Forestry and Land Scotland - draft corporate strategic plan 2026-2030: consultation

4. Our operating environment and how it is changing

In developing this draft plan, FLS analysed the external operating environment to take account of emerging trends and changes. This included policy and PESTLE analyses, and multiple discussions with stakeholders. A non-exhaustive summary is presented below:

Political opportunities

• Broad support for our core objectives.
• As SG Agency we can lead by example (e.g. UK Woodland Assurance Standard).
• Land Reform – we are experienced with community involvement / ownership / access.
• Government commitment to PSR (Public Sector Reform).

Political threats

• Challenging public sector finances whilst we deliver PSR.
• Possible future policy change (e.g. UKG on climate)

Economic opportunities

• Long-term rising demand for products (e.g. wood, energy).
• Potential to fund natural capital and recreation services from commercial opportunities.

Economic threats

• Cyclical market instability in our key products.
• Climate impact on seasonality of our work making it more costly.
• Income growth will be medium term but relentless immediate cost pressure

Social opportunities

• Health and wellbeing (we manage forests near areas of social deprivation).
• Opportunities for communities to make best use of areas of Scotland’s National Forests and Land (SNFL) and contribute to national outcomes and objectives
• Educational and engagement programmes value forests.

Social threats

• Limited societal understanding of the practice/value of forestry and its wider environmental benefits
• Limited community capacity to enable local projects and agreements
• Constraints in rural skills and housing makes it difficult to find employees and contractors.

Technological opportunities

• Increased opportunities for SMART forestry.
• Innovation and data-driven decision making.
• AI and automation.

Technological threats

• High implementation costs of technologies.
• Organisational change capacity.

Legal opportunities

• Regulatory frameworks supportive of our objectives.

Legal threats

• Regulatory changes can be hard to keep up with.
• Compliance costs are increasing across the board.

Environmental opportunities

• Biodiversity enhancement initiatives could benefit our land.
• We are developing capacity on climate change mitigation and adaption.
• Peatland restoration – we have a lot of peatland.

Environmental threats

• Climate and biodiversity twin crises threaten habitats and species.
• Pests and diseases
• Windfarms and networks challenge forest management.
• Soil / water conservation more difficult in changing climate.