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Board Meeting - 25 February 2025

The one hundred and ninety-sixth meeting of the Agency Board took place on Tuesday 25 February 2025 via Microsoft Teams.

Minutes

Clerk to the Board opening statement

The Clerk to the Board reminded Board Members that the primary method for communication for SEPA business should be through SEPA email addresses and the use of the Diligent Messenger application. This is to ensure information is sent via the most secure channel and the integrity of our data is not compromised.

1. Chair’s Opening Remarks

The Deputy Chair welcomed everyone to the meeting including Chris Dailly, deputising for Lin Bunten, Chief Operating Officer Regulation Business and Environment (RBE). No members of the public were in attendance.

2. Apologies for Absence

Apologies were received from Sue Paterson and Lin Bunten.

3. Order of Business

The Chief Officer, People, Workspaces and Development (PWD) requested an AOB on wellbeing to be covered under item 7.

4. Declarations of Interest

No declarations of interest were made.

5. Decision on taking business in private

The Clerk to the Board informed the Board of the purpose of the items proposed to be taken in private as below:

• Item 19 - Draft Annual Budget is currently in draft form.
• Item 20 - Quarter 3 Financial Monitoring Report is for more detailed discussion in private, as per previous Board meetings.
• Item 21.1 - RPI Inflationary increase to charging scheme is to be submitted to Scottish Government for noting following the Agency Board meeting.
• Item 21.2 - Integrated Authorisation Framework (IAF) Charges is awaiting Scottish Government Ministerial approval.

6. Minutes for approval

The minute of the Agency Board meeting of 26 November 2024 was approved as an accurate record.

7. Any other business

The Chief Officer PWD advised that as part of SEPA’s wider People strategy, a Wellbeing strategy is due to be launched. To mark this, a series of employee wellbeing drop-in sessions will take place throughout May 2025. Board Members were asked to submit recommendations from within their networks of potential motivational speakers across the wellbeing spectrum.

8. Chair and Board Report

SEPA 24-25/041

The Deputy Chair introduced the report which included Board Member activity since the last Board Meeting on 26 November 2024. The Deputy Chair commented on the value of visibility of the Chair’s regular meetings. 

Board Member Champions provided brief verbal updates on their respective Board Champion Group activities.

The Board noted the update.

9. Board Work Programme

The Clerk to the Board gave an update on the following:

• Training - members of the Board support team have been granted access to Board Member training records on the SEPA training platform, Discover. This allows for timely prompts of annual mandatory training modules and ease of accessing information relevant to the annual appraisal cycle.
• SEPA is implementing a new cyber training process via BoxPhish, which will involve monthly bitesize learning. Information on how Board members are to engage in this will follow.
• Board Strategy Day 4 March 2025 - prior to the strategy session, members of the People & Resources Committee (PRC) will attend a site visit to Advanced Clothing Solutions. The tour aligns with the committee’s revised remit with a focus on sustainability.
• Board Strategy session 30 January 2025 - the Chair-approved note of the Board strategy session which took place in Aberdeen will be circulated to Board members for information on Diligent Boards.

10. Reports

10.1 Chief Executive’s Report

SEPA 24-25/042

The Chief Executive introduced the report and drew attention to the following updates:

• The Chief Executive and Chief Operating Officer Data, Evidence and Innovation (DEI) attended a briefing with the First Minister to provide assurance on Scotland’s flood resilience.
• SEPA continues to improve the status of Scotland’s water to unprecedented levels as confirmed in the 2023 classification results in the state of the water environment report.
• SEPA is committed to investing in our people and has recently launched a ‘Management Means’ programme to our ‘Band B’ managers to develop capabilities.
• Colleagues in our Finance, Modernisation and Digital, and Governance, Performance and Engagement portfolios have been nominated for several national awards.

Members asked questions relating to the following sections of the report:

Flood Service – in response to a question on whether SEPA is concerned about rising pressures on the service, the Chief Executive noted that metrics show last year we issued our greatest number of flood alerts and warnings to date and recognise there is likely to be an increase in flooding activity due to climate change. The Chief Operating Officer DEI confirmed a flood service review is underway which aims to highlight areas requiring improvement; this work is supported by Board Champions.

A question was raised on the impact on the rest of the organisation of including a further 34 employees in the 24/7 flood warning staffing rotas. The Chief Operating Officer DEI advised part of the reason for undertaking the flood services review is to develop a sustainable solution from a people perspective, and that training additional employees will help build resilience and capability in the roster.

It was questioned how the return on investment (ROI) of the service is being measured, to which the Chief Executive confirmed a benefits tracker is being developed which will measure changes in efficiency, effectiveness and cost savings.

Waste statistics – a query was raised around the reduction of household waste landfilled noted from the 2023 statistics, and whether SEPA has confidence the waste is being disposed of correctly and not exported to other countries. The Chief Executive confirmed SEPA’s duties here with reference to transfrontier shipment of waste.

The Board noted the report.

10.2 Quarter 3 Performance Report

SEPA 24-25/043

The Chief Officer Governance, Performance and Engagement (GPE) introduced the report, noting that SEPA is currently on track to achieve 11 of the 12 performance measures. The one measure which is partially achieving, around NetZero (AOP Measure 2), has had an in-depth review undertaken.

Members asked questions relating to the following sections of the report:

NetZero (AOP Measure 2) - it was questioned whether SEPA has the right metrics and baseline for this measure, and concern was raised on the reputational risk if the target is not met (to reduce all our greenhouse gas emissions to at least net zero by 2035). The Chief Officer GPE informed the Board that a refreshed NetZero Routemap will follow with the new Annual Operating Plan with reviewed measures and reference to a new Fleet strategy and work on SEPA Estate. It was noted that options are also being considered on the use of the Sir John Murray survey vessel as marine fuel is a significant source of greenhouse gas emissions. SEPA will also consider alignment with partner environmental bodies.

Water Environment (AOP Measure 5) - a question was asked around the 16 water bodies which were downgraded to less than good condition in relation to what SEPA understands to be the cause of this trend. 

The Chief Operating Officer DEI will provide a written response outlining the reasons for these water bodies being downgraded. 

Action (831): Chief Operating Officer DEI

Business Environmental Performance (AOP Measure 7) - a request was made for a breakdown of the 81 illegal sites with interventions concluded year to date, including details of the number of high-risk sites identified and the interventions/enforcement actions. 

Action (832): Head of Function (Environmental Performance)

The consequences of missing the deadline for completing statutory permit reviews as detailed in KPI 04 was queried. The Chief Officer GPE confirmed that a review is underway within this area and a further update will be included in the Q4 performance report.

Organisational KPIs - it was queried why the Net Promoter Score is down from 69% to 52% (KPI 15) and why the only external stakeholder noted here is the Scottish Parliament.  The Chief Officer GPE advised reasons for the score are unclear, however a reputational tracker and customer experience survey are being developed which should aid our understanding and will be included in the AOP for 2025-2026. Stakeholders are also to be widened out via a new Stakeholder engagement strategy.

A question was asked about the figures included within KPI 12 (Employee Voluntary Turnover Rate). The Chief Officer PWD confirmed SEPA’s current benchmark is 8%, the average public sector turnover, but will be reviewed once more SEPA data can be monitored over time and used to establish where attrition is coming from to agree a more specific target.

It was noted that for KPI 25, the KPI and target timelines do not match; time to recruit from application to offer, or time from when offer is made to start date. The Chief Officer PWD committed to reviewing this KPI.

Action (833): Chief Officer GPE/Chief Officer PWD

With regards to KPI 23, clarity was sought on the definition of a ‘security breach.’ A definition will be provided in future reports, so it is clear what is covered.

Action (834): Chief Officer GPE/Chief Officer FMD

Discussion took place around the ask of the Board of this paper; approval or discussion and noting. The Clerk to the Board will look to incorporate clearer asks of the Board with each paper for future meetings.

The Board approved the report.

10.3 Quarter 3 Financial Monitoring Report

SEPA 24-25/044

The Chief Officer Finance, Modernisation and Digital (FMD) introduced the report noting that the abridged version of the paper is presented to the Board to allow for public discussion. A more detailed paper will be discussed later in the private Agency Board session as is appropriate. 

The report shows SEPA is forecasting to deliver a balanced budget to the year end with one off savings being utilised for Transformation and a capital summary showing forecast spend in line with a budget of £5.4m.

The Board noted the report for publication. 

11. Draft Annual Operating Plan/Business Plan 2025-2026

SEPA 24-25/045

The Chief Officer GPE introduced the report sharing a status update and overview of the revised approach to developing the Annual Operating Plan (AOP) for 2025-2026 which ties into SEPA’s agreed 3-year Corporate Plan. The process has included resource planning across all portfolios and connecting our finances, performance measures and Key Performance Indicators (KPIs). 

The final plan will be presented at the Agency Board meeting on 29 April 2025 and the Board will continue to be engaged on the development of the plan. 

Feedback provided included the need for more SMART and outcome based measures and the use of plain English to ensure the plan is accessible, and clear to external stakeholders. It was also suggested that key deliverables in Appendix 1 could be linked more strategically and with focus on cultural change pieces. 

It was agreed the next Performance Board Champions group meeting scheduled for 26 March 2025 will be brought forward to allow further Board member input and engagement. 

The Board noted the progress of the Draft Annual Operating Plan/Business Plan 2025-2026.

12. Equality Mainstreaming and Outcomes Report 2025 and People Information Report 2025

SEPA 24-25/046

The Chief Officer GPE introduced the report and thanked members of the People and Resources Committee (PRC) for their feedback after it was shared with the Committee in January 2025. It was noted that work continues to develop our data strategy which will produce more insightful data for inclusion in future reports. Work is also underway to target, with the Trade Union, specific audiences and demographics during recruitment exercises.

Concerns were raised by Board members around the diversity of the imagery and the language used within the report. The Chief Officer GPE will review and recirculate the report to the Board prior to its publication.

Action (835) Chief Officer GPE

The Board approved the report subject to the above points being addressed, and the report being re-circulated to the Board before publication.

13. Consultation Digest: Proposed technical amendment to the Environmental Regulations (Scotland) Charging Scheme 2018

SEPA 24-25/047

The Chief Officer FMD introduced the report thanking Legal, Finance and RBE colleagues for their contributions. It was noted that SEPA had engaged with external stakeholders and that the consultation was published on several online channels. SEPA received two responses with no objections. 

In response to a comment on the low number of responses and whether this was due to technical language used, the Chief Executive agreed that language should be kept simple to ensure it is easily understood by all external stakeholders. The Chief Officer GPE added that the new Head of Engagement and Insights is undertaking a review of SEPA’s Consultation Hub to ensure the highest level of accessibility. 

The Board approved the draft Consultation Digest for publication on the SEPA website.

14. SEPA and Board Governance - Official Documents and Procedures

SEPA 24-25/048

The Clerk to the Board introduced the report highlighting the amendments and proposals presented for approval. 

A question was asked as to whether SEPA takes a risk-based approach to the reviewing of Board Governance documents or is it a statutory requirement, to which the Clerk to the Board confirmed that a risk-based approach is taken, and that the degree of the review differs depending on the driver for the review.

The Board approved the recommendations in the report. 

15. Agency Board and Committee forward planner

SEPA 24-25/049

The Clerk to the Board introduced the report advising that the Board meeting schedule was previously approved by the Board in September 2024. Since then, new dates for Board information sessions and site visits have been added and there are some amendments to the dates previously agreed to align better with the Audit Scotland timetable for the Annual Report and Accounts and the timing of the approval of the draft Budget for 2026-2027.

The Board approved the planner to March 2026.

16. Board Committee Reports

16.1 Audit Risk and Assurance Committee (ARAC) meeting 10 December 2024

The Chair of ARAC advised that the committee has been producing valuable action items for progressing, with reference to the Chair-approved minute of the December 2024 meeting circulated to Board members. It was highlighted that Action 521 is still required to be fully implemented.

The Board noted the update.

17. Action Note

The Clerk to the Board summarised the open actions detailing that Action 830 has been updated in the action note and that dates are being discussed to close Action 763.

All other actions are proposed closed (810, 820, 821, 822, 823, 824, 825, 826, 827, 828, 829, 831) as outlined in the action note provided to members in advance of the meeting.

18. Date of Next Meeting

The date of the next meeting is 29 April 2025 in the Boardroom, Angus Smith Building, 6 Parklands Avenue, Eurocentral, Holytown, ML1 4WQ.

The following items were considered by the Board members and Officers in private session.

19. Draft Annual Budget

20. Quarter 3 Financial Monitoring Report

21. Charging Schemes

21.1 RPI Inflationary increase to charging scheme

21.2 For Homologation - Integrated Authorisation Framework (IAF) Charges

22. Chair’s closing remarks and opportunity for Board members’ feedback