The Environment Strategy for Scotland: Fairer Scotland Duty (FSD) Assessment

Fairer Scotland Duty (FSD) Assessment

Title of policy/practice/ strategy/legislation etc: Environment Strategy

Lead Minister: Cabinet Secretary for Climate Action and Energy

Lead official: Tim Ellis

Directorate Division team: Future Environment Division

Title of policy, strategy or programme

Environment Strategy

Summary of aims and expected outcomes of strategy, proposal, programme or policy

The Environment Strategy fulfils Ministers obligation under section 47 of the UK Withdrawal from the EU (Continuity) (Scotland) Act 2021 to prepare and publish an environmental policy Strategy, with section 47 also requiring Scottish Ministers to have due regard to the strategies when making policies, including proposals for legislation.

The Environment Strategy sets out a holistic framework for delivering Scotland’s role in tackling the global crises of nature loss, climate change and pollution. The Strategy brings together the Scottish Government’s existing policy response to tackling nature loss, climate change and pollution, and highlights the importance of carefully managing synergies and trade-offs across these goals. The Strategy builds on these existing policies by outlining new priorities and proposals. These focus, in particular, on opportunities for supporting the economic and societal changes needed to help tackle these global crises in ways that create wider benefits for Scotland – supporting green jobs and industries, improving people’s health, tackling poverty and promoting social justice.

The Strategy sets out steps for supporting and enabling these changes in ways that will transform our country for the better, improving the lives of people across Scotland. The Strategy is designed to capture the wealth of opportunities that transitioning to a green economy, and shifting towards sustainable lifestyles, will create for Scotland’s prosperity and wellbeing – boosting a wide range of green jobs and industries, improving people’s health, tackling poverty and promoting social justice. It recognises the growing international evidence that tackling these crises will rely on transformative economic and societal change. It sets out steps for supporting and enabling these changes in ways that will transform our country for the better, improving the lives of people across Scotland.

Vision and outcomes

The 2045 vision for the Strategy begins by describing our ambitions for fulfilling Scotland’s role in tackling the global crises of nature loss, climate change and pollution, helping to safeguard our shared planet for all life on Earth. The vision also sets out how we will harness the enormous opportunities this creates for Scotland to flourish as a fairer, greener and more prosperous nation.

The vision recognises that tackling these crises will depend on changes in Scotland’s economy and society. This, in turn, can help to transform Scotland for the better – for example by supporting green jobs industries, supporting and enabling people communities in Scotland to live sustainably – in ways that also tackle inequalities and poverty and create wider benefits for people’s health and wellbeing.

The Strategy identifies a set of outcomes to support the delivery of this vision. Four outcomes describe our goals for tackling climate change and restoring the health of our natural environment, in Scotland and overseas:

• Scotland’s nature is protected and restored
• We have ended Scotland’s contribution to climate change
• We minimise pollution and waste in our environment
• Scotland’s global environmental impact is sustainable.

Two outcomes describe the positive transformations in our society and economy that will support these goals, while creating wider benefits for Scotland’s prosperity and wellbeing:

• Scotland’s society is transformed for the better by living sustainably, in harmony with nature
• Scotland’s net zero, nature positive and circular economy thrives within the planet’s sustainable limits.

The Strategy also sets out two cross-cutting outcomes that explain how we will build Scotland’s resilience to the impacts of these global crises and support wider goals for social justice in Scotland and overseas:

• We build Scotland’s resilience to climate change and other global environmental risks
• These transformations are achieved through a just transition, supporting climate and environmental justice and intergenerational equity.

The Environment Strategy presents high-level pathways for driving progress towards the outcomes. These pathways summarise key existing policies while also identifying proposals and priorities to guide future policy development across the breadth of government. The Strategy also sets out arrangements for monitoring and reporting progress towards the outcomes, in order to guide improvements to our approach.

To support the development of the Strategy, we commissioned substantial new research focusing on the economy, society and global outcomes, which have been supported by stakeholder working groups.

Summary of evidence

The Scottish Index of Multiple Deprivation^[1] shows that 14 areas of Scotland have been consistently among the most deprived in Scotland since the 2004 Index of Multiple Deprivation. There is evidence to suggest that people living in more deprived areas are less likely to have access to greenspaces and more likely to suffer from poorer air quality than those people living in less deprived areas^{[2] [3]}. Access to environmental benefits was also raised as an issue in the consultation with many respondents highlighting unequal access to environmental benefits across Scotland, and to ensure that those in rural and deprived areas are not left behind.

This is also supported by the Scotland’s People Annual Report in 2019^[4], which found that adults living in the most deprived areas were less likely to have made any visits to the outdoors in the past 12 months (19%) compared to those in the least deprived areas (4%). This could indicate why adults in the most deprived areas were more likely to have very low activity levels than those in the least deprived areas^[5].

Research^[6] has also found that the lack of access to greenspaces and poor air quality can cause poor mental health and wellbeing, as well as links to specific mental disorders, including possible links^[7] to dementia and cognitive decline. Ill health caused by air pollution is a health inequality issue as it disproportionately affects the most vulnerable members of society, including the very young, the elderly, people with existing medical conditions and those living in deprived urban areas and deprived circumstances.

Consultation responses highlighted that rising energy and transport costs are also seen as particularly challenging for those on fixed or limited incomes. Low-income households are more likely to live in inefficient housing, which is likely to increase the cost of energy and increase the number of people experiencing fuel poverty. This is also evidenced by research conducted^[8][9] on the cost of living and the impact of energy prices on poverty. These issues are also likely to increase health issues.

Employment was also raised by several respondents in the consultation. The responses noted that a just transition will help reshape Scotland’s labour market, creating both new opportunities and risks. However, traditional industries such as agriculture, transport, and fossil fuels may face job losses or skill mismatches.

Lastly, some attendees at the health workshop as part of the consultation highlighted the increasing cost of healthy food as an access issue, with healthy choices more difficult to afford for those with low income. It was argued that this is likely to have a greater impact on those living in more deprived areas.

Consultation

The consultation was launched on Thursday 3 July and closed on Monday 29 September. The consultation was held on the Scottish Government’s Citizen Space website. As part of the development of this Fairer Scotland Duty assessment, a question was included in the consultation on the draft Environment Strategy on the draft Fairer Scotland Duty assessment. This question was included in the consultation to help inform this final version of the Fairer Scotland Duty assessment and the Environment Strategy. The question asked respondents if there were:

“Any positive or negative impacts on groups experiencing socio-economic disadvantage (such as income, low wealth or area deprivation) from the draft Environment Strategy that have not been identified in the draft Fairer Scotland Duty Assessment?”

There were 126 responses submitted to the consultation from individuals and a wide range of organisations, representing a number of groups. However, only a small number of the respondents answered the question on the Fairer Scotland Duty. A number of public engagement sessions were also held with stakeholders. Stakeholders with experiences of poverty attended the engagement sessions. In the equality workshop, feedback was provided on the Strategy and the impacts of those with poverty. The feedback discussed the importance of considering poverty related issues in the implementation of the Strategy.

The following feedback was provided to the question on the Fairer Scotland Duty Assessment. The full analysis of the consultation can be found here.

Consultation analysis

Views on the draft Fairer Scotland Duty were evenly split, with half (49%) of those answering indicating that there could be additional impacts on groups experiencing socio-economic disadvantage from the draft Environment Strategy that have not been identified in the draft Fairer Scotland Duty, with the remaining 51% indicating there were not.

Twenty-seven respondents identified both positive and negative impacts on groups experiencing socio-economic disadvantage. These included unequal access to environmental benefits, the costs of climate policy, employment opportunities, and health and rural impacts.

Access

Many respondents highlighted unequal access to environmental benefits across Scotland. It was suggested that people in urban areas may benefit from investment in public transport and green space enhancement, while those in rural and deprived areas risk being left behind. Respondents also pointed to accessibility barriers for disabled people and older adults, including inadequate infrastructure, digital exclusion, and poor transport connectivity. A few respondents urged the government to adopt an accessibility standard for environmental projects to ensure universal participation and inclusion. Health sector stakeholders at the consultation workshops highlighted the increasing cost of healthy food as an access issue.

Climate policy costs

Many respondents expressed concern that the costs associated with transitioning to net zero could disproportionately impact lower-income households, older people, and those with disabilities. Rising energy and transport costs were seen as particularly challenging for those on fixed or limited incomes. Low-income households are more likely to live in inefficient housing and to experience fuel poverty, and could face higher costs from environmental measures. Attendants of the equality consultation workshop highlighted difficulties faced by single-parent families who have an increased likelihood of fuel poverty. Some respondents and workshop attendees noted that environmental policies should be accompanied by targeted support measures, such as subsidies for energy-efficient upgrades and affordable transportation alternatives, to prevent the deepening of inequality. Others emphasised that cost-benefit assessments within the EQIA should explicitly model these distributional effects. Attendees of the equality consultation workshop suggested that renewable energy plans should address fuel poverty in local communities, citing Harris as an example of a community with fuel poverty while producing a lot of energy that is exported.

Health

Both positive and negative health impacts of environmental change were described by several respondents. Cleaner air, better housing, and increased access to nature were identified as significant public health benefits. Health sector stakeholders at the consultation workshops supported this, emphasising the need for warmer and more sustainable homes that would improve health. Conversely, the physical and mental strain of transition, such as eco-anxiety, disruption from infrastructure projects, or job insecurity, was also highlighted. Respondents suggested embedding Health Impact Assessments more systematically to monitor both immediate and long-term wellbeing outcomes.

Rural areas

Several respondents stressed that rural and island communities face distinct challenges and opportunities. It was felt that geographic isolation, limited infrastructure, and higher living costs can make it harder for residents to benefit from just transition initiatives. Respondents called for rural-proofing all environmental policies and for targeted investment in transport, housing, and local energy systems. Some also noted that crofting and small-scale farming contribute positively to biodiversity and cultural heritage and should be supported as part of a just transition. This is covered in detail under Q17.

Employment

Several respondents noted that a just transition will reshape Scotland’s labour market, creating both new opportunities and risks. Positive impacts could include growth in renewable energy, land restoration, and circular economy sectors. However, traditional industries such as agriculture, transport, and fossil fuels may face job losses or skill mismatches. Others noted that environmental initiatives can help reduce inequalities when designed inclusively. Investment in green skills, local jobs, and community-led projects was viewed as an opportunity to deliver both social and environmental benefits. Respondents urged that retraining and workforce support programmes be explicitly linked to equality goals, ensuring access for women, young people, and those in rural or low-income areas. Health sector stakeholders at the consultation workshops emphasised the need to harness the health benefits of potential employment opportunities.

Community

Positive and negative community-level impacts were described by several respondents. On the positive side, local climate and nature initiatives were seen as strengthening community resilience, promoting volunteering, and fostering collective action. However, others warned of community division arising from controversial projects such as wind farms or low-emission zones. Many respondents stressed the importance of meaningful community engagement and co-design to ensure that environmental actions are locally supported and reflect shared priorities. Some respondents suggested that measures such as community wealth building and devolved governance could strengthen local resilience and help ensure that environmental progress contributes to economic fairness.

Other

Some respondents suggested that people experiencing socio-economic disadvantage, particularly those living in poverty or on low incomes, should be more explicitly recognised in the Equality Impact Assessment. Although socio-economic status is not a legally protected characteristic, it was widely noted that financial hardship strongly intersects with environmental vulnerability. Attendants of the equality consultation workshop suggested that the Scottish Government learn from the lived experience of communities.

Summary

As mentioned above the Environment Strategy aims to improve the wellbeing of everyone in Scotland to ensure that everyone can enjoy the life-supporting benefits the environment provides regardless of their background. This directly links to the outcomes in the Strategy. The Strategy identifies a set of outcomes to support the delivery of its vision. Four outcomes describe our goals for tackling climate change and restoring the health of our natural environment, in Scotland and overseas:

• Scotland’s nature is protected and restored
• We have ended Scotland’s contribution to climate change
• We minimise pollution and waste in our environment
• Scotland’s global environmental impact is sustainable.

Two outcomes describe the positive transformations in our society and economy that will support these goals, while creating wider benefits for Scotland’s prosperity and wellbeing:

• Scotland’s society is transformed for the better by living sustainably, in harmony with nature
• Scotland’s net zero, nature positive and circular economy thrives within the planet’s sustainable limits.

Two cross-cutting outcomes explain how we will build Scotland’s resilience to the impacts of these global crises and support wider goals for social justice in Scotland and overseas:

• We build Scotland’s resilience to climate change and other global environmental risks
• These transformations are achieved through a just transition, supporting climate and environmental justice and intergenerational equity.

These outcomes and their pathways will help to identify the priorities and action needed to increase access to greenspaces and improve air quality, which if targeted appropriately will create significant health benefits and help to tackle inequalities and poverty.

In addition to increasing health opportunities and equalities, the Environment Strategy can also maximise the wider opportunities to create green jobs and businesses, and equip people with the skills needed to access these green jobs. The Strategy will help ensure Scotland’s net zero, nature positive economy positive and circular economy thrives within the planet’s sustainable limits, and harnessing the opportunities this creates for good, green jobs. This can drive significant employment opportunities in Scotland through an increase in the use of renewable energy, such as wind, solar and hydroelectric power. This could provide employment opportunities for those in remote areas, helping to reduce economic inequalities and provide long-term sustainable job opportunities.

Moving to a green economy will also help our transition to net zero, increase access to environmental spaces and reduce emissions, which will help to improve air quality. These outcomes will play a vital role in removing health inequalities in Scotland, especially for those living in more deprived areas. The Strategy will also help to take inequalities and poverty by:

• Promoting clean heat and sustainable transport, which will help to tackle fuel and transport poverty.
• Empowering and enabling people to shift towards sustainable lifestyles, which will create opportunities to save money and reduce bills, for example through home energy efficiency, avoiding food waste, buying second hand and using active travel and public transport.
• Improved mental and physical wellbeing from enhanced access to quality greenspaces and active travel infrastructure.

The approaches set out in the Strategy will also provide multiple opportunities to help tackle poverty and inequalities in Scotland. Policy priorities in the Strategy that will help tacking poverty and inequality include promoting:

• the creation of good, green jobs and a skilled workforce;
• reductions in fuel and transport poverty;
• tackling diet-related health inequalities;
• ensuring everyone can experience the life-enhancing benefits of access to nature and a clean environment.

The priorities set out in the Strategy for the transformation of our economy and society are set firmly in the context of a just transition, which will help to tackle poverty and inequalities. The Strategy’s priorities also promote health and wellbeing benefits, from cleaner air, warm homes and safer streets to access to greenspace and supporting active lifestyles and healthy, sustainable diets.

However, there are possible unintended consequences from the Environment Strategy that could lead to rising prices in the shorter term from transition costs if these are not mitigated against. Some of the potential costs, that were flagged during the consultation, included higher energy prices and transport costs. It will also be important to ensure that those living in more deprived areas are given opportunities to benefit from investment in public transport and green space enhancement, to ensure they are not left behind.

Another unintended consequence that was highlighted in some of the consultation responses was on the potential impact from the growth in renewable energy, land restoration, and circular economy sectors, and the potential impact on industries such as agriculture, transport, and fossil fuels which could cause job losses or skill mismatches in the short term. It is essential that these unintended consequences are mitigated against in the design of the proposals and priorities to prevent some of the potential unintended consequences on those suffering socio-economic disadvantages.

Summary of assessment findings

The Environment Strategy summarises key existing policies while also identifying proposals and priorities to guide future policy development across the breadth of government. The Strategy includes explicit consideration of fairness, with a commitment to ensuring benefits are shared widely, through a just transition. This means equipping people with the skills needed to secure high-value jobs in green industries, while also providing job security for those in industries that will play the biggest part in the transition. It also means empowering community-led action and supporting public participation. In parallel with a just transition, the Strategy commits to supporting climate and environmental justice, in Scotland and overseas, and intergenerational equity. The policy priorities set out in the Strategy that could help reduce poverty, include:

• Creating high-quality jobs, one of the strongest drivers for reducing poverty;
• Reducing housing and energy costs by improving the energy efficiency of our homes;
• Providing accessible, low cost transport;
• Improving access to affordable, healthy food;
• Increasing access to nature, clean air and a healthy environment;
• Increasing community-led action.

The Environment Strategy will provide a positive impact on everyone in Scotland and there will be a benefit to those individuals who live in poverty through greater access to greenspaces and improved air quality. However, it is recognised that there may be unintended impacts which will need to be mitigated against, as well as potential opportunities that have not yet been identified. As mentioned in this assessment, these unintended impacts could arise from rising prices in the shorter term from the costs of transition, which could be passed on to public in higher energy bills and transport costs.

Further proportionate assessments of the implementation of actions to support the aim of the Environment Strategy will also be undertaken during their design and implementation, to ensure all types of socio-economic disadvantages are considered. This will be taken forward through the Strategy’s governance and delivery framework to enable a wide range of input from key stakeholders and sectors including those with experiences of poverty. These assessments will help play a vital role in preventing some of the potential unintended consequences on those suffering socio-economic disadvantages, whilst also in realising the potential benefits to those experiencing poverty. These considerations will be important in the implementation of the Strategy’s priorities.

Sign off

Name: Tim Ellis

Job title: Deputy Director, Future Environment Division

Date: 12 February 2026