IRIS Accounts Productionv24.1.0.578OtherCompany accountsTruefalsePounds1.4.2231.3.2331.3.23FYFRS 102Independent examinerLarge and medium-sized companies regime for accountsFullCharities SORPtruetruetruetruefalsetruetruefalsetrue iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh118131532022-03-31118131532023-03-31118131532022-04-012023-03-31118131532021-03-31118131532021-04-012022-03-31118131532022-03-3111813153ns0:CharitableCompanyLimitedByGuarantee2022-04-012023-03-3111813153ns15:PoundSterling2022-04-012023-03-3111813153ns11:FRS1022022-04-012023-03-3111813153ns11:IndependentExaminationCharity2022-04-012023-03-3111813153ns11:LargeMedium-sizedCompaniesRegimeForAccounts2022-04-012023-03-3111813153ns11:FullAccounts2022-04-012023-03-3111813153ns11:CharitiesSORP2022-04-012023-03-3111813153ns16:EnglandWales2022-04-012023-03-3111813153ns11:RegisteredOffice2022-04-012023-03-3111813153ns0:Trustee12022-04-012023-03-3111813153ns0:Trustee22022-04-012023-03-3111813153ns0:Trustee32022-04-012023-03-3111813153ns0:Trustee42022-04-012023-03-3111813153ns0:Trustee52022-04-012023-03-3111813153ns0:Trustee62022-04-012023-03-3111813153ns0:TotalUnrestrictedFunds2022-04-012023-03-3111813153ns0:TotalRestrictedIncomeFunds2022-04-012023-03-3111813153ns0:Activity92022-04-012023-03-3111813153ns0:TotalUnrestrictedFundsns0:Activity92022-04-012023-03-3111813153ns0:Activity9ns0:TotalRestrictedIncomeFunds2022-04-012023-03-3111813153ns0:Activity92021-04-012022-03-3111813153ns0:TotalUnrestrictedFunds2022-03-3111813153ns0:TotalRestrictedIncomeFunds2022-03-3111813153ns0:TotalUnrestrictedFunds2023-03-3111813153ns0:TotalRestrictedIncomeFunds2023-03-3111813153ns0:TotalUnrestrictedFundsns10:WithinOneYear2023-03-3111813153ns0:TotalRestrictedIncomeFundsns10:WithinOneYear2023-03-3111813153ns10:WithinOneYear2023-03-3111813153ns10:WithinOneYear2022-03-3111813153ns10:ComputerEquipment2022-04-012023-03-311181315322022-04-012023-03-3111813153ns10:OwnedAssets2022-04-012023-03-3111813153ns10:OwnedAssets2021-04-012022-03-311181315312022-04-012023-03-311181315312021-04-012022-03-3111813153ns0:TotalUnrestrictedFunds2021-04-012022-03-3111813153ns0:TotalRestrictedIncomeFunds2021-04-012022-03-3111813153ns0:TotalUnrestrictedFundsns0:Activity92021-04-012022-03-3111813153ns0:Activity9ns0:TotalRestrictedIncomeFunds2021-04-012022-03-3111813153ns10:ComputerEquipment2022-03-3111813153ns10:ComputerEquipment2023-03-3111813153ns10:ComputerEquipment2022-03-31

REGISTERED COMPANY NUMBER: 11813153 (England and Wales)













COMMONWEALTH CLIMATE AND LAW INITIATIVE

(A COMPANY LIMITED BY GUARANTEE)



UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2023







COMMONWEALTH CLIMATE AND LAW INITIATIVE








CONTENTS OF THE FINANCIAL STATEMENTS

for the year ended 31st March 2023






Page




Report of the Trustees  

1


to


6



Independent Examiner's Report  

7




Statement of Financial Activities  

8




Balance Sheet  

9


to


10



Notes to the Financial Statements  

11


to


19


COMMONWEALTH CLIMATE AND LAW INITIATIVE (REGISTERED NUMBER: 11813153)



REPORT OF THE TRUSTEES

for the year ended 31st March 2023



The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31st March 2023. The trustees have adopted the provisions of 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 2019).


OBJECTIVES AND ACTIVITIES

Objectives and aims

Purposes and Aims
Our charity's environmental purposes as set out in the objects contained in the company's memorandum of association are:

advancing the protection, preservation and conservation of the physical and natural environment for the public benefit, in particular but not exclusively by:
1) researching strategies and mechanisms that may assist to facilitate a rapid, orderly and efficient re-allocation of capital to business and investment activities that promote sustainable development and the transition to a global low carbon economy to address the threat of catastrophic climate change, and publishing the useful results of that research.
2) researching the material risks of future legal liabilities thereby motivating a behavioural shift in which company directors and pension fund trustees take account of physical climate change risk and societal responses to climate change in corporate and investment decision-making;
3) promoting the integration of the financial risks and opportunities of climate change across all facets of corporate governance and investment practice; and
4) educating the public in all matters relating to the law, practice and administration of justice in connection with climate change, sustainable development and the conservation and protection of the environment and the prudent use of natural resources.


Ensuring our work delivers our aims
We work to achieve our aims by undertaking legal research and stakeholder engagement to accelerate understanding of climate and biodiversity risk by applying existing companies and securities laws to drive a rapid and orderly transition to a net zero emissions economy. We produce legal research on fiduciary duties and practical tools on how to integrate the risks and opportunities of climate change into corporate governance, in order to minimize the risk of personal liability for directors and officers and maximize near term efforts in the transition to a sustainable economy.

Public benefit

Although we direct our activities to corporate directors and investor fiduciaries (and the actors that advise them, such as lawyers and accountants, or influence or supervise them, such as financial regulators) the beneficiaries of their improved understanding of the legal risks and subsequent improvements in corporate and investor governance and disclosure are the public at large. This is because we all benefit from efforts to accelerate the transition to a net zero emissions and regenerative economy by mitigating dangerous climate change and addressing biodiversity loss. Our legal analysis is freely available online and we focus on free events that are open to the public. If an event is closed to the public, this is to enable high level attendees in the corporate, regulatory, or legal communities to have safe space to learn and collaborate.


COMMONWEALTH CLIMATE AND LAW INITIATIVE (REGISTERED NUMBER: 11813153)



REPORT OF THE TRUSTEES

for the year ended 31st March 2023



OBJECTIVES AND ACTIVITIES

Significant activities

The focus of our work

The CCLI was launched in 2015 by His Royal Highness, the Prince of Wales, as a collaborative project between Oxford University Smith School of Enterprise and the Environment and UK charities ClientEarth and Accounting for Sustainability (A4S). The project was spun out from its administrative umbrella of the University of Oxford to operate as a charitable company limited by guarantee. The company lodged dormant accounts for its first financial year. The company is funded by environmental philanthropy and research grants.

The CCLI works towards an economic ecosystem in which decision-makers are educated and advised on climate and nature crises as risks to their companies and investments, rather than perceiving them as external ethical or environmental issues, and on what the law requires or permits them to do with this information. Our work examines the legal basis for directors and trustees to manage and report on climate change and nature-related risk under existing companies and securities law. We commission legal opinions from independent experts within a jurisdiction to build the authoritative evidence base and shift the mainstream understanding of the requirements of corporate and securities laws as they relate to climate change and other nature crises.

We inform directors, fiduciaries, investors, professional advisers and regulators of the potential for personal liability of directors and fiduciaries in relation to the impacts of climate change, through robust legal analysis and impact engagement strategies. We also provide practical tools for directors and fiduciaries to integrate the risks and opportunities of climate change into corporate governance and disclosure. One of our key principles is a focus on being outcome-focused and evidence-led.

The CCLI has carried out work in jurisdictions worldwide, and has seen increased awareness of climate change risk and its impacts on business and investment models during this time. In our experience, the nature of fiduciary and disclosure laws (by which relevant decision-makers may face personal liability for breaches) makes them an important lever for changing decision-making behaviour. By bringing decision-makers' attention to this, and by working with their advisors and civil society, we aim to drive behaviour changes on an individual level in order to accelerate the transition to a net zero emissions economy in line with the Paris goals.

Significantly in 2022-23, CCLI has been able to secure substantial funding for a biodiversity workstream enabling building upon CCLI's significant existing and evolving research on directors' duties in respect of climate change.


COMMONWEALTH CLIMATE AND LAW INITIATIVE (REGISTERED NUMBER: 11813153)



REPORT OF THE TRUSTEES

for the year ended 31st March 2023


ACHIEVEMENT AND PERFORMANCE

Charitable activities

During the financial year ended 31 March 2023, the CCLI expanded its employment to 4 full time employees, in order to further expand its capacity to carry out legal analysis and research, and to continue to organize and manage events involving stakeholders.

The CCLI continues to commission and publish legal research in multiple jurisdictions, delivering opinions in 2022-23 for Malaysia and the Philippines, adding to those developed in 2021-22 for Hong Kong, Singapore, Canada and India. These legal opinions are used individually and collectively in the conducting of events with stakeholders. Highlighted are the event with the Institute of Corporate Directors Malaysia to publicise the Malaysia opinion and a virtual roundtable with non-executive directors, lawyers, CEOs and the Philippines Stock Exchange to discuss the Philippines opinion. Further illustration of the use of these opinions in widening stakeholder engagement and as an enabler of further legal perspectives, can be seen in CCLI's launch of a Canadian Pension opinion issued by a leading Canadian law firm, conducted by way of a webinar in partnership with the Canadian Pension & Benefits Institute.

The CCLI has in 2022-23 continued to work closely with the Climate Governance Initiative (CGI) in co-ordinating and publishing the second edition (July 2022) of the global 'primer' document summarising directors' duties and disclosure obligations in twenty jurisdictions, plus the EU. Quarterly updates are also prepared in collaboration with CGI, the March 2023 edition of which introduced the topic of biodiversity risk as a significant issues of board director concern.

The CCLI's biodiversity workstream officially commenced in April 2022 with the establishment of a three-member team to focus exclusively on this area. The major, but by no means only, 2022-23 milestone has been publication in December 2022 of the report 'Biodiversity Risk: Legal Implication for Companies and their Directors'. As with the approach to jurisdictions' climate legal opinions, the national 'spotlights' from within the report (United Kingdom, Canada, Australia and South Africa) have formed the basis of stakeholder engagement via webinars.

In 2022-23 CCLI's outputs have been increasingly picked up by third parties. Highlights included the earlier USA analysis cited in the CSSN Research Report 2022, the Harvard Law School Forum on Corporate Governance and Milieudefensis's letter to Shell in April 2022. Likewise, CCLI's risk report is included in the TNFD Knowledge Hub, raised in discussions at COP15 and cited in a Responsible Investor COP15 round-up.

The CCLI continued its project with world-leading behavioural science consultancy Influence at Work (IAW) to undertake research on the role that psychology plays in understanding how boards engage with the subject of climate change in the boardroom. In 2022-23, the CCLI and IAW finalised their research on behavioural insights into decision-making in the boardroom and produced a digital tool to facilitate use of the findings.

We also collaborated with other charities, universities and actors aiming to use the law to accelerate the transition to a net zero economy. Highlighted is the continued successful organisation of the climate litigation sessions at the Oxford Sustainable Finance Summits.

FINANCIAL REVIEW

Financial position

The charity secured funding of £422,004. This positive financial outcome in its fourth year of operation continues to reflect the proof of concept, legal expertise and reputation built by the trustees and their teams while the CCLI operated until 2019 as a project under the auspices of the University of Oxford.


Principal funding sources

The charity receives restricted funding from environmental philanthropy. This is from direct grants (from funders Foundation for International Law for the Environment and Full Circle Foundation) the latter of which in 2022-23 has enabled the charity to substantially expand its focus to include examining the acceleration of business and investor action on biodiversity through fiduciary duty.

The charity has previously received sub-grants from the UK charity ClientEarth and research or academic funding from the University of British Columbia and may in future receive these from Oxford University.


COMMONWEALTH CLIMATE AND LAW INITIATIVE (REGISTERED NUMBER: 11813153)



REPORT OF THE TRUSTEES

for the year ended 31st March 2023



FINANCIAL REVIEW

Reserves policy

The trustees have examined the charity's requirements for reserves in light of the main risks to the organisation. The trustees have established an aspiration whereby the unrestricted funds not committed to projects or invested in tangible fixed assets held by the charity should be between 3 to 6 months of expenditure. However, with low operating costs, the trustees do not deem it necessary to put an exact figure on this. The current reserves from unrestricted funds are £(9,106) (£(3,686) in 2022) which is below this aspirational target. The trustees are not concerned the charity has not yet reached the target, as the charity operates on a model where its working capital and charitable activities are funded by restricted funds. If restricted funds do not come in, the charity will wind down its activities so as to not incur liabilities. All employee salaries are covered by restricted funds.

Funding comes in lump sum grants of restricted funds, which may be recognised in one year, and spent over the course of multiple years in accordance with charitable activities planned and approved by the relevant funder. The present level of unspent restricted funds available to the charity of £298,264 (£210,786 in 2022).

FUTURE PLANS

It is anticipated that 2023-24 will be a period of transition for CCLI with the trustees' giving consideration to development and adoption of a three-year strategic plan accompanied by decision regarding existing and future grant income streams.


The CCLI will continue to work with key stakeholders in jurisdictions where it has developed or sponsored climate-related legal opinions to increase the impact of these analyses, including director organisations, law firms and regulators.


Building upon establishment and outputs from its biodiversity workstream, CCLI expects in 2023-24 further systematic integration of its climate and biodiversity work anticipating development of memoranda of opinion on nature-related risks and directors' duties for both Australia and the United Kingdom, and potentially also for one further common law jurisdiction.


Working with partner organisations, such as the CGI and other director organisations, has proven to be an effective way for the CCLI to increase the impacts of its findings. The CCLI intends to further its collaboration with the CGI and other organisations going forward.


STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The CCLI is controlled by its governing document, a memorandum of association, and is constituted as a company limited by guarantee, as defined by the Companies Act 2006. In the event of the company being wound up members are required to contribute an amount not exceeding £10.


Recruitment and appointment of new trustees

In accordance with the company's Articles one third of the trustees are required to resign at each AGM after the financial year, although they are entitled to be nominated for re-election. The trustees are experts in the field of law, accounting, sustainable finance, and academia. They bring this substantive expertise to the charitable activities on legal research and stakeholder engagement, as well as their governance of the charity. New and replacement trustees will be recruited where a need is identified and suitable training and induction provided to enable them to fulfil their role.


COMMONWEALTH CLIMATE AND LAW INITIATIVE (REGISTERED NUMBER: 11813153)



REPORT OF THE TRUSTEES

for the year ended 31st March 2023



STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational structure

During the reporting period the charity was managed by an Executive Director Ms E Mulholland, who is also a director/trustee of the charitable company. As a small charity, this enables the Executive Director to have the powers to manage the day-to-day operations of the company, such as authority for banking and entry into contracts in accordance with the delegation granted by the Board, while also being able to play a role in governance activities alongside other trustees. The Executive Director leads a small team of employees (which at the end of the reporting period consisted of the equivalent of four FTE employees), and research assistants and legal experts engaged on a consultancy basis.

The company has been constituted as a charitable company and the articles of association have been modelled on that of a charitable company. The company is registered with the Charity Commission under registration number 1203501.

Risk management

The major risks to which the charity is exposed as identified by the trustees have been reviewed and systems have been established to mitigate those risks. These risks pertain to ensuring continuity of core funding within reasonable time horizons and ensuring the publications, particularly legal opinions, are of the highest calibre.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

11813153 (England and Wales)


Registered Charity number

1203501


Registered office

128 City Road

London

EC1V 2NX


Trustees

Dr J A Purcell

B L Caldecott Academic (resigned 13.10.23)

Ms S A Kilgour Solicitor

T O Wetzer

Dr J Sarra (resigned 6.12.23)

Professor C Williams

Ms E L Mulholland Lawyer (resigned 1.8.23)


Independent Examiner

Andrew Hodgetts BA FCA

Shaw Gibbs Limited

Wey Court West

Union Road

Farnham

Surrey

GU9 7PT


Approved by order of the board of trustees on 27th March 2024 and signed on its behalf by:







COMMONWEALTH CLIMATE AND LAW INITIATIVE (REGISTERED NUMBER: 11813153)



REPORT OF THE TRUSTEES

for the year ended 31st March 2023


Dr J A Purcell - Trustee


INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF

COMMONWEALTH CLIMATE AND LAW INITIATIVE


Independent examiner's report to the trustees of Commonwealth Climate And Law Initiative ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31st March 2023.


Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').


Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.


Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.


I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:


1.

accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or

2.

the accounts do not accord with those records; or

3.

the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4.

the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).


I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.









Andrew Hodgetts BA FCA

The Institute of Chartered Accountants in England and Wales


Shaw Gibbs Limited

Wey Court West

Union Road

Farnham

Surrey

GU9 7PT


27th March 2024



COMMONWEALTH CLIMATE AND LAW INITIATIVE



STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)

for the year ended 31st March 2023



2023


2022


Unrestricted


Restricted


Total


Total


fund


funds


funds


funds


Notes

£   

£   

£   

£   


INCOME AND ENDOWMENTS FROM

Donations and legacies

2

-


422,004


422,004


183,480



EXPENDITURE ON

Charitable activities

Research and Education

5,420


334,526


339,946


253,319



NET INCOME/(EXPENDITURE)

(5,420

)

87,478


82,058


(69,839

)



RECONCILIATION OF FUNDS

Total funds brought forward

(3,686

)

210,786


207,100


276,939



TOTAL FUNDS CARRIED FORWARD

(9,106

)

298,264


289,158


207,100



COMMONWEALTH CLIMATE AND LAW INITIATIVE (REGISTERED NUMBER: 11813153)



BALANCE SHEET

31st March 2023



2023


2022


Unrestricted


Restricted


Total


Total


fund


funds


funds


funds


Notes

£   

£   

£   

£   


FIXED ASSETS


Tangible assets

7

1,186


228


1,414


1,709



CURRENT ASSETS


Debtors

8

-


67,225


67,225


141,752


Cash at bank

-


230,811


230,811


90,822


-


298,036


298,036


232,574



CREDITORS


Amounts falling due within one year

9

(10,292

)

-


(10,292

)

(27,183

)


NET CURRENT ASSETS/(LIABILITIES)

(10,292

)

298,036


287,744


205,391



TOTAL ASSETS LESS CURRENT

LIABILITIES

(9,106

)

298,264


289,158


207,100



NET ASSETS

(9,106

)

298,264


289,158


207,100


FUNDS

11

Unrestricted funds

(9,106

)

(3,686

)

Restricted funds

298,264


210,786


TOTAL FUNDS

289,158


207,100



The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st March 2023.


The members have not required the company to obtain an audit of its financial statements for the year ended 31st March 2023 in accordance with Section 476 of the Companies Act 2006.


The trustees acknowledge their responsibilities for
(a)ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.


COMMONWEALTH CLIMATE AND LAW INITIATIVE (REGISTERED NUMBER: 11813153)



BALANCE SHEET - continued

31st March 2023


These financial statements have been prepared in accordance with the provisions applicable to small charitable companies subject to the small companies regime.



The financial statements were approved by the Board of Trustees and authorised for issue on 27th March 2024 and were signed on its behalf by:






J A Purcell - Trustee



COMMONWEALTH CLIMATE AND LAW INITIATIVE



NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31st March 2023


1.

ACCOUNTING POLICIES



Basis of preparing the financial statements


The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.



Income


All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.



Expenditure


Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.



Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.



Computer equipment

-

25% on cost



Taxation

As a registered charity the company is not subject to Corporation tax to the extent that it applies its surpluses for its stated charitable purposes. The company was not registered for VAT in the reporting period and as such is unable to recover VAT on the costs which it incurs. The company is subject to standard payroll taxes as an employer.


Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.


Pension costs and other post-retirement benefits


The charitable company operates a defined contribution pension scheme.  Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.




COMMONWEALTH CLIMATE AND LAW INITIATIVE



NOTES TO THE FINANCIAL STATEMENTS - continued

for the year ended 31st March 2023


2.

DONATIONS AND LEGACIES


2023


2022

£   

£   



Grants

422,004


183,480





Grants received, included in the above, are as follows:



2023


2022

£   

£   



ClientEarth

-


41,728




Full Circle

138,500


-




Foundation for International Law for the Environment

283,504


141,752



422,004


183,480




3.

NET INCOME/(EXPENDITURE)



Net income/(expenditure) is stated after charging/(crediting):




2023


2022

£   

£   



Depreciation - owned assets

550


385




4.

TRUSTEES' REMUNERATION AND BENEFITS


2023


2022

£   

£   



Trustees' salaries

36,000


46,812




Trustees' social security

3,909


938




Trustees' pensions paid

893


-



40,802


47,750





Trustees salaries shown above also includes amounts paid under consultancy agreements.



Trustees' expenses


There were no trustees' expenses paid for the year ended 31st March 2023 nor for the year ended 31st March 2022.




COMMONWEALTH CLIMATE AND LAW INITIATIVE



NOTES TO THE FINANCIAL STATEMENTS - continued

for the year ended 31st March 2023


5.

STAFF COSTS



The average monthly number of employees during the year was as follows:



2023


2022


Management

4


3





No employees received emoluments in excess of £60,000.


6.

COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES


Unrestricted


Restricted


Total


fund


funds


funds

£   

£   

£   



INCOME AND ENDOWMENTS FROM


Donations and legacies

-


183,480


183,480




EXPENDITURE ON


Charitable activities


Research and Education

5,971


247,348


253,319




NET INCOME/(EXPENDITURE)

(5,971

)

(63,868

)

(69,839

)




RECONCILIATION OF FUNDS


Total funds brought forward

2,285


274,654


276,939




TOTAL FUNDS CARRIED FORWARD

(3,686

)

210,786


207,100





COMMONWEALTH CLIMATE AND LAW INITIATIVE



NOTES TO THE FINANCIAL STATEMENTS - continued

for the year ended 31st March 2023


7.

TANGIBLE FIXED ASSETS


Computer


equipment

£   



COST


At 1st April 2022

2,094




Additions

255




At 31st March 2023

2,349




DEPRECIATION


At 1st April 2022

385




Charge for year

550




At 31st March 2023

935




NET BOOK VALUE


At 31st March 2023

1,414




At 31st March 2022

1,709




8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022


£   

£   



Accrued income

67,225


141,752




9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022


£   

£   



Bank loans and overdrafts (see note 10)

3,494


24,745




Other creditors

-


538




Accrued expenses

6,798


1,900



10,292


27,183




10.

LOANS



An analysis of the maturity of loans is given below:


2023

2022


£   

£   



Amounts falling due within one year on demand:


Bank overdrafts

3,494


24,745






COMMONWEALTH CLIMATE AND LAW INITIATIVE



NOTES TO THE FINANCIAL STATEMENTS - continued

for the year ended 31st March 2023


11.

MOVEMENT IN FUNDS


Net




movement


At



At 1.4.22


in funds


31.3.23


£   

£   

£   



Unrestricted funds


General fund

(3,686

)

(5,420

)

(9,106

)




Restricted funds


Asia

28,144


(18,765

)

9,379




Biodiversity

4,337


125,100


129,437




Global FD

119,964


(13,316

)

106,648




US

52,443


-


52,443




UBC Fund

5,898


(5,541

)

357



210,786


87,478


298,264




TOTAL FUNDS

207,100


82,058


289,158





Net movement in funds, included in the above are as follows:



Incoming


Resources


Movement



resources


expended


in funds


£   

£   

£   



Unrestricted funds


General fund

-


(5,420

)

(5,420

)




Restricted funds


Asia

-


(18,765

)

(18,765

)



Biodiversity

138,500


(13,400

)

125,100




Global FD

283,504


(296,820

)

(13,316

)



UBC Fund

-


(5,541

)

(5,541

)


422,004


(334,526

)

87,478




TOTAL FUNDS

422,004


(339,946

)

82,058






COMMONWEALTH CLIMATE AND LAW INITIATIVE



NOTES TO THE FINANCIAL STATEMENTS - continued

for the year ended 31st March 2023


11.

MOVEMENT IN FUNDS - continued



Comparatives for movement in funds



Net




movement


At



At 1.4.21


in funds


31.3.22


£   

£   

£   



Unrestricted funds


General fund

2,285


(5,971

)

(3,686

)




Restricted funds


Asia

73,884


(45,740

)

28,144




Biodiversity

4,337


-


4,337




Global FD

177,011


(57,047

)

119,964




US

19,422


33,021


52,443




UBC Fund

-


5,898


5,898



274,654


(63,868

)

210,786




TOTAL FUNDS

276,939


(69,839

)

207,100





Comparative net movement in funds, included in the above are as follows:



Incoming


Resources


Movement



resources


expended


in funds


£   

£   

£   



Unrestricted funds


General fund

-


(5,971

)

(5,971

)




Restricted funds


Asia

-


(45,740

)

(45,740

)



Global FD

141,752


(198,799

)

(57,047

)



US

33,126


(105

)

33,021




UBC Fund

8,602


(2,704

)

5,898



183,480


(247,348

)

(63,868

)



TOTAL FUNDS

183,480


(253,319

)

(69,839

)




COMMONWEALTH CLIMATE AND LAW INITIATIVE



NOTES TO THE FINANCIAL STATEMENTS - continued

for the year ended 31st March 2023


11.

MOVEMENT IN FUNDS - continued



A current year 12 months and prior year 12 months combined position is as follows:



Net




movement


At



At 1.4.21


in funds


31.3.23


£   

£   

£   



Unrestricted funds


General fund

2,285


(11,391

)

(9,106

)




Restricted funds


Asia

73,884


(64,505

)

9,379




Biodiversity

4,337


125,100


129,437




Global FD

177,011


(70,363

)

106,648




US

19,422


33,021


52,443




UBC Fund

-


357


357



274,654


23,610


298,264




TOTAL FUNDS

276,939


12,219


289,158





A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:



Incoming


Resources


Movement



resources


expended


in funds


£   

£   

£   



Unrestricted funds


General fund

-


(11,391

)

(11,391

)




Restricted funds


Asia

-


(64,505

)

(64,505

)



Biodiversity

138,500


(13,400

)

125,100




Global FD

425,256


(495,619

)

(70,363

)



US

33,126


(105

)

33,021




UBC Fund

8,602


(8,245

)

357



605,484


(581,874

)

23,610




TOTAL FUNDS

605,484


(593,265

)

12,219






COMMONWEALTH CLIMATE AND LAW INITIATIVE



NOTES TO THE FINANCIAL STATEMENTS - continued

for the year ended 31st March 2023


12.

RELATED PARTY DISCLOSURES



There were no related party transactions for the year ended 31st March 2023.


13.

FUNDS



Asia



The Asia fund is £92,750 grant received from Full Circle Foundation for an 18-month legal research and stakeholder engagement project in Hong Kong, India and Singapore, applying existing company law frameworks to the issue of climate change in order to drive a rapid and orderly transition towards a sustainable economy. So many of the decisions concerning the future of climate change are being made in financial centres in Asia today. The CCLI aims to build climate litigation and liability into decision-making in these jurisdictions, which will help to motivate a step change in action among company directors and other fiduciaries. We do so by commissioning legal opinions from independent counsel in order to fill an identified knowledge gap on the application of directors' and fiduciaries' existing legal duties under the laws of Singapore, Hong Kong and India to the issue of climate change, which will help other stakeholders across the spectrum, from regulators through to activist NGOs, working to transform business and investment relating to climate change



Biodiversity



The biodiversity fund is £138,500 grant received from Full Circle Foundation for an 24-month legal research and stakeholder engagement project for accelerating business and investor action on biodiversity through fiduciary duty. The objective of the project is to shift mainstream understanding of how fiduciary duty applies to the financial issues of loss of biodiversity and ecosystem services in order to help price biodiversity risk, drive capital towards biodiversity positive solutions, and drive the transition towards a regenerative economy that protects and restores biodiversity. Biodiversity loss can be characterised as a substantial market failure, in which corporations are able to both drive biodiversity loss, and externalise the costs of doing so, at the same time as being vulnerable to the economic effects of such loss. The CCLI aims in this project to build the evidence base to demonstrate that biodiversity loss poses risks to businesses and investments which needs to be considered by directors and other fiduciaries. Through its conducting of legal analysis and researching biodiversity loss as a business risk, financial risk and legal risk, CCLI intends to produce practical tools on biodiversity governance and disclosure.



Global FD



The Global FD fund is a £620,000 fund to be received from Foundation for International Law for the Environment over a period of two years and three months for research and education activities to help transform the mainstream understanding of fiduciary duty and climate change. The funding is for the charity to build capacity and resources to undertake legal research and stakeholder engagement applying existing company law frameworks in common law jurisdictions to the issue of climate change in order to drive a rapid and orderly transition towards a net zero emissions economy that underpins the Paris goals. The fund includes £125,000 to collaborate with behavioural scientists to develop a robust evidence-based approach to behavioural change by directors, officers and trustees in fulfilling their fiduciary duties on climate change. This expert analysis informs the activities and interventions of the CCLI and other civil society and academic actors working to transform corporate and investor decision-making on climate change. Even though this is restricted funding, the broad nature of the approved budget and activities means this fund operates as de facto core funding for our staff, virtual office expenses and other organisational activities. The goal of the sub-grant, to transform mainstream understanding of fiduciary duty, reflects the core of the charity's aims and charitable activities.



US




COMMONWEALTH CLIMATE AND LAW INITIATIVE



NOTES TO THE FINANCIAL STATEMENTS - continued

for the year ended 31st March 2023


13.

FUNDS - continued



The US fund is a £91,816 (US $120,005 contracted) sub-grant from charity ClientEarth for an 18 month project to undertake a series of activities to expand US directors' and officers' knowledge of climate change as a material financial risk and the implications of this for their governance and disclosure of climate change under existing corporate and securities laws.



UBC



The UBC is a small sub-grant from the University of British Columbia for £8602 CAD $15,000 contracted) for knowledge mobilisation and amplification. The funds were directed to design of our website and rebranding.