The Environment Strategy for Scotland: Business Regulatory Impact Assessment (BRIA)

Introduction

The Environment Strategy is an overarching strategy, reporting on existing policies and setting out priorities for future policy development.

It is important that the Environment Strategy’s policy priorities take account of the impacts, including cumulative impacts, on business and investment; with an objective of minimising costs, creating conditions for cost savings and bringing new opportunities. Alongside the consultation on the draft Strategy, we set out consideration of the draft Environment Strategy in a Partial BRIA. This has ensured that business and investment interests were considered in finalising the Strategy, and that we have given consideration to how we will work with business as the Strategy is implemented. Following consultation, we have amended the Partial BRIA to produce this Final BRIA. As the Environment Strategy is a holistic strategy with policies in support of its priorities being developed by a wide range of policy areas, this Final BRIA does not include detail of implementation costs of individual measures. Given the potential impacts of businesses, significant new policy proposals that respond to the priorities in the Strategy will be subject to BRIAs. These impact assessments will help mitigate any potential unintended consequences arising from the priorities and proposals in the Environment Strategy.

The Strategy recognises that Businesses have a pivotal role in supporting the economic transformations needed to tackle climate change, nature loss and pollution. There are strong opportunities for businesses to benefit from this transition. We want to support businesses to capture the benefits from embracing sustainable business practices.

The Strategy states that we recognise that government has an important role in creating an enabling environment by helping to ensure that sustainable choices are affordable and practical for businesses, and providing the certainty needed to build business and investor confidence. We must also be able to communicate the benefit for business as we proceed. To do this, in line with the Business Engagement Principles, we need to work in partnership with businesses to understand the opportunities offered by these economic transformations, as well as potential barriers, including costs and any implications for international competitiveness. To support this, we will:

Continue to engage with businesses, their representative bodies and investors, across all relevant sectors and locations, to better understand the opportunities and barriers in adopting

zero, nature positive, circular economy business practices. This will help to ensure that business can contribute to the next steps in this Strategy and have access to the support they need to achieve this. For example, through engaging with businesses, we will seek to build our mutual understanding of:

• Current best practice and opportunities for promoting net zero, nature positive, circular economy business practices;
• Barriers experienced by businesses, particularly small businesses, and support needed to overcome these;
• How to avoid potential unintended impacts for businesses, particularly for small businesses;
• How to maximise the benefits for a wide range of Scottish businesses from this transition e.g. in creating new business opportunities, reducing costs, improving competitiveness and securing access to export markets.