Back to Annual Report and Accounts 2024 - 2025

Annual Report and Accounts 2024 - 2025 Performance report - overview

This information is also available in the Annual Report and Accounts 2024/25 document (PDF, 9.5 MB). 

Who we are and what we do

We are the Scottish Environment Protection Agency (SEPA), Scotland’s principal environmental regulator.  

We are a non-departmental public body and independent advisor on the environment, with approximately 1,250 people working at locations across Scotland. We are accountable to Scottish Ministers and the Scottish Parliament. 

We have an Agency Board (the Board), two committees and a Corporate Leadership Team (CLT). The Chief Executive is an executive member of the Board with the role of adviser and is accountable to the Board. The CLT is responsible for the delivery of SEPA’s services, including the implementation of the high-level strategy of the organisation as set by the Board. The CLT reports directly to the Chief Executive, who is also the Accountable Officer for SEPA.

We are directed by the Programme for Government, Scottish Government priorities and policies, and the National Planning Framework. Our work is also guided by our contributions to delivering key national strategies.

Our Corporate Plan sets out our strategic priorities across five themes and our Annual Operating Plan details where we will focus our work.  

Our plan on a page

Performance summary

2024/2025 was the first year of our Corporate Plan for 2024-27. Our Annual Operating Plan 2024/25 set out the following delivery priorities across the key areas of our work. Our performance is summarised below with further detail included in the performance analysis section. 

Table 1: Performance summary 2024/25

	Priority	Measure	2024/25 performance	Status
1.	Net zero	Annual greenhouse gas emissions in the Scottish Pollutant Release Inventory - Reducing	13.5% reduction	Achieved
2.	Net zero	Annual reports of greenhouse gas emission by SEPA - Reducing	0.09% increase	Not achieved
3.	Climate resilience	Number of flood warnings and alerts issued by SEPA - Maintaining	662 flood warnings and alerts issued	Achieved
4.	Climate resilience	Proportion of developments approved in accordance with SEPA’s advice on flood risk – Maintaining	98.4% resolved	Achieved
5.	Water environment	Classification of water bodies across Scotland - Increasing	Increase to 67.9% from 67.1% in 2022	Achieved
6.	Resource efficiency	Rates of waste to landfill in annual Scottish household waste data - Reducing	14.8% reduction of household landfilled waste	Achieved
7.	Business environmental performance	Number of successful interventions per year – Increasing	Approximately 92% increase from previous year	Achieved
8.	Our organisation	Percentage of customer complaints responded to within statutory timescales – Maintaining	89.5% against 85% target	Achieved
9.	Our organisation	Number of vehicles in our fleet to electric and enhancing our EV charger facilities - Increasing	25 electric vehicles from 22 baseline	Achieved
10.	Our organisation	Percentage of Freedom of Information (FOI) requests and Environmental Information Requests (EIRs) responded to within statutory timescales - Increasing	94.8% against 90% target	Achieved
11.	Our organisation	Percentage efficiency savings – Maintaining	5.6% against 3% target	Achieved
12.	Our organisation	Percentage of invoices paid within 10 days – Maintaining	90.65% against 90% target	Achieved

We are proud to play our part in team Scotland, working together to make a difference. Measures one, five and six are national outcomes for Scotland and we play a contributing role. 

The trajectory of measure four has been changed to maintaining. It was previously set to increasing against a performance of 99% in 2023/24 in error.

Delivering for Scotland 2024/25 – a year of progress

Net Zero: In April 2024, we launched our Net Zero SEPA Routemap, setting our ambition to reduce our own greenhouse gas emissions to net zero by 2035 and outlining the actions we will take over the next two years.

• 13.5% decrease in greenhouse gas emissions in 2023 Scottish Pollutant Release Inventory (SPRI) data.
• 30% reduction in our private vehicle emissions.

Climate resilience: We understand the devastating impacts flooding can have on people, communities, the environment and the economy. We used an innovative map-based platform to engage on spatial data and gathered evidence from the people of Scotland to review the Potentially Vulnerable Areas (PVAs) and Local Plan Districts for the next cycle of flood risk management planning. We published the revised PVAs in December 2024. The Local Plan Districts were unchanged and can be viewed on our website.

• Flooding advice given on 1,478 planning applications.
• 25 water scarcity reports issued.
• Issued: 289 flood alerts, 370 flood warnings and3 severe flood warnings.

Water environment: We worked on 44 river restoration projects to create better environments for wildlife and people and mitigate the impacts of flooding. On the River Leven in Fife, in partnership with Fife Council and Fife Coast and Countryside Trust, two barriers to fish migration were removed opening up 165km of the catchment to migratory fish. The work is contributing to the River Leven meeting its objectives under the River Basin Management Plan for Scotland.

• 86% of Scotland's water environment is good or better condition for water quality.
• Reopened 170km to migratory fish.
• £4.4 million of river restoration work funded through the Water Environment Fund.

Resource efficiency: In 2024/25, our teams worked to support the development and introduction of a Digital Waste Tracking Service. This service aims to make it easier for service users to comply with waste regulations, make it harder for criminals to move waste under the radar, and make it easier for us to target our regulatory efforts and our partners to identify circular economy opportunities.

• 14.8% reduction of household waste landfilled.
• 7 fixed monetary penalties issued.

Business environmental performance: The new statutory Code of Practice for Materials Facilities (recyclate bulking and sorting facilities) required the Agency to change the way we regulate this area. The new Code sets out more extensive sampling and reporting requirements for operators, that will align with the introduction of a packaging extended producer responsibility system. During 2024/25, we produced extra guidance to help operators comply. As part of the implementation, we reviewed and are consulting on a revised charging scheme, based on our revised regulatory approach.

• 92% increase in interventions used to tackle environmental crime.
• 104 illegal sites closed.

Our organisation and transformation: We published more public register records in relation to authorisations for waste, water and all industrial activities, delivering improved digital services and making high quality environmental data and insights available and accessible to everyone.

• 94.8% response rate for Freedom of Information and Environmental Information requests.
• 5.6% efficiency savings delivered.

Review of the year: 2024/25

April 2024

We launched our new Annual Operating Plan for 2024/25 which set out what colleagues across SEPA would deliver in the year. These values unite us as a connected community, allowing us to work together towards a shared vision and purpose.

May 2024

We issued the first water scarcity report of the season with early warnings in place for the Northwest Highlands and Inner Hebrides. Water Scarcity reports are published until September to provide vital information on Scotland’s water resources.

June 2024

Our Aberdeen laboratory was reaccredited as ISO 17025 following a lab redesign. This important work was completed in time for the 2024 bathing water season to allow SEPA to provide information to the public.  

July 2024

Our digital application service was expanded to include the registration of new discharges from private sewage treatment systems (PSTS), like septic tanks.  

August 2024

Working with UNISON, we developed a new domestic abuse and gender-based violence policy and comprehensive training. This aims to equip all colleagues with the necessary tools, knowledge and support to recognise and address these issues effectively, fostering a safe and inclusive work environment.

September 2024

We deployed wave buoys as part of our flood risk management capabilities. The data collected by the wave buoys improves our modelling systems and helps refine coastal flood forecasting. This means we can provide better information to the public and partners. 

October 2024

SEPA led the development of a tool that identifies and analyses patterns and trends using inspection data as part of The Shipment of Waste Enforcement Actions Project (SWEAP). 

November 2024

We launched our People Strategy, setting out our vision to enhance the people offering and align our behavioural expectations with our Values. The strategy will set out our commitments around key themes such as well-being, performance and career development.

December 2024

We completed our largest coastal survey programme for many years. This included collecting samples to assess the seabed and seawater near 23 marine fish farms and collecting underwater imagery to help map marine features. This data will help to streamline application assessment and support compliance verification.  

January 2025

We transitioned to a new service model in our Customer Hub. This involved a transition to an automated out of hours service that directly links critical calls to our duty officers to provide the appropriate response and offers a wider range of communication options for customers who want to get in touch.

February 2025

We were recognised by the Scottish Parliament as a key partner in an award-winning project led by Falkirk Council to restore the former Kinneil Kerse landfill site. The 375-acre site posed various environmental risks upon its closure, including pollution and harm to nearby water sources. We worked closely with partners as part of the £2.6 million restoration project to transform a potential hazard to a beautiful greenspace that now offsets 4.4 tonnes of carbon each year.

March 2025

SEPA launched a consultation on a new Environmental Performance Assessment Scheme. This will enable the environmental performance of different types of regulated activities to be accessible to the public at any point in time. It will support quicker action to address issues that pose an environmental risk on a continuous basis following compliance checks.

Our highlights

Net zero

Net zero through restoration

The River Leven Restoration Project, funded by the Water Environment Fund, reached successful completion in October 2024. We worked with partners - Fife Council, Fife Coast and Countryside Trust and CBEC Eco–Engineering (who like us, all have net zero ambitions), carefully designing the project with a strong emphasis on minimising carbon impact and promoting environmental sustainability.

The procurement process we followed explicitly reflected our net zero priorities, and close collaboration ensured these ambitions were embedded throughout construction. A key example of the project’s low-carbon approach is the nature rock ramp installed at Kirkland Dam to enhance fish passage. This structure was designed without the use of concrete—known for its high carbon footprint—and constructed using locally sourced materials from within an eight-mile radius.

Beyond the restoration deliverables and net zero considerations, the project also delivered outcomes which go beyond the traditional expectations. These include climate adaptations and biodiversity improvements through the creation of new habitats, reconnecting floodplain channels and wetland planting, and collaborating with partners to deliver active travel corridors along and across the river. It was an honour for this project to host the launch of Scotland’s 4th National Adaptation Plan (SNAP4) as a result of its exemplary vision, design and delivery.

Climate resilience

Groundbreaking Satellite Emergency Mapping Service

We formally launched the Satellite Emergency Mapping Service (SEMS) in September 2024 with partners from the UK Space Agency, Scottish Fire and Rescue Service, Police Scotland and the University of Stirling. This innovative service will revolutionise the way we protect people and communities across Scotland.  

Utilising advanced satellite imaging technology, our service delivers real-time, high-resolution data and insights directly to emergency responders during environmental emergencies such as floods, landslides, wildfires, chemical or industrial incidents or oil spills. This vital information will enhance decision-making capabilities and enable faster, more efficient response efforts when disasters strike. This gives a significant boost to Scotland’s resilience against natural and human-made disasters. 

As a category one responder, we have a duty to carry out risk assessments and plan for emergencies, which this service will help with. We worked collaboratively with others across sectors to safeguard our environment, who will also benefit from the sharing of this information, making it a cost effective resource across Scotland.  

We led this initiative, which will save lives, protect critical infrastructure, and mitigate environmental damages during emergencies. With environmental crises becoming more frequent due to climate change, SEMS will become an indispensable tool in Scotland's fight against these challenges.

Water resilience

Scotland’s climate is changing and across the seasons, climate change is likely to bring more uncertainty. If dry conditions persist for a period of time, there becomes an urgency to act to protect the environment and water resources for critical activities that support our communities. 

We have a key role to protect the water environment. We are responsible for the forecasting, monitoring and reporting of the situation facing Scotland's water resources and produce regular water scarcity reports between May and September each year.  

Using the best available scientific evidence, and information provided to us by the communities of Scotland, we determine when to take action to restrict water abstractions. This year we used a new service to send messages about water scarcity to licenced abstractors.  

In the National Water Scarcity Plan, we set out how we will work with water users (authorised abstractors and recreational users) and key organisations, such as Scottish Water, to manage water resources during periods of low rainfall. We must balance water use by licenced abstractors with protecting the water environment.

We issued our first water scarcity alerts of 2024, for the Firth of Forth and Firth of Tay areas, on 1 August. Working with other organisations, we raise awareness of potential impacts on key sectors and help them to take the right steps to deal with low water levels. We do this to protect water resources for critical activities that support Scotland’s communities, reduce impacts on ecology, agriculture and industry. 

Water environment

Improving our salmon population through hydropower

We worked in partnership with operators Drax and the Galloway Fisheries Trust to improve fish migration on the Galloway Hydro scheme as part of the Controlled Activities (Scotland) Regulations (CAR) licence review in the (Solway) Dee catchment. This work is helping to balance the benefits from renewable energy generation with protecting river ecology. 
Following successful trials, increased water flow in the lower part of the catchment will now help Atlantic salmon make their vital journey upstream. This should help give this iconic, endangered species, the best possible chance of thriving in the Dee catchment. 

Gillian Martin, Acting Cabinet Secretary for Net Zero and Energy, said: “I welcome the collaborative approach taken by SEPA, Galloway Fisheries Trust and Drax to improve fish migration at the Galloway Hydro Scheme. This work will support the delivery of Scotland’s third River Basin Management Plan and our Wild Salmon Strategy to build resilience in our water environment and to protect and restore populations of wild Atlantic salmon in Scotland.”  

This work is an example of the work outlined in our Corporate Plan to protect and improve our Water Environment. It contributes to our health and quality of life, supports a rich diversity of wildlife and is an important part of our economy. This work has been a collaborative effort across a range of teams.

Resource efficiency

National Litter and Flytipping Strategy 

The National Litter and Flytipping Strategy sets out a refreshed approach to tackling litter and flytipping in Scotland. SEPA is leading on the delivery of two key projects looking at early interventions to deter and disrupt flytippers and improving the effectiveness of enforcement of flytipping offences. 

Our digital interventions work identified between 50% to 60% of businesses advertising waste removal services on social media are breaking the law by operating without holding the required waste carrier registration – and people handing over their waste may be contributing to flytipping and other waste crime.

Working closely with partner agencies, this work has led to the removal of 28 social media profiles and their associated posts, protecting householders from inadvertently giving their waste and their money to criminals. We are also pursuing further overt communications with businesses and members of the public to disrupt and deter illegal activities.

We have also been trialling a partnership enforcement model for flytipping. In this model, local authorities take forward an initial investigation, before referring relevant cases to us to consider the potential for further  enforcement action. Through this work, we have served six Variable Monetary Penalties on offenders in the past 12 months, totalling over £21,000 in penalties and over £6,200 in costs payable to SEPA. Around half of all local authorities have been engaged with the project so far.

Business environmental performance

Scotland’s air quality

With the aim of having the best air quality in Europe, our work has helped Scotland meet its air quality objectives. We work in partnership with Scotland's local authorities to deliver measures which contribute to achieving air quality objectives, which are set to protect human health and the environment. 

For the last reporting year, legal air quality objectives for air pollutants were met across the country. The number of Air Quality Management Areas (AQMA) in Scotland has reduced to 16 with a further seven revocations underway. An AQMA is an area identified by a local authority where the legal air quality requirements are not being met.

Scotland's four Low Emission Zones (LEZs) were introduced to reduce emissions of air pollution from older and more polluting vehicles. We have been key in supporting the delivery and performance assessment of the LEZs by providing detailed data collection, modelling and analysis. Part of the work we produced shows that the Glasgow LEZ has improved air quality and reduced personal exposure to air pollution across the city.

We supported clean air citizen scientists across Scotland. In our latest work, we worked with pupils and teachers from St Brendan’s Primary and Muirhouse Primary in Motherwell, North Lanarkshire Council. Understanding the importance of clean air, in this collaborative project we raised awareness of local air quality and supported safer streets, active travel and anti-idling initiatives around the school gates. We helped young children proactively lead change in their communities. 

Meeting the legal air quality objectives means Scotland’s environment and communities are breathing cleaner air, being protected from harm and we are improving the environment for future generations.

Our organisation, transformation and people

Our passionately purposeful people 

All of our people have a genuine commitment to safeguard and enhance our precious environment. Through our People Strategy we support people to be their best and make the biggest impact. We are pleased that this has been recognised externally with colleagues receiving the following accolades.

Our Finance, Modernisation and Digital colleagues were shortlisted for two categories at the Scottish Chief Financial Officer Awards. 

We are delighted that Angela Milloy, our Chief Officer; Finance, Modernisation and Digital won the award for Chief Financial Officer of a Not-for-profit Organisation.

We also won two awards at the 2025 eCase Freedom of Information (FOI) Awards by Scottish Information Commissioner, David Hamilton. The awards celebrate the best FOI practice from across the UK public sector.

Our Senior Information Officer Alicia Jones was a joint winner for Practitioner of the Year, and the Access to Information team were also presented with a Highly Commended award in the Team of the Year category. This was awarded for embodying and embedding the values of openness and transparency, by significantly improving service or delivering an exemplary service.  

The awards and recognition are testament to our hard-working people, supporting the Agency as we focus on organisational sustainability, providing best value as a public body and maintaining our statutory performance in challenging times.

Financial highlights

Review of financial performance and funding

The statement of comprehensive net expenditure (see table 26) of the audited financial statements shows total gross expenditure for the year ended 31 March 2025 was £105 million (m) (prior year 97m).

Figure 7 on page 26 of the PDF version of this report provides more information on the make-up of our total gross expenditure.

Expenditure

Staff costs amounted to £73.1 million (prior year: £69.2 million), comprising 70% of gross expenditure (see note 4: staff costs). These totals include year-end pension cost adjustments as estimated by the actuary, Hymans Robertson. The increase in staff costs is primarily attributable to pay inflation and strategic investments in a voluntary severance scheme intended to support organisational transformation and achieve future recurring savings. These factors were partially offset by a reduction in employer pension contributions.

Other operating costs of £25.7m (prior year £22.6m) accounted for 25% of our gross expenditure (see note 5: other reporting charges), includes expenditure incurred in the running and maintenance of our systems and estate as well as our investment in key environmental projects and initiatives. The increase in 2024/25 is primarily due to the ongoing review of services as part of ongoing business transformation. Additionally, there are increased partnership contribution payments, licence costs, property maintenance expenses, and electricity charges.

Depreciation and impairment costs totalled £6.1m, up from £5.2m the previous year (see note 9: non-current assets). This includes the annual depreciation cost of £6m (prior year £5.2m) and impairments of £0.1m.  

Financing costs (see note 7) includes interest on leases, which amounted to £0.1m (prior year £0.1m).

Investment in strategic objectives

Investing in our strategic objectives ensures we deliver on our statutory purpose to protect and improve the environment in ways that, as far as possible, also contribute to improving health and well-being and achieving sustainable economic growth.  

Figure 8 on page 27 of the PDF version of this report shows how the gross expenditure incurred in year was invested in the five strategic priorities outlined in our Corporate Plan 2024/27. 

Our funding

Of our total funding, £55.4m (previously £51.4m) came from fees and charges, while £1.2m (£0.3m prior year) was from Finance income—including a £1m pension scheme return (£0.1m last year) and £0.2m (£0.2m prior year) was earned as bank interest.

The balance of £48.4m (prior year £45.5m) was funded by Scottish Government. As this is considered financing rather than income, it is not included in the statement of comprehensive net expenditure (see table 26 on page 113). Figure 9 on page 28 of the PDF version of this report provides information on the source of our funding over the last 5 years.

We received £53m income (prior year £48.9m) from our charging regimes to recover the relevant costs of our regulatory activities. Following a review of Transfrontier Shipment of Waste and Reservoirs, charges were increased. The increase of £4.1m from 2023/24 to 2024/25 includes these changes as well as an annual increase of 8.86% (£3.9m), which was applied to most schemes to recover increased costs driven by inflationary pressures. 

Other income received was £2.4m (prior year £2.5m). This was mainly derived from grants and recharges (see note 2: income from contracts and note 3: other income).   

Finance income was £1.2m (prior year £0.3m). This includes the net return on pension scheme assets of £1m (prior year £0.1m) as provided by Hymans Robertson, along with bank interest received of £0.2m (prior year £0.2m). 

Scottish Government funding increased to £48.4 million from £45.5 million in the previous year. The primary drivers for this rise were pay pressures, river basin management planning, higher depreciation and impairment costs, as well as year-end adjustments related to pensions and provisions. 

Statement of financial position

The statement of financial position (see table 27) shows net assets of £29.3m as of 31 March 2025, down from £48.9m at 31 March 2024. This reduction is mainly due to a change in the estimated pension scheme valuation, from a £21.5m surplus in March 2024 to £0 in March 2025 (see note 17: IAS 19 - pension and asset liabilities).

In year we received £5.5m in capital funds from the Scottish Government; we invested this in our assets. Spend covered digital transformation, the upgrade of our hydrometric network, the purchase of two gas chromatographers, the continuation of SEPA’s transition to a zero emission fleet by 2030 with the addition of more electric vehicles and the replacement of end-of-life plant and equipment (see note 9: non-current assets).

Our key risks

To ensure we successfully achieve our Corporate Plan objectives, it is important we consider and mitigate the risks and challenges to the effective delivery of our key services.

In 2024/25, SEPA undertook a strategic review of its risk management approach to ensure it remains fit for purpose in a dynamic and evolving operating environment. This review led to the development of a refreshed framework grounded in a set of guiding principles and supported by a dual-register system:

• Operational Risk Registers: Maintained at service level to manage day-to-day risks.
• Principal Risk Register: Captures strategic-level risks and is owned by the Corporate Leadership Team and Chief Executive.

Risk management is being embedded across the organisation through quarterly reviews, scenario planning, and integration into business planning and performance reporting. We also conduct regular horizon scanning to identify emerging threats and opportunities. This approach ensures that risk is managed proactively and also used as a tool for strategic decision-making.

A key enhancement was the articulation of our risk appetite—the level and type of risk SEPA is willing to accept in pursuit of its objectives. These appetite statements are aligned to each principal risk and guide our response strategies and resource allocation.

More information on our approach to risk management is contained in our governance statement.

Planned improvements

Looking ahead, SEPA will continue to mature its risk management approach through the following actions:

• Embed risk management into strategic-level planning and decision-making.
• Develop a digital risk dashboard to enhance visibility and reporting capability.
• Strengthen risk culture through training, leadership engagement and clearer accountability.
• Refine escalation protocols to ensure timely and proportionate responses to emerging risks.

The key risks below are grouped by category and reflect the risks that have been defined in our principal risk register, which is owned and managed by members of our Corporate Leadership Team and the Chief Executive Officer. 

Table 2: Key risks identified

Risk category	Description	Risk appetite	Mitigation	Planned improvements
Strategy	In the continually changing social and political landscape, it is important that our strategic direction is focused on our statutory duties and where we can make a measurable difference.	Open	Early engagement with Scottish Government; scenario planning; regular policy horizon scanning.	Multi-year transformation programme; and future focused strategies and frameworks for data, evidence, planning and performance.
Policy and legal	Our ability to comply with the full scope of regulation, legislation and law across areas like health and safety and the environment remains a challenge.	Cautious	Policy, procedures and training; risk-based prioritisation of working sites; and engagement with the Scottish Government.	Improvements to policy, procedures, training and reporting tools.
Financial	Public sector reform, new duties or changes in scope to existing duties without adequate additional funding, can have an adverse effect on SEPA’s operations and delivery of strategic outcomes and objectives.	Open	Planning and budgeting alignment; prioritisation; liaison with Scottish Government.	Adjustment of financial planning in response to changes in duties and powers.
Cyber and data	Cyber-attacks are increasing in sophistication, reach and impact, regularly targeting high profile businesses and government organisations. Cyber-attacks can result in data loss, disclosure of sensitive information, system failure and an increased risk of repeat attacks.	Cautious	Incident response plans; mandatory training; policy and procedures.	Continuous review and improvement of cyber plans; policies; procedures and training.
People	Our ability to recruit and retain the best talent requires us to have an effective recruitment strategy, career development opportunities and an attractive total reward package. This, as well as an ageing workforce and skills shortages at a national level, creates the potential for low colleague morale and high turnover rates.	Open	We have a fair, transparent and consistent selection and promotion process. We conduct regular benchmarking exercises and reviews of market conditions alongside annual pay review negotiations and agreements to ensure that we are consistently offering the market rates, benefits and development opportunities for new and current employees.	Our new People Strategy includes long-term objectives and measures that will help us to continually improve our knowledge of the skills and requirements of the organisation. We will introduce talent mapping, skills gap analysis, capacity analysis and talent planning as well as other tools for developing skills within the organisation.
Operational	Innovative developments in regulated industry could outpace SEPA’s ability to adapt to the changing environment.	Open	We currently monitor and track workload to ensure we have the skills and capacity required to deliver our annual operating strategy and budget which outlines delivery on operational objectives and how this will be delivered. Horizon scanning is utilised to give early warning of innovative developments.	Establish and operate a strategic investment posture for resources and capital across SEPA.

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Documents

• Annual Report and Accounts 2024/25 (PDF, 9.5 MB)
• Highlights of 2024/25 (PDF, 683 kB)

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