On 10 June 2014, the First Minister announced an investigation into a letter Davies wrote to Natural Resources Wales (NRW) regarding environmental concerns with the proposed development of the Circuit of Wales race track in his own constituency. As well as making up part of his ministerial portfolio, NRW had expressed concerns about the race tracks development. In an investigation undertaken by Permanent Secretary Sir Derek Jones CMG, his report published on 1 July 2014 concluded that Davies had breached the Ministerial Code. The report noted that in March 2013, Davies had been advised by his own department not to lobby even as the AM in the case of the race track, but had ignored this advice and had then written to NRW as the affected AM. The report also revealed that the First Minister had contacted Davies in August 2013, after Davies had expressed support for the circuit openly in quote to the "Western Mail" newspaper. Davies faced no punishment by the First Minister, but endured sustained calls for him to resign due to his behaviour.