Finance Reports

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Ecologi’s annual financial transparency for 2022

Welcome to our Ecologi finance report for January &#8211; December 2022.
Trust is a core value at Ecologi and as a result, we want to provide ongoing visibility to our customers on the flow of funds and the company’s financial operations.
We are moving from quarterly updates to annual updates so we can provide you with a more robust and clear financial update about Ecologi’s full calendar year.

Between January and December 2022, our subscribers funded the planting of 25,984,490 trees and 1,280,579 tonnes of carbon avoidance. Between 2021-22, there was an increase of 40%+ in the cost of trees on our platform. This new price reflected a strategic decision to connect with more reforestation partners around the world and support exciting new techniques and project locations.
Please see graphs below for the breakdown of cumulative trees funded and cumulative avoidance funded (tCO2e).

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You can see our full impact <a href="https://lookerstudio.google.com/reporting/adfb141d-4153-4c22-b6b4-976f7f3930b2">in our Public Ledger</a>, and find out more detail about the projects we have funded <a href="https://ecologi.com/projects">here</a>.

Revenue consists of the total proceeds from our customer base. Total recognised revenue for calendar year 2022 was £12.2m, which is 84% YoY growth from 2021 as shown in the graph below.

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The revenue split 2019 &#8211; 2022 is shown on the graphs below.

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Marketplace represents revenue from our Impact Shop, API integrations, and gifts, and is supported by self-serve and assisted sales. We launched our Impact shop in 2022 which has contributed to the increase in revenue as it enables customers to support a wide range of projects. More information can be found <a href="https://ecologi.com/articles/blog/the-impact-shop-is-now-open">here</a>.

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Climate Action Workforce (CAW), formally known as Climate Positive Workforce, represents revenue from our business subscribers. CAW revenue has been growing steadily due to larger customer sign ups.

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Climate Positive Individual (CPI) represents revenue from our individual subscribers. We are letting the individual customer side grow organically which allows the company to focus our marketing budget and resources on the B2B (business to business) activity.

Gross margin is the portion of the company&#8217;s revenue left over after cost of sales are subtracted. Our cost of sales include our purchase of trees and carbon, and transaction costs. The below graph shows Ecologi’s average gross margin from 2019 to 2022. The increase in 2022 is due to increasing the mix of B2B vs B2C revenue given our focus on the B2B market.

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Our total cost of sales for 2022 was £9,745,208. Our operating expenses were £7,036,864. Operating expenses include staffing costs, marketing costs, and internal IT and platform costs.
The graph below shows the expenditure split 2019 &#8211; 2022.

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The increase in operating expenses in 2022 is largely due to the development of Ecologi Zero, a highly requested product incubated by Ecologi which offers automated carbon accounting for businesses under a freemium model. Following this period of development we are excited that the premium version of this product will be launched in late 2023.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation)

EBITDA is a measure of profitability for companies. Ecologi’s EBITDA for 2022 was (£4,573,642). This is reflective of the strategic decisions we made to invest in, particularly, Ecologi Zero upfront. The launch of this SaaS product is expected to play a pivotal role in both improving Ecologi’s margins &amp; future revenue, as well as remaining a leader in enabling simple climate action for businesses. In 2023, Ecologi is making operational improvements, cost optimisations and margin improvements that will result in lower costs and higher EBITDA for the year.

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You can find out more about our finances and operations in our quarterly financial reports located in our <a href="https://lookerstudio.google.com/reporting/adfb141d-4153-4c22-b6b4-976f7f3930b2">Public Impact Ledger</a> and our <a href="https://ecologi.com/articles/blog/impact-report-2022">2022 Impact report</a>.

Blog

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Hopescrolling: The good news timeline

It’s not all bad. While there’s a lot of negative news about the climate, let’s not forget the good stuff. Find climate wins, reasons to be hopeful and plenty of positivity in our good news timeline.

The good news timeline

Ready to make a difference for our planet? Get in touch, and let’s chat about how we can help you on your climate journey. 

In Depth

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July- BTS Glenaros-Flowers-Yellow

Just as we make sure all our reforestation projects are designed in a way that is most beneficial to our planet, our other terrestrial restoration projects need to be of the highest quality too. Wildflower, Wetlands and Wildlife projects have the potential to provide vital support to a wide array of species, boosting local, national and international biodiversity, as well as being an important and secure carbon store. But for these benefits to come to fruition the projects must be implemented properly, in line with best practices.
We know you might have some questions about this new type of project, so we’ve put together answers to some FAQs to help you learn more about our Wildflower, Wetlands and Wildlife project.

Your questions answered

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Before and after: See how your climate action is making a difference

Before and after: This is how your Ecologi impact is transforming landscapes and lives.

We love a before and after shot at Ecologi. They&#8217;re an incredible way to show the impact of the projects supported by our community. Whether it’s deforested land turning back to verdant green, or solar projects springing to life, sometimes two simple images are worth a thousand words.
On this blog you’ll find snapshot images that paint pictures of the difference our supported climate projects are making, all around the world. Thank you to our community for making it all possible! 
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📍 Location: Ouarzazate, Morocco
⌛ Dates: 2015 –2020
🌱 Project: Verified Carbon Standard
🌳 Type: Solar energy

Morocco

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From a bare area of desert to a haven of clean energy. The Ouarzazate II solar project is a major milestone in Morocco&#8217;s journey towards a clean energy future. It is one of the largest concentrated solar power plants in the world and is expected to supply around 500 GWh per year to Morocco’s power grid.
The project uses thousands of concave mirrors to concentrate solar energy and generate electricity, which can be stored for up to 7 hours. This allows the project to continue generating electricity even after the sun sets.
The Ouarzazate II solar project supplies electricity to nearly 2 million Moroccans and will prevent emissions equivalent to 300,544 tCO2e per year over its 10 year crediting period. The project has also created around 7,000 local jobs and incorporated co-projects that promote the creation of cooperatives, educational opportunities, and skills training.
Learn more about this<a href="https://ecologi.com/projects/morocco-solar"> project</a>.

📍 Location: Brodoclea, North Ayrshire, Scotland
⌛ Dates: 2018 –2021
🌱 Project: Future Forest Company
🌳 Type: Temperate reforestation

Scotland

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Nestled in North Ayrshire, Brodoclea is a sprawling 174-hectare haven of broadleaf woodland that plays host to woolly pigs, the incredible ecological restoration engineers! 
Under <a href="https://thefutureforestcompany.com/">The Future Forest Company</a>&#8216;s guidance, these pigs awaken the soil seed bank, nourish soil microbiology, create space for sapling growth, reduce competition, and form pondlets for breeding amphibians and invertebrates. This enriches the ecosystem, offering sustenance for birds and materials for nests. 
Since 2018, the Ecologi community has helped make a significant impact on this site, funding the planting of 56,170 trees, with a focus on native broadleaf species including oak and birch, creating important habitat for local invertebrate and bird species.

📍 Location: Belavenika, Madagascar.
⌛ Dates: 2019 –2022
🌱 Project: Eden Reforestation Projects
🌳 Type: Mangrove reforestation

Madagascar

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Madagascar’s mangroves are amazing habitats that, sadly, have been deforested over the years and become degraded. This project is one of three currently being supported by the Ecologi community that are replanting mangroves in Madagascar to bring benefits to local biodiversity and communities.
Creating new sustainable income streams for local people is a key component of the project, as is female empowerment. The project employs an average of 85 people per month, with female employees making up approximately 37.5% of the workforce in 2022.
As a result of their involvement in this project, local people are now able to purchase more nutritious food, leading to improved health, and can afford to send their children to school.
To date, the Ecologi community has funded 7.9 million trees on this site in north-west Madagascar.
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📍 Location: Marotaola, Madagascar.
⌛ Dates: 2019 –2022
🌱 Project: Eden Reforestation Projects
🌳 Type: Mangrove reforestation

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This was the very first project we supported, so it holds a special place in our hearts. Seeing its progress over the last four years has brought us so much joy! 
Native mangrove species are being planted on this site, including Avicennia marina, Rhizophora mucronata, and Ceriops tagal. To date, the Ecologi community has funded the planting of over 10 million trees here, and there’s room for another million. 
This site is particularly fascinating as the mangroves are only separated from the open ocean by a thin strip of sand about 100m wide. Despite being more exposed to the ocean, mangroves that have successfully become established are growing well, creating an important habitat for coastal biodiversity and protecting the coastline from erosion by the waves.
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📍 Location: Vĩnh Hảo, Tuy Phong District, Bình Thuận, Vietnam
⌛ Dates: 2018 –2023
🌱 Project: Verified Carbon Standard
☀️ Type: Solar

Vietnam

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Vietnam&#8217;s demand for energy has been rising sharply since the 1990s, and it’s a demand that the country has struggled to fulfil, with an overreliance on coal and frequent power outages.
This project, in the Vinh Hao commune, Vietnam, is generating electricity using photovoltaic technology, which transforms sunlight into electricity. The project is on around 60ha of salt farm, and will generate 83,750MWh of power annually.
Local people have been involved throughout the design phase and operation of the project. The construction process of the project was carefully managed to minimise the impact on the local environment. During the operation of the project, pollution will also be minimised through a series of measures, including ensuring no littering takes place, and waste materials will be responsibly disposed of off-site.
Over the 10-year crediting period, the project will prevent 704,110tCO2e from being emitted by replacing energy in the grid that would otherwise have come from fossil fuels.
The project has given a real boost to the living standards of local communities through economic support funds: the commune gratitude fund in the Vinh Hao commune, and the learning promotion fund in the Binh Thuan province.
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📍 Location: Mount Elgon, Uganda. 
⌛ Dates: 2021 – 2023
🌱 Project: Trees for the Future
🌳 Type: Reforestation and sustainable agroforestry

Uganda

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Trees for the Future’s innovative Forest Gardens approach is all about engaging farmers in reforestation and sustainable agroforestry. The farmers take part in a 4-year programme, learning the skills they need to better manage their land. This brings multiple benefits, including protected crops, stabilised soils, and habitats for pollinators, as well as increasing household incomes.
Over the past two years, the Ecologi community has funded the planting of 766,663 trees in Forest Gardens through this project. Three hundred farmers (57% of whom are women) are involved, with 3,522 people benefitting from the project so far. 
Pictured is 56-year-old Philister Khana, a farmer enrolled in the programme. In just two years she’s taken the number of trees on her plot from 4 to 2,001!
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Finance Report: 2022

Climate Impact

Revenue

Gross margin

Expenditure

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation)

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More posts

Hopescrolling: The good news timeline

Your questions answered about our Wildflowers, Wetlands and Wildlife project

Before and after: See how your climate action is making a difference

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