annual report 2013 - Forum for the · Page 3 Contents 1 Chair’s introduction to the 2013 annual report 4 2 Chief Executive’s introduction to the 2013 annual report 6 3 Report of

annual report

shifting up a gear

2013

EMS 59526

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www.forumforthefuture.org

Introduction to the directors’ report Forum for the Future is an independent non-profit working globally with business, government and other organisations to solve complex sustainability challenges.

We believe it is critical to transform the key systems that we rely on, such as food and energy, to shape a brighter future. We have 18 years’ experience learning and inspiring new thinking, building creative partnerships and developing practical innovations to change our world. We share what we learn from our work so that we can scale-up change across the world.

System innovation is at the heart of our strategy. We build coalitions to work together to diagnose system challenges, design pioneering innovations and take them to scale. We use trends, visions and scenarios to challenge businesses, governments and other organisations on their assumptions about the world and to map their route to a sustainable future.

Discover our stories and what we’ve learned about building a sustainable world at forumforthefuture.org, or Follow us on LinkedIn or Twitter.

Charitable objects Forum for the Future is a registered educational charity and a company limited by guarantee and not having share capital. Its governing documents are the Memorandum and Articles of Association. Its charitable objects are:

! To advance the education of the public in economic and social studies as they relate to individuals, communities, society at large and the planet as a whole, with special reference to their interrelationship with ecology, the natural world, health, technology, agriculture, sustainable development, philosophy and psychology

! To promote sustainable development for the benefit of the public by: o The preservation, conservation and protection of the environment and the prudent use of

natural resources o The relief of poverty and the improvement of the conditions of life in socially and

economically disadvantaged communities o The promotion of sustainable means of achieving economic growth and regeneration.

The Forum for the Future is a non-profit company limited by guarantee and registered in England and Wales.

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Contents 1 Chair’s introduction to the 2013 annual report ............................... 4

2 Chief Executive’s introduction to the 2013 annual report .............. 6

3 Report of the Board of Trustees .................................................... 8 3.1 Principal achievements of the year .......................................................................................................................... 8 3.2 Activities and public benefit during 2013 ............................................................................................................... 11 3.3 Plans for 2014 ....................................................................................................................................................... 12 3.4 Environmental report ............................................................................................................................................. 13 3.5 Financial review and results for the year 2013 ...................................................................................................... 14 3.6 Reserves policy ..................................................................................................................................................... 16 3.7 Structure, governance and management .............................................................................................................. 16 3.8 Risk assessment ................................................................................................................................................... 17

4 Statement of directors’ responsibilities ........................................ 18

5 Independent auditor’s report to the members of Forum for the Future ............................................................................................... 19

5.1 Respective responsibilities of trustees and auditors .............................................................................................. 19 5.2 Scope of the audit of the financial statements ....................................................................................................... 19 5.3 Opinion on financial statements ............................................................................................................................ 19 5.4 Opinion on other matter prescribed by the Companies Act 2006 .......................................................................... 20 5.5 Matters on which we are required to report by exception ...................................................................................... 20

6 Financial statements .................................................................... 21

7 Trustees, officers and advisors .................................................... 32 7.1 Directors ................................................................................................................................................................ 32 7.2 Independent audit committee member .................................................................................................................. 32 7.3 Company secretary ................................................................................................................................................ 32 7.4 Senior Management Team .................................................................................................................................... 32 7.5 Registered office .................................................................................................................................................... 33 7.6 Company Registration Number ............................................................................................................................. 33 7.7 Charity Registration Number ................................................................................................................................. 33 7.8 Web address ......................................................................................................................................................... 33 7.9 Auditors .................................................................................................................................................................. 33 7.10 Bankers ............................................................................................................................................................... 33 7.11 Solicitors .............................................................................................................................................................. 33

8 2013 Partners .............................................................................. 35

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1 Chair’s introduction to the 2013 annual report When Forum started almost twenty years ago, one of its founding principles was that we would generate a number of start-up enterprises and charities focusing on particular sustainability issues; and, once established, they would spin off and continue accelerating change to a sustainable world, leaving Forum free to turn its attention to the next big sustainability challenge.

Some of that did happen. In 2008, we launched the London Sustainability Exchange, an independent charity focusing on connecting and motivating people to accelerate the transition to a more sustainable London. In 2011, our four-year Farming Futures project was handed over to the Centre of Excellence in UK Farming, which continues communicating with farmers, land managers and other influencers to drive on-farm climate change adaptation and mitigation. Farming Futures is now a joint initiative between IBERS at the University of Aberystwyth, NIAB, Harper Adams University, East Malling Research, Agri-Food and Biosciences Institute (AFBI) and SRUC.

And today, in the delivery of our current strategy, focusing on convening coalitions of leading organisations to tackle sustainability issues at a system level, we see this founding intention of Forum really coming into its own. And this signals a step-change in Forum’s ability to bring about the changes that our unsustainable world badly needs.

In 2013, we launched the Sustainable Shipping Initiative (SSI) with its own governing board. We set up the SSI in 2010 to tackle the huge sustainability challenges that will face the maritime industry over the next 30 years.

Now, the SSI membership represents 20 of the world’s largest and most influential ship owners, charterers, operators, shipbuilders, engineers, financiers and supply chain managers. We developed a shared understanding of the future and a compelling vision, and translated this into tangible action plans. Under the Board of Trustees, the SSI will continue working with entrepreneurs and innovators to bring new sustainable technologies to the industry.

At a UK-level, our Community Energy project has given birth to the Community Energy Coalition. In 2011, Forum gathered together a group of influential civil society leaders frustrated by the dominance of the Big 6 energy providers in the UK, and took them to visit pioneering community energy projects in Germany to

learn from their experiences of running community energy schemes.

From those initial visits, we built the Community Energy Coalition, a group of 32 membership organisations and other bodies, including The National Trust, The Co-operative, NUS, Women's Institute and Friends of the Earth; together they represent 17 million members across the UK. 2013 saw the first ever Community Energy Fortnight taking place all over the UK. The Coalition succeeded in influencing DECC’s new Community Energy Strategy and will continue working to make community energy at scale a reality in the UK by 2020.

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Also in the UK, our five-year project to make Bristol one of the leading sustainable cities culminated in the second successful Bristol’s Big Green Week, an international festival of environmental ideas, art and culture with more than 120 events in nine days.

The Festival, developed by Forum and Big Green Capital, is now an independent Community Interest Company supported by Bristol City Council, with plans for an even bigger Bristol Green Week in the run up to Bristol taking the lead as European Green Capital for 2015.

These large coalition projects are challenging to establish, fund and carry through; we have learned a huge amount in the last five years about the effort it takes to build a thriving stakeholder team, give it common purpose and help it take on a life of its own. But as these and similar Forum projects attest, the change that we can create together far outstrips what any organisation can achieve on its own.

In the future, the emergence of sustainability practitioners will continue at pace and what constitutes cutting edge practice in the field is moving rapidly. This, added together with the increasing interdependency of industries, economies and society across national boundaries and the huge disruption climate change adaptation and mitigation will cause, gives Forum extraordinary challenges and opportunities to operate both internationally and at a system level.

The organisation is well placed to rise effectively to these challenges, and I am confident that it will make the most of the opportunities. Finally, I would like to take this opportunity to thank Forum staff and Trustees for all their hard work and support over the last year. In particular, I would like to thank Forum’s outgoing CEO, Peter Madden, who after eight years of fantastic work has moved on. I’m delighted to formally welcome our new CEO, Dr Sally Uren, who stepped up from the Deputy CEO position on 1 July to lead Forum in the next stage of its journey. Sally was appointed as the preferred candidate from a wide pool of highly qualified individuals, and I have every confidence we will see Forum continue to go from strength to strength under her leadership.

Keith Clarke, Chairman

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2 Chief Executive’s introduction to the 2013 annual report 2013 has been an exciting year for Forum. It’s been a year of internationalisation, during which we’ve increased the size of our New York office to eight staff, opened an office in Singapore and begun exploring work in India. We’ve also welcomed 35 new organisations to our Network - big and small, UK and multinational - increasing the total number to 126. We ran more events and reached bigger audiences than ever before. We scaled up our system innovation work through coalition projects such as the Sustainable Shipping Initiative (SSI), the Community Energy Coalition and Dairy2020. And we celebrated the launch of Jonathon Porritt’s book, The World We Made (Alex McKay’s Story from 2050), which paints a positive picture of the future, in which the voices of reason have succeeded in creating a sustainable world – and looks back at how we did it.

So, what’s 2014 got in store? We’re looking forward to creating #theBIGshift, helping our growing network of leading businesses transform not only their own organisations, but the systems in which they operate. While businesses are starting to realise the economic, social and environmental benefits of operating much more sustainably, we now need to go beyond incremental change. To deliver a more sustainable future, businesses need to think of themselves as system innovators; this means innovating their core business, products and services, and understanding their role in the wider system. Only by influencing the nature of the systems in which they operate can businesses create a context in which they can innovate for long-term sustainability.

To influence a whole system, we need a set of actions working together: behaviour change, plus new innovations, plus communication and influencing to scale-up pioneering change. Our #theBIGshift campaign highlights the urgent need to take a systems-based approach to sustainability, and the rewards available for those businesses and other organisations who are stepping up to the challenge.

Few organisations can do this alone; they need to collaborate with members of their supply-chain, other stakeholders and even competitors to identify and remove barriers to wider change. For example, one of the best system innovators out there is Unilever. More than a decade ago, when Unilever owned a frozen fish business, they realised that they couldn’t achieve the future sustainability of fish stocks on their own. This was one of the primary motivations for establishing the Marine Stewardship Council, to help establish certifiable standards for sustainable fish; the MSC label is now on more than 22,000 fish products worldwide.

Collaborating with competitors feels more risky. To do this you first need to ask yourself, 'where is the line that marks the boundaries of what is pre-competitive and competitive?’. Working out this line removes one of the biggest barriers to collaboration: the fear of losing competitive market positioning. Forum for the Future has brought together many dynamic partnerships to address these challenges. We established the SSI, a cross-industry coalition with 20 members including ship owners, ship builders, charterers, service providers, engineers and financers. They've collectively defined a vision for 2040 and are working on practical initiatives to reshape the industry. We are also working with Nike. They discovered that 60% of the environmental footprint of a pair of their shoes is embedded in its materials. But they realised they couldn't address the materials challenge alone, so they've taken a systemic approach and partnered with NASA, USAID and US State Department to accelerate a revolution in sustainable materials.

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We’ll be doing even more of this work in 2014. We know that we are heading into a VUCA world - volatile, uncertain, complex and ambiguous - where the necessity for more sustainable business practice is ever stronger. Businesses must have one eye on the future if they are to remain successful in a complex and rapidly changing world. Doing nothing presents real risks. Acting now opens exciting opportunities. It's time to join #theBIGshift in sustainability.

Dr Sally Uren, Chief Executive

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3 Report of the Board of Trustees For the year ended 31 December 2013 | Incorporating the Directors’ Report

The Trustees, who act as directors for the purposes of company law, present their report and audited financial statements for the year ended 31 December 2013, which have been prepared in accordance with the Statement of Recommended Practice: Reporting and Accounting by Charities, and the Companies Act 2006.

3.1 Principal achievements of the year In 2013 we advanced the third year of our five-year strategy on system innovation (SI) with projects in the food and energy systems, work with pioneers in the world of sustainable business, high-impact futures projects and expanding programmes in the US, India and South East Asia. Our main priorities for 2013 were:

! To accelerate big, system-changing projects. We delivered on this priority with innovative projects such as our Sustainable Shipping Initiative (SSI), and work with pioneering business such as Ecover. A sample of our projects is outlined below.

! To become more international. Our US office grew to eight staff, we established a small office in Singapore and began operations in India. We exceeded our target to deliver 30% of our work outside of the UK, reaching 38%, and recruited several major partners in the US and South East Asia. Our international work delivered some of our most forward-looking outcomes, such as our Informal Cities Dialogue project detailed below. Our Singapore office, supported by a grant from the Singapore Economic Development Board, will host our Futures Centre, which will be a global centre of excellence on the application of horizon-scanning, scenarios, and other futures techniques to the challenge of sustainability.

! To ensure a robust funding model. We succeeded in diversifying our funding model, with major grant funding from the Esmée Fairbairn Trust, the Ashden Trust, the Shell Foundation, the Sainsbury Trust and the Rockefeller Foundation. Although we fell short of our unrestricted reserves target we did add £117k to reserves during the year in a difficult economic climate. However, the challenge of resourcing and delivering more complex system-level projects on a global scale has stretched both our business model and our staff. Staff satisfaction fell in 2013 as staff reported more overwork and more stress than normal.

A sample of our projects and outcomes is outlined below.

Food

! Our stranded assets report on nutrition in the food manufacturing sector was published in July. It explores how some assets in the food sector risks becoming stranded or losing significant value, as consumer demand for products with better health and nutrition outcomes and governments demand for better health outcomes continues to grow.

! Tea 2030 is a collaborative futures project designed to show what a sustainable value chain for tea could look like. Participating partners include the Dutch Government Sustainable Trade Initiative, the Ethical Tea Partnership, FairTrade, Finlays, Rainforest Alliance, Tata Global Beverages, Typhoo and Unilever. We are now entering the third phase of the project, working with the steering group to establish specific areas for collaboration, with plans to launch the Tea 2030 report and collaboration platforms early next year.

! We began a project with Value Added Africa to explore opportunities for initiatives that benefit smallholder producers in Africa. The first phase of the project aims to develop a greater understanding of the attitudes of retail/brand groups to African-made products.

! In the US, with our partner Unilever, we researched barriers to food waste diversion. We have explored a variety of ways in which these barriers can be overcome and specific actions that Unilever could take.

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Energy

! We launched a three-year Farm Power project, supported by the Ashden Trust, the Esmee Fairbairn Foundation, National Grid, PepsiCo, Waitrose and Coop Energy. The vision is for all farms in the UK to be generating their own energy by 2020, becoming a vital part of the local, secure, resilient and sustainable rural energy infrastructure. In 2013 we began quantifying the contribution that integrated rural renewable energy could make to the UK’s energy system.

! Our Community Energy Campaign engaged a broad cross-section of civic-society. It was able to influence DECC’s Community Energy Strategy; and presented the Secretary of State with a petition of 60,000 signatures in support of community energy. We ran a Community Energy Fortnight in August and September to spread the word about how to make community energy a reality. In 2014, we will add a focus on how community energy can alleviate fuel poverty.

! Loughborough University commissioned us to conduct a project on The Future of Home Energy, which will design a process to generate consumer energy use data in future scenarios and use this data to stimulate the innovation of new low-energy consumer products and services.

! Our Living North Sea Initiative, in partnership with IMSA, explored options for decommissioning of oilrigs in the North Sea. We have secured funding from the Calouste Gulbenkian Foundation towards a parallel project, North Sea Futures, the first phase of which will be a geographical and marine-specific application of Forum’s Sustainable Economy Framework.

Sustainable Business

Our work on sustainable business continued to concentrate on helping leaders go further:

! We established a ‘Net Positive’ group in partnership with WWF and The Climate Group, with initial members BT, Capgemini, Coca-Cola Enterprises, Crown Estates, Ikea, Kingfisher and SKF. The purpose of the group is to define the characteristics of a Net Positive approach and create a wider movement for the next wave of corporate sustainability.

! Our Sustainable Business Models Group, including all of our Pioneer Partners, held bimonthly clinics to focus on specific step-change challenges and collaboration opportunities for decoupling growth from environmental impact.

! We completed a strategy project with AIMIA, the global leader in loyalty management and owner of ‘Nectar’, who have agreed to “make it easy and rewarding for consumers to take actions for the common good”. They estimate they can ‘nudge’ at least 200 million actions each year.

! We also delivered a daylong innovation workshop with 90 marketing, brand and supply chain executives from Kimberly Clark. The workshop focused on ways in which KC can develop innovative products based on the short and long-term needs of European consumers.

! We delivered our first project in India, working with Hindustan Unilever Foundation to create system change in water catchment management.

System Innovation Lab

Our System Innovation Lab shared best practice approaches to changing systems for sustainability:

! September saw the launch of an independent Sustainable Shipping Initiative, the culmination of 18 months’ work with leaders in the shipping industry to explore sustainability issues in shipping. The outcomes of this project included a report detailing a new financial model addressing split incentives, evidence from initial pilots in closed loop materials management, and business cases and guidance tools for fitting step-change technology on ships. The project is now self-governing and plans to focus on developing and sharing leading practice in shipping companies, innovation spaces to address barriers to game-changing technology, and further work on aspects such as ship breaking and ecosystem services and wider communication.

! We launched Scaling Up Impact, funded by the Shell Foundation, which aims to provide tools and approaches for scaling-up market-based interventions to create system change.

! We also launched our ‘Horizons’ work - an interactive digital version of our Sustainable Economy Framework (horizons.innovateuk.org). We worked closely with the Technology Strategy Board to develop an open source tool, which aims to engage business stakeholders to see sustainability as a future business opportunity and source of innovation.

! We coordinated The Rockefeller Foundation’s Informal City Dialogues project, which helped stakeholders in six cities worldwide develop scenarios of what life in their city could be like in 2040, leading to specific innovation proposals eligible for further funding by the Foundation. The project concluded in September with a conference at the Foundation's Bellagio Center, which identified the next steps for the Informal City Dialogues in the project cities and beyond.

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! Our Futurescapes project led to the development of the Internet of Things Academy. IOTA is a platform that will inspire people to use the power of the internet of things to tackle global sustainability challenges. IOTA aims to allow everyone – from complete beginners to experts - to create and share inspiring projects. We are partnering with Superflux and Technology Will Save Us to build support for development of the virtual platform.

Our Masters in Leadership for Sustainable Development programme completed another successful year, and launched twelve new scholars into careers as sustainable development leaders. The programme represents an innovative approach to leadership development and also supports our network through scholar placements and through helping to build the careers of sustainability leaders.

Communications and Networks

We launched #theBIGshift, a call to businesses and others to embrace the best of systems thinking to create transformational change, with a conference featuring Paul Polman of Unilever, sponsored by the Wall Street Journal.

Jonathon Porritt’s vision of the future, The World We Made (Alex McKay’s Story from 2050), launched a vision of how the world could be in 2050 – exciting, aspirational, high-tech, fair and full of hope – if we promote innovation and positive solutions to today’s sustainability debates. The book generated world-wide media coverage and we expect it to lead to an ongoing conversation about the role of innovation in solving the challenge of sustainability.

Our network grew by 25% to 126 partners and members. Our members enjoyed a varied programme of 35 different conferences, webinars and seminars across three continents. For example, Big Ideas Small Planet, co-organised with design agency SeymourPowell presented inspiring visions of how innovation can deliver a sustainable future and demonstrated the business opportunities associated with sustainable innovation. A sampling of other events includes:

! Experiential “show and share” site visits to M&S (Chester) and Boots (Nottingham) ! Two informal “Energy drinks” evenings ! A webinar on the business case for step change ! A collaborative event on the circular economy with The Great Recovery (a project run by the Royal

Society of Arts) ! A Wired 4 Change event in London, focusing on the power of digital to disrupt business as usual ! A US dinner with Jonathon Porritt for Chief Sustainability Officers ! A breakfast in New York with special guest Bob Willard, aimed at sustainability practitioners ! A breakfast event for foundations on the future of philanthropy, in collaboration with the Environmental

Grantmakers’ Association of New York and hosted by the Rockefeller Foundation ! An event at the Design Museum to share with the network how we use future concepts to guide

innovation.

Our Green Futures magazine continued in both the hardcopy and online versions, plus Twitter, Facebook, Kindle subscription, and the Green Futures Inspire smartphone app. In addition to the four regular issues, special publications in 2013 included:

! Futuristas, on the key role women play in the drive towards sustainability ! India: Innovation Nation. In January we launched our business development effort in India with this

publication at the Delhi Sustainable Development Summit ! The Cotton Conundrum, on the future potential for sustainable cotton, in collaboration with Cotton

Incorporated, Better Cotton Initiative and John Lewis.

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Other achievements and changes

! We launched two new independent organisations as spin-offs from our projects. The Sustainable Shipping Initiative is now an independent entity governed by a coalition of members from the shipping industry. Our Big Green Week, which ran a second successful sustainability festival in Bristol, is now an independent Community Interest Company supported by the Bristol City Council.

! We assessed our Sustainable Finance programme and decided that we did not have sufficient staffing or leverage to bring about significant change in the sector. We will no longer focus on the finance sector as such, but we will continue to use finance as a mechanism for change in the food and energy sectors.

! Forum runs an active internship programme to give practical experience to people seeking to enter the field of sustainable development. We provide our interns with induction, training, expenses, challenging work assignments, feedback, references and help with their career search. During 2013, over 40 people undertook internships or work placements at Forum, providing us with research, communications and operational support. We would like to thank them for their contribution to Forum.

Staff achievements

Forum’s staff is extraordinary. We have 70 employees, spread across three continents, about a third of whom work part time so that they can cover family and care responsibilities as well as working for Forum and living a balanced, sustainable life. In addition, they give their time and energy to a wide range of other activities.

In 2013, our staff sat on the boards of 15 charities and social enterprises such as Nishtha UK Trust, Emerson College, ActionAid UK, EIRIS, the British Institute of Human Rights and the sustainable design research studio Engage by Design. We helped to run eight more organisations or events, from local eco-committees and beer festivals to grant-giving funds and international research programmes; and we volunteered our time as tree planters, master gardeners, charity accounts examiners, Age UK befrienders, sustainability teachers, mentors and literacy coaches. We raised money by running, cycling, swimming across lakes, organising dance marathons and playing music. We produced two books, two poems, an art exhibit, a new magazine and an organ recital. We played in a community band, a chamber music group, three choirs and four orchestras. We learned Polish, Turkish, Brazilian Portuguese and Italian, and finished an MSc in Business and the Environment.

We do these things because they are fun, because we love learning new things and because they make the world a better place, but they also enrich the experiences and skills that we can bring to bear on tackling challenging sustainability issues with our partners and project sponsors.

3.2 Activities and public benefit during 2013 The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the aims and objectives of the Forum and planning its future activities. The Trustees confirm that they have complied with the duty in Section 4 of the Charities Act 2006 to have due regard to the public benefit guidance published by the Charity Commission in determining how planned activities will contribute to the aims and objectives that have been set. The Forum aims to benefit the public by providing information about the path to a sustainable future. We achieve this aim by enabling organisations in the private and public sectors to learn how to develop products and services that are environmentally sound, economically viable and socially just, and then communicating what we learn about sustainability in practice to the wider public.

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The immediate users of our services are our partner organisations in the public and private sectors who work with us to learn how to develop more sustainable products and services. Smaller organisations can become involved by becoming Network Members rather than full Partners. In special cases, where we believe that a non-profit or small entrepreneurial organisation can both learn from and contribute to our network, we discount or waive the network fee.

We make the outcomes and the learning from all our work available to the wider public through events, webinars, publications, our magazine Green Futures and our website. The fees paid by our partners and sponsors help us to make our recommendations, findings, futures scenarios, Green Futures supplements and other publications available on our website at no charge.

Our Pioneer Partners help us to deliver public benefit by contributing £5000 each to two of our flagship programmes: the Masters in Leadership for Sustainable Development and our magazine Green Futures. Their support enables us to offer annual subscriptions to Green Futures to individuals for only £24. Forum Partners also provide work placement opportunities for our Masters’ scholars, and their financial contributions enable us to offer the Masters programme at an affordable cost. In 2013, with support from the Leadership Trust, course participants undertook leadership training at the Leadership Trust’s headquarters in Herefordshire. The graduates of this programme most often go on to work in the private and public sectors, in turn helping other organisations deliver the benefits of sustainable development to society.

We promote sustainable development to the public through events and social media and by gaining coverage of our projects in mainstream media in the UK and abroad. Finally, the wider public also benefits through the availability of more sustainable products and services that we help our partners to develop, which enable citizens or consumers to choose a better lifestyle while reducing their environmental footprint.

3.3 Plans for 2014 We intend to continue to deliver our 2011-2016 strategy through 2014, but with some changes of emphasis. We have four overall external priorities:

Take forward our flagship SI projects in food and energy.

In food, by the end of 2014 we plan to:

! Deliver at least two major projects aligned to our diagnosis of the food system, one of which will be global in nature

! Continue to develop our current Tea 2030 project ! Widen our membership to include more stakeholders from the food value chain (for example, producer

organisations, innovators, SMEs, NGOs, food service sector) and more partners/members from the global south (particularly SE Asia and India).

In energy, by the end of 2014 we plan to:

! Build on our current project successes (such as Community Energy, Farm Power), deepening impact and ensuring that we are delivering on a scale commensurate with the challenge

! Develop at least one international system innovation project in energy.

In addition, we plan to explore a joint food/energy project focusing on land use and industrial biotechnology.

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Experiment with projects that explore how to scale up impact.

Our experiments allow us to deepen our understanding of system innovation and the system change cycle. In 2014 we particularly want to focus on experiments that exemplify how digital technologies, finance and behaviour can enable change, and work that defines how to take innovative / niche products and practices to scale.

Develop our work with businesses as system innovators, and work to identify and address barriers to scaling sustainable business.

We work with our leading partners on pioneering practice in sustainability, so that they can act as exemplars for others. During 2014 we particularly want to develop the capacity of our leading partners to use system innovation as part of their business strategy. We will also continue to work with our partners to develop business models that allow growth without increasing environmental impact.

Continue to grow our international impact globally, particularly through showcasing our system innovation, futures and sustainable business expertise, with 40% of our work delivered outside the UK.

! Our US office plans to grow from 8.5 to 12 staff in 2014. We plan to build our US partner network and deliver at least one US-focused futures project

! We are currently setting up operations in India, where we aim to work on: o Enabling Indian business to innovate for sustainable development and to take sustainable

solutions to scale o India’s potential for “leapfrogging” to a sustainable future o Building an active network of at least twelve Indian businesses that are driving

progressive business globally and scaling up sustainable solutions, supported by an office of at least five people

! Our Singapore office will host a global centre of excellence in futures research and thinking that helps companies, governments and industries globally improve their long-term thinking and create sustainability opportunities. We will also build a regional network of partners and members focused on delivering leadership that combines commercial success with social and environmental benefit

! Globally we will drive forward our #theBIGshift communications campaign to demonstrate how significant change is possible if we work to solve complex sustainability challenges together. We hope to increase our network to over 150 organisations worldwide.

In order to deliver these external priorities, we will focus internally on:

! Improving our knowledge management and resourcing to support our transition from a UK-centric organisation to a global one

! Examining our business model, looking at how to build in more flexibility ! A vision for the evolution of Green Futures, our Network and the Masters’ programme, with the

Singapore Futures Centre at its heart.

We plan to add roughly £100k to our unrestricted reserves to enable us to support our ongoing international operations.

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3.4 Environmental report “A well-managed and efficiently deployed system was evidenced through regular management reviews, internal audits and well maintained documentation and data.” – BSI ISO14001 external audit 5th September 2013.

As part of our internal Environmental Management System (EMS) we monitor energy, water, waste, recycling, business travel and commuting, supplier environmental performance, purchasing and our communications and events. Despite 12 years of ISO14001 certification for our EMS, there are still many complex environmental challenges to solve within our own business. Improvements in environmental performance are becoming much more difficult as quick wins are eliminated and the more challenging issues remain.

Our major challenge internally is managing and minimising our carbon footprint by ensuring that we only fly when necessary and we adhere to our travel policy. All our flight data is recorded and analysed to ensure that staff are compliant with current travel policies. Our carbon from flights in 2013 was 253 tonnes (258 tonnes for 2012).

Total carbon emissions for 2013 were 299 tonnes, a reduction of 18 tonnes or 5.7% on 2012 but the trend over the last five years has been broadly upwards as we internationalise due to the large increase in overseas flights. All our carbon emissions are offset through Climate Care.

Energy usage has reduced for both gas and electricity for our offices (though we currently only have access to reliable data for our UK offices) due to tighter monitoring and measurement procedures as well as the adoption of new IT and office technologies. Our total waste to landfill has also fallen.

We have been managing our suppliers closely as supplier environmental performance is important to us. Over the past two years we have re-audited and re-graded our internal supply chain, taking the opportunity to encourage suppliers to introduce further positive environmental change within their own internal operations.

3.5 Financial review and results for the year 2013 2013 continued to be a challenging year economically and we are pleased to have been able to add to our general reserves.

Although total income in the statutory accounts is 6% down on 2012, this is primarily due to an accounting adjustment in the 2012 accounts in order to recognise all income and expenditure in respect of restricted grant income from a specific Rockefeller Foundation grant as all the cash was received in 2012.

Allowing for this adjustment, underlying income has increased by 7% through our work overseas (with 38% of our total income being derived from overseas sources) and through our work on large collaborative system changing projects.

The Forum’s total income was £4,483,380 (2012: £4,790,587) and total expenditure for the year amounted to £4,842,564 (2012: £4,477,407), resulting in net outgoing resources of £359,184 (2012: net incoming resources of £313,180).

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This outgoing was due to an intended drawdown on restricted reserves, whereas there was an unrestricted operating surplus of £41,304 for the year after a significant investment of £97,128 in our India operations.

In addition to the unrestricted operating surplus we also received payments of £90k against a debt previously provided for, resulting in a further contribution to unrestricted reserves. This has resulted in unrestricted reserves of £726k at the end of 2013. Although this is short of our minimum reserves target it is still a £117k contribution to unrestricted reserves during the year.

Total income of £4,483,380 was derived from the following activities and regions:

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3.6 Reserves policy During 2013 the Trustees revised the reserves policy to take account of the need to underwrite our international operations. The previous policy required unrestricted reserves of £800k to £1,250k to provide adequate working capital, to protect against income loss or unexpected expenditure, and to allow the Forum to pursue new opportunities. The revised policy increases the proposed level of reserves to a minimum of £980k for 2014, increasing thereafter in line with overall increase in income. At the end of 2013, the Forum had £726k in unrestricted reserves. The 2014 budget aims to produce a further £112k unrestricted surplus (after some intended investment in overseas expansion) in order to move us towards our minimum unrestricted reserves target.

3.7 Structure, governance and management The Forum for the Future is a registered educational charity and a company limited by guarantee and not having share capital, incorporated on 17 August 1994 and registered as a charity on 31 August 1994. Our governing documents are the Memorandum and Articles of Association. Our charitable objects are:

! To advance the education of the public in economic and social studies as they relate to individuals, communities, society at large and the planet as a whole, with special reference to their interrelationship with ecology, the natural world, health, technology, agriculture, sustainable development, philosophy and psychology

! To promote sustainable development for the benefit of the public by: o The preservation, conservation and protection of the environment and the prudent use of

natural resources o The relief of poverty and the improvement of the conditions of life in socially and

economically disadvantaged communities o The promotion of sustainable means of achieving economic growth and regeneration.

The governing body of Forum is the Board of Trustees, which meets four times a year. The trustees are responsible for ensuring that the Forum abides by its charitable aims, works within the law, and delivers its mission effectively. They oversee the policies and objectives of the Forum and ensure that the work of the organisation is monitored and evaluated effectively.

Trustees give their time voluntarily and receive no benefits from the charity other than the two trustees who are Founding Directors, Jonathon Porritt and Sara Parkin. These trustees are paid for their services as employees of Forum, with the consent of the Charity Commission. The remaining trustees are unpaid volunteers. The trustees serve for a three-year term, after which they must be re-elected. Any expenses reclaimed from the charity by the trustees are set out in note 4 to the accounts.

The Board is led by the Chair of Trustees, Keith Clarke. One trustee is elected as the Honorary Treasurer. The Honorary Treasurer leads the Audit and Assurance Committee (AAC), which meets four times a year to ensure the adequacy of Forum’s internal controls and financial management, and to consider and evaluate the work of the external auditors. The AAC membership also includes two other trustees and an independent adviser.

New trustees are appointed by the Board following open advertisement and approaches to other individuals. The Board maintains a list of required skills and competencies, and seeks to ensure that recruitment fills any skill gaps left by retiring Trustees. New trustees receive a comprehensive induction pack, which provides an introduction to Forum and a review of the duties of trustees as defined by the Charity Commission.

Page 17


The day-to-day running of Forum is delegated to the CEO, assisted by the Senior Management Team. In 2012 our CEO Peter Madden moved on after nearly eight years with Forum to become CEO of Future Cities Catapult. After an open recruitment his former deputy, Dr Sally Uren, was appointed as CEO of the Forum. Under Sally’s leadership the Senior Management Team has been expanded and restructured, and now comprises:

• Stephanie Draper, Deputy CEO and Director of the System Innovation Programme • David Bent, Director of Sustainable Business • Giles Bristow, Director of Programmes (currently food and energy) • Helen Clarkson, Director of US Office • James Goodman, Director of Futures • Rosalyn Parker, Director of Finance and Operations • Patti Whaley, Director of Resources (retiring early 2014)

We also intend to recruit a new Director of Communications and Networks, and a Director of Organisational Development and Knowledge Management.

During the year, Forum closed its Bristol office and opened an office in Singapore. Our US office, which has grown to eight people, continues to operate as a project of the Tides Foundation. It is not a part of Forum’s legal structure but continues to work very closely with the Forum.

The two Founder Directors, Sara Parkin and Jonathon Porritt, continue to provide advice and support to Forum.

3.8 Risk assessment The risk assessment policy, which is reviewed and approved annually by the Board, continued to give the Trustees reasonable, but not absolute, assurance that key risks are adequately managed. The policy requires that key risks are identified and ranked each year and that each identified risk is assigned to a named risk owner who constructs a risk mitigation strategy and monitors the progress of that strategy. The AAC takes the lead on reviewing the risk register; twice each year the Trustees review the risks being monitored and receive reports on the implementation of the risk mitigation strategy.

Page 18


4 Statement of directors’ responsibilities The Trustees (who are also directors of Forum for the Future for the purposes of company law) are responsible for preparing the Trustees' 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 of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

! Select suitable accounting policies and then apply them consistently ! Observe the methods and principles in the Charities SORP ! Make judgements and accounting estimates that are reasonable and prudent ! State whether applicable UK Accounting Standards have been followed, subject to any material

departures disclosed and explained in the financial statements and ! Prepare the financial statements on the going concern basis unless it is inappropriate to presume that

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

In so far as the Trustees are aware:

! There is no relevant audit information of which the charitable company’s auditors are unaware ! The Trustees have taken all steps that they ought to have taken to make themselves aware of any

relevant audit information and to establish that the auditors are 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.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees as at 31 December 2013 was 9 (2012: 11). The Trustees are members of the charity, but this entitles them only to voting rights. The Trustees have no beneficial interest in the charity.

Auditors

Our auditor – Sayer Vincent LLP – has expressed its willingness to continue in office, and a resolution proposing its re-appointment will be put to the forthcoming annual general meeting.

Approved by the Board on _________________________________ and signed on their behalf by:

Sean Fox, Honorary Treasurer

Page 19


5 Independent auditor’s report to the members of Forum for the Future We have audited the financial statements of Forum for the Future for the year ended 31 December 2013, which comprise Statement of Financial Activities, Balance Sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' 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.

5.1 Respective responsibilities of trustees and auditors As explained more fully in the Statement of Trustees’ responsibilities set out in the report of the Board of Trustees, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

5.2 Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charitable company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. In addition, we read all the financial and non-financial information in the report of the trustees to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

5.3 Opinion on financial statements In our opinion the financial statements:

! give a true and fair view of the state of the charitable company’s affairs as at 31 December 2013 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

! have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

! have been prepared in accordance with the requirements of the Companies Act 2006.

Page 20


5.4 Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the report of the Board of Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements.

5.5 Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

! adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or

! the 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;

Jonathon Orchard, Senior Statutory Auditor

for and on behalf of Sayer Vincent LLP

Sayer Vincent, 8 Angel Gate, City Road, LONDON EC1V 2SJ

Date:

Page 21


6 Financial statements

S ta tement'of'F inanc ia l'Ac tivities ' (incorporating+an+Income+and+Expenditure+Account)

2013 2012Unrestric ted Restric ted Tota l Total

Note £ £ £ £Incoming 'res ources

Voluntary7income 224,183 50,000 274,183 79,545Investment7income 683 C 683 1,724

2

Delivery 3,198,304 824,768 4,023,072 4,444,666C ommunications 185,279 C 185,279 261,843Other 163 C 163 2,809

3,383,746 824,768 4,208,514 4,709,318

Tota l' incoming 'res ources 3,608,612 874,768 4,483,380 4,790,587

Res ources 'expended 3C osts+of+generating+funds:

Fundraising7and7development 17,835 C 17,835 23,519

C haritable+ac tivitiesDelivery 3,278,346 1,275,256 4,553,602 4,137,711C ommunications 257,629 C 257,629 303,081

Governance+costs 13,498 C 13,498 13,096

Tota l'res ources 'expended 3,567,308 1,275,256 4,842,564 4,477,407

77 7 74 41,304 (400,488) (359,184) 313,180

G ross7transfers7between7funds 75,855 (75,855) H C

Net'movement'in'funds 117,159 (476,343) (359,184) 313,180

Reconc ilia tion'of'funds

Total7funds7brought7forward 608,800 554,329 1,163,129 849,949

Tota l'funds 'ca rried'forward 725,959 77,986 803,945 1,163,129

F or'the'year'ended'31'December'2013

All of the above results are derived from continuing activities. There were no other recognised gains orlosses other than those stated above. Movements in funds are disc losed in Note 12 to the financ ialstatements.

Incoming+resources+from+generated+funds

Incoming+resources+from+charitable+ac tivities

Net'(outgoing )/incoming 'res ources 'b efore'

trans fers

Page 22


Ba lance's heet'

2013 2012

Note £ £ £

F ixed'as s etsTangible0fixed0assets 7 52,624 74,718

Investments 8 2 2

52,626 74,720

C urrent'as s etsDebtors 9 1,203,255 1,087,771

S hort0term0deposits 5,482 85,291

C ash0at0bank0and0in0hand 562,505 723,056

1,771,242 1,896,118

L iab ilitiesC reditors:0amounts0due0within0one0year 10 1,019,923 807,709

Net'current'as s ets 751,319 1,088,409

Net'as s ets 11 803,945 1,163,129

The'funds 'of'the'charity 12

Unrestric ted0funds

Designated0funds 14,627 11,495

General0funds 711,332 597,305

Restric ted0funds

In0surplus 77,986 554,329

In0defic it E O

Tota l'charity'funds 803,945 1,163,129

Honorary0Treasurer

As 'a t'31'December'2013

Approved0by0the0direc tors0on0290April020140and0signed0on0their0behalf0by

S ean0Fox

Page 23


C as hflow)s ta tement

REC ONC IL IAT ION)OF )NET )INC OMING/(OUTGOING))RES OURC ES )TO 2013 2012NET )C AS H )(OUTF L OW)/INF L OW)FROM)OP ERATING )AC T IVIT IES £ £

Net)(outgoing )/incoming )res ources )for)the)year (359,184) 313,180Deprec iation 42,328 58,122Interest5receivable (683) (1,724)(Increase)5 in5debtors (115,484) (29,823)Increase/(Decrease)5in5c reditors 212,214 (24,348)

Net)cas h)(outflow)/inflow)from)operating )ac tivities (220,809) 315,407

C AS H )F L OW)S TATEMENT

Net5cash5(outflow)/inflow5from5operating5ac tivities (220,809) 315,407Interest5received 683 1,724C apital5expenditure (20,234) (45,015)

(Decreas e)/Inc reas e)in)cas h (240,360) 272,116

ANAL Y S IS )OF )C HANGES )IN)C AS H )BAL ANC ES

(Decrease)/Increase5in5cash5during5the5year5 (240,360) 272,116

C ash5balances5at5the5beginning5of5the5year 808,347 536,231

C ash5balances5at5the5end5of5the5year 567,987 808,347

NOTES )TO)C AS H )F L OW)S TATEMENT

Returns )on)inves tment)and)s ervic ing )of)finance

Interest5received 683 1,724

C apita l)expenditure

Payments5to5acquire5tangible5fixed5assets 20,462 46,317Disposal5proceeds5of5tangible5fixed5assets (228) (1,302)

20,234 45,015

F or)the)year)ended)31)December)2013

Page 24


Notes &to&the&financ ia l&s ta tements

1. Accounting &polic ies

a ) Bas is &of&accounting

b ) Income

c) Expenditure

d) Tang ib le&fixed&as s ets

Improvements+to+leasehold+properties+ 20% +on+cost+Furniture+and+fittings+ 20% +on+cost+C omputer+and+office+equipment+ 20% +to+33.33% +on+cost

The financ ial statements have been prepared under the historical cost convention and inaccordance with applicable accounting standards and the C ompanies Act 2006. They follow therecommendations in the S tatement of R ecommended Practice, Accounting and Reporting byC harities+(S ORP+2005).

Voluntary donations and gifts are credited to the statement of financ ial ac tivities in the year inwhich they are received. G ifts are inc luded at retail cost or valued by the donors or thedirectors+on+the+basis+of+their+worth+to+the+charity.

Infrastructure and support costs are apportioned across the Forum cost centres in line with theratio of staff costs of the cost centre in question to total staff costs, exc luding the staff costs ofthose support cost centres that are inc luded in the allocation. The type of costs that areallocated in this way inc lude all office costs (rent, rates, asset hire, utilities, stationery, telephone,insurance,+deprec iation+etc )+and+support+cost+centres+(ie+finance,+IT,+HR +and+office+services).

Tangible+fixed+assets+are+stated+at+cost.

No item of equipment is capitalised where the purchase price is less than £500. A ll fixed assetsmore+than+6+years+old+are+treated+as+having+been+disposed+of+ in+the+financ ial+statements.

Governance costs inc lude expenditure and the cost of compliance with constitutional andstatutory+requirements.

Fundraising and development costs comprise expenditure incurred by the charity in induc ingothers+to+make+contributions+to+it+and+in+enhanc ing+its+public + image+and+inc ludes+direc t+staff+costs+and+an+allocation+of+ infrastructure+and+support+costs.

Deprec iation is provided using the straightSline method at the following annual rates in order towrite+off+each+asset+over+its+estimated+useful+ life.

F or&the&year&ended&31&December&2013

With the exception of voluntary income, income is c redited to the statement of financ ial ac tivtieson a receivable basis unless it is due under contractual arrangement when it is recognised asincoming+resources+to+the+extent+that+the+Forum+has+provided+goods+and/or+services.

Direc t charitable expenditure comprises direc t expenses incurred on the defined charitablepurposes of the charity and inc ludes direc t staff costs attributable to the activity and anallocation+of+ infrastructure+and+support+costs.

Page 25


e) P ens ions

f) F und,accounting

g ) Operating ,leas es

2. Incoming ,res ources ,from,charitab le,ac tivities2013 2012

(a) Unrestric ted Tota l Total£ £ £ £

C entral5government 150,363 = 150,363 130,167Local5and5regional5government = = D 5,000C orporate5 3,044,951 = 3,044,951 3,183,107Higher5education5 7,825 = 7,825 23,058Not=for=profit5organisations5 23,438 6,209 29,647 65,684Trusts5and5foundations5 (5,971) 673,725 667,754 874,211Publishing5 157,770 = 157,770 179,672Individuals = 10,493 10,493Other5income5 5,370 134,341 139,711 248,419

Total5 3,383,746 824,768 4,208,514 4,709,318

2013 2012(b) Unrestric ted Tota l TotalDelivery5Teams: £ £ £ £55 5Food 525,172 = 525,172 571,83555 5Energy 499,088 = 499,088 505,60555 5Finance = = D 61,75755 5Network 428,243 = 428,243 399,54455 5S ustainable5B usiness5Models 674,946 = 674,946 968,37655 5S ystems5Innovation5&5Experiments 465,915 = 465,915 466,35255 5S outh5East5Asia 93,153 93,1535 5 5S ustainable5S hipping5Phase53 424,077 = 424,077 283,53555 5 India5 21,415 = 21,415 25,00055 5J onathon5Porritt5books 66,295 66,2955 5 5R ockefeller5Foundation5grants = 488,225 488,225 838,07955 5Other5restric ted5projec ts = 336,543 336,543 324,583

3,198,304 824,768 4,023,072 4,444,666C ommunications 185,279 = 185,279 261,843Other 163 = 163 2,809

3,383,746 824,768 4,208,514 4,709,318

Restric ted

Restric ted

The charity operates a group personal pension plan which is a direc t contribution scheme.C ontributions are charged to the S OFA in the periods to which they relate. The charity has noliability5under5the5scheme5other5than5for5the5payment5of5those5contributions.

The unrestric ted funds comprise those monies which may be used towards meeting thecharitable5objectives5of5the5charity5at5the5disc retion5of5the5direc tors.

The restric ted funds are monies raised for, and their use restric ted to, a spec ific purpose, ordonations5subject5to5donor=imposed5conditions.

The designated funds are set aside at the disc retion of the trustees and relate to the charity’spolicy5on5sustainability.5The5S ustainability5Fund5is5to5cover5additional5expenditure5to5avoid5or5offset5the5negative5environmental5 impact5of5the5charity’s5operations.

R entals payable under operating leases, where substantially all the risks and rewards ofownership5remain5with5the5lessor,5are5charged5to5the5S OFA5in5the5period5to5which5they5relate.

Page 26


Page 27


4. Net&incoming /(outgoing )&res ources &for&the&year 2013 2012

£ £This) is)stated)after)charging:Deprec iation 42,328 58,122Operating)lease)rentals:

property 68,061 74,180equipment 12,594 10,495

Auditors')remuneration:audit 10,750 9,250other)services B F

Direc tors')remuneration 109,770 114,888Directors')reimbursed)expenses 1,481 2,171

2013 2012 2013 2012£ £ £ £

Alison)B all B F 894 1,213J ohn)Harman) B F 189 674J ulia)K ing B F B 15S ara)Parkin) 21,065 26,183 59 76J onathon)Porritt 88,705 88,705 339 193

2013 2012£ £

J onathon)Porritt 5,322 5,322

5. S ta ff&cos ts &and&numbers2013 2012

£ £S taff)costs)during)the)year)were)as)follows:S alaries)and)wages 2,314,293 2,316,361S oc ial)security)costs 244,949 248,680Pension)contributions 250,938 235,880

2,810,180 2,800,921

Total)emoluments)paid)to)staff)were: 2,565,231 2,552,241

Directors')salaries)and)reimbursed)expenses)incurred)during)the)year)were:

Direc tors' reimbursed expenses represents the reimbursement of travel and subsistence costs to4)(2012:)5))members)relating)to)governance.

S a la riesExpens es &and&travel&

cos ts &

Contributions)to)the)defined)contribution)pension)scheme)paid)during)the)year)were:

P ens ion&C ontrib utions

J onathon Porritt and S ara Parkin are paid for their services as employees of Forum for the Futurewith)the)consent)of)the)C harity)C ommission.

Page 28


Page 29


8. Inves tments

9. Deb tors 2013 2012

£ £

Programme,income,receivable, 990,730 926,152

Other,debtors,and,prepayments, 212,525 161,619

1,203,255 1,087,771

10. C reditors :;amounts ;due;within;one;year 2013 2012

£ £

Trade,c reditors 84,243 79,116

Other,c reditors,and,accruals, 252,672 158,268

Deferred,income 683,008 570,325

1,019,923 807,709

11. Ana lys is ;of;net;as s ets ;b etween;fundsRestric ted,

funds

General,

funds

Tota l;funds

£ £ £ £

Tangible,fixed,assets H H 52,624 52,624Investments H H 2 2Net,current,assets 77,986 14,627 658,706 751,319

Net;as s ets ;a t;the;end;of;the;year 77,986 14,627 711,332 803,945

Investments,relate,to,two,£1,shares,in,GF,L imited,set,up,as,a,trading,company,by,the,charity,but,

which,has,never,traded,and,remains,dormant.

Another,C ommunity,Interest,C ompany,,B ig,G reen,Week,C IC ,was,formed,on,29,J anuary,2013,to,

manage,the,B ristol,Festival.

Designated,

funds

Forum for the Future established a C ommunity Interest C ompany in November 2009 called Refit

West C IC . This company is limited by guarantee, has never traded and was struck off on 28 May

2013.

Page 30


12. Movements ,in,fundsAt#the#

start#of#the#year Transfers

At,the,end,of,the,year

£ £ £ £ £

Res tric ted,funds :Delivery:Masters#Programme 17,136 185,334 (174,484) = 27,986

= = 78,984 (78,984) ?= (3,129) = 3,129 ?

537,193 32,680 (569,873) = ?= 15,000 (15,000) = ?= 458,674 (458,674) = ?= 35,000 (35,000) = ?

Esmee#Fairbairn = 80,000 (80,000) = ?Future#Pin = 71,209 (21,209) = 50,000

Tota l,res tric ted,funds 554,329 874,768 (1,275,256) (75,855) 77,986

Unres tric ted,funds :Designated/funds:S ustainability#Fund# 11,495 = (2,647) 5,779 14,627

Total/designated/funds 11,495 = (2,647) 5,779 14,627

Genera l,funds 597,305 3,608,612 (3,564,661) 70,076 711,332

608,800 3,608,612 (3,567,308) 75,855 725,959

1,163,129 4,483,380 (4,842,564) = 803,945

P urpos es ,of,res tric ted,funds

P urpos es ,of,des ignated,funds

Trans fers

Rockefeller#IC DThe#Ashden#Trust

Tota l,unres tric ted,funds

The sustainability fund is to cover additional expenditure to avoid or offset the negativeenvironmental# impact#of#the#Forum#for#the#Future's#operations.

Tota l,funds

The restric ted funds are monies donated to Forum for the Future for spec ific purposes only.Their purposes inc lude running a Masters Programme in Leadership for S ustainable Development;developing B ristol as a sustainable c ity; advanc ing the soc ial impact bond innovation (S IB S );generating innovative ideas and tools to help poor or vulnerable people in urban environmentsthrough#the#Informal#C ity#Dialogues#projec t#(IC D);#and#the#Farm#as#Power#S tation#projec t.

R ockefeller#S canningC alouste#Gulbenkian

The#R ockefeller#S IB S #transfer# is#to#cover#the#repayment#of#an#underspend#on#this#projec t.

The transfer to unrestric ted funds for the B ristol projec t is due to a payment against a debtalready provided against in this restric ted fund. The provision resulted in a restric ted defic it andso was originally covered by a transfer from unrestric ted funds, therefore the payment againstthis#debt#is#now#being#transfered#back#into#unrestric ted#funds.#

Incoming#resources

Rockefeller#S IB SB ristol#Projec t

Outgoing#resources

Page 31


Page 32


7 Trustees, officers and advisors 7.1 Directors

Trustees, who are also directors under company law, who served during 2013 and up to the date of this report were as follows:

Alison Ball

Jack Boyer (resigned 25 April 2013)

Sasha Blackmore (resigned 24 October 2013)

Keith Clarke -- Chair of Trustees

Sean Fox – Honorary Treasurer and Chairman of the Audit and Assurance Committee

Sir John Harman

Andy Hobsbawn

Professor Dame Julia King (resigned 11 December 2013)

Kate Levick (appointed 11 December 2013)

Sara Parkin – Founder Director

Jonathon Porritt – Founder Director

Sarah Butler-Sloss

7.2 Independent audit committee member Sharon Martin

7.3 Company secretary Patti Whaley (resigned 24 October 2013)

Rosalyn Parker (appointed 24 October 2013)

7.4 Senior Management Team Peter Madden, Chief Executive (resigned 31 May 2013)

Sally Uren, Chief Executive (appointed 1 July 2013, previously Deputy Chief Executive)

Stephanie Draper, Deputy Chief Executive

David Bent, Director, Sustainable Business

Giles Bristow, Director, Programmes

Helen Clarkson, Director, US

James Goodman, Director, Futures

Rosalyn Parker, Director, Finance and Operations

Patti Whaley, Director, Resources

Page 33


7.5 Registered office Overseas House 19-23 Ironmonger Row London EC1V 3QN

7.6 Company Registration Number 2959712 (England and Wales)

7.7 Charity Registration Number 1040519

7.8 Web address www.forumforthefuture.org

7.9 Auditors Sayer Vincent LLP Chartered accountants and registered auditors 8 Angel Gate City Road London EC1V 2SJ

7.10 Bankers Co-operative Bank Business Admin Centre Olympic House 6 Olympic Court Montford Street Salford M5 2QP

HSBC Commercial Banking City of London Commercial Centre 1st Floor 60 Queen Victoria Street London EC4N 4TR

7.11 Solicitors Bates Wells and Braithwaite 2-6 Cannon Street London EC4M 6YH

Page 34


1.1 Affiliates Andrew Acland

Marshall Clemens

Ian Dera

Christiane Dorion

Adrian Henriques

George Martin

Imogen Martineau

David Mason

Paul Miller

Chris Priest

Huw Robson

Penny Walker

1.2 Grant funders and major donors Aquaculture

Fulton Management

Gale Group

Global Canopy Programme

JJ Charitable Trust

Laing Foundation

Leadership Trust

Leonard Trust

Mamot

Nova Scotia Community

Novo Nordisk

Peak Experiences

Riversimple

Salesforce Foundation

Scottish Renewables

SeymourPowell

Sindicatum Climate

Solar Century

Streetclub

Whitely

38 Degrees

Page 35


8 2013 Partners

Pioneer partners and US founder partners British Sky Broadcasting

The British United Provident Association

The Crown Estate

Ecover Belgium NV

Ingersoll Rand

Kingfisher

Marks & Spencer

Target Corporation

Telefonica UK

TUI Travel

Unilever

1.3 Network partners 3M United Kingdom

Aimia

AkzoNobel NV

Alliance Boots

Aviva Investors

Barclays Bank

Bettys and Taylors of Harrogate

Carillion

Certis Europe

The China Navigation Company

Colep

The Co-operative Group

Crest Nicholson

Delhaize Group

Diageo

EDF Energy

Ella's Kitchen

Firmenich SA

FirstGroup

Interface

James Finlay

John Lewis

Johnson Matthey

Jordans & Ryvita Company

Kyocera Document Solutions

Levi Strauss & Co

L'Oreal USA

Mondelez International

News Corp UK & Ireland

Nike

Panasonic UK

PepsiCo UK & Ireland

PHS Group

Pret A Manger

R. Twining & Company

Rail Safety & Standards Board

Rexam

RSA Insurance Group

RWE npower

Sainsbury's Supermarkets

SC Johnson & Son

Shell Foundation

Shell International Exploration and Production B.V

Skanska UK

Sony Europe

Swire Oilfield Services

Swire Pacific Offshore Operations

Tesco

Thomson Reuters Corporation

Twinings

United Biscuits UK

UCC Coffee

Volac International

Willmott Dixon

Page 36


1.4 Network members Armor SA

Associated British Foods

Azaria International

Bank of America Merrill Lynch

BASF

Benchmark Software

Blue and Green Communications

British Telecommunications

Burberry

C&A

Cafédirect

Capgemini UK

The Carbon Neutral Company

Cargill

Chi Group

City of London

The Coca Cola Company

The Converging World

Cultura Technologies

Delphis Eco

E. I. DuPont de Nemours and Company

eBay Europe

Ecology Building Society

Energy Saving Trust

EnergyDeck

Fare Share

FoodTrade

The GEO Group

GlaxoSmithKline Services

Green Ink

GrowUp

GSH Group

Hammerson

Heineken UK

Hong Kong and Shanghai Hotels

IGD

Innovia Films

Jaguar Land Rover

Jas Bowman & Sons

Kimberly-Clark Europe

Lafarge Tarmac

Leeds City Council

Ogilvy Earth UK

Plexus Cotton

Quintain Estates and Development

Reckitt Benckiser

Recyclebank

TalkTalk Telecom

Tata Global Beverages

Technology Strategy Board

Technology Will Save Us

Tetra Pak

Twin and Twin Trading

University College London

Veja UK

Vento Ludens

Virgin Unite

Wessex Water Services

Whitworths

Page 37


1.5 Project funders ABN Amro

Alliance Trust

B&Q

BASF

BP International

BP Shipping

Bunge

Calouste Gulbenkian Foundation

Carnival

Centre for Sustainable Energy

Cisco Systems Limited

Department of Energy & Climate Change

DNV

DSME

Energy UK

Environment Agency Wales

Esmée Fairbairn

ESRC

Foreign & Commonwealth Office

Gearbulk

General Mills

Generation Investment Management

Highways Agency

IDH

Igloo Regeneration (General Partner)

IMSA Amsterdam

Innocent Drinks

InstaGroup

Lloyd's Register

Maersk

McDonalds

Namura

Novelis

PlasticsEurope

Rio Tinto Marine

Rockefeller Foundation

S&D Coffee

SAI Platform

Sime Darby

SKF (U.K.)

Tsakos Energy Navigation

U-Ming Marine Transport Corporation

United Utilities

Value Added in Africa UK

Wartsila

Which?

World Travel & Tourism Council

Page 38


1.6 Green Futures partners AMEC

Arjowiggins Graphic

Ashden

ClimateCare

Ecover

Food and Drink Federation

Marine Stewardship Council

Pureprint Group

Skanska

Triodos Bank NV

WWF UK

1.7 Green Futures special edition sponsors Futuristas

British Council

M&S

India: Innovation Nation

Hindustan Unilever

Mlinda

Interface

The Cotton Conundrum

Better Cotton Initiative

Cotton Incorporated

IDH

John Lewis

Solidaridad

Page 39


Forum for the Future is an independent non-profit working globally with business, government and other organisations to solve complex

sustainability challenges.


Documents

annual report 2013 - Forum for the · Page 3 Contents 1 Chair’s introduction to the 2013 annual report 4 2 Chief Executive’s introduction to the 2013 annual report 6 3 Report of