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Chief Executive’s Report

Summary

Agency board report number: SEPA 24-25/001

This paper provides the Board with important updates on significant issues affecting the operating environment of SEPA, highlighting areas of environmental achievement and concern, enforcement action and major partnership activities, as well as business related issues in respect of corporate performance and activity since the last Board meeting on 27 February 2024.

Introduction

As we entered Spring we continued to strengthen for the future of our environment, with new leadership across our Agency Board and the reshaping of our Corporate Leadership Team.

The restructure of our Corporate Leadership Team is now complete. Following recent competitive recruitment and selection processes, I am delighted to confirm that Lin Bunten has been appointed as Chief Operating Officer; Regulation, Business & Environment and that Alex Flucker has been appointed as Chief Operating Officer; Data, Evidence and Innovation.

Lin’s appointment saw the creation of a new ‘Regulation, Business & Environment’ portfolio on 1 April 2024, combining the majority of areas from the previous Compliance and Circular Economy portfolios. Alex’s appointment brought with it the creation of the new Data, Evidence and Innovation portfolio containing the main areas from the previous Evidence and Flooding portfolio.

Alex and Lin join Kirsty-Louise Campbell as Chief Officer; Governance Performance and Engagement, Angela Milloy as Chief Officer; Finance, Modernisation and Digital, and Kirsty Paterson as Chief Officer; People and Property in completing our Corporate Leadership Team.

Our work is continuing at pace with the exciting launch of our three-year Corporate Plan on the 27 March and the launch of our Annual Operating Plan following closely behind. These are significant milestones in our journey that will hold us to account in the important role we play as the nation’s principal environmental regulator.

As part of our commitment to work towards SEPA becoming a more inclusive employer, during March we promoted Neurodiversity Celebration Week with a range of workshops and information. We want to be part of the worldwide initiative that challenges stereotypes and misconceptions around neurological differences and recognise the many talents and advantages of being neurodivergent.

The 2024 VIBES Scottish Environment Business Awards were launched at Scottish Parliament on 28 February. The event also celebrated achievements of 2023 award winners, particularly their successes in tacking climate change and other environmental challenges. The event featured a welcome from Ben Macpherson MSP and an address from Màiri McAllan, Cabinet Secretary for Wellbeing Economy, Net Zero and Energy. I then gave closing remarks and launched the 25th year of the Awards. More on this will follow later in the report.

I was delighted to give the Keynote address at Scotland’s World Water Day at Dynamic Earth on Friday 22 March. As we know Water is at the centre of some of our greatest global challenges and can serve as a strategic asset or resource to maximise co-benefits of water-related strategies and activities, and help advance a just transition for climate resilience, incorporating principles of justice, inclusivity, cooperation, and sustainability, participatory and representative decision-making, and stronger institutions.

We continue over the last two months to build relationships with Key Stakeholders and partners including Prosper, the Institute of Directors (IoD), Environmental Standards Scotland, and the Hydro Nation Centre at the University of Stirling.

As we continue the induction programme for new Board Members, Chair and Chief Executive visits have commenced with a visit to the Environment Agency (EA) in Penrith, meeting the new EA Chief Executive and Chair and visiting the Ullswater CIC and Riverlands sites in early April, and will continue with scheduled meetings with NatureScot and Scottish Water amongst others in the coming weeks.

Significant work continues on Public Sector Reform as we play our part in the Environment & Economy Leaders Group, leading on a range of opportunities. We’re sending participants to national workshops to commence the second stage of the review, informing the next steps.

Some highlights of our delivery follow, as our teams continue to work to protect and improve Scotland’s environment.

Avoid

Potentially Vulnerable Areas consultation launch

On 25 March 2024, we launched a public consultation allowing people to have their say on Potentially Vulnerable Areas in Scotland. Potentially Vulnerable Areas are areas where significant flood risk exists now or is likely to occur in the future. These areas will help Scotland understand and prioritise where work could have the most benefit. They are vital for protecting people, properties, businesses, communities, infrastructure, and our environment. (D Pirie)

Adapt

Seasonal water scarcity report

Weather conditions over the autumn and winter have a major influence on water resource stores and hence the risk of water scarcity the following summer. During a period of water scarcity, SEPA must balance water use by licenced abstractors with protecting the water environment. The seasonal water situation report which assesses the state of winter recharge across Scotland has now been published. Following the multiple intense storms and floods over the last few months, there has been good recovery of water resources across the country.

Whilst this water resources recharge reduces the risk of water scarcity this summer, dry conditions through spring and early summer could still lead to water scarcity, as experienced in 2023. Early communication and advice will continue to be a key part of our approach to help water users plan and manage their water supplies sustainably and to make them aware of the regulatory steps that SEPA will take if significant water scarcity is reached.

We know we must move beyond emergency management. Our ambition is a national, collaborative, and evidence-based approach to water resource management where all water users are adapted to our future climate and manage their supplies in a sustainable and resilient way. We are working with Scottish Government and partners to influence new legislation, policies and guidance. We have a have a strategic session on water scarcity at our May Board meeting where we will focus on this further. (L Bunten)

Protect

Inquiries ongoing to trace those responsible for fly-tipping tyres into Loch Ness

Inquiries are ongoing to identify those responsible for dumping over 300 tyres from the side of the A82 into Loch Ness.

The incident was reported to Highland Council on Monday 29 January 2024 and is believed to have occurred sometime over the weekend between 27 and 28 January 2024. We are leading on the investigation and anyone with information is urged to contact us. (L Bunten)

SEPA’s carbon emissions tool for local authorities

Scotland’s Low Emission Zones have been designed to improve human health by reducing nitrogen dioxide (NO2) concentrations within the city centres of Aberdeen, Dundee, Edinburgh and Glasgow. Air pollution and climate change are among the greatest environmental challenges facing us today, and local authorities have a key role to play in reducing their impacts.

We worked in partnership with Glasgow City Council to develop a data tool which explores the make-up of CO2 emissions from road transport in Scottish local authorities. The tool combines vehicle and road traffic statistics from Transport Scotland and GOV.UK with detailed emission factors. This enables total CO2 emissions to be attributed to the distances and speeds driven by different types of vehicles on local and trunk roads. Local authorities can therefore use the tool to test and develop a range of viable transport-based scenarios for future sustainable transport strategies. Glasgow City Council has already used SEPA’s tool in the development of their ambitious Glasgow Transport Strategy that aims to tackle climate change and inequality across the city.

Diagram showing the City of Edinburgh CO2 assessment – Scenario 1: Reducing distances travelled

The City of Edinburgh Council has used SEPA’s CO2 tool to assess the impacts of reducing car kilometres driven across the local authority area by up to 30%, as committed in their City Mobility Plan. The Council has also been testing the expansion of roads with a 20mph speed limit. SEPA’s tool demonstrated a reduction in carbon emissions associated with reducing kilometres driven of 19% (see diagram). By contrast, the adverse impact on carbon emissions of reducing traffic speeds was negligible.

Once published on the web, SEPA’s carbon tool will be available for all local authorities in Scotland. (D Pirie)

Knowledge exchange partnership with the University of the Highlands and Islands will enhance SEPA’s future environmental monitoring capabilities

We will be working with the University of the Highlands and Islands’ Inverness College on a two-year knowledge exchange project on DNA-based environmental monitoring. The project is supported by a grant from SEPA and aims to provide a range of new DNA-based environmental assessment methods. It will establish standardised sampling and analysis procedures, and through knowledge exchange, build our scientists’ skills in DNA-based assessments.

New DNA techniques over the next few years will become a cornerstone of environmental monitoring, enabling us to detect and understand impacts on biodiversity more quickly and efficiently. This will enable us to further target our work to protect and improve the environment. (D Pirie)

Litter and Fly Tipping Strategy - early successes and year two funding awarded

We have been awarded funding for the next year to continue actions from the Litter and Fly Tipping Strategy. This funding allows us to provide two dedicated roles that enhances the agency's investigative and enforcement capacity to tackle fly tipping during the life of the Strategy. The funding will continue provision of a dedicated digital interventions officer, and a specialist investigation officer with the aim of delivering enforcement through increasing the use of our monetary penalty toolkit to provide a deterrent effect. Progress continues in the current reporting period: our early investigations and development of partnership approaches with local authorities continue and our digital work has seen the number of deactivated Facebook profiles advertising illegal waste services increase to seven since February. (L Bunten)

Illegal waste operation day

SEPA officers worked together with Revenue Scotland officers to successfully execute a day of action at a major suspected illegal landfill in the North of Scotland. We are now actively pursuing lines of enquiry. (L Bunten)

Improve

Sustainability trailblazers celebrated as entries open for VIBES - Scottish Environment Business Awards

Scottish businesses championing sustainability are in the spotlight as entries open for the 2024 VIBES – Scottish Environment Business Awards.

Now in their 25th year, the SEPA led VIBES awards encourage businesses to show vision and leadership in tackling climate change and other environmental challenges. They also aim to enhance environmental performance and showcase those supporting the wider social and economic benefits of sustainability.

The 2024 programme was launched at the Scottish Parliament on Wednesday 28th February 2024, where the outstanding achievements of last year’s winners were applauded by attendees including industry leaders and Members of the Scottish Parliament. Cabinet Secretary for Wellbeing Economy, Net Zero, and Energy, Mairi McAllan MSP delivered a keynote address, supported by a question-and-answer session with industry leaders including the Institute of Directors Scotland. (L Bunten)

Air Quality Action Plans

All local authorities with Air Quality Management Areas have been required to review and revise their Air Quality Action Plans (which set out their intentions for working towards the air quality objectives) or move towards revocation of Air Quality Management Areas in line with updated Scottish Government guidance. We have been assisting local authorities in carrying out these duties. All updated plans or notification of intent to revoke must be submitted to SEPA for assessment. (L Bunten, D Pirie).

Local Air Quality Management policy guidance update

We have been working closely with Scottish Government to carry out a review of Local Air Quality Management, Policy Guidance PG (S) (23) which is used by all local authorities and SEPA to assist in fulfilling duties under Local Air Quality Management. This guidance has been updated to further strengthen the procedures around reviewing, assessing, reporting and action planning on air quality. It clarifies SEPA’s oversight role to ensure local authorities fulfil their duties and is due to be published in April 2024. (L Bunten, D Pirie).

UK Emissions Trading Scheme

The UK Emissions Trading Scheme is a system of carbon reduction and trading for UK businesses in energy-intensive sectors, run by the governments of the United Kingdom. The UK Emissions Trading Scheme will also contribute to delivering Scotland’s goal of a 75% reduction in CO2 emissions by 2030 and net zero emissions by 2045.

SEPA has recently concluded the 2023 review of UK Emissions Trading Scheme free allocation for Scotland. Free allocation is a critical part of the UK Emissions Trading Scheme and receives significant attention from Governments and participants.

UK Emissions Trading Scheme main scheme installations must surrender allowances to cover their CO2 emissions on an annual basis, with one allowance equal to one tonne of CO2 equivalent. Free allocation is a mechanism to mitigate undesired outcomes of this process, notably carbon leakage.

The delivery of allowances that accurately accounts for the annual change in activity of installations is fundamental to the process – Scottish participants were the recipients of nearly 3 million allowances (3 million tonnes of CO2 equivalent) in 2023 and this has significant monetary value, in the region of £160m. The cost of allowances can vary with the Emissions Trading Scheme market led system. SEPA reviews all reports on an annual basis, and through our work we have corrected errors to ensure accurate reporting and that the correct number of allowances are delivered. (L Bunten)

Work to re-configure SEPA’s Aberdeen laboratory completed

SEPA’s Aberdeen laboratory re-configuration work has completed successfully, and the laboratory is in the process of being re-commissioned. This will allow us to analyse and report on bathing water samples from the start of the coming bathing water season; reinstate a suite of water quality chemical tests; deliver our field monitoring and waste analysis. The project's success has been down to a team approach by our staff and the support of other users of Inverdee House, including partner organisations NatureScot and JNCC. The changes to the laboratory will now help us use the same team ethos in generating environmental evidence, multi-skilling our scientists and increasing our resilience. (D Pirie)

SEPA and citizen science partnership

At the end of March, a new citizen science initiative began operating involving SEPA, Buglife and the Riverfly Monitoring Initiative, which is a network of citizen science volunteer groups with an interest in the water environment.

Trained volunteers record the presence or absence of river invertebrates (“riverflies”) to monitor the water quality of their local rivers. We have developed a standardised assessment method and a simple communication route via Buglife that the volunteers can use to identify if their monitoring results indicate a potential water quality issue.

The system is designed to maximise the value of the information that the citizen science groups collect and help maintain their enthusiasm. The information generated will add to our understanding of the condition of Scotland’s rivers and feed into our decisions about prioritising our environmental monitoring work. (D Pirie)

Grangemouth Regulatory Hub

The Grangemouth Future Industry Board brings together public sector partners to work together for long-term sustainable economic success for Scotland’s core manufacturing cluster. One of its workstreams to support a just transition of the Grangemouth industrial cluster is the Grangemouth Regulatory Hub, led by SEPA. Progressive regulation has a fundamental role to play in reducing regulatory barriers and facilitating innovation and rapid implementation of solutions.

A key joint project with Falkirk Council and the Health and Safety Executive is to pilot an Outcome Based Collaborative Regulatory approach. It aims to address the challenge of understanding how regulation can contribute to achieving net zero, a circular economy and be ‘innovation friendly’ whilst maintaining high standards and levels of protection for communities and the environment. This project is made possible by a grant from the £12 million Regulators’ Pioneer Fund launched by the Department for Business, Energy and Industrial Strategy. The fund enables UK regulators and local authorities to help create a UK regulatory environment that unleashes innovation and makes the UK the best place to start and grow a business.

The Outcome Based Collaborative Regulatory approach is based on clear evidence from behavioural science. This evidence shows cooperative outcome focused approaches result in stronger, more favourable behaviours over prescriptive methods. Elements of this approach have been implemented in other regulatory regimes and have been shown to improve engagement between stakeholders in regulatory systems, increase regulatory efficiency and promote innovation. We will be working collaboratively with our regulatory partners, business, industry, communities and other stakeholders. The project will pilot this approach at a small number of sites to explore and test how this might improve regulatory efficiency, environmental protection and promote industry to innovate toward a net-zero economy.

Workshops have taken place during March with pilots due to commence in April. (L Bunten)

Water Environment Fund Annual Operating Plan update

In March 2024 the Water Environment Fund funded Garlogie project was shortlisted for Dam Removal Europe’s, Dam Removal Award 2023 and the ‘Stanktuary’ project, which at an early stage of development with very strong community engagement, was featured on ITV News.

We recently reported achievement of our Annual Operating Plan target: Increase in the length of rivers where fish movement is not restricted by man-made barriers, opening up 69km to migrating fish’.

Due to unforeseen issues we will now only meet part of the ambitious Annual Operating Plan target this year ‘improvement in the quality of Scottish rivers’ - Implementation of three river restoration projects. These projects involve a complex interaction between partners in a challenging environment for construction. Options to bring forward other projects were explored at pace but this has not been possible.

This year the Water Environment Fund’s programme of work has progressed 17 river restoration projects and 23 fish barrier projects. Two river restoration projects at the Levern and Leven (Phase 1) and two fish barrier projects at Gairlogie Dam and Crossmill Weir have completed ground works. (L Bunten)

Warn

SEPA issue record number of Flood Alerts and Warnings this autumn and winter

Our teams have issued a record number of regional Flood Alerts and local Flood Warnings to the public this winter.

A total of 720 messages have been sent since 1 September 2023, the highest number since SEPA introduced its Floodline service in March 2011. The previous record of 714 was set over autumn and winter 2015/2016.

This number reflects the intense flood warning activity undertaken by SEPA duty officers throughout this autumn and winter, and the extreme weather and flood events people in Scotland have experienced, highlighted in the previous two reports to the Agency Board.

This is a powerful warning for what is in store for us, with climate change bringing wetter winters, more intense rainfall, and more impacts along the coast due to sea level rise. This has been a prominent message within our media campaign, urging people to sign up to our free Floodline service. (D Pirie)

Scottish Television and SEPA flood partnership

Last October we promoted our flood services for the first time on television in partnership with Scottish Television. Our advert including weather lead Sean Batty, encouraged everyone to be prepared for flooding over winter.

Of course, we know that it isn't just over the festive winter period that flooding can affect our communities, with our campaign entering its next phase in February and March.

The advert's run last year had some incredible reach, with us having 79 TV slots over the period and reaching 80,542 adults across Scotland. We had 2,645 new users of the Floodline website and from October-January, our flooding page was the most viewed section of the SEPA website. (D Pirie)

In addition to our performance report, this report represents a strategic summary of the Agency’s delivery activity across the period.

Nicole Paterson
Chief Executive
April 2024