NatureScot Board meeting - 01 December 2021

• Unconfirmed Minutes and Action Points*
• What will Scotland’s climate be like in the next decade? – discussion, no forward paper  
• Strategic Development – Final Draft Corporate Plan 2022/2026*
• Q2 Performance Reports 2021/22
• Chief Executive’s Report – oral report

* indicates paper is Official-Sensitive.

MEMBERS PRESENT

Mike Cantlay                           Chair
Kate Broughton                       Member
Ian Gambles                           Member
Peter Higgins                          Member
Jackie Hyland                         Member
David Johnstone                     Member
Colin McPhail                          Member
Aoife Martin                            Member
Wayne Powell                         Member
Heather Reid                          Member
Nikki Yoxall                             Member

IN ATTENDANCE

Francesca Osowska               Chief Executive
Nick Halfhide                          Director of Nature and Climate Change
Robbie Kernahan                   Director of Sustainable Growth
Jane Macdonald                     Director of Business Services & Transformation
Eileen Stuart                           Deputy Director of Nature and Climate Change
Stuart MacQuarrie                  Deputy Director of Business Services & Transformation
Claudia Rowse                        Deputy Director of Sustainable Growth
Jason Ormiston                       Head of External Affairs
Graham Boyle                         Chief of Staff
Sara Lewis                              Governance Support Manager (minutes)
Lorna Slater MSP                    Minister - Green Skills, Circular Economy & Biodiversity (item 7)
Cate Turton                             Deputy Director Natural Resources, Scottish Government (item 7)
Iain Martin                               Sponsorship Manager, Scottish Government (item 7)
David Reay                             Edinburgh Climate Change Institute (item 5)
Clive Mitchell                          Outcome Manager – People and Nature (item 5)
Megan Rowland                     Deer Management Officer (Young Employee Panel)

APOLOGIES

Cath Denholm                         Deputy Chair

AGENDA ITEM 1:  OPENING REMARKS AND APOLOGIES

1. The Chair opened the meeting by welcoming everyone to the one hundred and ninety-fifth meeting of the Board of NatureScot. Particular welcome was given to Megan Rowland from the Young Employee Panel.

2.   Apologies were noted from Cath Denholm, Deputy Chair, who was representing NatureScot at a board meeting of the JNCC.

3.   The Chair informed that Kate Broughton, Cath Denholm and Jackie Hyland will not be requesting extensions to their term of office which ends on 31 March 2022. He advised that work has commenced to recruit new Board members.

4.   Chair also commented on item 7 of the agenda when the Minister for Green Skills, Circular Economy and Biodiversity would join the meeting; the Scottish Government’s mid-year budget announcement; and his attendance during COP26 for the First Minister’s announcement of the Nature Recovery Fund, in Easterhouse, Glasgow.

AGENDA ITEM 2:  DECLARATIONS OF INTEREST

5.   There were no formal declarations of interest, however Wayne Powell queried whether his spouse’s change of role needed to be declared. Wayne agreed to follow this up with the Chief of Staff after the meeting.

AGENDA ITEM 3:  MINUTES AND ACTION POINTS FROM 25 AUGUST 2021

6.   Board members were content to approve the minutes of the Board of NatureScot Meeting on the 06 October 2021. They were proposed by Kate Broughton, and seconded by David Johnstone.

Action Points

7.  The actions points were noted:

Action Point (AP13/181) (Future Options for Kinloch Castle) Board members acknowledged that this action remains ongoing.

Action Point (AP02/188) (Update to Board Members on Development of Green Finance) Board members acknowledged that this action remains ongoing.

Action Point (AP03/192) (Plan for Board Engagement with Staff). Members acknowledged that this action point remains ongoing.

AGENDA ITEM 4:  MATTERS ARISING

8.   There were no matters arising.

AGENDA ITEM 5: WHAT WILL SCOTLAND’S CLIMATE BE LIKE IN THE NEXT DECADE? WHAT ARE THE CHOICE WE NEED TO MAKE NOW TO PREPARE FOR THAT?

9.   Nick Halfhide introduced Professor Dave Reay of the Edinburgh Climate Change Institute to lead a discussion on COP26, the implications for NatureScot, and a look forward to the levels of mitigation and choices to be taken for the Scotland’s climate over the coming decades.

10.   Professor Reay reflected on COP26, commenting that Scotland was already making good progress towards implementing the actions agreed. However due to some attendant countries not supplying scientific data to show progress, the world has some way to go.

11. During his presentation, Professor Reay gave the following information:

• Targets have been set to attempt to slow the rate of global warming. While reaching a target of just 1.5 degrees warmer is technically possible, it is more likely that 1.8 degrees will be achieved by 2030.
• Multi-lateral announcements on the reduction of deforestation, particularly concerning Brazil were encouraging.
• The US led a coalition on committing to the reduction of methane in the atmosphere, however the world’s bigger polluters were not part of this.
• The Glasgow Pact saw a commitment to reducing the amount of coal and fossil fuel use, the doubling of adaptation finance, and the removal of inefficient subsidies.
• Recognition of loss and damage to the environment likely due to climate change despite the use of adaptation methods. Finance is needed to address this and further negotiation will take place at COP27 next year.
• At COP27, all nations will be asked to update their nationally determined contribution to global warming.
• £100m of finance previously committed to the climate emergency has not yet been delivered, this will be discussed at COP27.

12. On the impacts of COP26 for NatureScot, Professor Reay gave the following key points:

• The complexities of the carbon accounting mechanisms mean that some organisations may end up double accounting. It was considered that NatureScot would need to work alongside the government on this issue.
• NatureScot’s role could be seen as leading local and community action on the twin crises, with the emphasis on enabling Scotland’s just transition.
• Robust reporting and scenario planning would be needed, to take into account the multiple variables present, and trade-offs in areas such as food production and biodiversity. Skills and capacity will need to be built in order to respond to this, in conjunction with the Climate Emergency Action Plan, and the Scottish education system.

13. On what Scotland’s climate will look like in 10 years, and NatureScot’s role in this, Professor Reay provided the following comments:

• Hotter summers, and warmer wetter winters are expected. This will test the country’s resistance to invasive species, disease, and the interaction of people with the outdoors through fire, flood and increased risk of harm.
• More acute impacts are expected internationally, including on food prices and availability, and an increased pressure on migration systems.
• It was expected that the demand for carbon sequestration and use of land will grow, in terms of tree planting, peatland restoration and changes to agricultural practices. The use of green space for human health is also expected to increase.
• The balance between mitigation and adaptation is important – in mitigation terms, the goal should remain as a climate temperature increase of 1.5 degrees, but in adaptation terms 3 degrees should be considered.

14. Board members discussed how this information would inform the next Corporate Plan, and the implications for NatureScot in the coming years. The following key points and queries were raised:

• Areas in which it would be possible to make mistakes in addressing climate change – it was considered that the most crucial element to consider is people, and the sustainability of the social system. Investment in just transitions and supporting livelihoods were seen as important in supporting good employment opportunities, education and health for the people of Scotland in 2030/45.
• How to achieve a universal, accurate carbon accounting mechanism, and who is responsible in leading this – NatureScot were seen as the key advisors to the Scottish Government (SG) on carbon accounting. It was recognised that a 2 tier market exists based on authorised credits, or those who ‘voluntarily’ account for carbon but do not claim funding against it. It was suggested that the UK government should be responsible for informing how the voluntary carbon credit system will work in practice, as well as how to enable landowners and farmers to take action .

Nikki Yoxall joins the meeting.

• How expanding the use of land for social areas such as national parks, biomass energy and carbon sinks fits with the need for additional land to meet anticipated food chain vulnerabilities. It was considered that the answer to this is to change the average diet to one which reduces the intake of red meat and dairy. It was acknowledged that this is difficult both politically and publicly. Progress could be made by reducing over consumption of food, and food waste, however a joint government approach is needed.
• How NatureScot should plan for future biodiversity – which will be different for meeting targets of 3 degrees warmer, and ultimately 1.5 degrees warmer. This range is likely to take a century to occur, so science will be used to examine at regular intervals what is needed to positively affect biodiversity in the interests of nature.
• How much can scientific evidence be analysed from a probability perspective – the method used for this is to use a probability density function from which an informed value judgement of risk is made.
• The research and innovation opportunities arising from COP26 – Scotland benefits from having a research base for land based innovation which can be used to understand how land use is changing. Negative impacts on land use must be pre-empted, and responded to. Scotland is well placed to advise other countries on how monitoring systems and robust data can encourage growth in green finance.

15. Members thanked Professor Reay for leading the discussion.

AGENDA ITEM 6: STRATEGIC DEVLOPMENT – FINAL DRAFT CORPORATE PLAN 2022/26, inc organisational development framework

16. This agenda item on strategic development, presented progress and first draft of NatureScot’s next strategic plan. It also provided an update on the refresh of the Organisational Development framework.

17. The Board were asked to consider the following recommendations:

• Confirm that the draft Corporate Plan is consistent with Board ambition to address the nature/climate crises;
• Review the resource pressures for Programme for Government and statutory requirements and the actions to deliver them
• Review the Resourcing table and confirm that the analysis of resource need is consistent with NatureScot’s ambition;
• Note the ongoing development of the framework to measure performance of the Corporate Plan;
• Note the OD framework attached and the activity necessary to energise the Corporate Plan.

18. The Chief Executive presented the paper to the Board, and based on her recent meetings with the Minister for Green Skills, Circular Economy and Biodiversity, the Director of Environment and Forestry (SG) and the Deputy Director Natural Resources (SG) gave the following feedback on the draft Corporate Plan:

• NatureScot’s emphasis to be on nature restoration to improve biodiversity. Biodiversity’s ‘recovery phase’ will last to 2030, with its restored health by 2045.
• A collaborative landscape scale approach is required, with the scale and pace appropriate to an emergency response.
• Ongoing work to the Scottish Biodiversity Strategy will further inform the final Corporate Plan.
• National Nature Reserves are seen as the key method of engagement with the public.
• Nature-based solutions should be a significant area of work for NatureScot, taking care not to major on peatland restoration.
• NatureScot should now prioritise areas of work that only they can do – and delegate other work to alternative organisations.

19. The following key points were made during discussion:

• The Chief Executive informed that the Minister for Green Skills, Circular Economy and Biodiversity was keen to understand better NatureScot engagement with urban communities.
• Core offer 3 in the Corporate Plan could be widened to include the value that people place on nature, in addition to the financial element already mentioned.
• The need to be clear on the areas of shifting priorities in each area of focus in the Corporate Plan.
• Consideration of NatureScot’s regulatory responsibilities, and what a ‘protect/conserve/value’ approach means for those.
• Some of the National Performance Framework indicators were questioned as being appropriate measures for NatureScot. These are set externally and will be reflected firstly in the Scottish Biodiversity Strategy, and later in the National Environment bill.
• How NatureScot can integrate with the anticipated centre of expertise for biodiversity. It was suggested that this could be an area for discussion during the joint meeting of Board and the Scientific Advisory Committee in February 2022.

20. The Board provided feedback on both the layout and language used in the draft Corporate Plan including clarifying the resourcing table; make clear what we will do and what will be done by others, which will be used to work towards the final version. They agreed that the Corporate Plan set out well a strategic direction but would look to a detailed annual plan on what NatureScot will deliver, both directly and indirectly, over the 4 years of the Corporate Plan.

21. Stuart MacQuarrie informed that the next steps were to discuss the next iteration of the draft Corporate Plan with the Minister before the end of the year. Measures of success will continue to be worked on, and the final draft Corporate Plan will be presented to the Board at their February 2022 meeting.

22. The Board confirmed that they had met the recommendations stated in the paper.

AGENDA ITEM 7 – MS SLATER MSP, MINISTER FOR GREEN SKILLS, CIRCULAR ECONOMY AND BIODIVERSITY

23. The Chair welcomed Ms Slater to the meeting, following which members introduced themselves and their background relevant to their Board member positions.

24. Ms Slater addressed the Board, making the following key points:

• The climate crisis was now main stream and we needed to acknowledge where we are and what needs to change
• NatureScot should document in their annual report how they are influencing the twin crises of climate change and biodiversity loss, include how many planning applications they have commented on, and the number which were objected to and why, and how their resources are being used efficiently.
• NatureScot’s role was to lead on biodiversity challenge, to focus on nature restoration and set out clearly how best to achieve positive results in addressing the climate change and biodiversity emergencies.
• NatureScot will be the facilitator and operational enabler working in partnership at landscape scale to join together the dots of designated areas allowing the Natural Environment bill to make a difference.

25. The Minister explained to members how the Cooperation Agreement between the Green Party and the Scottish National Party works, ensuring that a green view is integrated into all areas in the agreement. She also agreed that the gap between education and vocation must be reduced in order to attract people into jobs which will contribute to improving climate change and biodiversity loss.

26. In her closing comments, Ms Slater encouraged Board members to be bold in their ambitions for biodiversity and nature when developing the next Corporate Plan.

27. The Chair thanked Ms Slater on behalf of members for attending the meeting.

AGENDA ITEM 8 – Q2 PERFORMANCE REPORTS 2021/22

28. Stuart MacQuarrie introduced this agenda item, which presented progress towards the delivery of NatureScot’s corporate priorities as laid out in the business plan.

29. The Board were asked to:

30. Directors were invited to update members on any exceptional areas of performance in each of their Outcomes during the last quarter.

Outcomes 1 and 2

31. Nick Halfhide provided the following highlights:

• Successful work had been seen in supporting visitor management.
• Strong focus on the Programme for Government commitments, commissions from government, and the lead up to COP26.

Outcome 3

32. Robbie Kernahan provided the following highlights:

• Actions resulting from the judicial review into beaver management were being addressed.
• Actions resulting from the Deer Working Group report were being clarified, with priorities being targeted.
• A significant increase in bids under the Agri Environment Climate Scheme was causing pressure on staff capacity, and this is expected to increase significantly again in the next financial year.
• Peatland commission to the Scottish Government had been completed.
• The publication of the National Performance Framework had resulted in needing to balance conflicting demands on Scotland’s land, and therefore NatureScot.
• ScotWind due to announce additional funding to finance additional resourcing of onshore wind projects.

Outcome 4

33. Jane Macdonald provided the following highlights:

• Continuing work on organisational design.
• Ongoing work to complete the Corporate Plan for 2022/26.
• Progress had been seen in creating employee networks to address diversity, as well as adding to the Young Employee cohort.
• Progress in setting up agreed ‘new normal’ working practices.
• Cyber risks, as well as network and infrastructure pressures and risks were a significant concern.

34. Members asked for clarity on the meaning and function of the Transformation Steering Group. Jane clarified that their role is to look across change programmes and ensure that they are sequenced and resourced correctly, and that the organisation has the capacity to accept and implement the changes, adjusting the transformation portfolio as required. She offered to share more information outside of the meeting.

35. Members requested an update on the minority ethnic young people placements. Jane Macdonald agreed to provide more information on progress outside of the meeting.

Post meeting note – the information was provided as agreed.

36. The Board noted the risk register entry recording the expected additional pressure on capacity in the next financial year due to increased funding for the Agri-Environment Climate Scheme (AECS), however elsewhere in the paper it was suggested that AECS was an area where efficiencies could be made. Stuart MacQuarrie explained that NatureScot’s role regarding AECS was changing, with the organisation being asked to do more, including the possibility of being a delivery partner. The opportunity was being taken to look at the structure of the organisation, and that the input of Board would be most welcome, however it was still to be confirmed what any future scheme(s) would look like.

37. Members commented on the age profile figures, and highlighted that an older workforce should not be seen as an area needing attention. They were assured that a rounded approach is being taken with regard to retirement data, to ensure that colleagues’ expertise and skills were being taken into account when considering future resourcing. This included opportunities to maximise potential career options for all colleagues regardless of age, to encourage staff to build on existing skills and develop new ones to help address future challenges.

Finance

38. David Johnston gave the following budget highlights:

• Operational and capital budgets on track for this point in the financial year.
• There remained uncertainty on the in-year additional allocations for peatland funding, Biodiversity Challenge Fund, Nature Restoration Fund and Better Places Fund. Confirmation of funding for visitor management in light of Covid-19 had been received, and although the target of hectares of peatland to be restored was on track for completion, applications for the funding were lower than expected.
• A reduction has been made to the Better Places Fund, with the funding redirected to the Rural Tourism and Infrastructure Fund.
• After adjustments, the NatureScot budget for the financial year at this stage rests at just over £70m. Surrenders are expected during Q4, when a final financial position will be available.

People

39. Jane Macdonald provided the following highlights:

• The Winter Carnival of wellbeing and social events for colleagues has been developed and will run into next year.
• Focus will continue into next year on strategic development and organisational design work.
• Board members were encouraged to take part in the Winter Carnival events and will be kept updated on the programme.

Risk

40. In the interests of time, Jane Macdonald informed that there were no specific elements of the risk report to highlight to members, but offered the opportunity to discuss offline if that was helpful.

41. The Board queried whether they were to make a strategic decision based on information within the report.  The chair asked the Board to reflect on what they wanted from the performance reporting and that would be reflected in future performance reports.

INFORMATION PAPERS

AGENDA ITEM 9:  CHIEF EXECUTIVE’S REPORT

42. Board members noted the contents of the Chief Executive’s report, in particular the following key themes:

• The way forward after COP26.
• Completion of the Peatland Commission for Scottish Government.
• Visit to Flanders Moss with Ms Slater MSP.
• Progress on the Scottish Biodiversity Strategy and its links with the next Corporate Plan.

AGENDA ITEM 10:  AUDIT AND RISK COMMITTEE (ARC) QUARTERLY UPDATE

43. The Chair of the ARC updated the Board on their work during the last quarter, and provided the following information:

• At their meeting on 02 November 2021, two audits were seen with a limited assurance – both on the effectiveness of the move of data to the Cloud, and on how lessons learned are used within the organisation. Both audits have an action plan to address the limited assurances, and progress on these will be monitored by the Committee.
• In closed session, the Committee discussed Risk 586 on Structural Funds, and are continuing to monitor.
• Committee members are concerned with issues of cyber-security, having received further information from SEPA on their cyber-attack in December 2020. While it was understood that Board members may receive cyber training via other organisations, there was no evidence available to confirm this. All colleagues were asked to complete the training, particularly bearing in mind that their positions in the organisation make them particularly vulnerable to cyber-attacks.

AGENDA ITEM 11: DRAFT AGENDA FOR 03 FEBRUARY 2022 MEETING

44. Members noted the draft agenda for the Board meeting taking place on 03 February 2022.

ANY OTHER BUSINESS

45. There were no items of AOB.

Date of Next Meeting

46. The next Board of NatureScot meeting is planned to take place on 03 February 2022, in Edinburgh and would be combined with a meeting of the Scientific Advisory Committee.

47. The Chair thanked all those in attendance, particularly Megan Rowland from the Young Employee Panel. The meeting was closed.

END