Performance report 2022-23

Our Chief Executive, Clare Pillman, offers her perspective on our performance over the year and we outline the purpose of our organisation, our new vision, mission, values, the key risks and issues we face, as well as explaining how we have managed delivery of our objectives this year.

It is important to recognise that this is the last report we will prepare aligned to our old Corporate Plan “Managing today’s natural resources for tomorrow’s generations”. Over the course of 2022/23 the Board and Executive Team have led the preparation of our new Corporate Plan, “Nature and People Thriving Together”, refreshing our vision, mission, values and well-being objectives. This plan was launched at the end of March 2023.

Chief Executive’s statement

This has been a year of transition, as we focused on the changes needed to meet our ambition to drive action to tackle the causes and impact of the nature and climate emergencies. We set the bar high as we developed our new Corporate Plan to 2030, challenging ourselves, and key partners, to articulate clearly the aspirations and expectations of NRW - so that collectively, we can amplify our impact in tackling the nature, climate, and pollution emergencies as part of our ambition to see a Wales where nature and people truly thrive together.

We have worked diligently to understand better our own capacity and capabilities. Over the last two years a considerable amount of work has been carried out with our colleagues in WG to review NRW’s baseline activities, building a strong collective understanding of the resources available to us to deliver our remit.

Working closely with WG policy and finance officials we have developed and agreed Service Level Agreements (SLA) in ten priority areas, namely flood risk management, NRW estate, pollution incident management, enforcement, water quality, enabling tree planting, freshwater monitoring, marine monitoring, terrestrial monitoring, the Water resources (Control of Agricultural Pollution) (Wales) Regulations. Each SLA details the resources required to allow us to deliver a level of service that meets both our statutory responsibilities and the objectives set out by WG. We recognise these do not cover all areas of our business and we will focus on developing further SLAs through 2023/24.

Following the discussions throughout the baseline review, we have made the case that the resources required to deliver the level of ambition expected of NRW is higher than for which previous budget settlements have allowed. Taking full account of the current economic climate and the pressures on budgets across all areas of public spending, we are grateful to the Minister for Climate Change for the commitment made to address this issue for the next financial year and, the years ahead.

We know that many of our customers and stakeholders are also facing challenges borne of the cost-of-living crisis, and so our public consultation on reviewing our charges for some of our permits and licences had to be handled sensitively. The responses led to our agreeing several revisions to our proposed charging schemes. While we understand this may be difficult in some cases, it is the first time we have increased our charges to recoup our costs since our inception ten years ago. From 1 April 2023, NRW’s annual subsistence charges increased by 6% in eight areas of our work. Our application charges for permits and licences will remain at 2022/23 rates while we await the Minister’s agreement on the introduction of a new charging scheme.

Our contribution to climate mitigation has centred on peatland restoration, the largely unsung hero in carbon capture. As hosts of the well-received 12th IUCN (International Union for Conservation of Nature) UK Peatland Programme conference in the autumn, we called for a ban on the use of peat products here in Wales. We welcome the Minister’s agreement to ban the sale of peat and we will continue to make the case to go much further in Wales so that we can safeguard this precious habitat.

As part of our climate adaptation commitments, we completed major works to make sure Wales’ largest natural lake, Llyn Tegid in Bala, remains safe in the long-term. Whilst Llyn Tegid is a natural lake, it needs to be managed under reservoir legislation as its embankments give protection from flooding to the town of Bala. The activity involved strengthening embankments and replacing the entire length of lakeshore rock protection. Our work to regulate Llyn Tegid under the Reservoirs Act 1975 is part of a wider ongoing programme of reservoir safety activity across Wales.

We also have projects throughout the country to strengthen the resilience of Wales’ protected land and marine sites, funded through the Welsh Government’s Nature Networks Programme. This investment will help halt and reverse the loss and decline of habitats and species and put Wales on a solid footing on the path to nature’s recovery. Projects have been carried out on over 200 Sites of Special Scientific Interest (SSSIs) and range from the small to the landscape scale; from the mountains to the sea and from research and evidence gathering to practical action. In addition to our own work, we have worked with the National Heritage Lottery Fund and WG to offer grants to organisations across Wales to deliver their own biodiversity ambitions. In January this year, we awarded grants amounting to £3.78m to 17 projects to improve the condition and resilience of Wales’ network of protected land and marine sites. These projects also supported communities around the protected sites to get involved in nature conservation.

We are working hard to support WG’s target of creating 43,000ha of new woodland in Wales by 2030. Having purchased parcels of land across Wales for planting, we are looking for opportunities to create a range of types of woodland that will deliver a range of benefits for the environment, wildlife, and local communities. At Tynymynydd in Anglesey and at Coed Abermorlais in Carmarthenshire, we are working alongside the farming community to help promote nature’s recovery.

This year has seen us successfully enforce several prosecutions, with some significant fines imposed. These included the prosecution of Persimmon Homes who were fined over £433K after failing to implement appropriate measures to prevent multiple pollution incidents which impacted the River Gavenny in Monmouthshire in 2019, and the confiscation of nearly £62K from the ringleader of a long-running illegal trout and salmon poaching operation on the Afon Teifi. A landowner within the Gower Area of Outstanding Natural Beauty (AONB) near Swansea, was also convicted for the illegal felling of over eight hectares of woodland.

But there have also been disappointments. Following the extensive and exhaustive investigation into the cause of the Llangennech train derailment, we had to make the difficult decision not to prosecute as we were unable to determine beyond reasonable doubt who was responsible for the derailment of the train wagon. While there was evidence identifying the likely cause, this was deemed by legal experts to be insufficient to provide a realistic prospect of conviction against a specific individual or company. We must make decisions based on public value, and unfortunately, to pursue a court case knowing there was no realistic prospect of a successful prosecution would be an inappropriate use of public funds.

Our Adfywio Programme is continuing to drive our post-pandemic ways of working to ensure that we are an agile, resilient, and more efficient organisation. Focused on decarbonisation, promoting staff well-being and financial savings, this work has considered how we can best support colleagues to work more flexibly - such as ensuring our people policies reflect and enable new ways of hybrid working, and harnesses technological advances so that staff can access services safely across many devices, including personal ones. We are finalising an accommodation strategy which looks across all our facilities to adapt our buildings to meet our future business needs, the delivery of which will involve the consolidation of office space and facilities to reflect the demands of a hybrid working environment, whilst supporting our decarbonisation aims. We are also making reductions in carbon across our fleet, replacing red diesel with Hydrotreated Vegetable Oil in our operational vehicles and implementing new travel policies to help achieve fewer, greener miles.

Our people are our most important asset. However, recruitment continues to be a significant challenge for us across key professional areas, particularly in flood risk management and engineering. Identified as one of our strategic risks, we have commissioned external support from specialists to help us improve how we recruit, and we are investing in technological solutions and providing specialist support for recruiting managers. We are determined to ensure that our systems and processes are fit for purpose, and that our colleagues are supported, empowered, and equipped for the task ahead.

The vision, mission and well-being objectives set out in our Corporate Plan will only be made real by the passion, expertise, and creativity of our people, and by inspiring our partners and stakeholders to join us on the journey. We must harness the sea-change in attitudes and understanding amongst the public and policy makers, and the strong consensus on the urgent need for unified action to tackle the nature and climate emergencies.

Delivering our vision for Wales in 2030 as a land where nature and people thrive together is existentially challenging. But, for our colleagues in NRW who are committed to championing Wales’s environment, a vision of nature and people thriving together is not difficult to imagine. We know what we need to do and how to do it.

The time to act and to make this the decisive decade of delivery for people and for nature in Wales, and around the world, is now.

- Clare Pillman, Chief Executive and Accounting Officer - 18 October 2023

Introducing NRW

We are a Welsh Government Sponsored Body. We work for the people of Wales, and it is our duty to pursue the sustainable management of natural resources (SMNR). These guiding principles underpin everything we do, including how we use our connections and bring people together to create and deliver shared outcomes for nature.

They inform how our colleagues flex and respond to the diverse needs of our communities and the environment, taking a place-focussed approach to our work, applying the sustainable development principle and contributing to the seven well-being goals set out in the Well-being of Future Generations (Wales) Act 2015.

We share with many other organisations and individuals a love and passion for nature, detailed knowledge and expertise, as well as pride in supporting communities across Wales to take action.

Our new Corporate Plan has been crafted with our colleagues in mind, building on our experience and learning over the last decade, and setting out our priorities to 2030.

We’ve set our sights on where we can and are best placed to lead and make a difference, using our tools, powers and our resources to drive action to meet the 2030 targets, while at the same time working with others to harness their own power to effect change.

Beyond 2030, society will face tougher choices on how Wales can reach the 2050 commitments for climate and nature. We are starting that work now - identifying, testing and making the case for change to set us on the right pathway collectively.

Our new well-being objectives take us to 2030 and encompass what we will be able to achieve ourselves, but also how we will work with others to ensure Wales meets these more immediate international targets.

Our new vision

Nature and people thriving together.

Our new mission

Focussing our passion and collective action towards:

• nature’s recovery
• resilience to climate change
• minimising pollution

through the sustainable management of our natural resources.

Our new values

We are proud to serve the people of Wales by being:

• Connected: we value our deep-rooted attachment to the land and water, nature and communities of Wales and build meaningful partnerships
• Bold: we use our voice, take action to make a difference and lead by example
• Caring: we listen to understand, care for each other and the communities we serve, and the environment we all depend on
• Resourceful: we explore new ways of doing things, innovate to accelerate change and use our resources effectively.

These new values reflect, in part, where we are now as well as our aspirations for the future. They are intrinsic to the successful delivery of our new vision and mission. The values will be front and centre of everything we do to deliver our new Corporate Plan; they will be embedded in our brand, our storytelling, our learning and development, leadership and management. All our work conversations and behaviours will be rooted in these values.

Our well-being objectives to 2023

Our well-being objectives, as set out in “Managing today’s natural resources for tomorrow’s generations”, were:

• Champion the Welsh environment and the sustainable management of Wales’ natural resources
• Ensure land and water in Wales is managed sustainably in an integrated way
• Improve the resilience and quality of our ecosystems
• Reduce the risk to people and communities from environmental hazards such as flooding and pollution
• Help people live healthier and more fulfilled lives
• Promote successful and responsible business, using natural resources without damaging them
• Develop NRW into an excellent organisation, delivering first class customer service

For the 2022/23 year, our strategic priorities (below) reflected evidence that emerged over the last year including reports from the IPCC (Intergovernmental Panel on Climate Change), COP 26 and build up to COP 15. Strategic priorities on the climate and nature emergencies were reflected together for 2022/23.

• Responding to the climate emergency and the nature emergency, focussing on nature-based solutions and decarbonisation
• Using our expertise, alongside that of others, with evidence from SoNaRR 2020, to support innovative, integrated decision making to tackle the climate emergency and nature emergency
• Improve water quality through raising awareness, using our regulatory and enforcement powers effectively and working collaboratively with others to reduce the impacts on biodiversity and human health, including agricultural and land management practices
• Drive a just and green recovery following the pandemic involving a diverse range of stakeholders in our work.
• Developing NRW into an excellent organisation, with a workforce that drives a strong performance culture and delivers value for money and social and environmental value for the people of Wales

For information on how our organisation is structured to deliver, please see our Accountability Report (‘Our Executive’ in this report, or our website here, for further detail).

NRW in numbers

Some figures relating to our activity of the last year, including some work with others:

Champion the Welsh environment and the sustainable management of Wales’ natural resources

• 1,168 Welsh sites designated as SSSI (Site of Special Scientific Interest), AONB (Area of Outstanding Natural Beauty), NNR (National Nature Reserve) and/or National Park
• We are a member of all 13 Public Services Boards in Wales

Ensure land and water in Wales is managed sustainably and in an integrated way

• We maintain around 3,800 flood risk management assets
• We processed 2,737 permit applications (via our Permitting Service)

Improve resilience and quality of our ecosystems

• We manage 56 National Nature Reserves (some in partnership with others)
• Our responsibilities extend out to 12 nautical miles from the coastline
• We issued 1,258 species licences

Reduce the risk to people and communities from environmental hazards such as flooding and pollution

• We maintain over 400km of flood risk defences
• 170 environmental incidents caused serious (major or significant) impact
• 141,000 properties have registered to receive our flood warnings

Help people live healthier and more fulfilled lives

• More than 3 million visitors visited some of our more popular sites in 2022
• We received 300 permission applications in 2022 for an event (or multiple events) using land we manage
• We are responsible for 25 accessible grade waymarked ‘walking’ trails
• We manage 3 visitor centres

Promote successful and responsible business, using natural resources without damaging them

• We responded to 8,193 planning consultations
• We secured 66 prosecutions for environmental offences in 2022
• We generated £34m in timber income

Develop NRW into an excellent organisation, delivering first class customer service

• We received over 25,000 general enquiries via phone or email (via our Customer Hub)
• We noted a 2.3% mean gender pay gap (in 2022/23 report)
• We invested £272m for the benefit of Wales’s people and natural resources

Key risks summary

As an organisation with diverse roles and responsibilities, we are aware that risk is an inherent aspect in all of our activities and part of everything we do. We have several key risks and the effective management of these is crucial to ensure we mitigate the impact that they could have on the achievement of our objectives. As outlined in our Accountability Report, our risks are identified, assessed, managed, reviewed and recorded through risk registers at various levels throughout the organisation.

Our strategic risks are those that could have the biggest and most profound impact on our achievement of our objectives. Generally, many of these strategic risks relate to the impact of insufficient funding, resources and people. There are additional risks that are more specific to the organisation. As would be expected, therefore, the content of the strategic risks and their score has remained fairly static over the past 12 months. Although all of the risks on our strategic risk register are key to the organisation, a summary of those that have seen the most change over the past year are as follows:

Finance

We are funded by WG grant and in addition to this, we generate income from our own commercial activity as well as income from regulatory charges. The external impact of increasing inflation and increasing supply chain costs together with scarcity of supply has been challenging with more focus required to determine our highest priorities. See our ‘Finance summary’ for more around this.

Compliance

The risk focuses on non-compliance with policies that we have in place to do our jobs safely, legally and in line with public sector requirements. We continue to monitor this risk which is regularly reviewed by the risk owner as well as being scrutinised by the Audit and Risk Assurance Committee. The risk has been redeveloped to provide greater clarity around the key planned mitigations that will help us achieve our target score, which include ensuring our policies are clear, concise and accessible, providing a clear governance structure for delivery and developing our second line function which includes monitoring and analysing and in turn providing oversight and assurance that the risk is being managed effectively. Additionally, we have provided context in terms of the target score that can be achieved in the short, medium and longer term. See ‘Effectiveness of Internal Controls: Compliance’ for more around this.

Incident Response

In order to undertake our statutory duty as a Category 1 responder under the Civil Contingencies Act, we rely on our skilled staff, systems and procedures to manage our incidents. Changes in some staff contracts has added additional resource to the rota system, and thereby our ability to respond effectively to incidents. The Resilient Response to Incident (RRI) project has been set up and will run until 2025. The aim of the project is to achieve a sustainable approach to ensuring we have sufficient capacity and capability to undertake our incident management duties. Rota training has been progressing for priority 1 incidents with planned completion by the end of 2023. See ‘Effectiveness of Internal Controls: Management of Incidents’ for more around this.

Finance summary

Funding and how we spent our money

Our total income for the year was £116million and this includes £22million of grants from WG towards a range of outcomes. In addition, the WG provided £118million Grant in Aid, of which £41million was allocated to flood and coastal risk management. In the financial statements, Grant in Aid is treated as a contribution from a controlling authority and not a source of income.

In 2022/23, our expenditure increased from £255million to £272million. The change in expenditure is due to several reasons including an increase in staff costs mainly due to our pay award, delivery of our capital programmes and the increased costs of bought in services. Our total funding and spend distribution:

• Funding by type: Welsh Government Grant-in-Aid (50% / £118m), Charges (17% / £40m), Commercial and other income (21% / £49m), Other Welsh Government grants (9% / £22m), European and other external (2% / £5m)
• Expenditure by type: Staff costs (46% / £125m), Capital works expensed in year (12% / £33m), Other expenditure (42% / £114m)

Managing our money

In 2022/23, our ‘core’ funding from WG remained at the same cash levels as the previous year. In addition, WG provided other funding during the financial year because of a shortfall in our budget. Also, WG continued to provide us with specific grant funding for programmes targeted at addressing the climate and nature emergency. Our externally funded programmes doubled – investing more than £7m into programmes funded from Europe and the Heritage Lottery. Our timber income saw a small decrease as the economic situation impacted on demand for timber but this was offset by an increase in renewable energy income. Charge income levels have increased but less than the rate of inflation. The budget was scrutinised and approved by the Executive Team and Board.

Future look

We have just published our new Corporate Plan to 2030 and Business Plan for 2023/24 which sets out our priorities for the financial year(s) ahead. We have set our plans based on expected resources, including Grant in Aid, charges and commercial income allocations and estimates. We have just received approval for changes to our permitting and applications fees which will take effect from 2023/24. We have also increased our subsistence charges where necessary in some regimes, due to the impact of inflation levels. Our commercial income can be less predictable as it’s very sensitive to exchange rate changes which affect timber prices. We have indicative Grant in Aid allocations up to 2024/25 which will help with our planning. We are also working closely with WG who have provided us with assurances that shortfall in our Grant in Aid allocations will be resolved during this financial year that will allow us to continue with current service levels and in some places increase those levels of service.

Non-current assets

The value of our non-current assets was £2,769million at 31 March 2023, a 9% (£234million) increase compared to last financial year. The most significant component is the value of the forest estate and biological assets which accounts for £2,235million of the total and the strong valuation of the crops on the estate was the main reason for the large increase.

Payment of trade and other payables

We have a commitment to pay 95% of suppliers within 30 days and we aim to exceed this target wherever possible. Performance for the whole year did fall just below that target (94%). Performance over the last 6 months averaged 96%, and we achieved 99% in March 2023.

Debtor performance

Our continued management of commercial debt has seen a slight increase in commercial debt, with the average number of days for customers to pay remained at 1 day compared to 2021/22, which is still within our target of 2 days.

Our management of regulatory debt has seen a decrease in the level of debt from 2.9% in 2021/22 to 6.5% at the end of 2022/23, which was still below our target of 7%. We will set a target that improves upon the 6.5% for 2023/24.

NRW’s expected credit loss is £0.2million as at 31 March 2023.

Going Concern

The Statement of Financial Position at 31 March 2023 shows positive taxpayers’ equity of £2,710million. The future financing of our liabilities is to be met by the Welsh Government Grant in Aid and the application of future income. We have an approved Corporate Plan and Business Plan for 2023/24. Therefore, it is appropriate to adopt a going concern basis to prepare the Financial Statements.

Pensions

The pension liability is disclosed in the Financial Statements based on International Accounting Standard 19. The liability has decreased for the Local Government Pension Scheme from £54.4million to a surplus of £65.3million in the year.

This is different from the basis used for funding calculations. The Environment Agency Pension Fund has estimated that it had enough assets to meet 142% of its expected future liabilities at 31 March 2023.

Auditors

Our accounts are audited by the Auditor General for Wales. The audit fee for 2022/23 was £199k.

Other reports

As an organisation, we regularly publish a number of reports, about how we are performing. This section includes:

• Annual report and accounts,
• Equality, diversity and inclusion annual report,
• and an environmental report

Our published strategies and plans for Wales include:

• new Corporate Plan,
• our Commercial strategy
• Area Statements (which outline priorities, risks and opportunities for areas of Wales).

We also publish research and evidence reports, including the State of Natural Resources Report (SoNaRR) for Wales 2020).

Performance summary

All measures in our performance framework relate to our Well-being Objectives set out in our Corporate Plan ‘Managing today’s natural resources for tomorrow’s generations’ to March 2023. Reporting and scrutiny of topic reports and measure reports in our Business Plan dashboard takes place in open public session at NRW Board meetings four times a year, with further scrutiny of this reporting via WG.

At the end of the 2022/23 year our Business Plan dashboard included 31 measures, across 15 topics. At year end, of those measures:

• 19 were Green (i.e. achieved target or milestone)
• 12 were Amber (i.e. close to target or milestone)
• None were Red (i.e. missed target or milestone)

Comparing performance with the previous year (2021/22), at the end of 2022/23 we had three less green measures, with four more measures amber or red (and the 2022/23 dashboard reflected one more measure overall).

Our reports for previous years can be viewed here (see ‘Annual Reports and Accounts’).

Performance analysis

This part of the performance report aims to reflect some of what has been achieved this year, including examples reflecting particular highlights and significant areas of challenge.

By Well-being Objective, we outline:

• year end position for each of our Business Plan dashboard measures;
• some of our planned priority activity for the coming year;
• a number of related delivery examples (some of which relate to a number of our Well-being Objectives)

Delivery relationships with Wales’ Well-being Goals are indicated (see approach to this below).

Wales’ Well-being Goals: In the following part of this annual report and accounts we have also indicated some item relationships with Wales’ Well-being Goals. Selected linked Goals are listed.

Champion the Welsh environment and the sustainable management of Wales’ natural resources

We aim to champion the natural environment in everything we do – in the information we provide, in supporting Public Services Boards and in putting the sustainable management of natural resources into practice across all our work – to help people make the most of the benefits it offers as well as valuing it for its own sake – now and for future generations.

Linked Wales’ Goals:

• More Equal
• Healthier
• Resilient
• Prosperous
• Globally Responsible
• Vibrant Culture and Thriving Welsh Language
• Cohesive Communities

Reflecting on our Business Plan dashboard progress for 2022/23, we:

• Progressed Natur a Ni / Nature and Us, to prepare a shared vision for the natural environment to 2050, with a shift in timescale agreed. Measure status: Amber
• Set strategic direction for projects addressing Area Statement and Public Services Boards’ priorities and opportunities. Measure status: Green
• Informed development of Welsh Government land management policy and legislation. Measure status: Green

Looking forward, our new Business Plan includes our priority commitments for the coming year to achieve our new Corporate Plan.

We have included more detail on a number of the above final measure positions as part of the delivery examples from 2022/23 which follow.

A shared vision for the natural environment in 2050

Nature and Us involved people, communities and organisations across Wales to develop a vision for the natural environment of Wales in 2050. Through creating the vision for Wales with the people of Wales, the emerging vision can be carried forward by everyone to create a better future for nature and for us.

The Nature and Us programme involved people, communities and organisations in Wales to develop a shared vision for 2050 and the changes we all need to make leading up to 2030 and 2050.

An online campaign in Spring 2022 generated over 3,000 individual responses setting out what people want, and what concerns them, for the future of our environment. Over the summer, we held focus groups with communities under-represented in the initial involvement exercise. This helped us explore the motivations and barriers behind peoples’ visions and concerns for the future. For findings, see: www.natureandus.wales

Early in 2023 a citizens’ assembly was held to shape the vision. Assembly members represented the diversity of Welsh society and the sessions were co-designed with organisations from across the public sector to ensure a balanced range of evidence. The resulting vision describes a future where nature and society thrive together, including what benefits this provides, and identifies key areas for change to make this vision a reality.

The well-being objectives in our new Corporate Plan built upon Nature and Us findings.

The vision will be released in Summer 2023 and work with partner organisations will continue, to draw out responses to the vision and actions to take. NRW will respond formally to the vision, setting out our role in achieving it.

Sustainable Development (SD) and SMNR principles have been firmly rooted in our design, and the vision will help provide a long-term focus for all public bodies. An evaluation will capture key lessons learnt for all public bodies. An evaluation will capture key lessons learnt for NRW around engagement, involvement and communication practices.

Linked Wales’ Goals:

• More Equal
• Healthier
• Resilient
• Prosperous
• Globally Responsible
• Vibrant Culture and Thriving Welsh Language
• Cohesive Communities

Marine Licence granted for Wales’ first Floating Offshore Wind Farm

In February 2023 we granted a Marine Licence for Wales’ first Floating Offshore Wind Farm. Our permitting service acting in accordance with legislation to ensure sustainable management is key to the determination of permit applications.

Project Erebus is a 100MW renewable energy Floating Offshore Wind Farm within the Celtic Sea comprising up to a maximum of seven turbines located just over the 12 nautical mile limit within the Welsh Offshore region with an export cable route making landfall at West Angle Bay, Pembrokeshire. Project Erebus required a ‘EIA Band 3’ Marine Licence which was determined by NRW Permitting Service and a Section 36 consent from Welsh Ministers following the recommendation of Planning and Environment Decisions Wales (PEDW). In coming to their decision PEDW deferred to the Environmental Impact Assessment (EIA) consent decision of our Marine Licensing Team in respect to requirements of the EIA Regulations. The marine licence was granted in February 2023 and construction is scheduled for 2025.

When determining marine permit applications, NRW need to have due regard to legislation designed to protect the environment, protect human health, prevent interference with legitimate uses of the sea and any other matters considered relevant.

We considered the Marine and Coastal Access Act (2009), Environmental Works (EIA) Regulations (2007) (as amended), Environment Wales Act (2016) and Well-being of Future Generations Act (2015) in determining Project Erebus, Wales’ first Floating Offshore Wind Farm.

We acknowledge that the principles of sustainable management include taking account of all relevant evidence and gathering evidence in respect of uncertainties, and taking account of short, medium and long-term consequences of actions. We further acknowledge that is it an objective of sustainable management to maintain and enhance the resilience of ecosystems and the benefits they provide and, in so doing meet the needs of present generations of people without compromising the ability of future generations to meet their needs. In determining Project Erebus’ marine licence, our Marine Licensing Team ensured the right development was consented in the right place.

Linked Wales’ Goals:

• Healthier
• Resilient
• Prosperous
• Globally Responsible

Ensure land and water in Wales is managed sustainably in an integrated way

A fully integrated approach to the sustainable management of land and water in Wales can reap multiple benefits across all sectors – farming, forestry, fisheries, and the urban environment. However, this is not happening yet. We aim to put this approach into practice on the land and water we manage ourselves and encourage all land and water managers to adopt an SMNR approach.

Linked Wales’ Goals:

• Healthier
• Resilient
• Prosperous
• Globally Responsible
• Vibrant Culture and Thriving Welsh Language
• Cohesive Communities

Reflecting on our Business Plan dashboard progress for 2022/23, we:

• Delivered a programme to review statutory water quality requirements, and finalised the Dee and Severn River Basin Management Plans. Measure status: Amber
• Supported Welsh Government’s renewable energy deep dive recommendations, with NRW planned activity for the year mostly complete. Measure status: Amber
• Created new woodland on the NRW Estate, with 164ha of woodland established this year, and six sites secured (207ha) for future woodland creation. Measure status: Green
• Retained certification relating to the UK Woodland Assurance Standard, with no major corrective action requests. Measure status: Amber
• Input into Water Company Planning programmes, and responded to related plans. Measure status: Green
• Redesign of our freshwater quality network was rescheduled. Completion now expected by the end of June 2024. Measure status: Amber
• Worked to reduce the impact of nutrients in SAC rivers; Publishing advice, updating our guidance and supporting the production of future plans. Measure status: Amber
• Acted to restore Wales’ peatlands, delivering 629ha of peatland restoration activity (including 85ha on the NRW estate). Measure status: Green

Looking forward, our new Business Plan includes our priority commitments for the coming year to achieve our new Corporate Plan.

We have included more detail on a number of the above final measure positions as part of the delivery examples from 2022/23 which follow.

New Authorisations – Signed, sealed, delivered

We have brought previously exempt water abstractors into the licencing regime to ensure Water in Wales is managed sustainably and that NRW has regulatory control to secure compliant activity that maintains and enhances the environment of Wales.

Over the past five years Natural Resources Wales has embarked on a significant challenge in delivering the requirements of the Water Abstraction (Transitional Provisions) Regulations 2017. On the 1 January 2018 legislative changes, set within the Water Act 2003, required previously exempt Water Abstractions to be regulated under a new licence called a ‘New Authorisation’.

Prior to the changes being introduced we engaged with stakeholders through public events, the publication and distribution of information leaflets and social media, as well as using local intelligence on previously exempt abstraction activities.

In the background, our Permitting Service’s Water Resources Permitting Team and the Water Policy Teams were also busy creating what was needed for both internal and external customers. New policy, guidance, training, and tools were delivered to provide support for the new application process.

In total, 117 applications were validated and in 2020 we set to work on determining each application. The determination of these licences was extremely challenging due to the existing nature of the abstractions. Significant technical input from many areas of the business was provided to support this. Due to the dedication of staff across our organisation we were able to reach a decision on all applications within the legislative timeframe of the 31 December 2022.

Now that these formerly exempt abstractors have a licence, we can begin to regulate them, ensuring that compliance and improvement can be achieved. We now can record more precisely the amount of water that is abstracted in Wales allowing us to improve water resources planning in our catchments. All to maintain and enhance the environment of Wales.

New woodland on the Welsh Government Woodland Estate

In 2022/23 we established 95 hectares of new canopy cover on the Welsh Government Woodland Estate (WGWE) - compensating for woodland lost from it, and ensuring we maintain future timber resource and the full range of benefits delivered by public woodlands.

Our woodland creation programme compensates for woodland lost from the WGWE in relation to renewable energy developments - Acquiring land and establishing new woodland that will be managed as part of the WGWE in perpetuity. At the start of 2022/23, Wales’ woodland covered 310 thousand hectares (a figure unchanged since 2019), with 115 thousand hectares of this managed by NRW as part of the WGWE.

In 2022/23 we established four sites, a gross area of 164ha resulting in 95ha of new canopy cover. We carried out work on three sites (84ha) created in recent years to ensure they continue to establish successfully. We also acquired a further 207ha for planting in the coming planting season.

In identifying and planning new sites we carefully consider site conditions, existing habitats, local landscape and communities. Our plans are guided by the UK Forestry Standard and the principles of the SMNR. All woodland forming part of the WGWE is certified in relation to the UK Woodland Assurance Standard (an independent certification standard for verifying sustainable woodland management).

As part of our woodland creation work in 2022/23, we carried out a number of public consultations on our plans; Ensuring that the needs of neighbours and local communities are considered, and that stakeholders can input into our plans. As a result, we have included some innovative aspects into the woodland schemes we planted last year, including community orchards, a silvopasture demonstrator site and the beginnings of a new community partnership.

Another key principle of our woodland creation is ensuring resilience. We planted a diverse range of species, that we hope will be resilient to the future climatic conditions of the sites and contribute to the overall resilience of the WGWE.

Linked Wales’ Goals:

• Healthier
• Resilient
• Prosperous
• Cohesive Communities

Improve the resilience and quality of our ecosystems

Our State of Natural Resources Report (SoNaRR) identified that many ecosystems will not be adaptable enough to deal with climate change and other pressures in future and so may not be able to provide the services we need – such as clean air and water. We designate special sites such as National Nature Reserves (NNRs) and Sites of Special Scientific Interest (SSSIs), for example – but our work is much broader than this. We aim to take biodiversity and ecosystem resilience into account in all our functions, activities and decisions and help other public bodies do the same.

Linked Wales’ Goals:

• More Equal
• Healthier
• Resilient
• Prosperous
• Globally Responsible
• Vibrant Culture and Thriving Welsh Language
• Cohesive Communities

Reflecting on our Business Plan dashboard progress for 2022/23, we:

• Managed programmes to address and restore habitat across Wales. Measure status: Green
• Acted for declining species or those on the edge of extinction, including applying for future funding. Measure status: Green
• Delivered on Wales Marine Protected Areas network management actions. Measure status: Green
• Completed priority actions across NNRs in NRW direct care, completing 68% of these. Measure status: Amber
• Completed priority actions on protected sites to improve the condition features. Measure status: Green

Looking forward, our new Business Plan includes our priority commitments for the coming year to achieve our new Corporate Plan.

We have included more detail on a number of the above final measure positions as part of the delivery examples from 2022/23 which follow.

Area Statements – Reducing diffuse pollution and improving water quality

In North East Wales we have successfully delivered a series of projects in 2022/23 addressing diffuse pollution and improving water quality within the Clwyd catchment. This is just one example of our work on this, in one part of the North East of Wales.

The Area Statements we publish reflect priorities, risks and opportunities for areas of Wales. We have published seven Area Statements, including a marine Area Statement. The North East Wales Area Statement reflected that 68% of all its freshwater water bodies (as defined by the Water Framework Directive) were not achieving good or better overall status. Within the Clwyd catchment, a number of projects have been delivered in 2022/23 which included addressing related issues at four different locations in the lower Wheeler, Hesbin, and Dwr Ial.

Interventions were targeted to deliver water quality enhancements, alongside other environmental, biodiversity, health and well-being benefits in line with the Area Statement’s priorities. The interventions were developed into a programme of works for each location. Interventions included:

• Removing phosphates from watercourses, by elimination of stock access
• Reducing sediment loading from bankside erosion
• Improving the Water Framework Directive condition status of each waterbody

Each project successfully delivered the identified interventions, and is expected to help to improve water quality within each waterbody and the wider Clwyd catchment. The projects further played a part in contributing to a much greater catchment approach, extending the fencing of riparian corridors already completed elsewhere by the Rivers Trust and ourselves.

Relationships with partners have also improved as a result of these projects, enabling more collaborative and innovative practices to be considered in the future to help manage land sustainably and improve water quality.

Across Wales, 40% of 933 surface and ground water bodies were at good status in 2021 - an improvement of 3 percentage points from that reported in 2015 and an 8 percentage point improvement since 2009.

Linked Wales’ Goals:

• More Equal
• Healthier
• Resilient
• Prosperous
• Globally Responsible
• Vibrant Culture and Thriving Welsh Language
• Cohesive Communities

Tackling unconsented works on rivers and streams

Our focus on the prevention and regulation of physical harm (hydromorphological harm) to rivers is providing better protection to freshwater habitats and species from unauthorised damaging works.

Unconsented works on rivers and streams in Wales have the potential to cause long-term harm to freshwater habitats and species, as well as cause additional problems such as increased flood and erosion risk. Unconsented activities we see have included dredging, shoal removal, watercourse realignment, inappropriate bank protection, culverting and gold panning.

Recognising the potential damage these activities can cause, we implemented a new process for responding to these incidents as part of our ambitious River Restoration Programme. We respond to these incidents with high priority to stop works and prevent further harm, and have a range enforcement options, including the use of regulatory notices. These notices can be used to both stop the work and to ensure any damage caused is put right. We have served around 40 such notices since June 2021. We also have the option to pursue a prosecution if a particularly severe incident is caused.

We continue to provide advice on proposed works affecting watercourses, to ensure landowners are aware of all necessary permissions and required measures to avoid impacts to biodiversity, water quality and flood risk. During 2022/23, we also rolled out additional training and guidance to our staff for dealing with these incidents, and undertook proactive communications work to raise awareness amongst landowners of the need for permission for certain works.

We presented our new process for dealing with hydromorphological harm at Welsh River Restoration seminars and a UK conference in 2022, and this has resulted in regulatory authorities from England, Scotland and Norway approaching us for further information and advice.

We will continue to prevent unconsented works taking place, and to encourage those wishing to undertake works contact us for advice in the first instance – protecting our rivers and streams for the future.

Linked Wales’ Goals:

• Resilient
• Globally Responsible

Area Statements - Partnership working through the Gwent Green Grid

Gwent Green Grid is a regional collaborative partnership that has continued to act in 2022/23 to improve the resilience and quality of our ecosystems in a more joined up and integrated way, connecting people with nature and responding to the climate and nature emergencies locally and at the landscape-to-regional scale.

The Area Statements we publish reflect priorities, risks and opportunities for areas of Wales. We have published seven Area Statements, including a marine Area Statement. The South East Wales Area Statement reflects how a landscape panel approach was used in relation to the ‘Linking our Landscapes’ theme which drew on the expertise of the Gwent Green Grid partnership, along with other partnerships, in its development. The Gwent Green Grid Partnership is a regional collaboration between all five local authorities in South East Wales, Forest Research, Severn Wye Energy and ourselves that works together involving partners and stakeholders to deliver local to landscape-scale green infrastructure outcomes for the wellbeing of Gwent.

The partners have worked collaboratively across our built and natural environment to deliver better management of species-rich grassland and woodland, including community-led initiatives to safeguard and enhance both connectivity and access to nature. This has included embedding ways of working and both developing and integrating shared services and best management practice (for example ‘cut and collect’) to deliver multiple benefits including pollinator friendly “Nature Isn’t Neat” outcomes.

The collaborative and integrated ways of working and suite of strategies and projects enables the partnership to contribute to the resilience of our natural resources, providing vital health and well-being benefits for current and future generations across the region - aligning with and delivering the Well-being of Future Generations Act and Environment Act locally and the landscape to regional-scale.

Looking ahead, the partnership will continue to work together to deliver local to landscape-scale high quality green infrastructure for the benefit of nature and people. This includes delivery of resilient ecological networks across the region to adapt to the climate and nature crises. Working together, partners will build resilience within and between our protected sites network, increase accessible green space, tackle health and well-being inequalities, as well as enhance green skills training and apprenticeship opportunities. The partnership offers a collective response to the nature and climate emergencies, supporting a more inclusive, greener, and resilient Gwent.

Linked Wales’ Goals:

• More Equal
• Healthier
• Resilient
• Prosperous
• Globally Responsible
• Cohesive Communities

Reduce the risk to people and communities from environmental hazards such as flooding and pollution

We advise on, forecast and monitor the likelihood of flooding and, as well as developing flood defence schemes, we support local communities to reduce their risks. Similarly, we advise and regulate industry and waste sites to reduce the likelihood of pollution entering the wider natural environment. We also provide a response to environmental incidents that do occur despite best efforts. Aiming to be firm but fair, we investigate incidents and use our full range of powers to tackle environmental crime when necessary.

Linked Wales’ Goals:

• More Equal
• Healthier
• Resilient
• Prosperous
• Globally Responsible
• Cohesive Communities

Reflecting on our Business Plan dashboard progress for 2022/23, we:

• Responded to incidents, exceeding our 95% target for response within four hours to incidents initially classed as ‘high’ category. Measure status: Green
• Acted to reduce pollution from metal mines, assessing and remediating high risk sites. Measure status: Amber
• Maintained flood risk assets, achieving 98.3% at target condition within high-risk systems. Measure status: Green
• Reduced flood risk (or sustained protection) for 1,647 properties via capital schemes. Measure status: Green
• Implemented flood review actions, with 59 being completed, and a report planned to cover off remaining longer-term actions and work closures. Measure status: Amber
• Consulted on flood risk management plans, with plans publication now expected by September 2023. Measure status: Amber

Looking forward, our new Business Plan includes our priority commitments for the coming year to achieve our new Corporate Plan.

We have included more detail on a number of the above final measure positions as part of the delivery examples from 2022/23 which follow.

Producing our Flood Risk Management Plan

Our updated Flood Risk Management Plan for Wales will identify what is at risk of flooding and set objectives, priorities and measures to manage the risk of flooding over the next six years.

In 2022/23 we developed and consulted on the publication of our next Flood Risk Management Plan (FRMP) for Wales. This plan is a requirement of the Flood Risk Regulations 2009 and represents our compliance with the second cycle of the required actions under these regulations.

The draft plan contains our objective for managing flood risk over the period of this next plan, including 14 priorities in regard to how we will go about our work, 58 national measures or actions to be taken at a strategic level and 264 local place based measures of proposed action in over 150 different communities across Wales.

The draft plan includes the latest assessment (Based on December 2021 figures) of flood risk across Wales, which shows a total of 72,170 properties at risk of flooding from the sea and 91,877 properties at risk of flooding from rivers.

We engaged and consulted across our organisation in the plan development and the plan was shared with our partners and the public through a formal 13 week consultation in March 2023.

Following the end of the consultation period in May we will consider the comments and feedback submitted through the consultation to finalise our plan which we expect to publish by September 2023.

Linked Wales’ Goals:

• More Equal
• Healthier
• Resilient
• Prosperous
• Globally Responsible
• Vibrant Culture and Thriving Welsh Language
• Cohesive Communities

Sole regulators for Kronospan

In October 2022 we met the requirements of a Welsh Government Direction and consolidated two regulators permits into one, becoming the sole regulator for the Kronospan particleboard factory in Chirk, North Wales.

Kronospan Limited have been operating a particleboard and MDF manufacturing plant in Chirk, North Wales for many years. Activities on the site are regulated by the Environmental Permitting Regulations 2016 (EPR) to control the levels of potentially harmful pollutants and ensure that operating techniques are in line with technical advances and industry standards known as best available techniques.

The activities on-site have been the subject of various Directions from Welsh Government. The first in 2003 split regulation between Wrexham County Borough Council (WCBC) and the Environment Agency Wales (now subsumed into NRW). The latest Direction in 2018, required NRW to consolidate the two regulators permits for the site into one, and then subsequently conduct all regulatory functions in relation to that permit.

In 2022 we completed a four year long in-depth detailed assessment of existing and new activities at the Kronospan site, consulting with stakeholders and the public. Our thorough assessment of pollutant emissions and potential impacts from activities within the Kronospan site, establishes a baseline for future improvements as standards and emission limits are tightened. The consolidated permit was issued to the operator in October 2022 and it includes several improvement conditions for the operator to implement within 18 months of permit issue.

This means that NRW has now become the single environmental regulator for the site and will conduct all future regulatory functions in relation to the permit.

Linked Wales’ Goals:

• More Equal
• Healthier
• Resilient
• Prosperous
• Globally Responsible
• Vibrant Culture and Thriving Welsh Language
• Cohesive Communities

Llangennech train derailment

Following a train derailment in August we acted with partners to protect people and communities.

The related investigation concluded in February 2023. On August 26, 2020, a 2,500 tonne freight train derailed on the shoreline of the Loughor Estuary near Llangennech, Carmarthenshire, resulting in the spillage of 330,000 litres of diesel and a fire which threatened a highly sensitive internationally important Burry Inlet Special Area of Conservation (SAC) estuarine environment and major cockle fishery - a highly sensitive, internationally important, estuarine environment

The incident had a detrimental effect on the environment and impacted local businesses and tourism. Shellfisheries were closed for seven weeks as a precaution following advice from the Food Standards Agency. The section of railway line was closed for seven months.

Environmental disaster was avoided thanks to extensive works carried out as part of a recovery operation by Adler and Allan Ltd contractors on behalf of DB Cargo and their insurers, supported by Jacobs on behalf of Network Rail, with technical support from Natural Resources Wales, Carmarthenshire County Council, City and County of Swansea Council, The Coal Authority, the Food Standards Agency and Public Health Wales.

Following the incident there have been two separate Major Incident Reviews which highlighted important learning points and the excellent collaboration and communication between the main professional partners, including NRW and Network Rail. In February 2023 our investigation concluded there was insufficient evidence for a successful conviction and it would be a reckless use of public monies to pursue a prosecution. Monthly monitoring of the fishery will continue until April 2023 to ensure hydrocarbon levels remain at safe background levels. The work to protect the fishery coincides with a review of both Cockle Fishery Management Plans in Wales.

Linked Wales’ Goals:

• Healthier
• Resilient
• Prosperous
• Globally Responsible
• Vibrant Culture and Thriving Welsh Language
• Cohesive Communities

Reducing flood risk and sustaining flood protection through our Capital work

Contributing to the reduction of flood risk to communities across Wales by both building new and also maintaining our network of over 400km of flood defences in Wales.

Over 2022/23 we invested over £20million through our flood risk management capital programme, delivering substantial improvements to our flood defence network and supporting the development of a pipeline of projects which will be delivered in future years. Over 26,000 properties in Wales have previously been assessed as being at high risk from flooding from rivers and over 48,000 properties at high risk from the sea.

Highlights this year included the completion of reservoir safety works at Bala, Cowbridge and Llandudno Junction, which have ensured sustained protection to over 1,100 properties and that our structures remain compliant with the Reservoirs Act (1975). We have also undertaken smaller repair and refurbishment projects across Wales which has benefitted a further 500 properties.

We have completed improvement works at Llanfair Talhaiarn to reduce the risk of flooding to the community. The village has suffered from numerous flood events in recent decades and the improvements to structures both within the village and upstream will reduce the risk to 33 properties.

Project development work developed within the 2022/23 programme is likely to lead to a reduction in flood risk to over 3,400 properties in the medium term, i.e. the next 5-10 years. This includes major construction schemes such as Stephenson Street (Newport) and Ammanford (Carmarthenshire) which will be reducing flood risk to over 1,000 properties in the next 2-3 years. Construction at both schemes started in 2022/23 and will continue into 2024.

Linked Wales’ Goals:

• Healthier
• Resilient
• Prosperous
• Globally Responsible
• Cohesive Communities

Help people live healthier and more fulfilled lives

As well as providing a wide range of opportunities for recreation on the land we manage ourselves, we work with partners to encourage everyone to access the outdoors throughout Wales and improve their health and well-being. We support community projects and help people to learn about the value of the natural environment, its importance in day-to-day life and its part in Welsh culture and heritage.

Linked Wales’ Goals:

• More Equal
• Healthier
• Prosperous
• Globally Responsible
• Vibrant Culture and Thriving Welsh Language
• Cohesive Communities

Reflecting on our Business Plan dashboard progress for 2022/23, we:

• Acted to develop and implement a programme to examine a proposed new National Park (in North East Wales). Measure status: Green
• Delivered a full programme of training, resources and communication projects reaching over 1,000 individuals. Measure status: Green

Looking forward, our new Business Plan includes our priority commitments for the coming year to achieve our new Corporate Plan.

We have included more detail on a number of the above final measure positions as part of the delivery examples from 2022/23 which follow.

Area Statements – Supporting well-being through ocean literacy

For citizens of Wales to live healthier and more fulfilled lives, we need to ensure we are living sustainably and supporting biodiversity and resilience in all our natural resources. We are working in partnership to build ocean literacy in support of Marine Area Statement priorities.

The Area Statements we publish reflect priorities, risks and opportunities for areas of Wales. We have published seven Area Statements, including a marine Area Statement. The Marine Area Statement identified “Reconnecting people to Welsh coasts and seas” as a key priority and over the past year we have been supporting a collaborative and co-productive approach to building ocean literacy through the Wales Coast and Seas Partnership – a strategic partnership that brings together multiple partners and stakeholders working around the coasts and seas of Wales.

Ocean literacy is essentially “understanding your individual and collective influence on the ocean, and it’s influence on you”. Contributors to an initial workshop in June 2022 highlighted the need for a vision for ocean literacy in Wales. Since then, we have developed a network of ocean literacy champions, involved in national and international ocean literacy work, who have continued to meet through workshops, online meetings, face-to-face and hybrid sessions to begin to pull together an ocean literacy strategy and implementation plan for Wales.

A draft vision for the strategy is that “The people of Wales understand, value and have access to the benefits of Wales’ marine and coastal environment, taking decisions in their day-to-day life that support its sustainable future”. Key objectives of the developing action plan include promoting safe and equitable access to our coasts and seas; enabling people to value the wide range of benefits from marine and coastal environments; and promoting changes in individuals’ behaviour and in local and strategic policy development that supports the sustainable management and use of our seas.

The group are working towards sharing a draft vision, strategy and implementation plan by the end of the 2023.

Linked Wales’ Goals:

• More Equal
• Healthier
• Resilient
• Prosperous
• Globally Responsible
• Vibrant Culture and Thriving Welsh Language
• Cohesive Communities

People enjoying their local environment

We continue to encourage and support people getting outside to improve their physical and mental health, including through making further improvements across Wales for sites we manage. We have:

• Phased more WGWE sites into the National Forest scheme
• Enhanced visitors’ experience in woodlands and NNRs Improving signage, wayfinding and trailside interpretation for 266 waymarked trails on the estate we manage
• Displayed new heritage interpretation at our visitor centres, explaining the cultural significance of these site features
• Maintained 47 mountain bike trails
• Worked with local groups to manage wild mountain bike trails
• Installed a suite of 25 visitor counters at our busiest sites
• Provided new information online around site and trail accessibility for visitors – enabling people to decide which would be best for them to visit
• Created and promoted two films about visiting our woodlands and reserves
• Produced a new brochure promoting visits to our woodlands and NNRs across Wales
• Improved the range of images we hold - reflecting visits to more sites by more people
• Provided information online for visitors through the Days Out pages of our website, including places to visit, things to do and status updates in relation to sites (e.g. temporary site closures)

We continued to welcome permissions applications for recreational events, including cycling, running, horse riding and triathlons – encouraging and supporting outdoor exercise across sites we manage. We worked on a new improved application form and an online check service, to support customers applying for permission to carry out their activity. We also started on the development of a recreation strategy for publication in June 2024.

We have been planning further improvements to our support for community woodland groups, with Llais Y Goedwig supporting new and existing projects including: Coed Y Bont, Spirit of Llynfi Woodland, Llyn Parc Mawr and Golygfa Gwydyr. Such community woodland groups provide many benefits, e.g. team building, ‘green gym’ exercise, a chance to meet other people in your community, make friends and be a part of something positive – all contributing to better mental and physical health.

Linked Wales’ Goals:

• More Equal
• Healthier
• Resilient
• Prosperous
• Globally Responsible
• Vibrant Culture and Thriving Welsh Language
• Cohesive Communities

Promote successful and responsible business, using natural resources without damaging them

We want Wales to be recognised as a great place to do business, embracing green growth, new sectors, research and innovation. As well as developing our own commercial activities, we want to encourage businesses to use resources efficiently and work towards a circular economy. We use our regulatory powers – permitting, monitoring to check compliance and enforcement – to protect the natural environment and to ensure that legitimate businesses are not undermined.

Linked Wales’ Goals:

• More Equal
• Healthier
• Resilient
• Prosperous
• Globally Responsible
• Vibrant Culture and Thriving Welsh Language
• Cohesive Communities

Reflecting on our Business Plan dashboard progress for 2022/23, we:

• Issued permits and licences, with 86% of permits issued within statutory timescales. Measure status: Amber
• Offered 719,700m 3 of timber to market. Measure status: Green
• Subjected compliance breaches to further assessment, following up category 1 and 2 compliance breaches within six months. Measure status: Green
• Decided on appropriate enforcement responses in relation to environmental crime within three months. Measure status: Green

Looking forward, our new Business Plan includes our priority commitments for the coming year to achieve our new Corporate Plan.

We have included more detail on a number of the above final measure positions as part of the delivery examples from 2022/23 which follow.

Review of Waste Incinerator Permits Completed

We have reviewed permits for Wales’ large waste incineration sites during 2022 to ensure the sites are performing to the highest environmental standards.

We reviewed permits against the latest industry best practice which ensures that the waste incineration industry continue to use the best available techniques for preventing or minimising pollution and impacts on the environment. These techniques could include the technology used and the way an installation is maintained, operated, and decommissioned.

Wales has five waste incineration sites, including two municipal waste incinerators, two biomass incinerators and a clinical waste incinerator. Each one will have to meet tighter limits on pollutants they can release as well as undertaking additional monitoring.

Across all sites the emission limit for particulate matter has been reduced by 50%. At the two municipal waste incinerators the new mercury emission limit secures a 60% reduction, and at one site the limit for oxides of nitrogen has been tightened by 55%.

Through an improvement condition added to all permits, operators are now required to investigate the reduction of oxides of nitrogen beyond current standards, and all sites are required to implement new management plans in relation to abnormal, start-up and shut-down operations.

Overall, the new permit conditions ensure that we continue to have an efficient regulatory tool, driving ongoing future improvements.

Linked Wales’ Goals:

• More Equal
• Healthier
• Resilient
• Prosperous
• Globally Responsible
• Vibrant Culture and Thriving Welsh Language
• Cohesive Communities

Supporting Wales’ forest infrastructure

Our Forest Roads Construction Framework is a £36m framework we launched in 2022 for the creation of forest tracks, roads, bridges and other associated forestry infrastructure on the WGWE; enabling future timber harvests and the management of the Estate.

Timber harvesting in Wales creates multiple benefits for the Welsh economy; supports local industry and increases opportunities for employment in Wales, including our rural communities. The Welsh Forestry sector as a whole is worth over £450million to the economy.

Under the framework, to ensure suppliers are fully committed to carbon reduction, bidders were required to demonstrate related initiatives they were undertaking. This included the emission standards of their fleet and fleet improvement plans, and a commitment to provide regular fuel data to us, so improvements can be measured.

In addition to forestry infrastructure providing for timber harvesting, when it is not in active use for this, much of it is used for recreational purposes, providing places for the public to keep active and walk, trek or cycle; creating associated tourism opportunities in forestry areas supported by our visitor centres.

Contracts including those for restocking forests, ground preparation for planting, and supply of tree planting services also form part of our approach to maintaining the forest cycle. These contracts support sustainable timber harvesting levels on the Welsh Government Woodland Estate as we set out in a Timber sales and marketing plan, aligned to the requirements of relevant standards, including the UK Woodland Assurance Standard (UKWAS).

Linked Wales’ Goals:

• Healthier
• Resilient
• Prosperous
• Globally Responsible
• Vibrant Culture and Thriving Welsh Language

Develop NRW into an excellent organisation, delivering first class customer service

We want to be the best organisation we can be, for our staff, our customers, and the natural environment. This means we have undergone considerable change as an organisation. Completion of our staff restructure enabled us to focus on developing our organisation to support staff and customers to meet personal and business objectives.

Linked Wales’ Goals:

• More Equal
• Healthier
• Resilient
• Prosperous
• Globally Responsible
• Vibrant Culture and Thriving Welsh Language
• Cohesive Communities

Reflecting on our Business Plan dashboard progress for 2022/23, we:

• Acted to develop a low emissions fleet and built estate, that is climate adapted. Measure status: Amber
• Provided submissions and evidence in relation to environmental governance. Measure status: Green
• Delivered on Diversity and Inclusion, initiating all actions for year one of our ‘All Together’ strategy. Measure status: Green

Looking forward, our new Business Plan includes our priority commitments for the coming year to achieve our new Corporate Plan.

We have included more detail on a number of the above final measure positions as part of the delivery examples from 2022/23 which follow.

Diversity and Inclusion

We want to be an organisation where everyone feels they can participate - recognised as being open to new ideas, perspectives and innovation - inclusive and representative of Wales

Our Diversity and Inclusion strategy set out our approach and in the last year we have:

• worked collaboratively with Environmental Non-Government Organisations (eNGOs) in March 2022 to better understand work taking place working with ethnic minority groups to increase their connection with nature and diversify the environmental sector in Wales.
• facilitated a workshop with senior leaders from eNGOs in November 2022, which explored ways of working and developed long term actions to engage with marginalised ethnic groups. This work will complement the WG Anti-racist Wales Action Plan in working collaboratively, on actions we can take collectively immediately and in the future.
• worked closely with WG, developing action based on evidence from data and “lived experiences” of minority ethnic people from across Wales, including on climate change, rural affairs, and environment.
• involved our Equality, Diversity and Inclusion Forum, which has representation from across our organisation and has provided valuable insight.

We have also made use of our staff networks, which play an important part when developing our policies and procedures helping to make the organisation more inclusive - sharing experiences, knowledge and information. One example of this was the launch of our ‘Work and Wellbeing Passport’. The passport is used by staff looking to explain how work impacts on their personal circumstances, to balance their work and personal life in a better way, supporting a confidential conversation with a manager on this - helping to understand circumstances, discuss, and agree adjustments - contributing to the physical, mental health and wellbeing of staff. The use of the passport was originally instigated by our Carers Network, following good practice shared by Employers for Carers UK, which was recognised as being of potential benefit to a wider group of staff.

To find out more on any of the above, please see our latest Diversity and Inclusion Annual Report

Linked Wales’ Goals:

• More Equal
• Healthier
• Resilient
• Prosperous
• Globally Responsible
• Vibrant Culture and Thriving Welsh Language
• Cohesive Communities

Clare Pillman, Chief Executive and Accounting Officer - 18 October 2023

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