IIED’s statement of financial activities recorded a ‘break-even’ position in 2023/2024 including the financial performance of IIED Europe, which has been consolidated under IIED’s audited accounts for the first time.
Income increased by £5m to £26.1m (2023: £21.1m) and expenditure increased by a similar amount, to £26.3m.
The institute continued to invest in streamlining its internal processes during 2023/24 to reduce overheads in an increasingly competitive funding environment. However, it increased its reliance on higher cost temporary contract staff as part of the start of a strategy development and change transformation process.
IIED’s number of employees rose to 153 at the end of 2023/24 (2023:148) including seven internationally contracted staff (2023:8), following efforts to build capacity and capabilities across the organisation, especially to support larger research projects. There was also an increase in staff working under employee of record agreements (15).
Support costs increased to £4.8m (2023:£3.5m) and there was a positive foreign exchange revaluation of £113,000 on year-end bank balances.
IIED’s new manifesto was launched in May 2024, and was updated in July and will be further iterated every six months in response to the challenging and unpredictable world.
The manifesto includes six overarching propositions for change on which IIED intends to focus, and the institute also began the journey of fundamental changes to its organisational model, moving away from static and sometimes siloed research groups to fluid and impact-focused task teams, which come together to deliver time-bound research, interventions and collaboration towards ambitious goals.
IIED is funded through income from charitable activities in relation to commissioned research, both practical and academic.
Reserves policy
IIED’s reserves policy was aligned with its five-year strategy, which launched in April 2019 and expired in March 2024.
To protect the organisation and its charitable programme against the risks of funding loss through income shortfalls and other unexpected financial losses, the policy considers both a risk-based and ongoing concern approach. Based on the aggregate of the two approaches, it has a mid-point of £2.3m: trustees have therefore set the target range of free reserves (being total funds less restricted and designated funds) at between £1.9m and £2.5m.
Total funds on 31 March 2023 were £2.14m (2022: £2.1 million). Designated funds are £0.19m and the total free reserves have increased to £1.95 million (2022: £1.85 million).
This falls within the lower end of the target range endorsed by the board but the budget for 2023/24 aims to replenish reserves by £0.4m to bring the free reserves to £2.35m, which would be at the top end of the policy. Trustees therefore retained for 2023/24 the target range of free reserves at between £1.9m and £2.5m.
For IIED company only, total unrestricted funds at the end of 2023/24 were £2m, of which £0.2m was represented by fixed assets resulting in free reserves of £1.8m. This falls just below the lower end of the target range, resulting in a decision to strengthen the reserves through seeking a surplus in FY25.
Since the year end, IIED’s trustees have revisited the reserves policy considering the ambitious new strategy, and both the organisation’s current circumstances and the context in which it operates, resulting in a significantly increased reserves target range prospectively of £4-5m. The trustees will seek to build reserves towards this target over the next few years.
Investment policy
IIED invested its surplus cash in fixed-term deposits during 2023/24. This policy produces an acceptable rate of return while giving us flexibility to access funds. IIED is reviewing this policy in 2024/25.
Related parties
Some IIED trustees are also trustees of other charities, or directors or senior officers in other organisations IIED works with as a normal part of its research activities. Where such work involves payment, trustees are not involved in the transactions and any payments relating to these contracts are detailed in the notes to the accounts. The board operates a conflict of interest policy.
Looking ahead
The trustees report identifies a number of key strategic risks for the institute, and action IIED is taking to mitigate the risks.
These include risks associated with political change which could undermine global co-operation and aid commitments (such as wars and regional conflicts), leading to impacts such as accelerating displacements/refugees, food insecurity and creating global uncertainties.
The pace of climate and ecological breakdown and rising inequality could also outstrip IIED’s repertoire of action and make policy response redundant. This climate breakdown could also severely disrupt operations and research.
IIED aims to diversify geographies of focus (in line with its response to decoloniality) and develop models of action with independence from global multilateral processes – supporting social movements and activism, engaging with corporates and investors to promote deep decarbonisation/inclusion/ nature positivity of their business models, also seeking ways to leverage connections, partnerships and funding from Majority World and non-traditional donors and the private sector.
This institute is also continually rethinking its repertoire of inclusive climate/nature positive action, considering more radical options for change, including degrowth in Northern contexts and supporting radical activism. Digital modes of research practice are being developed and IIED is investing in innovation and horizon-scanning to ensure its pipeline of new approaches and models keeps pace with the scale of change.
Donors
Government and government agencies
Foreign Commonwealth & Development Office (FCDO)
Irish Aid, Department of Foreign Affairs (Ireland)
Swedish International Development Cooperation Agency (Sida)
Ministry of Foreign Affairs (Netherlands)
US Department of State
Ministry of Environment and Climate Change (Canada)
Department for Environment, Food And Rural Affairs (DEFRA)
Federal Foreign Office (Germany)
Department for Energy Security and Net Zero (UK)
The Secretary of State For Health (UK)
Netherlands Enterprise Agency
BMU Federal Ministry for Environment (Germany)
Deutsche Gesellschaft Fur International Zusammenarbeit (GIZ) Gmbh
Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU)
Ministry of Environment (Sweden)
Swiss Agency for Development and Cooperation
Ministry of Economic Growth and Job Creation (Jamaica)
Department for Business, Energy & Industrial Strategy (UK)
Ministry of Foreign Affairs of Finland
Ministry of Infrastructure and Water Management (Netherlands)
Westminster Foundation for Democracy (WFD)
International and multilateral agencies
United Nations Food And Agriculture Organisation (FAO)
UNDP (Parent)
The World Bank (US)
United Nations Habitat Secretariat Kenya
UNIDO (UN Industrial Development Organisation)
UNEP Nairobi Kenya
United Nations Environment Programme Kenya
United Nations Office for Disaster Risk (Switzerland)
United Nations Office For Project Services (Unops)
UNDP Thailand
Regional Centre for Mapping of Resources (Kenya)
Foundations and NGOs
United Nations University - EHS (Germany)
SouthSouthNorth (Africa) NPC
Bill & Melinda Gates Foundation (US)
Generation Foundation (UK)
Oxford Policy Management (UK)
Rockefeller Philanthropy Advisors (RPA) (US)
Foundation Hans Wilsdorf (Switzerland)
IIED Europe (Netherlands)
International Union for Conservation of Nature (IUCN)
The William and Flora Hewlett Foundation (US)
UBS Optimus Foundation Europe (Germany)
IKEA Foundation (Netherlands)
Jamma International (UK)
Anti-Slavery International (UK)
Schmidt Family Foundation (US)
Institute of Development Studies (IDS) (US)
DAI Global UK Ltd (UK)
New Venture Fund (US)
University of Edinburgh (UK)
International Sustainable Energy Foundation (US)
Global Center on Adaptation (Netherlands)
MISEREOR (Germany)
Climate Works Foundation (US)
Ecorys (UK)
IED (France)
World Vision Ireland
University of Copenhagen (Denmark)
The University of Sheffield (UK)
Stichting Wageningen Research (Netherlands)
Conservation International (US)
IUCN Kenya
Stichting International Red Cross/RCCC (Netherlands)
African Centre for Trade and Development (Uganda)
Katholische Zentralstelle fur Entwicklun (Germany)
WWF International (Switzerland)
International Development Research Centre (Canada)
Anglia Ruskin University (UK)
Africa Europe Foundation (AFD) (Belgium)
Chatham House (UK)
The Bartlett Development Planning Unit (UK)
DanchurchAid (DCA) (Denmark)
Finance for Biodiversity Foundation (Switzerland)
University Of Manchester (UK)
Loughborough University (UK)
Engineering and Physical Sciences Research (UK)
Tufts University (US)
Zoological Society of London (UK)
IED Afrique (Senegal)
CDP (UK)
Asian Disaster Preparedness Centre (ADPC) (Thailand)
Economic And Social Research Council (ESRC) (UK)
MAVA Foundation (Switzerland)
Open Society Foundations (US)
Children’s Investment Fund Foundation (CIFF) (UK)
University of Southampton (UK)
Wellspring Philanthropic Fund (US)
Arcus Foundation (US Office)
Arts & Humanities Research Council (UK)
Foundation to Promote Open Societies (US)
FSD Africa (Kenya)
University College London (UK)
International Rice Research Institute (Philippines)
CITES Secretariat (Switzerland)
Arcus Foundation (UK)
Habitat for Humanity International (UK)
The Scottish government (UK)
Environment for Development Initiative – Sweden
LTS International Ltd (UK)
New York University (NYU) (US)
Global Green Growth Institute (South Korea)
TRAFFIC International (UK)
Corporate
DAI Europe LTD (UK)
SAGE Publications Ltd (UK)
Arts & Humanities Research Council (UK)
Eventbrite (UK)
ABF Investments PLC (UK)
DAI Global LLC (US)
CBA
Asian Development Bank (Philippines)
DAI Global (Belgium)
The Landscapes and Livelihoods Group LLP (UK)
Alliance for Responsible Mining (Colombia)
PricewaterhouseCoopers London (UK)
Simusolar (Tanzania)
Le Groupe-conseil Baastel ltée (Canada)
Tiller Global (US)