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Board meeting - 16 April 2024

The one hundred and ninety first meeting of the Agency Board will took place at 1.00pm on Tuesday 16 April 2024 in the Boardroom, Angus Smith Building, 6 Parklands Avenue, Eurocentral, Holytown, ML1 4WQ.

Clerk to the Board opening statement

The Clerk to the Board advised that guidance on “frequently asked questions” arising from the Board induction had been circulated to Board members on 12 April 2024. This guidance will be kept updated and members will be advised of further induction and training opportunities, including on “cyber essentials”.

Chair's opening remarks

The Chair welcomed everyone to the meeting including observers, Board Apprentice, Aminah Zahid, and new Chief Operating Officer Data, Evidence & Innovation, Alex Flucker, who will take up his appointment from 1 May 2024.

No members of the public were in attendance.

Matters arising

The Clerk to the Board provided an update on the actions. The following was noted:

Action 782 – A meeting has been arranged for the 24 April 2024 to discuss further the UK Integrated Regulatory Review Services Mission. Proposed Closed.

Action 783 – Performance reporting was discussed on the 16 April 2024 as part of the Corporate Leadership Team (CLT) and Board Strategy and Planning Session. Proposed Closed.

Action 784 – Information is available on SEPA’s website (Cyber-attack); a link has also been provided in the action note to where the information can be found. Proposed Closed.

Chair's report

The Chair provided a verbal update on her activities since the last Agency Board meeting on 27 February 2024. The following highlights were noted:

• Regular one to one meetings are held with Board members and SEPA colleagues.
• Attendance at the Cumbria River Restoration Programme tour with SEPA’s Chief Executive on 4 April 2024. The Chair reported that the project itself was very interesting and inspirational, and the trip extremely useful for networking with stakeholders, including the Environment Agency, RSPB and United Utilities. This has already resulted in receiving invites from partner agencies to discuss opportunities for more collaborative working.
• Participation in a meeting with SEPA’s Senior Leaders in Stirling on 14 March 2024, which was an interesting and helpful session.

The Chair reported that the morning’s strategy session for the Board with the CLT had been very helpful, and that she hoped that Board members would now have a greater sense of where the organisation is and the direction of travel.

The Board noted the verbal update.

Management reports

Chief Executive’s Report

Chief Executive's Report - SEPA 24-25/001

The Chief Executive advised that her introduction to the report had been updated and asked for the new report to be circulated.

Action: Clerk to the Board

The Chief Executive introduced the report, emphasising the importance of the reset of SEPA. She advised that with Alex Flucker joining on 1 May 2024 the CLT is now complete, providing visible leadership for SEPA delivering the Corporate Plan and the new Annual Operating Plan.

The Chief Executive highlighted that the Cabinet Secretary for Wellbeing Economy, Net Zero and Energy, Mairi McAllan, had attended the 2024 VIBES Awards launch on 28 February 2024 and that the Chair will chair the Awards panel this year. It was noted that the VIBES Awards create a great opportunity to showcase innovative businesses across different sectors, sharing good practice. Board members were encouraged to get involved in promoting the awards; dates of the VIBES events will be circulated to Board members.

Action: Clerk to the Board

The Chief Executive summarised other key deliverables in the report, showing the strength of work undertaken as a team over the last two months, and opened up for questions from Board members.

In response to a question raised on the delay of the implementation of three river restoration projects (Section 5 Water Environment Fund Annual Operating Plan update), the Chief Operating Officer Regulation Business and Environment (RBE) advised that more detail on this will be provided in the Quarter 4 Performance Report to be discussed at the May 2024 Board meeting.

Following a query on fly-tipping and the role of partners (Section 4 Litter and Fly Tipping Strategy), the Chief Operating Officer RBE advised that within the range of activities SEPA regulates, fly-tipping is not the highest priority, but that SEPA provides intelligence to support this work and as part of the Scottish Government’s Strategy has two posts funded, as referred to in the Chief Executive’s report. Board members were encouraged to watch the BBC’s Disclosure programme, “Dirty Business”, as this was very informative on the issue of criminal waste activities.

A further question was raised on the fly-tipping of tyres in Loch Ness (under Section 4 of the report). In response the Chief Operating Officer RBE highlighted that tyres are a difficult waste to deal with as they have limited potential for reuse, but reassured the Board that it is an area that SEPA is focusing on.

Discussion took place in respect of section 6 of the report focusing on the Scottish Television (STV) and SEPA flood partnership advert. To enable the Board to reflect on the effectiveness of this, it was noted that it would be good to have more context provided as to whether the TV advertising campaign was successful or not. The Chief Officer Governance, Performance & Engagement (GPE) advised that the advert was designed to raise the profile of SEPA’s role in flooding, and more widely on resilience, and led to an increase in the number of new users of the Floodline website. This was a starting point for a larger piece of work for SEPA communications.

The Board also noted the record number of flood alerts and warnings issued last autumn and winter (section 6) and the key leadership role SEPA plays in flood risk management (referring also to the Scottish Government’s Flood Risk Strategy under item 10).

In response to a question on the Grangemouth Regulatory Hub and the workshops that had taken place in March (as referenced under Section 5), the Chief Operating Officer RBE advised that the workshops had gone well, providing a good platform to move forward for the pilots this month. Further detail will be provided at the May 2024 Board meeting on progress with the Outcome Based Collaborative Regulatory (OBCR) project which is funded to March 2025. The Chair advised that she had met with the academic expert leading on research in this area and discussed SEPA’s project to test OBCR in March 2024.

Clarification was also provided in response to a question relating to the paragraph in the Chief Executive’s report on UK Emissions Trading Scheme and carbon credits.

The Board noted the report.

Annual Operating Plan

Annual Operating Plan - SEPA 24-25/002

The Chief Officer GPE introduced the report with paper authors (International Services Manager and Senior Business Consultant) in attendance.

She advised that the purpose of this item was for the Board to provide feedback and agree the Annual Operating Plan (AOP) 2024-2025 for publication at the end of April 2024.

The Chief Officer GPE reminded the Board that SEPA’s Corporate Plan was published on 28 March 2024, and reflects SEPA’s strategic direction for the next three years focusing on five priorities: Net Zero, Climate Resilience, Water Environment, Resource Efficiency, and Business Environmental Performance. The AOP is the framework that SEPA is working to which provides further detail on activities SEPA will undertake to meet these priorities and commitments during 2024-2025.

The Chief Officer GPE informed the Board that the AOP has been developed with SEPA’s senior leaders. She confirmed, following a query on resource allocation and personal objective setting, that work is underway to link the AOP objectives to inpiduals PDRs (Personal Development Reviews), so that inpiduals are clear what needs to be achieved this year and what their role is.

The Board provided feedback on the draft AOP, including the need for quantifiable targets and a baseline on which to measure success. The Board questioned some of the language used and it was agreed that this would be considered further prior to publication. A query was raised on the measurement relating to the percentage of invoices paid within 10 days; it was agreed that further information on this would be circulated to Board members after the meeting.

Action: Chief Officer Finance, Modernisation & Digital

The Board also requested that the AOP’s Equality Impact Assessment (EQIA) is shared with them prior to agreeing the Plan. The Chief Officer GPE advised that there were no areas of concerns raised by the EQIA, and that it would be circulated to the Board after the meeting along with the revised version of the AOP for agreement.

Action: Chief Officer GPE

The Board noted the paper and the timetable for publication of the AOP.

Publication of the AOP is subject to feedback received from Board members. This will be addressed via circulation of the revised AOP document and agreement will be homologated at the May 2024 Board meeting. It was agreed that there was no need for another Board meeting to agree the Plan.

Action: Chief Officer GPE and Clerk to the Board

Scotland's Flood Resilience Strategy

Scotland's flood resilience strategy - SEPA 24-25/003

The Chief Officer GPE introduced the report in highlighting that it was in the context of her involvement in Scottish Government relations drawing attention to SEPA’s role in helping to shape the strategy through engagement with Scottish Government. She outlined SEPA’s role as Scotland’s flood forecasting and flood risk management authority, explaining that whilst Scottish Government own the strategy and is leading on its development, SEPA is very engaged and is represented on senior leadership and stakeholder groups to advise on the direction of the strategy. SEPA is working with Scottish Government on the final drafts of the consultation.

The Board noted the important collaborative work on the strategy with Scottish Government and the intention for a Board session with Scottish Government colleagues during the consultation period.

The Chair highlighted the importance for SEPA to shape the direction of the strategy and SEPA’s strategic role, working in partnership, and considered it helpful to have a Board session to enable the Board to form an opinion on a response. It was agreed that the session would also help the Board understand better the opportunities for SEPA and the role SEPA can play.

Action: Chief Officer GPE and Clerk to the Board

The Board noted the report and commented favourably on its succinctness.

Board work programme

Report on Board Induction Activities

The Clerk to the Board provided an update on Board induction activities, highlighting the following:

• The morning’s strategy and planning session with CLT (16 April 2024) focused on providing an update and overview on the areas identified to ensure all Board members start with the same baseline information on SEPA. It will be a reference point going forward. Key topics that came out of the session will be mapped to the Board and Committee planners.
• There was a follow up session on Board Governance on 13 March 2024, held after the Standards Commission session with the Board on 27 February 2024.
• A Board workshop led by the Chair with an external facilitator was held on 18 March 2024.
• Board members have been invited to attend Scottish Government Public Bodies Support Unit (PBSU) board induction events on 21 May or 25 September 2024. Board members can also access the Scottish Government governance hub for learning and development resource.
• Audit and Risk training opportunities are being explored with Audit Scotland and will be offered to all Board members.

It was noted that the Board support team will continue to look at other opportunities throughout the year as part of the on-going induction journey for the Board. Members were asked to get in touch with the support team if they would like to suggest any additional training needs or identified any opportunities.

The Board asked to be kept informed of conferences, including those hosted by SEPA, that would be of benefit for them to attend. The Chair highlighted that the team has started to compile a list of memberships and subscriptions that SEPA has as an organisation and that there might be events arising through this.

The Clerk to the Board advised that if Board members receive notifications of events that they are interested in participating in, the Board support team who can advise on attendance.

Reference was also made to the need to amend the email circulation list for SEPA’s weekly media reports.

Action: Clerk to the Board

Update on Board Champions

The Chair advised that a paper on Board Champions will be put forward for the May 2024 Board meeting.

Other Board Engagement

No further Board engagement was reported.

Board Committee Reports

• Audit and Risk Committee minute of meeting held on 19 March 2024
• People and Remuneration Committee minute of meeting held on 12 March 2024

Audit and Risk Committee minutes

The Chair of the Audit and Risk Committee (ARC) provided a verbal update on the ARC meeting held on 19 March 2024. She highlighted that SEPA is currently in the process of changing its internal auditors from Azets to BDO, and that preparation is underway for the ARC workshop on 11 June 2024 to bring different strands of risk together before engaging the whole Board.

The Board asked for information to be circulated to all members on what areas are being audited and the key actions arising, and that the corporate risk register be shared with the full Board. It was agreed that the audits would be made more prominent on Diligent Boards for the full Board to access and highlighted that the risk register comes to the Board annually.

Action: Clerk to the Board

A question was raised on the Finance update provided at the meeting on 19 March 2024 in respect of the CapEx underspend. The Chief Officer Finance, Modernisation and Digital advised that she is still finalising the year-end figures and once it has been reviewed a paper will be brought to the Board explaining the underspend.

The Board noted the update.

People and Remuneration Committee

The Chair provided a verbal update on the People and Remuneration Committee (PRC) meeting held on 12 March 2024 where a paper was presented summarising the work underway in the People and Property portfolio. It was noted that the People Strategy will come to the Board in due course. As it was the first PRC meeting under the new Chair and Board membership, the Committee revisited the Terms of Reference for the benefit of new members, for familiarisation.

The Committee approved the proposed 2023-2024 pay scale for the Chief Executive and noted the Scottish Government revised daily rates for the Chair and Board Members. The Committee discussed the potential for changing the process of approving the pay uplift for Board members and agreed that further guidance will be sought before the Committee next considers this.

In response to a question on the executive coaching provided for senior leaders, the Chief Executive advised that heads of function are openly embracing it and that individuals are at different stages on their leadership journey.

The Board noted the update.