Earthwatch Annual Report 2018

“earthwatch europe is now embarking on a new ﬁve-year strategy, with greater impact delivery at its heart.” lucian j. hudson, chair, earthwatch europe the next 50 years. we will be focussing on the key challenges where we can have most impact: reducing the pollution of our water bodies; enhancing the health of our coasts; promoting sustainable agriculture and creating thriving places to live and work. as we move into this exciting new era for earthwatch europe, our chief executive of the last three years, steve gray, will be handing the reins over to a new leader to propel the organisation towards future success. steve will be moving on to a new challenge as delivery director with the brecon beacons national park authority. the new chief executive will have a strong legacy to build on and no doubt will continue to evolve our approach, as we seek to maximise our impact on the environmental challenges we all face. lucian j. hudson chair, earthwatch europe earthwatch europe is the trading name of conservation education and research trust welcome 2018 was a successful and busy year for earthwatch europe. working in partnership with many different stakeholders, we have achieved much in the last 12 months as we seek to tackle complex environmental issues. this year we have empowered many more people to protect the natural world. during 2018 over 4,600 earthwatchers were engaged in our projects from measuring the health of our rivers and coastlines, to taking part in film and photography competitions. our work on inspiring the next generation also reached new heights, with hundreds of teachers and students participating in our education programmes. we have also continued to support training opportunities for early career scientists and were delighted to receive a grant from neville shulman cbe to maintain this work for a further 10 years. finally, we have sustained our long-term relationships with our corporate partners hsbc, shell and mitsubishi corporation - engaging with them to further embed sustainability within their organisations. earthwatch europe is now embarking on a new five-year strategy, which will have the delivery of greater impact at its heart. whilst we have a proud history of creating knowledge around environmental issues, the ongoing impacts of climate change, wildlife loss and degradation of our habitats, requires us to have a greater emphasis on inspiring the action necessary to tackle these complex challenges. during this new strategy, earthwatch will celebrate its 50th year of bringing people, science and nature together, and the strategy will ensure that we continue and evolve this unique approach for 3 conservation education & research trust report and financial statements for the year ended 30 september 2018

oceans & coasts fresh water how we benefit the public we create knowledge and inspire action through hands-on science and environmental engagement. we address big challenges – such as climate change, loss of wildlife and habitats, provision of fresh water and ocean health – by working together with individuals, communities and organisations. climate change wildlife & habitats mission and vision our purpose we empower people to save our natural world through rigorous and relevant science that addresses key environmental issues, and through engaging experiences that inform, connect and inspire. this enables us to deliver solutions by influencing policy and providing hands-on action. our mission our mission is to engage people worldwide in scientific field research and education, to promote the understanding and action necessary for a sustainable environment. our vision we envision a world in which we live within our means and in balance with nature. we believe that future decisions regarding the environment must be based on objective science and must engage and empower people and organisations to act responsibly if they are to be sustainable. our values inclusive we believe it is essential that people participate in solving the environmental challenges we face. objective independent research is at the core of our work, and its outcomes determine our goals and priorities. passionate we are passionate about the opportunity we have to make a meaningful impact on people and the natural world. empowering we seek to inspire people, organisations and communities with experiences, knowledge and tools that enable them to take action. responsible we act in a manner that respects and protects the well-being of people and the environment, including our staff, researchers, volunteers and the places we work. 4 conservation education & research trust report and financial statements for the year ended 30 september 2018

fundraisers raised more than £10,500 this year we achieved signiﬁcant success in trust fundraising during 2017-18. this included a national lottery heritage fund grant for our naturehood project fundraising earthwatch is a member of the fundraising regulator. our income is generated predominantly thanks to the support of corporate partners funding education and engagement programmes designed to embed sustainability in their businesses. where we partner with corporates, we conduct due diligence on the organisations and set clear parameters, before agreeing responsibilities between partners. we achieved significant success in trust fundraising during 2017-18. this included a national lottery heritage fund grant for our naturehood project, in partnership with colleagues from the wiltshire wildlife trust. we have also maintained a steady income from individuals. our fundraising policy clearly states all the steps that should be followed in order to protect vulnerable people when offering support to the charity, ensuring that they have the relevant capacity to enable them to make the decision to donate. our fundraising and partnership teams are internal, and the organisation does not use external professional fundraisers. we do not employ the services of any fundraising agencies or third parties, nor have we run a telephone or door-to-door fundraising campaign. we have ensured we are in line with the gdpr data protection regulations. we received no complaints about our fundraising practices in 2018. 5 conservation education & research trust report and financial statements for the year ended 30 september 2018

objectives and achievements this was the final year of our three-year strategy which began in 2016. the aim of which was to broaden our beneficiaries, whilst focusing on increasing our impact on those beneficiaries and, by extension, on the environment. our strategic priorities to deliver on this aim were: • • • • create hands-on activities for individuals to take local actions that have a global impact and deliver science that matters. work in partnership with global companies to help transform how they think and do business, enabling them to integrate sustainability into their organisations. develop skills in young people through a range of immersive education programmes for teachers and students. help scientists develop their careers and close the gap between scientific discovery and action, and enable them to actively engage with people, communities and business. strategic priorities 2018 objective 2018 key stats empower people launch the urban wildlife project in at least two counties over 4,600 earthwatchers engaged in our projects engage businesses reﬁne our approach to partnership development 782 corporate employees participated in our programmes inspire the next generation expand discover & teach earth and develop our secondary school approach over 1,300 participants took part in discover earth and teach earth enable scientists develop a new programme for young scientists 10 researchers were supported with grants 6 conservation education & research trust report and financial statements for the year ended 30 september 2018

engaged people in citizen science thorough capturing our coast and freshwater watch empowering people spend: £907k (2017: £802k) how did we empower people? our work to empower people has continued apace in 2018. our objective to launch the urban wildlife project naturehood in two counties will be fulfilled shortly when the public phase of naturehood gets underway in swindon and oxford in the spring. we have also: • raised awareness of critical environmental issues through social media, e-campaigns and events; • redeveloped the earthwatch europe website to improve information for our different audiences about our programmes and activities, making it easier to get involved; • run interactive events including a young earthwatcher film competition and held speaking engagements across the uk, with a specific focus on inspiring younger audiences to influence the behaviour of peers and other people; • engaged people in citizen science thorough capturing our coast and freshwater watch. 7 conservation education & research trust report and financial statements for the year ended 30 september 2018

worked with hsbc to establish its new sustainability training programme for employees engage businesses spend: £3,722k (2017:£2,206k) how did we engage businesses in sustainability? our objective to refine our approach to partnership development was met through successful delivery in key programmes, establishing new ones, and through determining the areas where we believe we can have greater impact on business as part of the 2019-2023 strategy. specifically, we have: • engaged employees in a range of environmental projects, contributing to scientific research and developing leadership skills; • worked with hsbc to establish its new sustainability training programme for employees; • marked 20 years of partnership with shell, during which time we have built an integrated model of employee engagement, environmental science and community-based conservation initiatives; • begun new research with tate & lyle on the supply chain sustainability of stevia, a natural sweetener; • broadened the scope of our work on coral reefs with mitsubishi corporation to include innovative conservation interventions. 8 conservation education & research trust report and financial statements for the year ended 30 september 2018

added a new teach earth location in scotland with programmes starting in 2019 inspire the next generation spend: £193k (2017: £445k) how did we inspire the next generation? our objective to expand teach earth and discover earth was fuelled by an internal funding injection to boost the power and reach of these education programmes. this has helped mitigate an overall reduction in external funds available under this area. in 2018, we have: • taken 2,801 students, 133 teachers and 81 trainee teachers and informal educators, through discover earth and teach earth experiences; • added a new teach earth location in scotland, with programmes starting in 2019; • established a relationship with london east teacher training alliance (letta), and ran education events in the east london area. 9 conservation education & research trust report and financial statements for the year ended 30 september 2018

collaborated with partners to open up opportunities for people without scientiﬁc backgrounds to participate in research and be trained as citizen scientists enable scientists spend: £506k (2017: £281k) our objective to develop a new programme for young scientists includes work into an enhanced grants programme for emerging scientists. we have continued to provide vital funding for this valuable work- made possible by our generous donors. we have: • supported early career researchers in poorer countries with grants and opportunities to gain the skills and expertise required to set them off on an independent conservation research career; • used online technology to provide decision makers at a river catchment level with access to cutting-edge information to help address urgent water resources challenges through the catch x project; • collaborated with partners to open up opportunities for people without scientific backgrounds to participate in research and be trained as citizen scientists. 10 conservation education & research trust report and financial statements for the year ended 30 september 2018

our new strategy enhancing the health of our coasts we partner with communities, academics, ngos, business and governments to map and understand how coastal biodiversity is changing, especially in response to climate change. creating thriving places to live and work we engage with global businesses and local communities to understand how urban green spaces, including gardens and parks, can best be managed to increase climate resilience and biodiversity. reducing pollution in our water bodies we enable communities, business and water managers across europe and africa to monitor and address nutrient pollution. enabling sustainable agricultural land management we work with businesses, farmers, academics and policymakers to understand the impact of agricultural production and to improve nature-based practices. educate we educate teachers and students to use the earth as their classroom empower we empower the public to change their behaviour research upskill engage enable we research environmental challenges to ﬁnd solutions facilitate we facilitate environmental data sharing to support decision-making we upskill environmental resource managers to increase the positive impact of their work convene we convene the diverse groups needed to solve key environmental issues pioneer we pioneer ‘citizen science‘, improving its reach and impact we engage leaders and motivate employees to embed sustainability in businesses we enable scientists to connect with communities our new strategy puts environmental impact at the heart of what we do, building on half a century of bringing people, science and nature together to create environmental knowledge. we are focusing on key challenges where we can make the most difference: reducing the pollution of our water bodies; enhancing the health of our coasts; increasing the sustainability of agricultural land management and creating thriving places to live and work. to achieve this impact we will use a variety of approaches: • our solutions-focused science will help decision-makers find practical solutions to environmental issues; • our specialist engagement and learning will connect a diverse range of people with the environment, educating and energising them to achieve change; • we will continue pioneering citizen science as a tool for scientific research and broadening public understanding of the environment; • we will strive to improve access to sources of environmental data for all. working together, we can create the knowledge and inspire the action needed to ensure we live within our means and in balance with nature. never has this task been so important. 11 conservation education & research trust report and financial statements for the year ended 30 september 2018

financial review summary income source of income 2018 (£‘000) 2017 (£‘000) % change corporate partnerships trusts, foundations and eu individuals investment income other income 4,088 4,991 -18 344 89 +287 66 49 19 68 42 32 -3 +17 -41 -13 total 4,566 5,222 income from corporate partnerships was slightly down from £4,991k to £4,088k, a decrease of 18%. overall, income was limited to a 13% decrease as a result of a considerable increase (287%) in income from trusts, foundations and particularly the eu (horizon 2020). individual and investment income remained broadly level. these results reflect the strategy of broadening our range of funding sources. the financial results relate to the operations of earthwatch europe (conservation education & research trust); please see below for the range of connected international charities within the earthwatch family. whilst our focus is on the uk, europe, africa, the middle east and india, we have many programmes that take us further afield and a number of international programmes where we collaborate with other earthwatch charities. 2018 was the final year of our three-year strategic plan. the key pillars of that plan were to: • increase our impact and monitor our progress; • expand the range of free-to-access projects to enable more people to be involved with our work and learn and contribute to exceptional science; and, • broaden our range of funding sources. our corporate partnerships remain the driver of our income, with established and successful work in partnership with hsbc, mitsubishi corporation and shell continuing. these partnerships have had impacts on the organisations involved, and through their employees have contributed hugely to earthwatch projects over many years. during 2018 we were also successful in securing funds from trusts, foundations and the eu, from both existing and new sources. significant groundwork has also been undertaken to increase our chances of future success, with some new streams already being secured. our new strategy, as contained in the objectives and achievements section outlines our plans to grow the impact of earthwatch and will also result in a steady investment of our excess reserves over the five-year period. 12 conservation education & research trust report and financial statements for the year ended 30 september 2018

expenditure source of expenditure 2018 (£‘000) 2017 (£‘000) % change cost of raising funds engaging businesses empowering people enabling scientists 437 375 +17 3,722 2,206 +69 907 802 +13 506 281 +80 inspiring the next generation 193 445 -57 total 5,766 4,108 +40 total expenditure increased from £4,108k in 2017 to £5,766k in 2018, an increase of 40%, mainly driven by our work with engaging businesses and the start of the stp programme. expenditure has been classified into our four key strategic focus areas, along with fundraising on the statement of financial activities (sofa). objectives and achievements in each area are laid out above in the trustees’ report and a detailed analysis of expenditure is shown in note 6 of the financial statements below. in summary, this is how we spent our funds: engaging businesses - £3,722k (2017: £2,206k) • managing corporate partnerships such as hsbc, shell, mitsubishi corporation, tate & lyle and pwc to engage employees in our research projects and develop sustainability leaders within organisations. empowering people - £907k (2017: £802k) • working with a variety of organisations across europe on freshwater watch; developing the concept for our urban wildlife project (naturehood) which will be our flagship public engagement project; continuing our work on capturing our coast; and running a set of engaging events in the uk and europe. enabling scientists - £506k (2017: £281k) • funding and supporting crucial research on: coral reefs in the seychelles; carbon capture in uk woodlands; climate change; tracking water quality in the thames basin, and partnering on ground truth 2.0 working on pilot freshwater projects in sweden amongst a range of other initiatives. inspiring the next generation - £193k (2017: £445k) • engaging children and teachers in schools with environmental science and nature through discover earth, whilst helping teachers to establish environmental learning in the curriculum through teach earth. earthwatch ltd (registered in hong kong) is consolidated into the sofa and in the group figures on the balance sheet. the impact of this consolidation is minimal, as all the income for earthwatch ltd is received from conservation education & research trust for the implementation of activities under the hsbc’s water programme partnership. reserves general reserves the trustees continue to have a policy of maintaining six months cover for operating costs (target: £1.5m) in order to provide for the charity to meet its financial obligations arising from unforeseen events in the future and to continue operations during such a period. as at 30 september 2018, general funds for the company stood at £4.4m (2017: £4.9m) which equates to approximately 18 months’ operating costs. the trustees and the executive agreed a spending plan in 2017, covering the six years to 2023, to bring the level of reserves down to the level stated in the policy above (£1.5m). funds have not only been allocated to support the development and launch of major new projects, including naturehood, teach earth and discover earth, but also to a new website and customer relationship management system. in addition, in october 2018 trustees approved additional expenditure on key new roles identified as critical to the delivery of our new five-year strategy. 13 conservation education & research trust report and financial statements for the year ended 30 september 2018

investment strategy until 2017, the mix of general, designated, restricted and endowment funds were held across a wide range of banking institutions. this was to reduce risk on any one investment and to take advantage of a range of competitive rates for different types of account. following continuing cycles of low interest rates and falling returns on fixed term deposit accounts, the trustees approved a plan to invest cash reserves in a managed portfolio. the objective for the new portfolio assets was to generate a return at least in line with inflation (rpi), with shorter-term funds preserving their capital value with a minimum level of risk. this will ensure that the value of reserves is maintained and therefore future impact can be maximised. in august 2018 earthwatch deposited a sum of £5.25m with sarasin & partners. this was divided into three portfolios: • short term (0 – 18 month) designed to improve the returns from cash deposits and to be invested in cash, certificates of deposit and short dated government bonds. • medium term (18 months to five-year) designed to provide a return that at least matches inflation and would be predominately invested in bonds with some risk / equity assets. • long term (over five years) designed to provide an above inflation return and predominately invested in equities. the funds are subject to positive screening to ensure that our investments match our charitable objectives. both the finance committee and the board review the performance of the funds on a quarterly basis and meet regularly with sarasin & partners to discuss performance and investment. earthwatch still holds a significant proportion of its funds in interest bearing deposit accounts with various banking institutions. designated funds the designated fund balance for the charity is a combination of two elements: firstly, the capital fund which comprises unrestricted funds held as fixed assets, e.g. equipment (£85k); and secondly a set of funds that are committed to delivering existing programmes across our priority audiences from a variety of funders. these funds (£1.6m, 2017: £1.4m) are already allocated to be spent in future years. in the group accounts, there is a further fund which represents the net current assets held in hong kong. they have been set aside as they must be used for expenditure within hong kong. restricted funds the restricted fund balance is made up of funds that have been received in advance, but that are committed to specific programmes for specific donors who have requested restriction. at 30 september 2018, they stand at £3.9m (2017: £4.4m). these funds, predominantly received through our partnerships with hsbc, will support a range of projects including freshwater watch and the sustainability leadership programme (slp). funds are also held for a long-term programme funded by neville shulman, supporting training grants for scientists from less developed countries. this further includes our newly awarded eu grant for monocle. the decrease in funds is mainly due to the commencement of the hsbc sustainability training programme which was pre-funded by an advance payment from hsbc in late 2017. endowment funds earthwatch europe holds a balance of £1.1m (2017: £1.1m) in endowment funds; £1m of the total was provided by the sultanate of oman and the interest that we earn on this was intended to enable us to field omanis on our projects. the remainder was provided by the states of jersey. with low interest rates, we entered into discussions with both funders as to the best way to utilise these funds for impact. in particular, we are working with the sultanate to secure the release of the endowment to expendable project funds. since the year-end, an agreement has been reached with the states of jersey to spend the remainder of the fund over the next five years, with a particular focus on supporting education, teachers and emerging scientists. the first training using this fund will take place in february. 14 conservation education & research trust report and financial statements for the year ended 30 september 2018

remuneration policy statement of going concern the trustees are satisfied that the charity is a going concern and has the resources to deliver its strategic plan and operate indefinitely. earthwatch has a strong base of confirmed funding sources for 2019 and beyond, with a strong strategic plan in place to both increase the volume of the sources and the amount received from them. in addition, earthwatch holds a minimum level of six months’ operating costs in reserves to ensure that the charity can continue to exist and have impact even if some income sources cease. there are no post-balance sheet events which will require adjustments to the accounts. our approach to remuneration is designed to ensure we can attract and retain the talented and motivated people we need to achieve our mission and deliver our strategic goals. it is applied consistently across the organisation, both in terms of how we set salaries and the benefits we offer our employees. pay is reviewed annually, and an increase amount (rather than a percentage increase) is agreed for all employees with over six months’ service, which is set by taking account of the market, cost of living increases and the organisation’s ability to pay. we offer paid internships and review and maintain internal pay relativities; pay progression is linked to development in the role and growth of the role. our salaries and benefits are compared to other similar not-for-profit organisations. gender pay gap at the end of our financial year, the average hourly salary for women in the organisation was 14% below the average hourly salary for men (2017: 14% below). in median pay the hourly figure for women was 16% below the median hourly pay for men (2017: 5% below). during 2018, we had the following split of men and women in each pay quartile: lowest quartile: men – 19% women – 81% (2017: men – 14% women – 86%) 2nd quartile: men – 37.5% women – 62.5% (2017: men – 36% women – 64%) 3rd quartile: men – 25% women – 75% (2017: men – 29% women – 71%) top quartile: men – 37.5% women – 62.5% (2017: men – 50% women – 50%) females make up 70% of the workforce in 2018 with a higher proportion of females to males in all quartiles, particularly in the lowest quartile. we have a strong foundation of ensuring equivalent pay for equivalent roles and this will be built upon as we conduct more detailed analysis and embark on the new strategy period. 15 conservation education & research trust report and financial statements for the year ended 30 september 2018

administration and governance other working names: earthwatch institute (europe), earthwatch (europe), earthwatch institute company number: 4373313 charity number: 1094467 registered ofﬁce and operational address: mayfield house, 256 banbury road, oxford, ox2 7de country of registration: england & wales country of incorporation: united kingdom trustees the trustees who were in office throughout the year, unless otherwise stated, were as follows: chair vice-chair treasurer (resigned november 2018) (resigned july 2018) lucian j. hudson geoff lane superna khosla judith mosely dr mark collins iain coucher dorothee d’herde nick dobson lisa king dax lovegrove ed green adam powell jack matthews the average age of our trustees at 30 september 2018 was 51 (2017: 49.8); this is significantly lower than the average age of a trustee across the voluntary sector of 62 (2017: 57). trustees are selected in a manner consistent with the organisation’s recruitment and diversity and equality policies, ensuring that the selection process is time and cost effective. the trustee recruitment and selection process is managed by the nominations committee. in addition to making direct approaches to suitable candidates, earthwatch europe may advertise for trustees through networks or in the media and, where appropriate, an external agency may be used to facilitate trustee recruitment. the position of chair of the board will normally be advertised publicly. earthwatch provides trustees with governance training when they join the organisation. as part of their induction, trustees will also spend time with the chief executive and relevant members of the executive management team who will provide them with an overview of earthwatch europe and its current priorities and challenges. a trustee handbook, which contains all relevant background information and links to key documents, is also provided. 16 conservation education & research trust report and financial statements for the year ended 30 september 2018

key management personnel at end sept 2018 steve gray chief executive neil bailey phil clarke toos van nordwijk bella murfin & naomi matthiessen anna shannon peter stimpson head of fundraising and communications interim director of corporate partnerships director of engagement and science director of strategic planning (job-share) head of hr head of finance and operations governance structure the total aggregated salary cost of management personnel in 2018 was £358k (2017: £356k). there have been three additions to the team in the 2018 financial year: phil clarke, as interim director of corporate partnerships providing maternity cover for victoria mcmillan; naomi matthiessen and isabella murfin as director of strategy planning (in a job-share). steve gray left the organisation on 14 february 2019 and the search for his replacement is fully underway. the trustees have agreed that the executive team will collectively oversee the running of the charity until the new ceo is in post. the board governance, direction and fiscal responsibility the executive strategy development and day-to-day management finance committee recommend decisions on financial risk and audit matters nominations committee recommend recruitment of new trustees ad-hoc working groups examples include investment committee and corporate partnership development group auditors, bankers, and solicitors auditor: sayer vincent llp bankers: barclays bank plc, oxford; hsbc plc, oxford; caf bank limited; scottish widows bank limited; nationwide plc; nationwide international plc; santander uk plc; lloyds bank plc. solicitors: blake morgan llp, oxford; stone king llp, london 17 conservation education & research trust report and financial statements for the year ended 30 september 2018

risk management the executive team reviews risks regularly and produces a working document for discussion at least once a year at board level. in addition, a summary of movements in impact or likelihood of risk is submitted to the board for review each quarter. a key risk mitigation summary is included along with any details of further work to mitigate key risks. key risk explanation mitigation brexit limits opportunities and ewe workforce unsuccessful strategy implementation failure to secure new revenue and meet financial targets reputational risk arising from affiliate activity the uncertainty over brexit outcomes could result in difficulty accessing eu grants, employing eu nationals and retaining staff already working in the uk from other eu countries. internal and / or external factors result in ewe failing to deliver the intended outcomes and impact of our new 2019-2023 strategy. one of our major corporate partnerships is up for renewal in 2019 and we have set challenging targets for the development of new partnerships in the coming years. as part of a family of earthwatch charities without a binding governance framework, our reputation can be affected by the actions of other parts of the family. we are closely monitoring developments and providing support and guidance to ewe staff. we are using established partner networks to seek intelligence relating to post- brexit eu funding restrictions and opportunities. effective ways of working and prioritisation processes are in place and a board strategy working group has been established to support and guide strategy delivery. we are actively pursuing new opportunities with our major partner, engaging senior decision-makers at a high level and investing in significant additional capacity to support business development activities. discussion on future international working and governance arrangements continue between the chairs of ewe and ewus. we have good working relationships at executive level on projects and regular board level engagement. 18 conservation education & research trust report and financial statements for the year ended 30 september 2018

connected charities the charity works in association with the following affiliated licensed charities who all have similar missions, and contribute to and participate in the same international programme of science and engagement activities. earthwatch europe harnesses this network of connected charities to ensure global capability to deliver large-scale programmes and partnerships. the coverage across the americas, asia and australia means that we can deliver globally whilst retaining a local focus. earthwatch australia instituto earthwatch do brasil earthwatch expeditions inc. 126 bank street south melbourne victoria 3205 australia tel: +61 3 9682 6828 rua comendador araujo 499 10 andar centro curitiba-pr – cep 80.240-000 brasil tel: + 55 413077 0380 114 western avenue boston ma 02134-1037 usa tel: +1 800 776-0188 earthwatch ltd, hong kong earthwatch institute, india earthwatch institute, japan room 1402 breakthrough centre 191 woosung street jordan hong kong tel: +852 28381114 459 augusta point level 4 sector 53 golf course road gurgaon 122002 india tel: +91 124 4354160 food science building 4f university of tokyo 1-1-1 yayoi bunkyo-ku tokyo 113-8657 japan tel: + 81-3-6686-0300 * note: instituto earthwatch do brasil was closed in november 2018. 19 conservation education & research trust report and financial statements for the year ended 30 september 2018

statement of trustees’ responsibilities the trustees (who are also directors of conservation education & research trust for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and united kingdom accounting standards (united kingdom generally accepted accounting practice). company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and group. these statements cover the incoming resources and application of resources, including the income and expenditure of the group for that period. in preparing these financial statements, the trustees are required to: in so far as the trustees are aware: • there is no relevant audit information of which the charitable company’s auditor is unaware; • the trustees have taken all steps required to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. the trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. legislation in the united kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. • select suitable accounting policies and then apply them consistently; this report was approved by the trustees on 10 june 2019 and signed on their behalf by: lucian j. hudson chair • observe the methods and principles in the charities sorp; • make judgements and estimates that are reasonable and prudent; • state whether applicable uk accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. the trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the companies act 2006. they are also responsible for safeguarding the assets of the charitable company and group and hence for the taking of reasonable steps for the prevention and detection of fraud and other irregularities. 20 conservation education & research trust report and financial statements for the year ended 30 september 2018

independent auditor’s report to the members of conservation education & research trust opinion we have audited the financial statements of conservation education & research trust (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year-ended september 2018 which comprise of the consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. the financial reporting framework that has been applied in their preparation is applicable law and united kingdom accounting standards, including financial reporting standard 102 ‘the financial reporting standard applicable in the uk and republic of ireland’ (united kingdom generally accepted accounting practice). in our opinion, the ﬁnancial statements: • give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 30 september 2018 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. • have been prepared in accordance with the requirements of the companies act 2006 and the charities act 2011. basis for opinion we conducted our audit in accordance with international standards on auditing (uk) (isas (uk)) and applicable law. our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the group financial statements section of our report. we are independent of the group and parent charitable company, in accordance with the ethical requirements that are relevant to our audit of the financial statements in the uk, including the frc’s ethical standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. conclusions relating to going concern we have nothing to report in respect of the following matters in relation to which the isas (uk) require us to report to you where: • the trustees’ use of the going concern basis of accounting in the preparation of the group financial statements is not appropriate; or • the trustees have not disclosed in the group financial statements any identified material uncertainties that may cast significant doubt about the group’s or the parent charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. other information the trustees are responsible for the other information. the other information comprises the information included in the trustees’ annual report, other than the group financial statements and our auditor’s report thereon. our opinion on the group financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. in connection with our audit of the group financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the group financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. if we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the group financial statements, or a material misstatement of the other information. if, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. we have nothing to report in this regard. 21 conservation education & research trust report and financial statements for the year ended 30 september 2018

opinions on other matters prescribed by the companies act 2006. responsibilities of trustees in our opinion, based on the work undertaken in the course of the audit: • 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 • the trustees’ annual report has been prepared in accordance with applicable legal requirements matters on which we are required to report by exception in the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. we have nothing to report in respect of the following matters in relation to which the companies act 2006 and charities act 2011 requires us to report to you if, in our opinion: • adequate accounting records have not been kept by the parent charitable company, 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; or • the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ annual report and from the requirement to prepare a strategic report. as explained more fully in the statement of trustees’ responsibilities, set out in the trustees’ annual report, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. in preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charitable company’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting, unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so. auditor’s responsibilities for the audit of the financial statements we have been appointed auditor under the companies act 2006 and section 151 of the charites act 2011 and report in accordance with those acts. our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with isas (uk) will always detect a material misstatement when it exists. misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 22 conservation education & research trust report and financial statements for the year ended 30 september 2018

as part of an audit in accordance with isas (uk), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. the risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group’s or the parent charitable company’s internal control. • evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. • conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group’s or the parent charitable company’s ability to continue as a going concern. if we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. however, future events or conditions may cause the group or the parent charitable company to cease to continue as a going concern. • obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. we are responsible for the direction, supervision and performance of the group audit. we remain solely responsible for our audit opinion. we communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. use of our report this report is made solely to the charitable company’s members as a body, in accordance with chapter 3 of part 16 of the companies act 2006. our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. to the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed. jonathan orchard (senior statutory auditor) 10 june 2019 for and on behalf of sayer vincent llp, statutory auditor invicta house, 108-114 golden lane, london, ec1y 0tl sayer vincent llp is eligible to act as auditor in terms of section 1212 of the companies act 2006 • evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 23 conservation education & research trust report and financial statements for the year ended 30 september 2018

consolidated statement of financial activities for the year ended 30 september 2018 unrestricted £ endowment £ note restricted £ 2018 total £ 2017 total £ 3 4 5 66,292 1,647,429 18,500 32,718 - - - 4,538 - 2,784,640 - 11,430 66,292 4,432,069 18,500 48,686 68,169 5,078,944 32,088 42,311 1,764,939 4,538 2,796,070 4,565,547 5,221,512 437,416 645,051 906,779 399,126 193,359 - - - - - - - 437,416 375,286 3,077,229 - 106,679 - 3,722,280 906,779 505,805 193,359 2,205,707 802,102 280,556 444,555 3,183,908 5,765,639 4,108,206 income from: donations and legacies charitable activities other trading activities investments total income expenditure on: raising funds charitable activities engaging businesses empowering people enabling scientists inspiring the next generation total expenditure 6a 2,581,731 net income before net losses on investments (816,792) 4,538 (387,838) (1,200,092) 1,113,306 net (losses)/gains on investments 13 (7,159) (316) - (7,475) 4,442 net income for the year 7 (823,951) 4,222 (387,838) (1,207,567) 1,117,748 transfers between funds 145,535 - (145,535) - - net income / (expenditure) before other recognised gains and losses (678,416) 4,222 (533,373) (1,207,567) 1,117,748 gains on forward contracts gains / (losses) on foreign exchange 23 41,829 226,109 - - - (18,293) 41,829 207,816 - 95,010 net movement in funds (410,478) 4,222 (551,666) (957,922) 1,212,758 reconciliation of funds: total funds brought forward 20b 6,613,558 1,112,864 4,434,269 12,160,691 10,947,933 total funds carried forward 6,203,080 1,117,086 3,882,603 11,202,769 12,160,691 all of the above results are derived from continuing activities. there were no other recognised gains or losses other than those stated above. movements in funds are disclosed in note 22 to the financial statements. 24 conservation education & research trust report and financial statements for the year ended 30 september 2018

balance sheets as at 30 september 2018 company number: 4373313 fixed assets: tangible assets investments current assets: debtors cash at bank and in hand note 12 13 16 the group 2018 £ 2017 £ the charity 2018 £ 139,484 5,318,146 85,014 72,912 110,498 5,318,146 2017 £ 85,014 72,912 5,457,630 157,926 5,428,644 157,926 440,067 6,047,178 1,150,908 11,628,073 387,651 5,977,223 1,090,496 11,396,084 6,487,245 12,778,981 6,364,874 12,486,580 liabilities: creditors: amounts falling due within one year 17 (742,106) (776,216) (831,622) (771,130) net current assets total net assets 5,745,139 12,002,765 5,533,252 11,715,450 19a 11,202,769 12,160,691 10,961,896 11,873,376 funds: endowment funds restricted income funds unrestricted income funds: designated funds general funds non-charitable trading funds total unrestricted funds total funds 20b 1,117,086 3,882,603 1,112,864 4,434,269 1,117,086 3,882,603 1,112,864 4,434,269 1,552,907 4,409,300 240,873 1,408,558 4,917,685 287,315 1,552,907 4,409,300 - 1,408,558 4,917,685 - 6,203,080 - 6,613,558 - 5,962,207 6,326,243 11,202,769 12,160,691 10,961,896 11,873,376 approved by the trustees on 10 june 2019 and signed on their behalf by lucian j. hudson chair 25 conservation education & research trust report and financial statements for the year ended 30 september 2018

consolidated statement of cash flows for the year ended 30 september 2018 net cash used by operating activities 21 (283,273) 1,267,260 cash flows from investing activities: dividends, interest and rents from investments proceeds from the sale of fixed and intangible assets purchase of fixed assets purchase of investments 48,686 3,569 (97,169) (5,252,709) 42,311 - (12,196) - net cash used in investing activities change in cash and cash equivalents in the year (5,297,622) (5,580,896) 30,115 1,297,374 cash and cash equivalents at the beginning of the year 11,628,073 10,330,699 cash and cash equivalents at the end of the year 6,047,178 11,628,073 26 conservation education & research trust report and financial statements for the year ended 30 september 2018

notes to the financial statements as at 30 september 2018 1 accounting policies a) b) c) d) statutory information conservation education & research trust is a charitable company limited by guarantee and is incorporated in the united kingdom. the registered office address is mayfield house, 256 banbury road, oxford, ox2 7de. basis of preparation the financial statements have been prepared in accordance with accounting and reporting by charities: statement of recommended practice applicable to charities preparing their accounts in accordance with the financial reporting standard applicable in the uk and republic of ireland (frs 102) (effective 1 january 2015) - (charities sorp frs 102), the financial reporting standard applicable in the uk and republic of ireland (frs 102) (september 2015) and the companies act 2006. assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note. these financial statements consolidate the results of the charitable company and its wholly-owned subsidiary earthwatch limited on a line by line basis. transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements. balances between the two companies are disclosed in the notes of the charitable company's balance sheet. a separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the companies act 2006. public benefit entity the charitable company meets the definition of a public benefit entity under frs 102. going concern the trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern. the trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. e) income income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably. income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met. f) donations of gifts, services and facilities donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. in accordance with the charities sorp (frs 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution. on receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. 27 conservation education & research trust report and financial statements for the year ended 30 september 2018

1 accounting policies (continued) g) interest receivable interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. h) fund accounting endowment funds represent donations which are treated as capital. 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. unrestricted funds are donations and other incoming resources received or generated for the charitable purposes. designated funds are unrestricted funds allocated by the trustees for particular purposes. i) expenditure and irrecoverable vat expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. expenditure is classified under the following activity headings:  costs of raising funds relate to the costs incurred by the charitable company in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose   expenditure on charitable activities includes the costs of delivering services and educational activities undertaken to further the purposes of the charity and their associated support costs other expenditure represents those items not falling into any other heading irrecoverable vat is charged as a cost against the activity for which the expenditure was incurred. j) grants payable grants payable are made to third parties in furtherance of the charity's objects. single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity. provisions for grants are made when the intention to make a grant has been communicated to the recipient, but there is uncertainty about either the timing of the grant or the amount of grant payable. k) allocation of support costs resources expended are allocated to the particular activity where the cost relates directly to that activity. however, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity. support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, based on staff time, of the amount attributable to each activity:     engaging businesses empowering people enabling scientists inspiring the next generation 70% 17% 9% 4% governance costs are the costs associated with the governance arrangements of the charity. these costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities. 32 28 conservation education & research trust report and financial statements for the year ended 30 september 2018

1 l) m) n) o) p) q) accounting policies (continued) operating leases rental charges are charged on a straight line basis over the term of the lease. tangible fixed assets items of equipment are capitalised where the purchase price exceeds £500. depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. the useful economic lives are as follows:     leasehold improvements furniture and equipment computer equipment motor vehicles life of the lease 5-7 years 3-5 years 3-5 years listed investments investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. any change in fair value will be recognised in the statement of financial activities and any excess of fair value over the historic cost of the investments will be shown as a fair value reserve in the balance sheet. investment gains and losses, whether realised or unrealised, are combined and shown in the heading “net gains/(losses) on investments” in the statement of financial activities. the charity does not acquire put options, derivatives or other complex financial instruments. debtors trade and other debtors are recognised at the settlement amount due after any trade discount offered. prepayments are valued at the amount prepaid net of any trade discounts due. cash at bank and in hand cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. creditors and provisions creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. r) financial instruments the charity has both basic and non-basic financial assets and financial liabilities. basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value, with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. non-basic financial instruments are measured at fair value with any gain or loss going to the statement of financial activities. the only non-basic financial instruments relate to forward contracts, the details of which are included in note 23. s) foreign currency transactions monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date transactions in foreign currencies are translated into sterling using the rate of exchange ruling at the date of the transaction. exchange differences are taken into account in arriving at the net incoming resources for the year. 33 29 conservation education & research trust report and financial statements for the year ended 30 september 2018

1 accounting policies (continued) t) pensions the charitable company operates a defined contribution pension scheme on behalf of its employees. the assets of this scheme is held separately from those of the charitable company in an independently administered fund. the pension cost charge represents contributions payable by the charitable company to the fund. the charitable company has no liability other than for the payment of those contributions. 2 detailed comparatives for the statement of financial activities income from: donations and legacies charitable activities other trading activities investments total income expenditure on: raising funds charitable activities total expenditure net income/(expenditure) before gains on investments net gains on investments net income transfers between funds unrestricted endowment £ £ restricted £ 2017 total £ 68,169 1,461,333 32,088 19,341 - - - 3,738 - 3,617,611 - 19,232 68,169 5,078,944 32,088 42,311 1,580,931 3,738 3,636,843 5,221,512 375,286 1,404,041 1,779,327 (198,396) - (198,396) 172,468 - - - - 2,328,879 375,286 3,732,920 2,328,879 4,108,206 3,738 4,442 1,307,964 - 1,113,306 4,442 8,180 - 1,307,964 (172,468) 1,117,748 - net income before other recognised gains and losses gains/(losses) on foreign exchange translation (25,928) 111,320 8,180 - 1,135,496 (16,310) 1,117,748 95,010 net movement in funds total funds brought forward 85,392 6,528,166 8,180 1,104,684 1,119,186 1,212,758 3,315,083 10,947,933 total funds carried forward 6,613,558 1,112,864 4,434,269 12,160,691 3 income from donations and legacies donations all income from donations and legacies is unrestricted. 2018 total £ 2017 total £ 66,292 68,169 66,292 68,169 34 30 conservation education & research trust report and financial statements for the year ended 30 september 2018

4 income from charitable activities unrestricted £ restricted £ 2018 total unrestricted £ £ restricted £ 2017 total £ corporate donations other grants and donations government grants 1,515,567 125,744 6,118 2,572,375 212,265 - 4,087,942 338,009 6,118 1,380,552 80,781 - 3,609,646 7,965 - 4,990,198 88,746 - total 1,647,429 2,784,640 4,432,069 1,461,333 3,617,611 5,078,944 5 income from other trading activities equipment income rental income all income from other trading activities is unrestricted. 2018 total £ 2017 total £ - 18,500 14,050 18,038 18,500 32,088 31 conservation education & research trust report and financial statements for the year ended 30 september 2018

6a analysis of expenditure (current year) charitable activities cost of raising funds £ engaging businesses £ empowering people £ enabling scientists £ inspiring the next generation £ governance costs £ staff costs research and field costs engagement costs research & engagement by affiliates development and fundraising audit trustee costs office costs it costs finance & hr costs other costs 279,626 - - - 157,790 - - - - - - 620,426 450,735 485,210 1,419,587 - - - - - - 102,853 512,642 115 61,321 - - - - - - - 175,946 131,656 194,287 88,602 - - - - - - - 3,822 115,430 - 14,156 - - - - - - - 30,347 47,597 - - - - 12,000 3,385 - - - - support costs 411,019 - - - - - - 217,448 14,353 138,795 76,491 2018 total £ 2017 total £ 2,118,396 645,137 649,289 1,419,587 157,790 12,000 3,385 217,448 14,353 138,795 389,459 1,708,081 574,549 560,496 651,364 109,443 13,000 2,300 230,240 21,489 89,520 147,724 437,416 3,078,811 750,024 418,367 159,933 62,982 858,106 5,765,639 4,108,206 599,471 146,036 81,459 31,140 - (858,106) 43,998 10,719 5,979 2,286 (62,982) - - - - 5,765,639 4,108,206 - - - support costs governance costs - - total expenditure 2018 437,416 3,722,280 906,779 505,805 193,359 total expenditure 2017 375,286 2,205,707 802,102 280,556 444,555 - - 32 conservation education & research trust report and financial statements for the year ended 30 september 2018

6b analysis of expenditure (prior year) staff costs research and field costs engagement costs research & engagement by affiliates development and fundraising audit trustee costs office costs it costs finance & hr costs other costs cost of raising funds £ engaging businesses £ empowering people £ enabling scientists £ inspiring the next generation £ governance costs £ charitable activities 265,843 - - - 109,443 - - 438,472 322,337 401,828 487,016 - - - 303,566 44,313 66,778 164,348 - - - 141,403 23,854 39,093 - - - - 97,250 184,045 52,797 - - - - 44,509 - - - - 13,000 2,300 - 69,665 38,545 11,654 8,178 6,195 support costs 417,038 230,240 21,489 89,520 13,487 2017 total £ 2016 total £ 1,708,081 574,549 560,496 651,364 109,443 13,000 2,300 230,240 21,489 89,520 147,724 1,458,948 860,307 526,302 1,034,851 71,418 13,755 4,020 228,531 18,930 65,042 67,513 375,286 1,719,318 617,550 216,004 342,270 66,004 771,774 4,108,206 4,349,617 448,069 170,012 59,466 94,227 - (771,774) 38,320 14,540 5,086 8,058 (66,004) - - - - 4,108,206 4,349,617 - - - support costs governance costs - - total expenditure 2017 375,286 2,205,707 802,102 280,556 444,555 total expenditure 2016 242,012 2,446,217 826,266 485,390 349,732 - - 33 conservation education & research trust report and financial statements for the year ended 30 september 2018

7 net income for the year this is stated after charging / (crediting): depreciation on tangible fixed assets loss/(profit) on disposal of fixed assets operating lease rentals: property auditor's remuneration (excluding vat): audit under/(over) accrual from prior year other services foreign exchange (gains) or losses 2018 £ 42,699 (3,569) 2017 £ 17,227 8,543 86,400 86,400 12,000 - 1,680 (249,645) 13,000 - 3,024 (95,010) 8 analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel staff costs were as follows: salaries and wages social security costs employer’s contribution to defined contribution pension schemes 2018 £ 2017 £ 1,865,023 166,078 87,294 1,492,852 150,462 64,767 2,118,396 1,708,081 the following number of employees received employee benefits in excess of £60,000 (excluding employer national insurance and employer pension costs) during the year between: £70,000 - £79,999 £80,000 - £89,999 2018 no. - 1 2017 no. 1 - the total employee benefits (including employer national insurance and employer pension contributions) of the key management personnel were £358,478 (2017: £356,514). the charity trustees were not paid or received any other benefits from employment with the charity in the year (2017: £nil). no charity trustee received payment for professional or other services supplied to the charity (2017: £nil). trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £3,385 (2017: £2,403) incurred by 10 (2017: 4) members relating to attendance at meetings of the trustees. 9 staff numbers the average number of employees (head count based on number of staff employed) during the year was as follows: 2018 no. 60.5 2017 no. 52.4 38 34 conservation education & research trust report and financial statements for the year ended 30 september 2018

10 11 related party transactions there are no related party transactions to disclose for 2018 (2017: none). taxation the charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. 12 tangible fixed assets the group cost at the start of the year additions in year disposals in year leasehold improvements £ furniture and equipment £ computer equipment £ 60,503 - - 77,387 42,747 - 299,630 54,422 - motor vehicles £ 21,809 - (21,809) total £ 459,329 97,169 (21,809) at the end of the year 60,503 120,134 354,052 - 534,689 depreciation at the start of the year charge for the year eliminated on disposal at the end of the year net book value at the end of the year 12,994 6,050 - 48,656 18,220 - 290,856 18,429 - 21,809 - (21,809) 19,044 66,876 309,285 41,459 53,258 44,767 at the start of the year 47,509 28,731 8,774 the charity cost at the start of the year additions in year disposals in year leasehold improvements £ furniture and equipment £ computer equipment £ 60,503 - - 77,384 5,709 - 299,630 54,422 - motor vehicles £ 21,809 - (21,809) - - - - - - 374,315 42,699 (21,809) 395,205 139,484 85,014 total £ 459,326 60,131 (21,809) 374,312 34,647 (21,809) 387,150 110,498 85,014 39 at the end of the year 60,503 83,093 354,052 - 497,648 depreciation at the start of the year charge for the year eliminated on disposal at the end of the year net book value at the end of the year 12,994 6,050 - 48,653 10,168 - 290,856 18,429 - 21,809 - (21,809) 19,044 58,821 309,285 41,459 24,272 44,767 at the start of the year 47,509 28,731 8,774 all of the above assets are used for charitable purposes. 35 conservation education & research trust report and financial statements for the year ended 30 september 2018

13 investments the group and charity fair value at the start of the year additions at cost net (loss)/gain on change in fair value 2018 £ 72,912 5,252,709 (7,475) 2017 £ 68,470 - 4,442 fair value at the end of the year 5,318,146 72,912 investments comprise: uk common investment funds £ £ 5,318,146 72,912 5,318,146 72,912 during the year ended 30 september, 2018 £5,250,000 was invested in funds managed by sarasin & partners to meet short term, medium term and long term investment objectives. in the year ended 30 september 2000 an earlier donation of £50,000 from the states of jersey was invested in two common investment funds, each of which are registered charities, constituted under schemes made by the charity commission, and are invested in fixed interest securities and shares. 14 subsidiary undertaking the charity controls the subsidiary, earthwatch limited, a company limited by guarantee incorporated in hong kong, by virtue of having an employee who is a trustee of the subsidiary. control was deemed to have passed to the charity as of 1 october 2013. the subsidiary is engaged in the same charitable activities as the charity. all activities have been consolidated on a line by line basis in the statement of financial activities, based on the audited financial statements as at 30 september which are prepared in hong kong dollars (hk$). the results have been converted at the year-end exchange rate of 10.20 hk$ per £ (2017: 10.17hk$ per £). steve gray, chief executive, peter stimpson, head of finance and operations and scott kania, ceo of earthwatch expeditions, our us affiliate are also directors of the subsidiary. income and expenditure incoming resources outgoing charitable resources (loss) for the year reserves brought forward reserves carried forward balance sheet the aggregate of the assets, liabilities and funds was: fixed assets current assets current liabilities funds 2018 £ 123,728 (170,170) 2017 £ 151,642 (197,108) (46,442) (45,465) 287,315 332,780 240,873 287,315 28,986 251,121 (39,235) - 299,204 (11,889) 240,873 287,315 40 36 conservation education & research trust report and financial statements for the year ended 30 september 2018

15 parent charity the parent charity's gross income and the results for the year are disclosed as follows: gross income result for the year 16 debtors trade debtors other debtors prepayments and accrued income 2018 £ 4,565,547 (911,480) 2017 £ 5,174,876 1,258,223 the group 2018 £ 35,315 46,063 358,689 2017 £ 366,561 10,735 773,613 the charity 2018 £ 2017 £ 35,315 41,326 311,010 311,826 5,718 772,952 440,067 1,150,909 387,651 1,090,496 long term debtors the us affiliate, earthwatch expeditions balance, which was outstanding at end of 30 september 2017, has been paid down during the year, with only one instalment due to be repaid in early 2019. after net off with the receivable due from cert, the net balance due from earthwatch expeditions is us$ 9,369, which is shown under trade debtors. 17 creditors: amounts falling due within one year trade creditors taxation and social security amounts owed to subsidiary undertakings accruals and other creditors deferred income (note 18) the group 2018 £ 197,490 117,628 - 328,859 98,129 2017 £ 331,372 50,837 - 290,672 103,336 the charity 2018 £ 2017 £ 163,288 117,628 136,423 316,154 98,129 331,372 50,837 6,802 278,783 103,336 742,106 776,217 831,622 771,130 18 deferred income deferred income comprises payments in advance of volunteers participating in projects and corporate donations received where the project will not commence until the following financial year. the group 2018 £ 2017 £ the charity 2018 £ 2017 £ balance at the beginning of the year amount released to income in the year amount deferred in the year 103,336 (103,336) 98,129 16,042 (16,042) 103,336 103,336 (103,336) 98,129 3,700 (3,700) 103,336 balance at the end of the year 98,129 103,336 98,129 103,336 41 37 conservation education & research trust report and financial statements for the year ended 30 september 2018

19a analysis of group net assets between funds (current year) general unrestricted funds £ designated funds £ endowment funds £ restricted funds £ total funds £ tangible fixed assets fixed asset investments net current assets - 5,245,550 (595,378) 139,484 - 1,413,423 - 72,596 1,044,490 - - 3,882,603 139,484 5,318,146 5,745,139 net assets at the end of the year 4,650,173 1,552,907 1,117,086 3,882,603 11,202,769 19b analysis of group net assets between funds (prior year) general unrestricted funds £ designated funds £ endowment funds £ restricted funds £ total funds £ tangible fixed assets fixed asset investments net current assets - - 5,204,999 85,014 - 1,323,544 - 72,912 1,039,953 - - 4,434,269 85,014 72,912 12,002,766 net assets at the end of the year 5,204,999 1,408,558 1,112,865 4,434,269 12,160,691 20a movements in funds (current year) at 1 october 2017 £ income & gains £ expenditure & losses £ transfers £ at 30 september 2018 £ endowment funds: jersey 40th anniversary fellowship total endowment funds restricted funds: neville shulman earthwatch award eu - monocle hsbc climate partnership hbsc water programme hsbc wa / stp hsbc slp programme 86,042 1,026,822 1,112,864 48,071 - 1,877,917 165,332 2,254,969 87,980 2,313 2,225 4,538 (316) - (316) - - - 88,039 1,029,047 1,117,086 66,778 145,636 4,022 - 2,016,939 562,695 (17,918) (52,310) (79,371) - (2,695,138) (357,464) (1,990) - - (165,332) 43,016 (21,229) 94,941 93,326 1,802,568 - 1,619,786 271,982 total restricted funds 4,434,269 2,796,070 (3,202,201) (145,535) 3,882,603 unrestricted funds: designated funds: capital fund other 85,014 1,323,544 - 1,788,118 (42,699) (2,034,429) 97,169 336,190 139,484 1,413,423 total designated funds 1,408,558 1,788,118 (2,077,128) 433,359 1,552,907 general funds non-charitable trading funds 4,917,685 287,315 121,031 123,728 (341,592) (170,170) (287,824) - 4,409,300 240,873 total unrestricted funds 6,613,558 2,032,877 (2,588,890) 145,535 6,203,080 total funds 12,160,691 4,833,485 (5,791,407) - 11,202,769 42 38 conservation education & research trust report and financial statements for the year ended 30 september 2018

20b movements in funds (prior year) at 1 october 2016 £ income & gains £ expenditure & losses £ transfers £ at 30 september 2017 £ endowment funds: jersey 40th anniversary fellowship total endowment funds restricted funds: neville shulman earthwatch award prince albert hsbc climate partnership hbsc water programme hsbc wa / stp hsbc slp programme 79,911 1,024,773 1,104,684 65,216 792 1,860,785 1,032,305 - 355,985 6,131 2,049 8,180 - - - - - - 86,042 1,026,822 1,112,864 2,100 7,965 17,132 1,371 2,750,000 858,275 (17,321) (6,688) - (795,082) (464,391) (1,061,707) (1,924) (2,069) - (73,262) (30,640) (64,573) 48,071 - 1,877,917 165,332 2,254,969 87,980 total restricted funds 3,315,083 3,636,843 (2,345,189) (172,468) 4,434,269 unrestricted funds: designated funds: capital fund other 91,971 1,180,915 - 1,523,387 (6,957) (1,380,758) total designated funds 1,272,886 1,523,387 (1,387,715) - - - 85,014 1,323,544 1,408,558 general funds non-charitable trading funds 4,922,500 332,780 1,397,980 151,642 (1,575,262) (197,108) 172,468 - 4,917,685 287,315 total unrestricted funds 6,528,166 3,073,009 (3,160,085) 172,468 6,613,558 total funds 10,947,933 6,718,032 (5,505,274) - 12,160,691 purposes of endowment funds a. it has now been agreed with the states of jersey that we can spend the endowment. it has been agreed to spend the remainder of the fund over the next five years, with a particular focus on supporting education, teachers and emerging scientists. the first training using this fund will take place in february 2019. b. the 40th anniversary fellowship consists of a donation of £1,000,000 from the oman government to set up an endowment fund. at 30 september 2018, there is unspent income from the fund of £26,822 which is included in the total. we are currently negotiating with the relevant parties to agree objectives for the fund going forward. the neville shulman earthwatch award fund is a donation from the author and environmentalist neville shulman cbe, set up to fund earthwatch fellows from developing countries who are emerging leaders in conservation. two awards of £4,000 are given each year to fund a project in the fellow’s home country with a view to further enhance their professional skills in conservation. a further four awards of £500 are given each year to fund fellows’ participation in a local workshop and/or conservation conferences. 2018 was the 10th year of neville’s awards programme, which was based on an investment of £150,000 in 2008. in 2018 neville confirmed his wish to continue supporting earthwatch and agreed to continued support for an additional 10 years at a level of £20,000 per year; neville has so far made donations which total £66,600. these awards now better represent the earthwatch focus areas. selection criteria has been adapted to ensure candidates whose projects meet our new strategy focus and have an impact on local communities and stakeholders are selected. the hsbc climate partnership was a five-year international research and engagement programme on climate change, funded by hsbc holdings plc. following the completion of the programme in 2012, hsbc agreed that the fund would be retained by earthwatch to fund future projects or used to increase earthwatch’s capacity to deliver future programmes. from 2017, earthwatch began to use these funds to support community engagement activities. 43 39 conservation education & research trust report and financial statements for the year ended 30 september 2018

20 movements in funds (continued) purposes of restricted funds the hsbc water programme is an eight-year programme designed to deliver research and engagement on freshwater sources and the ecosystems they support worldwide. the aim of the programme is education of hsbc staff and the local communities, about critical local and global freshwater challenges. the evolution of this programme led to the development of the sustainability training programme in 2017. the programme focuses on regional scientific research projects, investigating nature-based solutions for climate resilience, building understanding of these issues and how these connect internally to sustainability and the bank’s priorities. the hsbc sustainability leadership programme is a residential programme for senior managers within hsbc designed to deeply engage business leaders in climate change and sustainability issues; leading to decisions and actions which make hsbc a more sustainable business. participants work with earthwatch scientists on a climate change-related research project and take part in structured sustainability learning sessions relevant to hsbc - the programme is co-delivered by earthwatch and hsbc. purposes of designated funds the capital fund is the funds of the group/company which are represented by the net book value of tangible and intangible fixed assets. other designated funds are monies received in advance for projects that are not restricted but have committed activities in future years. these funds are not for general use. 21 reconciliation of net income / (expenditure) to net cash flow from operating activities net income / (expenditure) for the reporting period (as per the statement of financial activities) depreciation charges (gains)/losses on investments dividends, interest and rent from investments (profit)/loss on the disposal of fixed assets (increase)/decrease in debtors increase/(decrease) in creditors 2018 £ 2017 £ (957,922) 1,212,758 42,699 7,475 (48,686) (3,569) 710,841 (34,111) 17,227 (4,442) (42,311) 8,543 (272,595) 348,081 net cash (used in) / provided by operating activities (283,273) 1,267,261 22 operating lease commitments the group's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods: less than one year one to five years over five years property 2018 £ 86,400 345,600 86,400 2017 £ 86,400 345,600 172,800 518,400 604,800 23 derivative financial instruments - foreign exchange contracts the trust enters into foreign currency contracts to mitigate the exchange risk for certain foreign currency transactions. at 30 september 2018 there were us$1,670,000 (2017: none) open currency commitments. the unrealised forward foreign exchange transaction was £41,829 (2017: £nil). the forward currency contracts are measured at fair value using quoted forward exchange rates. 24 legal status of the charity the charity is a company limited by guarantee and has no share capital. the liability of each member in the event of winding up is limited to £1. 44 40 conservation education & research trust report and financial statements for the year ended 30 september 2018

thank you to our supporters corporate partners hsbc holdings plc mitsubishi corporation pwc royal dutch shell plc tate & lyle plc thames water trusts and foundations, governmental and research grants the ernest cook trust european commission - horizon 2020 national lottery heritage fund kilpatrick fraser charitable trust mitsubishi corporation fund for europe and africa nerc the oakdale trust reed educational trust robert and margaret moss charitable trust states of jersey the waterloo foundation partner institutions the birmingham institute of forest research (bifor) high life highland countryside rangers ihe delft and all other ground truth 2.0 partners imperial college london nanjing agricultural university the natural history museum newcastle university and all other capturing our coast partners plymouth marine laboratory and all other monocle partners rivers trusts and all other organisations participating in freshwater watch scripps institution of oceanography scs global services seychelles national park authority university college london university of birmingham and all other encompass partners university of leeds and all other catchx partners university of oxford university of reading and all other opener partners wiltshire wildlife trust expedition research scientists dr bernat claramunt lopez dr j. clifton dr eslam osman dr p.p. dhyani dr leeann fishback dr russell hill dr abraham miller-rushing professor d. smith science & policy advisors dr mike moorcroft dr anett richter camilla morrison-bell brendan costello dr andrew salisbury dr helen bostock dr daniel hayhow professor rené van der wal professor dawn scott professor william sutherland dr claire wordley professor kevin gaston dr michael pocock professor philip james supporters neville shulman cbe nigel and shane winser a gift to remember dr kate barlow edward hoare michael parkes peter harney the late mrs eileen j. drury the late hannes hatje oxford high school (fundraisers) virginia wernham bourke (london marathon fundraiser) robert lagden (london marathon fundraiser) megan rothery (reading half fundraiser) natasha muldoon (thames trek fundraiser) all our young earthwatcher film competition entrants kayaking the continent (anna and kate) rowzambezi team 41 conservation education & research trust report and financial statements for the year ended 30 september 2018

thank you to our supporters trustees mark collins (retired november 2018) iain coucher (and fundraiser) dorothee d’herde (and science & policy advisor) nick dobson (retired june 2018) ed green lucian j. hudson – chair lisa king superna khosla – treasurer geoff lane – vice-chair dax lovegrove dr jack matthews (and science & policy advisor) judith mosely adam powell speakers ben pope duncan wisbey helen duff lizzie daly matt highton natalie fee naomi wilkinson rachel wheeley simon king obe simon watt sam barcroft tony juniper cbe wendy darke volunteers paul baker tony strong lynda thompson a special thanks to the 4,673 earthwatchers who have contributed to our projects, research and events 42 conservation education & research trust report and financial statements for the year ended 30 september 2018