Four Year Plan

Transcription

1 Four Year Plan

2 Contents Chief executive s foreword 3 Section one our strategic intentions 4 Working as a natural resources system 4 Our long-term goals 6 Strategic priorities 6 Our environment 8 Who we work for 8 Our people and resources 8 Natural capital 9 Our four year plan 10 Four year excellence horizon 14 Section two priority work programme 18 Priority area: Resource management system 18 Priority area: Climate change 21 Priority area: Marine 23 Priority area: Information, communication and technology 25 Priority: Fresh water 29 Supporting our shifts 31 Non-departmental funding 32 Workforce strategy 35 Workforce Characteristics 35 Workforce Capability Picture: 2017 to Priority Workgroups 41 Capital and asset management intentions Strategic risk and assurance 48 Appendix A: Natural resources system 49 Appendix B: Strategy on a Page 51 Ministry for the Environment Four Year Plan

3 Chief executive s foreword Our purpose, as an organisation, is to make New Zealand the most liveable place in the world for our children, their children and their mokopuna. Using liveable puts our customers (all New Zealanders) at the heart of our work and recognises the critical role that our environment plays in all aspects of our lives. A thriving environment underpins our economic prosperity. It contributes to our health and our physical well-being and is central to what it means to be a Kiwi. By thinking about the environment in the context of all the factors that make Aotearoa liveable, we can design solutions that will make a bigger impact to people s lives, be easier to implement, and get more buy-in and support from the people we work with. We live in one of the most incredible places on earth. Yet, as the Ministry s environmental reporting series shows, our environment is facing serious challenges. We have an obligation to rise to those challenges to ensure our economy and society continue to thrive. Across the New Zealand public sector there is a move to more open, customer-centric and datadriven government that is focused on delivering results. Our size and connections across the system put the Ministry for the Environment in a strong position to be at the forefront of this shift. We are building the capability of the Ministry to be at the cutting edge of how policy is done in this country so that we can deliver the best results for New Zealanders. This includes drawing in the expertise and resources of others through purposeful engagement, using more than regulation to solve problems, and underpinning our case with compelling data and information that inspires and focuses action. Because the environment effects and is affected by so many of the decisions we make as a country, we have to take the broadest possible perspective, and often broker solutions across differing viewpoints. Our relationships with iwi and Māori organisations provide a platform for the Crown to work with Māori to offer unique solutions to issues that matter to New Zealanders. This unique view means we have an opportunity to influence the other important actors communities, business and others. We are continuing to work towards our four year excellence horizon, in the context of government and natural resource system priorities and our agreed long-term outcomes. On top of our programme delivery, over the next four years we have a particular focus on building a culture that values and fosters thought leadership and policy entrepreneurship, and takes this thinking out across the system. Success will see us meeting the economic goals set out in the Business Growth Agenda while maintaining the cultural, social and recreational benefits we get from our environment for generations to come. I am looking forward to making significant process over the next four years. Vicky Robertson Secretary for the Environment Ministry for the Environment Four Year Plan

4 Section one our strategic intentions Working as a natural resources system New Zealand s natural resources make a significant contribution to our economy and are integral to our sense of wellbeing and our cultural identity. Our natural and built resource base is a source of our global competitive advantage New Zealand trades on its international reputation for producing safe, cheap food and having a clean and green environment, including for tourism, and our low cost of production. As a resource-based economy with a strong environmental brand, we will manage and invest in our resources carefully to ensure we sustain economic growth in a socially and environmentally sustainable and enduring way that also provides for future prosperity. This is because economics and the environment are inseparable you cannot have a strong economy without a healthy environment. The Natural Resources Sector The Natural Resources Sector is a group of eight government agencies with the shared goal of investing in our natural and built resource base as a source of a global competitive advantage. We work together to lead the natural resources system to achieve specific outcomes in five areas: climate, land, water, oceans and biodiversity. We do this by: Working with partners throughout the natural resource system from the start Ensuring that everyone in the system has the information and data they need for better decision-making, investment and innovation Ensuring maximum value is gained from user-friendly and strategic science and research programmes that are aligned with long-term needs. We work together to support the Government s Business Growth Agenda (BGA) Natural Resources goal. The current focus is to invest in our natural and built resource base as a source of global competitive advantage. This contributes towards the wider BGA focus on increasing the ability of firms to succeed on the world stage, to underpin progress towards a more diversified and resilient New Zealand economy. Ministry for the Environment Four Year Plan

5 NRS Strategic Priorities The NRS has recently looked again at our strategic priorities in light of our stewardship responsibilities and the changing global context. The current NRS outcomes are shown in the diagram below. For the broader NRS work programme, see Appendix A. Ministry for the Environment Four Year Plan

6 Our long-term goals Our purpose, as an organisation, is to make New Zealand the most liveable place in the world for our children, their children and their mokopuna. That will come from having a deeper understanding of how we depend on nature to thrive and continuing to strengthen our stewardship role. Last year, we set out our plan to 2045 to create a more prosperous economy and society by improving the way we manage the environment. Our long-term goals remain unchanged. Over the next four years we will continue to focus on: enabling people to act in a way that benefits society and the environment optimising how we use the environment and natural resources now and in the future managing risks to people and the environment safeguarding the environment s capacity to sustain itself We focus on six domains, air, atmosphere and climate, water, land, marine and urban, and recognise that the environment operates as a system, and therefore, we are increasingly looking at interventions that have benefits across a number of areas. Strategic priorities To enable us to reach our long-term goals and create the most value for New Zealand we will focus on: Taking a System view Data and information to enable better decision-making Engagement to influence and broker action and to inspire all New Zealanders to value our natural assets Our work is underpinned by Te ao Māori (incorporating a Māori perspective in our work); and a natural capital approach that explicitly puts a value on our natural resources so the true costs of resource use can be factored into decision making. These philosophies ensure our interventions are holistic, enduring and cost-effective so we can deliver sustainable wealth creation. Ministry for the Environment Four Year Plan

7 Taking a system view By taking a system view we will focus on the areas with the biggest impact, making us more efficient with our collective resources. In the past, we have developed, implemented and assessed policies relatively separately. This approach won t get us the best results in the long run. Over the next four years we need to align development of policy, both internally and externally, so that decisions and actions are based on a clear understanding of the priorities, benefits and impacts across the whole system. Policy areas where there are opportunities to take a system view include the future resource management system, transition to a low emission economy and resource allocation for our marine and freshwater environments. Information and data for better decision-making and better outcomes The way people access and use data and information is changing rapidly and the focus is shifting from information to intelligence. We will build better, more complete data sets and make them more accessible to decision-makers and bring in varied data sets from a range of sources, including citizen science, to build a richer picture. The Environmental Reporting programme and our natural capital work are core priorities for the Ministry in this area. Stronger engagement to inspire all New Zealanders to value our natural environment, leading to action Over the next four years we will continue to build strong and resilient relationships with iwi, and be active partners with iwi/hapū to deliver kaitiakitanga. We want to support iwi to successfully develop their natural resources in a way that will make a significant contribution to Māori communities, regional and national growth. We will keep learning from iwi about what works and apply it in other areas. We need strong, productive relationships across the whole system if we want to see the biggest impact. We are strengthening our external engagement to allow us to navigate complex issues, develop well-designed policy and influence effective implementation particularly in critical areas such as resource allocation for our marine and freshwater environments, future resource management system, and transition to a low emissions economy. We will seek to inspire action through a programme of purposeful engagement and mutually beneficial partnerships. Ministry for the Environment Four Year Plan

8 Our environment New Zealand has a unique natural environment. Its geographic isolation and the long period without human habitation means our environment is known for the richness of its biodiversity, with more than 80,000 species of native animals, plants, and fungi. Much of our native flora and fauna are not found anywhere else on earth. The environment is important to New Zealanders for many reasons. It supplies our most basic needs: clean air, water, food, and a place to live. Much of our international competitive advantage lies in the quality and quantity of our environment and natural resources. Maintaining high environmental standards is essential for market access and New Zealand s economic growth and prosperity. Our relationship with the environment is also a defining feature of who we are as New Zealanders. This is reflected in the very high area of land set aside in New Zealand (approximately 30 per cent) for conservation and recreational purposes, significantly higher than most OECD countries. The diversity of the New Zealand landscape, and the cities and towns that form part of it, also contributes to New Zealand s unique sense of place. The natural environment confers mana and provides sustenance to Māori. It has shaped the living culture of Māori people, and the Māori culture has in turn shaped the New Zealand environment over many generations. It is the resting place for those who have died, with many features of the natural landscape representing important ancestors. The environment is important to tāngata whenua as a form of personal and tribal identity, a symbol of social stability, and an important source of emotional and spiritual strength. Who we work for Our work ensures all New Zealanders can use and benefit from the environment today, and in the future. Success means we have supported New Zealand to meet its economic goals set out in the Business Growth Agenda while maintaining the cultural, social and recreational benefits New Zealanders get from our environment. We will work closely with a wide range of people over the next four years to make this happen. We will engage early in our policy with stakeholders to provide the best advice to Ministers. We will continue to grow our special relationship with iwi/māori as partners under Te Tiriti o Waitangi. We will strengthen our brokering and leadership role; engagement will remain central to our work, allowing us to influence and inspire action among others. Furthermore, we will bring a natural capital lens to the natural resources sector of government. This will build on our existing knowledge of the investment approach so we are clear about where our opportunities lie to have the biggest impact we can for New Zealanders. To achieve our ambitious work programme, local government will be a central stakeholder for us over the next four years. They will support us to administer the Resource Management Act and to implement National Directions. We are already working more closely to shine a light on the issues that matter for businesses through environmental reporting and inspiring industry to act more sustainably to achieve better long-term social and economic outcomes. We will continue to fund communities and non-government organisations to promote action in areas like waste and fresh water improvement. We will also seek input and feedback from all stakeholders so we can provide good quality policy advice that increases value for customers. Our people and resources Our focus will be on strengthening our workforce so we can respond to challenges and seize new opportunities. We already have a strong policy capability within the Ministry. Through to 2021, we will build a more agile policy workforce that is able to move us towards the cutting edge of how Ministry for the Environment Four Year Plan

9 policy is made. We call this policy plus (see Appendix B for what this means to us). It takes into account our staff s ability to use all of the levers we can to achieve our outcomes. Our workforce will be increasingly flexible so staff can move to areas where they can meet their own career aspirations and our wider business needs. Over the next four years we will develop capability across six key areas: capability to deliver policy plus engaging with purpose working with Māori and iwi and understanding Māori perspectives. science and data stewardship new organisational behaviours leadership. The workforce strategy on page 35 provides more detail. Natural capital Natural capital is the world's stock of natural resources, which includes geology, soils, air, water and all living organisms. Natural capital assets provide people with flows of goods and services, often called ecosystem services (like the water we drink, but also less visible ones like a hospitable climate), which underpin our economy and society and some of which even make human life possible. It is an extension of the economic notion of investment capital and the returns it generates, to natural ecosystems and the goods and services they provide. We use the concepts of natural capital and ecosystem services to understand how the actions we take will affect, or be affected by, the functioning of our natural environment. When we fail to account for effects on the natural environment in our decisions, we risk undermining our future capability to use and benefit from the environment. We also miss key dependencies between what we want to achieve and the natural environment that enables those achievements. When we take these effects and dependencies in account, we can better protect our future, generate co-benefits from actions we needed to take anyway, and limit the need for trade-offs between what will always be overlapping goals. In the next four years we will: better understand how our stocks of natural capital and flows of ecosystem services are changing, what is driving those changes, how decisions are being made by central and local government, businesses, iwi and others, initiatives that have succeeded or failed and why generate ideas for future improvements to our information base and decision processes to help decision-makers to understand the effects to our natural capital in a holistic way across regulatory regimes, funding sources, institutional boundaries and environmental domains. Ministry for the Environment Four Year Plan

10 Our four year plan Over the next four years we need to deliver more within our current budget. We have been tasked with delivering a plan to meet our emissions reduction targets by 2030, to introduce and implement legislation for Marine Protected Areas, to implement significant reforms to the Resource Management Act, and to administer the $100 million freshwater improvement fund. We also need to implement an increase in national direction as part of the resource management system. We will also be working on a system-wide review of the wider resource management system. In 2018 we plan to move to a new building. The new building provides an opportunity to address a number of elements of our underlying technology infrastructure to enable new ways of working. If we want to meet all of our commitments, we will need to be a leaner, more efficient organisation where we prioritise work that will have the greatest impact for the least cost. We will introduce new ways of working that will consider how we get greater efficiencies, identifying where we can bring functions together, to share critical resources across the Ministry and where we can disperse key skills, upskilling the workforce to build a broader range of expertise among our people. To deliver what we are required within the strategic priorities we have set, we will need to make savings and scale down activities in some areas. We will focus on delivering a good standard of policy advice across priority areas (climate, water, marine, and resource management) and we will be deliberate about where we will deliver a level of advice that aims to manage risk only. Some areas of our work programme will need scaled back to the minimum level while we prioritise those areas that we consider will have the most impact on our strategic intentions. We will continue to build engagement capability across the Ministry so that our workforce can work through others to achieve better environmental outcomes. This includes growing a deeper understanding of our stakeholders and identifying how we can work together. We will grow the workforce s capability in Māori and iwi engagement to recognise the special role that has in supporting us to deliver effectively. Over the next four years we will need to strengthen our strategic function so we are well-prepared to take advantage of opportunities and to be very clear about where we can have the greatest impact with the least resource. This will mean we need to foster an innovative, action-focused workforce that encourages agility so we can move resources to where they are needed most. What we will deliver over the next four years Our focus areas are as follows and covered in more detail in section two: Taking a System View Marine - we have put additional investment into this area in 2015/16 and this will be maintained. Our approach will be to provide policy advice to Government to support the introduction of the Marine Protected Areas legislation. We would then deliver a minimum-level of implementation for the Marine Protected Areas legislation that ensures this work is able to begin. We will also work with other agencies in advancing regional marine planning processes (in Marlborough and Hauraki Gulf). Climate change - our approach will be to deliver on greenhouse gas reporting obligations, service the Emissions Trading Scheme (including completing its current review), remain active in international negotiations, provide strategic advice on options to reduce emissions, and enabling government partnerships with business to reduce emissions, and work with established subject and stakeholder groups. Resource Management System - we have refocused our work to take a system approach to our work on a future resource management system and to develop policy that delivers outcomes for the natural Ministry for the Environment Four Year Plan

11 and built environments, including a focus on liveable cities, while ensuring effective delivery of national direction and support for implementing recent changes to the current system. Water we will focus on developing an allocation system, delivering the freshwater improvement fund, implementing a data, science and information strategy built on non-departmental funding, and engaging with iwi, councils and communities to implement the NPS Freshwater. The remainder of our policy areas and corporate functions will also take a small drop in investment to support our investment from baseline in IT infrastructure. Information and data for better decision-making and better outcomes Invest in information technology We will support flexible and more efficient ways of working, by continuing to invest in our underlying platforms, services and devices. We will develop a programme of work that will transition the delivery of core infrastructure and business applications to the public cloud. This shift will provide greater immediacy, scalability and cost management for our information technology platforms and applications as well as improving our resiliency. Our building move in 2018 also provides us with the opportunity to make greater use of technology and devices to enable a different work place experience that supports our organisational shift. Change how we acquire data, information and science Our focus on data stewardship will continue to look for opportunities to strengthen our evidence base. Our data and information gaps across the environmental management system are one of our biggest challenges. We have implemented a governance arrangement across our data and information work programme. This governance group will be responsible for overseeing our in investment in data, investment in capability and our data improvement projects. Over the next four years we will make advances in improving our evidence base by centralising decision making, prioritising our options and considering longer term relationships with our data suppliers. Summary of the rest of our work programme Work area Hazardous Substances and New Organisms (HSNO) Mana taiao Environmental reporting Delivery within baselines Core administration of HSNO Act including: Review of the Hazardous Substances legislative framework Review of the new organisms regulatory framework. Treaty settlements negotiated focus mainly on those larger or more complex negotiations and focus only on aligning with the water/resource/marine reforms (eg, Hauraki and Ngapuhi). Implementation of settlements at a minimum required basis meeting obligations and statutory functions, finding opportunities where possible to align with implementation of our water/resource management/marine reforms (eg, Waikato, Te Awa Tupua). An oversight and connecting role between policy areas engaging with Iwi Leaders Group/Māori (rather than a more hands on support we currently provide either in policy work or engagement planning). Working on issues as they arise. Provide cultural safety support (Pou Arahi). Advice on cross-domain policy and Tribunal litigation (eg, Wai 262 and Te Ture Whenua). Deliver environmental reporting under the Environmental Ministry for the Environment Four Year Plan

12 Investments and partnerships Reporting Act based on existing data sets, with limited new data or customer engagement Statutory requirements. Development and implementation of work for the National Environmental Standard on tyres, a statutory review of the waste disposal levy, environmental reporting on litter, a review of the Litter Act, Investigating the development of a consistent framework for the disposal of waste to land, promoting a shift to the circular economy, investigating targeted investment for funds received through the levy. Administer the Waste Minimisation Act, Waste Minimisation Fund and associated deeds. Administer Crown appropriations for community funds and remediation projects (eg, Lake Taupo, Rotorua Lakes), including contestable funding processes and deed management. Supporting the Ministry Lean support in Human Resources, Legal, Finance, Communications, Strategy and Evaluation, and Principal Analysts across directorates. Natural Resource Sector Support Unit (stewardship) Core coordination and reporting for Natural Resource Sector Governance meetings. Delivery of cross-natural Resource Sector products to a minimal standard. Ministry for the Environment Four Year Plan

13 To deliver our entire work programme, we will distribute our baseline in the following ways. 2016/ / / / /21 $'000 $'000 $'000 $'000 $'000 Our Domains Climate 8,193 8,783 7,598 7,602 7,598 Environment System 4,047 5,082 4,839 4,834 4,838 Investments and Partnerships 3,299 2,614 2,612 2,571 2,622 Resource Management System 8,617 9,869 9,511 9,295 9,172 Strategy, Environmental Reporting, Sector and 4,365 4,082 4,106 4,112 4,114 International Connections Mana Taiao 1,862 1,801 1,798 1,798 1,800 Water 7,709 7,198 6,400 6,399 6,400 Support Services 26,213 23,560 23,822 23,859 23,802 Total 64,305 62,988 60,687 60,471 60,347 Variance to Baseline 2 (7) (7) (6) MfE Baseline 62,990 60,680 60,464 60,341 Ministry for the Environment Four Year Plan

14 Four year excellence horizon The Ministry s Four Year Excellence Horizon was last reviewed as part of the Performance Improvement Framework (PIF) follow-up review in It is being reviewed again in Progress against the most recent review is as follows. 4YEH (set in PIF 2014) MfE would have successfully led development of a long-term vision and strategy for environmental stewardship in New Zealand This strategy would be underpinned by measurable outcomes and a multi -disciplinary analytical framework that provides a transparent means to set priorities, make tradeoffs, sequence policy and programme improvements and integrate economic and environmental objectives. MfE would have garnered support for this framework. MfE and NRS would be respected for thought leadership and policy entrepreneurship. They would be respected for their focus on implementation and delivery of environmental outcomes. Fresh water: MfE would have led the NRS to deliver a legislative framework that allows for the allocation of freshwater to the highest economic use that is socially and environmentally sustainable. Resource management system MfE would have delivered a new resource management framework that facilitates economic growth that is environmentally sustainable, with lower compliance costs and appropriate planning timeframes, for which MfE would have provided leadership and guidance to the implementing authorities. MfE would be monitoring implementation to ensure that the changes make a real contribution to facilitating economic growth that is socially and environmentally sustainable. Progress We have developed the long term vision of Aotearoa New Zealand being the most liveable place on earth. This vision takes into account the broader goals of the NRS sector and is supported by our long-term outcomes framework. Our outcomes framework sets out what we are going to achieve over the medium and long-term. We are working on ensuring our long-term outcomes are underpinned by clear, measurable actions. We have put a focus on developing the skills needed for policy entrepreneurship. Progress is being made we have led cross agency advice to Ministers about the future of the resource management system, for example. The freshwater improvement fund uses an investment approach to leverage crown funds for better outcomes across a number of areas. We are building our reputation for thought leadership through a more focused programme of communications and engagement. The Government consulted on the next phase of proposed freshwater quality reforms, due to be finalised in Work on the framework for allocation continues in parallel. A cross agency team of officials has been established to undertake this work, supported by a Technical Advisory Group and working with Iwi Leaders. Decisions are expected at the end of 2017, for implementation in The Resource Legislation Amendment Act makes changes to the resource management framework that facilitates economic growth, supports the setting of environmental bottom lines, provides for lower compliance costs and enables councils to choose alternative planning processes with a range of timeframes. A comprehensive programme of national direction to further support these changes has been progressed. The National Policy Statement on Urban Development Capacity has been completed and a substantial implementation support programme Ministry for the Environment Four Year Plan

15 4YEH (set in PIF 2014) Marine: Led by MfE, NRS would have developed, as an urgent priority, a marine strategy that would be delivering economic growth from this resource in an environmentally sustainable manner. MfE would have led NRS to deliver a long-term vision and strategy for the marine environment and a legislative framework that allows the allocation of marine resources to the highest economic use that is socially and environmentally sustainable. Together with reforms to the RMA that MfE would have led, the marine strategy would have the potential to facilitate the timely development of new industry sectors, such as oil and gas and mineral exploration, making a significant contribution to New Zealand s economic growth targets in an environmentally and socially sustainable manner. Climate change: MfE would have provided national leadership in preparing New Zealand for the medium- and longer term planning consequences of climate change on our economy and lifestyle. MfE would have provided effective leadership to the public sector, including local government, on transitioning to a low-carbon economy. New Zealand would have continued meeting its international climate change obligations. HSNO and waste minimisation MfE would have provided a low cost and simplified compliance environment for businesses to manage waste and hazards, including a system that acknowledges appropriate levels of self-compliance. Ready access to capability across core competencies, such as environmental management, the Tiriti o Waitangi, economic and social impacts, ecosystems, micro-, regulatory and resource economics and practical business experience Progress has been developed. The National Monitoring System is now in place to provide for systematic and comprehensive monitoring of council implementation of the RMA and supporting national direction. The Ministry is establishing itself to take the lead in developing a NRS wide Marine Strategy. Governance at a second tier level has been established, and a principal advisor is being appointed to lead this work. The Marine Domain Report 2016 provides a strong evidential base for the development of a strategy During 2015/16 the Ministry took lead responsibility across the NRS for the development of a new marine protected areas policy. This has involved the development and consultation on new proposed Marine Protected Areas legislation and the Introduction of the Kermadec Ocean Sanctuary bill. All required regulations associated with the regulation of the oil and gas and mining industry have now been completed under the EEZ Act. New Zealand confirmed its 2030 target of 30% below 2005 levels by NZ ratified the Paris agreement. NZ signed the Montreal Protocol amendment to phase down HFCs 1. The ETS review is phasing out the 1 for 2 transition measure. Working groups have been established to investigate what can be done in the agriculture and forestry sectors and on adaptation. Submitted the annual inventory and biennial report to the UNFCCC. 2 We have made significant progress in implementing the recent Health and Safety reforms. These transfer workplace controls for hazardous substances into new health and safety legislation so that employers have a one stop shop to access information on their obligations. See our Workforce Strategy on p. 35 for commentary. 1 Hydrofluorocarbons 2 United Nations Framework Convention on Climate Change Ministry for the Environment Four Year Plan

16 4YEH (set in PIF 2014) A culture that values and fosters thought leadership and policy entrepreneurship at the sector level and within MfE. MfE would be seen as bold and innovative, fast to move from strategy to outcomes, proactive and strategic. Importantly, it would be seen as the country s experts on the environment and natural resource management systems. To do this, MfE would have filled its senior analyst and principal analyst roles and would be leading the thinking around major policy projects, across all of its areas of core accountability. Debates within MfE and with the sector and stakeholders would have been robust, challenging and open MfE s leadership role in ensuring: consistent, comprehensive and reliable information collected at a local level to allow effective monitoring of all players; national guidance on system-wide and cross-boundary issues; effective collaboration between local government and central government at the planning stages; and oversight of major reforms implementation Effective monitoring and evaluation regimes for all critical environment management reforms over the last four years. This would have been providing a strong evidential base to underpin future advice and policy and programme improvements Financial and resource management functions within MfE that enable strong improvements in business performance. In addition to meeting compliance and transactional requirements, the recording and use of financial and resource information would have been driven by strategic need. Information Technology (IT) and financial systems drive the MfE operating environment and allow clear lines of sight from its expenditure to its impact. These would have allowed MfE to identify choices and new ways of operating, accelerating improvements in business performance, despite increasingly tight fiscal constraints. This would have been particularly important in lifting effectiveness as major policy initiatives move into the Progress Work is underway to foster a culture of innovation, policy entrepreneurship and thought leadership, framed by our clear vision and purpose, and a set of behaviours that all staff understand and buy in to. We have increased our focus on meaningful engagement to influence across the system. We are using a natural capital approach to underpin a compelling case for action that delivers environmental results. Principal analyst roles have been filled and the Ministry leads the Natural Resources Sector. The National Monitoring System is the method we use to capture information annually on the implementation of the Resource Management Act The data is now made publicly available and work continues to make it as useful and comprehensive as possible. We have published under the Environmental Reporting regime: Air Domain report 2014 Environment Aotearoa 2015 Marine Environment report 2016 Freshwater report 2017 We have developed a roadmap for our investment in improving our data stewardship. The Ministry has established an evaluation hub focused on building capability and providing and supporting monitoring and evaluative activities across the Ministry. Since the 2012 and 2014 PIF reviews, evaluation is becoming increasingly embedded in business as usual policy and operational activities. We are continuing our work to build our evaluation capability over the coming four years. We have put in place improved internal financial reporting. We are also driving strategic financial and business planning by working more closely with staff and improving support for strategic planning. The Ministry has led an improved Four Year Planning process ensuring a representative group of staff at all levels are involved and exposed to trade-off discussions and scenario analysis, so that the consequences of trade-offs are clear, thereby lifting financial maturity across all levels of the organisation. Ministry for the Environment Four Year Plan

17 4YEH (set in PIF 2014) implementation stage. Progress Ministry for the Environment Four Year Plan

18 Section two priority work programme Priority area: Resource management system Context The Ministry has increased its focus and support for resource management activities, including: delivering more national direction on a broad range of topics policy advice and support for the Resource Legislation Amendment Act 2017 extensive involvement in the Auckland Unitary Plan and Christchurch Replacement District Plan processes the introduction of the National Monitoring System in 2014, which represented a significant improvement in how we collect information from councils on RMA processes reviewing the RM system as a whole and considering long term evolution of the resource management system. We continue to support the Minister s regulatory functions under the RMA, such as approving requiring authorities, as well as our other initiatives that provide support and guidance for practitioners and users of the RM system, eg Quality Planning website and the Making Good Decisions programme. We recognise there are continuing pressures within the resource management system. These include: a resource management system that is slow to respond to change, as evidenced by the increased use of special legislation to address critical issues processes and decisions that can be fragmented, with decisions not always being made at the most appropriate level a growing need to build Māori capacity in the decision-making process and for us to fully support our Treaty obligations and commitments, and planning documents that often require professional/legal interpretation and guidance material that is current to support users of the system. Where we want to be in four years time There are three key shifts we are looking to make to redefine our role in the resource management system. These are: Taking a system approach to our work in the resource management system, reflecting our stewardship role. This includes exploring and developing a future resource management system for a liveable Aotearoa/New Zealand. We will continue our role as leaders across the national direction work programme. We will also take a system wide view of effective monitoring and evaluation, as well as compliance and enforcement of the RMA. Develop policy for the natural and built environment (air, land, built and urban) that looks beyond our regulatory tools to achieve effective system outcomes. In particular we need to grow our role in the urban/built environment space and take leadership in relation to air and land outcomes. This includes working closely with central government agencies to deliver a whole of government approach. Ministry for the Environment Four Year Plan

19 Effectively and imaginatively support engagement, implementation and partnership within the current system. This is about encouraging best practice in the system and fostering enduring partnerships with those that have functions within the system and end users. We are driven by: taking a broad approach to policy issues in the natural and built environment where environmental bottom lines are protected developing a new system based on consensus decision-making across key policy issues purposeful engagement with our Treaty partners and stakeholders because this underpins effective policy development and successful implementation increasing support for implementation to ensure desired outcomes are realised working with new technology, real-time data and evidence to support monitoring and evaluation activities and quality decision making. Why this matters Our natural and built environments are experiencing growing pressures from population growth, demographic change, and increasing urbanisation. Another driver of change is increasing resource scarcity, meaning harder choices need to be made on resource use and allocation. To achieve quality, liveable environments in New Zealand we need to address these issues by ensuring our planning regime becomes more agile, while providing a level of certainty to enable investment opportunities. The adequacy of the RMA as being fit for purpose to deal with current and future pressures is coming under increasing scrutiny. Stakeholders criticise our effects-based regime for not doing enough to drive positive outcomes whether that be urban growth or improving environmental outcomes. The system has also been slow in responding to change and new pressures, which has resulted in carve-out legislation; creating greater complexity for decision-makers and users. The Productivity Commission s review of the urban planning system has also recommended some fundamental changes to the system. We expect to be leading a response, which may lead to being heavily involved in substantial system-wide reform in the coming four years. Our current work on a review of the resource management and planning system will position us well to respond to future reforms. In addition to system-wide change, we will be playing an important leadership role in urban planning. Effective urban planning and design helps boost national productivity, reduce our emissions profile, and provides cost-savings in areas such as infrastructure. In 2020, the Ministry will have moved from responding to crises -driven urban issues to proactively delivering on well-designed, liveable urban outcomes. Our resource management system will continue to require national direction and guidance to achieve certainty for communities, and consistency when needed. Local authorities are calling for increased national direction. In a 2012 survey by the Productivity Commission, 70 per cent of councils who responded identified a lack of direction from central government as a barrier to the successful implementation of regulatory functions with 36 per cent of councils seeing it as a significant barrier. In 2020 we will be proactively formulating and implementing national direction and guidance, which will be informed by credible evidence and community consensus. National consistency and certainty across the planning regime will also be delivered through National Standards. A significant resourcing effort will be required in the next two years to develop the full suite of planning standards, and by 2020 substantial support will be required by the Ministry to help councils implement changes to their plans. Ministry for the Environment Four Year Plan

20 Implementation of our current reforms will continue to be significant, in particular new initiatives such as the stream-lined planning process. Underpinning any new reform and national direction is the on-going maintenance and health of the current system. Up-to-date guidance such as the Quality Planning website is a proactive and cost-effective way of delivering better outcomes to councils and the wider community. Policy development and reform also needs to be well supported by regular and transparent data, evidence, monitoring and evaluation. In 2020, we will have built on the foundation set by the National Monitoring System and Environmental Reporting, to shift from capturing processes to monitoring outcomes. Deliverables and milestones Ministry for the Environment Four Year Plan

21 Priority area: Climate change Context For the past five years our main focus has been compliance and statutory obligations. This has included reporting on our emissions and managing the Government s main policy to address climate change mitigation, the Emissions Trading Scheme (ETS). We also participate in negotiations and meetings at an international level, as this is expected of New Zealand. In 2015/16 Cabinet directed us to review the ETS. We will report back to Cabinet in 2017 on the outcomes of the review. In October 2016 New Zealand ratified the Paris Agreement. This commits New Zealand to reduce its emissions to 30% below 2005 levels by Coupled with the phase down of HFCs and an international aviation agreement to cap emissions this signals that globally, greenhouse gas emissions will begin to be constrained over time. New Zealand will need to find 235 million tonnes of abatement to meet its target, from a mix of domestic reductions, forests, and international purchasing. With existing policies and measures, 80 per cent of this will likely need to be purchased internationally. We estimate that the cost to the NZ economy for meeting this target is between $14 to $36 billion over the period. Over coming years, New Zealand will need to understand the choices it has to transition its economy and begin to act on those choices. Under the current settings the supply of units within the ETS is depleting. To manage the security of supply we are investigating access to international carbon markets with units which have environmental integrity. We are also looking at what we will need to do to adapt to climate change. This includes supporting the Adaptation Technical Advisory Group assess work to date and their proposals for the next priorities. We have prioritised this because long-term investment in infrastructure requires extended lead-in time. The balance of our work is focused on servicing groups established to support the discussion on climate change (for example the Climate Change Forestry Reference Group and the Biological Emissions Reference Group) and working with key stakeholders including business and iwi. Where we want to be in four years time Using sound data and evidence, the Ministry has connected with others to leverage better climate change outcomes. New Zealand has identified options, costs and benefits, and trade-offs and is moving to transition its economy to a lower emissions future. Solutions are in place to target all emissions not responsive to a price on carbon. There is a durable mechanism and effective pricing for greenhouse gas emissions. New Zealanders, including businesses, understand their roles and responsibilities in addressing and adapting to climate change and are taking action. Why this matters Our vision is that: New Zealand has an innovative and productive economy with fewer greenhouse gas emissions and is resilient to the physical and economic impacts of climate change and adverse events. Ministry for the Environment Four Year Plan

22 All countries in the Paris Agreement are asked to develop a long-term plan to reduce emissions and adapt to the impacts and develop resilience to climate change. We need to take a more systematic investment approach to mitigate and adapt to climate change if we are to achieve this vision. Investment now will mean lower costs later. For every 1 per cent reduction in emissions we would save 4 per cent of the cost of our Paris target. This would result in a saving of $1.3 billion to the economy. If we can reduce emissions domestically, the cost to the economy would also be reduced over time. Reducing domestic emissions can also have many co-benefits including, clean water, clean air, help spark innovation and productivity and increase employment opportunities. We will need to identify what else, outside the Emissions Trading Scheme the government, business and communities can do to accelerate the shift to a low emissions economy and prepare for the impacts of climate change. Our work will need to be informed by a sound evidence base including data provision on land use and land use change. This will mean we can continue to deliver high quality reports and international reviews as part of our statutory obligations. Deliverables and milestones Ministry for the Environment Four Year Plan

23 Priority area: Marine Context For a number of years we have focused on developing the Exclusive Economic Zone (EEZ) regime, culminating in the EEZ Act and associated regulations coming fully into force in October Over the last eighteen months, the scope of our work has broadened considerably. This has included leading both MPA reform and the Kermadec Ocean Sanctuary workstreams, and working with other NRS agencies on improvements to the regulation of aquaculture. The overall finding of Our marine environment 2016 is that human pressures are causing changes to our oceans and marine biodiversity that have implications for generations of New Zealanders to come. The dynamic nature of the marine environment and our limited knowledge of its operation affect the way we need to manage it compared to the environment on land. There is a clear need to move away from a sectoral approach to managing our marine area towards a systems approach that considers the effects of all human activities on marine ecosystems. This is reflected in the NRS strategic priority of focusing on marine to move from dealing issue-to-issue and addressing themes emerging across multiple areas of work. o o o Global pressures from human activity ocean acidification, ocean temperature and sea level rise Local pressures run off from land use, effects of bottom trawling Competition for resource use in a number of areas, and likely to increase eg Hauraki A number of legislative tools that apply to management of the marine domain. While we have a role, many other agencies, along with iwi and stakeholders have primary responsibility and/or influence. A number of key policy areas being consulted on eg, new marine protection regime, fisheries management. Iwi rights and interests being contested. Marine domain provides business opportunities fishing, aquaculture, tourism, oil and gas. Strong iwi contribution established through Fisheries Settlement Act. Where we want to be in four years time we have a clear view on national priorities for using marine resources, which underpins our ability to lead positive change in sustainably managing the marine domain marine resources are used in an increasingly sustainable and innovative way, with people understanding the benefits of sustainable use of marine resources and we can more clearly articulate why we need to invest in natural capital an improved framework establishing a representative network of marine protected areas is created and being implemented regulatory frameworks for managing the marine domain are fit for purpose and being fully utilised, including making full use of evidence about the marine domain marine management and resource use decisions make full use of improved evidence about the marine domain (including being informed by current National Science challenges). Ministry for the Environment Four Year Plan

24 Why this matters Our vision is to improve the resilience of the marine domain for current and future generations. The goal is aspirational and future-focused. It will lead to fundamental changes in our current management. The marine domain is a complex, poorly understood system. There has been chronic underinvestment in management, resulting in limited institutional capability and growing divergence between the current state and expectations. Growing pressures on the marine domain increase the risk of tipping points being reached, resulting in reactive responses. The work programme is designed to create the building blocks that will lead to informed decisions about current and future management of the marine domain and formation of an integrated management system. The work programme provides the opportunity for us to exercise leadership in the direction of marine management. Measuring our success We will know we are successful when: We are recognised as shaping current and future management of the marine domain, having a clear and compelling vision. We can demonstrate our advice and communications are informed by robust evidence regarding the state of the marine domain. We are able to deliver effective regulatory stewardship of our legislative responsibilities. Deliverables and milestones Ministry for the Environment Four Year Plan

25 Priority area: Information, communication and technology Context Technology Since 2013 we have been undertaking a transformation of our information, communication and technology (ICT). This transformation has been guided by our Information and Technology Strategic Plan (I&TSP) which was developed to align the Ministry s ICT service delivery model with the Government s ICT Strategy, lift our ICT maturity and to re-focus ICT on supporting and enabling us to deliver our outcomes. This transformation began with the transition to an outsourced model for a large proportion of our ICT support and services. Alongside this transition, we have, over the last three years, been steadily adopting ICT common capability cloud solutions as existing platforms were being replaced. We are currently consuming the following cloud services: Infrastructure as a Service, Enterprise Content Management as a Service and Desktop as a Service. The transition to an as a service model and consuming cloud solutions has enabled us to take advantage of more current technology platforms which has improved the stability and resiliency of our critical applications and infrastructure. The model has also allowed us to take advantage of ondemand and pay as you go services as part of the common capability services. However, this has meant a shift in expenditure from more traditional capital expenditure to operating expenditure. Where previously investment in ICT could be deferred and assets used well past their financial life, the shift to an as a service model has seen a significant ongoing increase in the operational costs of running our ICT service delivery model. Data and Information Stewardship In 2015/16, we began work on a Data Stewardship roadmap. The roadmap was to focus on our growing reliance on data and evidence to support our policy advice and decision making. It would sit aside and complement our existing approach to information management and our investment in our Enterprise Content Management System as a Service. Our Data Stewardship roadmap highlighted that internal and external expectations of the stewardship of data are increasing. High quality data is fundamental to effective environmental stewardship through robust policy, informed decision making, accurate reporting and supporting the natural capital and investment approach. The roadmap goes on to describe the opportunity us to lead change in data stewardship practices across the Environmental Management System. In 2016/17, we committed funding to the first year of Data Stewardship roadmap, with a focus on a small number of initiatives to demonstrate the change we are looking for in how data and information are used in providing advice and making decisions. Also in 2016/17, the Ministry, in partnership with Land Information New Zealand, was successful in receiving an allocation of $503,000 of funding from the Better Public Services Seed Fund. The funding provided was for two outputs: a prototype system to exchange data between Natural Resource Sector agencies, Crown Research Institutes and Regional Councils a business case for funding to transition the prototype into a production system for use across the environmental management system. Ministry for the Environment Four Year Plan

26 Work is also underway under the governance of the Chief Executives Environment Forum to develop a forward work programme to deliver data and information consistency across priority data for the environmental management system. Data and information are central to understanding the performance of the system and enable improved investment advice and decision making for businesses, communities and government. As a sector we want to accelerate progress on making critical data and information available to the system to improve advice and decision making. Future Working Environment Expectations of the modern office worker have changed significantly over the last couple of years. With greater access to technology and tools to help us be more productive in our lives outside of work, modern workers expect more mobility and connectedness when they work and options on how they work. To date the Ministry has focused its investment on key business applications that will support Ministry staff to undertake their role, a couple of recent examples, our investment in our new Enterprise Content Management System as a Service which provides a platform for capturing the knowledge that we and others create the implementation of unified communications under the Telecommunications as a Service offering has allowed us to better connect with internal and external stakeholders. Work is underway to support our pending building move in 2018/19 to establish how technology can better support the organisational culture required to deliver on our organisational shift. As part of this move we expect to see a shift towards providing technology that supports our staff working with greater mobility both within and outside the workplace. Supporting this shift will require an update to our existing technology platforms and devices. Where we want to be in four years time Our updated Information and Technology Strategic Plan (I&TSP) describes our four year excellence horizon as: Our IT infrastructure is flexible and scalable providing a simple, secure and robust platform that is economically fit for purpose. Data, information and knowledge are valued as assets and are accessible to provide the foundation of evidence based advice and decision making. Our information systems, devices and services support workforce mobility, collaboration, innovation and productivity. Technology Over the next four years we intend to focus our investment in accelerating our adoption of cloud based infrastructure and applications. We will be providing new and cost effective solutions that better enable and support the Ministry to work differently and increase our productivity. Our size and infrastructure and application portfolios provide us with a unique opportunity to radically reconsider how we provide the tools, systems and infrastructure that allow us to perform day to day functions. Over the coming years our aspiration is to operate as close as possible to being fully cloud based with the exceptions being where there are privacy and information security requirements that don t support that approach. Ministry for the Environment Four Year Plan

27 The benefits to the Ministry of taking this approach are: greater flexibility and scalability greater certainty of costs improved resilience and disaster recovery capabilities greater access to applications from any where reduced ICT support costs. Data and Information Stewardship Our use of data and information will have continued to grow and we have become more reliant on tools and systems to support analytics, modelling and projections to support our advice. As we have evolved our approach to policy advice and engaging with New Zealanders, data and information have begun to play a central role. Embedding both a focus on natural capital and an investment approach has strengthened the need for a focus on improving our access to data and information and lifting our capability to make use of it. Over the past four years we have: made significant improvements to how we produce our Environmental Reporting commitments. We have invested in moving to a code-based approach to collecting, cleansing and preparing the core data and visualisations that underpin the reports. This allows for improved repeatability of the content of reports, it increases the speed at which the data can be made available to allow us to focus on where we add real value in identifying the insights the data provides and we are able to make the data and the code available for others to use to extract further value. This approach is being widely adopted across the Ministry. to support a federated data approach across the Environmental Management System, we (in collaboration with Natural Resource Sector agencies, Crown Research Institutes and Local and Regional Government) have implemented the initial stages of a data exchange solution (e-idi). This solution over time will allow the Ministry and all other participants to access data held by other participating organisations. This approach will allow the data to remain at source, reduce duplication of the purchase and storage of data and give greater visibility of data holdings across the Environmental Management System. have implemented a data analytics platform that provides Ministry staff with the ability to access their data, undertake analysis and visualise their data. Our platform allows simple analytics to be undertaken as well as more complex analytics, modelling and projections. With regards to our information management, our focus has been on the opportunity that our building move has presented us to reconsider our use of paper as an organisation. In support of the move the Ministry digitised a large proportion of our physical records and they are now available in our Enterprise Content Management System. We have also digitised our key business processes, making use workflow capability in our Enterprise Content Management System. Future Working Environment As lead agency for the Charles Fergusson Tower Project, the Ministry will be required to provide Telecommunications as a Service (TaaS) services to the co-locating agencies and will need to replace its aged telephony solution and its core network infrastructure. The Charles Fergusson Tower Project will also provide an opportunity for the Ministry to address its ageing desktop infrastructure and provide devices that enable staff to work more efficiently and in different ways. Ministry for the Environment Four Year Plan

28 What is required to deliver our 4 Year Excellence Horizon A high level plan of the key investments over the next 4 years is provided below. Deliverables and milestones Ministry for the Environment Four Year Plan

29 Priority: Fresh water Context Some policy components are complete, significant policy issues on the allocation of water and iwi rights and interests and Urban Three Waters remain to be resolved. We are increasing focus on implementing a new framework. We are shifting to a focus on partnering with purpose (see Appendix B for our definition), such as the allocation work programme across system partners and iwi and working closer with partners. Where we want to be in four years time defined iwi rights and interests an effective water allocation framework a water management system that is starting to bed-in and demonstrate early results being effective within constraints and needing to work differently being deliberate in our approach to working with others (knowing with whom, what, why and when we need to work with others) in our approach to funds management, closely examine and be clear about who we work with within the system shift in funds management to an investment approach: this means reducing the number of funds managed, while increasing relationship management, facilitation and getting a greater return on investment made more clearly articulate why we need to invest in natural capital. better indication of how we are tracking to our outcomes and whether we need to be more responsive to meet them. Why this matters We are unable to maximise the benefits New Zealanders get from freshwater. We limit the opportunities to sustainably use the resource to grow our economy and allow New Zealanders to prosper while protecting the things we value for now and future generations. This includes sustaining the growth needed from key sectors to meet our 40 per cent exports to GDP target (Business Growth Agenda) and doubling the value of our primary production exports (MPI). Moving industries to best practice environmental management of water quantity and quality will protect brand New Zealand and our tourism industry. It will also provide evidence of sound environmental practices for export goods to allow price premiums in export markets. The economic potential of Maori land that currently has no access to freshwater remains unrealised for iwi and New Zealanders. Iwi risk not having the capability and capacity to participate in collaborative processes and water planning more broadly Increasing capital expenditure for urban water infrastructure resulting in increased taxes and rates Litigation of water resource decisions remains the status quo Ongoing uncertainty makes large scale investment decisions difficult (allocation/climate change adaptation/litigation) Ministry for the Environment Four Year Plan

30 The lack of an efficient allocation frame work has the potential to limit urban development/housing growth or require expensive alternatives Gaps 3 waters infrastructure investment is an evolving opportunity. Improving the health of urban waterbodies, while providing for urban expansion is an area requiring increased focus. Deliverables and milestones Ministry for the Environment Four Year Plan

31 Supporting our shifts Our enabling functions will support the shifts we have described above. Most services (including people and culture, legal, finance, evaluation, science, international, communications) will provide core support. Ministry for the Environment Four Year Plan

32 Non-departmental funding We administer non-departmental funding for: waste minimisation initiatives Treaty obligations community funding water initiatives climate change international obligations. Some of the funds above relate to Treaty or international obligations and are therefore nondiscretionary. In addition, a significant portion of third party funding in climate change is for the allocation of units, which depends on the price and the number of units (both of which are uncertain and outside of our control). Funding to the Environmental Protection Authority (not noted above) completes the types of non-departmental funding in Vote Environment. During 2016, we conducted a pilot of the investment approach within the Freshwater Improvement Fund (see below). We are considering how this might be applied more widely across some of the funds to derive the greatest benefit for New Zealand. Investment approach Freshwater Improvement Fund Investment Approach Pilot: Background In the New Zealand context, the investment approach has evolved from simply investing against future costs, or a forward liability investment approach, to simply an investment approach to include building assets or expanding the range and longevity of benefits accrued from investing early (in an individual, a cohort or natural capital, for example). The investment approach is particularly relevant to work within the natural resources system and the Sector s stewardship role which requires a long-term view. We identified the investment approach and increased focus on natural capital as areas of focus for In June 2016 we began a pilot to explore how the approach could be applied to natural resources. It sought to draw on lessons and relevant principles from the Social Sector s experience (which is the most well developed within the public sector), and to adapt these in a natural resources setting. The Freshwater Improvement Fund (FIF), introduced in Budget 2016, is one of the initiatives developed as part of the Government s programme of water reform. It will provide $100 million over the next ten years to support users to transition to managing within fresh water quality and quantity limits. The FIF was identified as a good candidate for the pilot as it was a discrete and time-bound piece of work within a well advanced policy frame and information base. Work on the pilot was supported by agencies from across the NRS including the Ministry for Primary Industries, the Department of Conservation, and the Treasury. Wider public and stakeholder views informed the work through the submissions received on the Next Steps for Freshwater consultation and targeted conversations with a range of groups and individuals with an interest in freshwater. Investment approach in a natural resources context Within the Social Sector, the investment approach has been described as seeking to reduce forward liability (ie money spent now saves money spent in the future). Calculating current and future costs for government and society for natural resources is significantly more challenging as the value we gain from natural assets is not easily or regularly measured in dollar terms, nor are these cost calculated as a public liability. Where calculations attempt to monetise these values, approaches are often inconsistent, and the exercise itself is costly. Ministry for the Environment Four Year Plan

33 In the freshwater context, and more broadly for natural resources, the value from the asset can be better defined in terms of maintaining and improving an asset to maximise future options for its use economically, socially, culturally or environmentally. What did this mean in practice for the Freshwater Improvement Fund? Identifying the vulnerable Based on New Zealand and international experience with freshwater remediation, early intervention in water bodies that are beginning to exhibit signs of stress was the most effective way to maximise return from the FIF investment. This would enable early intervention before remedial costs escalate and options for future use are potentially lost. The approach required targeting of particular areas through developing a prioritised set of waterbodies that would have an advantage in the funding application process. Vulnerable water bodies (including lakes, rivers, wetlands and groundwater) were identified based on: The current state of the waterbody (including water quality and flows); and The pressures on the water body; and Significance of the waterbody to the economy, society and the environment (e.g. local economy, destination for recreation, ecologically significant flora or fauna in terms of representativeness or uniqueness). The funding criteria reflected a risk-based approach where assessment decisions are informed by data and the likelihood of interventions addressing the challenges identified. In combination, these elements would prioritise projects that provided the greatest return on investment and would result in the best long-term, measurable environmental, social and/or cultural outcomes. Key principles of the FIF investment approach were: Take a long-term view and applying the principle of investing now to save later to reduce future liability both in dollar terms, as well as investing in natural capital/ecosystem services to improve the range of future options. Use evidence and data to support decisions, to monitor impact and review over time, and modify approach if required. Understand the wider system (in this situation the funding ecosystem ) and to not just focus on an individual programme. This requires understanding other initiatives contributing to the same outcome, interdependencies and also provides an opportunity to identify partners/co-investors to leverage funding. Where does an investment approach make most sense for natural resources? Given current interest in the investment approach across government, it is likely practice will increase over time. During this development period it makes sense to test investment approaches in specific situations where they are easiest to explore, which could pave the way for wider use in the future. The experience from the FIF work indicates this would likely be work with the following attributes: Where the input or the outcomes affect more than one agency/individual Where the long-term benefits can be valued and are visible Where there is a tangible asset to maintain or improve Where there is at least a degree of control. Where there is space and time to test different approaches before a final decision is made. Where a license has been given politically to explore this. Ministry for the Environment Four Year Plan

34 Environmental Protection Authority The Environmental Protection Authority is also funded through Vote Environment. It manages the decision-making process for proposals of national significance, for example major roading projects and wind farms. It is responsible for managing the environmental effects of restricted activities in NZ's Exclusive Economic Zone and Continental Shelf. It manages the administration of NZ's Emissions Trading Scheme and the operation of the Emissions Trading Register. It sets rules for safe use of over 100,000 commonly used hazardous substances, including cleaners, cosmetics and fireworks. The EPA is a significant contributor to the Ministry s outcomes. For more information, Non departmental funding under the four scenarios Non-departmental funding Total Non Departmental 2016/ / / / /21 $m $m $m $m $m Emissions Trading Scheme Waste Minimisation Water Initiatves Environmental Protection Authority Climate Change Community Funding Treaty Obligations International Obligations Total Non Departmental Total Departmental Funding Total Departmental & Non Departmental Ministry for the Environment Four Year Plan

35 Workforce strategy Workforce Characteristics As at 31 March 2017 Full Time Equivalents Permanent 344 Fixed Term 27 FTE as Managers 50.6 Average Age 38.6 Average Tenure 3.7 years Females 63.6 % Males 36.4% Unplanned Turnover 22.7 % Average Team Size 8 In addition to its FTE s, MfE also has: Seconded in from other 8 organisations and working on MfE Deliverables Co-locaters from other 19 organisations Workforce Shape as at 31 March 2017 Administration 71 Analysts 108 Senior Analysts 124 Principal Analysts 12 Managers and Team Leaders 40 Directors 12 Executive Leadership Team 4 Ethnicity Profile as at 31 March April 2017 Asian European Maori Middle American/African Not Declared Other Ethnicity Eastern/Latin 2.8% 49.3% 4.0% 0.2% 20.3% 22.2% We aim for an average team size of 8-10 people to allow for efficient allocation of resources balanced with a size conducive to a wellfunctioning and managed team. This will continue to be monitored and managed using consideration of appropriate opportunities as they present themselves due to attrition and changes to work plans. In September 2016 we completed a promotion round which saw 11 analysts promoted into senior analysts positions. This has put the ratio of seniors to analysts higher than the 1:1 that the Ministry aims for to allow for balancing of costs while delivering a high quality of work; and for career progression and pipeline purposes. This is expected to return to 1:1 by recruiting to analyst positions where possible. It is expected to continue to shift over the next four years but will remain a guiding principle. In 2021 we will have an agile policy workforce, enabling flexibility to move staff to better meet staff career aspirations and business needs having our workforce where it is most needed. This will be enabled by talent mapping across all organisational levels that align business needs and opportunities with individual aspirations and potential. As at 30 June Gender Pay Gap % of Female Senior Leaders 11.5% 63% 3 From the Human Resources Capability Report from State Services Commission Ministry for the Environment Four Year Plan

36 Workforce Capability Picture: 2017 to 2021 We have identified five key capability areas required to deliver on our priorities over the next four years. These capability areas are discussed separately, although have strong relationships with each other. We also acknowledge that leadership is a key capability required to deliver on our priorities and will be discussed in the Leadership section. Key Capability Area One Policy Capability Current Core Policy Capability: STRONG Current Policy Plus Capability: MEDIUM 2021 Policy Plus Capability Requirement: STRONG Policy capability is a core capability and is currently strong. The quality of our policy advice is well regarded by our Ministers and our stakeholders (Stakeholder Perception Audit, 2015).The quality of our policy advice rose from 54% in 2014/15 to 61% in 2015/16 as measured by the Ministry s quality of advice performance measure (reported annually). We continue to recruit for policy capability in addition to building capability in house. This includes: senior analysts coaching analysts to improve policy advice and to ensure our succession of senior analysts (we run a coaching programme for senior analysts) quality academy courses including themes such as telling a story, peer review and commissioning a Quality of Advice committee where policy advice is reviewed and feedback given guideline documents and resources evaluation training workshops Ministry seminar series covering a range of relevant topics, available to all staff. Policy capability will need to remain strong for us to achieve our strategic and delivery intentions over the next four years, however what this looks like is changing (referred to as policy plus, see Appendix B). Policy plus is about doing policy differently getting beyond regulation and legislation as the go to tools for solving policy challenges. In an increasingly complex world we will need to find creative ways to solve issues, in particular by working with our partners and key stakeholders. Policy plus requires us to understand the system we are operating within and to think strategically about the full range of options for achieving an end goal. For example funding new technology to process problematic waste streams onshore may be appropriate to address one waste stream. However, in order to be successful there needs to be efficient collection systems and a competitive end market for the product. This requires us to understand the system, build good relationships with key stakeholders in that system and broker relationships between them. Understanding how and where to invest is key to successful policy plus and will require the ability to estimate potential future costs and opportunities in a meaningful way. This in turn will enable us to be more deliberate about where the Crown invests its time and money to get the maximum benefit. It will also help us to see benefits from a broader perspective than by individual domains. The environment is a complex and interconnected system and considering benefits of an intervention to achieve one thing can have a multitude of benefits across other domains and in fact across the whole system for example planting trees to reduce soil erosion also has benefits for climate change, water quality, biodiversity, economic development, tourism. Over the next four years, we need to Ministry for the Environment Four Year Plan

37 enable better conversations about the value that natural resources provide, both for our future wellbeing and for the resilience of our country to climate change and growth pressures. Design thinking is one of many tools that we are adding to our toolkit. It involves collecting information from a broad range of places to better understand the nature of the issue. It requires ideas for solutions to be developed quickly and tested with end users, which leads to refinement of the solution. These techniques encourage early engagement with a broad range of affected stakeholders and provide rich information for policy development. We have already made a lot of progress towards policy plus (for example, building our evidence and applying it in our policy and advice in some areas; eg, water metering, National Objectives Framework and environmental reporting). But we need to sustain it and widen it to ensure that by 2021 it is embedded in how we develop all of our advice. In late 2016 we rolled out a Policy Analysis Fundamentals course which provides a foundation for policy plus, alongside our ongoing seminar series which includes such topics as design thinking and behavioural economics. We have an Evaluation Hub (of three) who provide advice, training and hands on support for teams undertaking evaluative activities; coaching and mentoring the rest of the Ministry to build good evaluation practices into their projects and building this capability in our workforce. To enable policy plus, we need to build capability in the use of evidence (Capability Theme Four- Science and Data Stewardship), working with stakeholders (Capability Theme Two), including Māori and Iwi (Capability Theme Three). Living our shared organisational behaviours (Capability Theme Five) will also enable policy plus. By 2021 we will need all of our policy staff to have a base understanding of, and groups of staff with more advanced capability in: the application of a range of analytical frameworks; advice skills; systems thinking; strategic thinking; evaluation; economics (including behavioural) and the mechanics of commercial and not-for-profit sectors. We will ensure that we have a balance of this across the Ministry, through recruiting and capability building, and will utilise our flexible workforce to ensure that our work programmes are resourced with people with the required mix of capabilities. Our existing policy capability building mechanisms will be updated to reflect policy plus. Key Capability Area Two Stakeholder Engagement and Collaboration Skills Current Stakeholder Engagement and Collaboration: LOW to MEDIUM 2021 Engagement and Collaboration: STRONG We are an agency that primarily works through others to achieve its outcomes. Effective stakeholder engagement is critical to our ability to deliver on our purpose. We operate across areas where diverse and often competing stakeholder interests meet. We need strong, productive relationships that allow us to navigate complex issues, develop well-designed policy and influence effective implementation. To be successful we must be able to work with, and broker relationships between, a range of partners and stakeholders that represent the diversity of New Zealand, including businesses, environment groups, local and central government, Māori and iwi groups, research institutions and the general public. Working with central government particularly includes the Natural Resources Sector. We must be able to influence our stakeholders but also stay open to and hear their views as we recognise engagement is a two way interaction. The 2015 Stakeholder Perception Audit and other feedback from stakeholders indicated that many people were unhappy with the way we interact with them, or with what they consider a relative lack Ministry for the Environment Four Year Plan

38 of engagement. In general, in recent years, we have been inward looking, with relatively little emphasis on external engagement. Anecdotal stakeholder feedback is increasingly positive as we increase our focus on external engagement. In addition to the skill-set there is also a strong component of mind-set in this capability. Staff feedback in the Stakeholder Engagement Strategy (2016) reports that, in some cases, staff feel like they need to be seen as experts, or need to bring ready formed ideas to stakeholder engagement in order to be credible. This need to prove ourselves means we can be reluctant to engage, don t listen, or that we spend too much time preparing to engage. There are currently examples where we are working effectively with stakeholders and we have taken steps to strengthen this capability by: introducing an Influencing Skills Programme that includes a training session and just in time resources the Executive Leadership Team using their 90-day plans to prioritise and structure their engagement with key stakeholders on issues where we can have an influence appointing a dedicated Engagement Specialist and a small team of specialists working across the Ministry to build and maintain relationships bringing in panels of stakeholders to share their perspectives with staff. In 2021 we will be strong on Stakeholder Engagement. This will be across the Ministry and we will also have strong pockets of those that can build and sustain strategic partnerships. We will move to systematically recruiting for this capability and introduce further development solutions, focusing on mind-set and skill-set, to build the capability of our workforce. Key Capability Area Three Working with Māori and iwi and understanding Māori Perspective Current Working with Māori and iwi and understanding Māori Perspective: LOW to MEDIUM 2021 Working with Māori and iwi and understanding Māori Perspective: MEDIUM to STRONG We have invested considerable effort over the years and built a good foundation in existing relationships with Iwi Leaders/Advisors Groups, formalised relationships with iwi/hapū through Treaty settlements and relationships with Māori and iwi through our work programmes. A key focus for 2016/17 is to move our relationship with iwi and Māori from an obligation focus to an opportunities focus. We will then focus on embedding the partnership focus over the next four years. As our partnerships with Māori and iwi develop, we increasingly need to build organisational capability on Māori perspectives, the Treaty context, tikanga, mātauranga and best practice engagement. This capability has improved in recent years, largely through Mana Taiao utilising a coaching and mentoring based approach, supplemented by Te Reo and Treaty of Waitangi training. We need to continue to lift this capability across all of our staff this includes both knowledge and skill aspects, in addition to the mind-set and comfort aspects. In 2021 all of our staff will feel comfortable and confident in working with Māori and iwi and will follow best practice engagement. We will still maintain a group of staff who are more advanced in this capability to work as specialist advisors to the rest of the Ministry and to hold high level partnerships and the system view. Recruiting for this capability is difficult due to supply of applicants that hold this capability in addition to the other capabilities required of our employees. We will focus on recruiting a workforce that, at a Ministry for the Environment Four Year Plan

39 minimum, shows a strong willingness to learn and will focus on building this capability. We will also work to build our pipeline by recruiting interns and graduates through Te Puni Kōkiri and through direct relationships with universities. We have developed a Māori Capability plan that is now entering its implementation phase. The plan covers training and support grouped around four key areas. These are: 1. Confidence to engage : Te reo, waiata, tikanga 2. Understanding: Treaty context, settlements, commitments, Māori perspectives and mātauranga 3. Partnership: Skills to build trusting relationships and partnerships with Māori 4. Craft: Weaving Māori perspectives, tikanga and mātauranga into our work. Key Capability Area Four Science and Data Stewardship Current Science and Data Stewardship Capability: LOW to MEDIUM 2021 Science and Data Stewardship Capability Requirements: MEDIUM-STRONG Scientific evidence and data underpins all aspects of our business including decision making in policy development, regulations, guidance documents and prioritisation of funding. Over the last twelve months the importance of accessing, using and stewarding science and data has become more visible by, for example: the appointment of a Departmental Science Advisor the establishment of our Outcomes Framework the Conservation and Environment Science Roadmap the development of a Data Stewardship roadmap highlighting how the Ministry will lift maturity and develop capability to support an increase in the use of data and evidence in policy development funding the first year of the data stewardship programme which includes the development of a data skills framework the Ministry s direction (policy plus) asking for more robust data and science to be used in policy making and to also actively shape the agenda by anticipating future issues the passing of the Environmental Reporting Act 2015, requiring independent Domain reporting. Our size means that we cannot have expertise in all areas of science. In 2021 we will have adequate staff that are knowledgeable and credible enough to correctly commission science and research and use it in their work. We will also retain a small group of competent and current staff who undertake science/research as a core part of their role. We are currently working on a Ministry Science Strategy of which one aspect will be a description of the current state of our science capability (in addition to its systems and infrastructure), a clear vision for the future capability and capacity required and a plan of how we will grow this capacity and capability. By 2021 we will have a Chief Information Officer and all of our staff will be comfortable in the use of data to support the development of advice. Staff will have access to the data they need, have the Ministry for the Environment Four Year Plan

40 tools they need to analyse and prepare visualisations of the data to strengthen the presentation of advice. We will have increased the number of staff with strong data analysis capabilities. These staff undertake complex data analytics across the Ministry to support priority work areas and coach other staff in the use and understanding of data analysis. We will actively support the growth of these skills through active recruitment for these skills as well as providing training and learning opportunities. Key Capability Area Five Collective Organisational Behaviours Our Edge Current Capability: Unknown as we are in the awareness phase of implementation 2021 Capability: STRONG Our strategy (September 2016), outlines our new shared organisational behaviours (known as Our Edge, see Appendix 2 for more). They are: We are curious - We ask the questions that enable us to develop insight, know more, and learn. We ask these questions with respect and actively listen, using the answers to shape and grow our thinking. We are innovative - We introduce new ways of doing our work to deliver change and are receptive to others new ways of working that may be of benefit to us. Our fresh thinking means we challenge the status quo and add value. We are courageous - We are brave enough to ask questions of ourselves, and others and to put our thinking out there. We have a point of view. We are open to the questions and perspectives of others and change our thinking, behaviours and approach if required. We are brave enough to try, even if we may fail. If we do fail, we learn from the experience. We take action - We have a long-term view and focus on actions that make a difference today. We don t wait on the side-lines. We perform work with energy and drive. We lead - We inspire and influence others to act in the service of positive change and we lead from wherever we are in the organisation. We help others succeed - We work as one organisation to achieve our purpose. We all create a culture in which people want to do their best and we learn from each other. We broker relationships and make it practical and workable for others to make good environmental and economic decisions. These shared behaviours are a key capability required from all our staff to deliver our strategic and delivery intentions both through enabling our work, contributing to our culture and being fundamental to growing our other key capability areas. We are currently in the awareness phase of implementation and do not have a comprehensive understanding of the strength of this capability within our workforce. By 2021 our workforce will be living these behaviours consistently and these behaviours will be driving our success and defining our culture. To achieve this, we will focus on awareness and knowledge through to the end of 2016/17, allowing our current workforce to grapple with, understand and integrate the new behaviours by focusing on manager-led conversations and consistent organisational messaging. We have begun recruiting for these behaviours and integrating them into our induction. In 2017/18 we will continue integrating the behaviours into our talent management practices including a stronger focus on recruitment, induction, performance expectations and measurement, Ministry for the Environment Four Year Plan

41 talent management, and learning and development (including manager and leader development). We will then continue to reinforce these over the next two plus years. Priority Workgroups We have identified two priority workforce segments, policy capability (policy plus, see capability theme one) and technical capability, which are critical to the achievement of ours and our sector s strategic objectives over the next four years. Our key responsibility is to deliver robust environmental policy, therefore policy capability is critical. As we move towards policy plus, part of this capability will be the ability to connect our work to the world of stakeholders and partners, including Māori and Iwi, enabling widespread support for our policies and ensuring their impact. Engaging with stakeholders will become part of our policy capability. Our shift to policy plus also means we will be giving people the why and the evidence, using more robust data and science in policy making and using evidence to actively shape the agenda by anticipating future issues. We also use this capability for roles such as independent domain report writing, required under the Environmental Reporting Act. We eventually expect that all policy staff will have basic data literacy skills as part of policy plus, however we do not expect our entire policy workforce to have advanced skills, and so this forms a large part of our second priority workforce segment technical capability. In addition to data and evidence capability, our technical workforce segment includes those corporate groups that enable us to deliver robust environmental policy such as legal. As noted in the Workforce Related Risks section, we have a high level of unplanned turnover. This turnover also impacts our priority workforce segments, particularly policy capability. Our ability to recruit for policy capability depends on the level we are recruiting for, with graduates and those with less experience easier to recruit for and experienced senior policy analysts more difficult, with an increased time to fill the role, sometimes requiring multiple recruitment rounds. In relation to our technical capability segment, retention and recruitment varies depending on the specific technical capability. Information, Communication and Technology people capability Are there new ICT people capabilities required over the next four years to enable the department to deliver on strategic objectives? Over the next four years we will require the following ICT capabilities to deliver on our strategic objectives ICT architect capability this will be required to provide direction and advice on supporting our adoption of cloud based infrastructure, platforms and applications as we transform our ICT portfolio. To date we have had limited access to architectural resource from our ICT Outsourcing partner, with the potential transformation required over the coming four years it is timely to consider whether this is a resource required by the Ministry. ICT Security and Risk capability We have a growing need to increase our maturity across our risk and security management. Previously we have procured this advice and support from our ICT Outsourcing partner or the market place. With increasing complexity and external expectations, consideration will need to be given to whether we require internal capability in this space. Data Analytics and Data Science capability will need to strengthened and increased over the next four years. As we become increasingly focused on the use of data and information to support policy advice, decision making and engagement with New Zealanders having suitably skilled staff will be critical. Ministry for the Environment Four Year Plan

42 How are these capabilities aligned to Digital, Technological and Information roles? Each of the roles listed above are aligned to either all or some of Digital, Technological and Information roles. For example, ICT Architect will play an important role in our digital and technology transformation. An ICT Risk and Security resource would support our digital, technology and information transformation. Data Analytics/Science capability aligns to information transformation. How is data capability being developed to support sharing of data and evidence based decision making? We have developed a Data Stewardship Roadmap to guide our investment in data and information over the next three years. The roadmap was developed in response to the growing expectations both internally and externally on how we are using data and information to support our advice, decision making and engagement with the New Zealand public. The roadmap addresses all aspects of capability, from technical, governance, process and people. As part of the roadmap we will have developed a data skills framework and be using this as the vehicle to develop our data capability over time. Over the last year we have taken a number of different approaches to developing capability. A couple of examples are, we have undertaken some structured training for staff on storytelling using data and we have undertaken pilot projects focused on starting with a data first approach allowing us to trial a different approach to policy development and advice. During these pilot projects we have brought in design thinking and data science expertise to coach and support the project teams. Culture Our exit data and engagement results continue to affirm a culture of care, collegiality and respect with most respondents indicating they would return to the Ministry in the future. Coaching, growth and stretch sit as philosophical underpinnings of our performance and development system and are part of the way we work around her. Non-financial rewards, gatherings and social events all sustain our culture. These include annual staff awards, team events, weekly all staff meetings, kitchen sessions with the Environmental Leaders Team, the Chief Executive blog and shout outs, an active social club and wellness week. Most teams take time out of their work for team building and planning. The introduction of Our Edge behaviours (see appendix b) is asking for a shift in our culture which will be realised by Our culture will be one of curiosity, innovation, helping others succeed and emergent leadership. We will not leave behind the positive aspects of our existing culture, but will add to it as we move to a workforce that all lives Our Edge behaviours daily. Diversity and inclusion We continue to monitor our key diversity metrics and encourage awareness of diversity and inclusion through events such as diversity month (July, 2016) and reverse mentoring saw the introduction of our Flexible Working Policy which allows our staff to balance their obligations at work and outside of work. As at 31 March 2017 we had 19 people from other organisations co-locating with us and 8 secondees working collaboratively with our workforce to develop, implement and monitor policy and adding to the diversity of our workforce. We include an unconscious bias check in our recruitment and performance moderation processes to help reduce bias that could impede a diverse workforce. We provide tools and development options for teams to identify and harness diverse perspectives and working styles of their teams such as Team Management Index. Ministry for the Environment Four Year Plan

43 At the end of 2016, we piloted a summer internship programme that sourced interns through the Pasifika Internship Programme (through the Ministry of Business, Innovation and Employment) and the Te Puni Kōkiri Internship. This will continue annually. This initiative introduces the Ministry, and the broader public sector, to this group of interns who may then chose the public sector as a career choice. Interns also bring an additional perspective to our current workforce. Our recently introduced organisational behaviour of curious, will enable inclusion and consideration of diverse perspectives in our work and we have also recently adopted the following whakatauki (proverb) for all staff: He rau mano, he rau kotahi tangata (we embrace our multiple talents). In addition to continuing to focus on diversity and inclusion internally, we are building our capability in stakeholder engagement and working with Māori and iwi, ensuring that the diverse perspectives of New Zealanders are considered in our work. In 2021 our ethnicity profile will be more representative of the New Zealand public and our gender pay gap will remain small. Our post Kaikoura earthquake move back into Environment House (July 2017) will provide a working environment designed for flexibility and inclusion, in terms of both layout and technology. This will be further embedded when our Wellington workforce moves to the new Charles Ferguson Tower (planned for 2018). We will continue to welcome secondees and colocators who bring required capability that our more permanent workforce may not have and whom also bring different perspective. Our mature talent management practices will ensure that we are best utilising the capabilities of our workforce. We will continue with our current diversity and inclusion practices and are working to understand our current and desired diversity profile. Leadership capability Strong leadership and management are essential for us to deliver our strategic and delivery intentions over the next four years, including leading our recently introduced strategy. We currently support this in a number of ways, including: the Building Capable Managers and Aspiring Leaders programme, run with our Natural Resources Sector colleagues talent boards twice a year where all second, third and fourth tier leaders are mapped onto dynamic talent maps. These are used for thinking through appropriate development options and to inform deployment, including within the Ministry and across the sector targeted development opportunities at the Director and Executive Leadership Team level, including regular 1:1 coaching the Leadership Development Centre LSP360 for all people managers to identify development focus and opportunities (completed every two years) a culture of regular development conversations and providing rotation and acting up opportunities leaders days 2016/17 Performance Plans for Directors and Managers aligned to the Leadership Success Profile (LSP). Manager Forums every 6 weeks We will continue to focus on developing our director and manager groups as individuals and as a collective by utilising individual development opportunities (based on 360 feedback; including Leadership Insight) and collective development plans. Our development efforts span all four quadrants of the LSP. This development will also further enable and support our leadership role across the Natural Resources Sector. Our focus will be on: Ministry for the Environment Four Year Plan

44 utilising leaders away days (directors, managers and principal analysts) to focus on leading Strategy on Page. continuing the implementation of our director s collective development plan which includes development activities to close shared capability gaps including strategic financial management, investment decision making, governance, commissioning of work and working as a director s team. reviewing our management development offerings and enhancing the collective development of our managers. Our current management development focuses on the people management element; however we need a management population that is also strong on the other core functions of the management role such as risk management, planning, financial management and work sizing. Our development offerings going forward will address this. reviewing all current offerings, and making any changes, to ensure alignment with the LSP by the end of 2016/17 updating our Leadership Expectations Guide to reflect both the LSP and Strategy on a Page updating recruitment and selection to reflect LSP and Strategy on a Page. We will mature our talent management practices by maturing the organisation s understanding of potential, taking measures to reduce bias, and ensuring that talent maps remain top of mind whenever development and deployment decisions are being made. In March and April 2017 we rolled out talent mapping to the entire organisation. We are now updating individual development plans (through managers), putting in place succession plans for people critical to our delivery and agreeing how we use our talent maps for development and deployment decisions. This will allow alignment between individual performance and potential (including aspirations) and Ministry needs and encouraging whole of organisation thinking. We will continue to mature this so that by 2021 we have a targeted development approach, ensuring our development investment is going to those we most want to retain and grow and that we have a strong pipeline. This will be supported by a performance recognition system that allows for clear differentiation between performance levels. Workforce capacity The following table shows our anticipated FTE and vacant position numbers. Changes in position numbers across the four years are due to using a reduction in FTE to help balance the costs of the proposed shift options and remuneration increases. Required fluctuations in FTE will be managed by attrition and utilising the Ministry s agile workforce to ensure staff are where they are needed. The projected vacant position numbers are based on 6.27 per cent of total position numbers until June 2017, reflecting the percentage of total position numbers that vacant positions were at baseline. It drops to 6 per cent at 30 June 2018, 5.5 per cent at 30 June 2019 and 5 per cent for 30 June 2020 and 30 June This reducing percentage reflects the anticipated reduction in turnover over four years, meaning vacant positions will decrease. We anticipate that the average time to fill vacancies will not change over the next four years. 30 June 2016 (Base-line) 31 Dec June June June June June 2021 Number of FTEs Vacant positions Total Position Numbers Ministry for the Environment Four Year Plan

45 Workforce costs The key factors driving anticipated changes in personnel costs over the next four years are remuneration costs and FTE numbers. We are managing these costs by reducing external costs and potentially reducing FTE where appropriate and through natural attrition. Our planning assumption allows for 2.5 per cent increase each year for the next four years. This balances what is needed to recruit and retain a suitable workforce and affordability. Workforce related risks 1. Turnover and its impact on our workforce and work programme 2. Recruitment of a capable workforce 3. Increasing work demands unmatched by increase in resource 4. Unable to lift capability in required areas Our unplanned turnover rate is high and reducing turnover is a key workforce priority over the next four years. High turnover impacts our ability to do our work and on people who stay potentially contributing further to our turnover challenge. Resource to recruit and induct new employees puts pressure on hiring managers and Human Resources. The vacancy, while recruiting, puts extra work demands on team members meaning we may not be able to deliver work in a timely manner. It also generates a risk to our institutional knowledge and relationships with partners and stakeholders as the face of the Ministry changes (identified in the Stakeholder Perception Audit, 2015). We have recently collected and analysed our turnover information (including exit surveys and interviews with past employees). This suggests our turnover is multi casual, including leaving for bigger roles. Data shows that we have run on an unstated strategy, whereby we have recruited at the less experienced end of the spectrum, have trained people really well, then they head off to larger roles. To reduce turnover, we need to ensure we have the ability for people to use the growth they have gained within our organisation. People also report leaving for higher remuneration and we are beginning to analyse how competitive we are in the market and will use this to inform our remuneration approach. As we build and recruit different capabilities we will need to position remuneration for people demonstrating these capabilities and this is expected to require higher pay rates. This will continue to put pressure on remuneration affordability and will be prioritised alongside other investments. We will need to rely on other levers, such as non-remuneration benefits of working at the Ministry to attract applicants. As part of an upcoming recruitment review and implementation of our new strategy, we will give consideration to its non-remuneration benefits as a way of attracting a broader group of applicants. We will also continue with mitigation strategies such as having back up on key pieces of work, ensuring knowledge is shared and good handovers from staff who do leave. Difficult to recruit positions now and for the next four years are: evaluation specialists highly specialised science roles required for work such as independent domain reporting required under the Environmental Reporting Act 2015 experienced senior policy analysts, particularly those with expertise in non-regulatory interventions experienced managers. Ministry for the Environment Four Year Plan

46 Increasing work demands unmatched by increases in resources will require us to get clearer about priorities and utilise our agile workforce to ensure resource is in the most needed place. Increasing work demands without resource is likely to put further pressure on our ability to retain our staff. Our strategic and delivery intentions over the next four years require that the capability shifts outlined in this strategy are realised. To ensure this, we will create an action plan, governed by Directors, that prioritises, resources and evaluates key activities to enable these capability shifts. This will be underpinned by clear expectations to staff of what is expected of them. Ministry for the Environment Four Year Plan

47 Capital and asset management intentions / / / / /21 $0.000m $0.000m $0.000m $0.000m $0.000m Opening Balance of funding available (6.903) (16.395) (16.092) Add depreciation funding received Add receipts from sale of assets Equals Total Baseline Funding Available (6.260) (15.752) (15.449) Subtract capital investments funded from baselines (4.293) (10.640) (10.135) (0.340) (0.345) Equals closing baseline funding available (6.903) (16.395) (16.092) (15.794) Ministry for the Environment Four Year Plan

48 Strategic risk and assurance Late last year we reviewed our audit and risk functions. An agency of the Ministry s nature requires a strong Risk and Assurance function, focused on providing advice and support across the organisation, including to the leadership team. This is a shift from what we have needed in the past, which has been more focused on internal assurance, and particularly audit and control functions. The Internal Audit function has provided assurance on a mix of financial and organisational practices at the Ministry, contributing over the years to help strengthen our control environment, which is rated by Audit New Zealand as relatively strong. There is however an expectation from the business for more value-add from the assurance activities in the future, and we recognise that our risk management practices are not yet sufficiently mature to help us achieve our outcomes. We will focus more on our key organisational risks and less on compliance. We plan to develop our risk appetite and embed a strategic risk approach and culture, with more focus on risk optimisation, not just on risk control and mitigation. This is consistent with the behaviours we are seeking to foster in our edge within our strategy on a page (see appendix b). We are shifting this function so that it delivers two services which are distinct and complementary advice on strategic risk, and assurance about delivery. It will develop a clear vision, objectives, priorities and focus action for each aspect of its risk and assurance roles and services. A visible ability to influence change and to make an impact should be seen as one measure of success for the function, noting that for this to occur, it also requires a mutual partnership approach from the business. Over-arching strategic risks associated with the successful achievement of the outcomes in this plan include: Capability and capacity risk associated with our workforce Confidence and support - risk of erosion or loss of Ministerial confidence and support Complexity risk associated with the interconnectedness of the environmental management system, the Ministry s place in that system and the interrelationships that must be optimised to achieve our outcomes. These risks are inherent in the environment and context within which the Ministry works, and will be actively managed as part of the implementation of this Four Year Plan. A new Strategic Risk and Assurance Adviser has recently been appointed. In line with our new approach to risk management outlined above, the Ministry s strategic risk profile will change and develop over time as our risk management culture and behaviours are refined and embedded. Ministry for the Environment Four Year Plan

49 Appendix A: Natural resources system Outcomes and priorities for the natural resources system THE NATURAL RESOURCES STORY New Zealand s natural resources make a significant contribution to our economy and are integral to our sense of wellbeing and our cultural identity as New Zealanders. Our natural and built resource base is a source of our global competitive advantage - New Zealand trades on its international reputation for producing safe food and having a clean and green environment, including for tourism, and our low cost of production. As a resource-based economy with an environmentally-based brand, we need to manage and invest in our resources carefully to ensure we can sustain economic growth from our resource base in a socially and environmentally sustainable and enduring way that also provides for future prosperity. This is because a strong economy and high quality of life are dependent on a healthy environment. THE NATURAL RESOURCES SECTOR NRS STRATEGIC PRIORITIES The Natural Resources Sector is a group of eight government agencies with the shared goal of improving the way we invest, plan, and allocate our resource base is critical for future export growth, future prosperity, and adapting to a changing international context. Background The NRS is working together to achieve specific outcomes in five areas climate, land, water, oceans and biodiversity. We will do this by: Working with partners throughout the natural resource system Ensuring that everyone in the system has the information and data they need for better decisions, investment and innovation Ensuring maximum value is gained from user-friendly and strategic science and research programmes that are aligned with long-term needs. The focus of the NRS Refresh 2015 was to ensure closer alignment between the NRS work programme and Ministerial priorities. In 2016, NRS Chief Executives reviewed their priorities in light of their stewardship responsibilities and the changing global context. This resulted in shifts of focus and emphasis rather than major pieces of new work. NRS Chief Executives agreed to: OUR AGENCIES The eight Natural Resources Sector agencies are: Ministry for Primary Industries Ministry for the Environment Department of Conservation Ministry of Business, Innovation and Employment Ministry of Transport Te Puni Kōkiri Land Information New Zealand Department of Internal Affairs. The Ministry of Foreign Affairs and Trade has now joined the NRS Programme Governance Group as a full member. The NRS is supported by the State Services Commission, the Department of the Prime Minister and Cabinet, and the Treasury, and works with local government, Iwi/hapū, business and others. Refocus the work on land productivity and regional development and resource allocation to highlight the critical dependencies between land use and resource allocation in the urban/rural interface Expand the current focus from energy and emissions to include the broader climate change work programme (adaptation and mitigation) Expand the NRS focus on marine to move from dealing issue-to-issue and into addressing the themes that are emerging across multiple areas of work (e.g. working with iwi, spatial allocation, ecosystem approach) The focus on freshwater was reconfirmed without change Bring in a new focus on impacts and opportunities for biodiversity across the system. Chief Executives also reconfirmed their commitment to a focus on the cross-cutting themes as system enablers with a particular need to consider the changing role of local government. The six NRS Focus Areas have been re-shaped to reflect the shifts agreed by Chief Executives and, at their request, re-worded as outcomes - see diagram on this page. The three NRS cross-cutting themes have also been re-worded in the same fashion. Ministry for the Environment Four Year Plan

50 Outcomes and priorities for the natural resources system GOAL: We will invest in our natural and built resource base as a source of global competitive advantage OUR LAND NRS PGG LEAD: Deborah Roche (MPI) Our land is sustainably used to its best value and in a way that maximises its future potential We need to manage our land in a sustainable and agile way to improve land productivity, including Māori land, and have our land use decisions better contribute to regional and national development. It is critical we ensure the quality of our land resources provides for potential future uses. NRS COLLECTIVE PRIORITIES Improve the resource allocation and planning system and management of the rural/urban interface Future of Resource Management and Planning System Managing land use at the rural/urban interface Regional development (including Special Economic Zones) and urban development Improve the productivity of land while reducing environmental impacts and preserving long term economic productivity and flexibility Support Predator Free 2050 (BGA) Enable Māori trusts and landowners to make and implement decisions about the use of their land Support Māori land activities as required OUR WATER NRS PGG LEAD: Jane Frances (MfE), Deborah Roche (MPI) Thriving communities care for and get what they need from their freshwater We need to improve freshwater quality and ecosystem health and gain increased value to iwi, communities and business from more efficient freshwater use. We need a positive and credible story to tell to New Zealanders and global consumers about what we are doing, and clear information to back it up. NRS COLLECTIVE PRIORITIES Improve freshwater quality and ecosystem health Implementation of NPS-FM Freshwater Improvement Fund Increase value from more efficient use of freshwater Freshwater allocation, including recognising iwi rights and interests in freshwater Economic growth based on good environmental practice Ensure the use of good management practices for freshwater Investment in infrastructure and water storage(bga) OUR OCEANS NRS PGG LEAD: Penny Nelson (MfE) New Zealand realises the full potential of its marine resources in a sustainable and innovative way We need to further develop our aquaculture, fisheries and other marine industries while maintaining marine biodiversity and sustainability. Increasing interest and pressures will require different approaches to managing our marine space and resources, and clear roles for central and local government. This includes moving from dealing issueto-issue to addressing the themes that are emerging across multiple areas. NRS COLLECTIVE PRIORITIES Improve existing marine management regimes Marine protected areas Secure aquaculture space Fisheries management regime review (BGA) Develop a coordinated approach to improving the quality of the marine environment and allocation of marine resources Understanding how spatial and resource allocation approaches should work together Working with Treaty partners and stakeholders OUR CLIMATE AND ENERGY NRS PGG LEAD: Penny Nelson (MfE) New Zealand is a more productive, low emissions economy that is resilient to a changing climate A successful New Zealand is one that can grow its economy over time while reducing its emissions. New Zealand can do this through productivity growth within existing patterns of economic activity and growth that involves the reallocation of resources from high to low emissions activity through the production of more innovative goods and services. It also requires New Zealand to adapt, where cost effective, to the impacts of climate change in order to maintain our natural resource advantages. NRS COLLECTIVE PRIORITIES Transition to a lower emissions economy NZ ETS International markets Forestry and agriculture Energy and transport Improve resilience of resource-related industries to the economic and environmental impacts of climate change Clarify NRS role and focus of effort in long-term climate adaptation work programmes OUR BIODIVERSITY NRS PGG LEAD: Bruce Parkes (DOC) Our management of natural resources recognises how biodiversity delivers economic, social, cultural and health benefits to New Zealanders Biodiversity describes the variety of all biological life (plants, animals, fungi, and microorganisms), the genes they contain, and the ecosystems on land or in water where they live. It is the diversity of life on earth. NRS COLLECTIVE PRIORITIES Invest in and grow the resilience and health of New Zealand s ecosystems, enabling sustainable primary production whilst maintaining and enhancing ecosystem health and protecting native biodiversity. Reduce the direct pressures on biodiversity by addressing the underlying causes of decline, and enhance the benefits to all from biodiversity and ecosystem services, by working on: Implementing the NZ Biodiversity Strategy and Action Plan Developing a National Policy Statement on Biodiversity Improve consideration of and investment in natural capital in the Resource Management system OUR SYSTEM ENABLERS Our work achieves the most it can because we work with Treaty and system partners PGG LEAD: Jane Frances (MfE) NRS COLLECTIVE PRIORITY Advancing collective priorities with local government and business; improving engagement with Māori Everyone in the system has the information and data they need for better decisions, investment and innovation PGG LEAD: (LINZ) NRS COLLECTIVE PRIORITY Improving data and tools required to support achievement of NRS priorities Maximum value is gained from user-friendly and strategic science and research programmes that are aligned with long-term needs PGG LEAD: Paul Stocks (MBIE) NRS COLLECTIVE PRIORITY Conservation and Environment Science Roadmap and MPI Roadmap. COMMON CUSTOMERS What can they expect from us over the next four years? LOCAL GOVERNMENT Fit-for-purpose regulations, national guidance and other support that enables councils to carry out their different functions Joined up, coordinated approach to supporting implementation of national direction by local government agencies. IWI/HAPŪ Greater recognition of the Treaty partnership Improved internal and cross-agency coordination of consultation and other touchpoints BUSINESS Improved certainty of significant changes to the system that will affect them in future years Regular review and improvement of regulatory systems over time PUBLIC Improved collaborative models Better provision of information to inform decisions (ours and theirs) Ministry for the Environment Four Year Plan

51 Appendix B: Strategy on a Page Ministry for the Environment Four Year Plan