Climate change - Scottish National Adaptation Plan: annual progress report 2024-2025

Economy, Business and Industry (B)

SNAP3 Outcome: Economies and industries are adapting and realising opportunities in Scotland’s Just Transition

Climate change poses profound risks to our economy. This chapter sets out four objectives that collectively focus on how Scotland can build resilience to the economic impacts of a changing climate and maximise the innovation opportunities for businesses, people, and communities.

During the reporting period:

• Adaptation Scotland has provided training, support and new resources to over 100 businesses and business advisors, with advice now easily accessible via FindBusinessSupport. The new SME Climate Resilience Checklist, accessed over 900 times, offers practical guidance on preparing for extreme weather. The programme has also worked with industry leaders in wholesale, Scotch whisky, and environmental horticulture to explore climate change impacts, adaptation options, and new market opportunities.
• Scottish Enterprise (SE) launched a refreshed Net Zero Accelerator diagnostic tool in April 2025 to help businesses assess their carbon impact and climate readiness, including dedicated questions on climate adaptation. Adaptation will also be embedded in Scottish Enterprise’s Operating Plan 2025–26, reinforcing SE’s commitment to supporting sustainable business growth. Additionally, the Net Zero Plan 2025–26 will aim to raise awareness and gather evidence on adaptation-related risks and opportunities among SE-supported businesses.
• The Scottish Government has been reshaping support for farming and food production to deliver our Vision for Agriculture and lead in sustainable, regenerative practices. Through the Agri-Environment Climate Scheme, £7.1 million will be awarded in 2025-26 and the First Minister announced £14 million for the Future Farming Investment Scheme, supporting capital projects that boost efficiency and climate- or nature-friendly farming. From 2025, stricter conditions will apply to agricultural payments, requiring farmers and crofters to adopt more climate- and nature-friendly practices, and recent research has identified on-farm actions for climate adaptation to inform future support.
• Forestry Scotland’s Routemap to Resilience, published in March, outlines priority actions to protect Scotland's forests from climate change and create resilient woodlands. In 2024, 1.4 million hectares of forest were surveyed for key pests and diseases, resulting in 203 Statutory Plant Health Notices.
• The Scottish Government published it’s Biodiversity Investment Plan in February, outlining its approach to supporting investment in nature for biodiversity and climate adaptation. The Ecosystem Restoration Code is now in development, with stakeholder engagement underway between May and July 2025. This, along with insights from the recent CivTech Challenge 8.6 with CreditNature, will shape a high-integrity code and process for issuing nature credits to help attract responsible private investment into ecosystem restoration.
• Innovation in adaptation is being supported through initiatives like the third round of the Facility for Investment Ready Nature in Scotland (FIRNS), launched in April 2025, with grants to be awarded in June. This round offers grants of up to £240,000 to organisations and partnerships to develop investment-ready projects, including creating viable business cases and financial models, to attract investment in nature restoration.
• Scottish Government is supporting the aquaculture industry through energy and resource efficiency, aligning with the Vision for Sustainable Aquaculture, and will work with the sector to develop Climate Resilience Plans for 2029. In response to the Scottish Parliament’s salmon farming inquiry, Scottish Ministers outlined actions to address climate impacts and improve fish health.
• Scottish Government is continuing to promote its Sustainable Procurement Tools to help identify climate risks and opportunities in projects. In addition to tools, guidance and case studies, the tools host a range of free of charge e-learning including Climate Literacy and Circular Economy modules. Over 1,400 individuals have completed Climate Literacy training. The £175 million national mobile device framework tender had a supply chain resilience question covering climate risks and work is underway to assess how these considerations may be routinely included in relevant contracts.

B1.1 – Businesses monitoring climate related risks

Description: This indicator shows the percentage of businesses in Scotland who are reporting assessing climate change related risks^[20]

Data source: Business Insights and Conditions Survey

Ambition: Increasing over time

In 2024, 22.9% of businesses reported that they had assessed climate change related risks, broadly in line with 20.6% reporting this in 2023.

Business action in relation to monitoring climate risks can make them more prepared for and able to respond to climate change impacts, such as severe weather events.

In 2024, the most common climate related risk assessed by businesses was risks to supply chain disruption (16.4% of businesses). Almost one in ten (8.5%) businesses had assessed risks from increased flooding, while fewer had considered risks from temperature increases (5.3%), water scarcity (1.6%) and coastal erosion (1.5%).

B1.2 – Businesses taking action to adapt to the effects of climate change

Description: This indicator shows the percentage of businesses in Scotland reporting taking action to adapt to effects of climate change^[21]

Data source: Business Insights and Conditions Survey

Ambition: Increasing over time

In 2024, 15.2% of businesses reported that they had taken action to adapt to climate change, broadly in line with 13.8% in 2023.

Business action in relation to adaptation can make them more resilient and prepared for climate hazards, thereby reducing vulnerability.

Approaching one in ten (9.8%) of businesses in 2024 reported haven taken action around supply chain disruption and distribution. Slightly fewer reported action around the risk of increased flooding (4.6%) and temperature increases (3.7%), with just 1.1% reporting they had taken action around water scarcity risks.

B2.1 – Proportion of agricultural land under management under Agri- Environment Climate Scheme

Description: This indicator shows the proportion of agricultural land under management contracts which include adaptation related measures.^[22]

Data source: Scottish Government

Ambition: Increasing over time

In 2024, 849,396 hectares of agricultural land were managed under the Agri-Environment Climate Scheme (AECS) contracts for the options included in the indicator (all options measured in hectares through the scheme, including the organic conversion and maintenance options). This was an increase from the previous year when 804,540 hectares were covered.

The Agri-Environment Climate Scheme is the Scottish Government’s key mechanism providing support for land managers to undertake actions which protect and enhance Scotland’s magnificent natural heritage, improve water quality, manage flood risk, preserve historic sites and mitigate and adapt to climate change. This indicator does not capture actions which take place outside of the scheme, and so may not provide a full picture of agricultural resilience in Scotland.

B2.2 – Proportion of Forest Plans revised under the new edition of the UKFS

Description: This indicator measures the proportion of Forest Plans (private and public sector) revised under the new edition of the UKFS as a percentage of area under forest plans.

Data source: Scottish Forestry

Ambition: Ensure all future approved plans and amendments comply with the new edition of UKFS after the ‘go-live’ date in October 2024

Forest plans are one of the principal tools used to manage long-term change in the forest resource. The UK Forestry Standard (UKFS), the UK technical standard for sustainable forest management underpins all Forestry Grant Scheme (FGS) and Felling Permission approvals, and all Forestry Environmental Impact Assessment determinations. Scottish Forestry are supporting the implementation of the updated UKFS (version 5), including training. The updated Standard was reviewed and revised with stakeholders to ensure, amongst other things, that compliance with the Standard increases the resilience of the forest resource. Scottish Forestry approvals will require compliance with the updated Standard from 1 October 2024.

As of 2024 0 hectares of forest plans had been revised under the new edition of the UKFS. From 2025 onwards all approvals made to forest plans will be under the new addition to UKFS and this indicator will be updated annually to monitor the trend in the proportion of forest plans revised under the new edition.

B2.3 – Commercial fish stocks fished at sustainable levels

Description: This index measures our confidence that Scottish fish stocks are being fished sustainably

Data source: ICES^[24]

Ambition: Increasing or maintaining over time

The index of sustainable fishing in Scotland stood at 72.79% in 2023. This represents an increase since 2019, when the index was 59.85%.

This indicator is relevant to resilience of Scotland’s fishing industry. When combined with indicators 2.4 and 2.5 it represents a measure of whether fishing vessels are able to continue to find a market for their fish, are able to fish sustainably, and able to stay in profit.

B2.4 – Tonnage and value of fish stocks landed

Description: This indicator shows the tonnage and real value of fish stocks (in £) landed by Scottish vessels

Data source: Scottish Government, Scottish Sea Fisheries Statistics, HMT's GDP deflators at market prices as at March 2024

Ambition: Increasing or maintaining over time

In 2023 500,875 tons of fish was landed by Scottish vessels. The value of this was £683,155. Tonnage has increased since 2019. However, real value decreased in 2020, before increasing again, but remains at lower levels, when adjusted for inflation, than in 2019.

The tonnage and value of fish landed is made up of a variety of different species with different trends over time. The value shown here is the real value has been adjusted by inflation. Many key commercial fish species are controlled by quotas, which limits the volume of commercial catch in any year to help preserve fish stocks. This will impact on the tonnage and value caught per species and the overall tonnage and value. The average price per tonne varies considerably by species. In 2023, the average price per tonne of Lobster was £15,103. Whereas, the average price per tonne of Blue whiting was just £249. Typically, pelagic species, like Mackerel, Herring and Blue whiting are caught in large volumes and have a lower price per tonne. Shellfish species are typically caught in smaller volumes and have a higher price per tonne. Hospitality closures due to Covid-19, in 2020 and to a lesser extent in 2021, resulting in a loss of trade and markets particularly affected the shellfish sector.

Relevant to resilience of Scotland’s fishing industry. When combined with indicators 2.3 and 2.5 it represents a measure of whether fishing vessels are able to continue to find a market for their fish, are able to fish sustainably, and able to stay in profit.

B2.5 – Operating profits for fishing fleets

Description: This indicator shows the real annual operating profit (£) for Scottish fishing vessels fleets

Data source: Seafish, Economies of the Fishing Fleet data (nominal operating profit per vessel), Economics of the UK Fishing Fleet 2023 — Seafish (nominal operating profit per fishing fleet segment), and HMT’s GDP deflators at market prices as at March 2025 (deflators)

Ambition: Increasing or maintaining over time

Average operating profits per vessel increased in Scotland in 2023 compared to previous years, and are in keeping with annual fluctuations seen since 2020. In 2023, the average operating profit per vessel in Scotland was £121,000.

Larger fishing vessels over 24 metres had the highest profit by fishing fleet segment, with average operating profits of £1,370,000 in 2023. This figure has been increasing in real terms since 2020. In comparison, vessels under 10 metres recorded average operating profits of £14,000, in keeping with the trend since 2020. Vessels between 10-24 metres in length recorded average operating profits of £30,000, which represents an increase in real terms in operating profit compared to 2022, but a decline in real terms compared to 2020 and 2021.

This indicator is relevant to the resilience of Scotland’s fishing industry. When combined with indicators 2.3 and 2.4, it represents a measure of whether fishing vessels are able to continue to find a market for their fish, fish sustainably, and stay in profit.

B2.6 – Aquaculture - Fish survival to harvest

Description: This indicator shows the percentage of finfish biomass across the entire aquaculture production cycle that survives to harvest

Data source: Scottish Fish Farm Production Survey

Ambition: No decrease in % over time

68.7% of the 2021 yearclass of fin fish across the aquaculture production cycle survived to harvest, down from 75.9% of the 2020 yearclass.

This indicator is relevant to resilience of Scotland’s aquaculture industry. Survival to harvest can be impacted by climatic factors. No decrease would indicate that the aquaculture sector is adapting to the additional pressures of climate change.

B4.1 – Reported disruption to supply chains as a result of severe weather event

Description: This indicator shows the percentage of businesses in Scotland reporting disruption to supply chains as a result of a severe weather event

Data source: Business Insights and Conditions Survey

Ambition: Decreasing over time

Data for this indicator began being collected in 2024. In 2024 15.8% of businesses in Scotland reported disruption to local supply chains as a result of severe weather, with a smaller proportion (6.4%) reporting disruption to global supply chains.

Businesses which are more resilient to climate change should be less vulnerable to supply chain disruption as a result of severe weather events.

This indicator will be updated annually to allow an assessment of trends in supply chain resilience over the SNAP3 period and beyond.