WWF Annual Review 2006

contents ‘‘
1

Forging partnerships for
big results2

One more degree anddamage may be irreversible

4

The breath of life

6

Facing a water crisis

8

Extinction: the ultimate challenge

10

Safeguarding the oceans

12

A clear and urgent message

13

Meeting the funding challenge

14

Income and expenditure

17

WWF International Board
and Directors

18

Common interests,
positive partnerships

20

A living memory

Today, we are faced with unprecedented
environmental challenges, all of which have
implications for us as inhabitants of thisplanet. With its global network, no otherorganization is better positioned than WWF
to bring about the changes that will be
required – at all levels – to build a truly
sustainable future. But we can't do it alone.
We urgently need leaders in government,
business, and civil society to come forward
and play a role. I hope that we can dependon you; I know future generations will.
Chief Emeka Anyaoku
President
WWF International’’

Species cling
to life in
the fragile
ecosystem of
the Namib
Desert…but for
how long?

Forging partnerships for big results
In October, we released our sixth Living
Planet Report (page 12). Media aroundthe world carried the report’s message
that we are seriously exceeding thecapacity of the Earth to support us.
Wildlife populations around the globe
are in decline, and the burden we
impose upon the planet is increasing
relentlessly. We are using up more andmore of our fresh water, forests, andfish stocks. Most of all, of course, weare changing the climate.
Conservation is thus more urgent than ever.
WWF is rising to the challenge by forging
partnerships that can effect change on a
global scale to save the Earth’s most
extraordinary habitats and to encourageconservation worldwide.

‘‘

Wildlife populations
around the globe are in
decline, and the burden
we impose upon theplanet is increasing
relentlessly.

’’This report highlights some of the ways inwhich we are working with diverse partners
to achieve large-scale impacts. Collaborations
with the government of Brazil, the World
Bank, and local communities in the Amazon,
for example, have yielded the mostambitious protected-area project everundertaken (page 4). Cooperation between
WWF and Unilever gave birth to the Marine
Stewardship Council (MSC) to create amarket for sustainable seafood, and WWF is
now working with fishermen, processors,
and the world’s largest retailers to propel
MSC into the mainstream (page 10).

Partnerships like these are crucial for
conserving the Earth’s biodiversity. They are
equally crucial for the fight against poverty,
beginning with achieving the United Nation’s
Millennium Development Goals. In places
like the Mara River of East Africa (page 6),
aid agencies and community organizations
are vital partners in our efforts to help
conserve ecological resources that are
essential for successful development.
Ultimately, the future of all humanity, rich andpoor, depends upon finding ways to takebetter care of the ecosystems that support
life on Earth, and on forging collaborations
that can deliver big results. In this year, whenseveral of our colleagues gave their lives inthat cause, we are committed to redoubling
our efforts. I hope the examples highlighted
in this year’s Annual Review will inspire you
to join us in our fight for a living planet.

James P Leape
Director General
WWF International

1

one more degree...
...and damage may be irreversible“Further global warming of 1°C defines a criticalthreshold. Beyond that we will likely see changes thatmake Earth a different planet than the one we know,”
says NASA’s Goddard Institute director and recipientof this year’s Duke of Edinburgh Conservation Medal*,
Dr James Hansen.
Today, there are hardly any among the world’s
political, industrial, and media leaders who doubt thatclimate change is an urgent problem and that it islargely a man-made phenomenon. With each new
statistic the awareness of the looming crisis
increases. But CO2 emissions are still growing, and theworld is warming faster than at any time in the last
12,000 years. The 1990s was the hottest decade in thepast thousand years ...
We can curb climate change – if we act now. If we begin
to make the switch to clean energy today we can keep
global warming below the danger threshold. The windowof opportunity is narrow, but experts tell us that if wemanage to turn the trend of global CO2 emissions in thenext ten to fifteen years, we can succeed. And everyone
can contribute – business people and investors,
scientists and technicians, law makers and citizens.

Mobilizing corporations forthe climate
The private sector can and must play a vital role in reducing
CO2 emissions. The public wants to know what companies
are doing about climate change, or indeed whether they
have an emissions-reduction plan at all.
2

*WWF’s highest honour, awarded for outstanding service to the environment.

Arctic ice ismelting fasterthan it isbeing formed.

‘‘

The hottest decade in thepast thousand years...

’’

Good for businessWWF has shown that there are great opportunities forbusinesses to improve their standing and their bottom line
by taking action to cut CO2 emissions. Making better useof resources and creating more efficient products are
becoming part of normal business practices. It was toencourage these responsible, forward-thinking companies
that WWF’s Climate Savers programme was developed.

What exactly is Climate Savers?
Climate Savers is a cutting-edge programme between WWF
and businesses aimed at fighting climate change. Agreed
targets must go much further than previous plans andshould place the company as a sector leader in greenhousegas emission control. To date, a dozen companies havejoined the fight, including Sony, Tetra Pak, and Lafarge.

How green is that freezer?
Consumers have many things to take into consideration
when purchasing a new appliance. While it is relatively easy
to compare prices, features, and appearances of similar
products, it is more difficult to find reliable and objective
information on their energy efficiency.
To counter this, WWF and a group of partner organizations
recently launched TOPTEN, an online search tool that gives
potential purchasers in ten European countries theopportunity to compare the energy efficiency of consumer
goods such as washing machines, fridges and freezers, TV
sets, computers, and cars.

To curb global
warming wemust switch toclean energy
such as wind.

Witness to thechanging climate
Changing weather patterns are
already hitting eastern Africa,
where the 2006 UN Conferenceon Climate Change took place.
A WWF survey confirmed that
average temperatures in Kenya
have risen by 1.3°C andthat although overall rainfall
has increased, it is moreunpredictable. Juma Njunge
Macharia from Murungaru,
a village just west of Nairobi,
addressed the conference,saying: “When I was young therainy season here started in
mid-April, but it has now shifted
to June – when it used to end.
Rainfall has become unreliable
and makes it more challenging
to plan any farming activities. I
hope that governments will agree
to a way to stop [emissions].”

TOPTEN helps to show how energy consumption contributes
to climate change and indicates what individuals can do to
reduce their impact on the environment. It also informs
retailers about which products to choose, and serves as anincentive to persuade manufacturers to improve the energy
efficiency of their products. www.topten.info

Juma Njunge Macharia, one of WWF’s“Climate Witnesses”.

3the breath of life
It is impossible to overestimate the contribution madeby the world’s forests to the well-being of the planet.
Forests form a complex and extraordinarily diverse
ecosystem – a fragile, intricate, interdependent web
made up of micro-organisms, soils, insects, animals
and flowers, as well as the trees themselves. Forests
are the Earth’s purifiers, “breathing” in much of theexcess CO2 we pump into the atmosphere andexhaling the oxygen upon which all life depends. They
provide water, food, fuel, shelter, medicines, spiritualsustenance, and countless other valuable services.
Yet despite their value, over 50 per cent of the world’s
original forests have already gone and they continue
to disappear at a rate of about 13 million hectares ayear. At WWF, we believe we can avert this disasterthrough a mix of protection, restoration, responsible
forestry, and by addressing consumption issues. The
Forest Stewardship Council (FSC) – a certification
system that WWF helped set up in 1994 to ensure
wood and wood products come from forests that are
sustainably managed – now has nearly 80 million
hectares of certified forests and around 20,000
FSC-labelled products on sale worldwide.

Top: On the ground in Brazil, WWFstaff are helping ARPA deliver on its
commitment to protect vast areas of
Amazonian forest.
Bottom: FSC certification guarantees thatwood – such as this quinilla tree in Peru –has been sustainably harvested.
Right: Forests such as the Amazon
rainforest “breathe in” much of our excess
CO2 and exude it as life-giving oxygen.

4Transforming conservation:
the Amazon

Keeping the Heart of
Borneo beating

A momentous undertaking is under way to transformconservation in Brazil. The Amazon Region Protected
Areas (ARPA) programme aims to ensure comprehensive
protection of 50 million hectares, or 12 per cent of theBrazilian Amazon – an area about twice the size of theUnited Kingdom, and 50 per cent more than the US
National Park System. Through its geographic scope andfinancial ambitions, the ARPA programme redefines
place-based conservation.

The “Heart of Borneo” is one of the last major tropicalrainforests in Southeast Asia and one of the most
biologically diverse habitats on Earth. This predominantly
mountainous area, shared by Brunei, Indonesia, andMalaysia, is the source of the island’s major rivers. But
despite its importance, plans were announced in July 2005
to create the “world’s biggest oil palm plantation”, which
would effectively rip the forest heart out of Borneo.

Lobbying at the highest levels
Partners in sustainable development
Over a ten-year period, the programme, developed by thegovernment of Brazil in partnership with WWF and otherstakeholders, will create and support a system of protectedareas and reserves where natural resources are sustainably
managed. A trust fund will generate sufficient income
to support effective management of these areas over thelong term.
Since its formation in 2003, the programme has set worldclass standards for innovation and cooperation involving
multiple sectors of society, and has produced outstanding
conservation results ahead of schedule. ARPA is playing a
key role in ensuring that future development in the Amazon
region can take place on a solid environmental footing.

First results
By the end of 2006, less than four years since its inception,
ARPA has created over 23.5 million hectares of new parks
and reserves, among them the Tumucumaque Mountains
National Park. Conceived by WWF and the Brazilian Instituteof Environment and Renewable Natural Resources, this 3.9
million-hectare park – roughly the size of Switzerland – is theworld's largest tropical forest national park and home toseveral threatened species, including jaguars, macaws, andharpy eagles.

WWF focused on finding a solution, even arranging a private
meeting between WWF Director General James Leape andIndonesian President Susilo Bambang Yudhoyono. Much of
the intended land was in fact too steep, high, and infertile foroil palm, but a WWF study revealed a viable alternative: anarea three times greater than the proposed plantation which
was not only more suitable but also considered “idle land”.

In Borneo, illegal logging
is pushing many species
to the brink.

By working together with eight government ministries, thepalm oil sector, and other NGOs, we succeeded in halting
this destructive 1.8 million-hectare project before forest
clearing could begin. In March 2006, the launch byIndonesia, Malaysia, and Brunei of the Heart of Borneo
initiative at the meeting of the UN Convention on Biological
Diversity confirmed the Indonesian government’s commitment
to the conservation and sustainable development of the area
– another example of how presenting “win-win” solutions topolitical and commercial interests can bring tangible results
where confrontation alone is likely to fail.

‘‘By the end of 2006, less than four years
since its inception, ARPA has createdover 23.5 million hectares of new parks
and reserves...

’’5

facing a water crisis
Water is as essential as the air we breathe. Without it,
there is no life. Yet although more than 70 per cent of ourblue planet is covered by water, less than 3 per cent of itis fresh water, and much of that is locked up in glaciers,
snowcaps, and permafrost, leaving only a tiny fraction
suitable and available for human use – for drinking,sanitation, hydro-electricity, industry, inland transport,
fishing, and growing crops. Of these, agriculture uses
by far the most – almost two-thirds. With a quarter ofthe population facing a shortage, the world is alreadyexperiencing a severe and growing water crisis that is
mirrored by the steep decline in freshwater ecosystems.
Clearly something has to be done and one of the firststeps is to curb agriculture’s thirst for water.

Quenching “thirsty” crops
In the past two years, WWF has worked closely with leading
multinational companies, NGOs, and research institutes tochange the way that thirsty crops, especially cotton, rice,and sugar, are grown. The aim is to introduce better farming
practices that reduce the environmental and social impacts
of cultivation, while also increasing farm income.

More cotton for less …
It is ironic that cotton, a crop that needs a lot of water, ismostly grown in hot, semi-arid countries where water is at
a premium. One such country is Pakistan, where WWF has
an ongoing programme to encourage farmers to conserve
water by adopting “bed and furrow” irrigation in combination
with integrated pest management techniques.
Results of these efforts over the last five years demonstrate that
more cotton can be grown using up to 30 per cent less water,
up to 25 per cent less chemical fertilizer, and less than half the6

Growing rice:
traditionalfarming
methods require
vast quantities
of fresh water.

pesticide – while putting more money into farmers’ pockets. Thisnot only reduces the crop’s dependence on water, but also helps
stabilize the surrounding ecosystem by maintaining the area’s
natural flows, benefiting species like the Indus River dolphin.
Similar results can be gained when other major crops such as
sugar cane and wheat are raised using improved crop practices.

Managing water for people
and nature
Each year the Mara-Serengeti region in Africa experiences
one of nature’s grandest spectacles. In April and May, morethan 1 million wildebeest, over 200,000 zebras, and about
400,000 Thomson gazelles migrate westward from the Ndutu
Plain of Tanzania in search of food and the region’s most fragile
resource, water. One of the few reliable sources they find is the
Mara River, the only perennial river in the region. In recent
years, however, the Mara has been subject to increasing
demands from agriculture, mining industries, and a growing
human population, as well as deforestation in its headwaters.
Significant reduction in flow and quality are already evident,
especially during the dry season.

GLOWS to the rescue
To counter the problem, WWF is working with the Norwegian
Agency for Development Cooperation (NORAD) and the Global
Water for Sustainability (GLOWS) programme, a consortium
led by the Florida International University and backed by the
US Agency for International Development, to help local
communities around the Masai Mara and Serengeti reservesin Kenya and Tanzania to set up systems for monitoring water
quality and quantity, and develop ways to finance sustainableriver conservation for both people and nature. Similar GLOWS
integrated water resource-management initiatives are under way
in Latin America and India, with more to follow in coming years.

Rice facts
Half the world depends on rice,and more than 90 per cent of it isgrown in Asia. Traditional farming
needs 3,000 to 5,000 litres ofwater to produce a kilo of rice.
A typical adult in Southeast Asia
consumes 160 kilos of rice ayear, making a yearly waterrequirement of at least 500,000
litres per person! By introducing
the “System of RiceIntensification” (SRI), more rice
can be grown per litre. Resultsfrom SRI pilot projects in India,
supported by WWF, have shown
substantial increases in crop
yields – and farmer incomes –while using about 30 per centless water.

Left: Freshwater
fish provide vital
protein as well asa livelihood formany communities
around the world.

Below: In Nairobi,
Kenya, water
is becoming
increasingly
scarce in certain
areas due topopulation growthand urbanization.

Bottom: If thewaters of the
Mara River run
dry, theseBurchell's zebras
and many otherspecies will suffer.

7

extinction:
the ultimate challenge
There is a species extinction crisis. This year’s
IUCN Red List includes 16,118 species known to bethreatened, up by over 5,500 in just ten years. Threats
to biodiversity are at an all-time high, caused bydetrimental human activities across the globe. In
practical terms, species loss means a less healthy
and resilient environment, less food, fewer fish in
the sea, fewer plants and animals in the forests, lessfresh water and, in the long term, less income forcommunities. If we lose our species, we lose thefundamental building blocks that keep our planet aliveand sustain us. From that, there is no way back. And
that is bad news for species, bad news for the planet,and bad news for people.

Learning to live with wildlife
As human populations expand ever further into natural
habitats, people and animals are increasingly coming into
conflict over living space and food. With dwindling natural
food resources available, wild animals in many areas areforced to turn to human-owned alternatives. As a result,people lose their crops, livestock, property, and sometimes
their lives. The animals, many of which are alreadythreatened or endangered, are often killed in retaliation or toprevent future encounters. Human-wildlife conflict is on therise, increasingly affecting different species, peoples, andindustries across the planet.

8Fighting backfrom extinction
Rhinos are one of WWF’s“flagship” species: by focusing on
their conservation, many otherspecies which share their habitats
may also benefit. There are fiverhino species in Asia and Africa:
Javan rhinos are the rarest andare critically endangered.
Estimates indicate only 28 to 56of them in Indonesia, with anothereight in Vietnam. Only about 300
Sumatran rhinos are thought tosurvive, though their cousins the
Indian rhino are thriving insanctuaries, with about 2,400
known individuals. In Africa thenorthern white rhino population isdown to under ten, though theirsouthern white relatives number
over 14,000. Black rhinos are also
gradually increasing and currently
number around 3,700 individuals.

Active involvement
WWF and its partner organizations work around theworld with local communities to reduce human-wildlife
conflict. With solutions in place, communities havethe opportunity to value and benefit from theirwildlife, and in their turn, often become enthusiastic
conservationists themselves.

Baby boom for rare rhinos
In an all too rare piece of positive news, evidence
has been found of four Javan rhinos born recently inIndonesia – a surprising baby boom for a species that
may be reduced to fewer than 60 individuals worldwide(see box, left). Signs of the rhino calves were discovered
in Indonesia’s Ujung Kulon National Park by a team of
biologists, including park rangers and WWF staff.
They are the first known births for the Javan rhinos inthree years.

Above: Conflict
between humans
and wildlife suchas bears andtigers can be
reduced bycreating corridors
to allow themaccess to food andshelter.

“Javan rhinos are probably the rarest large mammal
species in the world and they are on the very brink ofextinction,” said Arman Malolongan, Director Generalof Forest Protection and Nature Conservation atIndonesia’s Ministry of Forestry. “To discover that thispopulation is breeding, and even slowly growing, gives
us hope for the species’ future.”

Tigers, elephants,
bears, wolves…
and people
Among the many ways that WWF
and its various partners try toresolve human-wildlife conflict are:
• Creating new protected areas,
improving management ofexisting ones, and creating
corridors to allow elephants,
tigers, bears, and other wildlife
access to food and shelter• Using innovative solutions suchas chilli and tobacco-based
deterrents to protect crops
from hungry elephants in Africa
and India• Using teams of domestic
elephants to chase wild onesout of oil palm plantations inIndonesia and community
farmland in India• Creating different livelihood
opportunities for communities• Improving livestock
management to reduce
predation by tigers or snow
leopards in India, Malaysia,
Mongolia, and Pakistan

Through the work of WWF and the Ujung Kulon
National Park Authority, effective law enforcement has
resulted in the complete elimination of rhino poachingin the park since the early 1990s.

Elephants can destroy a year’s crop in one
night. WWF works with local people
to identify practical solutions to repel
wildlife from village plots.

9

safeguarding the oceans
Once considered inexhaustible, our oceans are now in astate of global crisis as more and more people compete
for fewer and fewer fish. Overfishing threatens coastal
communities and the food security of the millions who
rely on marine fish as an important source of protein.
More than 70 per cent of the world’s commercial marine
fish stocks are either fully exploited, overfished, or
recovering from overfishing. Yet the solutions are in ourhands, because what we buy for dinner tonight candetermine whether tomorrow’s generations will continue
to enjoy the oceans’ riches. Or not.

Getting fisheries in balance toprotect species
Not everything caught in a fishing net makes it to the table.
Every day millions of creatures are caught in equipment
intended for other species. Modern fishing gear, intensively
deployed and extremely powerful, is very efficient at
catching fish – as well as anything else in its path. This
“incidental” catch is called bycatch. All types of marine life,
including whales, dolphins, sharks, seabirds, starfish, crabs,
and turtles are killed as bycatch. Every year, for example,
over 300,000 whales, dolphins, and porpoises die in fishingnets, and over a quarter of a million threatened marine
turtles are caught on longline hooks.

Turning the tide
It is a monumental challenge, but we can turn the tide by
persuading major seafood buyers to demand change, bydemonstrating the viability of alternative fishing technology,
and by encouraging fleet owners to pioneer different
approaches, while lobbying hard for regulatory reforms.
Already our “Smart Gear” competition rewards innovative
thinking from all over the world, with a US$25,000 award for
10

ideas such as using strong magnets to repel sharks from
longline hooks, or weighting hooks to sit at a depth of 120m,
far below endangered turtles and albatross. And a WWFsponsored programme in Ecuador has seen a 90 per centreduction of marine turtle bycatch by replacing traditional “J”
shaped longline hooks with specially designed circle hooks.

A bycatch black list

More MSC-certified seafood =more sustainable fish

• 9 species of dolphins and porpoises arelikely to disappear in the next decadethrough entanglement in lines and nets.

The Marine Stewardship Council (MSC), co-founded by WWF
in 1997, rewards sustainable and well-managed fisheries with
their distinctive blue eco-label. By 2006, 21 fisheries had beencertified against the MSC’s standards and labelled to prove it.
A further 30 are undergoing assessment. Together theyaccount for more than 6 per cent of global seafood catch andcover some of the world’s major fisheries. To date, over 100
major seafood buyers have pledged to purchase MSC-certified
seafood products, including large supermarket chains inFrance, Germany, Switzerland, and the UK. Overall, there are
currently around 450 MSC-labelled fish products on sale in 26
countries – ranging from fresh, frozen, smoked, and canned
fish to fish oil dietary supplements.

• Longline fisheries account for the captureof more than 250,000 loggerhead andleatherback marine turtles each year.

World’s largest retailer sets a green precedent
With an annual turnover larger than many nations'
economies, Wal-Mart serves roughly 100 million people
each week. Now the global retail giant has committed tosourcing all fresh and frozen products in North American
stores from MSC-certified fisheries within five years. With
guidance from WWF and partners, this decision to raise thebar for fish suppliers is just one example of Wal-Mart’s
environmental commitment, and illustrates the power ofbusiness to influence widespread change.

• One shark dies for every two swordfish
that are caught in illegal Moroccan
driftnets – around 100,000 sharks a year.
• 22 species of seabirds, including 17 of
the 21 species of albatross, are declining
mainly because of longline fishing.

Left: Fishermen
in Mauritania
often findthemselvescompetingagainstindustrial
trawlers for fish.

Right: For every
one leatherback
turtledisentangledfrom fishing nets,
thousands ofothers will die
as incidental
bycatch.
Below: These
spiny lobsters in
Baja California,
Mexico, havebeen certified by
the Marine
StewardshipCouncil (MSC) –a guarantee forthe consumer
that the catch issustainable.

‘‘...over a quarter ofa million threatenedmarine turtles arecaught on longline
hooks

Billion 2003 (constant) global hectares

a clear andurgent message

Fig. 1 Ecological Footprint 1961 – 2003
14

Built-up land
Nuclear energy
CO2 from fossil fuels
Fishing ground
ForestGrazing land
Cropland

12
10
8
6
4
2
0
1960

The message of the Living Planet Report is clear and urgent:
we must balance our consumption with the natural world’s
capacity to regenerate and absorb our wastes. Progress
must be made on many fronts, from reversing our overharvesting of fish to controlling our use of fresh water. The
report also makes it clear that first and foremost we mustchange the way in which we generate and use energy. Our
reliance on fossil fuels, and the climate-changing emissions
that result, now makes up 48 per cent – almost half – of ourglobal footprint.

1980

1990

2000 03

Fig. 2 Living Planet Index 1970 – 2003
1.8
1.6
1.4
Index (1970=1.0)

The Living Planet Report 2006*, published in October, isWWF’s biennial update on the health of the natural world
and our impact on it. This latest edition confirms that we areusing the planet’s resources faster than they can be
renewed. Humanity’s “ecological footprint” (Fig.1) – our
impact upon the planet – has more than tripled since 1961,
and now exceeds the world’s ability to regenerate by about
25 per cent. The report also tells us that this relentlesspressure is having predictable consequences on biodiversity:
the Living Planet Index (Fig.2), which tracks the populationsof 1,300 vertebrate species, shows a decline of more than
30 per cent since 1970.

1970

The Ecological Footprint measures humanity’s demand on thebiosphere. It includes all the cropland, grazing land, forest andfishing grounds required to produce the food, fibre, and timber
we consume, to absorb the wastes emitted in generating theenergy we use, and to provide space for our infrastructure. In
2003, demand exceeded supply by 25%.

1.2
1.0
0.8
0.6
0.4
0.2
0

1960

1970

1980

1990

2000 03

Trends in populations of terrestrial, marine, and freshwater
vertebrate species show a decline of more than 30% since 1970.

12*Living Planet Report 2006: http://www.panda.org/livingplanetmeeting thefunding challengeLong-term financial support is always one of WWF’s
greatest challenges and we are especially grateful to
our loyal donors who each year enable us to keep ourmany vital programmes going.

The Oak Foundation: restoring Europe’s fisheries
European countries are legally committed to managing theirfisheries sustainably. Despite this, fish stocks are still
declining in European waters. Today the adults of several
species number just 10 per cent of what they were 30 years
ago. The Oak Foundation’s substantial financial support is
helping WWF to develop a holistic management plan for therecovery of Europe’s marine ecosystems by strengthening
and implementing the reformed EU Common Fisheries Policy.

The MAVA Foundation: a blueprint for action
WWF and another of its partners, the MAVA Foundation, aim
to change the way governments protect biodiversity. Using
the work programme of the Convention on Biological
Diversity (CBD) as a blueprint for action, WWF is engaging
scientists, government officials, NGOs, local authorities, andbusiness people to set up well-managed networks ofprotected areas in some 25 countries. The programme, tobe implemented over five years, involves trans-boundary
planning that WWF is uniquely placed to promote. Throughthis work, we hope to influence the 188 Parties to theConvention and accelerate their conservation actions.

From kids to corporations,
we thank you!
Almost 5 million supporters, ranging fromschool children to corporations andfoundations, make financial or in-kind
contributions that add up to around70 per cent of WWF’s global yearly income.
From kids to corporations, we thank you!
We thank every one of them and deeply
appreciate
supportof our ranging
goals.
More than 5theirmillionsupporters,from school children to corporations andInaddition tomake
thosefinancial
mentionedon the left
foundations,or in-kind
and
on
pages
18
and
19,
WWF
contributions that add up to around 70 per
International
grateful
to: Fondationcent of WWF’sisglobal
yearlyincome. We
Audemars-Piguet;
Bruno
Figueras;
thank every one of them anddeeply Groth
AG;
Felix
and
Jenny
Hofbauer(inappreciate their support of our goals.
Inmemorium);Dr
Luc
Hoffmann;Andréandaddition to those mentioned below,
WWF
Rosalie
Hoffmann;
IBTT
BV;
IKEA
of
International is grateful to Fondation
SwedenAB; BanqueLombard
Odier
DarierAudemars-Piguet;
Bruno
Figueras;
Groth
Hentsch&Cie;
Propaganda;
SwitcherSA;
AG; Felix and Jenny Hofbauer (inUniross
Batteries
SAS;
Fondazione
memorium); Dr Luc Hoffmann; André and
Ermenegildo
Zegna;TheBV;
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Rosalie Hoffmann;
IBTT
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members
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1001:
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Nature&Trust;and the manySwitcher
donors SA;
HentschCie; Propaganda;
who
prefertoremainanonymous.
Uniross Batteries SAS; Fondazione
Ermenegildo Zegna; The Living Planet ClubThank
youmembersall!
members;of The 1001: A Nature
Trust; and the many donors who prefer toremain anonymous. Thank you all!

13

income andexpenditureNotes to the accounts

WWF International

WWF International: income and expenditure

In FY 2006, WWF International
spent CHF8,040,000 on:

With greater support from our nationalorganizations, and governments and aid
agencies, income increased by 20 per cent,resulting in substantially greater fundingfor our conservation work.

Two-year summary 2005-2006

WWF Network
The total WWF Network income grew by
CHF100 million to CHF704.5 million, an
increase of more than 16 per cent. All
income increased, particularly donations
from individuals, legacies, and trusts andfoundations.
The network’s operating surplus was
CHF98.3 million, up from CHF48.8 million
the previous year, as some programmefunding was received too late to be spentin the same financial year. This surplus will
be used to fund our ongoing projects andprogrammes and help us reach ourconservation targets.

Chiew Chong
Director of Finance & Administration
WWF International
14

1. Joint Fundraising
Fundraising income (donations, royalties,etc.) which is raised jointly with a National
Organization is recorded as income from
National Organizations.

2. Financial Income (Net)
Based on 5% of investible funds.

3. Conservation Policy
and Awareness2005(6)

2006

2006

(CHF'000)(CHF'000)(US$'000**)

WWF National Organizations (1)Individuals (1)Legacies and Bequests
Corporations (1)Trusts and Foundations (1)Governments and Aid Agencies
Royalties (1)Financial Income (Net) (2)Other

69,291
2,264
85
7,030
6,717
28,951
687
1,095
272

85,444
1,878
1,147
7,433
6,563
34,620
1,145
1,787
273

66,689
1,465
895
5,801
5,123
27,021
894
1,394
213

Total

116,392

140,290

109,495

Conservation Programmes
Conservation Policy and Awareness (3)Network and Learning Services (4)Fundraising
Finance and Administration
Fixed Asset Expenditure

93,282
5,541
4,635
3,588
5,344
289

116,651
8,040
5,365
4,347
5,496
310

91,046
6,275
4,187
3,393
4,289
242

Total

112,679

140,209109,432

Operating surplus
Non-operating items (5)Surplus after non-operating items

3,713
1,055
4,768

81
6,323
6,404

63
4,935
4,998

*Financial years cover the period 1 July to 30 June** Average US exchange rate for the year: 1.28123

Financial Year*
OPERATING INCOMEOPERATING EXPENDITURE(CHF'000)
3,921
4,119

Conservation Policy
Awareness

4. Network and Learning Services
WWF International expenditure in supportof the activities of National Organizations.
Includes legal and trademark costs.

5. Non-operating Items
Non-operating items were:2005(CHF'000)
Transfer fromendowment funds
(39)

2006
(CHF'000)(204)

Donations toendowment funds

1,094

6,527

Total

1,055

6,323

6. Comparative Figures
FY2006 Finance and Administration costs
are shown as gross amounts without
reallocations. The FY2005 comparative
figures have been restated accordingly.

WWF International: balance sheet

Notes to the accounts

Two-year summary 2005-2006

1. Marketable Securities

Financial Year*

2005

2006

2006

(CHF'000)(CHF'000)(US$'000**)

Current Assets– Cash– Short-term bank deposits– Marketable securities (1)– Recoverable taxes and other items
Fixed Assets (2)30,718
10,177
13,1435,475
6,990

30,051
13,187
20,915
7,171
7,030

24,372
10,695
16,962
5,816
5,702

Total

66,50378,35463,547

Accounts Payable and Accrued Expenses
Mortgage Payable (3)Operating Funds (4)Capital and Endowment (5)12,611
1,940
34,93017,022

18,554
1,940
35,411
22,44915,048
1,573
28,71918,207

Total

66,50378,35463,547ASSETSLIABILITIES AND FUNDSAt the end of the financial year, cash andshort-term deposits comprised 67% of total
cash, bank deposits, and marketablesecurities, compared to 76% a year ago.

2. Fixed Assets
All fixed asset costs regarding the renovationof the main building and the purchase andrenovation of the pavilion in Gland have been
capitalized. All other fixed asset costs arecharged to expenditure at the time of purchase.

3. Mortgage Payable
Mortgage payable refers to the bank loan forthe purchase and renovation of the pavilion
in Gland.

4. Operating Funds*Financial years cover the period 1 July to 30 June**Exchange rate CHF1.2330 = US$1, as at 30 June 2006

WWF Network: income and expenditure 2006
Income US$550 million
Other

Expenditure US$473 million

Financial Income

TRAFFIC

2%Royalties
7% 3% Sponsorship Fees

Administration

1% 10%

1%
42%

17%

19% Governments

and Aid Agencies

Individuals

Fundraising

42%
Programme

11% Awareness
7%
6%
13%
Legacies

4%
Conservation Policy
4%

Trusts and Foundations
Corporations

11%

Education

Network Contributions

Operating funds are those funds available for
expenditure on conservation awareness andpublic policy, National Organization support,
direct fundraising, administration andfinance, and fixed asset expenditure.

5. Capital and Endowment
Includes The 1001: A Nature Trust, a trust
fund built up through individual membershipcontributions; the Sigvaldason Fund, alegacy from the late Mrs Gerda Sigvaldason;
the Endowment Fund built up primarily fromthe proceeds of the WWF 25th Anniversary
Coin Collection programme; the Prince
Bernhard Scholarship Fund for Nature
Conservation, the income from which will be
used to achieve conservation worldwide,
including to help build conservation capacity,
provide training and scholarships, etc.; andstatutory capital of CHF20,000, representing
the initial capital of WWF.
Audited financial statements are available on request.

15

WWF Network: income and expenditure*

Notes to the accounts

Two-year summary 2005-2006

1. Individuals

Financial Year**
OPERATING INCOME

2005***

2006

2006

(CHF'000)(CHF'000)( US$'000†)

Individuals (1)Legacies and Bequests
Corporations (2)Sponsorship Fees
Trusts and Foundations
Governments and Aid Agencies
Royalties (3)Financial Income (Net) (4)Other

260,170
61,18239,284
6,086
37,312132,046
13,391
39,821
14,992

297,485
91,71841,7206,369
46,531130,972
19,31753,543
16,802

232,187
71,58632,562
4,971
36,317102,223
15,077
41,79013,114

Total

604,284

704,457

549,827

Conservation– Programme (5)– Conservation Policy, Education, and Awareness (6)– Network Contributions (7)– TRAFFIC (8)Fundraising
Finance and Administration

249,963
95,86554,882
5,163
91,484
58,139255,135
113,635
67,5904,870
102,032
62,875

199,132
88,69252,754
3,801
79,63649,074

Total

555,496606,137

473,089

Surplus to support current and future projects

48,78898,32076,738OPERATING EXPENDITURE

Monies received from WWF individual supporters,
including regular dues and fundraising activities.

2. Corporations
Donations from corporations, excluding royalties,
licensing, and sponsorship fees.

3. Royalties
Monies received from royalties, licensing, and the sale of
WWF products via WWF catalogues and retail outlets.

4. Financial Income (Net)The net results of dividends, bank interest, exchange
differences, gains/losses on marketable securities, bankcharges, etc.

5. Programme
Costs of the WWF Network global conservation programme.

6. Conservation Policy, Education,
and AwarenessIn FY 2006, the WWF Network spent CHF113,635,000 on:(CHF'000)
Conservation Policy
24,633
Education
25,025
Awareness
63,977*The figures given show total WWF Network income and expenditure but do not represent consolidated accounts. The network includes WWF
International and its Programme Offices, and all the WWF National Organizations and their Programme Offices.

7. Network Contributions**Financial years cover the period 1 July to 30 June for WWF International and all National Organizations except: WWF-India, WWF-Japan,
WWF-South Africa (1 April to 31 March); WWF-Germany, WWF-Hungary, WWF-Italy, WWF-Norway, WWF-Philippines, WWF-Spain, and WWFTurkey (1 January to 31 December preceding year).

Support provided by the National Organizations forleadership and coordination, services rendered to the
WWF Network, and the operating costs of the field offices.

***Updated†Average exchange rate for the year: CHF1.28123= US$1

16

8. TRAFFICThe TRAFFIC (Trade Records Analysis of Flora and Fauna
In Commerce) Network is the world’s largest wildlife trademonitoring programme, and is a joint programme of WWF
and IUCN – The World Conservation Union.

WWF International Board and Directors
WWF INTERNATIONAL
BOARD MEMBERS 2006PRESIDENT
Chief Emeka Anyaoku* (Nigeria)- Former Commonwealth SecretaryGeneral- Former Nigerian Foreign Minister- Chair, Advisory Panel on International
Support for NEPAD to the UN
Secretary-General- Chair, Presidential Advisory Council
on International Relations, Nigeria- Vice-Chair, Board of the South
Centre, Geneva- Trustee, British Museum, United Kingdom
VICE-PRESIDENT
Mr Jamshyd Godrej* (India)- Chair and Managing Director, Godrej& Boyce Manufacturing Co Ltd- Chair, Aspen Institute, India- President, WWF-India
HONORARY TREASURER
Mr Eric Sarasin* (Switzerland)- CEO, Private & Institutional Clients, andmember, Executive Committee, Bank
Sarasin & Co Ltd- President, German-Swiss Chamberof Commerce- Board Member, Basel Zoo- Member, Swiss-American Advisory Board
TRUSTEESMr Atilla Aksoy (Turkey)- Chair, Advertising Programme, Istanbul
Bilgi University- President, WWF-Turkey
Ms Cheryl Carolus (South Africa)- Executive Chair, Peotona Group
Holdings Pty Ltd- Chair, South African National Parks- Former Chief Executive,
South Africa Tourism

Mr Alvaro de Souza (Brazil)- Director, AdS – Gestão, Consultoria
e Investimentos Ltda
- Chair, WWF-Brazil
Prof D Francisco Diaz Pineda (Spain)- Professor, Complutense Universityof Madrid- Chair, WWF-Spain
Prof Paul Galand (Belgium)- Researcher and Former FNRS Director,
Faculty of Medicine, Free Universityof Brussels- Commentator and Scientific Adviser,
RTBF-TV, Belgium- Vice-Chair, WWF-Belgium

The Hon William K Reilly* (USA)- President and CEO, Aqua
International Partners
Chair, WWF-US (until October 2006)
Mr Altaf Saleem (Pakistan)- Federal Minister & Chair,
Earthquake Reconstruction andRehabilitation Authority- Federal Minister & Chair, National
Vocational and Technical
Education Commission- President, WWF-Pakistan
Mr Robert Schenker (Switzerland)- Independent Financial Adviser- Chair, WWF-Switzerland

Her Majesty Queen Noor (Jordan)- Patron, IUCN
- President Emeritus, Birdlife International- Chair, King HusseinFoundation International

Mr Johan Schroeder (Denmark)- Consul General for New Zealandto Denmark- Former President and CEO, Radiometer- Chair, WWF-Denmark

Mr Thymio Papayannis (Greece)- President, Society for the Protectionof Prespa- Director, Med-INA (Mediterranean
Institute for Nature and Anthropos)- Co-founder and Honorary President,
WWF-Greece

Mr Marcus Shaw (Hong Kong)- Managing Director, Shaw and Sons Ltd- Chair, WWF-Hong Kong

Mr Robert Purves (Australia)- Chair, DCA Group Ltd- Member, Wentworth Group ofConcerned Scientists- President, WWF-Australia
Dr Jorgen Randers* (Norway)- Professor, Norwegian Schoolof Management- Chair, WWF-Norway
Mr Mark Read (South Africa)- Chair, Everard Read Gallery- CEO, Palaeoanthropologist
Scientific Trust- Chair, WWF-South Africa

VICE-PRESIDENTS EMERITIDr Luc Hoffmann
S Babar Ali
The Hon Mrs Sara Morrison

WWF INTERNATIONAL
DIRECTORS 2006
DIRECTOR GENERALMr James P Leape
NETWORK RELATIONSDr Sheila O’Connor- Programme Audits
Mr Jamie Pittock- Global Freshwater Programme
Mr Duncan Pollard- Global Forests Programme
Dr Georg Schwede- Europe & Middle East
Conservation Programme
Mr Gordon Shepherd- International Policy

Dr Chris Hails (from 01.10.06)
PROGRAMMEDr Chris Hails (until 30.09.06)
Dr Guillermo Castilleja (from 01.10.06)- Director
Ms Pascale Moehrle- Deputy Director

Dr Magnus Sylvén- Europe & Middle East
Regional Programme
Ms Jennifer Morgan (until 30.09.06)
Mr Hans Verolme (acting, from 02.10.06)- Global Climate Change Programme
OPERATIONSDr Simon Cripps- Global Marine Programme

Mr Paul Steele- Chief Operating Officer

Mr Tsunenari Tokugawa (Japan)- Adviser to the President, NYK- President, Tokugawa
Memorial Foundation- Senior Board Member, WWF-JapanMr Clifton Curtis (until 31.03.06)- Global Toxics Programme

Ms Dorothy Bray (until 31.03.06)- Human Resources Development

Dr Timothy Geer
- Government & Aid Agency Relations

Mr Chiew Chong- Finance & Administration

Mr Karel Vuursteen (Netherlands)- Board member and former Chair,
Heineken NV- Chair, WWF-Netherlands

Dr Sue Lieberman- Global Species Programme

Mr Mario Fetz (until 31.03.06)- Fundraising & Marketing

Dr Isabelle Louis- Asia & Pacific Regional Programme

Ms Lynda Mansson- Global Operations

Dr Meg Symington (acting, until 10.09.06)
Mr Howard Lyon (acting from 11.09.06)- Latin America & Caribbean
Regional Programme

Mr Jon Marshall (from 01.10.06)- Field Operations Unit

Mr Christopher Ward (United Kingdom)- Chair and Co-Founder,
Redwood Publishing- Chair, WWF-UK*Executive Committee Members

PRESIDENT EMERITUS
HRH The Duke of Edinburgh

Dr Yaa Ntiamoa-Baidu- Africa & Madagascar
Regional Programme

Mr Thomas Schultz-Jagow- Communications
LEGAL ADVISER
Mr Michael Rogers OBE

17

common interests,
positive partnerships
WWF sees business as central to the well-being ofsociety and the planet. Our challenging and innovative
partnerships with the private sector not only provide
conservation benefits which help us carry out our
mission, but also contribute to increasing the businesssector’s commitments to sustainable development andenvironmentally sound, commercially rewarding
business practices – proving that good citizenship isgood business.

Nokia – environmental commitment from within
Our partnership with mobile communications leader Nokia
is an excellent illustration of how we work together withbusiness to achieve real rather than cosmetic environmental
commitment. In June 2006, WWF and Nokia renewed theirthree-year agreement to build employee environmental
awareness and responsibility, and to help Nokia managers
include environmental sustainability in their normal businesspractices. Additionally, WWF will start to support Nokia in its
current environmental focus areas, which are energy efficiency,
substance management, and take back and recycling.

Right:Thefishingcommunity of
Sena Madureira,Brazil, benefits
from HSBC’s
support in the
management of
its floodplain
resources

Canon Europe: our longest business partnership
Canon Europe has been a loyal and committed WWF
Conservation Partner since 1998 and continues to support
a broad range of our activities, from enhancing our imagebank to contributing towards the preservation of endangered
species such as marine turtles and polar bears. As a major
paper supplier and a member of WWF’s European Paper
Group, Canon Europe has introduced a robust supply chain
evaluation system to ensure that its stock comes only fromsustainable forests.

Wallenius Wilhelmsen Logistics on the high seas
WWL sponsors WWF’s High Seas initiative and demonstrated
its commitment by organizing staff workshops on high seas
issues in Europe and the USA. Participants came up withideas to help WWL further increase its environmental
performance, such as a zero-emissions vessel – fuelled only
by wind, wave, and solar energy yet capable of carrying
10,000 cars at 15 knots. If widely adopted, the concept
would hugely contribute to cutting greenhouse gases andocean pollution.

Top: WWF and Lafarge staff confer
on environmental issues at a gravel
pit near Bernières-sur-Seine, France.
Bottom: WWF’s partnership with
Canon supports the organization’s
work in many different ways.

18

Lafarge – going beyond Kyoto
In 2000, Lafarge, the world leader in building materials,
partnered with WWF and, the following year, committed to a
10 per cent reduction in its absolute gross CO2 emissions inindustrialized countries by 2010. This is well beyond the
Kyoto limits, and 2005 already saw a reduction of 8.5 percent. Since the renewal of the partnership in 2005, joint
work continues on climate change and biodiversity, andnew areas cover sustainable construction and persistentpollutants. Lafarge committed to improve its performance byreducing its emissions of persistent pollutants through thedevelopment and implementation of best management
practices for the cement production process. A set ofindicators are also being developed with which to report onenvironmental performance on a yearly basis.

Challenging campaigns thanks to Ogilvy
Ogilvy and Mather, a leading advertising agency, has
supported WWF's work for over three decades by providing
free creative advertising. This long-lasting partnership iscurrently helping WWF to challenge audiences to act on
issues ranging from energy consumption to protected areas
with some hard-hitting print and television campaigns.
Through O&M, WWF has established a key relationshipwith MindShare, a global media company, and ouradvertisements get placed pro bono in leading international
publications such as Newsweek, BusinessWeek, National
Geographic, Fortune magazine, and Time.

HSBC: investing in nature
Since 2002, HSBC and WWF have pursued two goals:
achieving significant freshwater conservation in four priority
regions around the world and helping make HSBC’s corebusiness more sustainable. This has resulted in theestablishment of a series of lending guidelines incorporating
environmental standards, such as those set by the Forest
Stewardship Council and the World Commission on Dams.

19

a living memory
In September this year, the global conservation
community suffered a loss so enormous that it touchedpeople throughout the world. Some of Nepal’s mostaccomplished conservationists, including government
leaders and seven of WWF’s most experienced andtalented staff, lost their lives in a tragic helicopter crash in
the Kanchenjunga Conservation Area of Nepal. The
group had just participated in a ceremony to hand overmanagement of this area to the local communities – amajor milestone for conservation, achieved after many
years of collaborative work, that will benefit both natureand people.
The Kanchenjunga Conservation Area is a jewel within
the Eastern Himalayas – a unique area spanning Nepal,
India, and Bhutan, and home to diverse cultures,
habitats, and rare wildlife species. For WWF’sconservation leaders who participated in the special
ceremony – Dr Jill Bowling Schlaepfer, Dr Chandra
Gurung, Dr Harka Gurung, Jennifer Headley, Yeshi
Choden Lama, Matthew Preece, and Mingma Norbu
Sherpa – the event was a symbol of their vision, passion,and commitment.
WWF will honour them by continuing to work together
with its partners to support this important area, and to
implement the long-term conservation plan for theregion. Our goal over the next three years is to secure
the resources required to ensure that the work and visionof our departed colleagues is fully realized. A memorial
fund has been established to help us achieve this aim,
and to provide scholarships for the next generation ofconservation leaders in Nepal.

20

Passengers on Shree Air 9NAHJ
Top: The poaching of snow leopards fortheir luxurious pelts continues to be athreat to their survival.
Bottom: These children represent the futureof conservation in the Annapurna region.

Dr Bijnan Acharya
Ms Margaret Alexander
Mr Hem Raj Bhandari
Dr Jill Bowling Schlaepfer
Dr Chandra Gurung
Dr Harka Gurung
Ms Jennifer Headley
Captain Klim Kim
Mrs Yeshi Choden Lama
Dr Tirtha Man Maskey
Mr Pauli Mustonen
Dr Damodar Parajuli
Mr Narayan Poudel

Mr Matthew Preece
Mr Gopal Rai
Mrs Meena Rai
Mr Sharad Rai
Flight Engineer Valeriy Safronov
Captain Mingma Sherpa
Mr Mingma Norbu Sherpa
Mr Vijaya Shrestha
Mr Sunil Singh
Cabin Attdnt Guruwar Tandul
Mr Dawa TsheringWWF worldwide network
Australia
Austria
Belgium
BhutanBolivia
BrazilCanadaCaucasus (Georgia)
Central Africa (Cameroon)
Central America (Costa Rica)
China
Colombia
Danube/Carpathian (Austria)
Denmark
Eastern Africa (Kenya)
FinlandFranceGermany
Greater Mekong (Vietnam)
GreeceGuianas (Suriname)Hong Kong
Hungary
India
Indonesia
Italy
Japan
Madagascar
Malaysia
Mediterranean (Italy)
MexicoMongolia
Nepal

Netherlands
New Zealand
NorwayPakistan
Peru
Philippines
PolandRussiaSingapore
South Africa
Southern Africa (Zimbabwe)
South Pacific (Fiji)
Spain
SwedenSwitzerland
Tanzania
TurkeyUnited Kingdom
United States
Western Africa (Ghana,
Senegal)European Policy (Belgium)
Macroeconomics for
Sustainable Development (US)WWF Associates
Fundación Vida Silvestre(Argentina)
Fundación Natura (Ecuador)
Pasaules Dabas Fonds (Latvia)
Nigerian Conservation
Foundation (Nigeria)
Fudena (Venezuela)

For contact details
and further information,please visit ourinternational website:

Credits
Written by Andrew White Creative Communications,
Switzerland
Designed by Watershed Design, London
Project management by MCG Productions, Switzerland
Produced by Corporate Communications, WWF International
Printed by Imprimerie Cavin, Switzerland on Aconda
Verd Silk*, using vegetable oil-based inks.
*Aconda Verd Silk is made from recycled
post-consumer waste paper and wood
fibre from well-managed forests certified
in accordance with the rules of the FSC.

© 1996 Forest Stewardship Council AC
All images have been supplied by the WWF-Canon Photo Database.
We take the opportunity to thank the photographers for their longstanding collaboration.
Front and back cover: Martin Harvey; inside front cover: Jean-Luc Ray;p1: Helen Morf (main image); Ezequiel Scagnetti; p2: Wim Van Passel;
p3: Michel Gunther (top); WWF (bottom); p4: Michel Roggo (mainimage); Zig Koch (top); André Bärtschi (bottom); p5: Alain Compost; p6:
Michel Gunther; p7: Elizabeth Kemf (main image); Martin Harvey (top &bottom); p8: Martin Harvey (main image); p9: Sanchez & Lope (top left);
Klein & Hubert (bottom left); Martin Harvey (bottom right); p10: Mark
Edwards; p11: Michel Gunther (main image); Gustavo Ybarra (bottom);
p12: Shu Xiaonan; p13: Matt Wilkinson (left); Michel Gunther (right); p18:
Lafarge (top); Martin Harvey (bottom); p19: Edward Parker; p20: Stéfane
Mauris (main image); Klein & Hubert (top); Hartmut Jungius (bottom)
Published in February 2007 by WWF–World Wide Fund For Nature(Formerly World Wildlife Fund), Gland, Switzerland. Any reproduction in
full or in part must mention the title and credit the above-mentioned
publisher as the copyright owner. © text 2006 WWF. All rights reserved.

WWF International

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network active in more than 100 countries.
WWF’s mission is to stop the degradation of the planet’s natural environment
and to build a future in which humans live in harmony with nature, by:- conserving the world’s biological diversity- ensuring that the use of renewable natural resources is sustainable- promoting the reduction of pollution and wasteful consumption.

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