NatureScot Board meeting - 30 June 2021

ONE HUNDRED AND NINETY- SECOND MEETING OF THE BOARD OF NATURESCOT - MS TEAMS MEETING SPACE, 30 JUNE 2021

OPEN SESSION CONFIRMED MINUTES

MEMBERS PRESENT

Mike Cantlay                           Chair
Cath Denholm                         Deputy Chair
Kate Broughton                       Member
Ian Gambles                            Member
Peter Higgins                          Member
Jackie Hyland                         Member
David Johnstone                     Member
Aoife Martin                            Member
Colin McPhail                         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
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
Stewart Pritchard                    Nature Reserves Senior Advisor (item 6)
Sara Lewis                              Governance Support Manager (minutes)
Connie Dawson                      Graduate Placement – Climate Change Adaptation (Young Employee Panel)

APOLOGIES

Eileen Stuart                           Deputy Director of Nature and Climate Change

AGENDA ITEM 1:  OPENING REMARKS AND APOLOGIES

1. The Chair opened the meeting by welcoming everyone to the one hundred and ninety-second meeting of the Board of NatureScot, informing that Aoife Martin and Cath Denholm would join the meeting at a later point. Particular welcome was given to Connie Dawson from NatureScot’s Young Employee Panel.

2.  Apologies were noted from the Deputy Director of Nature and Climate Change, Eileen Stuart.

3. The Chair commented on several of his recent meetings, including with Cabinet Secretary Michael Mathieson, new Minister for Environment, Biodiversity and Land Reform Mairi McAllan, and the Director / Deputy Director of Natural Resources, Kevin Quinlan and Cate Turton. In addition Chair had recently met with Scottish Land and Estates, and the Scottish Wildlife Trust.

AGENDA ITEM 2:  DECLARATIONS OF INTEREST

4. There were no declarations of interest, however Ian Gambles updated that his Register of Interest should be amended in light of having recently left the Forestry Commission, England.

Post meeting note – Register of Interest has been updated.

AGENDA ITEM 3:  MINUTES AND ACTION POINTS FROM 12 MAY 2021

5. Board members were content to approve the minutes of the Board of NatureScot Meeting on the 12 May 2021. The minutes were proposed by David Johnstone, and seconded by Heather Reid.

Action Points

6. The actions points were discussed and the following updates were provided:

Action Point (AP13/181) (Future Options for Kinloch Castle) An update was provided that a meeting was to be arranged with Kate Forbes, Cabinet Secretary for Finance and Economy. Board members acknowledged that this action remains ongoing.

Action Point (AP02/188) (Update to Board Members on Development of Green Finance) An update was received that meeting this action is deferred until Q3. Board members acknowledged that this action remains ongoing.

Action Point (AP01/191) (Scottish Government Best Practice for Register of Interests) An update was received that details on best practice had been sent to Board members. It was therefore agreed to discharge this action point.

Action Point (AP02/191) (Draft Engagement Plan for Board Members on Organisational Design Work) An update was received that the engagement plan had been circulated to Board members, and comment provided. It was therefore agreed to discharge this action point.

Action Point (AP03/191) (Presentation on JNCC to Board Members) The presentation was included on the agenda for this meeting, therefore it was agreed to discharge this action point.

AGENDA ITEM 4:  MATTERS ARISING

7. There were no matters arising.

AGENDA ITEM 5: PEATLAND RESTORATION BRAINSTORMING SESSION – CHANGING THE TRAJECTORY

8. The Chief Executive (CE) provided opening comments for this agenda item, which considered how NatureScot can help SG meet or exceed its challenging peatland restoration targets as set out in the SG Climate Change Plan Update. The CE updated members on a meeting with herself, the Chair, and both the SG Director and Deputy Director of Environment and Forestry, where they discussed how peatland restoration work could be accelerated, as well as options for transformational change in this area.

9. Further areas of discussion during that meeting covered the willingness to consider radical delivery models. Those at the meeting had acknowledged the importance of science in measuring carbon sequestration, and that the rate in which carbon was sequestered in different geographical areas. SG commissioned NatureScot to develop some strategic solutions to increase peatland restoration work, with these options being presented to SG at the end of Q2.

10. Claudia Rowse talked the Board through slides which covered the main points of the meeting paper to be discussed:

• Demand – how to build confidence in demand from land managers to carry out peatland restoration.
• Supply – how to support the industry to rapidly expand.
• Financing – funding constraints, maximising public/private investment.
• Operating models – businesses upscaling, use of new technology, how to resource.
• Stakeholders and partners – any new ones?
• Risks – what to be most alert to

11. Claudia provided context regarding progress made to date on restoring peatland. SG’s current climate change target for peatland restoration is for 600,000 hectares to be achieved by 2045.

12. The CE summarised the actions which will take place over the coming weeks, as follows:

• SG will submit their final commission to NatureScot in the next few days, which will include financing, behavioural change, supply, and contractor capacity amongst other requirements. This will be shared with Board members.

Action Point 01/192

• Engagement with Board member volunteers will take place over the summer, making use of their expertise and ability for oversight.
• Initial thoughts will be provided to SG in August, with final thoughts provided to them by mid-September.
• A Board paper will be tabled for the October meeting.
• SG and NatureScot desire to take community involvement and land owners along through the journey to meet this challenge.
• NatureScot role in programme approach needs to be refined, in conjunction with the Cairngorms National Park, the Loch Lomond and the Trossachs National Park, Forestry Land Scotland, and Scottish Water. This refining will confirm the role of NatureScot in use of scientific expertise, quality assurance, delivery options and governance.

13. Claudia added that a joint skills model is being developed in conjunction with Scottish Forestry, which will lead to an action plan to deliver on nature based jobs and skills. This will be shared with Board members when complete.

Action Point 02/192

AGENDA ITEM 6: NATURESCOT LANDHOLDINGS AND NET ZERO

14. Nick Halfhide presented this paper to the Board, which considered nature-based solutions to climate change on NatureScot land. The Board were asked to discuss and agree the ambition for improving carbon sequestration, and to note the actions designed to deliver it.

15. The Board were supportive of the ambitions and actions given.

AGENDA ITEM 7:  STRATEGIC DEVELOPMENT UPDATE

16. Jane Macdonald introduced this paper to members, which detailed progress in strategic development since the May Board meeting. The following areas were highlighted:

• Progression of action learning sets with staff, the results of which will influence the content of the next corporate plan.
• Preparation had started for organisational development working groups, which will also work with results from the action learning sets.
• Board members have been invited to engage in the corporate plan process, and an engagement plan has been produced. The full Board will be sighted on the actions resulting from the engagement.

17. The Board noted the progress made since 12 May Board meeting, and confirmed the corporate plan engagement approach.

AGENDA ITEM 8: ENGAGEMENT WITH JOINT NATURE CONSERVATION COMMITTEE - PRESENTATION

18. Deputy Chair updated members on the Joint Nature Conservation Committee (JNCC), their remit, and relationship with NatureScot through a presentation. The agenda item was as a result of an offer during Board induction to provide more information on JNCC. The presentation highlighted how the devolved administrations are an integral element of the UK wide approach taken by JNCC.

19. Board members welcomed the presentation, and thanked the Deputy Chair for providing it.

INFORMATION PAPERS

AGENDA ITEM 9:  CHIEF EXECUTIVE’S REPORT

20. The Chief Executive (CE) presented her report to members, which detailed her work since the last meeting on the following key themes:

• Engagement with new Ministers and officials.
• Policy proposals to raise the profile of nature-based solutions at COP26.
• Organisational design.

21. Members requested more information on the recent results of the People Survey which staff had engaged with. The CE said that there had been a lower response rate than for the previous survey, but noted that staff had regularly surveyed throughout the pandemic on their wellbeing and working from home arrangements, and have also been engaged in various areas of business over that time.

22. The survey results showed that staff considered there had been improvements in decision making, change management, leadership, and Senior Leadership Team engagement with staff. Work will continue in improving these areas, and further analysis of the survey results by team will be undertaken.

23. Other areas of note from the People Survey results were as follows:

• Positive response from staff on the organisation’s response to Covid-19 with regard to working from home support, wellbeing, and health and safety.
• Issues with dignity, respect and bullying had improved, with staff acknowledging a more inclusive workplace.

24. The Board enquired whether there were plans for a Board/staff engagement plan, which was confirmed. Graham Boyle was asked to develop this.

Action Point 03/192

25. The CE gave more detail on the peatland pavilion planned for COP26 and on progress being achieved by the Land Use Transformation Board. Further detail on plans for taking part in both COP26 and COP15 were requested by the Board, and will be forwarded to members by Nick Halfhide.

Action Point 04/192

AGENDA ITEM 10:  EMERGING FROM COVID-19 – ‘NEW NORMAL’ PRINCIPLES

26. This paper gave NatureScot’s adopted ‘new normal’ principles which guide decisions around ways of working as while continuing to emerge from Covid-19 restrictions. The Board were asked to note the adopted principles, and consider the implications for discharging Board responsibilities.

27. The Board noted the principles and implications given in the paper and subsequent discussions.

AGENDA ITEM 11: UPDATE ON PREPARATIONS FOR THE COPs

28. This paper explained the actions being taken by NatureScot in the lead up to the Conference of Parties (COPs) to advance corporate priorities.

29. Board members noted the contents of the paper.

AGENDA ITEM 12: draft itinerary for 25/26 august 2021 board site visit

30. Board members noted the current plans for the site visit to Carrifran Wildwood (Borders Forest Trust) and the Annandale Estate.

ANY OTHER BUSINESS

31. Members queried whether it was possible to have access to the electronic records document management system used by staff. It was agreed that Graham Boyle would look into this.

Action Point 05/192

Date of Next Meeting

32. The next Board of NatureScot meeting is planned to take place on 25 August 2021, at the Cairndale Hotel, Dumfries, as part of the site visit to Carrifran Wildwood and the Annandale Estate.

33. The Chair thanked all those in attendance, particularly Connie Dawson of the Young Employee Panel. The meeting was closed.

END

One-hundred and ninety-second meeting of the Board of NatureScot - 30 June 2021

09:45 Virtual Coffee Catch up - Please connect to the MS Teams link

10:00

1. Welcome, apologies and Chair Opening remarks - Mike Cantlay

2. Declarations of Interest - Mike Cantlay

10:10  3.  Minutes and action points

10:15  4.  Matters arising

10:20  5. Peatland Restoration brainstorming session - Claudia Rowse
                - changing the trajectory (Official-Sensitive)

10:50  6. NatureScot Landholdings and Net Zero (Introductory Presentation and paper) -  Nick Halfhide/Ben Ross

11:20  7. Strategic Development Update (Official-Sensitive) - Jane Macdonald

11:35  8.  Engagement with Joint Nature Conservation Committee (presentation) - Cath Denholm

Information Papers

9.  Chief Executive's Report (Official-Sensitive) - Francesca Osowska

10. Emerging from Covid-19 - 'new normal' principles - Stuart MacQuarrie

11. Update on preparations for the COPs (Official-Sensitive) - Nick Halfhide

12. Draft Itinerary for 25/26th August 2021 Board Site Visit - Graham Boyle

Any Other Business (AOB)

12:15 Close

Purpose

1. This paper summarises the contribution of NatureScot’s land to delivering net zero and identifies actions to enhance this. This paper complements our Net Zero Plan.

Our Ambition

2. NatureScot should be leaders in showcasing exemplary land management and how to deliver multiple benefits from our land. Our landholdings are almost exclusively nature reserves which we have managed for nature and for people for many years. Our challenge now is to maximise their contribution to tackling climate change, whilst also delivering for nature and up to a million people visiting per year.

Background

3. We own almost 35,000 ha (<0.5%) of land in 39 locations in Scotland (see Annex). They range from our largest site, Rum, which is just over 10,000 ha, to small reserves such as the 8 ha at Rhynie Chert. We manage 98.8% of this land as nature reserves.

4. We have 4 key objectives for climate-change mitigation on our land:

a. Maximising storage and sequestration of carbon on reserve habitats
b. Minimising direct emissions arising from our work on reserves
c. Minimising direct emissions associated with visitors
d. Maximising the influence we can have on others to support net zero ambitions

5. This paper focuses on Objective (a). Work on objectives (b)-(d) is ongoing but not considered in this paper.

Maximising storage and sequestration of carbon on reserve habitats: The current picture

6. Different habitats have different carbon storage capabilities and sequestration or emission rates. Generally the better the health of a habitat the better it is at retaining carbon. Habitats like peatland can store vast amounts of carbon. If they are in good condition they will slowly and indefinitely sequester carbon, but they can release it very quickly if in poor condition. Woodlands store carbon in lower quantities than peatlands, but sequester it much more rapidly, however this rate decreases and levels out over the long-term. Other habitats, such as some heaths, may emit small amounts of carbon dioxide, even when in healthy condition.

7. Because our landholdings often contain a mosaic of habitats, some of which may be sequestering and some emitting carbon, we consider net values for each site. Our land sequesters an estimated net 7,300tCO2/yr. For comparison, NatureScot’s operational emissions in 2019/20 were 950 tCO2. The majority of substantive landholdings (78%, 28 sites) are carbon-neutral or net-sequesters. A small number of sites, largely on account of the types of habitat they hold, naturally emit low levels of CO2 (19%, 7 sites).

8. One site, Castlehill on Islay, has significant estimated emissions (5,300tCO2/yr), potentially emitting as much carbon as is taken in by the top three sequestering landholdings combined. Castlehill is an area of peatland bought by NatureScot in the ‘80s and extraction rights were granted to Diageo to support the Whisky industry and prevent damage to other peatlands.

9. The highest potential emissions from any of our other landholdings are on the peatland component of one site in the Cairngorms (c4,800tCO2/yr). This is based on an assessment of unfavourable condition of the blanket bog feature of the SAC in 2007.

Actions and priorities

10. Reducing emissions and increasing sequestration on existing habitats - We need to ensure carbon stocks are secure and minimise emissions. This means ensuring habitats are in favourable condition, and where they aren’t, prioritising remedial actions on those most vulnerable to emissions.

11. Habitats on our reserves are generally in good condition, with 89% of protected habitat features on our land in favourable condition (compared to 75% nationally). An estimated 96% of the area of protected habitats on NatureScot land are in favourable condition.

12. The two priorities for NatureScot are Cairngorms SAC and Castlehill. The blanket bog on Cairngorms SAC will be re-surveyed this year to establish its condition. If this is still in unfavourable condition then we need to urgently introduce remedial measures. We urgently need to explore, with Diageo, the opportunities to reduce emissions from Castlehill and the positive action that can be taken to offset (and more) any residual emissions.

Addressing these two issues alone would increase estimated net sequestration by c.140%

13. Habitat change - By allowing or changing the composition of different habitats on our landholdings we can affect net sequestration. We’ve enabled natural native woodland expansion at some reserves and sequestration is likely to have been improved as a result. However, to date, we have not considered large-scale habitat change on our land, and instead have maintained habitats in line with the features for which they received statutory protection.

14. Large scale habitat change needs careful consideration (see risks) and takes time to accrue benefits. This is likely to include consideration of facilitating woodland expansion by appropriate planting, (re)wetting areas of land or changing management interventions (including grazing pressure) that otherwise prevent natural succession of some habitats e.g. heathland into scrub. We can use our land to trial these approaches and then apply more widely across Scotland.

15. Better data – We can use our land to help test, improve and refine the data available to support decision-making. This includes testing carbon calculators, supporting experimental trials and utilising and refining use of innovative technologies on our reserves.

16. There are also small-scale, low-cost interventions that could accrue limited sequestration and biodiversity benefits across our land. This includes habitat creation on land that is not protected. For example afforestation of marginal or other agricultural land and creation of new wetland areas.

Taking forward habitat-change actions could increase our estimated net sequestration on NatureScot land by around 25%

Risks and opportunities

17. Castlehill poses significant and increasing reputational risk. The opportunity is to work with Diageo to develop a win-win resolution.

18. The information provided in this paper applies to our landholdings. We also have influence over the management of other areas of land through Nature Reserve Agreements and other leases, and collaborate with other organisations who own land in the NNR suite. This provides us with the opportunity to positively influence those partners to deliver similar ambition and benefits on their own land.

19. Developing dynamic approaches to protected area management challenges current approaches and interpretations and presents legal risks. However, the potential benefits are significant.

20. There is a risk of driving interventions to maximise sequestration only. However, the opportunity is to demonstrate a multi-benefit approach: delivering for nature, people and net-zero.

21. There are significant limitations in our data and scientific understanding on storage, sequestration and impacts of ecological change. Changes to our approaches need to be very carefully considered on a site-by-site and risk-based basis, and we will continue to improve our scientific understanding to inform our management.

Resources

22. The resource implications of these proposals are relatively low, with the majority of actions taken forward as normal reserve management. Additional habitat creation on reserves could involve some increased capital budget but there are opportunities through volunteering and green skills development to reduce the cost.

Recommendations

23. The Board is asked to note the current situation and endorse the actions proposed.

Purpose

1. This paper has been prepared in light of the country emerging into a post-pandemic world which has turned previously accepted norms upside down. The prospect of moving into a new work/life experience is now on the near horizon with preparations underway for both outdoor meetings and permitted access to our offices. We want to take the opportunity to start with a new set of expectations to help shape and steer that return, leaning on learning from the past 14 months. By establishing, and adhering to these principles, there is an opportunity to accelerate lower carbon ways of working, whilst also positioning NatureScot as a leader in transforming our operations in support of our ambitious emissions reduction plan.

2. In preparation for this, and following the approval of our Net Zero plan, a set of principles for a beneficial net zero focused ‘new normal’ has been adopted by Senior Leadership Team and communicated to all NatureScot colleagues. This paper presents the overarching context and the adopted principles.

Background

3. Scottish Government declared a climate emergency in 2019 and its Programme for Government announced an ambitious plan to become net zero by 2045. NatureScot committed to a target stretch date of 2035, 10 years earlier than the Scottish Government target. Scotland’s public sector bodies have a strong leadership role in delivering the transition to net zero. In that context we are leading a discussion within the Environment Economy and Leaders Group to support mutually ambitious and co-ordinated approaches to reopening.

4. The ongoing pandemic has created a significant change of culture with many organisations now able to effectively transact business from home and/or any other location. This includes NatureScot. This has resulted in unexpected benefits, reducing travel, energy and office demand but has also been a challenge for some colleagues to adjust to. Accepting that there are some cases where acute challenges have been felt, the overwhelming story is one of welcomed adoption of greater flexible working practices. We aim to encourage and empower colleagues to continue working in this, now proven way, by adopting principles on shaping how we proceed towards reopening.

Action

5. Note the adopted principles and consider implications for discharging Board responsibilities.

Our adopted Principles for the emerging new normal

Now is the moment to be clear on what sort of organisation we want to be as we emerge from Covid-19 restrictions and experience the relaxation of lock-down rules. Senior Leadership Team has agreed a set of Principles which will help guide our connections with colleagues, partners and workplaces as we make choices about our working preferences. They are written in the context of our overall leadership ambition to stretch towards our 2035 Net Zero target ensuring that this is achieved in a fair and just way. These Principles set the context and expectations for the sort of workplace experience we will adopt going forward. They can be summarised as follows:

Fair

Covid-19 has visited every one of us in very different ways. At the heart of our Principles is an absolute commitment to ensuring that inequalities are actively addressed – both for us, but also for others who find it difficult to engage with the organisation for a variety of reasons. No-one should feel left behind in response to our new ways of working.

Creative

Our Principles are aimed at supporting a creative, fast-paced, dynamic and collaborative workforce. We are committed to providing the tools, support and workplaces to ensure that creativity is core to our vision of a nature rich future. Our workplaces will need to adjust to support that ambition in some places and we will continue to deploy new technologies in the MS Teams environment to support this.

Connected

We want to build on our wider sense of connection to something much bigger than a physical location. Every member of staff should feel connected to the rest of the organisation and you should be able to feel that you contribute to that bigger whole. Wherever you choose to work, we want to provide you with the opportunities to participate in building, strengthening and maintaining connections both with colleagues and with customers.

Flexible

We want you to be making conscious choices about where you need to work for the tasks you are completing. In doing so, we want to ensure that our emissions from our operations are as low as possible. We will signpost information sources to allow you to do that through our Net Zero team.

Lastly, whilst this is a set of Principles to build on the experience of the past 15 months, they are not a definitive end point. We know that all organisations will need to adjust and that further steps will be required as we emerge from this pandemic. In that context, we will review our adoption of these principles in 6 months to ensure they are delivering the required benefits noted above. These Principles represent the areas of learning we want to hold on to and provide a framework for you to have a discussion in your teams on how you will reflect them in your ways of working. Senior Leadership Team have fully adopted these same principles.

NatureScot Principles for the New Normal

Net Zero Working

We will adopt a net-zero working hierarchy of:

1. work from home,
2. work from home some of the time,
3. work from a NatureScot office and/or hub or partner space as required.

Staff will make their own choices within the hierarchy based on their understanding and balancing of emission impacts, business need, wellbeing and equality impacts.

Digital First

We will adopt a ‘digital connection first’ approach for both internal and external meetings.

1. For internal meetings this will be our default position for work such as team catch-ups, casework exchanges, project and programme boards.
2. For external meetings we will offer digital connection first to our partners and stakeholders when we/they want to transact business. We will be explicit that this is our favoured means of business engagement from an emission reduction/nature benefit perspective. We will respect the decision of the partner/stakeholder and minimise travel emissions through adoption of our travel hierarchy should face-to-face be necessary.

Collaboration

Where face-to-face work is beneficial, we will:

1. Co-ordinate meetings or workshops to best suit giving equal access to those choosing to engage digitally.
2. Re-purpose the use of office spaces away from a location of daily work to a drop in facility to support team cohesion, working collaboratively or creatively, or for tasks such as on-boarding new members of staff.
3. Encourage face-to-face discussions particularly where creative thinking and strategy development is required and will ensure office spaces are reconfigured to accommodate this.
4. Encourage face-to-face meetings where there are wellbeing needs and actively promote outdoor walking meetings.

Transparency

On ‘reopening’ we will commit to transparency in emissions related to choices of ways of working. We will publish costs both in financial and emissions terms. This will be used to explore continual improvement in emissions reductions in support of our 2035 target.

Net Zero Travel

Travel choices beyond digital first will be firmly focused on delivering Net Zero benefits through our travel hierarchy and prioritising digital communication or lowest carbon options, including train travel. We will strive for 100% site visits by electric vehicle (where electric vehicle is an option).

Carbon Responsibility

We will encourage individual responsibility for staff to work where they need to, when they need to in support of NatureScot priorities and team cohesion.