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Sustainable Stewardship INTEGRATED ANNUAL REPORT 2020 Commemorative Trees 2019 INTEGRATED ANNUAL To mark 50 years of The Duke of Cornwall as Chairman REPORT 2020 of The Prince’s Council, a total of 148 trees were planted at each principal mainland Duchy farm and office, with For the year ended 31st March 2020 special benches installed on the Isles of Scilly. Presented to Parliament pursuant to Section 2 of the Duchies of Lancaster and Cornwall (Accounts) Act 1838 3 © DUCHY OF CORNWALL 2020 ANY QUERIES SHOULD BE SENT TO: [email protected] Welcome This Integrated Annual Report summarises activity on the Duchy of Cornwall estate for the year ended 31st March 2020. It aims to describe how decisions made in the course of meeting our commercial responsibilities affect local communities, the economy and the natural environment. CONTENTS SUSTAINABLE STEWARDSHIP Strategic report The Duchy is a private estate that 4 Introduction 5 Value creation highlights provides an income to The Duke 6 Highlights of the year of Cornwall (The Prince of Wales). 8 Our diverse portfolio It is managed in harmony with 10 From the Keeper of the Records The Prince’s ethos so it can be 12 Understanding what matters most 14 Factors influencing value creation and principal risks passed on with pride to the next 20 How we create and share value: our business model generation. 22 Performance against strategic objectives Governance HISTORY AND 34 Direction, oversight and transparency CONSTITUTION 36 Governance roles and activities 38 Governance in action The Duchy of Cornwall was created 40 The Prince’s Council and Committees in 1337 by Edward III to provide an 43 Other disclosures income for his son, Prince Edward. 43 Proper Officers’ report Accounts The estate is governed by the 44 Independent auditor’s report to The Duke of Cornwall original Charters and Duchy of 46 Group Revenue Account Statement of Comprehensive Cornwall Management Acts. Income 47 Group Capital Account Statement of Comprehensive Income The Duke of Cornwall has no 48 Group balance sheet access to the Duchy’s capital value 49 Duchy of Cornwall balance sheet and pays income tax on the annual 50 Group statement of changes in capital and reserves revenue surplus that he receives 51 Duchy of Cornwall statement of changes in capital and reserves from the Duchy. 52 Group statement of cash flows 53 Duchy of Cornwall statement of cash flows 54 Notes to the financial statements 85 Treasury consents and Appendix 90 Surface Area Report 31st March 2020 Duchy Nursery DUCHY OF CORNWALL Integrated Annual Report 2020 DUCHY OF CORNWALL Integrated Annual Report 2020 4 STRATEGIC REPORT 5 Introduction Value creation highlights REPORT STRATEGIC Our purpose and values enable us to be focused on balancing positive financial, We aim to create long-term value for all our stakeholders. social and environmental impacts. Here are some of the key highlights. OUR PURPOSE OUR VALUES DISTRIBUTABLE SURPLUS NET ASSETS The Duchy is a private estate Our purpose GOVERNANCE that provides an income to is supported £22.3m £909m The Duke of Cornwall. It is by our values in 2019/20, up 2.9% Investment property valuation, down £20m. -2.2% capital return managed in harmony with and the loyalty, 22 Key performance indicators 48 Group balance sheet The Prince’s ethos so it can passion and be passed on with pride to commitment ENVIRONMENTAL IMPACT RENEWABLE ENERGY ACCOUNTS the next generation. of our people. INSTALLED CAPACITY OUR ACTIVITIES OUR PERFORMANCE 56% 3.0MW Through our activities we aim to generate positive We measure our performance through reduction in direct greenhouse gas (GHG) of installed capacity (up from 2.9MW last year) impacts and value over the long term, balancing key performance indicators. emissions compared to baseline in solar PV, biomass boilers, heat pumps and a environmental, social and economic needs. (60% reduction last year) hydro-electric scheme, at a cost of £4.0m 22 Key performance indicators 20 Our business model 22 Key performance indicators 22 Key performance indicators OUR STRATEGIC OBJECTIVES We are guided in all that we do by our strategic objectives: QUALITY OF CUSTOMER SERVICE NEW FARM TENANCIES PROVIDE INCOME GENERATE CAPITAL AND ENGAGE WITH AND REBALANCE CAPITAL A C T I V E L Y S U P P O R T ASSETS COMMUNITIES CHERISH, PROTECT I M P R O V E DEVELOP AN INCLUSIVE, AND ENHANCE LAND AND ENVIRONMENTAL ENGAGED AND HEALTHY 80% 21yrs PROPERTY OUTCOMES TEAM of tenants satisfied or very satisfied with customer Average length of Farm Business Tenancies service, down marginally from 81% last year 22 Strategic objectives 22 Key performance indicators 22 Key performance indicators Dartmoor DUCHY OF CORNWALL Integrated Annual Report 2020 DUCHY OF CORNWALL Integrated Annual Report 2020 6 STRATEGIC REPORT 7 September November STRATEGIC REPORT STRATEGIC Highlights of the year Long-serving Duchy staff Through our business model and under the leadership of member David Curtis retired as Land Steward after 41 years The Duke of Cornwall, we approach our activities with commercial with the organisation. realism and social and environmental responsibility. 2019 The creation of two wildflower meadows December on the Hereford Estate was completed in April The Prince of Wales’s Charitable Foundation partnership with the Herefordshire Meadows GOVERNANCE Kevin and Justyna Hughes, committed to a grant of £204,000 to support Group and Plantlife. of Hill Barn Farm in the work of the Wildfowl and Wetlands Trust, Herefordshire, are selected with input from the Duchy and Dartmoor National Park’s Ecologist, for a head-starting as finalists in the cattle On 9th September, project to re-establish the curlew population farmer category at the Three Skol Nansledan opened on Dartmoor. Counties Farmer of the its doors to its first 120 Year Awards. students, with two reception classes, Year 1, Nansledan hosts its first Easter Fayre, organised Year 2 and a mixed by the Nansledan Residents Association. ACCOUNTS July Key Stage 2 class. 2020 May Poundbury’s first Open for Art Exhibition runs at locations Renewable carbon dioxide company, October January throughout the community, BioCarbonics, set up with Duchy support Tenant Nick Finding moves into including at the Duchy of Cornwall through its renewable energy subsidiary replacement farm buildings at farmhouse, where a watercolour J V Energen, starts deliveries, including to Fordington and Clandon Farms, by The Duke of Cornwall a cider manufacturer in Herefordshire and Dorset, providing light and airy was displayed. a foundry in Oxfordshire. By March 2020, space for his livestock. monthly deliveries of CO2 from renewable sources had reached over 450 tonnes. June During Their Royal ITV broadcast Prince Charles: Inside the Duchy Highnesses’ annual summer of Cornwall, a two-part documentary featuring February visit to the South West, interviews with The Prince of Wales as well New member of The Prince’s The Duke and Duchess of as Duchy staff and tenants from across the Council, Edward Harley, joins Cornwall hosted a reception estate. The programme had over four million The Duke of Cornwall and at the Duchy of Cornwall viewers per episode and was later broadcast Duchy staff in meeting tenants Nursery for staff and tenants internationally. in Herefordshire during the to celebrate 50 years of His terrible floods. HRH The Duke of Cambridge visits Duchy Royal Highness as Chairman estates in Somerset and meets the Keeling family of The Prince’s Council. at Wilmington Farm near Bath, makers of award- winning Bath Harvest™ cold pressed rapeseed oils. DUCHY OF CORNWALL Integrated Annual Report 2020 DUCHY OF CORNWALL Integrated Annual Report 2020 8 STRATEGIC REPORT 9 TOUR OF THE DUCHY ESTATE Our diverse portfolio REPORT STRATEGIC The Duchy of Cornwall estate extends across 23 counties in England and Wales. The map highlights a number of examples from its varied portfolio. 1 2 3 4 ISLES OF SCILLY NEWQUAY DUCHY OF CORNWALL DUCHY OF CORNWALL The Isles of Scilly have been The Duchy’s major development HOLIDAY COTTAGES NURSERY 52,789 part of the Duchy of Cornwall project in Cornwall, Nansledan. We have a small number The nursery at Lostwithiel opened th HECTARES OF LAND since the 14 century. of period properties available its doors to the public in 1975 and as holiday cottages. includes a renowned café. GOVERNANCE 2,360 HECTARES OF WOODLAND 5 6 7 8 A N C I E N T DARTMOOR AND COASTAL AND LLWYNYWERMOD MONUMENTS PRINCETOWN INLAND WATERS The Welsh home of Their Royal Trematon Castle is one of Most of the Duchy’s 27,200 Including the Dart, Salcombe and Highnesses The Prince of Wales 17 major Duchy ancient hectares on Dartmoor has been Kingsbridge, Avon, Tamar, Looe, and Duchess of Cornwall. £42m monuments. Others include part of the estate since the Helford and Camel estuaries and ACCOUNTS th DEVELOPMENT LAND Restormel, Launceston and 14 century. coastal foreshore around Cornwall Tintagel Castles. and the Isles of Scilly. £295m COMMERCIAL PROPERTY 9 10 11 12 P O U N D B U R Y EASTERN DISTRICT HEREFORD ESTATES 12 13 HIGHGROVE HOUSE 8 An urban extension to ESTATES AND HOME FARM Incorporating the Guy’s estate, Dorchester, Poundbury is built The Eastern District includes Highgrove is the family home purchased in 2000, and the on principles of architecture and land in Gloucestershire, of Their Royal Highnesses. Cradley estate. 15 urban planning advocated by Somerset, Wiltshire and Dorset. The nearby 425-hectare 11 14 The Prince of Wales. Home Farm is entirely organic. 16 10 9 6 3 13 14 15 16 5 7 2 4 C O M M E R C I A L HEAD OFFICE LONDON KENT ESTATES PORTFOLIO The Duchy’s head office Mainly Kennington Estate assets, Purchased in 2000 and now 1 “ The fascinating thing about the Duchy is its huge Standard investment properties, is at 10 Buckingham Gate, including 16 flats and 23 houses, including over 350 hectares the majority located in London.
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