes such as funds on deposit, shares, and property. It includes interest. It is included when the amount can be measured reliably.
## STOCKS
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
## DEBTORS
Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.
## INVESTMENTS
Fixed and current asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at mid market value at the end of each period. Changes in value are recognised in net income/(expenditure) for the year.
Transaction costs are expensed as incurred.
## ACCRUED INCOME
The amounts receivable on future dates under signed funding agreements are included in accrued income.
## CASH
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of 100 days or less, and bank overdrafts.
## RESOURCES EXPENDED
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably. It is categorised under the following headings:
- costs of raising funds includes activities to seek out and agree terms with major donors, together with the costs of the trading subsidiary, and costs of investment activities;
- expenditure on charitable activities includes project costs on the Charity’s various projects as identified in the notes to these accounts; and
- other expenditure represents those items not falling into the categories above including governance costs.
Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
43
## CREDITORS
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 be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the Charity.
## PENSION
The Charity has a defined contribution pension scheme for all eligible employees. The assets of the scheme are held separately to the Charity. Pension costs charged in the Statement of Financial Activities represent the contributions payable for the year.
## SUPPORT COSTS ALLOCATION
Support costs are those that assist the work of the Charity but do not directly represent charitable activities and include office costs, governance costs, and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the Charity and include project management. Where support costs cannot be directly attributed to particular headings they have been allocated to the cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.
## FINANCIAL ASSETS AND LIABILITIES
The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ of FRS102 to all its financial instruments.
Financial Instruments are recognised in the Charity’s balance sheet when the Charity becomes party to the contractual provisions of the instrument. Basic financial assets (which include debtors and bank and cash balances) and basic financial instruments (which includes creditors) are initially measured at transaction price including transaction costs, and are subsequently carried at amortised cost. Financial assets classified as receivable within one year or financial liabilities classified as payable within one year are not amortised.
## FIXED ASSETS AND DEPRECIATION
Assets costing more than £500 are capitalised. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:
## Computer equipment
25% and 33% Straight line
Furniture and equipment 20% and 25% Reducing balance
Improvements to leasehold property 10% to 33% Straight line, over the duration of the lease
## TAXATION
No corporation tax has been provided in these accounts because the income of the Charity is within the exemption granted by HM Revenue & Customs to the extent that these funds are applied to Charitable objects.
## FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currencies are translated into Sterling at the average rate prevailing for the month in which they occur.
Monetary assets and liabilities denominated in foreign currencies are translated into Sterling at the rates of exchange ruling at the balance sheet date.
The results of the US and Brazil sister charities are translated at average rate (income and expenses) and closing rate for the purposes of consolidation.
## JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the charitable company’s accounting policies, the Trustees are required to make judgements, estimates, and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## GOING CONCERN
The financial statements are prepared on a going concern basis which assumes the charitable group will continue in operational existence for the foreseeable future. The Trustees have reviewed the forecasts and projections prepared by management for a period of at least 12 months from the date of approval of the financial statements and are satisfied that the assumptions used in their preparation are reasonable. Having made enquiries, the Trustees have concluded that there is a reasonable expectation that the charitable group will continue to meet its liabilities as they fall due and accordingly continue to adopt the going concern basis in the preparation of the financial statements.
~~44~~
## **2. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES**
Year ended 31 August 2024
**----- Start of picture text -----**
Unrestricted funds Restricted funds Total 2024
INCOME AND ENDOWMENTS FROM: Notes £’000 £’000 £’000
Donations and legacies 3 4,311 2,839 7,150
Charitable activities 4 5 - 5
Income from other trading operations 7 7,018 - 7,018
Investments 5 468 - 468
TOTAL INCOME 11,802 2,839 14,641
EXPENDITURE ON:
Fundraising costs 8 572 - 572
Other trading operations 7 4,573 - 4,573
Charitable activities 8 6,343 7,799 14,142
Other 8 285 - 285
TOTAL EXPENDITURE 11,773 7,799 19,572
NET INCOME / (EXPENDITURE) 29 (4,960) (4,931)
Transfer between funds (5,524) 5,524 -
NET MOVEMENT IN FUNDS (5,495) 564 (4,931)
RECONCILIATION OF FUNDS
Fund balances at 1 September 2023 15,493 6,322 21,815
Fund balances at 31 August 2024 9,998 6,886 16,884
**----- End of picture text -----**
~~45~~
## **3. DONATIONS, LEGACIES, AND GRANT INCOME**
**----- Start of picture text -----**
Unrestricted funds Restricted funds Total 2025 Total 2024
BUSINESS £’000 £’000 £’000 £’000
Network income 3,152 – 3,152 1,860
CORE FUNDING
–
Core philanthropic funding 1,875 1,875 1,600
Other donations 9 – 9 34
POLICY & INSTITUTIONS
Specific research projects 281 – 281 465
International outreach 223 – 223 1,292
Building Prosperity – – – 467
INITIATIVES
New Plastics Economy Initiative – 843 843 1,289
The Fashion ReModel – 385 385 –
The Big Food Redesign Challenge – 170 170 –
Building Prosperity – 20 20 –
CONTENT
Film and Media – – – 143
TOTAL GRANTS AND DONATIONS 5,540 1,418 6,958 7,150
**----- End of picture text -----**
~~46~~
## **3. DONATIONS, LEGACIES, AND GRANT INCOME (continued)**
Comparative donations, legacies, and grant income
**----- Start of picture text -----**
Unrestricted funds Restricted funds Total 2024
BUSINESS £’000 £’000 £’000
Network income 1,860 – 1,860
CORE FUNDING
–
Core philanthropic funding 1,600 1,600
Other donations 34 – 34
POLICY & INSTITUTIONS
Specific research projects 465 – 465
International outreach 352 940 1,292
Building Prosperity – 467 467
INITIATIVES
–
New Plastics Economy Initiative 1,289 1,289
CONTENT
Film and Media – 143 143
TOTAL GRANTS AND DONATIONS 4,311 2,839 7,150
**----- End of picture text -----**
For details of the grant income and restricted funds, please refer to Note 17. As part of funding agreements, for many projects, the Foundation seeks value in kind commitments to research projects, which although pledged, cannot be verified and are therefore not included within these statements.
47
## **4. INCOME FROM CHARITABLE ACTIVITIES**
**----- Start of picture text -----**
Unrestricted funds Restricted funds Total 2025 Total 2024
£’000 £’000 £’000 £’000
Rental income – – – 2
Rechargeable items 2 – 2 3
Total other incoming resources 2 – 2 5
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## **COMPARATIVE INCOME FROM CHARITABLE ACTIVITIES**
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Unrestricted funds Restricted funds Total 2024
£’000 £’000 £’000
Rental income 2 – 2
Rechargeable items 3 – 3
Total other incoming resources 5 – 5
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## **5. INTEREST AND INVESTMENT INCOME**
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Unrestricted funds Restricted funds Total 2025 Total 2024
£’000 £’000 £’000 £’000
Bank interest – monies held in interest bearing deposit accounts 238 – 238 229
Gains on disposal of investments 181 – 181 239
Total 419 – 419 468
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## **COMPARATIVE INCOME FROM CHARITABLE ACTIVITIES**
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Unrestricted funds Restricted funds Total 2024
£’000 £’000 £’000
Bank interest – monies held in interest bearing deposit accounts 229 – 229
Gains on disposal of investments 239 – 239
Total 468 – 468
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48
## **6. FINANCIAL PERFORMANCE OF THE CHARITY**
Charity only (excludes subsidiary)
The Consolidated Statement of Financial Activities includes the results of the Charity’s wholly owned subsidiary Ellen MacArthur Foundation Trading Limited and the results of Ellen MacArthur Foundation Inc., which operate events and services for the Charity and clients. The summary financial performance of the Charity alone is:
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2025 2024
£’000 £’000
Income from donations and legacies 6,734 6,798
Rechargeable items 2 3
Rental income – 2
Gift aid donation from subsidiary company 1,580 3,042
Investment income 419 468
Total income 8,735 10,313
Expenditure on charitable activities (13,725) (14,494)
Cost of generating funds (645) (572)
Total expenditure (14,370) (15,066)
Net income for the year (5,635) (4,753)
Total funds brought forward 14,793 19,546
Total funds carried forward 9,158 14,793
REPRESENTED BY
Restricted funds 1,986 6,886
Unrestricted general funds 7,172 7,907
Total funds 9,158 14,793
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49
## **7. INCOMING RESOURCES FROM ACTIVITIES FOR GENERATING FUNDS**
Summary financial performance of Ellen MacArthur Foundation Trading Limited
## **INCOME FROM TRADING SUBSIDIARY:**
The wholly owned trading subsidiary Ellen MacArthur Foundation Trading Limited is incorporated in England and Wales and pays all of its profits to the Charity by distribution. The company operates events for businesses, publishes books, and undertakes other trading operations. The Charity owns the £1 ordinary share of the company.
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2025 2024
Profit and loss account: £’000 £’000
Turnover 6,676 7,111
Cost of sales and admin costs (5,412) (4,573)
Profit before tax 1,264 2,538
– –
Tax on profits
PROFIT AFTER TAX 1,264 2,538
Retained earnings brought forward 1,580 2,084
Distributed to parent during the year (1,580) (3,042)
RETAINED IN THE SUBSIDIARY 1,264 1,580
Balance sheet:
Fixed assets 100 208
Current assets 5,178 5,309
Current liabilities (4,014) (3,937)
NET ASSETS 1,264 1,580
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The turnover figure above included intercompany charges of £48,000 (2024: £93,000) removed on consolidation.
Subsequent to the balance sheet date a distribution of £1,264,000 was made to the Charity.
These Group accounts also include the results of the US sister charitable company Ellen MacArthur Foundation Inc., which for the year reported a deficit of £317,000 (2024: £34,000) and carried forward reserves of £79,000, representing a negative balance (2024: positive reserves of £238,000).
The Foundation also has a sister charity in Brazil, Ellen MacArthur Foundation Brasil, which for the year reported a deficit of £14,000 (2024: surplus of £293,000), and has reserves carried forward of £260,000 (2024: reserves carried forward £274,000).
50
## **8. EXPENDITURE BY ACTIVITY**
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Charitable Support Other (Governance) Fundraising Total 2025 Total 2024
LEARNING £’000 £’000 £’000 £’000 £’000 £’000
Education projects 35 19 – – 54 17
CONTENT 394 153 – – 547 729
BUSINESS
Global partners and fund raising – 250 – 645 895 649
INSTITUTIONS, GOVERNMENTS, AND CITIES
Specific research projects 889 345 – – 1,234 1,038
International outreach 2,572 641 – – 3,213 2,619
SYSTEMIC INITIATIVES
Plastics 2,517 1,446 – – 3,963 3,614
The Fashion ReModel 358 281 – – 639 366
The Big Food Redesign Challenge 804 388 – – 1,192 1,850
Finance 177 69 – – 246 265
INSIGHT AND COMMUNICATIONS 1,997 812 – – 2,809 3,508
INVESTMENT MANAGEMENT – – – – – 13
GOVERNANCE
Audit and accountancy – – 66 – 66 55
Settlement agreements – – – – – 230
Support allocation – 26 – – 26 46
Total 9,743 4,430 66 645 14,884 14,999
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51
## **8. EXPENDITURE BY ACTIVITY (continued)**
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Total 2025 Total 2024
SUPPORT COSTS ARE MADE UP AS FOLLOWS: £’000 £’000
Communications and IT 276 359
Design, print, and office costs 92 25
Rent and property costs 202 287
Insurances 61 48
Depreciation 67 68
Professional services and consultancy 1,525 1,156
Currency translation and finance costs 51 50
Staff costs 1,966 1,584
Travel, training, and recruitment 190 214
Total support costs 4,430 3,791
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Support costs are allocated to direct projects, firstly on the basis of any agreed project contribution to support costs, and then on the basis of the total resources incurred in each area.
52
## **8. EXPENDITURE BY ACTIVITY (continued)**
Comparative expenditure by activity
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Charitable Support Other (Governance) Fundraising Total 2024
Learning £’000 £’000 £’000 £’000 £’000
Education projects 10 7 – – 17
Content
Content 628 101 – – 729
Business
Global partners and funding – 90 – 559 649
Policy & Institutions
Specific research projects 894 144 – – 1,038
International outreach 2,097 522 – – 2,619
Initiatives
Plastics 2,104 1,510 – – 3,614
The Fashion ReModel 315 51 – – 366
The Big Food Redesign Challenge 1,310 540 – – 1,850
Finance 228 37 – – 265
Insight and Communications 2,765 743 – – 3,508
Investment Management – – – 13 13
Governance
Audit and accountancy – – 55 – 55
Legal and professional – – 230 – 230
Support allocation – 46 – – 46
Total 10,351 3,791 285 572 14,999
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53
## **9. THE GROUPS OPERATING SURPLUS INCLUDES THE FOLLOWING AMOUNTS**
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Group 2025 Group 2024 Charity 2025 Charity 2024
INCLUDED IN ADMINISTRATIVE EXPENSE: £’000 £’000 £’000 £’000
Auditors remuneration 60 51 45 33
Auditors remuneration – prior years – 8 – 1
Non-audit services from auditor-related firm 24 16 18 11
– – – –
Non-audit services – prior years
– – – –
Operating leases – equipment
– – – –
Operating leases – land and buildings
Payroll services 10 9 5 6
Taxation services – – – –
Depreciation of owned fixed assets 196 244 67 68
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The Charity and Trading Company have auto-enrolled to meet the requirements of employer pensions. The Charity and Company operate a defined contribution scheme, the assets of which are held separately from those of the Charity in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund. Amounts owing at the year-end amounted to £80,000 (2024: £51,000) and are included in other creditors.
54
## **10. STAFF COSTS**
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2025 2024
STAFF COSTS IN THE CHARITABLE COMPANY
£’000 £’000
AND TRADING COMPANY WERE:
Wages and salaries 10,694 10,185
Social Security costs 994 868
Pension costs 520 319
Redundancy and termination costs 277 237
Other employee benefits 32 38
Total staff costs 12,518 11,647
Employer pension costs attributed to employees
166 82
paid over £60,000 were:
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40 employees (2024: 35) received remuneration in excess of £60,000, and they fell in the bands as follows:
As at 31 August 2025, the group had a contractual commitment to make termination-related payments to employees following the cessation of their employment on 1 September 2025. The total payments due under this commitment amounted to approximately £500,000, including PILON and holiday owed. The costs have been accrued into the 2025 financial statements, and the redundancy costs (excluding PILON and holiday) are included in the “redundancy and termination costs” heading above.
Payments to Trustees and expenses reimbursed can be seen in Note 20 to these accounts.
The payment of gross remuneration to Key Management Personnel during the year was £1,762,000 (2024: £1,257,000).
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SALARY BAND 2025 no. 2024 no.
£60,000 to £70,000 18 16
£70,000 to £80,000 9 5
£80,000 to £90,000 1 2
£90,000 to £100,000 3 3
£100,000 to £110,000 1 1
£110,000 to £120,000 3 4
£120,000 to £130,000 – 1
£140,000 to £150,000 – 1
£150,000 to £160,000 1 1
£190,000 to £200,000 2 –
£220,000 to £230,000 1 –
£250,000 to £260,000 1 –
£420,000 to £430,000 – 1
Average weekly number of employees 189 190
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55
## **11. TANGIBLE FIXED ASSETS – GROUP AND CHARITY**
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Improvements to leasehold property Plant and equipment Total 2025
Consolidated £’000 £’000 £’000
Cost at 1 September 2024 1,038 781 1,819
Additions 4 14 18
–
Disposals (31) (31)
At 31 August 2025 1,042 764 1,806
Depreciation at 1 September 2024 679 667 1,346
Charge for the year 99 97 196
–
Eliminated on disposal (31) (31)
At 31 August 2025 778 733 1,511
NET BOOK VALUE
Net book value at 31 August 2025 264 31 295
Net book value at 31 August 2024 359 114 473
CHARITY
Cost at 1 September 2024 717 129 846
Additions – – –
At 31 August 2025 717 129 846
DEPRECIATION
Depreciation at 1 September 2024 468 126 594
Charge for the year 66 1 67
At 31 August 2025 534 127 661
NET BOOK VALUE
Net book value at 31 August 2025 183 2 185
Net book value at 31 August 2024 249 3 252
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56
## **12. FIXED ASSET INVESTMENT**
## **SHARES IN GROUP UNDERTAKINGS AND PARTICIPATING INTERESTS**
## Ellen MacArthur Foundation Trading Limited
The charitable company holds 100% of the share capital of the Ellen MacArthur Foundation Trading Limited. This Company is registered in England and Wales (company number: 07110767), and provides consultancy services and events for businesses and books and publications. The cost of shares as investment in the Charity at 1 September 2024 and 31 August 2025 was £1, and the net book value as at 31 August 2024 and 31 August 2025 was also £1.
## EMF Trading USA, Inc.
The charitable company holds 100% of the share capital of the EMF Trading USA, Inc. This Company is registered in the State of Delaware, USA, and has been dormant since incorporation on 18 May 2020. The cost of shares as investment in the Charity as at 1 September 2024 and 31 August 2025 was £1, and the net book value as at 31 August 2024 and 31 August 2025 was also £1.
## EMF USA Inc.
EMF USA Inc is an affiliate of the Charity with respect to activities conducted in furtherance of the Charity’s mission and chantable purpose within the USA.
## EMF Brasil
EMF Brasil is an affiliate of the Charity with respect to activities conducted in furtherance of the Charity’s mission and chantable purpose within Brazil.
## **13. DEBTORS**
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Group 2025 Group 2024 Charity 2025 Charity 2024
£’000 £’000 £’000 £’000
Trade debtors 2,572 1,672 843 691
Other debtors 196 204 190 199
Accrued income 2,435 2,799 2,329 2,526
Prepayments 548 655 86 152
Total debtors 5,751 5,330 3,448 3,568
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Included in the above figures, for both the Group and Charity, are £997,499 (2024: £500,000) of debtors that are due after more than one year.
57
## **14. INVESTMENTS**
Movement in investments during the year
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Group Charity
£’000 £’000
At 1 September 2024 10,414 10,414
Additions 8,643 8,643
Revaluation 412 412
Movement in cash available for investment (2,826) (2,826)
Disposals (9,327) (9,327)
At 31 August 2025 7,316 7,316
Group Charity
2025 2024 2025 2024
COST OR VALUATION
£’000 £’000 £’000 £’000
Investments at fair value comprise:
UK bonds 3,968 4,471 3,968 4,471
Cash available for investment 3,348 5,943 3,348 5,943
Total investments 7,316 10,414 7,316 10,414
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100% investment above relates to ‘bonds within Schroders’
58
## **15. CREDITORS**
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Group 2025 Group 2024 Charity 2025 Charity 2024
AMOUNTS FALLING DUE WITHIN ONE YEAR £’000 £’000 £’000 £’000
Trade creditors — project costs 329 164 156 101
– –
Amounts due to trading subsidiary 1,974 1,112
Accruals 1,249 710 1,006 462
Other creditors 124 91 104 82
Taxation and social security 18 (4) – –
Deferred income 3,675 3,676 – –
TOTAL CREDITORS 5,395 4,637 3,240 1,757
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Deferred income arises on donations received in advance of the various work programmes relating to the 2025/26 financial year which commenced on 1 September 2025. All of the income deferred at 31 August 2024 was taken the income and expenditure account in the 2025 accounts.
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Group 2025 Group 2024
Deferred income represented £’000 £’000
At 1 September 2024 3,676 3,823
Amounts released to income in the year (3,676) (3,823)
Additions in the year 3,675 3,676
At 31 August 2025 – deferred income comprises:
Consultancy fees in advance 1,617 2,361
Textiles 494 439
Plastics 975 725
Critical Minerals 559 –
Strategy & Innovation 21 –
Finance 9 –
Food – 76
Circular Economy 100 fees received – 75
Total deferred income 3,675 3,676
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59
## **16. UNRESTRICTED FUNDS**
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At 1 Sep 2024 Income received Fund expenditure Transfers At 31 Aug 2025
£’000 £’000 £’000 £’000 £’000
Unrestricted general funds 9,998 12,589 (13,723) (255) 8,609
Total 9,998 12,589 (13,723) (255) 8,609
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## **COMPARATIVE INFORMATION FOR UNRESTRICTED FUNDS**
**----- Start of picture text -----**
At 1 Sep 2023 Income received Fund expenditure Transfers At 31 Aug 2024
£’000 £’000 £’000 £’000 £’000
Unrestricted general funds 15,493 11,802 (11,773) (5,524) 9,998
Total 15,493 11,802 (11,773) (5,524) 9,998
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60
## **17. RESTRICTED FUNDS**
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At 1 Sep 2024 Income received Fund expenditure Transferred from unrestricted At 31 Aug 2025
International outreach: Notes £’000 £’000 £’000 £’000 £’000
China (A) 859 – (859) – –
Systemic initiatives:
Plastics (B) 5,061 843 (3,963) – 1,941
The Big Food Redesign Challenge (C) 736 – (1,031) 295 –
Laudes (C) – 170 (35) – 135
Building Prosperity (D) 78 20 (60) (38) –
Amazon Project LATAM (E) 107 – (107) – –
Film and Media (F) 45 – (43) (2) –
H&M Fashion (G) – 385 (475) – (90)
Total 6,886 1,418 (6,573) 255 1,986
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## **COMPARATIVE INFORMATION FOR RESTRICTED FUNDS**
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At 1 Sep 2023 Income received Fund expenditure Transferred from unrestricted At 31 Aug 2024
International outreach: Notes £’000 £’000 £’000 £’000 £’000
China (A) 1,545 646 (1,332) – 859
Systemic initiatives:
New Plastics Economy Initiative (B) 2,507 1,289 (3,614) 4,879 5,061
The Big Food Redesign Challenge (C) 1,884 – (1,793) 645 736
Building Prosperity (D) 386 467 (775) – 78
Amazon Project LATAM (E) – 294 (187) – 107
Film and Media (F) – 143 (98) – 45
Total 6,322 2,839 (7,799) 5,524 6,886
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61
## **NOTES**
All restricted funds are held within the Ellen MacArthur Foundation. As such the consolidated and charity-only restricted funds are one and the same.
(A) China — a project to mobilise the broader momentum and focus on the circular economy in China, including the growing alignment between the private and public sector on the role the circular economy can play in enabling better forms of economic growth. Following the MAVAfunded China project, which completed in the financial year 2022-23, funding for our work in China continued with grants from Hans Wilsdorf Foundation and ClimateWorks Foundation. These projects completed in 2025 and the China programme continues to be funded by core funds.
(B) The Plastics Initiative was launched in 2016 to bring together key stakeholders to rethink and redesign the future of plastics, starting with packaging. Phase II (funded by the Eric and Wendy Schmidt Fund for Strategic Innovation) launched in 2019 and ran until August 2025. A key component of current work is around the Business Coalition for a Global Plastics Treaty (funded in 2024 by Astra Foundation, Erol Foundation, and Fondation Haasteichen) as we look to use the development of a legally binding UN Treaty as a once-in-a-generation opportunity to tackle the plastic pollution crisis in a globally coordinated way. The Plastics programme continues into 2025-26, funded by corporate and philanthropic funding.
(C) The Big Food Redesign Challenge (funded by Schmidt Foundation, People’s Postcode Lottery, Innovation Trust [Dream Fund], and Gordon & Betty Moore Foundation) ran from 2021 to 2024 and was initiated to catalyse innovation and as proof of concept for a new Circular Design For Food framework to support food systems transformation by producing food which is better nature and climate. The Challenge culminated in 141 products from 57 participant companies, successfully demonstrating that food can indeed be redesigned for nature to thrive. Throughout the past year, funding from the Laudes Foundation has 1) helped build the business case for Circular Design for Food; 2) to explore where policy might enable conditions for scale; and 3) embed Circular Design for Food as a framework in other organisations building legacy to the challenge.
(D) The Building Prosperity report was produced and disseminated to key audiences during the financial year 2023-2024. This work was funded by the European Climate Foundation, Laudes Foundation, and Massellaz SA. The report restated the economic rationale for circular economy in Europe and was a crucial piece of thought leadership used to inform the European Commission and other key policy stakeholders in the lead up to 2024 European Parliament elections.
(E) Amazon Project LATAM — The Circular Design for the Amazon project was initiated to explore the role that circular design can play in supporting a standing and regenerated forest. This exploration was funded by Porticus and the project completed in 2025. The findings form the basis for our future work in the bio-economy.
(F) Film and Media — production and distribution of three solutions-oriented short films highlighting the circular economy opportunity supported by impact campaigns: one focused on the circular economy and planetary boundaries, and two focused on reuse in relation to plastics and packaging. This work was funded by grants from Constellium Cares and Boomgaard Foundation. This project completed in 2025.
(G) The Fashion ReModel — funded by the H&M Foundation with a three year grant starting January 2024 — is the first time companies have joined a project with a shared focus on what it will take to begin to decouple revenue from resource extraction and implement circular business models at scale. The project works with leading brands from high-end to high-street to demonstrate that circular business models can scale by getting to the core of their businesses — revenue. By focusing on the economics and business case, the project is tackling the heart of the challenge in shifting towards a circular economy.
A transfer of £255k was made from unrestricted funds to restricted funds. This represents corporate (Network) income received for Food (£295k) programmes, which was initially recognised as unrestricted income but has been internally allocated to these specific programme areas.
62
## **18. ANALYSIS OF GROUP NET ASSETS BY FUNDS**
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Unrestricted funds Restricted funds Total 2025 Total 2024
Consolidated £’000 £’000 £’000 £’000
Fixed assets 295 – 295 473
Current assets 13,559 2,136 15,695 21,048
Creditors (5,245) (150) (5,395) (4,637)
Total 8,609 1,986 10,595 16,884
Charity
Fixed assets 185 – 185 252
Current assets 10,077 2,136 12,213 16,298
Creditors (3,090) (150) (3,240) (1,757)
Total 7,172 1,986 9,158 14,793
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## **COMPARATIVE ANALYSIS OF GROUP AND CHARITY NET ASSETS BY TYPE OF FUND**
**----- Start of picture text -----**
Unrestricted funds Restricted funds Total 2024
Consolidated £’000 £’000 £’000
Fixed assets 473 – 473
Current assets 14,051 6,997 21,048
Creditors (4,526) (111) (4,637)
Total 9,998 6,886 16,884
Charity
Fixed assets 252 – 252
Current assets 9,301 6,997 16,298
Creditors (1,646) (111) (1,757)
Total 7,907 6,886 14,793
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63
## **19. FINANCIAL COMMITMENTS**
## **LEASES**
At 31 August 2025 the group had the following minimum lease payments under non-cancellable operating leases, as follows:
**----- Start of picture text -----**
Property 2025 Other 2025 Property 2024 Other 2024
Consolidated: £’000 £’000 £’000 £’000
Due within 1 year 80 – 117 –
Due between 2–5 years – – 234 –
– – – –
Due after more than 5 years
Total 80 – 351 –
Charity only:
Due within 1 year 80 – 117 –
Due between 2–5 years – – 234 –
– – – –
Due after more than 5 years
Total 80 – 351 –
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## **20. RELATED PARTIES**
## **21. CONTROLLING PARTY**
During the year the Charity and Trading Company have occupied offices at an agreed rent, owned by EM (IOW) Ltd, a Company 50% owned by Dame Ellen MacArthur. A charge was made by EM (IOW) Limited for £38,587 (2024: £36,750) in respect of the office rental, and at the year end £0 (2024: £0) was outstanding.
The Charity is controlled by the Trustees.
During the period a charge was made by EM (IOW) Ltd, a Company where Dame Ellen MacArthur is the Director and 50% shareholder, for £0 (2024: £22,500) in respect of services provided by Dame Ellen MacArthur. This charge in 2024 was in respect of speakers fees and research, and for work other than that of a Trustee. These services are for work undertaken in accordance with agreements between the two entities and after permission was granted for such charges in 2014 by the Charity Commission.
There was no remuneration paid to Trustees for their services as Trustees (2024: £0). Expenses were reimbursed to two Trustees totaling £2,965 (2024: two Trustees £6,053) in respect of home phone expenses and travel. No expenses were incurred on behalf of the Trustees (2024: £0). At the year end, £0 (2024: £0) was outstanding.
64
## **22. FINANCIAL INSTRUMENTS**
**----- Start of picture text -----**
Group 2025 Group 2024 Charity 2025 Charity 2024
Carrying amount of financial assets: £’000 £’000 £’000 £’000
Debt instruments measured at amortised cost 15,126 20,371 12,128 16,146
Carrying amount of financial liabilities:
Liabilities measured at amortised cost (1,721) (959) (3,241) (1,757)
Total 13,405 19,412 8,887 14,389
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## **ENDNOTES**
- 1 Circle Economy, Employment in the Circular Economy (2025)
- 2 Calculation based on the virgin plastic reduction of Global Commitment signatories compared to a business as usual scenario, quantified through the barrels of oil equivalent avoided over seven years.
- 3 Brands and retailers participating in The Fashion ReModel, FY2022/23 - FY2023/24
- © COPYRIGHT 2026 ELLEN MACARTHUR FOUNDATION
## www.ellenmacarthurfoundation.org
Charity Registration No.: 1130306 OSCR Registration No.: SC043120 Company No.: 6897785