THE CLIMATE CHANGE ORGANISATION

t/a

Annual Report and Accounts 2011/12

12 months to 30 June 2012

COMPANY NUMBER: 4964424

CHARITY NUMBER: 1102909

- Annual Report 2011/12 2

Board of Trustees’ Report

Contents

Chairman’s message ................................................................................................................ 3

Chief Executive’s message ...................................................................................................... 4

Who we are ............................................................................................................................... 5

Why we are here ........................................................................................................................ 6

How we work ............................................................................................................................. 7

Our partners ............................................................................................................................... 8

What we do ............................................................................................................................... 9

Our organisational aims: The Clean Revolution Initiative .......................................................... 10

Work plan for 2011/12 ................................................................................................................ 11

Key achievements 2011/12 ........................................................................................................ 12

What we will do in 2012/13 ........................................................................................................ 18

Structure, governance and management .................................................................................... 20

UK Board, management team and advisers ............................................................................... 22

Financial results .......................................................................................................................... 25

Financial strategy ....................................................................................................................... 26

Trustees’ responsibilities in relation to the Financial Statements ............................................. 28

Independent auditor’s report to the Trustees ............................................................................ 30

Consolidated Financial Statements ........................................................................................... 32

Notes to the consolidated Financial Statements ....................................................................... 35

- Annual Report 2011/12 3

Chairman’s message

In last year’s Chairman’s message I noted that the outlook for dangerous climate was becoming ever

more threatening but that the message was not getting through and spurring action to address the

climate. Twelve months later – and despite some notable achievements within the business

community, important new initiatives from some governments and not insignificant process within the

UN climate negotiations – it remains the case that our collective climate actions still fall short of our

climate needs.

Much of the problem is due to perceptions, or rather misperceptions. Climate action is still seen by too

many businesses and political leaders as being all about cost, rather than opportunity. The focus too

often is on the perceived short term risks, such as to political poll ratings or quarterly reports, while the

very real long term risks are ignored.

It is for these reasons that the work of The Climate Group remains as important as ever. By providing

a platform to bring leading businesses and governments together and communicating their low-

carbon successes, The Climate Group continues to play a key role in creating the economic and

political tipping points we need for solving the climate crisis.

As the world continues its slow recovery from recession and financial crisis, the messages that

decision makers in business and government need to hear are simple. First, the opportunities from

low-carbon growth are huge and need to be seized before it’s too late. Second, most of the clean

technology we need already exists – we just need to scale it. And third, climate action is good for

people – everywhere. We can distil this to three short phrases: carbon down, growth up and living

better.

These are the essential pillars of The Climate Group’s Clean Revolution initiative, which continued to

grow in strength and influence over the past year. The events that took place in New York and Rio

and the various publications, workshops and meetings that were produced or held across the year,

helped to keep climate action on political and business agendas. None of this could have happened

without dedication of our staff and of course the individuals and organisations that continued to

generously support The Climate Group’s programmes during 2011/12.

The year ahead looks set to be as busy and as fruitful as the one just past. I look forward to working

with Mark and the Board to ensure it is a success for The Climate Group and the Clean Revolution.

John R Coomber

- Annual Report 2011/12 4

Chief Executive’s message

The 2011/12 year was one of highs and lows for climate action around the world. In many key

countries and regions the issue continued to be overshadowed by other political priorities. In the US,

as the race for the 2012 Presidential election gathered pace, discussion on climate change was

conspicuous by its absence. In Europe, the Eurozone crisis continued to dominate cabinet

discussions. And in China, the smooth transition in the country’s top leadership team was the

paramount political concern.

In spite of the challenging politics, progress to address climate change around the world was made.

At the UN Climate Conference in Durban, countries agreed to a set of decisions that have put the

world on a path to a new global climate treaty by 2015; this treaty should cover all countries and enter

into force in 2020. Cleantech investment also reached record levels in the 2011 calendar year, with

over $280 billion invested worldwide, led by the US and China. On the other hand, 2011 witnessed

record growth in greenhouse gas emissions, underlining the challenges that remain to effective

climate action: it is clear that time is running out if we are to keep greenhouse gas emissions at levels

consistent with a safe climate that allows continued prosperity.

Responding and adapting to these opportunities and challenges has continued to drive The Climate

Group’s work. As an organisation we focused on two broad areas of work in 2011/12. First and

foremost we launched our Clean Revolution initiative as the overarching umbrella for all our

programmes and projects over the next three years, focussing on inspiring and catalysing the

leadership we so urgently need. Second, but no less importantly, we began a systematic overhaul of

our management systems, including finance, HR and fundraising. Taken together, these have, I

believe, made The Climate Group a fitter, leaner and more focused organisation.

There is much to be proud of from the last year as a result of the hard work of our staff and our joint

initiatives with our corporate, government and other partners. Highlights include our annual Climate

Week New York events where we presented the Clean Revolution initiative for the first time and the

official launch of the initiative to the wider business and governmental community at the Rio Earth

Summit in June. These events were estimated to have reached some 550 million people globally.

In addition, we produced influential reports on leadership by subnational governments, ICT-based

sustainability solutions for city governments; electric vehicle procurement and scaling up efficient

lighting; all were presented to key decision-makers in each sector. Our successful low carbon lighting

work continued in India, with, Kolkata committing to scale up its pilot to over 100,000 luminaires and

on-going work to create broader policy frameworks in West Bengal and Odisha. Both New York City

and Sydney have also committed to scale up LED lighting as a result of our pilots. In China we started

pioneering work on low carbon urban development and climate financing, both of which have

attracted considerable attention from both the national and local governments and the private sector.

None of this would of course be possible without the generosity of our funders.

Central to our work over the coming year and beyond will be our growing network of Clean Revolution

Ambassadors. I was delighted to welcome our first Ambassadors in 2011/12. Prince Albert of

Monaco, former World Bank climate advisor Andrew Steer, entrepreneur Niklas Zennström and Indian

industrialist Tulsi Tanti; are all outstanding examples of individuals who have been at the forefront of

tackling climate change. Working with such leaders is what makes The Climate Group unique. By

creating a tipping point amongst the world’s leading decision makers and opinions formers I know that

The Clean Revolution can make the change we all need happen.

Mark Kenber

- Annual Report 2011/12 5

Who we are

Climate change is undoubtedly the greatest risk to us all in the future, especially in developing

countries where those least able to protect themselves will be worst affected through increased

poverty, as well as a range of other detrimental social and economic impacts.To avoid this, by 2050,

we need to reduce carbon emissions by around 80% of today's level. This target cannot be credibly

met unless world emissions of greenhouse gases peak before 2020 and start rapidly to decline

thereafter.

At The Climate Change Organisation (trading as The Climate Group), we know that time is running

out. Our appreciation of this urgency makes our approach different to other environmental charities.

Our approach is to engage leaders in government, business and public life who can reduce emissions

by the largest amounts in the shortest timeframes. We inspire leaders by communicating a compelling

narrative for change; we equip them by delivering evidence of success; and work in partnership with

them in driving transformative change.

We were founded in London in 2004 and currently employ 48 staff in Europe, North America,

Australia, China and India; with the majority of our staff based in our London headquarters. Our

regional offices have separate legal status. Governing boards are in place for all of our regional

operations. Our International Leadership Council of high profile business and government leaders,

chaired by the Rt. Hon. Tony Blair, helps us to gain access to high level networks, advises us on

strategy and provides visible support to our major initiatives.

“This year the human population will exceed 7 billion. The only path to alleviate poverty,

avert dangerous climate change and ensure sustainable development is to ensure that

modern energy is made available to all, and that it is provided as cleanly as possible.”

– Ban Ki-moon, Secretary General, United Nations

“Climate change is for real. We have just a small window of opportunity and it is closing

rather rapidly. There is not a moment to lose.”

— Dr Rajendra Pachauri, Chairman of the IPCC

Public Benefit

We take full account of the Charity Commission’s general guidance on public benefit to ensure

that our work programmes contribute to our charitable objects and aims. Our objectives - set out in

our governing document - are:

To promote for the benefit of the public the protection of the world’s climate systems in such parts

of the world and by such charitable means as the Trustees may from time to time think fit.

To advance the education of the public and interested parties in the effective reduction of

greenhouse gases and to promote and carry out for the public benefit research into the effects of

climate change and to publish and widely disseminate the useful results of such research.

- Annual Report 2011/12 6

Why we are here

Other environmental NGOs, many of whom are our partners, make their own important contribution

towards tackling global warming, for example working with the general public to raise awareness of

energy efficiency and behavioural change in the home. Uniquely, The Climate Group has chosen to

concentrate its work and resources on scaling up leadership, because we know that a small

community of influential leaders in the world have the power to make transformational action to tackle

carbon emissions a reality before the 2015 deadline. If we can create fundamental change this

decade in how we run our businesses and governments, by inspiring these individuals to provide

leadership, the 2050 target to reduce carbon emissions by 80% is still achievable.

Currently, there are pockets of strong climate leadership – but not at the scale required. We need to

speed up the pace at which world leaders are committing to a low carbon world. This is why we are

here. It takes courage to lead any change, so our role is to support leaders on their path. We bring

top leaders together and arm them with the evidence and tools they need to give them the confidence

to make brave decisions. We create opportunities for leaders to work collaboratively on more risky

transformational action at opportune times – programmes that can have transformational economic,

social and environmental outcomes for our communities.

“

Through our transformational projects, delivered together with a range of partners, we are also able to

help provide a range of social and economic benefits to local communities, for example giving them

access to cheaper energy or creating employment opportunities. Where we are successful with these

programmes, we are able to communicate these successes and models of delivery to other leaders in

our network around the globe, scaling up what initially would have been a small scale and modest

project to an initiative that has a game-changing impact on our ability to mitigate climate change by

2050.

1 Developed by and used under license from the Toronto Atmospheric Fund

These white lights have changed the way my little business used to be under the street

lights every evening. Earlier anything and everything would look yellow in colour

resulting into a decreased purchasing interest among buyers, but now that a buyer can

clearly differentiate between a green and blue, my sales figures have gone higher.”

- Gobind Saha, 61, owner of a roadside stall at Rabindra Sarani (India) is a

beneficiary of our global LightSavers1 project which piloted LED lighting in ten

cities around the world. The project proved their viability as a cost effective,

carbon reducing measure that can also bring significant economic and social

benefits for some of the most vulnerable communities in the developing world.

- Annual Report 2011/12 7

How we work

All our work is guided by four core principles:

Climate change is an economic issue not just an environmental concern. Government and

business leaders are sensitive to moral imperatives, but they respond best to clear messages and

proposals that combine economic, social and environmental benefits. Leaders also respond better to

approaches that enrol and involve people. So we present solutions professionally and in business

terms, making the economic case for their implementation.

A small community has a big influence. A small number of organisations have a huge influence on

the future economy and its carbon intensity. If the 200 sector-leading global companies, 50 leading

governments (national, regional and city), and most influential individuals within these organisations –

CEOs, political leaders, ministers, governors, mayors, senior executives and advisers pursue the

economic, strategic, social and environmental benefits of a low carbon future, their actions and

commitments can be decisive in making it happen.

Partnerships are more effective than organisations acting alone. Our active network of

governments, business and other partners enables new, innovative partnerships to generate original,

bold and exciting actions for low carbon growth. We look to partner like-minded organisations to

ensure that the total of our efforts is greater than the sum of their parts.

Clear communication of practical success stories drives action. Information about the science

and economics of climate change is extensive, occasionally overwhelming, and often inaccessible to

decision and opinion makers. Much can be achieved by presenting case studies and evidence of

success in new and compelling ways, and by communicating a positive vision of a low carbon future

at the same time as demonstrating that this future is truly achievable.

- Annual Report 2011/12 8

Our partners

We are a partnership driven and centred organisation. To deliver action on climate change at the

scale required, we work with our government and business members – it is their leadership and

actions that drives progress. We work with partners to deliver specific projects, events and reports.

We also work with non-government organisations (NGOs), where our combined efforts and expertise

can drive change forward more quickly.

NGOs: The World Bank, Carbon Disclosure Project, United Nations Global Compact, Climate

Knowledge Innovation Centre are official partners in our Clean Revolution initiative. We also work with

a range of other non-profits and academic organisations in delivery of our programmes worldwide.

Philanthropic: Nationale Postcode Loterij, Zennström Philanthropies, Esmée Fairbairn Foundation,

The Prince Albert II Monaco Foundation and Tellus Mater Foundation.

Government: State of Baden-Württemberg, Government of the Basque Country, State of Bavaria,

Region of Brittany, State of California, Government of Catalonia, Region of Île-de-France, Greater

London Authority, Region of Jämtland, Province of KwaZulu-Natal, Region of La Reunion, Province of

Manitoba, City of New York, State of New York, Government of North Rhine-Westphalia, Province of

Ontario, Province of Québec, Government of Quintana Roo, Region of Rhône-Alpes, State of São

Paulo, Government of Scotland, State of South Australia, State of Upper Austria, Region of Wallonia,

Welsh Assembly Government.

Corporate: Arup, Better Place, Bloomberg, British Telecommunications, Broad Group, CB Richard

Ellis Group, CECEP, China Mobile, Cisco, CLP Holdings Limited, Coca-Cola, Dell, Deutsche Bank,

Duke Energy, En+ Group, GE Capital Finance Australasia Pty Ltd, Goldman Sachs, Greenstone

Carbon Management, Hanergy, HP, HSBC, IWC Schaffhausen, Johnson Controls, JP Morgan Chase,

Landsea, News Corporation, Nike, Origin Energy, PassivSystems, Philips, Procter & Gamble, Suzlon,

Swiss Re, Taobao, VantagePoint Venture Partners, Veolia Environment, Visy.

International Leadership Council: We are also honoured to count on the guidance and support of

the international leaders that make up The Climate Group’s International Leadership Council (ILC).

Chaired by the Rt Hon. Tony Blair the ILC brings together leaders in business and government from

around the world, to accelerate global action on climate change and drive low carbon economic

transformation. The group meets annually at the World Economic Forum in Davos, Switzerland (for a

full list of Council members see page 23).

Advisory Board: We work with a small group of experts to help us shape and guide our Clean

Revolution Initiative. (see page 24 for a full list).

- Annual Report 2011/12 9

What we do

We deliver our organisational objectives by highlighting the opportunities presented by leadership in

the low carbon economy through:

Building coalitions that bring leaders together, bridging sectors and regional boundaries;

Developing and delivering, replicable transformational projects that deliver significant carbon

savings whilst benefiting local communities.

Running media and communications campaigns that heighten awareness, reward action and drive

commitment;

Organising events, forums and bilateral meetings to share knowledge, remove barriers and

facilitate new partnerships; and

Producing publications and briefings that demonstrate the benefits and opportunities of increased

action;

We draw on the progress that our members are making in deploying new technologies, policies,

financing mechanisms and business strategies for a low carbon future, and we use our in-house

communications expertise to show how these advances can become the new normal.

In short, we pinpoint the most influential people in government, business and society. We offer them a

credible, positive, politically neutral and inclusive vision of the low carbon future, arm them with hard

evidence and success stories and spur them into action so we can reach that tipping point where

transformation to a low carbon economy becomes inevitable.

We are fortunate to be beneficiaries of

the Nationale Postcode Loterij.

Their funding allows us the financial

confidence to plan strategically and to

respond quickly to breaking news and

changes in policy.

- Annual Report 2011/12 10

Our organisational aims: The Clean Revolution Initiative

Who we are, why we’re here, how we work and what we do, are all encapsulated in the current focus

of our work – our three year ‘Clean Revolution’ initiative. The initiative has three aims:

a) To inspire world leaders, by presenting them – through influential ambassadors – with a

compelling evidence base for the opportunities of a low carbon future;

b) To generate understanding of the key elements of successful low carbon transformation by

bringing decision-makers together to share best practice and support each other’s low carbon

projects;

c) To deliver a set of catalytic low-carbon projects that have the potential to create tipping-points for

scaling-up clean technology, financing and partnerships.

- Annual Report 2011/12 11

Work plan for 2011/12

During 2011/12 we set out to:

Present the Clean Revolution initiative during Climate Week NYC 2011 (September 2011).

Complete the operational plan and communication strategy for a full launch of the Clean

Revolution initiative at the June 2012 Rio+20 conference in Brazil.

Recruit leading international organisations, NGOs and corporations to support the Clean

Revolution initiative over three years. Key partnerships where targeted should be in place by the

Rio+ 20 conference.

Recruit 20 Clean Revolution Ambassadors – leading figures from the public and private

sectors to act as advocates for the Clean Revolution.

Develop variations of the Clean Revolution vision to reflect the main opportunities for low

carbon growth that exist in different regions of the world.

Work with our initiative partners to produce a series of powerful case studies which together

demonstrate that the actions needed to make a Clean Revolution happen are already being taken

by governments and corporations, help identify the key drivers and actions underpinning

successful low carbon leadership and can be emulated and scaled up by others.

Promote the Clean Revolution message, and profile leadership actions to members of our

business and government leaders’ network through events, reports, and the Clean Revolution

web site. Messaging and case studies will be tailored to the particular opportunities that exist in

different regions and will be designed to inspire others to act.

Monitor, evaluate and report on the initiative’s effectiveness, and refine the initiative plan where

necessary.

Integrate current work streams and staff structure with The Clean Revolution initiative. Work

streams that do not have a clear fit with the initiative’s specific objectives and approach will be

brought to a managed conclusion or spun off to an alternative institutional home.

Ensure The Climate Group’s long-term financial stability. In order to do so, we will:

o Continue to develop our operational and financial systems to control and manage down

cost further and ensure that we deliver maximum value to our funders.

o Build our fundraising capacity and capability to increase income streams.

o Create a strategic financial model to ensure that the Clean Revolution is fully resourced,

and opportunities can be exploited. As part of this, we will increase liquidity to manage down

financial risk.

- Annual Report 2011/12 12

Key achievements 2011/12

As our 2011/12 objectives indicate, the focus of our work over the past year has been to embed and

develop our three year Clean Revolution initiative across all aspects of the organisation; from

communications and content, through to events and partner relationships. We have also begun

implementing the necessary operational structures and measures to support the initiative.

The Clean Revolution is a partnership of international statesmen and governments, business leaders,

philanthropists, thinkers and opinion formers, calling for a swift, massive scale-up of clean energy and

infrastructure, and of smart technologies and design as the only feasible path to a smarter, better,

more prosperous future. The Clean Revolution has three linked aims:

Inspire world leaders, by presenting them – through influential ambassadors – with a

compelling evidence base for the opportunities of the Clean Revolution;

Generate understanding of the key elements of successful low carbon transformation and bring

decision-makers together to share best practice and support each other’s low carbon projects;

Deliver a set of catalytic low-carbon projects that have the potential to create tipping-points for

scaling-up clean technology, financing and partnerships.

Embedding and developing the Clean Revolution initiative

1. Launch of initiative

We successfully presented the Clean Revolution Initiative to partners and the public at the Opening

Ceremony of the annual Climate Week NYC in September 2011. Former UK Prime Minister. Rt. Hon.

Tony Blair, New York City Mayor Michael Bloomberg, Andrew Steer, the World Bank, Achim Steiner,

UNEP and a range of other leading political and business leaders from our global network took part at

the launch. The initiative was highly visible and gained considerable exposure – through our media

effort we reached an extended audience of approximately 200 million people.

We officially launched Clean Revolution during the Rio +20 Earth Summit in June 2012 as part of the

UN’s Rio+20 Conference on Sustainable Development. The event introduced the Clean Revolution to

a large and influential audience of business, government, finance and thought-leaders from across

the world. Speakers at the Summit included Tony Blair, Québec’s Premier Charest, HRH Prince Albert

II and the World Bank’s Andrew Steer. The launch was accompanied by a new website, four reports

and an open-letter to the G20 and Rio+20 from an impressive list of business and government

leaders.

In June 2012, we also organised and delivered the World Summit of States and Regions and hosted

this with the State of Rio de Janeiro in collaboration with nrg4sd. At the event over 50 governors,

premiers and ministers adopted an ambitious statement on tackling climate change with joint

commitments which will serve as guidance for their work in the coming months and years. This has

led to the establishment of working groups chaired by individual government members. The Climate

Group will continue to provide the secretariat and expertise to support these working groups to help

them speed up the adoption of low carbon commitments focussing on policy, technologies and

financing mechanisms globally.

- Annual Report 2011/12 13

2. Complete initiative plan, budget and external materials

Our Executive Management Team developed a strategic plan for the organisation in 2011, focusing

on effective and focused delivery of the Clean Revolution initiative and laying out headline objectives

and milestones for the campaign, as well as documenting and prioritizing all projects that we are

currently delivering or developing.

External materials, such as all branding materials associated with the Clean Revolution initiative were

developed in 2010-11 and completed in 2011.

3. Building our coalition

As planned, we were successful in establishing new partnerships with a number of influential

organisations to our initiative in time for the Rio+20 Summit in June 2012. The World Bank, the

Carbon Disclosure Project, and the UN Global Compact committed to working with us, providing in-

kind support to help deliver our Clean Revolution objectives.

A number of leading businesses also joined the initiative. Philips became the first Clean

Revolution lead partner and Suzlon, a major Asian wind turbine manufacturer, became a strategic

partner. We have also received support from the Prince Albert II of Monaco Foundation, the

Nationale Postcode Loterij, the Tellus Mater Foundation and Zennström Philanthropies.

Within our States & Regions Alliance, we also welcomed the French overseas region of La Reunion,

the German state of Baden-Wuerttemberg and the Austrian region of Upper Austria as new members.

On the corporate side, Hanergy, a leading Chinese energy company was an important signing as a

new Climate Group global member.

We have also been active in seeking to recruit Clean Revolution Ambassadors. Later in the year

we recruited five top-tier international personalities as our first Clean Revolution Ambassadors: Prince

Albert of Monaco, Indian industrialist Tulsi Tanti, former Special Envoy for Climate Change at the

World Bank Andrew Steer, former South Australia Premier Mike Rann and entrepreneur Niklas

Zennström. We believe that, along with the current members of our International Leadership Council,

we are in strong position to form a critical mass of ambassadors over the coming 12 months.

4. Building the case for change

Our most successful technology programme to date concluded this year. It saw 10 cities pilot LED

solutions and has provided compelling evidence that LED products that are already widely available

have reached maturity commercially. The major outcome of our work in this area has been that four of

the ten cities are moving to scale up, and in particular in India, Kolkata applied and secured funding

from the Asia Development Bank to replace 15,000 of its streetlights with LED products.

Other technology successes have continued with our SMART ICT and cities work. Since 2008 and

the publication of SMART 2020, The Climate Group has been recognised as having produced some

of the world’s leading work relating to the role that information technology can have in supporting

climate change mitigation at a policy and practical implementation level. During the year, invaluable

partnerships have been developed with the Planetary Skin Institute, Living Labs, Metropolis (to help us

build connections to cities), Accenture (to bring expertise for analysis) and Arup (for analytical

support). Following this work, we will work with over fifty cities next year to help them speed up the

deployment of ICT technologies which have the potential to deliver a reduction of 15% in global

Greenhouse Gas [GHG] emissions by 2020.

- Annual Report 2011/12 14

Our UK electric vehicles programme also successfully concluded this year. With support from the

Esmée Fairbairn Foundation and The Prince Albert II of Monaco Foundation, and working in

partnership with the Energy Savings Trust, CENEX, fleet owners and Transport for London; we have

been able to advise fleet owners on how to deploy green fleets without affecting the day to day

running of their operations. Aware of the need to back up practical demonstration with political will, we

also convened the EV20 Policy Initiative and Electrification Coalition in partnership with the Province

of Quebec. These continue to operate, and bring together States, Regions, Cities and Corporates to

share successes and communicate the lessons learnt from policies and practical action relating to

Electric Vehicle deployment. The main outcomes of our work is that in the UK it has influenced

London’s strategy and has encouraged the UK to update its EV incentives to cover commercial fleets;

and that practically Transport for London, in partnership with the Office for Low Emission Vehicles and

the Energy Saving Trust has committed to fund further work with individual fleets in London to speed

up their deployment.

Throughout 2011/12 we successfully developed and launched a range of Clean Revolution reports,

briefings and online content. In June, at the Rio+20 Conference we set out our central vision for the

initiative in our flagship report ‘Leadership for a Clean Revolution’, which proposes five critical traits of

low-carbon leaders. At the same time we launched reports on the energy savings and other benefits

of LED lighting, the pioneer work of our sub-national government network, and on China’s sustainable

development initiatives as well as the country’s importance in delivering a global clean revolution.

A wide variety of other briefings and reports were also produced throughout the year, which

highlighted key opportunities for low carbon growth in different regions of the world. Our Beijing office

published briefings on energy efficiency financing; low-carbon vehicles, and the prospects for smart

grid development in China. Case studies looking at the implementation of the 12th Five Year Plan in

China’s cities and innovative energy efficiency ideas for buildings were also produced. In Australia,

we released a set of briefings that analysed the federal government’s new Clean Energy Package and

what this important policy plan means for the country’s low-carbon future.

Detailed reports were also published on electric vehicles (EVs) and the use of information and

communication technology (ICT) in cities. Our ‘Plugged-In Fleets’ report – developed in collaboration

with Energy Saving Trust and Cenex, with support from Esmée Fairbairn Foundation, Transport for

London, and TNT’s Planet Me division – demonstrated that EVs are already a commercially viable

option for increasing numbers of business fleet owners. In our ‘Information Marketplaces’ report –

written in conjunction with Arup, Accenture, Horizon and the University of Nottingham, with support

from HSBC and Cisco – we showed the enormous economic opportunities that city governments

could tap with the right use of smart ICT. Both those reports attracted significant interest and media

coverage.

The new Clean Revolution website – http://cleanrevolution.org – went live at Rio. With fifty inspiring

case studies and more being added every week, the site is already proving to be a “go to” resource

for evidence of low carbon success, and is helping our Clean Revolution Ambassadors make the case

to their peers to replicate their carbon-cutting projects around the world.

5. Events and communications

A wide variety of events and communication outputs were successfully delivered in 2011/12, which

promoted the Clean Revolution message and profiled the leadership actions of our business and

government leaders.

In addition to our high level summit at Climate Week NYC, our second flagship event for the year was

the ‘Clean Revolution Leaders’ Summit’. This was held in Rio de Janeiro, Brazil, in June 2012 as part

- Annual Report 2011/12 15

of the United Nation’s Rio+20 Conference on Sustainable Development. Working in partnership with

the UN Global Compact’s ‘Corporate Sustainability Forum’ and the Rio de Janeiro State Government,

the summit presented the Clean Revolution initiative to a new and much larger business and

government audience. It also provided the opportunity to introduce new partners, launch a series of

four reports on leadership, LED lighting, China and State and Regional government actions (see

above), convene our annual meeting of States and Regions, and launch the ‘ICTs for Sustainable

Energy Partnership’ (ISEP) in support of the UN’s Sustainable Energy For All (SE4ALL) initiative.

Collectively, our events in Rio resulted in more than 500 media articles which reached an audience of

350 million people in over 40 countries. Through our social media effort we generated more than 1.5

million Twitter impressions.

Throughout the year we also convened a range of issue-specific roundtables and briefings. This

included a roundtable dialogue on mobilising $1 trillion in climate finance with Andrew Steer, the

World Bank’s Special Envoy on Climate Change, Theodore Roosevelt IV from Barclays Capital and

other senior members of New York’s financial sector. We also helped convene meetings for our state

and regional government partners on scaling up clean technologies, electric vehicles and the role of

small and medium enterprises (SMEs). In November 2011, we once again organised the Hong Kong

Business Summit on Climate Leadership, bringing together 160 top business and government leaders

from around the world.

Implementing operational structures and measures

1. Operational and financial systems

In November 2011 a full review of all our systems and procedures was initiated, identifying a range of

specific initiatives to improve processes covering the four areas outlined below:

Strategic Management Systems. Improving information management, decision making and

accountability to deliver the Clean Revolution initiative, long term sustainability and exploit

opportunities.

Operations Systems and Procedures. Improving information management, decision making,

planning and accountability.

Financial Management Systems. Improving information flow, decision making, cost control and

accountability.

Developing People. Helping people to succeed by supporting and developing them in order to

deliver against our plans.

Allied to the above, a review of policies was carried out with in areas such as internal financial control,

data protection, and anti-bribery and corruption. Following this the UK Employee Handbook was

reviewed and updated.

An action plan with measurable deliverables was created and approved by the Executive

Management Team in December 2012. The action plan was completed to deadline at the end of

June 2012 with the new systems ready to be taken into use by the Executive Management Team from

the beginning of the new financial year on 1 July 2012.

- Annual Report 2011/12 16

In tandem with this work:

In April 2012, work began on integrating the management accounts with the budget for reporting

purposes, the accounts were extended to include full reporting for Belgium and India, and

accounting coding, project and departmental codes, and layouts were revised. This work will be

completed by October 2012.

Internal contracts were reviewed and new ones created, tendering procedures written and new

contract management records and controls created.

An annual governance assurance framework was created for our global boards to provide

oversight on key governance, compliance, finance and HR processes. A pilot was run in the UK

in May 2012 and will be rolled out to all countries in early 2012/13.

2. Fundraising capacity and capability

Our five year, US$17m partnership with HSBC concluded on schedule during this financial year. In

recognition of the need to develop a long term, sustainable and diversified funding model, a UK Head

of Fundraising appointment was created and filled in December 2011 to develop and implement the

charity’s strategy to grow income from philanthropic supporters. In June 2012, a Fundraising Manager

was subsequently appointed to support this post holder and increase our fundraising capacity further,

and in particular to provide global support.

Work is on-going in creating a coherent global fundraising strategy and further expansion of the UK

team is highly likely. Since December 2011, new philanthropic support of over £3.9m has been

agreed towards our core and project costs over the next five years.

3. Strategic financial modelling

We implemented an improved strategic financial modelling process in December 2012, which enables

us better to project our financial position over a three year period. We will continue to develop this

model in due course, in line with our annual business plan and new accounting systems. We did not

manage to increase liquidity and, consequently, this will be built into our forward financial plans.

- Annual Report 2011/12 17

Our philanthropic supporters

Our vision of a low carbon, prosperous world for all, will only be possible through a collaborative

approach – one in which NGOs, foundations, corporations, governments and individuals work

together to achieve action and change. Grant-making foundations and private donors who are

willing to show their own leadership are crucial partners, ensuring our work:

remains independent;

is entrepreneurial and innovative, delivering programmes that can have a

transformational impact if successful, but undoubtedly because of the scale and level of

ambition come with a degree of risk;

can be flexible, adapting to and responding to opportunities as and when they arise; and

can take a longer term strategic approach.

Philanthropic supporters give more than just financial support. We value their leadership and view

of the world. We believe they have an important contribution to make at a strategic level. As such,

we will continue to invite philanthropic supporters to join our International Leadership Council or to

become Clean Revolution Ambassadors where their leadership can help drive forward our vision.

Our achievements during 2011-12 have only been possible with the support of the following

philanthropic supporters: the Dutch Postcode Lottery, Zennström Philanthropies, Esmée

Fairbairn Foundation, The Prince Albert II of Monaco Foundation and Tellus Mater

Foundation.

- Annual Report 2011/12 18

What we will do in 2012/13

Our top line objectives for the current financial year are to:

Maintain Thought Leadership

Further develop our work on the role of disruptive leadership and innovation in delivering a clean

industrial revolution, working with our partners to develop the content and analysis.

Further expand and develop the content of our TheCleanRevolution.org with the aim of making it

a recognised ‘go-to’ source on the transition to a low carbon economy with a target of [15,000+]

monthly visitors by June 2013.

Develop a portfolio of Clean Revolution briefings for our Ambassador network which layout both

a ‘meta narrative’ of the Clean Revolution and provide in-depth analysis on specific current

issues.

Strengthen the Clean Revolution Network

Recruit an additional 10-20 Clean Revolution Ambassadors.

Develop an engagement and communications programme for our Ambassadors, with at least 2-3

substantive actions (eg op-eds, speaking slots etc) agreed with each Ambassador for the year.

Recruit an additional 2-4 lead corporate partners and 5-10 new strategic partners.

Scope the feasibility and role of a BRICs clean revolution leaderships group.

Hold our annual Davos meeting with our International Leadership Council to discuss Clean

Revolution strategy and engagement.

Hold our 2nd annual Clean Revolution Leaders’ summit to bring our corporate, government and

international organisation partners together.

Hold our 4th annual Climate Week NYC meeting in September 2012. Preparations for the 5th

Climate Week NYC anniversary must be underway.

Continue to support our States & Regions members in developing the work of their working

groups on electric vehicles, small and medium enterprises, energy efficiency financing and

marine renewable energy. We will also look to develop links, where appropriate, with our other

Clean Revolution partners.

Develop a comprehensive global communications and events plan to support all initiative

objectives.

Catalyse New Transformative Actions

Work with partners to develop a project for a new transformational, low carbon innovation prize,

with a view to launching in 2015.

Work with our States & Regions members on new LED lighting commitments with the aim to

have 10 adopt concrete targets on standards, procurement and sales.

Work with ten Chinese cities to implement green growth plans in line with national commitments

on carbon intensity

Work with our ICT and city partners to begin piloting a selection of low-carbon ICT solutions in 10

global cities (population > 1 million).

Establish a coalition of companies and regional governments committed to accelerating

renewable energy, with targets committed to for 2014-2015.

Launch an international climate finance alliance of financial institutions focused on enhancing

climate finance into and out of China and make policy recommendations to the Chinese National

Development and Reform Commission.

- Annual Report 2011/12 19

Build our capacity to deliver

Secure new funding of £4 million raised for FY2012-13 and £2.5 million for FY2013-2014

Fully implement a new staff appraisal and development.

Complete annual business, budget and risk plans.

- Annual Report 2011/12 20

Structure, governance and management

The Climate Group is an international not-for-profit organisation with representation in London, New

York, Beijing, Hong Kong, New Delhi, Melbourne and Brussels. This report is produced by our

international headquarters, which is a UK charitable company limited by guarantee and registered

under the legal name of The Climate Change Organisation. Our statutory objects and powers are

established in a Memorandum of Association, and the company is governed under its Articles of

Association.

Our Trustees are elected to serve for three years and can be re-elected for a second term. After six

years, Trustees must take a minimum 12 months’ break before being eligible for re-appointment.

Trustees meet quarterly, with additional meetings if required, and delegate the day-to-day operations

of the organisation to the Executive Management Team headed by the Chief Executive. All Trustees

give of their time freely and no remuneration or expenses were paid in the year.

The Trustees look for a range of skills for representation on the board when recruiting and appointing

new Trustees, including familiarity with the ways that leading businesses and governments should

respond to climate change. Our current Board includes members with finance, communications,

business and legal expertise.

The induction of new Trustees is tailored to the skills, knowledge and expertise of each individual. Our

Chairman and Chief Executive brief new Trustees on recent progress, future plans, legal structure

and finances, as well as Trustees’ obligations in their role. We also encourage prospective Trustees

to observe one or two Trustee Board meetings to familiarise themselves with our work before formal

election.

The Board is supported by two committees. The Finance and Audit Committee strengthens oversight

of our finances, budgeting and fundraising performance, meeting with and obtaining reports from the

organisation’s auditors. The Remunerations and Appointments Committee recommends remuneration

strategies and policies and advises on matters pertaining to the appointment of Trustees. The

committees meet quarterly in addition to the regular Trustee meetings.

The Trustees are responsible for ensuring that major risks facing The Climate Group are appropriately

managed. The major risks identified are regularly reviewed and their potential impact assessed.

Strategies and controls to manage each risk appropriately are in place, with some subject to

continuous improvement. In those areas of our work where a degree of risk is inevitable, appropriate

steps have been taken to mitigate that risk where possible. Updates to the register and key risks are

reported to the Finance and Audit Committee.

The Climate Group is represented by legal entities in the US, Australia, China, Hong Kong, Belgium

and India which enable us to hire staff and raise and direct funds towards our work internationally

(see Note 15 of the accounts for further details). They work closely with the UK charity, with local

board positions for members of our Executive Management Team strengthening international

relationships. Our Chief Executive sits on the corporation board of the US, and together with our

International Programmes and Strategy Director, sits on the Australian, Chinese, Hong Kong, and

Belgian corporation boards, Our head office’s relationship with the regional offices is underpinned by

legal contracts. These contracts cover co-ordination of work programmes and licensing of the name

and trademarks to the regional representatives. Our UK trading subsidiary (The Climate Change

Organisation Services Limited), carries out any trading or service activities of the charity.

- Annual Report 2011/12 21

Carbon Management Policy

According to organisational policy The Climate Group’s operations and activities are (certified) carbon

neutral. As well as endeavouring to keep our CO2 emissions as low as possible by eliminating

unnecessary travel, we offset unavoidable emissions using carbon credits certified under the Verified

Carbon Standard or the Gold Standard. The Climate Group’s CO2 equivalent emissions during the

accounting period were 328 tonnes (2010/11: 331 tonnes).

The Climate Group’s Carbon Footprint report has been produced using Greenstone Carbon

Management’s Acco2untenterprise solution.

- Annual Report 2011/12 22

UK Board, management team and

advisers

Registered name The Climate Change Organisation

Trading name The °Climate Group

Charity number 1102909

Company number 4964424

Incorporation

14 November 2003 and registered as a UK charity on 26 March 2004

Principal office & Registered office

Second Floor, Riverside Building

County Hall

Belvedere Road

London SE1 7PB

John R Coomber (Chairman)

Matthew Anderson – resigned 13 October 2011

Zoë Ashcroft

Josh Berger – resigned 9 May 2012

Matt Brittin

Vivienne Cox

Steve Howard – resigned 27 August 2012

Andrew Smith

Dominic Waughray

Niklas Zennström – appointed 16 December 2011

Company Secretary

Ian McLintock – appointed 23 November 2011

Chief Executive Officer

Mark Kenber

Executive Management Team

Ben Ferrari, Director of Corporate Partnerships

Eduardo Gonçalves, International Communications Director

Mark Kenber, Chief Executive Officer

Ian McLintock, International Operations Director

Jim Walker, International Programmes and Strategy Director

Caroline Bayliss, Director Australia

Amy Davidsen, Executive Director US

Changhua Wu, Greater China Director

- Annual Report 2011/12 23

Accountants Solicitors

JS2 Limited Winston & Strawn London

One Crown Square CityPoint

Woking One Ropemaker Street

Surrey GU21 6HR London EC2Y 9HU

Bankers Auditors

HSBC Bank plc Crowe Clark Whitehill LLP

34 High Street St. Brides House

Walton-on-Thames 10 Salisbury Square,

Surrey KT12 1DD London EC4Y 8EH

Trustees/Directors of our International Boards

Professor Bill Moomaw, US

Steve Westly, US

Paul Dolan, US

Plato K. Yip, Hong Kong

Suresh Prabhu, India

Uday Khemka, India

Dr Kirit Parikh, India

John Thwaites, Australia

Keith Scott, Australia

International Leadership Council

Rt Hon Tony Blair, Former Prime Minister of Great Britain and Northern Ireland (ILC Chairman)

HSH Prince Albert II, Sovereign Prince of Monaco

Dr. Sultan Al Jaber, Abu Dhabi Future Energy Company and Masdar Initiative

Mr. Clesio Antonio Balbo, Usina Santo Antonio S/A

Mr. Thor Björgólfsson, Novator

Sir Richard Branson, Virgin Group

Lord Browne of Madingley, Riverstone

Mr. John Coomber, Pension Corporation

Dr. Steve Howard, IKEA

Mr Dennis Mehiel, Fourmco

Ms Karen Mehiel

Mr. Sunil Bharti Mittal, Bharti Group

Mr. James Murdoch, News Corporation

Mr. Idan Ofer, Better Place and Israel Corp.

Mr Mikael Ohlsson, IKEA

Mr. Boudewijn Poelmann, National Postcode Lottery

Mr. Anthony Pratt, Pratt Industries and Visy

Mr. Jim Rogers, Duke Energy

Mr. Alan Salzman, Vantage Point Venture Partners

Mr. Vinod Sekhar, Petra Group and Sekhar Foundation

Dr. Zhengrong Shi, Suntech

Mr. Tulsi Tanti, Suzlon Energy Ltd.

Mr. Wang Jianzhou, China Mobile

Mr Steve Westly, The Westly Group

Mr. Zhang Yue, Broad

Mr. Niklas Zennström, Atomico Investments and Zennström Philanthropies

- Annual Report 2011/12 24

Clean Revolution Initiative Advisory Board

John Elkington, Volans

Jennifer Morgan, World Resources Institute

Professor ZHOU Dadi,

Josh Suskewicz, Innosight

Jarl Krausing, World Bank

Paul Simpson, Carbon Disclosure Project

- Annual Report 2011/12 25

Financial results

The Statement of Financial Activities (page 32) and the following show our full financial results for the

year. Financial information on this report relates to both the UK charity (indicated by “Charity” in the

accounts) and the consolidated reports of the UK, the US, Australia, China, Hong Kong and India

(indicated by “Group”). Figures in this section reflect the consolidated Group figures.

Income

Our total income for the 2011/12 financial year was £4,063,641 (2011: £6,306,871), which consists of

voluntary income of £3,995,228 (2011: £6,018,292), income from activities for generating funds of

£66,638 (2011: £286,499) and investment income of £1,775 (2011: £2,080).

Development

We continued to develop our programmes with a diverse group of funders, but giving from individuals,

foundations, government grants and corporate philanthropy remains challenging. This reflects the

continuing economic down turn and a move away from giving to organisations working on the climate

change agenda.

We directed 10% (2011: 7%) of our budget towards generating funds, with most allocated to staff

costs.

Our new strategy makes a compelling fundraising case and we have also continued to invest in our

fundraising capability and, consequently, are confident that we shall substantively increase our

fundraising income over the coming year and beyond.

Expenditure

During the accounting period we spent a total of £5,440,288 (2011: £7,845,382), including £1,282,737

on research activities (2011: £2,033,147) which represents a significant investment in

transformational technologies which will form case studies for the Clean Revolution, £1,915,255 (2011:

£2,574,373) on raising awareness of climate change and its solutions, and £1,595,679 on education of

business and government partners on leadership opportunities associated with ‘low carbon’ policy

and strategy (2011: £2,554,977). The cost of generating funds was £516,505 (2011: £514,714) and

governance costs were £130,112 (2011: £168,171).

Financial position at year end

We made a deficit of £1,376,647 (2011: £1,538,511). This partly reflects lower income than expected

and planned utilisation of prior year reserves. We closed the reporting period with a positive position

of £362,350 (2011: £1,727,373) comprising a restricted funds position of £307,375 (2011: £1,170,261)

and an unrestricted funds position of £54,975 (2011: £557,112). The result included a gain on

revaluation of foreign currency subsidiaries of £11,624 (2011: £26,678).

- Annual Report 2011/12 26

Financial strategy

Reserves Policy

The Trustees are of the opinion that the level of total reserves should normally equate to 25% of

projected consolidated global resources due to be expended in the following 12 months, and that

unrestricted reserves should never be less than zero.

The Trustees recognise that it may be appropriate to allow the level of reserves to drop below, this

benchmark at times as a result of short-term cash inflows, the nature of funding restrictions or in order

to ensure our programmes’ continuity.

Applying this ratio to the forecasts for the year ending 30 June 2012, the required level of reserves

would be approximately £1.2 million, versus actual reported reserves of £1.7 million.

Financial Risk

Our reserves have fallen, but the UK forward income pipeline is both much more diversified and

includes significantly more funding bids than last year.

The group’s cost structure and internal value chain were assessed to identify how cost might best be

managed down with minimal impact on capability. For example, our global IT migration to the cloud in

January 2013 has reduced our IT cost base by circa £40k pa and simultaneously improved our IT

capability. During 2012/13, we have achieved significant cost reductions globally with resource

savings being taken either to reduce cost overall or diverted to build capability, in areas such as our

agile cities work. Our work reported last year, to develop further our financial and business planning,

management and reporting systems and procedures was completed on time, but these have not yet

been taken fully into use and we must now do so. However, allied to the above, we have identified

work that will improve our efficiency and effectiveness further, and work is on-going to develop further

our new business model.

We have also implemented flexibility analysis of income projections, which are updated and reported

to the Finance and Audit committee monthly. This system has been further enhanced by

implementing a financial dashboard to track key metrics using a traffic light system. For 2013/14, UK

income projections, which account for half of the global budget, have been reduced by 10% below the

most likely forecast as a measure of prudence.

As at 1 March 2013, The Climate Group needed to generate £1.2m of funding (as a minimum) in

order to remain cash positive to year end 2012/13 (30 June 2013) and the forecast worst case income

projection was for funding of £1.15m, of which £0.9m was contracted. This does not include access to

interest free loans of £200k, an estimated £100k for disposal of a valuable top level domain name or

the core contribution from a recently awarded £2.3m two year restricted contract for our work in India

to be paid beginning April 2013. Taking these additional factors into account, cash flow would still be

forecast to remain positive to 30 June 2013 even under the worst case income projection.

In 2013/14, we have budgeted UK expenditure of £3m of which £0.28m is contingency expenditure to

fund innovative global projects, but which will only be committed subject to achieving budget targets,

and there is also £0.25m of risk funding. Forecast income is £3.6m, which has been reduced to £3.3m

in the budget as a risk mitigation measure. This income forecast includes £1.7m of contracted

income, including prudent estimates of membership income for the period. The Very Bad income

scenario forecast is currently £2.4m. The minimum income required to remain cash positive is £2.3m

but taking the above factors into account the cash position remains overall positive.

- Annual Report 2011/12 27

Financial Strategy

In response to the end of the very large HSBC funding in 2011, we expanded our income generation

strategy. This has focussed on building additional major corporate partnership agreements

supplemented by a broad based fundraising income stream from trusts, individuals and sponsorship.

Our first lead partnership agreement was signed in January 2012, the 2nd

in December 2012 and we

are in advanced discussions with other potential partners. The forward funding pipeline has continued

to both build and diversify, and we now have substantial future secured income. We were recently

notified of a very generous further funding commitment of circa £2m, over 2 years, from the Dutch

Postcode Lottery. The Trustees are confident the strategy is proving itself, resulting in a far more

secure forward funding position than last year.

The key challenges in moving forward are to manage our cash position, particularly June to

December 2013, and begin to build our financial reserves to reduce the current high level of financial

risk. We will achieve this by building on our work over the past year in enhancing our organisational

systems and processes to deliver maximum value for every pound our funders donate to our work.

Specifically, the board have set 3 objectives for each office in developing the 2013/14 budget:

Adequate projected cash holdings in each country in each month to reduce dependence on the

UK.

Year-end targets for each country that will increase reserves at rates that will achieve our

reserves policy target by year end 30 June 2015.

A UK cash target at year end 30 June 2014 to ensure long term viability.

These targets are challenging, but we believe them to be fully achievable.

Consequently, the Trustees are confident that The Climate Group will remain a successful and viable

organisation over the coming year and beyond.

- Annual Report 2011/12 28

Trustees’ responsibilities in relation to the Financial Statements

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in

accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year in

accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom

Accounting Standards) and applicable law.

Under company law the Trustees must not approve the financial statements unless they are satisfied

that they give a true and fair view of the state of affairs of the company and of its net profit/loss for that

period. In preparing these financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;

make judgements and estimates that are reasonable and prudent;

state whether applicable accounting standards have been followed, subject to any material

departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to

assume that the company will continue on that basis.

The Trustees are responsible for keeping proper accounting records that are sufficient to show and

explain the company’s transactions and disclose with reasonable accuracy at any time the financial

position of the company and to enable them to ensure that the financial statements comply with the

Companies Act 2006. They are also responsible for safeguarding the assets of the company and

hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Provision of information to auditors

Each of the persons who are a Trustee at the date of approval of this report confirms that:

so far as he/she is aware, there is no relevant audit information of which the company’s

auditors are unaware; and

the Trustee has taken all the steps that he/she ought to have taken as a Trustee in order to

make himself/herself aware of any relevant audit information and to establish that the

company’s auditors are aware of that information.

Members of the Board of Trustees who are directors for the purpose of company law and Trustees

for the purpose of charity law, who served during the period and up to the date of this Report are set

out on page 22.

- Annual Report 2011/12 29

Auditors

A resolution to re-appoint Crowe Clark Whitehill LLP as auditors will be proposed at the forthcoming

Annual General Meeting.

This report has been prepared in accordance with the Statement of Recommended Practice:

Accounting and Reporting by Charities (issued in March 2005).

Approved by the Board of Trustees on 22 March 2013 and signed on its behalf by:

John R Coomber

Chairman of the Board

- Annual Report 2011/12 30

Independent auditors’ report to the Trustees

We have audited the financial statements of The Climate Change Organisation for the year ended 30

June 2012 set out pages 32 to 46.

The financial reporting framework that has been applied in their preparation is applicable law and

United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This Report is made solely to the charitable company’s members, as a body, in accordance with

Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we

might state to the charitable company’s members those matters we are required to state to them in an

auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or

assume responsibility to anyone other than the charitable company and the company’s members as a

body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of Trustees and auditor

As explained more fully in the Statement of Trustees' Responsibilities, the Trustees (who are also the

directors of the charitable company for the purpose of company law) are responsible for the

preparation of the financial statements and for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with

applicable law and International Standards on Auditing (UK and Ireland). Those standards require us

to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements

sufficient to give reasonable assurance that the financial statements are free from material

misstatement, whether caused by fraud or error. This includes an assessment of: whether the

accounting policies are appropriate to the company's circumstances and have been consistently

applied and adequately disclosed; the reasonableness of significant accounting estimates made by

the directors; and the overall presentation of the financial statements.

In addition, we read all the financial and non-financial information in the Trustees’ Annual Report to

identify material inconsistencies with the audited financial statements. If we become aware of any

apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

give a true and fair view of the state of the group’s and the charitable company’s affairs as at 30

June 2012 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 requirements of the Companies Act 2006.

- Annual Report 2011/12 31

Emphasis of matter – going concern

In forming our opinion, which is not qualified, we draw attention to the disclosures in note 1(a) of the

financial statements concerning the charitable company’s ability to continue as a going concern.

The Climate Change Organisation, like many charities, is dependent on voluntary income to fund its

activities and therefore does not have adequate committed funding in place to meet its future

commitments. The Climate Change Organisation is continuing to implement a new strategy to

generate income and is dependent on the success of this strategy in order to continue as a going

concern. The Trustees therefore consider that a material uncertainty exists that may cast doubt on the

entity’s ability to continue as a going concern. The financial statements do not include the

adjustments that would result if the company was unable to continue as a going concern.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Trustees Annual Report for the financial year for which the

financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires

us to report to you if, in our opinion:

the parent charitable company has not kept adequate accounting records, or returns adequate

for our audit have not been received from branches not visited by us; or

the parent charitable company 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.

Pesh Framjee FCA

Senior Statutory Auditor

for and on behalf of

Crowe Clark Whitehill LLP

Statutory auditor

St Bride’s House

10 Salisbury Square

London

EC4Y 8EH

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE GROUP

(INCLUDING AN INCOME & EXPENDITURE ACCOUNT)

For the year ended 30 June 2012

- Annual Report 2011/12 32

Consolidated Financial Statements

Notes Restricted Unrestricted Year ended

30 June

2012

Year ended

30 June

2011

Incoming resources £ £ £ £

Incoming resources from generated funds

Voluntary income

Donations & similar funding 3,445 199,852 203,297 177,926

Grants 2 1,868,337 746,716 2,615,053 4,690,469

Membership 711,219 465,659 1,176,878 1,149,897

__________ __________ __________ __________

2,583,001 1,412,227 3,995,228 6,018,292

Activities for generating funds

Other 22,709 43,929 66,638 286,499

__________ __________ __________ __________

22,709 43,929 66,638 286,499

Investment income 1,775 - 1,775 2,080

__________ __________ __________ __________

Total incoming resources 2,607,485 1,456,156 4,063,641 6,306,871

__________ __________ __________ __________

Resources expended

Costs of generating funds

Costs of generating voluntary income 287,276 229,229 516,505 514,714

Charitable activities

Research 895,738 386,999 1,282,737 2,033,147

Communications 1,007,630 907,625 1,915,255 2,574,373

Education & engagement 1,238,864 356,815 1,595,679 2,554,977

__________ __________ __________ ___________

3,142,232 1,651,439 4,793,671 7,162,497

Governance costs 52,487 77,625 130,112 168,171

__________ __________ __________ __________

Total resources expended 3 3,481,995 1,958,293 5,440,288 7,845,382

__________ __________ __________ __________

Net outgoing resources for the period

(being the net income) before other

recognised gains and losses 4 (874,510) (502,137) (1,376,647)) (1,538,511)

Other recognised gains and losses

Gain on revaluation of foreign currency

subsidiaries

11,624 - 11,624 26,678

__________ __________ __________ __________

Net movement in funds (862,886) (502,137 (1,365,023) (1,511,833)

Funds at 30 June 2011

1,170,261 557,112 1,727,373 3,239,206

__________ __________ __________ ___________

Funds at 30 June 2012 10 307,375 54,975 362,350 1,727,373

__________ __________ __________ __________

All of the above results derive from continuing activities. There are no gains and losses other than those disclosed

above. Movements in funds are disclosed in Note 10 to the financial statements.

CONSOLIDATED CASH FLOW STATEMENT

For the year ended 30 June 2012

- Annual Report 2011/12 34

Year ended

30 June

2012

Year ended

30 June

2011

£ £

Net cash (outflow)/inflow from operating

activities (Note a) (755,089) (2,099,180)

Returns on investment and servicing of

finance

Bank interest received 1,775 2,080

Capital expenditure and financial investment

Payments to acquire tangible fixed assets (137) (28,173)

Decrease in cash (753,451) (2,125,273)

Net cash at start of the year 1,767,874 3,893,147

Net cash at end of the year 1,014,423 1,767,874

NOTES TO THE CASH FLOW STATEMENT

a) Reconciliation of net incoming resources to net cash

inflow from operating activities

2012 2011

£ £

Net (outgoing)/incoming resources for the year (1,376,647) (1,538,511)

Bank interest received (1,775) (2,080)

Depreciation 64,554 70,703

Loss on disposal of fixed assets 2,133 23,970

Foreign exchange differences, excluding gains arising on

revaluation of fixed assets

10,301

29,130

Decrease in debtors 34,462

Increase/(Decrease) in creditors 511,883 (682,392)

Net cash inflow from operating activities (755,089) (2,099,180)

NOTES TO THE ACCOUNTS

For the year ended 30 June 2012

- Annual Report 2011/12 35

Notes to the consolidated Financial Statements 1 Accounting policies

a) Basis of accounting

The financial statements have been prepared under the historical cost convention and in accordance with applicable

UK accounting standards and follow the recommendations in Statement of Recommended Practice, Accounting and

Reporting by Charities (SORP 2005) and the Companies Act 2006.

The statement of financial activities (SOFA) and balance sheet consolidate the financial statements of the charity and

its subsidiary undertakings (see Note 15). The results of the charity and its five subsidiaries are consolidated on a

line-by-line basis. No separate SOFA has been prepared for the charity alone as permitted by Section 408 of the

Companies Act 2006.

Going concern

The Climate Change Organisation, like many charities is dependent on voluntary income to meet its future

commitments. The Climate Change Organisation's ability to generate voluntary income going forward is significantly

dependent on the charity's new strategy and planned income generation from strategic partners and trusts. As

discussed in more detail in the Trustees' Report, as at March 2013 there was not sufficient committed funding in place

to allow the charity to meet its forecast liabilities for the following 12 months. If income generation targets are not met

then the charity would be unable to continue as a going concern

The Trustees have considered the charity's new strategic plan and current income forecasts for 2012/13 and beyond.

The Trustees are confident that the charity's strategy for future income generation will be successful. They have

therefore prepared the Financial Statements on the going concern basis. The key issues and uncertainties in respect

of the going concern assumption are set out in the ‘Financial Risk’ section of the Trustees’ Report.

b) Income

Voluntary income is received by way of donations and gifts and is included in full in the Statement of Financial

Activities when receivable. Donated services and gifts in kind are brought in at their value to the charity as income and

the appropriate expenditure.

Income is credited to incoming resources when the conditions of entitlement, certainty and measurement have been

met. Where income relates to a specific future period, it is deferred.

Membership and partnership income is recognised in the financial statements evenly over the period to which the fee

relates.

Legacies, if received, are credited to the Statement of Financial Activities when the entitlement has been established,

the amount receivable is known and the likely date of receipt has been fixed.

Grants for the purchase of fixed assets, if received, are credited to restricted incoming resources when received or

receivable whichever is earlier. Depreciation on the fixed assets purchased with such grants is charged against the

restricted fund.

NOTES TO THE ACCOUNTS (CONTINUED)

For the year ended 30 June 2012

- Annual Report 2011/12 36

c) Expenditure

Cost of generating funds are those costs incurred in the charity seeking voluntary contributions

Resources expended are recognised in the period in which they are incurred. Resources expended include

attributable VAT which cannot be recovered.

Resources expended are allocated to a particular activity where the cost relates directly to that activity. Remaining

support costs are apportioned to activities based on staff time, which is an estimate of the amount attributable to each

activity. Note 3 shows how support costs have been allocated to each activity.

d) Fixed assets and depreciation

Fixed assets are stated at cost and such items of equipment are capitalised where the purchase price exceeds

£1,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities.

Depreciation is provided on all tangible assets at rates calculated to write each asset down to its estimated residual

value on a straight line basis as follows:

Office equipment - 3 years

Furniture and fixtures - 3 years

e) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these

criteria is charged to the fund together with a fair allocation of support costs.

Unrestricted funds are donations and other incoming resources receivable or generated for the objects of the charity.

f) Governance costs

Governance costs include those incurred in the governance of the charity and its assets and are primarily associated

with compliance with constitutional and statutory requirements.

g) Pension costs

Contributions to the defined contribution scheme are charged to the statement of financial activities as incurred.

h) Operating leases

Rental costs under operating leases are charged to the SOFA on a straight line basis over the lease life.

i) Foreign currencies

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Foreign

currency balances have been translated at the rates of exchange ruling at the balance sheet date. The results of

overseas operations are translated at the closing rates of exchange during the period and their balance sheets at the

rates ruling at the balance sheet date.

NOTES TO THE ACCOUNTS (CONTINUED)

For the year ended 30 June 2012

- Annual Report 2011/12 37

2 Grants

Restricted Unrestricted

Year ended

30 June

2012

Year ended

30 June

2011

£ £ £ £

Corporations 1,342,797 - 1,342,797 2,382,941

Government 138,136 - 138,136 397,862

Foundations & NGOs 387,404 746,716 1,134,120 1,909,666

__________ __________ __________ __________

1,868,337 746,716 2,615,053 4,690,469

__________ __________ __________ __________

3 Analysis of total resources expended

Direct

staff costs

Other

direct

costs

Total

direct

costs

Support

staff costs

Other

support

costs

Total

support

costs

Year

ended 30

June 2012

Year ended

30 June

2011

£ £ £ £ £ £ £ £

Cost of generating funds

378,908 61,389 440,297 23,790 52,418 76,208 516,505 514,714

Research 699,996 264,305 964,301 106,817 211,619 318,436 1,282,737 2,033,147

Communications 834,869 563,605 1,398,474 175,659 341,122 516,781 1,915,255 2,574,373

Education & Engagement 809,109 381,066 1,190,175 135,166 270,338 405,504 1,595,679 2,554,977

Governance 42,986 53,020 96,006 11,502 22,604 34,106 130,112 168,171

________ ________ ________ ________ ________ ________ _________ _________

Total 2012 2,765,868 1,323,385 4,089,253 452,934 898,101 1,351,035 5,440,288 7,845,382

________ ________ ________ ________ ________ ________ _________ _________

Total 2011 3,664,436 1,952,291 5,616,727 686,964 1,541,691 2,228,655 7,845,382

________ ________ ________ ________ ________ ________ _________

Support costs are apportioned to activities based on staff time, which is an estimate of the amount of effort attributable

to each activity. Support costs include such expenditure as rent, office running costs and financial and legal services.

NOTES TO THE ACCOUNTS (CONTINUED)

For the year ended 30 June 2012

- Annual Report 2011/12 38

4 Net incoming/(outgoing) resources

is stated after charging:

Year ended

30 June

2012

Year ended

30 June

2011

£ £

Operating lease rentals – buildings 180,913 317,366

Depreciation 42,665 70,703

Fees payable to charity auditors: audit of the charity’s annual accounts 21,700 22,200

Fees payable to charity auditors: audit of the charity’s trading subsidiary pursuant

to legislation - 2,100

__________ __________

The Trustees received neither remuneration nor reimbursed expenses during either period.

5 Employees

Staff costs during the period amounted to: Year ended

30 June

2012

Year ended

30 June

2011

£ £

Wages & salaries 2,619,643 3,622,479

Social security costs 184,839 250,805

Employer’s pension contributions 215,401 289,772

Other staff costs 67,958 39,553

______________ ______________

3,087,841 4,202,609

Freelance staff - 7,338

Temporary staff 130,961 141,453

__________ __________

3,218,802 4,351,400 ________________ _______________

Number of employees with emoluments exceeding £60,000 2012 2011

Number Number

£60,000 - £70,000 p.a. 0 1

£70,001 - £80,000 p.a. 2 1

£80,001 - £90,000 p.a. 1 2

£90,001 - £100,000 p.a. 2 4

£100,001 - £110,000 p.a. - 1

£110,001 - £120,000 p.a. 1 -

£120,001 + p.a. 1 4

NOTES TO THE ACCOUNTS (CONTINUED)

For the year ended 30 June 2012

- Annual Report 2011/12 39

5 Employees (continued)

Retirement benefits are accruing to the seven higher paid staff under defined contribution schemes. Employer

contributions of £43,656 (2011: £64,190) were made during the year.

The average weekly number of employees (full time equivalents) during the period was as follows:

Year ended

30 June

2012

Year ended

30 June

2011

Fundraising & publicity 5.0 7.5

Research 3.2 3.0

Communications 9.1 13.1

Education & engagement 28.3 30.1

Support 12.5 12.8

Governance 2.0 4.5

___________ ___________

60.1 71.0

__________ __________

6 Tangible fixed assets

(Group)

Office Leasehold

Equipment improvements Total

£ £ £

Cost

At 1 July 2011 371,609 12,697 384,306

Revaluation on consolidation 4,957 224 5,181

Additions 137 - 137

Disposals (90,908) (8,886) (99,794)

__________ __________ __________

At 30 June 2012 285,795 4,035 289,830

__________ __________ __________

Depreciation

At 1 July 2011 252,644 10,006 262,650

Revaluation on consolidation 3,634 224 3,858

Charge for the period 63,209 1,345 64,554

Disposals (88,775) (8,886) (97,661)

__________ __________ __________

At 30 June 2012 230,712 2,689 233,401

__________ __________ __________

Net book value

At 30 June 2012 55,084 1,345 56,429

__________ __________ __________

At 1 July 2011 113,217 8,439 121,656

__________ __________ __________

NOTES TO THE ACCOUNTS (CONTINUED)

For the year ended 30 June 2012

- Annual Report 2011/12 40

6 Tangible fixed assets (Continued)

(Charity)

Office Leasehold

equipment improvements Total

£ £ £

Cost

At 1 July 2011

And at 30 June 2012 202,910 4,035 206,945

__________ __________ __________

Depreciation

1 July 2011 122,937 1,345 124,282

Charge for the period 41,320 1,345 42,665

__________ __________ __________

30 June 2012 164,257 2,690 166,947

__________ __________ __________

Net book value

30 June 2012 38,653 1,345 39,998

__________ __________ __________

1 July 2011 79,973 2,690 82,663

__________ __________ __________

7 Debtors

Group

30 June

2012

Group

30 June

2011

Charity

30 June

2012

Charity

30 June

2011

£ £ £ £

Trade debtors 253,667 282,353 130,155 165,003

Other debtors 126,744 129,882 - 5,665

Due from subsidiary companies - - 272,007 486,078

Prepayments 69,088 111,804 48,553 81,944

Accrued income 60,461 20,383 47,691 - __________ __________ __________ __________

509,960 544,422 498,406 738,690 __________ __________ __________ __________

NOTES TO THE ACCOUNTS (CONTINUED)

For the year ended 30 June 2012

- Annual Report 2011/12 41

8 Creditors: amounts falling due within one year

Group

30 June

2012

Group

30 June

2011

Charity

30 June

2012

Charity

30 June

2011

£ £ £ £

Trade creditors 93,915 124,495 51,163 102,445

Taxation & social security 57,265 88,399 48,388 68,058

Other creditors 126,598 33,205 100,000 -

Due to subsidiary companies - - 84,250 -

Accruals 306,095 148,323 254,645 80,121

Deferred income 634,589 312,157 373,752 209,237

__________ __________ __________ __________

1,218,462 706,579 912,198 459,861

__________ __________ __________ __________

Deferred income

At 1 July

2011

Released to

incoming

resources

Deferred in

the year

At 30 June

2012

£ £ £ £

Membership 200,904 (200,904) 373,751 373,751

Grants 8,333 (8,333) - -

__________ __________ __________ __________

Charity total 209,237 (209,237) 373,751 373,751

The Climate Group Inc 9,364 (9,364) 235,320 235,320

The Climate Group Limited 39,460 (39,460) 21,683 21,683

The Climate Group (Hong Kong) Limited - - 2,064 2,064

The Climate Group (India) Limited 10,000 (10,000) - -

The Climate Group (China) Limited 44,096 (44,096) 1,771 1,771

__________ __________ __________ __________

Consolidated total 312,157 312,157 634,589 634,589

__________ __________ __________ __________

NOTES TO THE ACCOUNTS (CONTINUED)

For the year ended 30 June 2012

- Annual Report 2011/12 42

9 Analysis of net assets between funds (Group)

Restricted

funds

Unrestricted

funds

Total

funds

£ £ £

Tangible assets 16,431 39,998 56,429

Current assets 881,020 643,363 1,524,383

Current liabilities (590,076) (628,386) (1,218,462)

__________ __________ __________

Net assets 307,375 54,975 362,350

__________ __________ __________

Analysis of net assets between funds (Charity)

Restricted

funds

Unrestricted

funds

Total

funds

£ £ £

Tangible assets - 39,998 39,998

Current assets 335,268 738,907 1,074,175

Current liabilities (188,268) (723,930) (912,198)

__________ __________ __________

Net assets 147,000 54,975 201,975

__________ __________ __________

NOTES TO THE ACCOUNTS (CONTINUED)

For the year ended 30 June 2012

- Annual Report 2011/12 43

10 Movement in funds (Group)

At 1 July Incoming Outgoing Transfers and

Exchange

At 30 June

2011 resources Resources differences 2012

Restricted Funds £ £ £ £ £

Carbon Capture and Storage (CCS) 286,110 - (179,110) - 107,000

HSBC Climate Partnership - 588,032 (588,032) - -

Global Alliance - 88,840 (68,840) - 20,000

Smart 2020 - 64,002 (44,002) - 20,000

Clean Revolution Initiative - 48,597 (48,597) - -

IIGCC 63,161 213,309 (276,470) - -

Electric Vehicles 31,000 - (31,000) - -

380,271 1,002,780 1,236,051 - 147,000

China Programme 125,981 746,021 785,387 13,518 100,133

Hong Kong Programme 69,683 194,636 354,538 2,035 (88,184)

US Programme 290,681 531,708 882,982 7,511 (53,082)

Australia Programme 272,815 115,422 219,157 (4,545) 164,535

India Programme 30,830 16,918 3,880 (6,895) 36,973

_________ __________ __________ __________ __________

Total restricted funds 1,170,261 2,607,485 3,481,995 11,624 307,375

Unrestricted funds 557,112 1,456,156 1,958,293 - 54,975

_________ __________ __________ __________ __________

Total funds 1,727,373 4,063,641 5,440,288 11,624 362,350

_________ __________ __________ __________ __________

Total incoming resources for the charity were £2,458,936 (2011: £4,253,571) and the deficit for the year was

£735,408 (2011: £1,545,944 deficit).

NOTES TO THE ACCOUNTS

For the year ended 30 June 2012

- Annual Report 2011/12 44

10 Movement in funds of the Group (continued)

Purpose of funds

Carbon Capture and

Storage (CCS)

To promote investment in and policy support for Carbon Capture and Storage

technology internationally.

HSBC Climate

Partnership

To promote low carbon solutions and practices in five world cities: Hong Kong,

London, Mumbai, New York and Shanghai, engaging businesses,

governments and consumers in carbon emissions reduction.

Global Alliance Funding to mobilise our global alliance of leading governments, businesses

and opinion formers towards low-carbon leadership, and to engage them in our

market transformation, research and communications projects.

Smart 2020

Funding to showcase key city-based ICT solutions, and to advocate policies

that support scale up and replication.

Clean Revolution

Initiative

Funding for a three year, global communications initiative with a compelling

vision of a low carbon future and a strategy to persuade a critical mass of the

worlds most powerful and influential leaders to support that vision.

IIGCC Funding for the Institutional Investors Group on Climate Change, a forum for

collaboration on climate change for European investors.

Electric Vehicles (EVs) Funding to speed up the deployment of plug-in electric vehicles as part of our

sustainable mobility future.

China Programme Funding to engage China’s government, cities and businesses.

India Programme Funding to engage India’s government, cities and businesses.

Hong Kong Programme Funding to engage Hong Kong’s government, cities and businesses.

US Programme Funding to develop The Climate Group's outreach to US state governments,

cities and businesses. The programme includes the development of

relationships with key US states, cities and corporations.

Australia Programme Funding to engage Australia’s government, cities and businesses.

NOTES TO THE ACCOUNTS (CONTINUED)

For the year ended 30 June 2012

- Annual Report 2011/12 45

11 Taxation

The Climate Change Organisation has charitable status and as such is partially exempt from tax on its income and

gains to the extent that they are applied to its charitable objects.

12 Related party transactions

There were no related party transactions during the 12 month period to 30 June 2012.

13 Leasing commitments

The annual commitments under non cancellable operating leases are as follows:

2012 2011

Land and Land and

Buildings Buildings

£ £

Expiring within 1 year 79,046 45,000

Expiring between 1 and 2 years 24,403 63,250

Expiring between 2 and 5 years 84,383 101,800

========= =========

14 Subsidiaries

Advantage has been taken of the exemptions available under FRS8 from the disclosure of certain intra group

transactions. The charity is represented by legal entities incorporated in the United States (registered on 5 March

2004), Australia (registered on 19 May 2005), China (registered on 7 December 2007) and Hong Kong (registered on

10 January 2008). The charity also has a trading subsidiary in the UK called The Climate Change Organisation

Services Ltd (registered on 1 May 2007). These entities operate in close conjunction with the UK charity with a

relationship maintained via places on the boards for members of the charity’s management team. All of these entities

have a year-end date of 30 June except for the Chinese entity which has a 31 December year end due to local

regulations.

United States – The Climate Group Inc

2012 2011

Net assets as at 1 July 2011 £290,681 £342,023

Income for the year to 30 June 2012 £531,708 £1,728,021

Net (deficit)/surplus for the year to 30 June 2012 £(343,733) £(51,342)

Net assets as at 30 June 2012 £(53,082) £290,681

NOTES TO THE ACCOUNTS (CONTINUED)

For the year ended 30 June 2012

- Annual Report 2011/12 46

14 Subsidiaries (continued)

Australia – The Climate Group Limited

China – The Climate Group (China) Limited

Hong Kong – The Climate Group (Hong Kong) Limited

UK – The Climate Change Organisation Services Limited

India – The Climate Group (India) Limited

2012 2011

Net assets as at 1 July 2011 £276,815 £286,291

Income for the year to 30 June 2012 £115,422 £262,980

Net deficit for the year to 30 June 2012 £(112,280) £(9,476)

Net assets as at 30 June 2012 £164,535 £276,815

2012 2011

Net assets as at 1 July 2011 £126,837 £133,336

Income for the year to 30 June 2012 £1,014,541 £1,110,310

Net deficit for the year to 30 June 2012 £(32,874) £(6,499)

Net assets as at 30 June 2012 £93,963 £126,837

2012 2011

Net assets as at 1 July 2011 £69,683 £6,857

Income for the year to 30 June 2012 £194,636 £476,519

Net (deficit)/surplus for the year to 30 June 2012 £(157,867) £62,825

Net assets as at 30 June 2012 £(88,184) £69,683

2012 2011

Net assets as at 1 July 2011 £100 £100

Income for the year to 30 June 2012 £29,898 £98,184

Net surplus for the year to 30 June 2012 - -

Net assets as at 30 June 2012 £100 £100

2012 2011

Net assets as at 1 July 2011 £40,831 -

Income for the year to 30 June 2012 £6,916 £77,084

Net surplus for the year to 30 June 2011 £3,858 £40,831

Net assets as at 30 June 2011 £36,973 £40,831