Annual report and accounts 2025-2026
This report sets out how Natural Resources Wales has delivered for people, places and nature across Wales over the past year, including our performance, use of public money and response to environmental challenges.
Chair’s foreword
"Wales needs a confident, ambitious NRW. I believe we are that organisation - and our Annual Report provides a clear account of our performance, the progress we have made, and the scale of the challenge ahead."
Neil Sachdev, Chair, Natural Resources Wales
Read the Chair’s full foreword [LINK to page in accessible PDF version]
Chief Executive Officer’s introduction
“The scale of the challenge facing Wales’ natural resources is clear. We are focused on what matters most and are stepping up delivery across the organisation.”
Ceri Davies, Chief Executive Officer, Natural Resources Wales
Read the Chief Executive Officer's introduction [LINK to page in accessible PDF version]
The scale of the challenge facing Wales
Wales’ natural environment is under increasing strain.
Climate change, pollution, habitat loss and the way we use land and water are all affecting our rivers, wildlife and landscapes.
The State of Natural Resources Report (SoNaRR) 2025 is Wales’ (LINK) official check-up on the health of our environment. It brings together the latest evidence to show what is changing, why it matters, and where action is most needed.
Throughout our Annual Report, you will see SoNaRR alerts. These highlight the most important signals from that evidence - clear, simple indicators of the pressures facing nature.
These alerts include:
- one in five species is at risk of extinction
- only around 40% of rivers, lakes and seas are in good condition
- most habitats are in poor condition
- flood and climate risks are rising
- pressure on water resources is growing
These show, at a glance, the scale and urgency of the challenge. They are not isolated issues - they are connected and affect the whole of Wales.
Performance report
We have made strong progress in delivering our 2025–26 Business Plan, with all commitments progressed. Our work is making a real difference - improving habitats, protecting communities, reducing environmental harm and strengthening regulation.
We have also strengthened how we work. Better evidence, stronger planning and new systems are helping us target our efforts more effectively and will support delivery in the years ahead.
However, the scale and urgency of the nature, climate and pollution emergencies go beyond the resources available to us. We can't deliver the necessary step change alone. Many of the outcomes we are working towards depend on action by others across Wales.
We are responding by changing how we operate. This includes working more closely with partners, focusing on the highest risks and enabling others to deliver alongside us. This approach is reflected in a new well-being objective that we have developed: how we work for nature and people. While some of these approaches are already reflected in this year’s report, we will report on this objective more fully in 2026–27.
Progress has been made in a challenging year. Recruitment and training have put pressure on teams, while demand for our services remains high. At the same time, we are investing in digital systems, data and evidence to support future delivery, which will take time to deliver full benefits.
Overall, we have delivered well, remained focused on our priorities and strengthened our foundations for the future. To go further and faster, we will continue to work with others and develop new approaches that match the scale of the challenges we face.
Read our performance report in full [LINK to page in accessible PDF version]
How we met our well-being objectives
Our work is guided by our Corporate Plan Nature and People Thriving Together, which sets our long-term direction to 2030.
1. Supporting nature’s recovery
We made good progress this year, strengthening protection for nature and involving people across Wales. Long-term recovery will depend on wider action beyond NRW.
Key evidence
- More than 45,000 people engaged through the Natur am Byth Programme to date
- Work delivered across 100 protected sites
- Protected site plans updated and new guidance developed
- Supported national decisions on landscapes, including the Glyndŵr National Park process
Why this matters
More people are involved in protecting nature, and stronger foundations are in place for
long-term recovery.
Read more about our commitments and performance in delivering Well-being Objective 1: Nature is recovering. [LINK to page in accessible PDF version]
2. Building resilience to climate change
We delivered strongly, maintaining flood defences and improving services that help communities prepare for and respond to risks.
Key evidence
- Over 90,000 properties protected by maintained flood defences
- Over 1,000 properties benefitting from flood protection through our capital maintenance work
- Achieved carbon literate organisation silver status
- Developed guidance and digital tools to support renewable energy sector and decarbonisation in industry
Why this matters
Communities are better protected and more resilient to flooding and climate risks.
Read more about our commitments and performance in delivering Well-being Objective 2: Communities are protected from environmental risks. [LINK to page in accessible PDF version].
3. Minimising pollution
We made clear progress in improving water quality and strengthening regulation, with more targeted action and faster decisions.
Key evidence
- 507 farms inspected - falling short of our commitment
- 404km of river improved
- 157 investigations into water quality failures
- More than 95% of enforcement decisions made within three months
- Prioritised high-risk incidents
- Strengthened partnerships to tackle waste crime and fly tipping
Why this matters
Targeted action is improving environmental quality and helping prevent further damage.
Read more about our commitments and performance in delivering Well-being Objective 3: Pollution is prevented and environmental quality is improved. [LINK to page in accessible PDF version]
Governance and accountability
We are accountable to Welsh Government, the Senedd, and the public. Our governance structure includes a Board, Executive Team and independent committees overseeing risk, finance and delivery.
Read our governance and accountability report in full [LINK]
Our people
At 31 March 2026, we employed 2,492 people.
Over the year, we brought in new staff for priority roles. This helped strengthen our services, although it also meant teams spent time supporting and training new colleagues.
We are building a workforce that is flexible and ready for change. We use fixed-term roles, temporary staff and specialist support when we need it. This helps us respond quickly, manage risks and avoid large-scale changes to the organisation.
Key evidence
- Staff turnover stayed stable at 6.3%
- Our gender pay gap remains low at 1.7%
- 76% of colleagues completed Welsh Language Awareness training
Read our people report in full [LINK]
Financial overview
We managed our finances carefully during the year, maintaining a stable position while responding to increasing demand and environmental pressures.
Our total funding was £288 million, made up of:
- £149m from Welsh Government grant-in-aid funding, supporting our core responsibilities
- £139m from charges, specific Welsh Government grants and other income, reflecting our regulatory role and partnership working.
We used these resources to deliver our priorities and maintain essential services across Wales.
Spending was focused on:
- £135 million 41% on staff costs - providing the people and specialist skills needed to deliver
regulation, operations and evidence - £131 million or 40% on operational delivery - including day-to-day services such as flood risk
management, environmental protection and land management - £62m million 19% on capital investment - supporting long-term infrastructure, assets and
improvement programmes
In total, our expenditure was £329m.
Read our finance report in full: [LINK]
Download the report
Annual performance report: looking back on our year 2025-26
Annual Report and Accounts 2025–26 (Full)