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

Section 2: Engagement and information gathering

Engagement approach

We sought engagement with a wide range of stakeholders, including business and investment interests. We had some useful and constructive discussions with business interests. However, we understand that some business interests do not have the capacity to engage with all government developments, and prioritise policy developments that could have a material impact on their activities, particularly if such impact could be imminent. For this reason, we think it is important that there is further discussion with business interests as policies in support of the priorities in the Strategy are developed. We have also included in the Strategy proposals for further engagement with business about the opportunities and challenges presented by the Strategy’s vision. It is important that business is involved in the design of policies to ensure that they are effective and minimise impacts and costs.

Internal SG engagement/ engagement with wider Public Sector

Internal SG engagement

In the development of the Environment Strategy a series of engagement sessions have been completed with colleagues across the Scottish Government to summarise key existing policies while also identifying proposals and priorities to guide future policy development across the breadth of government.

As we continue to implement the priorities and proposals in the Strategy and the monitoring the implementation of these, we will continue to work closely with colleagues across the Scottish Government and stakeholders from a wide range of sectors, including businesses.

UK/ Devolved Administrations

There has been regular contact between the Scottish Government and the UK Government and other Devolved Administrations on many of the policy areas covered by the Strategy. This covers policy coordination in many areas where cross border flows or impacts are important, consideration of the interaction of reserved and devolved powers, and learning from policy approaches that have been effective. The closest comparable strategy is the 25 Year Environmental Plan required by the UK Environment Act 2021, although this has a somewhat different scope from our Strategy. We will continue our engagement with the UK Government and other Devolved Administrations in the implementation and monitoring of the Environment Strategy.

Wider Public Sector

To assist the development of the Strategy we have worked very closely with public bodies, including NatureScot and SEPA, as well as local authorities through our relationship with COSLA. Public authorities and local authorities will help play a key role in the implementation of the Environment Strategy and monitoring and reviewing the delivery of the Environment Strategy. This engagement will continue as we implement and monitor the priorities and proposals in the Strategy.

International

Through our research, we have been able to learn from experience of effective policy approaches in other countries. We have also benefited from developing thinking in international fora such as the International Panel on Biodiversity and Ecosystem Services, which draw on expertise from individual countries.

Business / Third Sector engagement

As referenced above, during the development of the Environment Strategy we had initial discussions with a number of business groups to understand the possible implications on businesses from the Environment Strategy. During these sessions, business representatives thought that a framework for environmental policies could be useful to aid policy cohesion, understood the role of the Strategy in setting priorities for future policy making and thought that a Partial BRIA would be useful to inform their understanding of potential impacts and thus their response to the consultation. We have sought to add clarity to the Strategy about its scope and role, and potential opportunities for and impacts on business. We also drafted an early version of this Partial BRIA to inform business consideration of the consultation draft.

We have also worked with policy teams in the Scottish Government to understand the potential impacts from policies, regulations and schemes on business and investment.

We will continue to work with businesses during the implementation and subsequent monitoring of the priorities and proposals in the Strategy and encourage the relevant policy teams to work with businesses, where necessary, to assess the impact of individual policies, regulations and schemes within policy areas on businesses.

Public consultation

A public consultation was held from 3 July 2025 to 29 September 2025 to obtain the opinion of individuals and organisations on the draft Environment Strategy and the possible impact of the Strategy. Responses were sought on the consultation through the completion of a questionnaire hosted on the Scottish Government’s Consultation Hub, Citizen Space. The consultation documentation also included the partial-BRIA along with online links to the other impact assessments including the Consumer Duty Impact Assessment. Some of the responses to the question on the Consumer Duty Impact Assessment have been considered as part of this partial-BRIA, as many of the responses focused on the costs of goods and services provided by businesses rather than public authorities, as required by the Consumer Act 2020.

There were 126 responses submitted to the consultation from individuals and a wide range of organisations including businesses. A number of public engagement sessions were also held with stakeholders to discuss the draft Environment Strategy, including a session with business representatives. A summary of the responses to the questions on the draft Partial-BRIA can be found under the related questions below. The full analysis of the consultation can be found online.

Question 21: Are there any positive or negative impacts from the draft Environment Strategy on businesses that have not been identified in the partial BRIA?

Less than half (44%) of those answering Q21 felt there could be additional impacts from the draft Environment Strategy on businesses that have not been identified in the partial BRIA. The remaining 56% indicated they did not anticipate additional impacts.

Thirty-six respondents provided a range of views on the potential impacts of the draft Environment Strategy on Scottish businesses, including both opportunities and challenges. Many respondents agreed that while the draft Strategy could open new markets and promote sustainable innovation, the partial BRIA does not yet capture the full scope of these effects, particularly for SMEs and sector-specific industries.

Positive impacts

Many respondents viewed the draft Strategy as an opportunity for innovation, local economic renewal, and new green markets. Several noted that the transition to a circular economy and sustainable resource management could stimulate job creation, particularly in manufacturing, ecological consultancy, landscape design, and tourism. Some respondents highlighted opportunities for SMEs and local supply chains, particularly in rural and island areas. Renewable energy, restoration services, and community-based initiatives were seen as areas of growth. A few respondents suggested that businesses actively integrating biodiversity restoration or nature-based products could strengthen their brand value, resilience, and competitiveness. A small number pointed to export advantages for early adopters of sustainability standards, particularly where alignment with EU markets could be demonstrated.

Negative impacts

The most prevalent theme, identified by many respondents, was concern over the regulatory burden for SMEs. Several respondents noted that small businesses have limited capacity to manage compliance, reporting, and transition costs, particularly in fishing, aquaculture, farming, and tourism. Several respondents identified cumulative regulatory costs, arguing that overlapping environmental requirements, for example, circular economy and biodiversity measures, could have disproportionate financial and administrative impacts.

Some respondents mentioned sector-specific pressures. Fishing and aquaculture respondents noted potential impacts from marine spatial planning and offshore energy developments; agriculture respondents raised issues around fertiliser scarcity and compliance with environmental standards; and a hospitality and holiday park body noted unique cash-flow and infrastructure constraints. A few respondents highlighted regional disparities, with rural, island, and coastal businesses expected to face higher adaptation costs due to infrastructure and logistics limitations. Two respondents noted uncertainty and transition risks, arguing that ambiguity around policy timelines could discourage investment and job creation in emerging green sectors.

Views on the partial BRIA

Many respondents stated that the partial BRIA did not fully reflect the urgency or breadth of business impacts. These respondents expressed the view that it underestimates challenges faced by smaller enterprises, does not sufficiently assess cumulative effects across overlapping policy areas, and lacks detail on sectoral variation. Several respondents felt that the partial BRIA overemphasised opportunities in ‘green growth’ sectors while failing to analyse negative or transitional effects in existing industries, such as farming, seafood, and rural tourism. A few respondents recommended that future iterations of the BRIA include scenario analysis, sector-specific modelling, and quantitative estimates of compliance costs.

Mitigation and recommendations

Several respondents suggested mechanisms to help businesses manage transition risks, including funded transition plans and proactive risk mapping, multi-year predictable funding support for small rural and island enterprises, clearer policy guidance to reduce uncertainty, and targeted grants, technical assistance, and tax incentives for SMEs adopting low-carbon or circular practices. A few respondents emphasised the need for collaboration between business and government, including co-design of future regulatory frameworks, adaptive management processes, and real-time monitoring of impacts.

Question 22: Do you have any further views on the partial BRIA?

Additional comments on the partial BRIA were provided by 34 respondents. These typically reiterated the themes raised in detail in Q21; however, there were additional positive comments, and an additional theme focusing on evidence and modelling.

Positive comments

Some respondents described the BRIA as a ‘solid foundation’ for identifying regulatory and economic impacts, and commended its recognition of opportunities in green innovation, circular economy development, and low-carbon transitions. A few respondents welcomed its potential to support export growth, competitiveness, and job creation through the adoption of sustainable practices and new technologies. However, even these supportive respondents noted that these benefits were expressed at a high level of generality, and requested more detailed examples or case studies to build confidence among businesses and investors.

Evidence and modelling

A few respondents stated that the partial BRIA lacks sufficient quantitative evidence to substantiate its claims about economic benefits or costs. These respondents requested stronger use of modelling, including cost-benefit analyses, scenario testing, and longer-term projections of both risks and savings. A few respondents recommended integrating the BRIA with the Monitoring Framework to ensure that business impacts can be tracked and evaluated over time.

Other stakeholders

In addition to those stakeholders mentioned above, we have also met a large number of environmental NGOs, academics and charities in the development of the Environment Strategy. We will continue to engage with these stakeholders as we implement the priorities and proposals in the Environment Strategy and the monitoring of these.