Annual report and accounts 2025-2026

Our annual report and accounts sets out how we have delivered for people, places and nature across Wales during 2025-26.

The report explains:

• the progress we have made against our priorities
• how we have used public money
• the challenges facing Wales' environment
• the impact of our work to protect communities, improve environmental quality and support nature recovery

Read Annual report and accounts 2025-26 (PDF 49MB not fully accessible).

Chair’s foreword

Neil Sachdev, Chair, Natural Resources Wales:

"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."

Read the Chair’s full foreword.

Chief Executive’s introduction

Ceri Davies, Chief Executive Officer, Natural Resources Wales:

“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."

Read the Chief Executive Officer’s full introduction.

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 putting pressure on our rivers, wildlife and landscapes.

The State of Natural Resources Report (SoNaRR) 2025 is Wales’ 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. They show where Wales faces the greatest environmental pressures and why action cannot wait.

Amongst the key evidence is:

• 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 alerts show, at a glance, the scale and urgency of the challenge.

These are not separate issues.

When water quality declines, wildlife suffers. When habitats are damaged, communities become less resilient to climate change. When climate risks increase, pressure on land and water grows.

The SoNaRR alerts provide the context for everything in this report. They help explain why our work matters, where progress is being made and why Wales needs action at greater pace and scale.

Performance report

This year we delivered across all our business plan commitments and continued to invest in the systems, people and evidence needed for the future.

Our work helped to:

• improve habitats and protect wildlife
• reduce environmental harm
• strengthen regulation and enforcement
• improve flood protection
• support renewable energy and decarbonisation
• make better use of evidence and data in decision making 

However, environmental challenges are growing faster than available resources.

To have a bigger impact, we need to work differently - focusing on the highest risks, working more closely with partners and helping others take action alongside us.

Read our performance report in full.

How we met our well-being objectives

Our work is guided by our our corporate plan to 2030: nature and people thriving together.

1. Supporting nature’s recovery

We made good progress this year, strengthening protection for nature and involving people across Wales. Nature recovery takes time, but we are making progress.

What we achieved

• More than 45,000 people engaged through the Natur am Byth programme to date
• Work delivered across 100 protected sites
• Updated protected site plans and developed new guidance 
• 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 how we are helping nature recover.

2. Building resilience to climate change

Floods, droughts, storms and wildfires are becoming more common. We delivered this year by helping communities prepare for and respond to these risks and adapt to a changing climate.

What we achieved

• Protected more than 90,000 properties through NRW maintained flood defences
• Improved protection for more than 1,000 properties 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 how we are building climate resilience.

3. Minimising pollution 

Clean water, healthy ecosystems and thriving communities depend on reducing pollution.

This year we targeted the highest risks and strengthened our regulatory approach, with more targeted action and faster decisions. We performed well although one of our targets was missed.

What we achieved

• 507 farms inspected - falling short of our commitment
• 404 kilometres of river improved
• 157 investigations into water quality failures
• Over 95% of enforcement decisions made within 3 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 work to minimise pollution.

Governance and accountability

We are accountable to Welsh Government, the Senedd, and the people of Wales.

Our governance arrangements includes a Board, Executive Team and independent committees overseeing risk, finance and delivery.

Read our governance and accountability report in full.

Our people

On 31 March 2026, we employed 2,492 people across Wales.

They are at the heart of everything we do, from protecting communities during floods to restoring habitats and tackling pollution.

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.

Highlights

• Staff turnover remained low at 5.7% (6.3%)
• Our gender pay gap remains low at 1.7%
• 76% of colleagues completed Welsh Language Awareness training
• Around 23% of colleagues are fluent Welsh speakers

Read our people report in full.

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 (90%) on operational delivery - including day-to-day services such as flood risk management, environmental protection and land management
• £62 million (19%) on capital investment - supporting long-term infrastructure, assets and improvement programmes

In total, our expenditure was £329 million.

Read our finance report in full.

Download the report

Annual Report and Accounts 2025-26 (PDF 49MB not fully accessible)