Carbon Trust Annual Report 2012-2013

The Carbon Trust Annual Report 2012/2013
Accelerating the move

to a sustainable, low
carbon economy
The Carbon Trust
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Locations around the world where the Carbon Trust is working
Contents
Who we are 01
In summary
Key achievements 02
Overview
Chairmans statement 04
Chief executives statement 06
Advice
Advice 08
Footprinting
Footprinting 12
Technology
Technology 14
Scotland and Wales
Scotland and Wales 18
Governance
Environment report 20
Directors report 21
Corporate governance report 24
Remuneration report 28
Financial review 30
Accounts
Independent auditors report to the members of the Carbon Trust 36
Consolidated income statement 37
Consolidated balance sheet 38
Consolidated statement of changes in total funds 39
Consolidated cash ow statement 40
Notes to the nancial statements 41
Company balance sheet 66
Notes to the company nancial statements 67
Glossary 76
Measuring carbon emissions
In industrialised countries 80% of greenhouse gas emissions are carbon dioxide (CO
2
), released into
the atmosphere mostly from the burning of fossil fuels. Other greenhouse gases produced by industrial
and agricultural processes include: methane (CH
4
); nitrous oxide (N
2
O); hydrouorocarbons (HFCs);
peruorocarbons (PFCs) and sulphur hexauoride (SF
6
).
In order to produce a uniform measurement of greenhouse gas emissions, greenhouse gases other than
CO
2
are converted into units of carbon dioxide equivalent (CO
2
e), and this is what we use in our report.
Carbon is a shorthand unit derived from CO
2
and CO
2
e used by governments in international climate
change negotiations. 3.66 tonnes of CO
2
or CO
2
e is equivalent to one tonne of carbon.
For the avoidance of doubt, MtCO
2
means million tonnes of CO
2
.
Further information about how we measure our impact is disclosed on our web site: www.carbontrust.com
PfR
Partnerships for Renewables is a renewable energy developer
focusing primarily on public sector land. It is a joint venture
with InfraRed Environmental Infrastructure (InfraRed)
(formerly HSBC Environmental Infrastructure) and OP Trust
Infrastructure Europe II Inc (OPT).
Photovoltaic
A technology whereby energy from the suns rays is converted
into an electrical current.
Pyrolysis Challenge
A grant funded programme launched in 2008 with the aim of
upgrading of pyrolysis oil for use as a low carbon biofuels.
RD&D
Research Development and Demonstration.
Regional Growth Fund
The Regional Growth Fund (RGF) is a 2.6 billion fund
operating across England from 2011 to 2016. It supports
projects and programmes that lever private sector investment to
create economic growth and sustainable employment.
Salix Finance
Salix Finance Limited, an independent company previously
funded by the Carbon Trust to work with the public sector
to reduce carbon emissions through investment in energy
efciency.
SMEs
Small and medium sized companies, as dened by the European
Union as organisations having no more than 250 employees,
an annual turnover of no more than 50 million, or an annual
balance sheet not exceeding 43 million.
TCM
Technology Centre Mongstad.
Accounts
1 The Carbon Trust Annual Report and Accounts 201213
Who we are
The Carbon Trusts mission is to accelerate the move
to a sustainable, low carbon economy.
We are an independent, expert partner of leading
organisations around the world, helping them contribute
to and benet from a more sustainable future.
Our work spans three areas:
Advice
We advise businesses, governments and the public sector
on their opportunities in a sustainable, low carbon world.
Footprinting
We measure and certify the environmental footprint of
organisations, products and services.
Technology
We help develop and deploy low carbon technologies and
solutions, from energy efciency to renewable power.
Find out more at www.carbontrust.com
In summary
Key achievements
Advice
We advised 40 large organisations
in nine countries on how to improve
their sustainability and resource
efciency. Clients included
Coca-Cola Company, BT Group,
Bord Bia, Nationwide and
Anglo American.
We expanded our international
advice work by securing funding
for ve projects in Brazil,
Mexico and Malaysia on energy
efciency nance, energy security
and innovation in low carbon
technologies.
Our public sector team launched
a new consultancy service to
help local authorities and other
public bodies to develop district
heating and local energy networks.
Clients include Crawley Borough
Council, Coventry University and
Bristol City Council.
Footprinting
We awarded the Carbon Trust
Standard to 178 organisations
around the world.
The total carbon footprint certied
at the end of 2012/13 reached
220MtCO
2
e, equivalent to 40% of
annual UK emissions and a twofold
increase on last year.
We launched a world rst the
Carbon Trust Water Standard for
companies that can demonstrate
year on year reductions in water use.
Technology
We secured 18 million of funding
on marine energy from the Scottish
Government.
Working with Forewind, Universal
Foundation and Fred. Olsen a
novel offshore wind foundation
technology was installed on the
Dogger Bank in the North Sea.
We expanded our commercial
innovation activity into carbon
capture and storage (CCS)
through a project with Gassnova.
Our joint venture, Partnerships for
Renewables (PfR), opened its rst
wind farm in the UK.
Overall impact
The estimated overall impact of
our activities since our inception
has been a carbon saving of
53.5MtCO
2
e and cost savings
of 5 billion.
We are a trusted, impartial partner of leading organisations around
the world, helping them to benet from sustainable business
opportunities. We provide a range of expert business services covering
advice, footprinting and technology to help businesses, governments
and the public sector take action on sustainability and climate change.
In summary
Petronas Towers in Kuala Lumpur, Malaysia.
The Carbon Trust is developing a carbon
footprint labelling scheme for the Malaysian
construction and building materials industry
Overview
Chairmans statement
Green or protable must
companies choose?
Business has an essential role to play
in defending the earth, water and
air that sustain us. Getting onto a
sustainable footing is good for all
of us and its good for business too.
I want to assert three beliefs. First,
I believe that industrialisation and
high consumption pose grave risks
to the environment and therefore
to biodiversity and to economies.
Second, I believe that achieving
sustainability is not a problem of
technology or economics. The
technologies for getting the job done
are available at an affordable cost. Its
a question of individual and political
will. Third, I believe that prots and
markets are essential tools for putting
our modern industrial society onto a
sustainable footing.
The third belief may seem
contradictory. Prots and markets
are portrayed as the environmental
villains. I see prots and markets as
the means to an end. We can choose
to put ourselves onto a sustainable
footing by creating the right prot
and market incentives. Prots and
markets stimulate innovation, move
resources to where they are needed
and get things done efciently. We
wont succeed if we try to ght market
forces. We have to make markets force
us in the direction of sustainability.
Ill go further and say that companies
are essential to the solution. Society
has placed much of its innovative and
productive capacity with companies.
A major portion of the resources that
society needs to create sustainability
exists within companies.
For sustainability I dont believe there
is a mop-up and muddle-through
option. If we leave it until the damage
is clearly evident, it will be too late. So
we have to force ourselves to act now.
Good companies are good at being
proactive. Many of our customers
are those proactive companies who
value our independence and expertise
gathered over the past 13 years.
But to get it right requires
collaboration. Companies, society
and governments need a shared vision
and a commitment to work together.
Thats where a company like the
Carbon Trust can help. In this report
there are many examples of our work.
They include advice to governments
around the world; helping companies
collaborate to reduce the cost of key
technologies such as offshore wind
and carbon capture and storage; and
promoting best practice in conserving
energy, carbon and water.
I would like to thank the employees of
the Carbon Trust for their continuing
commitment to our customers and to
our mission. The Carbon Trust does
not pay dividends. Any and all prots
are reinvested in the business.
I hope you nd this report both useful
and enjoyable to read.
James Smith,
Chairman, The Carbon Trust
We wont succeed if we try to ght market
forces. We have to make markets force us
in the direction of sustainability.
Load out of Universal Foundations novel offshore
wind foundation before sailing to the Dogger Bank
photo by CPHV courtesy of Forewind
Overview
Chief executives statement
At the Carbon Trust we believe that
business should be at the heart of
tackling the deep and interrelated
environmental challenges that the
world faces. Business has the human
and nancial capital and the skills,
drive and discipline to invest at scale
and with urgency in sustainable, low
carbon infrastructure, products and
services.
But business cannot act without the
support of governments, consumers
and investors. And to offer this
support, all of these parties must
share the belief that a sustainable,
low carbon economy is technically
feasible, is affordable and will provide
economic and social benets. Our
work at the Carbon Trust is all about
proving, not simply asserting, that
this is the case.
In everything we do, we aim to
mobilise the innovation, talent and
productive capacities of companies
around the world to accelerate the
move to a sustainable, low carbon
economy. The global market for
low carbon infrastructure, goods
and services is growing and this
sector will drive signicant business
investment, creating many new jobs.
The Carbon Trust has transformed
itself since its formation in 2001.
Over the past two years we have
reduced our dependence on UK
government grant funding and,
as government programmes have
successfully concluded, our turnover
has reduced. For us now to build on
our experience and maximise our
impact, we must be a sustainable,
independent organisation.
Our nancial strength derives from
our cash balances, our portfolio of
technology investments and our
interests in joint ventures. In line with
our strategy to build a platform for
growth, we have drawn from our cash
reserves to fund operating losses as
we invest in further development of
our services. Our pipeline is strong
and over the past year we have
further diversied our customer and
funding base.
In particular, we are working
internationally more than ever before.
This is exciting as it gives us the
opportunity to signicantly increase
our impact in terms of our mission.
Sustainability and climate change are
global issues and we believe that it is
right for the Carbon Trust to leverage
its experience, impartiality and rigour
both in and beyond the UK.
There is one key difference to most other businesses.
Being truly mission driven, any prots from our
commercial activities are reinvested into activities that
further our mission. This is very important to us all at
the Carbon Trust.
Overview
There is one key difference to
most other businesses. Being truly
mission driven, any prots from our
commercial activities are reinvested
into activities that further our
mission. This is very important to us
all at the Carbon Trust.
Today we are a group of leading
experts, operating in key geographies
and working with our customers and
partners to:
advise businesses, governments
and the public sector on their
low carbon and sustainability
opportunities
measure and certify the
environmental footprint of
organisations, products and
services
develop and deploy low carbon
technologies and solutions, from
energy efciency to renewable
power.
With our unique blend of experience
and skills, the ongoing support of
our customers and partners and
the commitment of our staff and
board, we will continue to help our
customers and partners around
the world make business sense of
sustainability and climate change.
I would like to thank them all for
making this possible.
Tom Delay
Chief Executive, The Carbon Trust
The Carbon Trust opened the worlds rst carbon footprint gallery in central London
Advice
Advice
Business advice
We advised 40 large organisations
in nine countries in 2012/13 on how
to improve their sustainability and
resource efciency, either for their
own operations or along their broader
value chain. Clients came from a
range of sectors and included Coca-
Cola Company, BT Group, Bord Bia,
Nationwide and Anglo American.
We have helped our clients mitigate
business risk and deliver nancial
benets.
This year saw our market broaden,
with an increase in overseas activity,
including substantial new projects in
countries such as China, Malaysia
and South Africa. The market has also
seen increased public/private sector
collaborations, with much of the work
being partly or fully-funded by public
institutions working in collaboration
with private business.
Sustainability inside
Our work is generally centred at one
of three points along the value chain:
the supply chain, where companies
are looking to reduce their exposure
to climate change and resource
scarcity risks, as well as to remove
unnecessary upstream costs
own operations, where we are
helping businesses to become
leaders in their sector and,
ultimately, to create new products,
services and revenue streams
predicated on sustainability
customers and markets, where we
are working with organisations
to help them achieve both brand
recognition and real revenues for
understanding and acting upon the
positive and negative impacts that
their products and services, in use,
can have on the environment.
All of this work reects the move in
business responses to climate change
from simple, operational cost-driven
measures to longer-term broad-based
strategic investments and schemes. An
example of this includes our work to
support the development of a carbon
footprint labelling scheme for the
Malaysian construction and building
materials industry, with the aim to
pilot it with 50 companies, a three-
year European Union programme
that began in January 2013.
Public sector advice
During 2012/13, we provided our
expert advice services to the public
sector in England on a paid-for basis
for the rst time. Throughout the
year we have responded to demand
from public bodies wishing to be
seen as leaders on carbon and energy
cost reduction. Some key highlights
during the year:
we provided carbon management
support to 24 large public bodies,
helping them to successfully
complete our Public Sector Carbon
Management Programme and to
accelerate project implementation
we successfully launched a new
behaviour change programme,
linked to our enormously successful
Carbon Trust Empower online
employee engagement and training
tool. There are now 30 organisations
engaged with the Carbon Trusts low
carbon behaviour advice services
we worked with Crawley Borough
Council and Coventry University
under our new decentralised
energy support service, and are
currently working with the city
councils in Bristol, Glasgow
and Portsmouth on projects
with very large potential carbon
savings, alongside cost savings to
businesses and council tax payers.
This service helps public bodies
to determine the best technical
solutions, project governance and
nance options for district heating
networks and decentralised energy
schemes, and also assists with
intelligent procurement and market
engagement
we are working hard to help our
public sector customers save money
and carbon both are vital to our
mission. We estimate that the total
impact of our work in England
during 2012/13 is identied savings
of over 800ktCO
2
e over project
lifetimes, and over 150 million.
Over the 11 years that we have
been working with public bodies
in England, the total carbon and
cost savings identied stands at
94MtCO
2
e lifetime and 2.8
billion, with over 17.5MtCO
2
e
lifetime and 700 million net saved
to date a signicant contribution
to decarbonising the UK public
sector, as well as a signicant saving
in energy costs to UK taxpayers.
As world-leading independent experts on carbon
reduction, we advise businesses, governments and
organisations around the world on their opportunities
in a sustainable, low carbon world.
Advice
Advice
Case study Coca-Cola
Coca-Cola teamed up with the Carbon Trust to establish
how consumers can be empowered to cut their personal
environmental impact.
What Coca-Cola wanted to do: establish how to harness
the power of the Coca-Cola brand to inform, educate and
empower individual consumers to reduce their personal
carbon footprint.
What Coca-Cola did: teamed up with the Carbon Trust to
develop a robust concept and methodology for a Personal
Carbon Allowance and identify the ingredients for success.
What Coca-Cola accomplished: developed a robust
methodology, identied the opportunities and challenges
of this approach, and created the evidence needed for the
Coca-Cola Company to move forward with condence
and credibility, recruit other brand leaders to support this
ambitious new drive towards global sustainability and develop
a coherent communications strategy.
The Coca-Cola brand has the
power to inspire and inuence
consumers from London to Laos.
Galvanising them into proactive,
positive action in terms of their
contribution to climate change is
an incredibly complex task.
Working with the Carbon Trust has
given us the ability to tackle this
issue with condence, conviction
and credibility in the eyes of policy-
makers, other brand leaders and
consumers alike.
Ulrike Sapiro, Environmental Sustainability
Director for the Coca-Cola Company.
Advice
Advice
Policy and markets advice
In 2012/13 we expanded our client
base both at home and abroad,
undertaking 11 major policy and
markets studies with eight clients
in ve different countries, including
some of the worlds largest emerging
economies such as Brazil, Mexico
and South Africa. Our work has
included policy development and
prioritisation, programme design,
and impact assessment across 12
technology and market areas.
In the UK, we have built on our
strong relationship with Department
of Energy and Climate Change
(DECC), while also developing new
relationships with the Welsh and
Scottish Governments.
We have continued to lead on the
UKs prioritisation of public sector
low carbon technology innovation
funding to maximise cost reduction
and economic value creation. We
have delivered nine Technology
Innovation Needs Assessments
(TINA) working in collaboration
with our fellow members of the Low
Carbon Innovation Coordination
Group (LCICG), which is the
coordination vehicle for the UKs
major and delivery bodies in the
area of low carbon innovation. These
TINAs cover the critical low carbon
technologies for the UK across
renewables, nuclear, carbon capture
and storage (CCS), energy efciency,
energy networks and storage.
Early ndings informed the design
of DECCs 160 million four year
programme and this year directed
its CCS, non-domestic building,
and electricity storage research and
development (R&D) calls. Examples
of our work for other LCICG
members include informing the
Technology Strategy Boards (TSB)
decisions on the Offshore Renewable
Energy Catapult and its three-year
Energy Generation and Supply
strategy.
We also advised DECCs
International Climate Change team
on how they could prioritise low
carbon technologies for support from
the UK Governments 2.9 billion
International Climate Fund (ICF).
In Scotland, we carried out a study
to examine the abatement potential
across Scotlands public sector
estate, identifying potential carbon
savings of 1.2MtCO
2
e (39% of its
current footprint), which would be
accompanied by cost savings
of 260 million. Meanwhile, in
Wales, our TINA analysis provided a
framework for identifying innovation
priority areas to accelerate low carbon
growth and secure a leading role for
Wales by capturing the economic
benets locally.
We have continued to expand our
activities internationally, fostering
relationships with governments in
Brazil, Mexico and South Africa.
In Brazil, we helped the
Governments Energy Research
Agency (EPE), to develop a process
to appraise the likely impact of its
potential policy options, and evaluate
the actual impact of policies that had
already been implemented. We also
helped the EPE to develop a strategic
policy approach to incentivising the
deployment of distributed generation
technologies. The outputs were
presented to high level government
stakeholders who will integrate it
into their policy making process.
The quality and impact of our work
in Brazil has already seen us win
follow-on work with the Foreign and
Commonwealth Ofce (FCO) Brazil
to undertake three new projects
in 2013/14, providing innovation
support for the Ministry of Science,
Technology and Innovation,
providing energy efciency nancing
advice for BNDES, Brazils national
development bank, and advising the
equivalent of Brazils National Grid,
ONS, on managing peak demand
during major games, for example, the
Rio Olympics in 2016.
In Mexico, we designed an energy
efciency programme for small and
medium-sized enterprises (SMEs) to
enable them to access vital nance,
advice and support to deploy energy
efcient technologies that could result
in savings of 5.8MtCO
2
e and 875
million in energy costs. Similarly,
we helped the Department for
International Development (DFID) to
prioritise its low carbon development
programme budget in South Africa
and to develop a business case for
funding for an energy efciency
programme. This programme could
unlock 3.6MtCO
2
e and 240 million
in energy cost savings.
In addition to our work in emerging
economies, we have also inuenced
low carbon policy in the developing
world; for example, by designing
a programme to accelerate
the deployment of small scale
concentrated solar power in various
developing countries, with a focus on
industrial heat and rural on/off-grid
applications. We will continue our
work in lower income countries in
2013/14 by working with the World
Bank to identify potential market
opportunities for SMEs in clean
technology industries in developing
countries, including estimates on the
size of various markets and which
types of SMEs are likely to be able to
exploit these opportunities.
Advice
Case study Mexico Energy Efciency
Programme
Mexico is rmly committed to nding a path to
development in a climate compatible way. SMEs are
essential to this effort generating 52% of Gross Domestic
Product. By deploying energy efcient technologies, SMEs
could increase competitiveness and create jobs, while
reducing emissions signicantly. Important barriers are
blocking this, in particular SMEs cannot access affordable
nance and lack the expertise to identify and implement
opportunities. At the request of the Mexican Presidents
ofce, we designed a programme to enhance SME energy
efciency, based on the Carbon Trusts experience of
running similar programmes in the UK for more than
10 years. With support from the FCO, we have developed
a large scale, high impact intervention to: 1) provide
concessional loans to SMEs to invest in energy efciency
improvements and demonstrate the viability of SME energy
efciency loan nance to commercial banks, transforming
this market; and 2) support an integrated programme of
awareness raising and energy saving advice to accelerate the
deployment of energy efciency equipment. The programme
we have designed could be delivered at a cost of 20
million with 65 million in loans over ve years, reaching
150,000 SMEs to unlock 5.8MtCO
2
e and 875 million
in energy cost savings over the lifetime of measures taken.
The intervention is backed by relevant government agencies
and has the support of business stakeholders. We have also
generated interest in it among potential donors.
The project and policy work we have
done in partnership with the Carbon Trust
in Mexico has substantially contributed
to reach the Embassys objectives of
supporting Mexicos own aspirations
of nding a low carbon development
pathway whilst boosting economic growth.
We have found in Carbon Trust a reliable
and experienced partner.
UK Embassy Mexico City.
Advice
12
Footprinting
Footprint certication
In 2012/13 we awarded the Carbon
Trust Standard to 178 organisations
around the world and last year we
continued to certify the footprints
of new products, bringing the total
number of product footprints certied
to over 28,000.
Carbon Trust Standard
The Carbon Trust Standard
measures the resource footprint of
an organisation and its reduction.
Since its launch in 2008, 986 Carbon
Trust Standard certicates have
been awarded around the world.
In 2012/13 178 organisations were
awarded the Carbon Trust Standard.
The total footprint certied to date
by the Carbon Trust Standard at the
end of 2012/13 stood at 220MtCO
2
e.
This is equivalent to 40% of annual
UK emissions and a twofold increase
on last years total, reecting the
increased uptake of the Carbon
Trust Standards global organisation
footprint certication. Our recent
work in Korea now represents
37% of the total emissions certied
to date. Customers achieving the
Carbon Trust Standard in the last
year include; Telefonica O2, DECC,
Guardian News and Media, Wm.
Morrison Supermarkets and the Go-
Ahead Group.
Within the Carbon Trust Standard
certication scheme, the Carbon
Trust Water Standard was launched in
February 2013.
Carbon Reduction Label
Our product carbon footprint
certication scheme helps companies
to verify, communicate and reduce the
lifecycle emissions of their products
and services. Companies that measure
their emissions and commit to
reducing them can use the Carbon
Reduction Label to communicate
their achievements. Moreover, by
looking at the opportunities to reduce
carbon emissions and costs across
the supply chain and working with
suppliers, a company can realise
nancial benets that would be out of
reach on their own.
Footprint measurement
We provided consultancy on
footprint measurement to over 30
organisations, including Bord Bia and
BT Group, increasingly to provide
them with input for strategic decision
making and also, in many cases, to
provide impact information to be
certied and published. In addition,
33 companies in 17 countries have
purchased or renewed licences for our
Footprint Expert toolkit to enable
these calculations to be made more
swiftly and accurately. We are also in a
partnership with CRedit360, a leading
sustainability software provider, and
have developed ground breaking
footprinting software with them that is
being widely marketed.
We measure and certify the environmental
footprint of organisations, products and services.
Footprinting
Case study Launch of the Carbon Trust Water Standard
The Carbon Trust Water Standard, launched in February 2013, is the
worlds rst international award for water usage reduction to catalyse
business action on measuring, managing and reducing water use. The
new certication was developed by the Carbon Trust working closely
with Sainsburys, Coca-Cola Enterprises, Sunlight Services Group and
Branston Limited, who became the rst four organisations to be awarded
the Carbon Trust Water Standard.
Reducing water use is an essential part of the move to a sustainable, low
carbon economy. Not only is demand for water increasing as populations
and economies grow, but moving and distributing water consumes huge
amounts of energy.
The Carbon Trusts research among large companies in the UK, USA,
China, South Korea and Brazil found that only one in seven of those
businesses had set a target for water reduction, or publicly reported on
water performance. Of those businesses that see water as a priority risk,
two-thirds listed water availability as an issue. Additionally, 86% saw the
likelihood of legislation on the horizon, as governments around the world
assess the vulnerability of water resources and review their policies on
water scarcity.
Paul Crewe, Head of Sustainability, Engineering, Energy and Environment
at Sainsburys, welcomed the introduction of the Carbon Trust Water
Standard, We are delighted to be one of the rst companies to be
recognised by the Carbon Trust Water Standard for reducing our water
consumption, particularly at this crucial time of increasing natural resource
scarcity.
The Carbon Trust Annual Report and Accounts 201213
Advice
Footprinting
Water is fundamental to our business and our
communities. To be a sustainability leader, we
recognize that we must fully understand our impact
beyond carbon. By measuring and managing our
water impact within our operations as well as across
our value chain, we can address longer-term water
scarcity issues. This certication recognizes the
progress we have made towards becoming a water-
sustainable operation.
John Brock, CEO of Coca-Cola Enterprises, recognised the role of the
Carbon Trust Water Standard in addressing water scarcity.
Technology
Technology
Innovation
The Carbon Trust is at the forefront
of low carbon innovation in the UK.
In 2012/13 we undertook 18 projects
and major programmes for 13 clients,
furthering our expertise across a range
of low carbon technology areas. Over
the past year we have worked with
governments, corporates and start-ups
alike to deliver innovative solutions
that will accelerate the deployment
of low carbon technologies,
stimulating enterprise, job creation,
and signicant investment and cost
savings in the process.
In 2012/13 we have delivered
11.4 million of government funding,
leveraging 12.6 million from the
private sector, and have assessed 168
businesses, working with 60 of these.
We have maintained a strong
relationship with DECC, extending
our multimillion pound innovation
programmes in offshore wind,
polymer fuel cells, and pyrolysis,
while continuing to enable some of
the UKs most exciting innovators
to commercialise their technologies
through the Entrepreneurs Fast Track
scheme.
The Offshore Wind Accelerator
(OWA) is on track to deliver at least
a 10% reduction to the levelised
cost of offshore wind, with 2012/13
highlights including the installation
of the rst Universal Foundation
Bucket Foundation at Forewinds
Dogger Bank and an order to build
six Fjellstrand access vessels; two
innovative technologies that could
deliver signicant cost savings
to the industry. Further exciting
developments were the addition of
Vattenfall as the ninth member of
the OWA consortium, increasing the
OWAs market share to 77% (36GW)
of UK licensed capacity, and an
agreement reached with 6 developers
to set up a multi million pound fund
to incentivise the demonstration of
three novel foundations with turbines.
In addition to the OWA, we have
continued to expand our portfolio
of offshore renewable activity
through various programmes,
including the Marine Renewables
Commercialisation Fund (MRCF),
an 18 million programme with the
Scottish Government supporting
the deployment of pre-commercial
wave and tidal energy arrays, with
a focus on proving the durability of
leading technologies and making
them contract-ready. We have also
played a central role in the Offshore
Renewable Energy Catapult, which
aims to identify and address the
barriers that inhibit the development
and application of innovation in the
offshore energy sector, allowing new
technologies to move from early
stage towards commercial use. We
are currently running two of the
four pilots or rst projects, and look
forward to a continued collaborative
partnership with this emerging
initiative.
The Polymer Fuel Cells Challenge
(PFCC) has fostered continued
innovation in automotive fuel cells
through its ongoing investments,
mainly in three organisations, most of
which have now generated signicant
automotive OEM interest based on
technical progress in the last year.
Meanwhile, Future Blends,
the company formed as the
commercialisation vehicle for
Pyrolysis Challenge innovations,
has made major strides this year.
A novel pyrolysis oil upgrading
technique and equipment were
developed, a new state-of-the-art
laboratory was commissioned and
pyrolysis production capabilities
were scaled up by an order of
magnitude that bodes well for the
programme going forward.
We are also delivering the Regional
Growth Funds Industrial Energy
Efciency Accelerator, working
collaboratively with industry
sectors to deliver energy savings in
manufacturing processes, engaging
key stakeholders in each sector to
identify innovations in equipment,
processes and product strategy.
To date we have worked with 6
businesses and identied savings of
148ktCO
2
e by 2020.
We continued to strengthen our
corporate client partnerships in
2012/13 working with GE and an
oil and gas major. As part of this
work, we have assessed and prioritised
innovation opportunities within ten
clean technology sectors. This has
led to a number of exciting project
opportunities that bring small and
large companies together on a
common commercialisation journey.
Drawing on our extensive clean
technology innovation experience,
networks and independent brand, we
leverage the complementary strengths
of start-ups and corporates to deliver
value from these partnerships.
We help develop and deploy low carbon
technologies and solutions, from energy
efciency to renewable power.
Technology
2012/13 also marked our rst
engagement with a client on carbon
capture and storage technology,
working closely with Technology
Centre Mongstad (TCM), owned
by the Norwegian Government,
Statoil, Shell and Sasol, to develop a
strategy for its chilled ammonia unit
and increase third party funding at its
carbon dioxide capture technologies
testing facility.
TCM wanted to maximise its impact
and ensure its capture testing facilities
met the need of the CCS community.
Carbon Trust engaged with more
than 25 CCS stakeholders on four
continents, across four industries.
We provided insight and analysis to
TCM into different sectors CCS
priorities and recommended how
best to structure its value proposition
and develop suitable engagement
strategies.
Investments bridging the
funding gap
This year, we continued to invest
in technology companies and joint
ventures with the potential to create
economic value and contribute to
a sustainable, low carbon economy.
We are currently focused on making
follow-on investments to help the
companies already in our portfolio
to succeed. Through our participation
and sector knowledge we have
sought to leverage further private
sector investment, helping to address
a critical lack of capital for early
stage businesses and low carbon
infrastructure.
In total, we invested 6.2 million this
year in low carbon companies and
joint ventures, and we leveraged 60
million of private sector co-investment.
Of that total, we invested 6 million
in eight low carbon technology
companies, leveraging 20 million
from the private sector. Notably, our
investments included 4.9 million in
technology commercialisation efforts
through the PFCC and the Pyrolysis
Challenge.
We also invested 0.2 million and
leveraged 39 million into joint
ventures focused on overcoming
barriers to the deployment of mature,
low carbon technologies.
Implementation and nance
We have continued to develop our
services to support businesses and
groups of organisations to reduce
their energy costs through improved
energy management practices and
the implementation of cost-effective
energy efciency technologies.
These services include the provision
of energy saving advice, support in
the sourcing of high quality solutions
and access to competitive project
nancing.
We have worked with customers
across a wide range of business
sectors to deliver best-in-class
energy efcient solutions for lighting
and heating, ventilation and air
conditioning systems. We have also
established a Supplier Accreditation
Scheme, that has attracted high
quality, market-leading equipment
suppliers and installers to become
accredited to the scheme.
Following its launch in 2011,
our Energy Efciency Financing
Scheme, delivered in partnership
with Siemens Financial Services,
has continued to nance a wide
range of energy efciency and
renewable energy projects. Uniquely,
this specialist, dedicated scheme
also provides customers with a
professional independent Energy
Saving Assessment report from
Carbon Trust Implementation
Services.
Construction of Partnerships for Renewables rst wind farm at HMP Stamford Hill in Kent
Case study Offshore Wind Accelerator foundation for success
The OWA is the Carbon Trusts agship collaborative RD&D programme. Set up
in 2008, the OWA is a joint industry project, involving 9 offshore wind developers
with 77% (36GW) of the UKs licensed capacity, that aims to reduce the cost of
offshore wind by 10% by 2015. Cost reduction is achieved through innovation.
Technology challenges are identied and prioritised by the OWA members based
on the likely savings and the potential for the OWA to inuence the outcomes.
Projects are carried out to address these challenges, often using international
competitions to inspire innovation and identify the best new ideas. The most
promising concepts are developed, de-risked and commercialised as the OWA
works closely with the supply chain throughout the process.
The OWA model brings together the Carbon Trusts expertise in delivering
innovation and convening industry consortiums with the industrial partners
technical knowledge and resources. The OWA is two-thirds funded by industry
and one-third funded by DECC.
The Carbon Trust believes that mass deployment of offshore wind is critical to
bridge the UKs energy gap and to meet the UKs targets for security of supply,
carbon reduction and renewable energy. To meet the EUs 15% renewable energy
target for the UK, over 18GW of offshore wind capacity is likely to be required by
2020, a nine-fold increase over the 2GW installed to date. Delivering this level of
deployment will require cost reduction and the introduction of new technologies to
allow wind farms to be installed further from shore and in deeper water where the
wind resource is better. The OWA was set up to drive down costs and accelerate
deployment.
Developing new turbine foundation designs for 30-60m water depths that are
cheaper to fabricate and install is one of the OWAs 5 key areas of work. Last year
the OWA delivered its second foundation demonstration project. The Bucket
Foundation a novel foundation design for offshore wind turbines was
successfully installed at Forewinds round 3 site at Dogger Bank,125 kilometres
off the UKs east coast. It represents the rst stage of construction at the worlds
largest offshore wind farm. The Bucket Foundation supports a meteorological mast
that will provide essential weather information. The foundation was developed by
Danish rm, Universal Foundation a Fred. Olsen-related company.
Technology
Phil de Villiers, head of the OWA programme said:
This is the rst deployment of the Universal
Foundation Suction Bucket in UK waters and were
excited about what this means for offshore wind
development. The foundations represent 30% of the
total cost of a wind farm. Reducing the capital and
installation costs could really make an impact on the
viability of future projects.
Technology
The Universal Foundation Suction Bucket
design can reduce costs compared to
conventional monopile foundations due
to faster installation time and removing
the need for offshore piling technology
Scotland
and Wales
Scotland and Wales
Carbon Trust Scotland
For over ten years, the Carbon
Trust Scotland has provided expert
advice and support to business
and the public sector in Scotland
for energy efciency and on-site
renewable energy generation. We
have also delivered a range of wider
collaborative support towards
Scotlands ongoing ambition to
transition to a sustainable, low carbon
economy. 2012/13 was the nal year
of our grant funding from the Scottish
Government to support these services
in Scotland. However, we still have
extensive involvement in Scotland and
look forward to further supporting
the business and public sectors in
Scotland and in undertaking our
various government programmes.
Supporting Scotlands public sector
We have, to date, supported 150
Scottish public bodies through our
strategic Public Sector Carbon
Management Programme. In 2012/13
we continued to advise Scotlands
local authorities, NHS boards, other
public sector and higher and further
education institutions, helping them
to progress their carbon management
plans, including to focus on specic
energy and cost saving projects within
those plans.
This year has included support for
staff awareness and behaviour change,
along with a pilot programme to
strategically engage senior leaders
in the carbon management activities
in their organisations. We also
delivered bespoke advice to facilitate
implementation by individual public
bodies of energy efcient and low
carbon technologies such as building
management systems and controls,
combined heat and power systems,
LED street lighting, biomass heating
and large scale district heating
schemes.
Supporting Scotlands SMEs
Our work with Scottish SMEs has
provided practical guidance, which
helps businesses take action, enabling
them to make nancial savings in
their energy bills and reduce their
carbon emissions. During 2012/13
we carried out over 250 individual
on-site energy surveys in Scotland,
helping businesses to recognise and
implement practical measures to
save energy costs and reduce carbon
dioxide emissions, improving their
competitiveness. Further support
was also available via our freephone
customer helpline, website and a
range of publications and training
workshops.
We also expanded our very successful
strategic Carbon Management
Programme for Scottish SMEs.
Building from our pilot initiative in
2011/12, this year over 50 businesses
have completed the programme,
which helps them establish their
current baseline carbon dioxide
emissions, assess the risks and
opportunities posed by climate
change and develop a robust strategy
with projects to reduce their carbon
footprint over a ve to ten year period.
By implementing these plans in full,
the 2012/13 graduates could expect
to see a collective nancial saving
of over 14 million, whilst reducing
their carbon emissions by more than
54ktCO
2
e.
Carbon Trust Wales
With the support of the Welsh
Government, in 2012/13 our
specialist advice and support helped
organisations in Wales to implement
measures that will deliver lifetime
savings of over 170 million and
912ktCO
2
e.
Business support
Throughout the year we assisted a
range of businesses from SMEs
to multinationals. These included
Celsa Steel, Zorba Foods, Princes
Gate, Clydey Cottages, Cassidian,
Nuaire and Welsh Slate. The support
offered enabled businesses to identify
their best business opportunities
and take action to implement
these opportunities, reducing their
environmental impact and energy bills.
Spring 2013 saw the launch of a
campaign to help Welsh SMEs save
30 million over a one year period.
The campaign already has the backing
of Princes Gate that has implemented
measures which saved 145,000 this
year and created ve new jobs.
One-to-many business support
engagements were delivered
throughout Wales in partnership
with local authorities, the Brecon
Beacons National Park, Welsh
Rarebits, the Llandudno Tourism
Association, Carmarthen Tourism and
a collaboration programme to reduce
steam use within major energy users.
Our extensive events programme
enabled us to interact with delegates
throughout Wales providing the
information, knowledge and tools
needed to help organisations cut
energy and costs.
We supported a range of businesses
through our Entrepreneurs Fast Track
scheme for low carbon innovators
providing support to businesses
within Wales through our innovation
work. As a result, these companies
have been successful in attracting over
3.5 million of third party investment.
Public sector support
We continue to work in partnership
throughout the public sector in
Wales. Building upon our carbon
management review of 2011/12,
our 2012/13 programme has focused
Scotland
and Wales
on the delivery of savings, which
over a 5 year period, will achieve a
cumulative saving of 95 million.
Further signicant energy efciency
reviews were carried out in the NHS
sector and higher education sector,
including a carbon management
review within the NHS. These reviews
are laying the basis for further savings
in the future.
Two public sector pilot programmes
that provide training and empower
schools to understand energy use
and address behaviour change
were successfully delivered. During
2013/14 these programmes will be
rolled out to other authorities in Wales.
Our implementation work within
the public sector in Wales continues
to deliver high-value, low-cost
implementation. Throughout 2013/14
we will continue to work with public
sector bodies to identify carbon saving
reductions of between 15% and 25%.
Interest free energy efciency loans
As part of our continuing support we
were able to offer over 1.7 million of
interest free loans to SMEs in Wales,
helping them to benet from more
energy efcient equipment, cutting
their costs and carbon emissions.
In addition to the interest free loan
scheme in Wales, we also offered
5 million of interest free loans
to businesses in Northern Ireland.
The measures funded by the Wales
and Northern Ireland loan schemes
combined could save up to
178ktCO
2
e and 27.5 million over
their lifetimes. Interest free loans
were also made available to cover
organisations assessment fees for
the Micro-generation Certication
Scheme and Green Deal Certication
Scheme.
Case study Princes Gate
Princes Gate in Pembrokeshire is
one of Waless best loved brands,
having been established for over
22 years. The business employs 50
local people and is growing year-on-
year. It has already saved 145,000
this year thanks to measures
recommended by the Carbon Trust
Wales, and these savings look set to
increase each year.
Savings at a glance
total savings of 145,000 in just
one year, set to increase year-on-
year
saving of 8,000 a year on lighting
saving of 100,000 a year by
replacing diesel generators
raw material PET truck loads
arriving on site reduced from
1,000 to 50 a year
packaging reduced by 15%
creation of ve new jobs for local
people.
Working with Carbon Trust Wales has given us the
support we needed to make these big savings. The team
helped us to identify where savings could be made and
gave us some excellent advice in moving things forward.
Were really proud of our green credentials; were in no
way environmental activists, but we recognise the need
for sustainable manufacturing to ensure future economic
viability and to look after the climate that delivers our
water and the landscape that lters and enriches it.
David Jones, Managing Director of Princes Gate
Governance
Environment report
The Carbon Trust continues to meet the objectives set out
in its environmental policy, focusing on reducing energy
consumption in line with targets set by its board.
For the nancial year 2012/13, a challenging target of a
10% reduction in total Scope 1 and Scope 2 greenhouse
gas (GHG) emissions was set. Further, the company
regards the forthcoming legislation on mandatory carbon
reporting (MCR) as being a high standard of good
practice and this year is presenting its report in this format.
Consequently, under the MCR format, the companys
Scope 1 and Scope 2 emissions are as follows:
Greenhouse gas emissions
1
2011/12 2012/13 2011/12 2012/13
Total tCO
2
e Total tCO
2
e tCO
2
e/FTE tCO
2
e/FTE
Scope 1: Direct emissions 37.3 36.1 0.23 0.23
Scope 2: Indirect emissions 288.5 221.7 1.76 1.43
Total emissions 325.8 257.8 1.99 1.66
Change relative to previous year 21% reduction 17% reduction
All gures are tonnes CO
2
equivalent. Totals may not agree due to rounding. FTE are full time equivalent staff.
Previously, the Carbon Trust has presented its footprint
with domestic and international travel emissions. MCR
does not require travel emissions to be included; however,
in the interests of maintaining transparency, we restate
our 2011/12 and 2012/13 footprints with travel emissions
included, as follows:
Greenhouse gas emissions
1
2011/12 2012/13 2011/12 2012/13
Total tCO
2
e Total tCO
2
e tCO
2
e/FTE tCO
2
e/FTE
Scope 1: Direct emissions 37.3 36.1 0.23 0.23
Scope 2: Indirect emissions 288.5 221.7 1.76 1.43
Scope 3: Domestic travel emissions 80.9 58.8 0.49 0.38
Scope 3: International travel emissions 62.5 92.5 0.38 0.60
Total emissions 469.2 409.1 2.86 2.64
Change relative to previous year 13% reduction 8% reduction
All gures are tonnes CO
2
equivalent. Totals may not agree due to rounding. FTE are full time equivalent staff.
In 2012/13 the company moved its London and Cardiff
ofces to new premises. This contributed to a reduction in
our absolute Scope 1 and Scope 2 GHG emissions by 21%
compared to 2011/12. In addition, we achieved a reduction
of 17% in our Scope 1 and Scope 2 GHG emissions when
benchmarked against staff numbers.
While we have reduced our domestic travel emissions
year on year, our international emissions have increased
due to the number of staff visiting customers abroad. The
companys total footprint has reduced in absolute terms
and per staff member over the period.
The Carbon Trust will, for the year 2012/13, review
its environmental policy in light of changing market
conditions and the shift in business activities over the
previous two nancial years.
1
Source of emission factors. DEFRA. Scope: Operational Control. The Carbon Trust operates ofces in the UK and China. UK ofces represent the
vast majority of Carbon Trust business and have been included in these emissions calculations. Chinese operations have been excluded as they have
been estimated as immaterial.
Governance
Directors report
The directors present their annual report on the
affairs of the group, together with the nancial statements
and auditors report for the period 1 April 2012 to 31
March 2013.
Board
The board is responsible for the overall strategy
and direction of the company. Details of the boards
composition are set out on pages 26.
Principal activities
The groups principal activity is to accelerate the move to
a sustainable, low carbon economy. The groups activities
in the UK and internationally include advising business,
governments and the public sector, providing certication
and standards, investing in the development and rollout of
technology, and designing and implementing government
programmes. The groups work enables energy, water and
resource efciency (thereby saving bottom line costs for
industry, governments and the public sector) and reduces
carbon, water usage and waste. Further details of the
groups activities are set out in pages 8 to 19.
Financial and business review and
organisational structure
The Carbon Trust is an independent company limited by
guarantee that has been in operation for over 12 years.
The review of 2012/13, set out on pages 8 to 19 describes
the Carbon Trust groups activities in the year. The
nancial review on pages 30 to 35 set out the groups
performance, the risks and strategy for delivering its
objective to become self sustaining, generating revenues
that can be invested in its mission. The group will continue
to expand its operations in future years. It has a diversied
business portfolio, a range of valued offerings and a highly
qualied workforce with a huge depth of experience.
These assets put it in a great place to further its mission
and exploit its opportunities. The group has invested
from its cash reserves to fund losses during its transition
from a mainly government grant funded organisation to a
nancially self sustaining group.
Financial key performance indicators and the principal
risks facing the company are covered in the nancial review
(pages 30 to 35). Non-nancial key performance indicators
are covered in pages 8 to 19.
The group undertakes a detailed annual business planning
and management process that is regularly reviewed (and
amended if appropriate) throughout the year to ensure that
its business is managed within its grant income, forecast
sales revenues and prudently available resources.
After making due enquiries, the directors are of the
view that the group has adequate resources to remain
in operation for the foreseeable future and that it is
appropriate to continue to adopt the going concern basis
in preparing the nancial statements.
There are no material post balance sheet events.
The Carbon Trust has four directly held and wholly
owned subsidiary companies, Carbon Trust Investments
Limited (CTIL), Carbon Trust Enterprises Limited
(CTEL), Carbon Trust Fund Management Holdings
Limited (CTFMH) and Carbon Trust International
Limited (CTInt). The Carbon Trust groups organisational
structure and subsidiaries, joint ventures and associates are
described in more detail in the notes to the accounts on
pages 41 to 64.
Results and dividends
The group has prepared its 2012/13 nancial statements
in accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union
(EU). The audited nancial statements for the period
ended 31 March 2013 are set out on pages 37 to 40.
The Carbon Trust, as a company limited by guarantee,
is not permitted to pay a dividend. Its subsidiary group
companies have also not paid a dividend. For a more
detailed review of the results for the year and a more
detailed explanation of the accounting loss, please see the
nancial review on pages 30 to 35.
Directors and corporate governance
Full details of the directors and corporate governance
matters are set out on pages 24 to 29.
Employees
The commitment of the groups employees is vital to
ensure that high standards of service are delivered to
clients, impartiality is maintained in standard setting and
certication, and the groups objectives are achieved. The
groups highly skilled workforce is key to its future.
Governance
The group is committed to treating its employees with
dignity and respect, and to valuing diversity. The group
is also committed to equal opportunities for all present
and potential employees, and does not discriminate on
the grounds of colour, ethnic origin, gender, age, religion,
political or other opinion, disability, marital status or sexual
orientation. Applications for employment by all persons
are always fully considered, bearing in mind the aptitudes
of the applicant concerned, as are the training, career
development and promotion of all employees.
If an employee should become disabled, every reasonable
effort will be made to continue to provide suitable
employment either in the same job or, by training, in
an alternative job. Disabled persons are given equal
consideration for training, career development and
opportunities for promotion within the group.
There are a number of communication and discussion
channels in place to enable employee engagement. These
channels include an annual condential staff survey, weekly
company-wide bulletin meetings, quarterly company-
wide briengs that include reports on group objectives
and business performance and breakout discussions. The
group encourages open and frank communication between
employees and senior management, including by providing
opportunities for employees to express their views and
generate ideas. It provides training opportunities to staff
and encourages personal development and the building of
skills and expertise.
Group employee numbers (including executive directors
but excluding non-executive directors and secondees) as at
31 March 2013 were 166 (2011/12 178).
Supplier payment policy
The companys policy is to pay supplier invoices
within 30 days from the date of receiving the invoice.
The aggregate creditor days at 31 March 2013 was
41 days (2011/12 20 days).
Charitable and political contributions
The company made no charitable or political contributions
during the year (2011/12 nil).
Environment
Details are set out on page 20.
Directors third party indemnity provisions
The company has granted an indemnity to one or more
of the directors against liability in respect of proceedings
brought by third parties, subject to the conditions set
out in the Companies Act 2006. Such qualifying third
party indemnity provision remains in force as at the date
of approving the directors report. The company has
also maintained directors and ofcers liability insurance
throughout 2012/13.
Directors responsibilities
UK company law requires the directors to prepare
accounts for each nancial year that give a true and fair
view of the state of affairs of the company and of the
surplus or decit of the company for that period.
The directors are responsible for preparing the annual
report and the group nancial statements in accordance
with applicable United Kingdom law and regulations.
Company law requires the directors to prepare group
nancial statements for each nancial year. Under that
law, the directors are required to prepare group nancial
statements under IFRSs as adopted by the EU.
Under company law the directors must not approve the
group nancial statements unless they are satised that they
give a true and fair view of the state of affairs of the group
and of the prot or loss of the group for that period.
In preparing the accounts, the directors are required to:
present fairly the nancial position, nancial
performance and cash ow of the group
select suitable accounting policies in accordance with
IAS 8: Accounting Policies, Changes in Accounting
Estimates and Errors and then apply them consistently
present information, including accounting policies, in a
manner that provides relevant, reliable, comparable and
understandable information
make judgments that are reasonable
Directors report
continued

Governance
provide additional disclosures when complying with the
specic requirements in IFRSs, as adopted by the EU is
insufcient to enable users to understand the impact of
particular transactions, other events and conditions on
the groups nancial position and nancial performance
state whether the group nancial statements have been
prepared in accordance with IFRSs as adopted by the
EU, subject to any material departures disclosed and
explained in the nancial statements
state whether the company nancial statements have
been prepared in accordance with UK accounting
standards and the Companies Act 2006.
The directors are responsible for keeping proper
accounting records that disclose, with reasonable accuracy
at any time, the nancial position of the company and
enable them to ensure that the accounts comply with the
Companies Act 2006 and the Articles of the International
Accounting Standards (IAS) Regulation. They are also
responsible for safeguarding the assets of the company,
and hence for taking reasonable steps to prevent and detect
fraud and other irregularities.
The directors are also responsible for preparing the
directors report, the directors remuneration report and
the corporate governance statement in accordance with the
Companies Act 2006 and applicable regulations.
Auditors
So far as each person who was a director at the date of
approving this report is aware, there is no relevant audit
information, being information needed by the auditor in
connection with preparing its report, of which the auditor
is unaware. Having made enquiries of fellow directors and
the groups auditor, each director has taken all the steps
that he/she is obliged to take as a director in order to make
himself/herself aware of any relevant audit information and
to establish that the auditor is aware of that information.
Ernst & Young LLP have expressed a willingness to
continue in ofce. A resolution to reappoint them will
be proposed at the next annual general meeting.
By order of the board
Claire Williams, Company Secretary
15 July 2013
Corporate governance report
Statement of compliance with the UK
Corporate Governance Code
The Carbon Trust believes that good governance is
essential to the long term success and performance of the
group. It has accordingly decided to voluntarily adopt
and report against the UK Corporate Governance Code
as a means of embedding best practice in corporate
governance. An explanation is given below where any
aspect of the Code has not been fully applied.
Role of the board
The board is committed to ensuring high standards of
corporate governance. It recognises that an effective,
challenging and collaborative board is fundamental to
enabling the group to deliver its mission and strategy. The
board is collectively responsible for the long term success
of the group and is ultimately responsible for its strategy,
management, direction and performance. It decides the
values and standards of the group and sets the framework
for prudent and effective controls.
Composition of the board
The board is committed to ensuring that the directors
demonstrate an effective and broad balance of skills,
experience, independence, knowledge and diversity.
During the course of the year the board comprised the
non-executive chair (James Smith), two executive directors
(Tom Delay and Michael Rea) and, at the start of the year,
nine non-executive directors, reducing to six non-executive
directors by the end of the year due to planned retirements.
James Smith continued as chair throughout the year. Ian
Stephenson continued as deputy chair until his retirement
on 27 September 2012, when he was replaced in that role
by Timothy Weller. Tom Delay continued as chief executive
and Michael Rea continued as chief operating ofcer
throughout the year.
The details of all board members, changes throughout
the year and attendance at board meetings are listed on
page 26.
There is a good balance on the board between the
executive directors and the non-executive directors.
The directors bring a wide range of skill sets and business
experience to the board. The board did not complete
an evaluation of itself, its committees or individual
directors in 2012/13 due to the continued embedding of
previously planned changes in the boards composition
and governance. However, an evaluation process (using an
external facilitator) started in April 2013 and is scheduled
for completion in July 2013.
The board appointed one new director during the course
of the year. Before doing so the board and nomination
committee undertook a review of the balance and skill
set required for the board in light of the groups strategy,
objectives and future development. Objective criteria for
the position were identied and the company secretary was
asked to undertake research into potentially appropriate
candidates. An interview and assessment process was used
in the selection of the new director. The board was satised
with the process adopted and, for cost efciency reasons,
it decided not to advertise the position or use an external
consultant.
New directors have written terms of appointment setting
out all relevant matters, including the time commitment
required. New directors are offered an induction to ensure
that they are conversant with the groups business. Relevant
corporate governance and technical training is available
and periodically offered to directors by the company.
The board considers all the non-executive directors to
be independent of the Carbon Trust by reason of their
other roles and level of association with the Carbon Trust,
notwithstanding that three current directors have been
in post for more than nine years. In accordance with the
Articles of Association, the non-executive directors retire
by rotation every three years, and such retiring directors
may (if they re-stand) be re-appointed by the members
in annual general meeting. Due to the existing knowledge
(and in some cases the identity of composition) of the
members of the company and the non-executive directors,
it was not necessary in the year for biographical and other
information relating to the retiring directors to be given to
the members.
Governance
Board governance
The board meets sufciently regularly to discharge its
duties effectively (meeting approximately every two
months, with ad hoc meetings as required). The board also
held a separate strategy meeting. Since the latter part of the
year a regular forward planner has been given to the board
members to allow visibility of the expected subject matter
of future board agendas. Board members also informally
meet once a year without management being present and
once a year without the chair and management being
present.
There is a schedule of reserved matters and a written
division of responsibilities between the chair and the chief
executive, enabling a clear understanding of this division.
The day-to-day management of the company has been
delegated to the chief executive and his management team.
As the company is not listed, a senior independent director
is not required. However, Timothy Weller (the deputy
chair) is recognised by directors as being available to
perform a similar governance role. A register of directors
interests is maintained.
The board has delegated authority to three committees
the audit committee, the remuneration committee and the
nomination committee. The written terms of reference of
each committee are available on the companys website.
Audit committee
At year end this committee comprised three non-executive
directors, namely, Timothy Weller (chair), James Smith
and Christopher Mottershead. Timothy Weller and
Christopher Mottershead were members of the committee
throughout the year. Ian Stephenson was a member until
his resignation on 27 September 2012. James Smith was
a member until 20 April 2012, and was subsequently re-
appointed as a member on 28 November 2012.
The chair of the committee is a chartered accountant with
recent and relevant nancial experience. The committee
met twice in the nancial year 2012/13. The meetings were
attended by the companys external auditors.
The main responsibilities of the committee include
monitoring the integrity of the groups nancial statements,
reviewing the groups internal nancial controls and risk
management systems, monitoring the need for an internal
audit function, making recommendations to the board,
overseeing the relationship with the external auditor and
monitoring the effectiveness of the audit process. The
committee reports to the board.
The committee has discharged all its main responsibilities.
In particular, it has:
considered and made recommendations to the board
on the appointment and remuneration of the external
auditors
received reports from the external auditors (including
the annual statutory audit)
considered and approved the groups accounting
policies
reviewed the effectiveness of internal controls, including
risk management and fraud risk.
The committee continues to apply an external auditor
independence policy to safeguard auditor objectivity and
independence where the companys auditors have provided
non-audit services.
Nomination committee
At year end this committee comprised all the non-executive
directors. James Smith (chair), John Edmonds, Paul
Jefferiss, Christopher Mottershead and Timothy Weller
were members throughout the year. Members until their
retirement were Ian Stephenson (retiring 27 September
2012) and Lucy Neville-Rolfe (retiring 14 February 2013).
Dorothy MacKenzie was appointed to the committee on
28 November 2012. The committee met three times in the
year.
The committees responsibilities are to:
review regularly the structure, size and composition
of the board and make recommendations to the board
with regard to any changes
give consideration to succession planning for directors
and other senior executives
be responsible for identifying and nominating, for the
approval of the board, candidates to ll board vacancies
as and when they arise
x the remuneration of individual directors. No director
is involved in deciding his or her own individual
remuneration.
Remuneration committee
The membership and responsibilities of this committee are
described in the Remuneration report (pages 28 to 29).
Governance
Board and committee meetings
The table below shows the number of board and
committee meetings of the company held during the year
that ended 31 March 2013 and the attendance of the
individual directors.
It should be emphasised that this information does not
fully reect the contribution made to the groups business
by many of the directors who have also attended other
meetings and events relating to the groups business and
activities during the year.
Corporate governance report
continued

Tenure in full
years to 31 March
2013 Board Audit committee
Nomination
committee
Remuneration
committee
Number of meetings held 9* 2 3 3
Neil Bentley appointed
18 August 2008 retired
27 September 2012
5 0** n/a n/a 2**
Tom Delay (chief executive)
appointed 13 July 2001
n/a 9 n/a n/a n/a
John Edmonds appointed
13 July 2001
11 7 n/a 3 2**
Paul Jefferiss appointed
16 May 2001
11 9 n/a 3 2**
Christopher Mottershead
appointed 1 July 2001
11 9 2 2 1
Dorothy MacKenzie appointed 28
November 2012
0 5** n/a 1** n/a
Lucy Neville-Rolfe appointed 12
March 2008 retired
14 February 2013
5 3** n/a 1 n/a
Michael Rea (chief operating ofcer)
appointed 1 April 2007
n/a 9 n/a n/a n/a
James Smith appointed
1 September 2010
2 9 1** 3 2**
Ian Stephenson appointed 29
March 2001 retired 27 September
2012
11 3** 1** 1** 2**
Timothy Weller appointed
19 June 2007
6 4 2 2 1
* including three short notice ad hoc board meetings.
** means appointed part way through the year or retired part way through the year.
n/a means not a member of the relevant committee.
Governance
Relations with members and stakeholders
The company regularly consults with its government
funders and stakeholders and, through a series of group
and one-to-one stakeholder meetings and feedback
avenues, their views are taken into account in relation
to operational matters. The company welcomes input
from its government funders and other stakeholders on
an ongoing basis.
Maintenance of a sound system of internal
control
The chief executive, chief operating ofcer, company
secretary and nance director have reviewed the
effectiveness of the Carbon Trusts systems of internal
control and risk management on behalf of the board for
the nancial year 2012/13 and up to the date of approval
of this report. These ndings were reported to the audit
committee, that also reported to the board. The directors
are able to conrm they have conducted a review of
the effectiveness of the Carbon Trusts systems of risk
management and internal controls in accordance with the
UK Corporate Governance Code and Turnbull guidance.
These controls have been operating throughout the year
and to the date of this report.
The key elements and procedures that have been
established to provide effective risk management and
internal control systems are described below:
Control environment the board is responsible for
the Carbon Trusts system of internal control and for
reviewing its effectiveness. This system of internal
control is designed to manage and, where possible,
mitigate the risks facing the group, safeguard the assets
and provide reasonable, but not absolute, assurance
against material nancial misstatement or loss. The
audit committee assists the board in discharging its
review responsibilities as described in the section
headed audit committee on page 25.
Risk the identication and mitigation of
signicant business risks is the responsibility of
senior management. Each business unit, including
the corporate departments, maintains a risk
register identifying its business risks and allocating
responsibility for appropriate mitigating controls.
Departmental risk registers and the groups strategic
risk register are kept under regular review by the
management team and reported to the audit committee
and the board, with the top strategic risks receiving
particular attention. A risk workshop was attended by
senior employees from across the group.
Financial management and reporting;
There is a comprehensive strategic planning,
budgeting and forecasting system with the group,
with the business plan (including the annual budget)
being approved by the board.
Senior management meet every two months with the
chief operating ofcer to discuss business progress
against a balanced scorecard and to review monthly
management accounts. An update on the groups
progress, sales and revenues is reported in the group
business report submitted to each board meeting.
A 24 month nancial forecast is discussed by the
chief executive, chief operating ofcer and senior
management who reect on the overall group
performance, nancial health and risk every two
months. Financial forecasts incorporating these
deliberations are given at each board meeting in the
group business report and related papers.
Legal and oversight there is a system for monitoring
group compliance with the internal control
environment, including group policies and procedures.
Training and guidance is also given to support
compliance with anti-bribery, whistle-blowing, money
laundering, health and safety, environment and other
legislative or good practice requirements.
Treasury management the nance department
operates within policies agreed by the audit committee.
All transactions require second approval from
operational senior management.
Insurance appropriate insurance is in place, with
insurance cover being reviewed annually by the audit
committee.
Governance
Remuneration report
Remuneration committee
At year end this committee comprised all the non-
executive directors. James Smith (chair from 27 September
2012), Christopher Mottershead and Timothy Weller
were members throughout the year. John Edmonds,
Paul Jefferiss and Lucy Neville-Rolfe were appointed
to the committee on 27 September 2012 and Dorothy
MacKenzie on 28 November 2012. Ian Stephenson
(previous chair) and Neil Bentley resigned from the
committee on 27 September 2012 and Lucy Neville-Rolfe
resigned from the committee on 14 February 2013.
Procedures for developing policy and
determining remuneration
The committee has responsibility for setting the
compensation arrangements of the board and the
compensation and delivery incentive arrangements for
the executive directors. It also sets the broad framework for
employee remuneration and benets. The committee has
access to the information it requires and has the authority
to obtain the advice of external advisers. The committee
met three times in the year.
Statement of remuneration policy
The remuneration policy is to:
provide a compensation package to attract, motivate
and retain high quality employees
assess remuneration relative to other similar sized
businesses in the private sector taking account of
relative performance of equivalent positions.
A range of methods is used to ensure that the levels of
compensation are appropriately benchmarked against
external organisations.
The executive director packages were benchmarked in
January/February 2013 by use of an external consultancy
(Croner Reward) who has no relationship to the company
or the directors. The fees paid to non-executive directors
remained unchanged for 2013.
Pay review
Following a market review in 2013 the committee
recommended a cost of living increase of 2% for 2013.
This was implemented for all eligible staff (including the
executive directors).
Executive directors
The remuneration package for the executive directors links
corporate and individual performance with the appropriate
focus on delivery targets and the balance between short
and long term elements. The remuneration of the executive
directors comprises a base salary, an incentive bonus and
certain other benets. The committees recommendation
of the bonuses to be paid to the two executive directors
for 2012/13 was based on an assessment of individual and
company performance against key objectives.
During the year the company made pension contributions
of 40,839 (2011/12 41,565) and 33,039 (2011/12
31,047) into the personal pension plans of Tom Delay
and Michael Rea respectively.
Name
2013
salary
2013
bonus
2013
other
benets
2013
total
2012
total
Tom Delay 174,624 78,581 23,813 277,018 249,742

Michael Rea 134,130 46,946 17,437 198,513 174,400
Governance
Non-executive director fees
Fees are payable to all non-executive directors. James Smith waived this entitlement.
Name
2012/13
fees
2011/12
fees
Principal positions held elsewhere at 31 March 2013
James Smith Nil Nil Chair of the advisory board of the Grantham Institute for Climate
Change at Imperial College and LSE, Chair of the advisory board
of the Museum for Science and Industry, Manchester, Chair of
Conservatoire of Dance and Drama, Chair of South Bank University
Enterprises Ltd (formerly Chair, Shell UK Ltd)
Ian Stephenson 11,931 26,666 Chair of Royal London Society for the Blind (formerly Director of
Johnson Matthey Plc.)
Neil Bentley 8,135 16,750 Deputy Director-General and chief operating ofcer of the
Confederation of British Industry
John Edmonds 15,000 16,750 Director of Salix Finance Ltd, Senior Research Fellow of Kings
College, London University, Chair of River Thames Alliance
Paul Jefferiss 15,000 16,750 Head of Group Policy, BP Plc.
Dorothy MacKenzie 5,173 Nil Chair of Dragon Rouge Ltd
Christopher Mottershead 15,000 16,750 Vice-Principal (Research and Innovation), Kings College, London
University
Lucy Neville-Rolfe 13,750 16,750 President of Eurocommerce (formerly Executive Director,
Corporate and Legal Affairs, Tesco Plc.)
Timothy Weller 17,000 19,333 Chief Financial Ofcer of Petrofac Ltd, Director of G4S and BBC
Worldwide
Total 100,989 157,877*
Governance
* including fees for directors who retired in 2011/12.
Governance
Financial review
The Carbon Trust is a company limited by guarantee that does not pay dividends or distribute capital. The company
reinvests any prots into its mission and funds any losses from reserves.
During the year we have extended our international reach, diversied our funding, and made good progress in building
a sustainable nancial business model. Since 2011 we have sought to create a platform for growth and diversify our
funding with the aim of:
optimising the portfolio of our commercial and grant-funded businesses to reach break even
broadening our offer towards sustainability
growing the Carbon Trust into a world-leading authority on carbon
establishing material international presence
generating prots in the medium term to sustain further initiatives in fulllment of our mission.
The Carbon Trust provides services to corporates and public sector organisations and receives government grants to
full specic technology objectives, we receive no grant to meet our central costs. We attribute central costs to client
facing personnel and allocate costs proportionally to the activities fullled by these personnel.
Key performance indicators
The groups successes are set out in the business review on pages 8 to 19. The groups key nancial indicators are
set out below.
Group KPIs
2013
m
2012
m
2011
m Comments
Total revenue including grant
1
31.6 54.2 137.6 DECC provided funding for the Carbon Trust central
costs during 20112012. This funding ceased on
1 April 2012.
Non grant income (includes bid for
grant)
2

8.8

10.2

8.7
Total group EBIT
3
-2.7 -4.5 15.1
Group management and service costs 6.0 12.5 15.7 Group management and service costs are allocated
to revenue generating businesses in proportion
to client facing employees. In 2011/12 the London
ofce was relocated to smaller premises and
restructuring costs of 2.2m were incurred.
Total group unrestricted cash balances 14.5 19.0 16.3 Cash held in subsidiaries is reallocated to
unrestricted cash (2011/12 3.6 million,
2010/11 1.5 million)
Asset realisations
4
6.0 2.9 1.2

1 Total revenue excludes nancial income included in the income statement on page 37.
2 Non grant revenues include bid work from the FCO.
3 Earnings before tax and interest are reconciled to the income statement by excluding nancial income and expense, the share of joint venture losses
and treating the net amount as a charge in calculating the net income due to members.
4 Asset realisations are the gross cash proceeds of investment disposals.
Governance
Current performance
The group offers its commercial activities through subsidiary companies, and its grant obligations through
the Carbon Trust.
Revenues are generated from commercial sales and government grant funding. The proportion of income, excluding
nancial income generated from commercial sales, increased to 27% (2011/12 20%). In the second year of transition
to a commercially sustainable model the group continues to diversify its customer base, with 36% (2011/12 20%)
coming from non-UK government grant funded sources. We have increased the proportion of beneciaries nancial
contributions towards our grant funded objectives and increased commercial revenues in a difcult market. The group
generated revenues from sales, contributions to programme costs and licence agreements of 8.8 million (2011/12
10.2 million). Grant funding was 22.8 million (2011/12 44.0 million). In 2011/12 we concluded grant contracts
with DECC and Invest Northern Ireland.
The group presents its business in four segments:
Advice
Revenues were 2.9 million (2011/12 2.4 million). The group offers consultancy services to commercial clients, the
UK and other governments and widely across the UK public sector. We worked in Brazil, Mexico, China, Malaysia and
the UK.
Certication
Revenues were 2.0 million (2011/12 2.7 million). The groups main certication offer is the Carbon Trust
Standard. During the year we also certied low carbon buildings and extended our commercial offer, launching the
Water Standard at the end of the year. However, further changes to the CRC Energy Efciency Scheme announced by
the government in the autumn statement have impacted sales of the Carbon Trust Standard, that was closely related to
the scheme.
Technology
Revenues were 16.5 million (2011/12 22.6 million). We worked with DECC and the devolved administrations
to full their technology development objectives. Further detail is available in the business review, pages 8 to 19. We
made two investments from proceeds of past realisations and, in accordance with DECCs policy objectives under the
PFCC, made three further investments. Grant received for investments is recognised in the income statement without
a corresponding expense, that directly increases prot. 3.1 million grant was recognised relating to investments
(2011/12 5.0 million). We completed our Entrepreneurs Fast Track programme during the year, fullling Invest
Northern Irelands, the Welsh Governments and DECCs technology objectives with these early stage companies. We
secured a three year contract from DECC to deliver the Energy Technology List during the year.
Devolved administrations programmes
Revenues were 10.2 million (2011/12 26.5 million). We provided grant funded energy efciency advice in
Scotland and Wales. We administered the interest free Energy Efciency Loans Scheme (closed to new loans in
England since April 2011).
The group achieves its objectives directly and through joint ventures. We recognise our share of joint venture losses
where we exercise joint control. We recognise 4.8 million losses in the year (2011/12 3.8 million). Our joint
ventures are detailed in note 10 to the accounts.
Each business area incurs its own management costs and is allocated a proportion of group management and service
costs in proportion to client facing employees who generate the groups sales income. Centrally controlled management
and administration costs were 6.0 million (2011/12 12.5 million) following the groups restructuring and
reorganisation delivered in 2011/12. The main reasons for the reduction were reduced IT, accommodation and staff
costs, with an average number of employees of 166 (2011/12 178).
Governance
We present our group results under IFRS. Fair value adjustments recognised in the income statement are the
valuation of our investment portfolio, 2.0 million charge (2011/12 6.1 million charge), and the movement
for deferred tax balances provided between the fair value of investments and their base cost released 0.5 million
credit (2011/12 0.6 million credit). No provision is made for deferred tax assets arising on tax losses carried
forward as future prots are considered uncertain. During the year, changes in ownership structure in Solar Press,
Future Blends and Partnership for Renewables have given rise to deemed gains and losses due to changes in group
interest and, as a consequence, the group recorded a net 2.8 million gain upon deemed disposal in the income
statement (2011/12 1.8 million).
Group losses represent the trading losses in our commercial businesses and through recognising our share of losses
incurred in joint venture operations in our investment portfolio. In 2011/12, when core grant funding was received for
group management and service costs, group losses were limited to restructuring costs and our share of joint venture losses.
We report a loss at earnings before tax of 4.7 million (2011/12 4.6 million).
There was 1.4 million (2011/12 0.3 million) of capital expenditure during the year, incurred in tting out
research facilities.
Taxation
The company has an agreement with Her Majestys Revenue and Customs that grant income is not subject to tax.
Similarly no tax deduction is available for expenses funded out of grant income. We maintain a strict separation of
different trades to identify clearly which expenses are met with grant. The group incurs corporation tax on prots made
in its commercial operations.
In preparing the nancial statements in accordance with IFRS, provision is made for deferred tax on the differences
between the fair value of our investments and their base cost. Changes to the deferred tax provision are reected in the
income statement.
Financial Review
continued

Governance
Cash ows
Commercial turnover is collected in arrears. We have agreed grant funding for 2012 2015 from DECC, which is
payable monthly in advance. We have grant funding from the Welsh Government, Invest Northern Ireland, DFID
and the FCO, that is payable in arrears. Our expenses are payroll, which is paid in the month it is earned, and third
party costs, that are paid promptly at the end of the month following the month in which the invoice is received.
We administer the interest free Energy Efciency Loans Scheme on behalf of DECC, the Welsh Government and
Invest Northern Ireland, and we remit recovered funds to DECC monthly, reducing our balance due to DECC for the
deferred grant funding. During the year we remitted 37.8 million to DECC reducing our balance due to DECC
by an equal amount (2011/12 54.5 million).
At 31 March 2013 cash held was 32.5 million (2011/12 43.4 million). These balances are analysed in the
table below.
2013
000s
2012
000s
Cash received in advance of costs being paid (restricted funds) 8,149 18,095
Cash ring-fenced for the interest free Energy Efciency Loans Scheme (restricted funds) 4,683 5,539
Carbon Trust group unrestricted balances
1
14,478 15,210
Carbon Trust group balances restricted for re-use in low carbon technology investments 3,583 4,200
Carbon Trust group balances restricted for re-use in Wales 1,633 400
32,525 43,443
1
Cash held in subsidiaries is classied as cash received in advance of costs being paid in 2012, and as unrestricted cash in 2013
1,391,000 (2011/12 3,831,000).
The Carbon Trusts unrestricted balances are generated from commercial activity and previous to 1 April 2012 from
investment sales, loan repayments and investment income. A portion of investment proceeds and loan repayments
are restricted in their future use under the terms of the original grant funding received. These balances are committed
to meet investment obligations or will be reinvested. Cash held to meet grant funded obligations is shown separately
between balances for Energy Efciency Loans Scheme and balances for other grant expenditure. Before 1 April 2012
subsidiary company balances were included in restricted funds received in advance of costs being paid.
The group has limited external borrowing. Two subsidiaries have xed interest loans of 2.0 million (2011/12
1.9 million) from corporate partners, that are repayable from future cash ows from the subsidiaries. The groups
interest rate risk is limited to interest earned on cash balances. The group earns interest income at variable rates on its
cash balances.
The group has liquidity and cash ow risk associated with its operations. Technology activity supported by government
grants is funded in advance protecting the group from exposure. Cash levels are monitored to ensure sufcient
resources are available to meet the groups requirements. Cash surpluses are placed on term deposits with the groups
various banks to manage liquidity whilst optimising the rate of return on cash resources, giving due consideration to
risk and the various banks credit ratings.
The groups principal nancial assets are cash balances, interest free loans receivables, trade and other receivables and
venture capital investments. The main credit risk the group faces is in relation to commercial sales and the interest
free Energy Efciency Loans Scheme in Northern Ireland and Wales. This risk is actively managed with formal credit
checking procedures and allowances for impairment being made where appropriate. The groups bad debt provisioning
policy includes taking into account debtors in arrears as well as debtors in administration and where, in the opinion of
management, recovery is not possible.
Governance
Capital structure
The group operates through subsidiary companies and prepares consolidated group accounts. In addition to its
wholly owned subsidiary companies, as described in note 11 to the nancial statements, the group achieves its
mission through its joint venture and associate companies described in notes 9 and 10. Changes in the relative
ownership of these companies leads to accounting gains or losses, 2.8 million gain is recognised during the year
(2011/12 1.7 million gain).
Explanation of grant funded interest free Energy Efciency Loan Scheme
The Carbon Trust has received signicant grant funding for interest free loans for businesses and, through Salix
Finance, for the public sector. We are obliged to repay these funds to DECC. The balances related to loans receivable
are 51.7 million (2011/12 80.5 million). The obligation to pay down loan funding is 3.2 million (2011/12
1.7 million). Deferred income due to funders on the loan repayment is 52.7 million (2011/12 82.8 million).
The increases in the total assets disclosed in the group and company balance sheets are 52.7 million (2011/12
82.8 million). All interest free loans are disclosed, together with the balances due to funders, in notes 12, 16 and 18
to the nancial statements.
During the year, the Carbon Trust paid out 5.3 million (2011/12 10.8 million) in meeting its obligations to capital
commitments under the interest free Energy Efciency Loans Scheme. At 31 March 2013 3.2 million commitments
related to loans in Wales and Northern Ireland (2011/12 1.7 million) were outstanding under the Scheme.
Loan commitments to private sector clients in Wales and Northern Ireland were 6.9 million (2011/12 4.0 million).
We make a specic provision for loans in administration and loans where, in the opinion of management, recovery
is not possible. During the year we provided 1.5 million (2011/12 3.0 million). The cumulative total provision
represents 4.5% of total loan value offered (2011/12 3.9%). The cumulative increase in provision is in line with
expectation as the portfolio ages. Non-repayable grant received for loans is recognised in the income statement without
a corresponding expense that directly increased prot. 0.8 million in non-repayable grant was recognised relating to
loans (2011/12 0.9 million). As detailed in note 10 to the group nancial statements, we have disengaged from Salix
Finance and recognise a 1.25 million grant expense on assigning to DECC its receivables due to us, in return for
forgiveness of an equal liability to transfer these funds to DECC. In addition we provided 1.0 million grant funding
for Salix Finances programme (2011/12 3.5 million).
Principal risks and approach to risk management
The board considers the concerns outlined on page 35 to be the principal risks and uncertainties that could adversely
impact the Carbon Trusts operations, revenues, costs, assets and its strategy for diversied growth. All our principal
risks could have a negative effect on our reputation and hence our ability to deliver against our mission.
Our approach is to embed risk management into each area of business activity with management taking responsibility
for identifying and managing day to day risks. Risk registers are maintained for each area and then reviewed and
consolidated into a strategic risk register that is reviewed by senior management including the executive directors, the
nance director and the head of business development. This is discussed with the audit committee and reported to the
board. Further details of our system of internal controls and risk management are set out in the corporate governance
report on page 27.
Governance
The principal risks and uncertainties outlined below could adversely affect the Carbon Trusts ability to deliver against
its mission to accelerate the move to a sustainable, low carbon economy.
Risk or uncertainty Potential impact Main mitigating actions
Shrinking demand for low
carbon and sustainability
services: Due to slow
economic recovery and/or
negative attitudes to climate
change mitigation, demand
in our core markets may be
lower than expected.
Lower levels of activity delivered
over an extended period.
Viability of a sustainable business
model questioned.
Diversify coverage of customers, sectors, funders
and geographies.
Develop international opportunities and partnerships.
Develop institutional sources of revenue.
Enhance position as a leading authority on
carbon reduction.
Shift of activity to geographies with stable or increasing
demand.
Lost revenues if our services
are not compelling: If we dont
understand current customer
needs, our services may not
be relevant.
Revenues below planned levels.
Loss of credibility.
Ongoing engagement with customers to understand
their priorities.
Develop customer offers that are well aligned to
current needs.
Ensure that tangible and intangible benets (cost
savings, carbon reduction, reputation) are understood.
Loss of key customers:
A concentration of UK public
sector customers is a risk to
revenues.
Revenues below planned levels.
Fewer opportunities to leverage
experience.
Ongoing relationship management with key customers.
Continue to offer value for money and high quality
services.
Diversify coverage of customers, sectors, funders
and geographies.
Low win rate when bidding:
Given our limited experience
in bid selection and writing.
Revenues below planned levels. Effective sharing and learning from our experience.
Putting the best resource behind every opportunity.
Training to build skills in bid writing and preparation.
Failing to right-size the
cost base: As we grow new
commercial and international
business.
Costs not in line with forecast
revenues.
Challenge to competitive pricing.
Tight nancial controls to manage costs in line
with revenues.
Active management of cost base through business
planning.
Failure to maintain and
enhance brand value: With
limited resources and greater
exposure to partnerships and
international activity.
Lower intangible value to offer our
customers and partners.
Core values of impartiality and
rigour could be compromised.
Loss of credibility and positioning.
Ongoing stakeholder engagement plan.
Effective publicity, marketing and communications.
Ensure Carbon Trust retains control of brand use in
partnerships.
Failure to retain and recruit
key staff.
Loss of morale, efciency,
credibility and positioning.
Loss of capacity to grow new
opportunities.
Potential loss of quality in core
activities.
Offer stimulating work and opportunities.
Appropriate recruitment and retention processes
and rewards.
Enhance reputation as a world leading organisation.
A serious health, safety or
environmental incident:
Involving staff or third parties,
in the UK or overseas.
Potential harm to people and the
environment.
Breach of duty of care.
Loss of staff morale.
Embed and implement health, safety and
environmental best practice in all activities.
Monitor implementation of health, safety and
environmental policy and procedures.
Ensure staff are appropriately trained.
Maintain culture of continuous improvement
and proactive health, safety and environmental
management.
Independent auditors report to
the members of the Carbon Trust
We have audited the group nancial statements of the Carbon Trust for the year ended 31 March 2013 that comprise the
consolidated income statement, the consolidated balance sheet, the consolidated statement of changes in total funds, the
consolidated cash ow statement and the related notes 1 to 24. The nancial reporting framework that has been applied in
their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European
Union.
This report is made solely to the companys 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 companys 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 company and the companys members as a body,
for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the Directors responsibilities statement (pages 22 and 23) the directors are responsible for the
preparation of the group nancial statements and for being satised that they give a true and fair view. Our responsibility
is to audit the group nancial statements in accordance with applicable law and International Standards on Auditing
(UK and Ireland). Those standards require us to comply with the Auditing Practices Boards Ethical Standards for
Auditors.
Scope of the audit of the nancial statements
An audit involves obtaining evidence about the amounts and disclosures in the nancial statements sufcient to give
reasonable assurance that the nancial 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 groups circumstances and have
been consistently applied and adequately disclosed; the reasonableness of signicant accounting estimates made by the
directors; and the overall presentation of the nancial statements. In addition, we read all the nancial and non-nancial
information in the annual report to identify material inconsistencies with the audited nancial statements. If we become
aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on nancial statements
In our opinion the group nancial statements:
give a true and fair view of the state of the groups affairs as at 31 March 2013 and of its loss for the year then ended;
have been properly prepared in accordance with IFRSs as adopted by the European Union; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Directors report for the nancial year for which the group nancial
statements are prepared is consistent with the group nancial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you
if, in our opinion:
certain disclosures of directors remuneration specied by law are not made; or
we have not received all the information and explanations we require for our audit.
Other matters
We have reported separately on the parent company nancial statements for the year ended 31 March 2013.
Richard Wilson (Senior statutory auditor)
for and on behalf of Ernst &Young LLP,
Statutory Auditor London
15 July 2013
Accounts
Accounts
Notes
31 March
2013
000s
31 March
2012
000s
Income
Revenue 2 31,603 54,228
Finance income 4 5,581 11,017
Total income 37,184 65,245
Expenditure
Programme expenditure 3 (34,295) (58,767)
Finance costs 5 (2,850) (7,220)
Total expenditure (37,145) (65,987)
Excess of income over expenditure/(expenditure over income) 39 (742)
Share of joint ventures and associates operating results 10 (4,758) (3,817)
Loss before income tax (4,719) (4,559)
Tax on loss 7 472 495
Loss for the year (4,247) (4,064)
Total comprehensive income for the year (4,247) (4,064)
Attributable to:
Members of the company (4,189) (3,979)
Non-controlling interest (58) (85)
(4,247) (4,064)
Consolidated income statement
For the year ended 31 March 2013
Accounts
Consolidated balance sheet
As at 31 March 2013
Notes
31 March
2013
000s
31 March
2012
000s
Non-current assets
Property, plant and equipment 8 1,623 444
Financial assets investment portfolio 9 25,737 27,556
Interests accounted for using the equity method 10 2,733 4,085
Interest free loans receivable 12 11,002 46,702
Total non-current assets 41,095 78,787
Current assets
Trade and other receivables 13 6,096 4,711
Interest free loans receivable 12 40,781 42,636
Accrued income 14 4,660 1,018
Cash and cash equivalents 32,525 43,443
Total current assets 84,062 91,808
Total assets 125,157 170,595
Current liabilities
Trade and other payables 15 (17,791) (23,879)
Deferred income relating to interest free loans 16 (43,352) (44,014)
Deferred income 17 (3,653) (1,027)
Total current liabilities (64,796) (68,920)
Non-current liabilities
Deferred income relating to interest free loans 18 (9,856) (46,478)
Deferred income 19 (39) (98)
Deferred tax liability 20 (5,415) (5,941)
Total non-current liabilities (15,310) (52,517)
Total liabilities (80,106) (121,437)
Net assets 45,051 49,158
Funds
Members fund 22
Retained earnings 44,910 49,099
Translation reserve (8) (14)
Funds attributable to members of the company 44,902 49,085
Non-controlling interests 149 73
Total funds 45,051 49,158
Signed on behalf of the board
James Smith, Chair Tom Delay, Chief Executive
15 July 2013 15 July 2013
Accounts
Consolidated statement of changes
in total funds
Members
funds
000s
Retained
earnings
000s
Translation
reserve
000s
Total
members
funds
000s
Non-
controlling
interest
000s
Total funds
000s
At 31 March 2011 53,078 (6) 53,072 19 53,091
Retained loss for the year (3,979) (3,979) (85) (4,064)
Subsidiary shares issued for equity-
settled share based payments
262 262
Gain on issue of shares to third
parties
(112) (112)
Loss on acquisition of shares from
third parties
(11) (11)
Currency translation differences
arising in year
(8) (8) (8)
At 31 March 2012 49,099 (14) 49,085 73 49,158
Retained loss for the year (4,189) (4,189) (58) (4,247)
Subsidiary shares issued for equity-
settled share based payments
129 129
Gain on issue of shares to third
parties
5 5
Currency translation differences
arising in year
6 6 6
At 31 March 2013 44,910 (8) 44,902 149 45,051
Accounts
Consolidated cash ow statement
31 March
2013
000s
31 March
2012
000s
Cash ow from operations
Loss before income tax (4,719) (4,559)
Adjustments:
Share of post-tax results under the equity method 4,758 3,817
Change in fair value of investment portfolio 4,838 6,108
Non-cash adjustments in relation to deemed acquisition and disposals of group
undertakings
(2,767) (1,240)
Net discounting adjustment for interest free loans (1,788) (8,339)
Depreciation 182 297
Prot/loss on sale of property, plant and equipment (2,832) 300
Interest receivable (196) (93)
Dividend income (317)
Movement in interest free loans and other working capital balances 27,718 14,995
Movement on accrued and deferred income (33,689) (23,397)
Cash outow from operations (8,495) (12,428)
Tax paid
Net cash outow from operations (8,495) (12,428)
Cash ow from investing activities:
Bank interest received 196 32
Purchase of property, plant and equipment (1,362) (217)
Loan capital repaid on loan receivable 48 160
Net investments made in joint ventures (727) (655)
Receipts from disposal of investments 6,067 2,900
Payments to acquire investments (6,645) (3,132)
Dividends received 317
Cash outow from investing activities (2,423) (595)
Decrease in cash and cash equivalents (10,918) (13,023)
Cash and cash equivalents at the start of the year 43,443 56,466
Decrease in cash and cash equivalents (10,919) (13,023)
Cash and cash equivalents at the end of the year 32,525 43,443
Accounts
Notes to the nancial statements
Corporate information
The Carbon Trust is a company registered in England and Wales (number 4190230) limited by guarantee incorporated
in the United Kingdom under the Companies Act 1985. Its registered ofce is 4th Floor, Dorset House, 27-45 Stamford
Street, London, SE1 9NT. The nature of the groups operations and its principal activities are set out in the Directors
report on page 21 and Financial review on pages 30 to 34. The consolidated nancial statements for the year to 31 March
2013 on pages 37 to 64 comprise the nancial statements for the company and its subsidiaries (together referred to as the
group). Separate nancial statements for the company are also presented on pages 66 to 75.
Statement of compliance
These consolidated nancial statements have been prepared in accordance with IFRS, International Accounting Standards
and their interpretations issued or adopted by the International Accounting Standards Board as adopted for use in the
European Union. The company has elected to prepare its parent company nancial statements in accordance with UK
Generally Accepted Accounting Practice (UK GAAP).
These consolidated nancial statements have been prepared in accordance with and in compliance with the Companies Act
1985 (as amended by Companies Act 2006).
1 Accounting policies
Basis of preparation
The consolidated nancial statements have been prepared under the historical cost convention, except for nancial
assets designated as fair value through prot and loss as required by IAS 39 Financial Instruments: Recognition and
Measurement, and interest free loans receivable, that are held at amortised cost. The groups accounting policies applied
in preparing the consolidated nancial statements for the year ended 31 March 2013 are set out below. The consolidated
nancial statements have been prepared on a going concern basis, for further information refer to the Directors report on
pages 21 to 23.
The nancial statements are presented in pounds sterling and all values are rounded to the nearest one thousand pounds
except where otherwise indicated.
Standards issued but not yet effective
The group does not consider that any standards or interpretations issued by the International Accounting Standards
Board not yet applicable will have a signicant impact on the consolidated nancial statements.
Standards issued and effective
The following standards have become effective during the year ending 31 March 2013:
IFRS 1 Government Loans (Amendment)
IFRS 13 Fair Value Measurement
IFRIC 14 Prepayments of a Minimum Funding Requirement (Amendment)
IAS 1 Presentation of Items of Other Comprehensive Income (Amendment)
IAS 19 Employee Benets (Revised)
These standards have no impact on the Carbon Trust reporting.
Basis of consolidation
The consolidated nancial statements comprise the nancial statements of the group and its subsidiaries as at
31 March 2013.
(i) Subsidiaries
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the group obtains control, and
continue to be consolidated until the date when such control ceases. The nancial statements of the subsidiaries are prepared
for the same reporting period as the parent company, using consistent accounting policies. All intra-group balances,
transactions, unrealised gains and losses resulting from intra-group transactions and dividends are eliminated in full.
1 Accounting policies continued
Total comprehensive income within a subsidiary is attributed to the non-controlling interest even if that results in a
decit balance.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.
If the group loses control over a subsidiary, it:
derecognises the assets (including goodwill) and liabilities of the subsidiary
derecognises the carrying amount of any non-controlling interest
derecognises the cumulative translation differences recorded in equity
recognises the fair value of the consideration received
recognises the fair value of any investment retained
recognises any surplus or decit in prot or loss
reclassies the parents share of components previously recognised in other comprehensive income
reclassies the parents share of components previously recognised in other comprehensive income to prot or loss or
retained earnings, as appropriate.
(ii) Joint ventures
The group has an interest in a joint venture, which is a jointly controlled entity, whereby the venturers have a
contractual arrangement that establishes joint control over the economic activities of the entity. The agreement requires
unanimous agreement for nancial and operating decisions among the venturers. The group recognises its interest in
the joint venture using the equity method. The group recognises its proportionate share of the net assets and liabilities
of each of the joint ventures and combines its group balances with the joint venture to account for the total interest
in the joint venture. The share of joint ventures operating results is included in the groups consolidated income
statement. The nancial statements of the joint venture are prepared for the same reporting period as the group.
Adjustments are made where necessary to bring the accounting policies in line with those of the group. Losses on
transactions are recognised immediately if the loss provides evidence of a reduction in the net realisable value of current
assets or an impairment loss.
(iii) Investment in an associate
The groups investment in its associate is accounted for using the equity method. An associate is an entity in which the
group has signicant inuence. Under the equity method, the investment in the associate is carried on the statement
of nancial position at cost plus post acquisition changes in the groups share of net assets of the associate. Goodwill
relating to the associate is included in the carrying amount of the investment and is neither amortised nor individually
tested for impairment. The income statement reects the groups share of the results of operations of the associate.
When there has been a change recognised directly in the equity of the associate, the group recognises its share of any
changes and discloses this, when applicable, in the statement of changes in equity. Unrealised gains and losses resulting
from transactions between the group and the associate are eliminated to the extent of the interest in the associate.
The groups share of the prot of an associate is shown on the face of the income statement. This is the prot
attributable to equity holders of the associate and, therefore, is prot after tax and non-controlling interests in the
subsidiaries of the associate.
The nancial statements of the associate are prepared for the same reporting period as the group. When necessary,
adjustments are made to bring the accounting policies in line with those of the group. After application of the equity
method, the group determines whether it is necessary to recognise an additional impairment loss on its investment in
its associate. The group determines at each reporting date whether there is any objective evidence that the investment
in the associate is impaired. If this is the case, the group calculates the amount of impairment as the difference between
the recoverable amount of the associate and its carrying value and recognises the amount in the share of prot of an
associate in the income statement.
Upon loss of signicant inuence over the associate, the group measures and recognises any retaining investment at its
fair value. Any difference between the carrying amount of the associate upon loss of signicant inuence and the fair
value of the retained investment and proceeds from disposal is recognised in prot or loss.
Accounts
continued
Accounts
Associates are those entities in which the group has the ability to exert signicant inuence, but not control, over the
nancial and operating policies. Investments that are held as part of the groups investment portfolio are not accounted
for as associates even if the group has signicant inuence over these companies. This treatment is permitted by IAS 28
Investments in Associates for venture capital organisations.
Key judgments and uncertainties
In preparing these nancial statements to conform to generally accepted accounting principles and by applying the
groups accounting policies, management are required to use judgments in applying estimates and assumptions that
affect the reported amounts of assets and liabilities, and income and expenses during the period. The key areas of
judgment and uncertainty affecting the consolidated nancial statements are as follows:
(i) Financial assets investment portfolio
Grant income utilised for the purchase of investments held within the groups investment portfolio is recorded as
income in the period in which the investment is made as there is no expected useful life of the investments. This
treatment results in a prot equal to the initial cost of the investment held on the balance sheet. Unlisted investments
held within the investment portfolio are not traded on an active market and therefore judgment is used in determining
the fair value of these investments.
(ii) Interest free loans receivable
Interest free loans receivables are held at amortised cost, that requires the selection of an appropriate discount rate. In
addition, a provision for impairment of these receivables is established when management estimate that the group will
not be able to recover all amounts owed.
The groups accounting policies, all of which have been applied consistently throughout the period and the previous
period, are as follows:
(a) Revenue
Revenue is recognised to the extent that it is probable that the economic benets will ow to the group and revenue can
be reliably measured. Revenue is measured as the fair value of the consideration received excluding discounts, rebates,
value added taxes, and sales taxes. The following conditions must be met before revenue is recognised:
(i) Grant income
Grant income represents non bid-for funding from government departments and Non Departmental Public Bodies
(NDPBs).
Grant income is recognised in the income statement to match with the expenditure that it is funding. Accordingly,
grants utilised for the purchase of tangible xed assets are treated as deferred income and released to the income
statement over the expected useful lives of the assets concerned. Where grant income is received in advance of the
related expenditure being incurred, it is treated as deferred income and held in the balance sheet. The deferred income
is released to the income statement when the related expenditure is incurred. Where grant income is pledged, but has
not yet been received in cash when the related expenditure is incurred, the grant is recognised on the balance sheet as
accrued income.
income in the period in which the investment is made as there is no expected useful life of the investment. This
treatment results in a prot equal to the initial cost of the investment held on the balance sheet.
Non-repayable grant income used for making interest free loans is recorded as income in the period in which the loan
offer becomes irrevocable, and where there is a potential future obligation to repay grant funds used for making interest
free loans, that grant funding is classied as deferred income relating to interest free loans and held on the balance sheet.
Accounts
(ii) Other income
Other income is accounted for in the period in which it is receivable, and is measured at the fair value of the
consideration received or receivable when services are rendered and represents amounts receivable for services
provided in the normal course of business net of discounts and VAT. Bid-for income receivable from government
departments and NDPBs is included in other income.
(b) Property, plant and equipment
Property, plant and equipment are shown at cost less depreciation and any provision for impairment.
Depreciation is provided as follows:
Fixtures and ttings straight-line basis over ve years or life of the related property lease term if less
Ofce equipment and computers straight-line basis over three years.
(c) Financial assets investment portfolio
(i) Recognition and measurement
Investments held within the groups investment portfolio are recognised or derecognised on the date when the
purchase or sale of the investment becomes unconditional. The group manages its investment portfolio with a view to
realising the future value of the investments and the receipt of dividends. All quoted and unquoted equity investments
are classied as fair value through prot and loss in accordance with IAS 39 Financial Instruments Recognition
and Measurement, and are carried in the balance sheet at fair value. All unlisted investments are held at fair value
by applying the International Private Equity and Venture Capital (IPEVC) valuation guidelines. Quoted equity
investments are measured at each balance sheet date by reference to a quoted market price. Any acquisition costs
arising from the purchase of equity investments are expensed immediately in the income statement.
(ii) Income and losses
Investment income arises from the sale of investments within the investment portfolio, being the difference between
the net sale proceeds and the carrying value at the start of the accounting period, and unrealised prots or losses on
the revaluation of investments, being the movement in the fair value of investments between the start and end of the
accounting period. These are included within nance costs or income as appropriate in the income statement.
(d) Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, cash held at bank with immediate access and bank deposits with
maturities of three months or less from the date of inception.
(e) Foreign currency
(i) Foreign currency transactions
Transactions in foreign currencies are translated into sterling at the exchange rates prevailing on the date of the
transactions. At each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies
are retranslated at the rates prevailing at the balance sheet date. Exchange differences are recognised in the income
statement. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the
rates prevailing at the date when the fair value is determined. Non-monetary items that are measured in terms of
historical cost in a foreign currency are not retranslated.
(ii) Financial statements of foreign operations
Assets and liabilities of foreign operations are translated at the exchange rate prevailing at the balance sheet date.
Income and expenses of foreign operations are translated at average exchange rates. Exchange differences arising
on retranslation are recognised directly in equity and are shown as a separate component of equity.
(f) Income tax
Similarly no tax deduction is available for expenses funded out of grant income. Certain of the groups sources of
income will, however, be taxed under normal principles including bank interest, prots from investments, and activities
that are treated as a trade. For these activities, income tax is provided at amounts expected to be paid (or recovered)
using the tax rates and laws that have been enacted or substantially enacted by the balance sheet date.
continued
Accounts
(g) Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets
and liabilities in the nancial statements and the corresponding tax bases used in the computation of taxable prot,
and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all
taxable temporary differences and deferred tax assets are only recognised to the extent that it is probable that taxable
prots will be available against which deductible temporary differences can be utilised. Such assets and liabilities are
not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition
(other than in a business combination) of other assets and liabilities in a transaction that affects neither the tax prot
nor the accounting prot.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and
associates, and interests in joint ventures, except where the group is able to control the reversal of the temporary
difference and it is probable that the temporary difference will not reverse in the foreseeable future. The carrying
amount of deferred tax assets is reviewed at each balance sheet date and is reduced to the extent that it is no longer
probable that sufcient taxable prots will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the
asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or
credited directly to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes levied by the same taxation authority and the group intends
to settle its current tax assets and liabilities on a net basis.
(h) Pension costs
The group makes contributions directly to the providers of employees personal pension plans, which are money
purchase schemes. Contributions are charged to the income statement when payable. Differences between
contributions payable in the period and contributions actually paid are shown either as accruals or prepayments in
the consolidated balance sheet.
(i) Operating leases
Amounts payable in respect of operating leases are charged to the income statement on a straight-line basis over the
lease term.
(j) Interest free loans
Loans made under the interest free Energy Efciency Loans Scheme are shown in the balance sheet at the present
value of the amounts receivable. The present value represents the value of each loan discounted over the repayment
period using the effective interest rate method using a discount rate that reects the premium for the risk associated
with unsecured loans. The charge and credit arising from the discounting of the receivables and the unwinding of
the discount are disclosed within nance income and nance cost in the income statement. An equivalent liability
is established as deferred income relating to the grant used to fund interest free loans that may potentially become
repayable (see note 1a(i)).
Appropriate allowances for estimated irrecoverable amounts are recognised in the income statement when there is
objective evidence that the asset is impaired. The allowance recognised is measured as the difference between the assets
carrying amount and the present value of estimated future cash ows discounted at the effective interest rate computed
at initial recognition.
(k) Liabilities for goods and services
Liabilities are recognised at the date on which the goods and services are receivable by the group. Trade payables
represent goods and services invoiced and not yet paid. Where the group is not yet in receipt of a supplier invoice
and there is an obligation to pay for goods and services receivable, the amount is recognised as an accrual.
2 Revenue
Revenue comprises grant and other income
31 March
2013
000s
31 March
2012
000s
Grant income 22,833 44,046
Other income 8,770 10,182
Total revenue 31,603 54,228
Grant income is received from the following funders:
31 March
2013
000s
31 March
2012
000s
DECC 12,300 52,709
DECC funding provided for interest free loans 5,600
Scottish Government 4,434 4,061
Welsh Government 3,455 6,600
Invest Northern Ireland 1,507 1,596
Other grant 677
Total grant receipts and grant receivable 22,373 70,566
Movement in deferred grant income 460 (26,520)
Total grant income 22,833 44,046
The movement in deferred income arises as cash grant received in the year to 31 March 2013 settles accrued grant
income recorded in the year to 31 March 2012.
Other income is analysed as follows:
31 March
2013
000s
31 March
2012
000s
Commercial sales 6,015 5,623
Partner contribution 2,253 3,804
Licence fees and other income 502 755
Total other income 8,770 10,182
Accounts
continued
The group operates through four principal areas of activity: advice, certication, technology and devolved
administrations programmes.
Revenue by activity
31 March
2013
000s
31 March
2012
000s
Advice 2,936 2,379
Certication 1,951 2,768
Technology 16,511 22,552
Devolved administrations programmes and central income 10,205 26,529
Total revenue 31,603 54,228
3 Analysis of programme expenditure
Included in programme expenditure are:
31 March
2013
000s
31 March
2012
000s
Depreciation on property, plant and equipment 182 297
Operating lease rentals 356 491
Net foreign exchange losses 14 23
During the year the group obtained the following services from the companys
auditor:
Audit fees pursuant to legislation 139 123
Audit related assurance services 21 47
Taxation compliance services 29 29
Restructuring costs incurred during the year were 0.2 million (2011/12 2.2 million).
Accounts
Accounts
continued
4 Finance income
31 March
2013
000s
31 March
2012
000s
Bank interest receivable 239 137
Unwinding of discount on interest free loans 2,575 8,788
Gain on deemed disposal of group undertakings 2,767 1,775
Dividend income received (see note 9) 317
5,581 11,017
5 Finance costs
31 March
2013
000s
31 March
2012
000s
Change in fair value of investment portfolio and impairment of associates (see notes
9 and 10)
2,006 6,108
Loss on changes in interests in group undertakings 317
Discount on interest free loans 801 450
Loss on disposal of property, plant and equipment 300
Bank charges and interest expense 43 45
2,850 7,220
Accounts
6 Staff costs and directors remuneration
31 March
2013
000s
31 March
2012
000s
Wages and salaries 10,040 9,834
Social security costs 1,238 1,316
Pension costs 628 633
11,906 11,783
The average number of group employees over the year (including executive directors) was 166 (2011/12 178).
The number of group employees as at 31 March 2013 was 166 (2012 180).
The staff costs include the following in respect of the highest paid director:
31 March
2013
000s
31 March
2012
000s
Short term benets
Emoluments 277 253
Company contributions to money purchase pension schemes 41 42
318 295
The remuneration of the executive directors, who are the key management personnel of the group, was as follows:
31 March
2013
000s
31 March
2012
000s
Short term benets
Emoluments 476 476
Company contributions to money purchase pension schemes 74 83
550 559
Te remuneration of the non-executive directors was as follows:
31 March
2013
000s
31 March
2012
000s
Emoluments 101 158
Total directors emoluments 651 717
2013
No
2012
No
Number of directors in money purchase pension scheme 2 2
Accounts
continued
7 Tax
(a) Analysis of tax charge for the year:
31 March
2013
000s
31 March
2012
000s
Current tax:
UK corporation tax 54 104
Deferred tax:
Current year (526) (599)
Total income tax credit (472) (495)
(b) Factors affecting tax charge for the year:
The difference between the total tax shown above and the amount calculated by applying the standard rate of UK
corporation tax to the (loss) before tax is as follows:
31 March
2013
000s
31 March
2012
000s
Loss on ordinary activities before taxation (4,719) (4,559)
Loss on ordinary activities multiplied by the 2013 UK corporation tax company rate of
24% (2012 26%)
(1,133) (1,185)
Effects of:
Expenses not deductible for tax purposes 5,893 12,188
Non-taxable income (6,571) (12,933)
Tax losses due to non-controlling interests and joint venture partners 1,142 993
Tax losses carried forward not recognised 197 442
Total income tax credit (472) (495)
(c) Deferred tax:
31 March
2013
000s
31 March
2012
000s
Adjustments to tax charge in relation to prior years -
Deferred tax on nancial assets held at fair value (note 20) (526) (599)
Total deferred tax credit (526) (599)
Factors affecting future tax charges
As at the balance sheet date the prevailing corporation tax rate that has been substantively enacted is 23%, for that
reason the unrecognised deferred tax asset carried forward has been calculated at 23% (2011/12 24%).
A reduction to the main rate of UK corporation tax to 23% from 1 April 2013 was enacted in July 2012. In addition,
reductions to the main rate of UK corporation tax to 21% effective from 1 April 2014 and to 20% effective from 1
April 2015 have been substantively enacted in July 2013. As these rates were not substantively enacted at the balance
sheet date, their impact is not reected in these nancial statements.
The phased reduction to the main rate of UK corporation tax is expected to have an impact on the future income
statement tax charge of the company as a lower tax rate is applied to taxable prots.
Accounts
8 Property, plant and equipment
Fixtures and
ttings
000s
Ofce equipment
and computers
000s
Plant and
machinery
000s
2013
Total
000s
Cost
Beginning of year 527 806 1,333
Additions 596 35 730 1,361
Transfers (300) 300
End of year 823 841 1,030 2,694
Depreciation
Beginning of year (119) (770) (889)
Charge for the year (84) (41) (57) (182)
Transfers 25 (25)
End of year (178) (811) (82) (1,071)
Net book value at 31 March 2013 645 30 948 1,623
Fixtures and
ttings
000s
Ofce equipment
and computers
000s
Plant and
machinery
000s
2012
Total
000s
Cost
Beginning of year 1,168 1,109 2,277
Additions 217 217
Disposals (858) (303) (1,161)
End of year 527 806 1,333
Depreciation
Beginning of year (488) (964) (1,452)
Charge for the year (189) (108) (297)
Disposals 558 302 860
End of year (119) (770) (889)
Net book value at 31 March 2012 408 36 444
At 31 March 2013 the gross carrying value of fully depreciated property, plant and equipment still in use by the group
was 849,000 (2011/12 678,000).
Accounts
continued

9 Financial assets investment portfolio
Financial assets relate to equity investments, convertible loan stock and non-convertible loans receivable held as part of
the groups venture capital portfolio, which are classied as fair value through prot and loss, in accordance with IAS
39 Financial Instruments: Recognition and Measurement. The split between equity investments and non-convertible
loan receivables is as follows:
31 March
2013
000s
31 March
2012
000s
Equity investments and convertible loan stock 25,222 26,533
Non-convertible loans receivable 515 1,023
25,737 27,556
(a) Equity investments of more than 20% of the issued share capital and convertible loan stock are held in the
following companies:
31 March
2013
Holding %
31 March
2012
Holding %
ACAL Energy Limited 27.8 25.7
AeroThermal Group Limited 27.7 27.6
AAD (South West) Limited 30.2 30.2
Concurrent Thinking Limited 13.8 26.5
These companies form part of the group investment portfolio. The group does not seek to exert inuence over the
companies activities and so does not consolidate their results.
The holding percentages include the total interest in the entity. All unlisted investments are held at a fair value using
IPEVC valuation guidelines with the exception of the New Earth Recycling and Renewables (Infrastructure) plc
(NERR) and Low Carbon Workplace LP that have been valued on a net asset basis during the year and ITM Power
plc and Ilika plc that are held at the AIM listed price. Listed investments are valued at their quoted price on 2 April
2013, as 31 March fell on Easter Sunday, and the markets were closed on 1 April 2013.
The movement in the value of the equity investments during the year is as follows:
2013
000s
2012
000s
At 1 April 26,533 26,093
Additions at cost 6,645 2,960
Transfer from interests accounted for using the equity method (note 10) 742
Disposals (3,797) (2,900)
Change in fair value recognised in the income statement using
IPEVC valuation guidelines (under nancial income)
(4,166) (234)
Change in value recognised using market data (52)
Change in fair value recognised using valuation of net assets 59 (128)
At 31 March 25,222 26,533
Accounts
9 Financial assets investments portfolio continued
Additions in the year relate to investments in the equity shareholdings of ACAL Energy Limited, Ilika plc, ITM Power
plc, Intamac Systems Limited and Concurrent Thinking Limited. Included in additions is 3,029,000 relating to the
acquisition of units in NERR. This represents the proceeds from the sale of the investment in New Earth Solutions
Group Limited to NERR that were used to invest in NERR units.
During the year, the group disposed of its shareholding in Arieso Limited for consideration of 3,551,000.
The group received dividend income of nil from its investment portfolio and from its interest in Carbon Trust Fund
Management Holdings Limited during the year ended 31 March 2013 (2011/12 317,000).
Of the above net change in fair value recognised in the income statement during the year, 4,294,000 (2011/12
234,000) relates to the amount estimated using the IPEVC valuation guidelines using assumptions that are not
supported by prices from an observable current market.
Investments valued on a net asset basis.
2013
000s
2012
000s
At 1 April 1,972 2,100
Additions at cost 3,029
Change in fair value recognised using valuation of net assets 59 (128)
At 31 March 5,060 1,972
Market valuation.
2013
000s
2012
000s
At 1 April 2013
Additions at cost 2013 1,249
Change in valuation (52)
At 31 March 2013 1,197
Accounts
continued

9 Financial assets investment portfolio continued
(b) Non-convertible loans receivable
The group holds interest bearing non-convertible loans with 4Energy Limited, AeroThermal Group Limited and
Oxsensis Limited. Repayments of 48,000 on the loan to 4Energy Limited were made in the current year. Interest had
been accrued on the loan to AeroThermal Group Limited.
2013
000s
2012
000s
At 1 April 1,023 952
Additions at cost 170
Impairment of loan note (460)
Loan note repaid (48) (160)
Accrued interest on loans 61
At 31 March 515 1,023
10 Interests accounted for using the equity method
At 31 March 2013 the groups principal interests in joint ventures, which were directly and indirectly held and included
in the consolidated nancial statements, are as follows:
31 March
2013
000s
31 March
2012
000s
Interests in associates
Interests in joint ventures 2,733 4,085
Total interests accounted for using the equity method 2,733 4,085
The groups share of post-tax results from its associates and joint ventures accounted for using the equity method
is as follows:
31 March
2013
000s
31 March
2012
000s
Share of associates prots 1,070
Restriction on liability for joint venture losses 404 811
Share of joint ventures losses (5,162) (5,698)
Total share of results from associates and joint ventures (4,758) (3,817)
Accounts
10 Interests accounted for using the equity method continued
(a) Interest in associates
The groups interests in associates are as follows:
Salix Finance Limited (Salix Finance)
The group has a 25% (2011/12 25%) interest in Salix Finance, a UK company limited by guarantee, that runs
co-funded invest to save schemes and an interest free loan scheme for energy efcient equipment for public sector
organisations. The groups interest is limited to a 25% voting share, with a nil book cost.
The group has entered into negotiations with DECC and Salix Finance to transfer its receivables 16.4 million
(2011/12 29 million) from Salix Finance to DECC in return for a release from all obligations to repay DECC
16.4 million (2011/12 29 million). As part of this agreement the group will give up its membership of Salix
Finance. The group retains no effective interest in the results, assets and liabilities of Salix Finance that have been
treated as fully impaired. There has been no change in this valuation during the nancial year. In 2011/12, the Carbon
Trust entered into a contract with DECC under which DECC took over all supervisory control of Salix Finance. As a
consequence we have not consolidated the results of Salix Finance as the Carbon Trust has no inuence or control.
(b) Interests in joint ventures
The groups interests in joint ventures in 2012/13 were as follows:
Holding
%
2013
Holding
%
2012
Country of
incorporation
Connective Energy Limited 40.0 UK
Insource Energy Limited 64.8 64.8 UK
Partnerships for Renewables Limited 37.3 43.0 UK
The Solar Press UK Limited 75.5 38.3 UK
Sackville LCW (GP) Limited 33.3 33.3 UK
Eight19 Limited 37.6 37.6 UK
Connective Energy Limited (Connective)
The group, through its subsidiary Carbon Trust Enterprises Limited (CTEL), held an investment in Connective. The
company was wound up during the year.
Insource Energy Limited (ISE)
The group, through its subsidiary CTEL, held an investment of 2,864,622 at cost in the equity of ISE, that represents
64.8% of the share capital of ISE. ISE was managed through a joint venture agreement with partner SSE Venture Capital
Limited (SSE) that provides for equal voting rights on all material matters. Due to the contractual arrangements within
the joint venture agreement, the group accounted for its 64.8% interest in the net assets of ISE under the equity method as
a joint venture. Subsequent to the year end, SSE took full ownership of the company for a nominal sum. The investment
has been written down to nil.
Partnerships for Renewables Limited (PfR)
The group, through its subsidiary CTEL, owns 37.34% (2011/12 42.97%) of PfR, a joint venture with InfraRed
Environmental Infrastructure (InfraRed) (formerly HSBC Environmental Infrastructure) and OP Trust Infrastructure
Europe II Inc (OPT). 1,505,264 of A shares were subscribed for by CTEL in the year (2011/12 550,000). At 31
March 2013, CTEL had an investment in PfR of 10,924,733 at cost (2011/12 10,924,733) being 10,899,997 of
ordinary share capital (2011/12 9,394,733) issued at par and interest free unsecured convertible loan notes with a
maturity date of 17 March 2020, to the value of 24,736 (2011/12 1,530,000).
The Solar Press UK Limited (Solar Press)
At 31 March 2013 the group, through its subsidiary CTEL, held an investment of 2,389,824 at cost in the equity of
Solar Press, a joint venture established with C-Change UK Limited to develop and commercialise organic photovoltaic
technology. The groups investment represents a 75.5% interest in Solar Press in addition to a 0.75 million loan note
bearing 9% interest.
Accounts
continued

Eight19 Limited (Eight19)
At 31 March 2013 the group, through its wholly owned subsidiary, CTEL, held an investment of 1,700,000 at cost
in the ordinary share capital of Eight19, representing 37.6% of its shareholding. Eight19 is a joint venture between
Rhodia SA, the University of Cambridge and founder members. Eight19 carries out research and development in
organic photovoltaic materials. During the year a bridging loan of 75,000 was provided to the company, 26,000 of
which was returned during the year. The company was unable to raise additional nancing and the investment was fully
impaired. On 17 April 2013, all existing shares were sold to a new investor for a nominal sum, and CTEL converted its
existing loan stock to equity.
Sackville LCW (GP) Limited (Sackville)
At 31 March 2013 the group, through its subsidiary, CTEL, held an investment of 50 in the equity of Sackville, a
joint venture established with Stanhope plc and Threadneedle Property Investments Limited. Sackville is the general
partner of the Threadneedle Low Carbon Workplace Trust, a fund set up to raise 350 million for low carbon property
refurbishments. The groups investment represents a 33.3% interest. Sackville was incorporated on 1 March 2010.
As at 31 March 2013, the groups interest in Sackville is limited to a 400,000 loan, that has been included in
other receivables.
The directors do not deem that any of the joint ventures are material to the group and therefore only summarised
nancial information is provided below.
The impact that the joint ventures had on the results for group can be seen below. No dividends were received and
there were no additional investments made during the year.
The main risk associated with the joint ventures to the group is that the capital investments made for research into
innovative technology do not yield the expected returns. Directors have made impairments to the investment values in
the period where there is little or no likelihood of future returns.
The nancial information of these joint ventures for the year is summarised below:
Insource
000s
PfR
000s
Solar
Press
000s
Eight19
000s
Total
2013
000s
Total
2012
000s
Share of joint ventures operating results (581) (3,102) (986) (493) (5,162) (5,698)
Share of joint ventures balance sheets:
Non-current assets 2,659 7,797 378 290 11,124 3,408
Current assets 372 1,009 211 121 1,713 2,434
Share of gross assets 3,031 8,806 589 411 12,837 5,842
Non-current liabilities (3,529) (6,319) (567) (10,415) (3,502)
Current liabilities (1,064) (491) (108) (185) (1,848) (1,701)
Share of gross liabilities (4,593) (6,810) (675) (185) (12,263) (5,203)
Share of net (liabilities)/assets (1,562) 1,996 (86) 226 574 639
Group balances with joint ventures 177 24 750 49 1,000 2,635
Restriction on liability for joint venture losses 1,385 1,385 811
Impairment of investment (226) (226)
Total interests in joint ventures 2,020 664 49 2,733 4,085
Accounts
None of the joint ventures had any material revenue, interest or tax during the period (2011/12 nil).
Reconciliation of carrying value in joint ventures:
Insource
000s
PfR
000s
Solar
Press
000s
Eight19
000s
Total
000s
Value at 1 April 2012 1,962 1,404 719 4,085
Additions 177 639 49 865
Gain/(loss) on deemed disposal 3,160 (393) 2,767
Share of results for the period (581) (3,102) (986) (493) (5,162)
Restriction on liability for joint venture losses 404 404
Impairment (226) (226)
Value at 31 March 2013 2,020 664 49 2,733
11 Subsidiaries
The following represent the signicant subsidiaries of the group. Please refer to note 6 in the companys separate
nancial statements for more details.
%
Holding
2013
%
Holding
2012
Country of
incorporation and
registration
Directly held 100 100 UK
Carbon Trust Enterprises Limited 100 100 UK
Carbon Trust Investments Limited 100 100 UK
Carbon Trust Fund Management Holdings Limited 100 100 UK
Carbon Trust International Limited 100 100 UK
Indirectly held
Carbon Trust Advisory Limited (previously Carbon Trust
Footprinting Company Limited)
100 100 UK
Carbon Trust Resources Limited (previously Carbon Trust
Advisory Services Limited)
100 100 UK
Low Carbon Workplace Limited 100 100 UK
Future Blends Limited 93.3 93.2 UK
Carbon Trust Certication Limited 100 100 UK
Carbon Trust Implementation Services Limited 100 100 UK
Carbon Trust LLC 100 100 USA
All subsidiaries of the group have a period end of 31 March.
Accounts
continued

12 Interest free loans receivable
31 March
2013
000s
31 March
2012
000s
Non-current loans repayable to DECC 7,262 25,015
Non-current loans funded by Invest Northern Ireland 2,593 3,072
Non-current repayable grant made to Salix Finance 16,498
Non-current other loans 1,147 2,117
Current loans repayable to DECC 17,321 26,587
Current loans funded by Invest Northern Ireland 5,082 2,696
Current repayable grant made to Salix Finance 16,394 12,388
Current other loans 1,984 966
51,783 89,339
Loans receivable comprise balances due under the groups interest free Energy Efciency Loans Scheme which are
held at amortised cost, as described in note 1(j). At 31 March 2013 the gross undiscounted value of the interest free
loans receivable is 62.2 million (2011/12 100.0 million). The fair value of the interest free Energy Efciency Loans
Scheme is consistent with their carrying value. 3.2 million of offers made to applicants under the interest free Energy
Efciency Loans Scheme had not been drawn down by recipients at 31 March 2013 (2011/12 1.8 million).
Discount rates of between 5.16% to 6.84% have been applied to the interest free loans receivable. This is calculated
using the EU state aid rate plus a premium of 4% for unsecured loans.
13 Trade and other receivables
31 March
2013
000s
31 March
2012
000s
Trade receivables 5,316 3,447
Prepayments 780 1,187
Other taxes 77
6,096 4,711
14 Accrued income
Accrued income consists of grant income due from funding providers:
31 March
2013
000s
31 March
2012
000s
DECC 4,238 33
Invest Northern Ireland 308 425
Welsh Government 97 513
Scottish Government 17 47
4,660 1,018
Accounts
15 Trade and other payables
31 March
2013
000s
31 March
2012
000s
Trade payables 5,248 5,961
Other taxes and social security 478 247
Accruals 12,065 17,671
17,791 23,879
Included in accruals are 3.2 million (2011/12 1.8 million) relating to constructive obligations to make interest free loans
under the groups interest free Energy Efciency Loans Scheme, and 0.4 million provision (2011/12 nil) for obligations
under the OWA.
Provisions
000s
Value at 1 April 2012
Amount raised 350
Amount used
Value at 31 March 2013 350
The Carbon Trust as a member of OWA has an irrevocable commitment to meet costs incurred within the OWA nancial
year concluding 30 June. These amounts are certain to be used.
16 Current deferred income relating to interest free loans
Deferred income relating to interest free loans relates to potentially repayable grant income received by the company used
to make interest free loans. The balance due to DECC is being repaid, and the balance due to Invest Northern Ireland is
retained in the business to fund further loans. It is made up as follows:
31 March
2013
000s
31 March
2012
000s
DECC funded Interest free loans 21,221 27,059
Repayable grant made to Salix Finance 16,397 12,415
Invest Northern Ireland funded Interest free loans 5,734 4,540
43,352 44,014
17 Current deferred income
Deferred income relates to grant receipts and corporate partner receipts in advance of the related costs being incurred.
It is made up as follows:
31 March
2013
000s
31 March
2012
000s
DECC 885
DEFRA 84 84
FCO 12 12
Department for Transport 46 46
OWA Corporate Partners 3,423
Other deferred income 88
3,653 1,027
Accounts
continued

18 Non-current deferred income relating to interest free loans
Deferred income relating to interest free loans relates to potentially repayable grant income received by the company
used to make interest free loans. The balance due to DECC is being repaid, and the balance due to Invest Northern
Ireland is retained in the business to fund further loans. It is made up as follows:
31 March
2013
000s
31 March
2012
000s
DECC funded Interest free loans 7,262 26,818
Repayable grant made to Salix Finance 16,501
Invest Northern Ireland funded Interest free loans 2,594 3,159
9,856 46,478
19 Non-current deferred income
Deferred income of 39,000 (2011/12 98,000) relating to property, plant and equipment funded by grant income
will be released to grant income over the expected useful lives of the assets concerned.
20 Deferred tax liability
2013
000s
2012
000s
At 1 April 5,941 6,540
Credited to the income statement (526) (599)
At 31 March 5,415 5,941
There are no deferred tax assets offset against the liabilities recognised above. The deferred tax liability relates to the
equity investments held in the groups venture capital portfolio.
There is an unrecognised deferred tax asset of 4.4 million at 31 March 2013 (2011/12 4.7 million) in respect of
losses carried forward. This deferred tax asset has not been recognised on the basis that there is insufcient evidence of
taxable prots arising in the future against which it could be offset.
Accounts
21 Financial risk management and nancial instruments
Financial risk factors
(i) Foreign currency risk
At the present time the groups exposure to foreign currency risk is minimal due to limited overseas operations.
(ii) Interest rate risk
The company is primarily grant funded in advance and has no external borrowings, so its interest rate risk is limited
to interest earned on cash balances. The group earns interest income at variable rates on its cash balances. The interest
income is sensitive to changes in interest rates receivable on cash balances. For example, based on the year end cash
balance of 32.5 million (2011/12 43.4 million), a 1% increase in the interest rate would have resulted in an
additional 0.3 million of interest income (2011/12 0.4 million) on an annualised basis.
(iii) Credit risk
The groups principal nancial assets are cash balances, interest free loan receivables, trade and other receivables and
venture capital investments. All the cash balances held by the group are invested in large UK based nancial organisations.
The main credit risk the group faces is in relation to its interest free Energy Efciency Loans Scheme. This risk is actively
managed with formal credit checking procedures and allowances for impairment are made where appropriate. Following
discussions with DECC, to whom the Carbon Trust remits all loan payments received from loan debtors in England, we
have ceased to provide a general provision for debtors in arrears. Our bad debt provisioning policy is restricted to provide
for loans in administration and where, in the opinion of management, recovery is not possible.
The maximum risk that the group is exposed to is limited to the carrying value of the interest free loan receivable
balances at 31 March 2013.
The group anticipates that net loan receivables will be repaid in line with the repayment terms of current loan
agreements. Where monies are received, these will then be used to settle any obligation to the original grant funder,
where funded by DECC, or used to fund further loans, where funded by Invest Northern Ireland.
The movement in the provision for impairment for interest free loans receivables is as follows:
2013
000s
2012
000s
At beginning of the year 7,426 8,205
Charge for the year specic provision 1,551 2,998
(Credit) for the year change in the basis of provisioning (3,777)
At end of the year 8,977 7,426
As at 31 March 2013 the analysis of loans receivable that were past due but not impaired is as follows:
31 March
2013
000s
31 March
2012
000s
Neither past due or impaired 51,402 87,733
Less than 60 days old 381 1,606
Total 51,783 89,339
Accounts
continued

21 Financial risk management and nancial instruments continued
(iv)Liquidity and cash management
As the company is primarily grant funded in advance it has limited liquidity and cash ow risk. The group has some
of its own funds generated from investment sales, loan repayments and commercial prots that are held for future
reinvestment. Cash levels are monitored to ensure sufcient resources are available to meet the groups requirements.
Cash surpluses are placed on term deposits to manage liquidity whilst optimising the rate of return on cash resources,
giving due consideration to risk.
(v) Equity price risk
The group is exposed to uctuations in the fair value of its venture capital portfolio through its income statement as a
result of changes in the outcome of the valuation guidelines applied per note (1c). A 10% decrease or increase to this
valuation as at 31 March 2013 would result in a decrease of 2.6 million and an increase of 2.6 million respectively to
the fair value (2011/12 2.8 million and 2.8 million respectively). The group currently holds two listed investments,
Ilika plc and ITM Power plc, in its investment portfolio. Low Carbon Workplace LP is valued at net asset value, the
latest valuation being incorporated in these nancial statements. NERR is a fund. The units in the fund are valued
on a monthly basis, the latest valuation less an appropriate discount for lack of liquidity is included in these nancial
statements.
(vi) Capital risk management
As a company limited by guarantee, the company is unable to distribute funds to its members and any prots
are reinvested in the business. Due to the activities of the group there is no current general business need for any
borrowings. As such, the capital risk management policy of the group is limited to liquidity management and
compliance with any restrictions included under the terms of the grant offers.
(vii) Categories of nancial instruments
Details of the signicant accounting policies and methods adopted, including the criteria for recognition, the basis of
measurement and the basis on which income and expenses are recognised in respect of each class of nancial asset and
liability are disclosed in note 1 to the nancial statements.
Book
value
000s
31 March
2013
Fair value
000s
Book
value
000s
31 March
2012
Fair value
000s
Financial assets
Trade receivables 3,875 3,875 4,260 4,260
Interest free loans receivable 51,783 51,783 89,339 89,339
Cash and cash equivalents 32,525 32,525 43,443 43,443
Investment portfolio 25,222 25,222 26,533 26,533
Non-convertible loans 515 515 1,023 1,023
Total nancial assets 113,920 113,920 164,598 164,598
Financial liabilities
Trade payables 5,248 5,248 6,774 6,774
Deferred income 56,353 56,353 91,617 91,617
Total nancial liabilities 61,601 61,601 98,391 98,391
Accounts
21 Financial risk management and nancial instruments continued
(vii) Fair value of nancial instruments
The following table provides an analysis of nancial instruments that are measured subsequent to initial recognition at
fair value, grouped into levels 1 to 3 based on the degree to which the fair value is observable.
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets.
Level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 that
are observable for the asset or liability, either directly or indirectly.
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or
liability that are not based on observable market data.
At 31 March 2013
Level 1
000s
Level 2
000s
Level 3
000s
Total
000s
Financial assets
Investment portfolio 1,197 5,060 19,480 25,737
22 Members fund
The 10 (2011/12 13) members of the company at the end of the year are the Secretary of State for Business,
Innovation and Skills; the First Minister of the Scottish Parliament; the Welsh Ministers; the Minister for Enterprise,
Trade and Investment for the Northern Ireland Executive; and the 6 (2011/12 8) non-executive directors who are not
representatives of government departments or bodies.
The members fund at 31 March 2013 was nil (2011/12 nil). Each member is required to pay an amount not
exceeding 1 only if the Carbon Trust is wound up whilst he or she is a member, or within one year after ceasing to be
a member. This payment is in settlement of the Carbon Trusts debts and liabilities contracted before he or she ceased
to be a member, and of the costs, charges and expenses of winding up, and for the adjustment of the rights of the
contributors among themselves.
Accounts
continued

23 Financial commitments
At 31 March the groups total commitments for future minimum lease payments under non-cancellable operating
leases relating to property leases and ofce equipment were as follows:
31 March
2013
000s
31 March
2012
000s
Due within a year 220 272
Due between one and ve years 88 113
308 385
The property leases relate to:
Dorset House, London; Orion House, Enterprise Technology Park, East Kilbride; and Milton Park, Abingdon;
(2011/12 Dorset House, London; Albion House, Nantgarw, Cardiff; Orion House, Scottish Enterprise Technology
Park, East Kilbride, Unit 9 Innovation Centre, Belfast).
Each such lease provides for the lessee to pay all insurance, maintenance and repair costs.
At 31 March 2013 the group had commitments to pay nil in relation to Entrepreneurs Fast Track grant projects
(2011/12 2.1 million in relation to 14 projects).
24 Related party transactions
During the year the group provided 2.25 million (2011/12 3.5 million) to grant fund Salix Finance, an associate of
the group.
The group charged service fees of 199,000, 36,000 and 10,000 to PfR, Solar Press and Eight19 respectively
(2011/12 191,000, 36,000 and 10,000 respectively). The group also charged PfR 32,000 (2011/12 34,000)
for director services during the year. At 31 March 2013 PfR held a payable balance with CTEL of 107,000
(2011/12 28,000), Solar Press held a balance with CTEL of 22,000 (2011/12 11,000) and Eight19 held a
payable balance with CTEL of 6,000 (2011/12 9,000).
Accounts
Independent auditors report to the
members of the Carbon Trust
We have audited the parent company nancial statements of the Carbon Trust for the year ended 31 March 2013 that
comprise the company balance sheet and the related notes 1 to 13. The nancial 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 companys 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 companys 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 company and the companys members as a
body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the Directors responsibilities statement set out on page 22 the directors are responsible
for the preparation of the parent company nancial statements and for being satised that they give a true and fair
view. Our responsibility is to audit the parent company nancial statements in accordance with applicable law and
International Standards on Auditing (UK and Ireland).Those standards require us to comply with the Auditing
Practices Boards Ethical Standards for Auditors.
Scope of the audit of the nancial statements
An audit involves obtaining evidence about the amounts and disclosures in the nancial statements sufcient to give
reasonable assurance that the nancial 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 parent companys
circumstances and have been consistently applied and adequately disclosed; the reasonableness of signicant
accounting estimates made by the directors; and the overall presentation of the nancial statements. In addition, we
read all the nancial and non-nancial information in the annual report to identify material inconsistencies with the
audited nancial statements. If we become aware of any apparent material misstatements or inconsistencies we consider
the implications for our report.
Opinion on nancial statements
In our opinion the parent company nancial statements:
give a true and fair view of the state of the companys affairs as at 31 March 2013;
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.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Directors report for the nancial year for which the nancial statements
are prepared is consistent with the parent company nancial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to
you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not
been received from branches not visited by us; or
the parent company nancial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors remuneration specied by law are not made; or
we have not received all the information and explanations we require for our audit.
Other matter
We have reported separately on the group nancial statements of the Carbon Trust for the year ended 31 March 2013.

Richard Wilson (Senior statutory auditor)
for and on behalf of Ernst &Young LLP,
Statutory Auditor London
15 July 2013
Accounts
Company balance sheet
The Carbon Trust registered in England and Wales (number 4190230)
Notes
31 March
2013
000s
31 March
2012
000s
Non-current assets
Tangible xed assets 5 120 151
Investments in subsidiaries 6 29,947 33,684
Interest free loans receivable: amounts due after more than
one year
7 11,002 46,702
Total non-current assets 41,069 80,537
Current assets
Interest free loans receivable: amounts due within one year 7 40,781 42,639
Debtors: amounts due within one year 7 7,308 6,089
Cash at bank and in hand 22,578 30,639
Total current assets 70,667 79,367
Total assets 111,736 159,904
Current liabilities
Creditors: amounts falling due within one year 8 (60,542) (64,505)
Total current liabilities (60,542) (64,505)
Non-current liabilities
Creditors: amounts falling due after more than one year 9 (9,856) (46,479)
Deferred income 10 (39) (98)
Total non-current liabilities (9,895) (46,577)
Net assets 41,299 48,822
Funds
Members fund 11
Prot and loss account 11 41,299 48,822
Total funds 41,299 48,822
Signed on behalf of the board
James Smith, Tom Delay,
Chair Chief Executive
15 July 2013 15 July 2013
The accompanying notes are an integral part of this balance sheet.
Accounts
Notes to the company nancial statements
1 Corporate information
The Carbon Trust is a company registered in England and Wales (number 4190230) limited by guarantee incorporated
in the United Kingdom under the Companies Act 1985. Its registered ofce is 4th Floor, Dorset House, 27-45
Stamford Street, London SE1 9NT.
2 Basis of preparation
The Carbon Trusts company balance sheet has been prepared under the historical cost convention and has been
prepared in accordance with the Companies Act 2006 and applicable UK GAAP accounting standards. The following
accounting policies have been applied consistently throughout the period.
As permitted by section 408 of the Companies Act 2006, no separate prot and loss account has been presented in
respect of the company. Under FRS 1 Cash Flow Statements the company is exempt from the requirement to prepare
a cash ow statement due to the fact that the group includes the company in its own published consolidated nancial
statements.
The nancial statements comprising the results of the company have been prepared on a going concern basis.
3 Accounting policies
(a) Revenue
Revenue is recognised to the extent that it is probable that the economic benets will ow to the group and revenue can
be reliably measured. Revenue is measured as the fair value of the consideration received excluding discounts, rebates,
value added taxes and sales taxes. The following conditions must be met before revenue is recognised:
(i) Grant income
Grant income represents non bid-for funding from government departments and Non Departmental Public Bodies
(NDPBs).
Grant income is recognised in the income statement to match with the expenditure that it is funding. Accordingly,
grants utilised for the purchase of tangible xed assets are treated as deferred income and released to the income
statement over the expected useful lives of the assets concerned. Where grant income is received in advance of the
related expenditure being incurred, it is treated as deferred income and held in the balance sheet. The deferred income
is released to the income statement when the related expenditure is incurred. Where grant income is pledged, but has
not yet been received in cash when the related expenditure is incurred, the grant is recognised on the balance sheet as
accrued income.
income in the period in which the investment is made as there is no expected useful life of the investment. This
treatment results in a prot equal to the initial cost of the investment held on the balance sheet. Grant income received
for the purpose of making interest free loans is recorded as income in the period in which the loan offer becomes
irrevocable, and where there is a potential future obligation to repay the grant funds used for making interest free loans,
that grant funding is classied as deferred income relating to interest free loans and held on the balance sheet.
(ii) Licensing income
Licence income is accounted for in the period in which it is receivable.
(b) Tangible xed assets
Tangible xed assets are shown at cost less depreciation and any provision for impairment. Depreciation is provided as
follows:
Fixtures and ttings straight-line basis over ve years or life of the related property lease term if less
Ofce equipment and computers straight-line basis over three years.
Accounts
continued

(c) Investments in group undertakings
Investments in group undertakings are held at cost less any provision for impairment.
(d) Corporation tax
Similarly no tax deduction is available for expenses generated out of grant income. Certain of the companys
sources of income will, however, be taxed under normal principles including: bank interest; prots from investments;
and activities that are treated as a trade. For these activities UK corporation tax is provided at amounts expected
to be paid (or recovered) using the tax rates and laws that have been enacted or substantially enacted by the balance
sheet date.
(e) Pension costs
The company makes contributions directly to the providers of employees personal pension plans, that are money
purchase schemes. Contributions are charged to the income statement when payable. Differences between
contributions payable in the period and contributions actually paid are shown either as accruals or prepayments in the
balance sheet.
(f) Operating leases
Amounts payable in respect of operating leases are charged to the prot and loss account on a straight-line basis over
the lease term.
(g) Interest free loans
Loans made under the interest free Energy Efciency Loans Scheme are shown in the balance sheet at the present
value of the amounts receivable. The present value represents the value of each loan discounted over the repayment
period using the effective interest rate method using a discount rate that reects the premium for the risk associated
with unsecured loans. The charge and credit arising from the discounting of the receivables and the unwinding of the
discount are included in the prot and loss account for the period. An equivalent liability is established as deferred
income relating to the grant used to fund interest free loans that may potentially become repayable (see note 3a).
Appropriate allowances for estimated irrecoverable amounts are recognised in the prot and loss account when there is
objective evidence that the asset is impaired. The allowance recognised is measured as the difference between the assets
carrying amount and the present value of estimated future cash ows discounted at the effective interest rate computed
at initial recognition.
4 Loss attributable to the company
The loss for the nancial year was 7,523,000 (2011/12 prot of 4,507,000). As permitted by section 408 of the
Companies Act 2006, no separate prot and loss account is presented in respect of the company.
The company paid 74,000 (2011/12 51,000) to its auditors in respect of the audit of the nancial statements of
the company.
Fees paid to Ernst & Young LLP and its associates for non-audit services to the company itself are not disclosed in the
individual accounts of the Carbon Trust as group nancial statements are prepared that are required to disclose such
fees on a consolidated basis.
Directors remuneration is disclosed in the remuneration report on pages 28 to 29.
Accounts
5 Tangible xed assets
Fixtures and
ttings
000s
Ofce equipment
and computers
000s
Total
000s
Cost
At 1 April 2012 205 808 1,013
Additions 7 35 42
At 31 March 2013 212 843 1,055
Depreciation
At 1 April 2012 (88) (774) (862)
Charge for the year (32) (41) (73)
At 31 March 2013 (120) (815) (935)
Net book value
At 31 March 2013 92 28 120
At 31 March 2012 117 34 151
Accounts
6 Investments in subsidiaries
At 31 March 2013 the companys principal subsidiary undertakings were:
%
Holding
2013
%
Holding
2012
Country of
incorporation
and registration
Directly held
Carbon Trust Enterprises Limited 100 100 UK
Carbon Trust Investments Limited 100 100 UK
Carbon Trust Fund Management Holdings Limited 100 100 UK
Carbon Trust International Limited 100 100 UK
Indirectly held
Carbon Trust Advisory Limited (previously Carbon Trust Footprinting
Company Limited)
100 100 UK
Carbon Trust Resources Limited (previously Carbon Trust Advisory
Services Limited)
100 100 UK
Low Carbon Workplace Limited 100 100 UK
Future Blends Limited 93.3 93.2 UK
Carbon Trust Certication Limited 100 100 UK
Carbon Trust Implementation Services Limited 100 100 UK
Carbon Trust LLC 100 100 USA
All subsidiaries of the group have a period end of 31 March.
Total
000s
Cost
At 1 April 2012 48,328
Additions 3,050
At 31 March 2013 51,378
Provision for impairment
At 1 April 2012 (14,644)
Written off during year (6,787)
At 31 March 2013 (21,431)
Net book value
At 31 March 2013 29,947
At 31 March 2012 33,684
continued

Accounts
6 Investments in subsidiaries continued
The company holds an investment of 1 in its subsidiary companies Carbon Trust Investments Limited (CTIL) and
Carbon Trust Fund Management Holdings Limited (CTFMHL), an investment of 50.1 million in CTEL which
has a carrying value of 35.5 million at 31 March 2013 (32.4 million at 31 March 2012) and an investment of 1.3
million in Carbon Trust International Limited (CTInt) (1.2 million at 31 March 2012). This represents 100% of the
ordinary issued share capital of these companies.
CTIL acquires and holds venture capital investments.
CTInt is the holding company for the groups international activities. At 31 March 2013 CTInt held an equity
investment of 500,583 in Carbon Trust US LLC, a Delaware registered limited liability company, that represents
100% of the paid in capital of this entity. This investment is fully impaired. CTInt also holds an investment of 735,000
in China-UK Low Carbon Enterprises Company Limited, a limited liability company registered in China. This
investment represents 7.35% of the interest in this entity.
CTEL undertakes the Carbon Trust groups commercial activities.
CTEL also owns equity investments of 2,197,511, 708,869, 4,709,800, 1 and 249,999 and 5,294,634
respectively in the following companies, which, with the exception of Future Blends Limited, represents 100% of their
ordinary issued share capital:
Carbon Trust Advisory Limited (previously Carbon Trust Footprinting Company Limited): that provides strategic
carbon consultancy services.
Carbon Trust Resources Limited (previously Carbon Trust Advisory Services Limited): that no longer actively trades.
Effective 1 April 2012, the group reorganised its professional services businesses providing advice, combining separate
trades in one entity Carbon Trust Footprinting Company, and renamed the company Carbon Trust Advisory Limited.
This restructuring was completed to facilitate our customer offer. CTELs investment in the company is fully impaired.
Carbon Trust Certication Limited: that focuses on providing organisations with certication of their performance
in taking action to reduce their carbon emissions, with the endorsement of the Carbon Trust Standard, through
assessment against the Carbon Trust Standard methodology.
Low Carbon Workplace Limited: a carbon advisory company.
Carbon Trust Implementation Services Limited: that provides carbon advisory services to the new energy efciency
nance scheme.
Future Blends Limited: a joint venture established with a consortium of partners to develop and commercialise the
production of low carbon diesel blendates from waste biomass. The investment CTEL owns in Future Blends Limited
represents an interest of 93.3%.
Salix Finance: the company is a member of Salix Finance and holds 25% voting rights in Salix Finance. The investment
is held at nil. The company does not exert any inuence over the management and policies of Salix Finance.
Accounts
continued

7 Debtors
Amounts falling due within one year:
31 March
2013
000s
31 March
2012
000s
Trade debtors 1,966 2,041
Amounts owed by group undertakings 328 2,535
Interest free loans receivable repayable to DECC 17,321 26,589
Interest free loans receivable funded by Invest Northern Ireland 5,082 2,696
Repayable grant made to Salix Finance 16,394 12,388
Other interest free loans receivable 1,984 966
Accrued income 4,707 1,147
Prepayments 307 366
48,089 48,728
Amounts falling due after one year:
31 March
2013
000s
31 March
2012
000s
Interest free loans receivable repayable to DECC 7,262 25,015
Interest free loans receivable funded by Invest Northern Ireland 2,593 3,072
Repayable grant made to Salix Finance 16,498
Other interest free loans receivable 1,147 2,117
11,002 46,702
Interest free loans receivable comprises balances due under the interest free Energy Efciency Loans Scheme, which
have been discounted to their present value at the balance sheet date, as explained in note 3(g). At 31 March 2013
3.2 million of offers made to applicants under the interest free Energy Efciency Loans Scheme had not been drawn
down by recipients (2011/12 1.8 million).
Accrued income consists of grant income due from funding providers. It is made up as follows:
31 March
2013
000s
31 March
2012
000s
DECC 4,228 112
Invest Northern Ireland 355 473
DFID 21
Welsh Government 124 541
4,707 1,147
Accounts
8 Creditors: amounts falling due within one year
31 March
2013
000s
31 March
2012
000s
Trade creditors 2,913 2,833
Other taxes and social security 188 198
Deferred income relating to interest free loans repayable to DECC 21,136 26,984
Deferred income relating to interest free loans funded by Invest Northern Ireland 5,734 4,542
Deferred income relating to repayable grant to Salix Finance 16,398 12,416
Deferred income 3,831 1,187
Accruals 10,342 16,345
60,542 64,505
Provisions
000s
Value at 1 April 2012
Amount raised 350
Amount used
Value at 31 March 2013 350
The Carbon Trust as a member of OWA has an irrevocable commitment to meet costs incurred within the OWA
nancial year concluding 30 June. These amounts are certain to be used.
for the purpose of making interest free loans. The balance due to DECC is repaid, and the balance due to Invest
Northern Ireland is retained in the business to fund further loans.
Deferred income relates to grant receipts in advance of the related costs being incurred. It is made up as follows:
31 March
2013
000s
31 March
2012
000s
DECC - 877
FCO 12 12
DEFRA 84 84
Department for Transport 214 214
Scottish Government 9
Other grants 86
OWA Corporate Partners 3,426
3,831 1,187
continued

Accounts
9 Creditors: amounts falling due after more than one year
31 March
2013
000s
31 March
2012
000s
Deferred income relating to interest free loans repayable to DECC 4,756 17,331
Deferred income relating to interest free loans funded by Invest Northern Ireland 2,593 3,159
Deferred income relating to repayable grant to Salix Finance 16,502
Deferred income relating to other interest free loans 2,507 9,487
9,856 46,479
for the purpose of making interest free loans. The balance due to DECC is repaid, and the balance due to Invest
Northern Ireland is retained in the business to fund further loans.
10 Deferred income relating to xed assets
Deferred income of 39,000 at 31 March 2013 (2011/12 98,000) represents deferred income relating to tangible
xed assets, that will be released to grant income over the expected useful lives of the related assets.
11 Total funds
Members fund
000s
Prot and loss
account
000s
Total members
fund 2013
000s
Total members
fund 2012
000s
At 1 April 48,822 48,822 44,315
Retained prot/(loss) for the year (7,523) (7,523) 4,507
At 31 March 41,299 41,299 48,822
Accounts
12 Financial commitments
Annual commitments under non-cancellable operating leases relating to property leases and ofce equipment
are as follows:
Expiry
31 March
2013
000s
31 March
2012
000s
Within one year 177 201
Between two and ve years 29
177 230
The property leases relate to:
Dorset House, London; and Orion House, Enterprise Technology Park, East Kilbride.
(2012 Dorset House, London; Albion House, Nantgarw, Cardiff; Orion House, Scottish Enterprise Technology Park,
East Kilbride, Unit 9 Innovation Centre, Belfast).
Each such lease provides for the lessee to pay all insurance, maintenance and repair costs.
At 31 March 2013 the company had commitments to pay nil in relation to applied research grants
(2011/12 8.7 million in relation to 14 applied research grants).
13 Related party transactions
During the year the company provided 2.25 million (2011/12 3.5 million) to grant fund Salix Finance, an
associate company of the Carbon Trust.
CO
2
The chemical formula for carbon dioxide.
CO
2
e
In order to produce a uniform measurement of greenhouse gas
emissions, greenhouse gases other than CO
2
are converted into
units of carbon dioxide equivalent. Please refer to Measuring
carbon emissions box on the back inside cover for more
information.
Carbon footprint
Net emissions of CO
2
and other greenhouse gases from a
persons or a business activities.
Carbon Management
A systematic approach to identify the risks and opportunities in
relation to climate change mitigation, using a ve-step process
developed by the Carbon Trust.
CRC Energy Efciency Scheme
The UKs mandatory climate change and energy saving scheme
(formerly known as the Carbon Reduction Commitment).
CTEL
Carbon Trust Enterprises Limited, a wholly owned subsidiary
company of the Carbon Trust.
CTFMH
Carbon Trust Fund Management Holdings Limited, a wholly
owned subsidiary of the Carbon Trust.
CTIL
Carbon Trust Investments Limited, a wholly owned
subsidiary company of the Carbon Trust.
CTInt
Carbon Trust International Limited, a wholly owned subsidiary
company of the Carbon Trust.
DECC
Department of Energy and Climate Change (UK).
DEFRA
Department for Environment, Food and Rural Affairs (UK).
Devolved administrations
The Scottish Government, the Welsh Government
and Invest Northern Ireland.
DFID
Department for International Development (UK).
Energy Technology List
A qualifying list of class-leading energy efcient technologies,
that are eligible for Enhanced Capital Allowances (ECAs).
Entrepreneurs Fast Track
Entrepreneurs Fast Track is customised technology grant,
incubation and networking support to enable the UKs leading
small clean technology businesses to succeed.
EU
European Union.
FCO
The Foreign and Commonwealth Ofce (UK).
Fuel cells
Devices that convert energy stored in a fuel (usually hydrogen)
into electricity and heat.
Future Blends
Future Blends Ltd is a Carbon Trust sponsored start-up
focusing on the conversion of biomass to transport fuel.
ICF
International Climate Fund was set up by UK government to
provide 2.9 billion between April 2011 and March 2015 to
help the worlds poorest adapt to climate change and promote
cleaner, greener growth.
IFRS
International Financial Reporting Standards.
LCICG
Low Carbon Innovation Coordination Group brings together
the major public sector backed organisations that are supporting
low carbon innovation in the UK.
LCW
Low Carbon Workplace Limited is the exclusive carbon
advisor to the Low Carbon Workplace Fund and a wholly-
owned subsidiary of Carbon Trust. It contributes low carbon
design advice for refurbishments, coordinates the Low Carbon
Workplace Standard and provides ongoing low-carbon
assistance to occupiers under the Low Carbon Workplace
Charter.
LED
Light Emitting Diode.
Mandatory Carbon Reporting (MCR)
The Companies Act 2006 (Strategic report and Directors
report) regulation 2013 brings in mandatory greenhouse gas
reporting for all UK incorporated companies listed either on
the London Stock Exchanges Main Market or in a European
Economic Area, from October 2013.
MRCF
Marine Renewable Commercialisation Fund is a Scottish
Government fund administered by the Carbon Trust. Its goal is
to help commercialise the marine energy industry in Scotland.
OWA
The Offshore Wind Accelerator is a joint industry technology
innovation project that aims to reduce the cost of offshore wind
by 10% by 2015.
Glossary
Accounts
Contents
Who we are 01
In summary
Key achievements 02
Overview
Chairmans statement 04
Chief executives statement 06
Advice
Advice 08
Footprinting
Footprinting 12
Technology
Technology 14
Scotland and Wales
Scotland and Wales 18
Governance
Environment report 20
Directors report 21
Corporate governance report 24
Remuneration report 28
Financial review 30
Accounts
Consolidated income statement 37
Consolidated balance sheet 38
Consolidated statement of changes in total funds 39
Consolidated cash ow statement 40
Notes to the nancial statements 41
Company balance sheet 66
Notes to the company nancial statements 67
Glossary 76
Measuring carbon emissions
In industrialised countries 80% of greenhouse gas emissions are carbon dioxide (CO
2
), released into
the atmosphere mostly from the burning of fossil fuels. Other greenhouse gases produced by industrial
and agricultural processes include: methane (CH
4
); nitrous oxide (N
2
O); hydrouorocarbons (HFCs);
peruorocarbons (PFCs) and sulphur hexauoride (SF
6
).
In order to produce a uniform measurement of greenhouse gas emissions, greenhouse gases other than
CO
2
are converted into units of carbon dioxide equivalent (CO
2
e), and this is what we use in our report.
Carbon is a shorthand unit derived from CO
2
and CO
2
e used by governments in international climate
change negotiations. 3.66 tonnes of CO
2
or CO
2
e is equivalent to one tonne of carbon.
For the avoidance of doubt, MtCO
2
means million tonnes of CO
2
.
Further information about how we measure our impact is disclosed on our web site: www.carbontrust.com
PfR
Partnerships for Renewables is a renewable energy developer
focusing primarily on public sector land. It is a joint venture
with InfraRed Environmental Infrastructure (InfraRed)
(formerly HSBC Environmental Infrastructure) and OP Trust
Infrastructure Europe II Inc (OPT).
Photovoltaic
A technology whereby energy from the suns rays is converted
into an electrical current.
Pyrolysis Challenge
A grant funded programme launched in 2008 with the aim of
upgrading of pyrolysis oil for use as a low carbon biofuels.
RD&D
Research Development and Demonstration.
Regional Growth Fund
The Regional Growth Fund (RGF) is a 2.6 billion fund
operating across England from 2011 to 2016. It supports
projects and programmes that lever private sector investment to
create economic growth and sustainable employment.
Salix Finance
Salix Finance Limited, an independent company previously
funded by the Carbon Trust to work with the public sector
to reduce carbon emissions through investment in energy
efciency.
SMEs
Small and medium sized companies, as dened by the European
Union as organisations having no more than 250 employees,
an annual turnover of no more than 50 million, or an annual
balance sheet not exceeding 43 million.
TCM
Technology Centre Mongstad.
Accounts

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The Carbon Trust Annual Report 2012/2013

Accelerating the move

Tom Delay 174,624 78,581 23,813 277,018 249,742

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