ANNUAL REPORT 2014APRIL 2013–MARCH 2014

2

Vision for a sustainable world

3

Message from the Chairman 04

About the Worldwatch Institute 06

2013-2014 Impact Highlights 08

Financial Statement 14

Board and Staff 16

Donors and Institutional Support 18

Communications and Outreach 20

Make a Difference 21

TABLE OF

CONTENTS

4

Ed GroarkChairman

5

MESSAGE

FROM THE CHAIRMANWhen you support the Worldwatch Institute, you directly and effec-tively address the environmental, economic, and social challenges that the world is facing as modern society consumes resources be-yond the capacity of our small planet.

ergy. Choosing free, local sunshine and

wind over expensive petroleum imports

makes huge economic sense for these

countries—and could make them models

of the low-carbon transi-

tion that the whole world

must make.

Worldwatch has excelled at de-

veloping a global vision of sustainability

for four decades. We are now beginning

an era of close collaboration with the

growing numbers of city, corporate, and

agricultural sustainability leaders with

the purpose of accelerating their impact

through our research and analysis.

Worldwatch works to speed the transition

to a world where our grandchildren’s soci-

ety will live in balance with the capacity of

the natural world.

Thank you for making our work possible

as we move into our fifth decade.

Ed Groark

Chairman

The challenges themselves are daunt-

ing. But to work on them creatively is a

source of satisfaction that we hope you

will share with us.

The accomplishments that we report

here—accomplishments you helped us

achieve—remind us anew why World-

watch and its work are critically needed.

Our 2013 edition of State of the World,

provocatively subtitled “Is Sustainability

Still Possible?”, continues to accrue praise

for its courageous look at critical issues.

Sustainability is still possible—but as time

passes, the opportunity narrows. With a

sense of growing urgency, we are working

to help bring about a sustainable future.

This year, we continued to work closely

with Caribbean and Central American

governments to find ways to quickly shift

to economy-enhancing renewable en-

“Sustainability is still possible.”

6

Founded in 1974 by farmer and economist Lester Brown, Worldwatch was the first independent research institute devoted to the analysis of global environmental concerns. Worldwatch quickly became recognized by opinion leaders around the world for its accessible, fact-based analysis of critical global issues.

Forty years later, Worldwatch continues to develop innovative solutions to intract-

able problems, emphasizing a blend of government leadership, private sector

enterprise, and citizen action that can make a sustainable future a reality. The

following pages feature a sample of the critical work that we conducted in the 2013–

2014 fiscal year.

ABOUT THE

WORLDWATCH INSTITUTE

Global reach. Robert Engelman, then the president of the Worldwatch Institute,

launches State of the World 2013 in Denmark.

We will pursue solid growth while minimizing risks.

7

WORLDWATCH

AT A GLANCEChallengeHuman needs are growing. Re-

sources are running out. A healthy

society, environment, and econo-

my require urgent action and in-

novative solutions.

MissionThrough research and outreach

that inspire action, the Worldwatch

Institute works to accelerate the

transition to a sustainable world

that meets human needs.

VisionWe envision a planet where

human society and the natural

world have regained a mutually

enhancing balance.

40years since

Worldwatch was founded

291books & reports

published to date

3ranking among

environmental think tanks worldwide

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8

2013–2014

HIGHLIGHTSRenewables 2013 Global Status Report

Since 2005, we have collaborated with the Renewable Energy Policy Net-

work for the 21st Century (REN21) to compile the annual Renewables Glob-

al Status Report. The report, which provides an integrated perspective on

trends in global technologies, markets, and policies, is widely recognized

as the authoritative assessment of renewable energy worldwide.

Institute fellows and research staff worked with more than 500 research-

ers, contributors, and reviewers, drawing on wide-ranging information and

expertise to ensure transparency and peer-review accuracy.

“REN21’s 2013 Global Status Report demonstrates how policies can drive the

successful integration of large shares of renewables in the energy mix while

simultaneously benefitting the economy and the environment.”

Arthouros Zervos Chairman, REN21

Global collaboration. (L-R) Jamaica’s Ministry of Science, Technology, Energy and

Mining meets with Worldwatch’s Caribbean Manager, Mark Konold, and Climate and

Energy Director, Alexander Ochs.

9

IMPACT FEATUREState of the World 2013: Is Sustainability Still Possible?

Sustainability gets plenty of lip service, but the relentless worsening of

key environmental trends reveals much of that attention to be “sustaina-

babble.” From climate instability and species extinctions to approaching

scarcities of fresh water, minerals, and energy, worrisome limits to human

economic activity look more pressing each year, all while our political insti-

tutions seem impotent to address the change.

In State of the World 2013, scientists, policy experts, and thought leaders

attempt to restore meaning to sustainability as more than just a marketing

tool. The book cuts through the rhetoric surrounding sustainability, offer-

ing a broad and realistic look at how close we are to fulfilling it today and

which practices and policies will steer us in the right direction. This publi-

cation is especially useful for policymakers, environmental nonprofits, and

students of environmental studies, sustainability, or economics.

“State of the World 2013 assembles the wisdom and clarity of some of the Earth’s finest thinkers, visionaries, and activ-

ists into a dazzling array of topics that merge to offer a compellingly lucid and accessible vision of where we are—and

what is the wisest and healthiest course for the future.”

Nina Simons Co-founder, Bioneers

“Every elected official in the world needs to read this book. Mass denial is no longer an option... This book is the blue-

print for that safe path forward.”

Betsy Taylor President, Breakthrough Strategies & Solutions and Founder, Center for a New American Dream

60+international

media mentions

12number of

published languages

122 Kcopies bought or

downloaded worldwide

Our publications are available on our website, www.worldwatch.org.

10

IMPACT FEATUREJamaica Sustainable Energy Roadmap

Jamaica currently depends on petroleum imports for over 95% of its elec-

tricity generation. This reliance on fossil fuels leads to enormous electricity

prices that restrict economic development and result in business failure.

Emissions from fossil fuels also lead to high healthcare costs and contrib-

ute to global climate change.

In the Jamaica Sustainable Energy Roadmap, Worldwatch analyzed the real

costs—social, economic, and environmental—that the country is paying

for its reliance on fossil fuel imports. We outlined a system built on ef-

ficiency, domestic renewable resources, smart distribution, and the con-

crete political and financial reforms necessary to get there. Since its launch

in Kingston, Jamaica, the Roadmap has laid the groundwork for climate-

compatible development, economic growth, reductions of health costs,

and preservation of the island’s unique environmental heritage.

Transitioning Jamaica to an energy system powered almost entirely by re-

newables could result in an estimated:

“This Roadmap is very important for us… We intend to use it to determine the next phase of new generation capacity

and it will enable us to be far more efficient than we have in the past.”

The Honorable Phillip Paulwell Minister of Science, Technology, Energy and Mining, Jamaica

“Worldwatch’s Sustainable Energy Roadmap for Jamaica is a resource with both practical and achievable recommen-

dations that can have the transformative impact the country’s electricity sector badly needs… The report also highlights

the critical steps that other stakeholders and sectors have in bringing about the type of sustainable energy future that

is well within the country’s grasp.”

Mark Lambrides Senior Energy Specialist, World Bank

4,000additional

jobs by 2030

12.5billion U.S. dollars

saved by 2030

45million tons of CO

2-

equivalent saved by 2030

$

Our publications are available on our website, www.worldwatch.org.

11

2013-2014 project highlights

Hunan Province Biomass Development Roadmap

Renewable energy technologies in China have developed rapidly but are

still encountering many implementation challenges locally.

Working closely with in-country policymakers, scholars, experts, and in-

dustries, Worldwatch is analyzing everything from resource distribution to

social impacts in order to generate the most effective development sce-

narios. Using village-level data, we are generating a province-wide planning

scheme to maximize straw power generation efficiency in Hunan. In 2014,

our rice straw biomass energy roadmap has been officially endorsed by

Hunan Provincial Energy Administration.

“We felt that this proposal fits perfectly with our province’s future energy de-

velopment needs. This project…would be an insightful guidance to the effec-

tive and efficient utilization of our province’s biomass resources.”

Hunan Province Development and Reform Commission’s Energy Team

The Way Forward for Renewable Energy in Central America

As the economies of Central American countries grow, regional use of

fossil fuels is rising. Fuel wood is consumed at unsustainable rates. The

result is rising greenhouse gas emissions, worsening pollution, and major

health costs.

This region has the potential to meet all of its electricity needs with sus-

tainable renewable energy, but the proper policies and measures need

to be established now. Worldwatch’s comprehensive report provides the

groundwork for that transition by presenting on-the-ground research and

information to advance renewable energy. It evaluates key barriers, mak-

ing suggestions on how to overcome them.

“The report has been very useful. In fact, we are drawing from it and quoting

it in the new Nicaragua energy plan that the government is drafting.”

Lâl Maradin Consultant, Nicaragua, Sustainable Energy for AllL-R: Alexander Ochs (Worldwatch Institute), Ambassador Muni Figueres Boggs (Embassy of Costa Rica), and Mark Lambrides (Organization of American States)

12

2013-2014 project highlights

Nourishing the Planet Blog

Nearly a half-century after the Green Revolution—the first systematic,

large-scale attempt to reduce poverty and hunger throughout the world—

a large share of the human family is still chronically hungry.

Offering thoughtful analyses and creative insights, the Nourishing the

Planet blog informs global efforts to eradicate hunger by providing the

latest information on the people, institutions, and ideas affecting the global

food system. The blog features several popular recurring series, such as

Innovation of the Week, NTP TV, and Indigenous Vegetable of the Week.

“Nourishing the Planet has an overall fresh new look and feel to their site and

they run several informative food and agriculture blogs. My favorite is the In-

novation of the Week, a page dedicated to bringing many of the simplest, yet

most promising new agricultural techniques and programs to light.”

Beth Hoffman Forbes

Religion and Sustainable Development

New technologies alone cannot lead to sustainability. Values, often shaped

by faith traditions, are also central to building just and healthy societies.

With the election of a Pope named after St. Francis of Assisi, the patron

saint of the environment, sustainability became a more urgent issue for

the Catholic Church. Senior Fellow Gary Gardner met in Rome with Catholic

leaders, provided input to a Vatican paper on food and land issues, and

was invited to speak on “The Family and the Environment” at a special Vati-

can gathering. Growing engagement of the Church on sustainability issues

is seen as a natural extension of its longstanding interest in justice issues.

“The meeting has made it possible to look at the family from a special point of

view, giving it a special role in the rethinking of development, in avoiding human

ecological disasters and in creating a vision of progress for future generations.”

Cardinal Lorenzo Baldisseri General Secretary of the Synod of BishopsPope Francis at the 2014 Sustainable Human-ity, Sustainable Nature Workshop (Photo: The Pontifical Academy of Sciences)

13

Vital Signs: The Trends That Are Shaping Our Future

From smart grids to fish farming, this year’s Vital Signs documents and

analyzes 28 key global trends. Using clear graphs, the book demonstrates

that despite good news in many sectors, our economic systems are pro-

grammed to squeeze more resources from a planet in distress. The trends

provide context for world events, spur global media discussion, and pro-

vide context for strategic planning among business leaders, policymakers,

academics, and engaged citizens.

Vital Signs trends are available online, through our electronic subscription-

based website (http://vitalsigns.worldwatch.org). The trends from 2013 to

2014 are also available in print in Vital Signs, Volume 20.

“These lines that tie the world together are surreptitiously hidden just beyond our

field of view, but Vital Signs does an amazing job of bringing everything into focus.”

Jeremy Senko Spacing

Our publications are available on our website, www.worldwatch.org.

Coal production: Global coal pro-

duction increased by 6,941 million

tons in 2011, making it the fastest-

growing fossil fuel.

Women farmers: Women farm-

ers account for 43 percent of the

agricultural workforce, but they

own just 2 percent of farmland.

Automobile production: Pas-

senger-car production rose to an

all-time record of 66.1 million (up

from 62.6 million in 2011).

Meat production: Global meat

production surpassed 300 million

tons for the first time in 2012.

Wage growth: Wage growth has

slowed from an average of 3 per-

cent in 2007 to 2.1 percent in 2010

to 1.2 percent in 2011.

Natural disasters: During 2011,

natural catastrophes caused an

estimated 27,000 deaths and cost

a record US$380 billion in losses.

KEY FINDINGS

14

2013–2014

FINANCIAL STATEMENTThe Institute worked to maintain a solid fiscal position

within the constraints of a tight funding environment

for most non-profit organizations. Expenses exceeded

revenues in 2013, leading to a reduction in net assets.

We responded to this challenge by cutting expenses

across the organization and through heightened ef-

forts to raise funds from a variety of sources. New in-

ternal operations designed to increase participation in

our individual giving program and to promote publica-

tion sales gained traction in 2013 and are expected

to contribute more to our bottom line in years ahead.

RevenueOur revenue was $1.8 million, 93.5 percent of which

came from individual contributions, foundation grants,

governments, and institutions for the 2013 fiscal year.

Six percent of our income comes from the sale or roy-

alties collected from our books and reports.

ExpensesOur research and outreach programs represented

76 percent of our total expenses in fiscal year 2013.

Management, general expenses, and fundraising ex-

penses represented only 24 percent of our spending.

Revenue

Expenses

15

Revenues and Additions to Net Assets

Total Contributions and Grants 1,705,987

Unrestricted 937,741

Restricted 768,246

Total Publications, Subscriptions, and Royalties 112,775

Investment and Other Income 5,410

Total Revenues and Additions 1,824,172

Condensed Statement of Activities for the Year Ended March 31, 2014. All values shown in U.S. dollars.

Expenses and Reductions to Net Assets

Program Services 1,517,602

Total Support Services 488,185

Management and General 252,640

Fundraising 235,545

Total Expenses and Reductions 2,005,787

Net Increase in Net Assets (181,615)

The condensed financial information as of and for the year ended March 31, 2014 has been derived from the

Worldwatch Institute’s financial statements, audited by Lane & Company, CPAs, independent auditors. The con-

densed financial information should be read in conjunction with the 2014 audited financial statements and re-

lated notes. Worldwatch Institute’s complete audited financial statements may be obtained by writing to the

Treasurer, Worldwatch Institute, 1400 16th Street, NW, Suite 430, Washington, DC 20036.

16

BOARD OF

DIRECTORSEd Groark Chairman and Acting Interim PresidentPrincipal, Riverbend ConsultingMcLean, Virginia, USA

Robert Charles Friese Vice ChairFounding Partner, Shartsis Friese LLPSan Francisco, California, USA

Nancy Hitz SecretaryVice President, Hitz FoundationLos Altos Hills, California, USA

John Robbins TreasurerAccenture, COO, Resources Global Market unit (Retired)Owner, Greathorn Properties, Inc. Concord, North Carolina, USA

L. Russell Bennett, Esq. Chairman, Wings for KidsCharleston, South Carolina, USA

Mike BiddleFounder, President, MBA PolymersWalnut Creek, California, USA

Cathy CrainVice President/Senior Portfolio Manager (Retired), Scudder, Stevens & ClarkCincinnati, Ohio, USA

Tom CrainManaging Director, Scudder, Stevens & Clark (Retired)Cincinnati, Ohio, USA

James DehlsenChairman, CEO, Clipper Windpower, Inc.Goleta, California, USA

Edith EddyExecutive Director, Compton Foundation (Retired)Palo Alto, California, USA

Christopher Flavin Senior Fellow, President Emeritus, Worldwatch InstituteBethesda, Maryland, USA

Ping HePresident, International Fund for China’s EnvironmentCenterville, Virginia, USA

Jerre HitzChief Engineer, TRW Systems Division (Retired)Los Altos Hills, California, USA

Izaak van MelleFormer President, Van Melle OrganizationSchoten, Belgium

Bo NormanderDirector, Worldwatch Institute EuropeCopenhagen, Denmark

David OrrPaul Sears Distinguished Professor of Environmental Studies and Politics, Special Assistant to the President, Oberlin CollegeOberlin, Ohio, USA

Richard Swanson President Emeritus, SunPower CorporationSan Jose, California, USA

Emeritus:

Øystein Dahle Chairman, Worldwatch NordenSlependen, Norway

Abderrahman KheneFormer Chairman, OPECEl-Biar, Alger Algeria

17

StaffSTAFFEd Groark Chairman and Acting Interim President

Courtney Dotson Development Associate

Barbara Fallin Director of Finance & Administration

Supriya Kumar Marketing & Communications Manager

Lisa Mastny Senior Editor

Grant Potter Development Associate & Executive Assistant

Tom Prugh State of the World 2013 & 2014 Co-Director

Mary C. Redfern Director of Institutional Relations

Climate and EnergyAsad Ahmed Research Fellow

Katie Auth Research Associate

Adam Dolezal Research Associate

Christopher Flavin Senior Fellow, President Emeritus

Milena Gonzalez Stanford MAP Fellow

Mark Konold Research Associate, Caribbean Manager

Max Lander Research Assistant

Matt Lucky Research Associate

Haibing Ma Research Associate, China Manager

Shakuntala Makhijani Research Associate

Evan Musolino Research Associate

Alexander Ochs Director

Ramon Palencia Research Fellow

Reese Rogers Stanford MAP Fellow

Janet Sawin Senior Fellow

Philipp Tagwerker Research Fellow

Christoph von Friedeburg Research Fellow

Environment and SocietyErik Assadourian Senior Fellow, State of the World

2013 Co-Director

Robert Engelman Senior Fellow, President Emeritus

Gary Gardner Senior Fellow

Michael Renner Senior Researcher, State of the World

2014 Co-Director

Food and AgricultureMia MacDonald Senior Fellow

Sandra Postel Senior Fellow

Sophie Wenzlau Senior Fellow

Laura Reynolds Research Associate

18

President’s Circle ($5,000 and above)

Anonymous (1)

Russell Bennett

Robert and Chandra Friese

Robert Gillespie

Jerre and Nancy Hitz

John McBride

Scott Nash

Randles Family Living Trust

Estate of Aldean G. Rhyner

John B. and Holly C. Robbins

F. Peter Seidel

Dr. Richard Swanson

Izaak Van Melle

Leadership Circle($1,000-$4,999)

Anonymous (5)

Geeta and Kamesh B. Aiyer

Myron and Caroline Arms

Craig Aufenkamp and Maria Moesch

Peter Beckman

John R. Bermingham

David Blittersdorf

Dr. Edith Borie

G. Allen Brooks

Margaret Calantzopouos

Dr. Dwight E. Collins

Jeb and Edith Eddy

Stanley and Anita J. Eisenberg

Bruce and Elizabeth Hodge

Sudhanshu and Lori Jain

Charles Keil

Giuseppe La Manna

Marta Jo Lawrence 

Wayne Martinson and Deb Sawyer

Leigh Merinoff

David and Mary Ellen Moir

Paul and Antje Newhagen

Rebecca Newman

Mr. and Mrs. George D. O’Neill

Dr. David Orr

Dr. Bob Pettapiece

William L. Rand

William and Eleanor Revelle

Mr. & Mrs. John D. Sillers

Curt M. Snyder, M.D.

John Taylor

William Laney Thornton

Rosemary Wakeham

Kendra Wenzel

Lawrence and Ann Wheat

Kristin Witting

THANK YOU

FRIENDS OF WORLDWATCHWe thank all individuals who made a significant gift toward supporting our programs and operations.

Additional donors who

requested anonymity also

supported our work at the

levels indicated and are not

included in this listing.

April 1, 2013 to March 31, 2014

If you see an error in the listing of your name or have questions about being publicly recognized as a Friend of

Worldwatch, please contact our Development Department at +1 (202) 745-8092, ext. 512.

19

Asian Development Bank (ADB)

The Carbon War Room Corporation

Caribbean Community (CARICOM)

Charles and Mary Bowers Living Trust

Climate and Development Knowledge Network (CDKN)

Cultural Vision Fund of the Orange County Community Foundation   

Del Mar Global Trust

Doughty Hanson Charitable Foundation    

Eaton Kenyon Fund of the Sacramento Region Community Foundation  

Embassy of the Federal Republic of Germany to the United States 

Energy and Environment Partnership with Central America (EEP)

Flora L. Thornton Foundation

Garfield Foundation, Brian and Bina Garfield, Trustees

German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) and the International Climate Initiative

Hitz Foundation

Inter-American Development Bank (IDB)

The Johanette Wallerstein Institute

The Lewis Foundation

MAP Royalty, Inc., Natural Gas and Wind Energy Royalty Partnerships

MOM’s Organic Market  

National Renewable Energy Laboratory (NREL), U.S. Department of Energy

Network for Good    

Ray C. Anderson Foundation, Inc.

Renewable Energy Policy Network for the 21st Century (REN21)

Serendipity Foundation, Inc.

Shenandoah Foundation

Steven Leuthold Family Foundation

Town Creek Foundation

True Liberty Bags

Turner Foundation, Inc.

United Nations Foundation

United Nations Population Fund (UNFPA)    

United Way of Central New Mexico    

V. Kann Rasmussen Foundation

Wallace Global Fund

Weeden Foundation

The William and Flora Hewlett Foundation with Population Reference Bureau

INSTITUTIONAL SUPPORTWe thank all foundations, institutions, and governments for their support. Without their strong backing, our work would not be possible.

20

COMMUNICATIONS &

OUTREACH

Brazil

24.4 K

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MexicoTurkeyItaly

Hungary

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International Publishing Partners

In 2013-2014, the global media turned frequently to Worldwatch for unbiased information and commentary on environmental and social issues.

Our research has been featured by global

news leaders like UK’s BBC and The Guard-

ian, Germany’s Der Spiegel, and The Times of

India. Worldwatch staff have appeared on

Al Jazeera, Fox news, Voice of America, and

other media outlets. We received over 100

interview requests this year.

SpainUnited States

Finland

China

Taiwan

21

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VISION FOR A SUSTAINABLE WORLDThe Worldwatch Institute works to accelerate the transition to a sustainable world

by analyzing issues and disseminating solutions to leaders and influencers globally