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In November 2000 the Welsh Assembly Government produced its first Sustainable Development Scheme, Learning to Live Differently. One of the actions of the scheme was to establish an independent body to work alongside government to advance and steer sustainable development in Wales.
In December 2002, Cynnal Cymru, The Sustainable Development Forum for Wales, came into existence as an independent adviser and forum on sustainability.
The company owes its formation to the duty placed upon the National Assembly for Wales to promote sustainable development.
The duty, specified in section 121 of the Government of Wales Act 1998 (c.38), states that:
The Assembly shall make a scheme setting out how it proposes, in the exercise of its functions, to promote sustainable development.
The Assembly shall keep the scheme under review and in the year following each ordinary election (after the first) shall consider whether it should be remade or revised.
In June 2004, Cynnal Cymru held its first AGM. The first Board of Company Directors was democratically elected and the company's Memorandum and Articles were amended to offer membership to anyone in Welsh society with an interest in sustainable development. Each year a new Board of Directors is elected by the membership at the AGM.