Network Magazine Future Cities 2016

NETWORK NEW YORK / LONDON

Future Cities

Featuring insights from Arup, IBM, Mckinsey & Company, American Airlines, Transport Focus and many more.

Interview with Michael Stewart, Chief Executive of Edelman Europe.

Inside:

British artist Alex Chinneck on his latest city installations.

Cover image: ‘A Bullet from a Shooting Star’ photograph by Seam Lightning

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Contents

60 Seconds – Michael Stewart, President and Chief Executive Officer, Edelman Europe & CIS

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Author Spotlight – Greg Lindsay Co-Author of ‘Aerotropolis: The Way We’ll Live Next’

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How Can Cities and Regions Attract and Retain Talent – Tina Hallett, Partner PwC

Interview with British Artist and Sculptor Alex Chinneck

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2 Welcome from our CEO New IAB and Board Members 3 Meet The New Members

12 Future Technology to Streamline and Enhance the Flying Experience

Features

13 Enforcing US Judgments in the English Courts Smart Cities are Resilient 14 Future Cities – An Opportunity to Breakdown Industry Silos Building a Smart, Social and Sustainable London 15 Why Strategy Matters? The Changing World of Communications and Corporate Affairs The Future of the City of London

Insight

4 Smarter Thinking for Cities with Meaning 5 Why Cities, Not Countries, Are Tomorrow’s Growth Goldmine 6 60 Seconds with Michael Stewart, Chief Executive Officer Edelman Europe & CIS 7 How Can Cities and Regions Attract and Retain Talent?

8 Improving Transport Links in the North of England 9 Making the Railway Smarter 10 Smart Cities and Smart Energy 11 How Does Big, Open Data Help Create Smarter Cities?

Improving Transport Links in the North of England – David Brown, Chief Executive, Transport for the North

Event Highlights – Business Immigration Conference in partnership with Magrath LLP

20 Affordable Homes, A Business Issue that Requires Action

Events

21 BritishAmerican Business Annual Christmas Luncheon 2015 22 London Event Highlights: Business Immigration Conference, Perspective Series: Making Sense of the US Elections, TTIP ‘Four Sectors, Many Stories, One Ambition’ Publication Launch and Thanksgiving Reception.

Culture 23 New York Event Highlights: Leadership Forum Inaugural Session, CEO Presentation 16 Author Spotlight with Greg Lindsay, Co-Author with Steve Holliday and Ambassadorial of ‘Aerotropolis: The Way We’ll Live Next’ Briefing with Matthew Rycroft 18 Interview with Alex Chinneck, British Artist and Sculptor 25 Events Calendar: New York and London

London Staff

BritishAmerican Business

Jeffries Briginshaw, CEO, BritishAmerican Business jbriginshaw@babinc.org

Mairi Maclennan Project Manager, Policy mmaclennan@babinc.org

Vina Bongiorno, Director - Membership vbongiorno@babinc.org

Rachel Reaney, Communications Manager rreaney@babinc.org

New York 52 Vanderbilt Avenue, 20th Floor New York, NY 10017 Tel: +1 (212) 661 4060 nyinfo@babinc.org Editor Rachel Reaney

www.babinc.org

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Policy

Office Address London 12 Phillimore Walk West Wing, 2nd Floor London W8 7RX Tel: +44 (0)20 7290 9888 ukinfo@babinc.org

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Helen Anderson, Director – Communications and Events handerson@babinc.org Tariro Masukume, Membership Manager tmasukume@babinc.org

Get Social

Emanuel Adam, Head of Policy and Trade eadam@babinc.org John Adam, Office Manager, Accountant jadam@babinc.org

Jillian Gable, Membership and Events Assistant membership@babinc.org

Sherry Dolatshahi, Executive Assistant to the CEO sdolatshahi@babinc.org

Dave Octave, Event and Marketing Manager eventandmarketingmanager@babinc.org

Natalie Raeched Event Manager eventmanager@babinc.org

@BABLondon

“BritishAmerican Business”

BritishAmericanBusinessLondon

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CEO I BritishAmerican Business

Welcome

Jeffries Briginshaw I jbriginshaw@babinc.org Many of us will remember growing up in the suburbs. Then as our city centres declined and property prices dived in historically high quality neighbourhoods, we moved back, renovated, repurposed and re-energised our downtowns. These now across the US and UK are our cities of today; and we love them. In comparison to the “closed on Sunday and Wednesday afternoon” dimensions of the post war period, we live in vibrant, diverse, exciting and restless urban melting pots which create value from difference. But what about our future cities? We are seeing populations beginning to re-inhabit the suburbs.

This is often the only option for a millennial workforce that mostly can’t afford to live in those regenerated bijou inner city districts that everyone loves. And with many cities individually representing high percentages of national GDPs, it’s not just what is next for the city folk who live in them. We need to ask what’s next for cities as economic ecosystems as they think forward on what it takes to sustain and prosper.

This edition of Network Magazine is a special one – special in the sense that it’s our ‘Future Cities’ themed edition. The issue gives our members an exciting preview of the stimulating topics that will be discussed during our Annual BritishAmerican Business Council (BABC) Transatlantic Conference: Future Cities: Smart, Sustainable, Social to be held in London on May 12th this year (www.babinc.org/our-events/).

For those of you who don’t already know, the BABC conference is a highlight of our events calendar and this year’s agenda aims to address the challenges cities and business face in 2016 onwards. We’re proud to be partnering with News UK who will be hosting an exciting array of expert speakers from the US and the UK in their stunning News UK venue overlooking the Thames – one not to be missed! With this in mind, we’re offering all Network Magazine readers 25% off all conference ticket options using code ‘NetworkFC’. Register online at www.babinc.org now.

Inside this issue you’ll find contributions from an impressive array of businesses, including our Future City conference partners: Arup, American Airlines, City of London Corporation, and Mckinsey & Company, plus further insights from PwC, Transport for the North, Transport Focus, IBM, Willis Towers Watson, and Portland Communications, to name but a few.

If you turn to page 25, you’ll find a list of our upcoming events.

I’m pleased in particular to share with you that our summer calendar highlight will be the 2016 Annual Corporate Citizenship Awards Dinner. We’re proud to be honouring Peter Grauer, Chairman of Bloomberg, Steve McGill, Group President of Aon and Xavier Rolet KBE, CEO of the London Stock Exchange Group. It’s an evening not to be missed so book your table early now!

New Board and IAB Members BritishAmerican Business (BAB) is governed by a transatlantic Board of Directors, led by our Chairman, Nicholas Walsh, Senior Advisor at AIG and our President and Deputy Chairman, Christopher Perry, President Global Sales, Marketing & Client Solutions, Broadridge Financial Solutions. The Board’s active support and commitment to BAB and its objectives are important to ensuring our continued success as an organisation. We also enjoy strong support from our International Advisory Board, consisting of Chairmen and CEOs from more than 100 major multinational companies.

We are delighted to announce that the following new members have recently joined our Board of Directors and International Advisory Board.

NEW BOARD MEMBERS Luis Arriaga Managing Director, (UK, Ireland & Nordics) UPS

Clare Francis Managing Director, Head of Global Corporates Lloyds Banking Group

Mark Tweedie UK Corporate Banking Head Citi

Josh Sapan President & CEO AMC Networks Inc

John Pettigrew Chief Executive, National Grid

NEW INTERNATIONAL ADVISORY BOARD MEMBERS Dr Catherine Raines CEO, UK Trade & Investment

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New Members

www.aggreko.com

www.dprism.com

Aggreko is the world leader in fast-track, interim power supplies and temperature control solutions. With operations in more than 100 countries and 10 GW of generating fleet, Aggreko supports national utilities and a wide array of industries across the globe.

Is a digital transformation consultancy which enables companies to operate and thrive in the digital economy.

The dprism team is made up of former operating executives each working to help companies understand their digital potential and to execute digital change in order to realize that potential. Digital Prism empowers companies with digital business solutions, improved operations, bottomline digital growth, and true digital innovation.

Nicholas Van Santen, Corporate Communications Manager Nicholas.VanSanten@aggreko.ae 21 Palmer Street, London, SW1H 0AD, UK +44 (0)20 7227 0090

Adriaan Bouten, Founder & CEO abouten@dprism.com 21 West 46th Street, 7th Floor New York, New York +1 347 817 7985

www.aviserv.co.uk Aviserv Ltd is a Global Aviation service provider: specializing in Recruitment, Commercial Cleaning and Meet & Assist including Limousine service. We operate out of London Heathrow and our sister company operates out of Dubai, Mumbai and Bangalore International Airport.

Ahamed Wadood, Business Developer Executive ahamed@aviserv.co.uk Sovereign Court, 635 Sipson Road, Sipson, Middlesex UB7 0JE +44 (0)20 8759 5903

www.infrastructuregroup.net Infrastructure Group, Inc. provides Asset Management, Principal Investing, FinTech, and Corporate Development for United States and international clients. IGI is the founder and General Partner of Algorithm Innovation Fund, LP, a multi strategy hedge fund focused on alternative fixed income asset classes in the FinTech sector in the US, the UK and Ireland.

George A. King, Chairman gking@infrastructuregroup.net 79 Madison Avenue Suite 200, New York, NY 10016 US +1 917 855 7905

www.caterpillar.com For 90 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. Customers turn to Caterpillar to help them develop infrastructure, energy and natural resource assets. With 2015 sales and revenues of $47.011 billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company principally operates through its three product segments – Construction Industries, Resource Industries and Energy & Transportation – and also provides financing and related services through its Financial Products segment.

www.mga-ideas.com We see every communication strategy we produce as a campaign, whether we’re promoting a benefits programme to employees, marketing a new product to existing customers or inviting new customers altogether to engage.

We take the narrative we’ve created and express it creatively through well-considered channels that fit the budget, reach the right audiences and support the story of what’s extraordinary.

Denise Peet, UK Senior Government Affairs Manager peet_denise@cat.com

Iain Hunter, Group Head of Client Services ihunter@mga-ideas.com

Eastfield Frank Perkins Way Peterborough, PE1 5NA UK +44 (0)78 2513 1528

79 Westen Street, London SE1 3RS, UK +44 (0)20 7234 8983

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Smarter Thinking for Cities with Meaning INFRASTRUCTURE

By Jerome Frost Global Planning and Cities Leader, Arup

Cities are a complex interplay between people and space and it is only by understanding those relationships that we can hope to design meaningful infrastructure

It may sound obvious, but cities are nothing without the people that live in them. The inhabitants of a city shape its character and no matter where you land in the world, each city has its own unique pace, noise and atmosphere.

Recognising the critical role of a city’s inhabitants is becoming increasingly important in an era when those citizens have so many more tools for getting involved in the discussion about how their city evolves and develops. Netizens and social activists around the globe are increasingly demanding a say in how their cities are reimagined for the future and it is a brave Mayor or City Leader who goes too far against the grain.

That trend is one of the factors that has led to the development of what one might term ‘meaningful infrastructure’. This is hard and soft infrastructure that is conceived with the express intention of providing value well beyond the narrow confines of its core purpose for one group within the city.

It is no longer enough to simply design a storm overflow catchment. Instead, there is an increasing awareness that it is far better to design a park that provides an amenity for local people within an area that also functions as a storm overflow catchment in the event of a flood.

This principle is gradually being extended across the public realm. By embracing the power of meaningful infrastructure, it is possible to bring in a wide range of voices to shape a more holistic and integrated city that works for more of its people. Indeed, many progressive city leaders are already becoming far more sophisticated in how they communicate new plans and build public support for major schemes. These conversations are not merely conducted as a means of countering opposition, but instead they form an integral part of the process of finding better, more effective solutions for a shared urban landscape.

Today, smart city leaders judge projects not just on the isolated benefits of a single objective, but on the multiple co-benefits created for all sorts of communities around the scheme.

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Take London, for example, the development of the area around the new King’s Cross St Pancras train station stands as a testament to the multiple benefits that can accrue to diverse communities around a single ‘transport’ scheme. Right from the start, King’s Cross was conceived as far more than simply a new railway station. It was always intended to be a destination in itself, with a broader purpose that draws wider audiences who want to enjoy the culture and lifestyle that this area now represents.

It is a remarkable transformation in what was previously a very rundown area. However, it is a regeneration success that could not have been achieved without designing the railway station as something far more than a simple transport hub. And it could not have been designed without considering the needs and aspirations of a wide array of participants, all working toward a shared vision for the redevelopment.

Participative democracy can be a messy process, of course, so it is important that city leaders have a strong sense of the challenge they are trying to meet when embarking on new projects. At the same time, they need the right tools to explore potential solutions with citizens and stakeholders.

For some, the challenge will be city resilience to ensure that their city can respond to economic or social shocks. For others, it might be the growth agenda or urban regeneration, while some cities will want to tackle climate change or shift toward an integrated digital future. Whatever the challenge, though, it is critical that there is a clear process for bringing multiple stakeholders to the table in a meaningful way to explore ways in which to harness co-benefits for the wider community.

Meaningful infrastructure represents the future of the city. Working with city leaders and citizens to shape our streets together. It is an important development that is likely to make for a lively discussion and some really innovative city thinking.

Meaningful infrastructure is one of the themes that will be explored further at the BAB Future Cities event in May in London. www.babinc.org

Feature

Why Cities, Not Countries, Are Tomorrow’s Growth Goldmine URBAN LIVING

Vivian Hunt

Managing Partner of McKinsey’s United Kingdom and Ireland offices

Jaana Remes

McKinsey Global Institute Partner, San Francisco

With China’s investment boom fading, and secular stagnation a concern in many developed economies, the question on the minds of many executives is which country will be the next hot growth market.

New research shows that the question may be the wrong one to ask. Instead of searching the globe for growth, companies should be identifying the demographic groups that have the most spending power. Where and who are the consumers who can propel the global economy forward?

First, let’s look at where key consumers of the future live. The answer is cities. MGI has identified three groups of urban consumers that will drive more than half of global consumption growth over the next 15 years. More than 91% of world consumption growth over the next 15 years will come from urbanites.

Global urban consumption is extraordinarily concentrated – just 32 cities are likely to generate one-quarter of the $23 trillion in urban consumption growth projected from 2015 to 2030. In 2030, just 315 large cities in China and North America are likely to contribute more than 40% of global consumption growth. Roughly 700 large cities in China alone will account for $7 trillion, or 30%, of global urban consumption growth to 2030. The only European city in the top 20 areas for consumption growth over the next 15 years is London.

Companies need to gather deep intelligence down to the level of individual cities because urban consumption patterns will not evolve at an even pace, even within the same country. In 2012, the median age varied by a decade in the oldest and youngest cities in South Korea and Spain, and by more than 20 years in the United States.

Demographic differences among cities are only likely to widen as economies age. Some cities will be left behind. Six percent of large cities are already experiencing declining populations, while others (largely in the emerging world) are still growing.

Second, let’s examine who these consumers are. MGI finds that three groups have the size and purchasing power to shape global consumption: 1. The retiring and elderly in developed economies have genuine global consumption power that many companies still focused on the relatively “glamorous” youth market have not

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yet appreciated. Their number is set to grow by one than one-third between 2015 and 2030 from 164 million to 222 million. They will generate 51% of urban consumption growth in developed countries, and 19% of global urban consumption growth. The US elderly will account for more than 40% of consumption growth in housing, transport, and entertainment.

2. China’s working-age population has the potential to reshape global consumption just as the West’s baby boomers – the richest generation in history – did in their prime. Between now and 2030, their number will increase by 20% – an additional 100 million people. Their per capita consumption is expected to more than double. By 2030, these consumers will spend 12 cents of every $1 spent in cities worldwide. Investing in the next generation is a major priority – 12.5% of their consumption growth will be on education, virtually the same as in Sweden. These consumers are willing to save less and spend more, suggesting that China’s transition to a consumer-led economy is a reality.

3. North America’s working-age population is still a large and important market but a more challenging one. Many young people face the triple whammy of an income squeeze, high unemployment, and large student debts. Their number is set to expand by 7% over the next 15 years and their per capita income by 24%. Income inequality in this group is rising so companies will need to offer them attractive goods and services at very different price points.

Rising inequality, diverging city demographics and growth prospects, and consumers from emerging economies with richly varied cultures and spending habits as well as large income differentials bursting onto the scene all add complexity to the consumer landscape. Companies with the skills to develop tailored products and services to meet the needs of these varied “consumers to watch” and have the skills to manage multiple brands in parallel are most likely to prosper.

This article draws on a new McKinsey Global Institute report published in March 2016. Urban world: The global consumers to watch is available at www.mckinsey.com/mgi

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Feature

60 Seconds with...

INTERVIEW

What’s on the horizon for Edelman in 2016?

It is an incredibly exciting time to be working in the communications industry. At Edelman we will continue to help our clients evolve, promote and protect their brands and reputations across multiple channels, with earned as the new paid. Our history as storytellers, our speed and our credibility give us advantages over an ever increasing competitor set. As an organisation we are both global and local, with deep ties in each market so that our work reflects local cultural norms.

In 2016, we will continue to build on our research and IP to help our clients navigate the world’s increasing complexity. In the summer, we’ll be launching a pivotal global study ‘the Earned Brand’ that looks at consumer attitudes towards brand awareness and activism across 12 markets. We will also continue to track how the state of trust impacts business – our most recent study revealed the largest trust gap between elites and mass population, which is clearly playing out in the rise of populist politics in many countries around the world.

Describe a highlight in your professional career so far?

The most formative highlight of my career occurred very early. In my early twenties I had the great fortune to be elected President of the largest international student-run organisation in the world, the International Association of Student in Economics and Commerce (AIESEC). It is an organisation that combines lofty idealism (promoting world peace) with pragmatism and concrete deliverables (providing international work and cultural experience for students and recent graduates from more than 90 countries). Like many Americans of modest income, before joining AIESEC while at university I didn’t have a passport and had no international experience whatsoever. By the time I had finished my term as President four years later, I had led a team of young professionals from more than 20 cultures, spent time in several dozen countries, established deep personal and professional relationships with people from all over the world, and gained

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Michael Stewart

President and Chief Executive Officer Edelman Europe & CIS

experience in working with very senior leaders in business, government and the social sector.

It was transformative in more ways than I can describe and enabled me to lay foundations that I continue to benefit from today.

What’s the best advice you can give to future leaders?

First and foremost, stay constantly curious and embrace change, new challenges and new contexts. The pace of change and disruption are only accelerating, and the leaders of today and tomorrow must constantly build new skills, behaviours and mindsets throughout their careers, rather than thinking ‘what got me here will get me to the next level’. Foundational to staying constantly curious is being a constant and broad reader. My most frequently asked question in interviews is “What are the five most interesting things you’ve read this week?”

The more eclectic the list, the higher the leadership potential in my experience.

In your opinion what are the big digital trends to watch this year?

One of the most overlooked digital trends is that globally we are moving to a society that is now a mobile majority, and this will enable new brands to emerge to the fore, cultivate new behaviours and create massive disruption in business.

Most people reading this magazine will of course had smart mobile devices for a while, but for many hundreds of millions it’s still new and high speed networks are just ramping up in adoption. Broadband changes what people do with technology and we are witnessing that right now on a massive scale.

The next wave of giants are technology distribution and connectivity platforms that put smartphones first, not second – companies like AirBnB and Uber in the US, WeChat in China, and KaoKao in Korea, just to name a few. And they are often not only the most used, but among the most trusted brands people turn to. They know it’s a mobile and social first world. Other legacy brands will need to do the same.

How do you spend your time outside of the office?

I am on the road with work more than two hundred days a year, so when I am not traveling, spending quality time with my wife and two daughters is paramount. We are equally likely to be found taking long rambles across the Chilterns or exploring every nook and cranny of London. After fifteen years in London we still constantly discover new and wonderful places to see and things to do across the city. In addition, my wife Stephanie is heavily involved in Democrats Abroad and Hillary Clinton’s presidential campaign so we dedicate a lot of time as a family to both.

Who inspires you?

People who have the courage of their convictions, the courage to always do the right thing, whatever the consequences.

What is your concept of a ‘Smart’ city?

A smart city is one that is innovative in its use of technology, design and governance to maximize the social, economic, cultural and environmental quality of life of its citizens, while using least resources possible.

What’s the best thing about living/working in London?

I have lived in London for 15 years and whenever I land at Heathrow I truly feel that I am arriving home. There is no one ‘best thing’, it is a combination of attributes that make London so special. We live in one of the most vibrant, diverse, international, open-minded cities in the world. We have a highly informed and engaged polity, a world class business community, an incredible arts and culture ecosystem, remarkable culinary choices, a great sporting tradition, and in my view one of the most robust and high quality media sectors in the world, just to name a few. And then there is the secret weapon of GMT. While not always fun, the ability to work the clock from Shanghai to San Francisco in a day, or fly to many of the world’s leading cities in six hours or less, is a great advantage.

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Feature

How Can Cities and Regions Attract and Retain Talent?

By Tina Hallett

TALENT

Partner, PwC

Another Monday morning and I am back on the train to London.

Although born in Wolverhampton and living in Bristol, my week is largely spent working in London; and I am not alone.

There is no doubt that London is a major magnet for talent, both globally and for the UK. As the Centre for Cities showed in their latest Cities Outlook, every year significant numbers of people leave the regions and move to London, and few go back. Policy Exchange highlighted the multiplier effect such movements have, with cities with lots of talent creating more jobs and attracting in new businesses from elsewhere. It is estimated that for each new high tech job in a city, five additional local jobs are created outside of that sector. Added to this is the weekly North-South talent leak, with many travelling south on a Monday and back north on a Friday.

This is a significant issue for growth outside London – skills are recognised as a high priority for economic growth. Our 2015 Global CEO Survey found that 84% of UK CEOs are concerned about the scarcity of the right skills and the lack of access to talent, and two thirds (67%) believe that a priority of government should be to create a skilled and adaptable workforce where people are able to think and work in flexible ways.

With skills critical to economic success how can businesses in cities and regions counteract the lure of London and attract and retain the talent they need to grow and prosper?

Local areas are increasingly focusing on skills investment in their strategic economic plans. Much of the emphasis, however, is on improving lower level skills or attracting and retaining people at the start of their working lives, including graduates. For the private sector, attracting and retaining high level talent – those individuals further in to their careers who can make a difference to organisational performance, either in the immediate or longer term – is also a pressing concern.

Our local government survey, ‘The Local State We’re In’, highlights the need to take a local approach: 86% of council chief executives and leaders identify more control over skills as a priority for decentralisation, second only to additional planning powers. www.babinc.org

Collaboration across a place will be key, with a particular need for universities and large local employers to support each other to attract and retain talent.

Places – whether on a city, local authority or regional level – need to begin with a robust assessment of their economic strengths and weaknesses. That will allow them to define their priorities and what they uniquely bring to those who live and work there. Central government can clearly also play a role. The recent announcement that part of Cisco’s $1bn investment in the UK will focus on redressing North-South economic imbalance, being an example.

Research finds that jobs and employment opportunities, while necessary to attract and retain talent, are not sufficient. Our We the urban people research exploring what factors make a place attractive found people want opportunity foremost, with high intellectual capital and innovation the primary attraction. However, demographics and liveability are the second strongest draw. This mirrors research on the geographical distribution of talent in the UK that highlights an entrepreneurial culture along with the high provision of public goods and services are most important to attracting and retaining talent.

These findings emphasise the need for places to take a holistic approach to economic growth. For cities, the ‘offer’ to business needs to include an ‘offer’ for people. This means addressing the wider components of good growth, such as housing, transport, culture and environment, which in turn will help talent ‘stick’.

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Feature

Improving Transport Links in the North of England

By David Brown

TRANSPORT

Chief Executive, Transport for the North

The North of England covers an area of 14,414 square miles and includes the major cities of Manchester, Liverpool, Leeds, Newcastle and Sheffield. The region has a proud economic heritage, acting as the birthplace of the Industrial Revolution and containing the oldest passenger railways and canals in the world.

One of the barriers to growth has been a lack of adequate transport links. The North is linked by railways built in the 19th century and a network of highways, many of which follow the course of ancient routes and are only four or even two lanes wide.

Over recent years there has been a commitment to radically improve transportation links across the North, giving an opportunity to unify the region’s economic centres to create one northern economy known as the Northern Powerhouse. It is estimated that this could add an additional US$52 billion to the region’s economic output in real terms by 2030.

Set up in October 2014, Transport for the North enables the North of England to speak to Government with one voice on strategic infrastructure issues that if delivered will benefit the region as a whole. It is an alliance of local and combined authorities and local business organisations across the North of England, working in partnership with the UK’s national transportation bodies and the British Government’s Department for Transport.

Through transforming connectivity in the North of England, Transport for the North plans to rebalance the British economy.

Better connections between the region’s economic centres will increase the labour market available to business and bring more jobs within reach of the population.

Evidence shows that the North has four distinctive prime economic capabilities within the world economy that have the highest potential to drive growth and productivity: • Digital technology, including software and content; • Advanced manufacturing, especially materials and processes; • Energy, including nuclear and off-shore wind; • Health innovation, including life sciences, medical technology and service delivery.

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These capabilities need to be supported by world class higher education (the region contains 4 of the world’s top 100 universities), financial and professional services and logistics. Better transportation links will increase access to these assets across the region.

As part of its ambitious vision to deliver a world class transport system for passengers and freight, Transport for the North is developing long-term plans to improve rail connections between the region’s major economic centres. Due to the geography and population density of the North of England, rail is the most effective way to enable rapid links between the area’s major cities.

Plans are underway to revolutionise East-West rail links, slashing journey times and increasing capacity between Liverpool, Manchester, Leeds, Sheffield, Hull, Newcastle and the region’s major international airport, Manchester International. Northern Powerhouse Rail will connect with the forthcoming High Speed 2 (HS2) rail lines, which are being built to improve links between the North and London.

The plans for Northern Powerhouse Rail are as much about improving frequency and capacity for rail journeys between the North’s cities as they are about cutting journey times. This will create a passenger rail network that enables people with the skills to access the best jobs in the region, regardless of where they live.

Whilst it is still early days for Northern Powerhouse Rail, there is real investment behind the scheme with the Chancellor George Osborne announcing US$85 million of funding at the spring 2016 Budget to develop detailed plans for both Northern Powerhouse Rail between Leeds and Manchester by 2017 and for rail links between the other major cities in the North.

The Northern Powerhouse Rail developments, alongside HS2 and investment in the strategic road network, will also free up capacity for moving freight, making it easier to get materials to and from the region’s major ports at Grimsby & Immingham, Tees & Hartlepool and Liverpool. Looking to the future Transport for the North will continue to work in partnership with local and central government to develop a prioritised framework of programmes for investment. It’s an ambitious vision, but an opportunity that is there for the taking. www.babinc.org

Feature

Making the Railway Smarter TRANSPORT

By Anthony Smith Chief Executive, Transport Focus

‘Smart’ has become a common word for all walks of life in recent years. We have smart meters, smart motorways, and smart ticketing. But what does smart actually mean in the context of railways? And how can and should rail and indeed public transport more generally be made smarter for users? As the independent watchdog for users of rail and other modes of transport, our mission is to make a difference for them, by getting improvements made.

As things stand now, it is the passenger who needs to be smart to ensure that they are getting the best fare. Understanding what the difference is between two tickets at a ticket vending machine, with a big difference in prices, when you only want to go to Birmingham and back in a day can be minefield. This requires substantial levels of knowledge about availability of different operators, whether there are different routes, and what are this operator’s definitions of peak and off-peak.

Similarly, being informed that there are delays from Waterloo, because of signalling problems at Brookwood, requires a passenger to have an encyclopaedic knowledge of the railway network, to be able to work out whether their own particular train home is likely to be affected.

The railways have undoubtedly become smarter in recent years and passengers have seen improvements as a result. Operators have introduced apps, so that passengers can check trains, buy tickets, get their ticket on the phone, and then find out live running information about their train. Twitter has also become a valuable way for passengers to communicate with their train operators – both spreading network-wide announcements and engaging with individual passengers who have particular queries.

The introduction of Wi-Fi on trains can make the journey more productive and enjoyable for passengers. Although there is still huge disparity between operators in terms of the speed, reliability and cost. When it comes to ticketing, Oyster has been a great success in London. As well as saving money when compared with paying by cash, passengers have really welcomed being able to do away with paper tickets and use a www.babinc.org

more durable card, as well as being able to load pre-purchased tickets.

There is still some way to go, to make railways truly smart.

There are new developments in terms of ticketing on trains.

For example in the Northern Powerhouse, easier-to-use tickets should be available across modes. However, many ask, when other sectors have revolutionised the way they sell their product, why can’t we have a simple, integrated; flexible ticketing and payment system, which makes the best use of technology to deliver real benefits to passengers?

Capacity on the network is a big issue, particularly in the South East and other cities. Trains are already packed with commuters, even when everything is running smoothly. It only takes the slightest hiccup, whether it be a points failure or over-running engineering work and thousands of people become frustrated, disgruntled and late for work. Technology which improves the reliability and allows more trains to run on the tracks and into stations will undoubtedly make rail smarter. But so will better design of trains and stations: longer trains, with better internal configurations, and stations which enable passengers to get out quickly and to connect with other modes of transport easily.

We are fortunate that we have been involved for more than two years in the HS2 project. This is the opportunity to start from scratch in designing a new railway, and we are making sure that the passenger viewpoint is at the heart of these decisions. We have a panel of passengers who are having their say on what the trains should be like in terms of facilities, what stations and platforms should be like, how the timetabling should work and much more.

Passengers tell us that “to have any stress taken out of your journey, for a commuter, is a great thing.” It is crucial that smart means systems are designed and implemented with passengers’ needs in mind rather than what is convenient to administer.

Above all, a smart railway that uses data to deliver a personalised service via apps and other digital channels, and puts the customer in control of their journey, will be a railway that those customers will want to use again and again.

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Smart Cities and Smart Energy: How Cities are Helping Drive the Energy Revolution ENERGY

By Eric Woods Research Director leading Navigant Research’s coverage of Smart Cities

Cities are a focal point for some of the most profound economic, environmental, social, and technological issues facing the world today.

Not least of these is the need to move to cleaner and more efficient energy resources to meet the demands of a global urban population that is expected to expand by 2.4 billion people over the next 35 years.

Energy networks underpin the smart city, but cities are also examining the sources of their energy and how efficiently it is being used as they look to reduce both greenhouse gas emissions and energy costs.

At the same time, the energy sector is going through a series of profound changes. Driven by new technologies and the shift to renewable energy sources, this transformation is creating a much more complex energy market that offers greater choice as to how energy is generated, supplied, and consumed. As a result, commercial, industrial, and residential energy consumers are becoming more actively engaged in energy management and energy generation. Cities are also seizing opportunities to work with utilities and other stakeholders in the creation of new urban energy systems. Navigant Research estimates that the global market for smart energy technologies for smart cities will be worth almost $140 billion cumulatively between 2015 and 2024.

There are five key areas where cities are becoming more influential in shaping the energy sector: • Accelerating the shift to renewable energy. Cities are increasingly proactive in setting targets for their utilities to shift from fossil fuels to renewable energy in order to help meet carbon emissions targets. Cities are also encouraging residential and commercial energy generation through programmes to support solar PV and small wind generation, combined heat and power systems, and other community energy schemes.

City leaders worldwide, including over 50 cities in the United Kingdom, are committing to 100% renewable energy targets.

• Driving the adoption of smart grid technologies. Support for renewable generation by city authorities increases the pressure on utilities to deliver an infrastructure that can integrate these new resources in a manageable way and accelerates other changes in a city’s energy infrastructure. Cities are the focus of extensive smart grid pilots that are demonstrating the increased control, flexibility, and integration enabled by a digital infrastructure for grid monitoring and management.

• Increasing energy efficiency. Collaboration between city departments and local energy utilities to improve energy 10

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efficiency is one of the simplest and most effective measures for reducing the energy footprint of a city. Coordinating programmes for energy efficiency improvements is an obvious step and enables cities and utilities to target the most appropriate residents, businesses, and communities for retrofit and rebate programs.

• Increasing resilience. Resilience has long been part of the debate about the nature of smart cities, but it is becoming a much more central part of the discussion. Global cities at risk from coastal flooding include Mumbai, Shanghai, Miami, New York, and Tokyo. Resilience requires an assessment of each city’s complex and interconnected infrastructure and institutional systems – electricity networks are at the heart of this complex web. A failure in the electricity network can have a dramatic impact on water, sewerage, health, communication, and transportation systems. New York, for example, is looking to increase the use of distributed generation alongside other grid innovations to provide an energy infrastructure better able to cope with future events of that scale.

• Cities and energy markets. One of the most significant trends emerging around smart cities and their energy policies is an increasingly proactive approach to energy management. Cities are becoming active players in their local energy markets, collaborating with their existing utilities where it makes sense but also increasingly willing to challenge and even compete with those energy providers. In the United Kingdom, for example, a number of cities, including Bristol and Nottingham have set up or are in the process of establishing new city-owned energy companies.

The emerging vision is of a smart city that integrates large and small-scale energy initiatives, including major infrastructure investments, citywide improvements in energy efficiency, and distributed energy generation. In the process, cities will become clusters of smart energy communities that can exploit the benefits of these new energy systems. www.babinc.org

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How Does Big, Open Data Help Create Smarter Cities?

By Lauren Walker

BIG DATA

Senior Strategy Advisor for Analytics, IBM

A combination of open data and innovations in technology offers the promise to public sector leaders of improved visibility and delivery of their city services – everything from transportation, healthcare, policing, social services and even public engagement.

However, the cities that have realised the benefits have had to overcome the barriers created by organisational silos that typically slow collaboration. Those who have led the path in innovation have adopted the concept of a shared platform and systems of engagement with their citizens. A great example of this is what we have seen from the Mayor of London and Transport for London, who have created a treasure trove of open data capabilities from the data itself to widgets to collision blogs.

The rise of sensors in everything from parking meters to street lights to buildings means that we also have the potential to improve efficiency in how we manage and participate in our cities. Sensors have always been sending data in the form of messages, but it is only recently, that data has been harnessed by new, affordable technology and advanced analytics. Street lamps can now tell the city engineer that it has a broken bulb, parking meters can send a signal to nearby cars that it has an open space and buildings can respond to maintaining an eco-friendly level of heating outside of office hours.

Open data has made an enormous amount of data available and more accessible than ever before. In addition, the technologies to store, mine, analyse and visualise this information are more affordable than ever. Our only obstacle is finding the talent, like data scientists to exploit the data to uncover new beyond the horizon insights. However, within the UK & Ireland’s school, universities and organisations we have the early versions of these data scientists, maturing and eager to jump in to make a difference to our world.

Empowerment through Access Making previously hidden or ‘dark’ data available to our citizens increases civic pride and belief in the community. A first step can be as small as a twitter presence – communicating data on train delays, repairs and incidents, thus creating an early warning system for customers. These may seem basic, but they help manage expectations. Another step involves enabling co-creation with opening access to data. The availability of data from the TfL and the www.babinc.org

City of London have given numerous start-ups and individuals the fuel to empower their ideas into reality.

The power of sharing data with citizens has gained traction, especially now that more and more countries are delivering on their promises to release digital government public record data – much of which was never previously easily obtainable. Just as we want transparency in political decision making, we want transparency in the data that helps us make decisions in our daily lives as we travel to work, take our children to school and visit our local GP’s. Open data can help explain and justify key business and societal functions.

Turning Data into Insight Open health data, such as asthma related statistics, can be quite powerful when assessing treatment decisions, trends and locations susceptible to developing asthma, not only for GP’s but the NHS overall. Adding in additional data such as weather and demographic data has been helpful in making these insights more precise and actionable.

Another example includes publishing crime statistics. Not only does this show just how effective policing agencies have been, but it can also show how they have been able to advise on and prevent future crime. The availability of open data enables citizen participation and engagement. Furthermore, cyclists can now use specific mobile apps, which use this type of data as well as purchased data to advise them of the safest routes to travel in London and suitable places to leave their bikes, based on local crime rates, real-time congestion data and more.

The Dawn of a Cognitive Era The Internet of Things will soon be the largest single source of data on the planet, yet almost 90% of that data is never acted upon. Cognitive systems have the unique abilities to sense, reason and learn. They will only accelerate our ability to harness this realtime data, compare it with historical data sets and accumulated knowledge and then find unexpected correlations that generate further insights.

Open data is spurring innovation across all aspects of our lives.

Clearly the more data available, the greater the potential for all of us to use it in ways which improve our civic engagement and help to make our communities safer, healthier and more prosperous.

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Feature

Future Technology to Streamline and Enhance the Flying Experience

By Rhett Workman Managing Director, Government & Airport Affairs, American Airlines

TECHNOLOGY

“I believe the auto industry will change more in the next five to 10 years than it has in the previous 50” Mary Barra, CEO and Chairman of General Motors

Technology is altering every single aspect of our lives and continues to startle with its rapid advancement. You can now check-in through your mobile device, display a boarding pass on a phone, stay connected through Wi-Fi while in the air and even track bags in real time. But how do we predict and project what the future will look like when the next 10 years will bring us more change than the previous 50?

The airport terminal of the future will provide useful, timely information and the ability to customise their experience. Facilities that are designed to be intuitive and assist passenger flow means less time at check-in and security and helps to enhance the natural flow of the journey through the airport to the boarding gate. An increasing number of passengers use online check-in and self-service kiosks with the level of direct interaction with front line airline employees diminishing. Technology is changing the way we deal with our passengers and in many cases, their first interaction with us as an airline is at the gate. For those passengers who need to drop a bag, our first thought is how we can relieve them of this bag as quickly as possible and help them on their way through security.

Let’s just focus on one element of the travel experience as an example: the arrivals experience and baggage delivery.

Upon arrival, passengers will know the exact location of their bags at all times, and will be able to direct them to a specific carousel, rental car center, or bulk pick-up point. Baggage handling systems (BHS) in the airport terminal of the future will track individual bags using high-tech solutions that allow for real-time tracking.

Passengers will know from the moment that they reach the gate that their bags have arrived with them, and they will know where and when those bags can be retrieved.

As in-flight Wi-Fi becomes ubiquitous, technology will scale down the problems presented by irregular operations. A significant proportion of connecting passengers will rebook themselves while still in the air. These passengers will know their new itineraries 12

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when they land, and their smart devices will provide turn-byturn directions to their next gate, a customer service area, or an overnight hotel. For passengers arriving from international destinations, they may be able to clear customs and immigration while en route.

In the event that a bag is mishandled, the passenger will be able to choose from a menu of solutions on his or her smartphone or be directed to a baggage service office to resolve the issue. Airline employees would benefit, as they could focus on solutions, rather than investigating those problems and communicating them to passengers.

A positively-tracked individual carrier system will allow for nontraditional baggage delivery systems, including customised justin-time delivery. The airport terminal of the future could replace its large, bulky carousels with a modular system of lateral belts.

Passengers could reach a lateral, scan their smartphone, boarding pass, or other form of identification, and their bags could be retrieved and sent directly to the belt.

An integrated airport database would also allow for customised remote delivery options. A passenger could request that a bag be routed to a rental car center, and cruise and arranged tour passengers’ bags could be diverted directly to an industrial pick-up area. This would decongest the baggage claim hall and reduce the distance that passengers must carry their checked bags.

And the arrival experience and baggage tracking is just one of many areas that airlines are exploring future technology to streamline and enhance our customer’s travel experience.

Airlines have been criticised as being slow to adopt new technologies in the past but that is changing. With increased investment in aircraft, American Airlines is improving the inflight experience. The next step is to look closely at our airports and engage more lateral thinking on how we can make the entire passenger journey easier from start to finish and make your experience a more pleasant one. www.babinc.org

Industry Insight

Enforcing US Judgments in the English Courts LAW

By Donna Goldsworthy Partner at Irwin Mitchell

A shared language and significant business links mean that a transatlantic lifestyle can provide the perfect combination of convenience and financial opportunity. Due consideration, however, must be given to the protection of an asset portfolio spread across multiple legal jurisdictions. Litigation is a reality that many high net worth individuals must face and there are added difficulties of suing a defendant in a different jurisdiction, where assets may be beyond the reach of the court.

This article considers the steps an individual will need to take if they are to realise the value of a judgement awarded in a US court against a defendant whose assets are located in the UK. Common Law Regime Despite close political and economic ties, there is no treaty or convention that provides for the enforcement of judgments between the two countries.

A claimant attempting to enforce a judgment obtained in a US court will be required to issue a new claim in the English courts by relying upon principles of common law, whereby the judgement will be viewed as a basic contractual debt.

The court will consider a number of factors when deciding whether they are able to enforce a US judgment: 1. Jurisdiction It must be established that the US court was able to try the case. This will only be acceptable where the defendant is based in the US, or has agreed to participate in US-based proceedings.

2. Definite and ascertainable A US judgment can only be enforced under common law if it is for a definite sum of money. The courts will not enforce injunctions or judgments for taxes payable to the US state and penalties of any nature are rarely permissible.

3. Final judgement The US judgement must be final and conclusive, not provisional. English courts are unlikely to enforce a judgment that is subject to an appeal, as the decision may yet be overturned.

The enforcement of foreign judgments in the English courts are usually relatively straightforward but US judgments in particular may entail additional complexities of a technical legal nature. Those seeking to maximise the value of a hard-fought US judgment should always seek expert advice at the outset of any enforcement proceedings in the UK.

Smart Cities are Resilient SMART CITIES

People love cities. By 2050, the UN estimates roughly 66% of us will be living in urban areas. This means a proliferation of new infrastructure to house and transport the extra 2.5 billion people. Yet currently 60% of the world’s largest cities are within 100km of coastal areas, leaving them heavily exposed to climate risks such as flooding.

For a city to be smart, it needs to understand its current exposure to disaster risk and how to ensure its long-lived assets, such as infrastructure, are resilient and sustainable in the face of growing exposure and climate volatility.

The insurance sector has been using resilience models to quantify risk exposure for over 20 years, transforming the industry. These same tools and capabilities can be used by cities to understand what geographical areas are exposed and what the probabilistic financial losses will be. This brings a sophisticated understanding of risk and helps city officials make necessary decisions and answer pertinent questions. Do we develop in this area? Do we need to change building codes? Do we need to explore risk transfer options? Flexibility will be key to future resilience.

As The Internet of Things begins to proliferate and make cities smarter, this connectivity can feed massive amounts of data that risk analytics can decipher. Live information during natural disasters can be fed to insurers, helping them to deploy capital to their customers more quickly. City officials can make better informed decisions around using limited infrastructure, curbing business interruption losses. Most importantly, this data can be used to improve resilience models.

By Rowan Douglas CBE CEO, Capital, Science and Policy Practice

Access to affordable insurance has been instrumental in fostering economic growth. Yet despite a growing number of economic losses due to natural disasters, driven by economic and population growth, the percentage of these that are insured has been a declining portion. This leaves national and municipal governments exposed to growing economic losses. Smart cities that use data and risk analytics to create policy environments that foster resilience help ensure that businesses and citizens have access to affordable insurance and risk transfer solutions.

The insurance industry’s own journey from relative ruin to relative resilience was made possible by the use of resilience models. Sustainable growth depends on resilient infrastructure and access to risk transfer capital. Without understanding the underlying risk, however, making the right decisions will no doubt be challenging.

www.babinc.org

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Industry Insight

Future Cities – An Opportunity to Breakdown Industry Silos FUTURE CITIES

By Oli Waghorn

Director, Group Head of Defence and Security, Interel

In my client experience many companies – including major blue chip multi-nationals – can take a very insular view when it comes to the commercial opportunities beyond their native sectors.

Take for example defence and aerospace; an industry that offers truly spectacular technology innovations to Government customers, and yet can be remarkably reticent to push the boundaries of their own offer into broader areas of commercial opportunity, denying lucrative new market opportunities to the business.

For me there is no better global policy opportunity for companies to reinvent the offer they make to Government and business than the future cities concept.

It is the perfect coincidence of societal need, investor interest, political passion, and an imperative for innovation.

These imperatives cross international borders so they are natural export springboards. Critically they are also an opportunity where the rules of the road about who or what should lead has not been defined. There are no incumbents, no “usual suspects”.

So what would should be the points of focus for any would-be entrant?

1. Offer to innovate – so unique and original is the challenge that smart cities is trying to address, that “tried and tested solution” is simply not what policy makers wish to hear. It is an open goal for big data, smart systems, extreme automation and innovative service solutions. Amaze, inspire and excite.

2. Persuade by consent – perceptions of trust in brands is fickle, and the stakes only increase with proximity to the public. Brands fail with the public when they appear fickle, self-interested, and disconnected. Any successful company must appear inseparable from the customer community, and committed to its cause.

3. Leverage competence – notwithstanding the imperative to innovate, policy makers abhor failure, and will naturally trend to the lowest risk denominator. It’s up to companies to demonstrate competence in relevant areas – invest in R&D, forge strategic partnerships, and if need be make targeted acquisitions.

4. Personally engage – perhaps the most important aspect of any campaign – not just in relation to smart cities – is the need for personal engagement from the leaders of the business with policy makers and decision makers.

Take time, learn, be seen and lead the debate.

Building a Smart, Social and Sustainable London SUSTAINABILITY

London is in the midst of a population boom and with 8.6 million residents pressure is being placed on infrastructure and housing as the city faces significant challenges in managing sustainable growth.

Successful cities are measured not just by their profitable economies and impact on the environment but also by their social sustainability. The biggest challenge to creating a smart, sustainable and social London is the city’s housing shortage and affordability crisis as its population expands.

The recent Sustainable Cities Index 2015 scored London poorly for its lack of affordable housing although the capital is short of housing in general. Private renters are spending an estimated 40% of their income on housing and many people in their 20s regard it as an accepted fact that they may never own their own home - UK home ownership dropped to a 29-year-low in 2014 as ‘the priced-out generation’ grows. The property price to income ratio in London has now surpassed an eye-watering 8.5 to 1.

Authorities need to prioritise housebuilding… now, not in the future. London needs around 49,000 new homes annually until 2036 to keep pace with population growth. However, up to 62,000 more homes annually may be needed over the next decade to address the current backlog.

By Andy Armstrong Head of Real Estate, UK and EMEA, Commercial Banking, HSBC

To do so the capital’s decision makers need to better support responsible and sustainable urban development.

An outdated planning system is partly to blame, more brownfield sites need to be released for development, and developers in possession of large sites need to be enticed to build. The state also needs to take charge in developing some large sites so that not all new homes are under the control of the big housebuilders.

A thriving purpose-built private rental sector also needs Government support, rather than relying on independent landlords. An institutionally funded build-to-rent sector is the most effective way to significantly increase the volume and standard of private rented accommodation in London.

City Hall is strongly focused on technology as a way to support London’s growth. This is positive but to remain a true global powerhouse authorities need to urgently support bricks and mortar. Sustainable development will create a city in which residents can live and work, and provide business with the talent to drive innovation.

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www.babinc.org

Industry Insight

COMMUNICATIONS

By Caroline Edgar

Partner, Portland Communications

Why Strategy Matters? The Changing World of Communications and Corporate Affairs In the past decade, the interaction between business and consumers has transformed beyond recognition.

Social media has exploded. From Twitter to Periscope, bloggers to vloggers, businesses are faced with an increasingly powerful and opinionated consumer. Reputational threats and challenges stretch far beyond the realm of newspapers and broadcasters with countless conversations taking place at any one time across the web – and across the globe.

Consequently, the world we live in is getting noisier and faster which has challenged the way in which organisations communicate. Whether it be with politicians, investors, journalists or consumers, no longer is it possible to have a different conversation with each.

In such a fast moving environment it is understandable why many believe the role of corporate communications is harder than ever before. Businesses can feel trapped in a cycle of having to respond with different tactics to one crisis after another.

But actually, those that believe that, have lost sight of what really matters. Strategy.

The basics of communications have not changed. In fact, I believe it is more straightforward than ever before.

Knowing what you want to say about yourself, your business and your brand, and why, are critical. Clarity over what you are saying is becoming more essential the louder the noise.

Therefore, taking hold of what you can control – instead of focusing on what you cannot – will help any organisation to successfully defend and promote its reputation. And with far more employees sharing their experiences and opinions through different forums, this means businesses must be much better at engaging and understanding their workforce too.

That can only be realised if you understand what it is you are trying to achieve. Having a clear strategy that sets out how you plan to reach your goal provides the foundation to all successful communications.

Only then can an organisation truly identify the channels that matter most and the appropriate tactics that will have the biggest impact on their reputation.

The Future of the City of London FUTURE CITIES

By Mark Boleat

Policy Chairman, City of London Corporation

www.babinc.org

The City of London is a leading financial and business centre, generating £45 billion in economic output in 2014, as measured by Gross Value Added, equivalent to 14% of London’s output and 3% of the UK’s total economic output.

The City is where specialised financial and business services cluster together, providing employment for over 400,000 highly-productive workers.

Many of The City’s strengths are the result of its internationalism; throughout its history it has been an important centre for progression in financial services and trade. Today, the UK is at the heart of exciting innovations in financial services that promise to shape the future of the industry.

Of high interest is the UK’s booming Financial Technology or ‘FinTech’ sector – now employing over 61,000 people – with thousands of businesses offering innovative financial services in the digital realm. We are big supporters of the sector and see FinTech as an exciting opportunity for the UK economy, in that it brings together the UK’s strengths in financial services and burgeoning tech expertise.

Another exciting area where the UK is building capacity is green finance. A growing number of countries are recognising the need to align financial systems with sustainability imperatives to support their transition to a low carbon economy. We are pleased to be playing a key role in this process through a dedicated initiative – convening policymakers and practitioners – focused on driving the development of the UK’s green finance sector.

Such innovation, of course, increases demand for skills and talent. This poses practical challenges for policymakers.

First, there is the issue of how to address skills shortages and, second, how to provide the necessary housing and transport infrastructure to cater for a growing work force. These are challenges already facing London – and on which the City is actively engaged – and addressing them will be critical to supporting London’s future competitiveness.

Thriving business is also dependent on thriving communities. Cities and their businesses therefore have a responsibility to foster a fairer, more inclusive and sustainable society. Through various initiatives, we encourage and support businesses to recruit inclusively, procure responsibly, and enable their employees to volunteer their time and skills with local communities. We do this in order to inspire a more competitive and inclusive London.

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Culture

Interview with Greg Lindsay Co-author of ‘Aerotropolis: The Way We’ll Live Next’ AUTHOR SPOTLIGHT

Greg Lindsay is a senior fellow of the New Cities Foundation where he leads the Connected Mobility Initiative, a non-resident senior fellow of The Atlantic Council’s Strategic Foresight Initiative, and a visiting scholar at New York University’s Center for Transportation Policy & Management. He is also a contributing writer for Fast Company and co-author of Aerotropolis: The Way We’ll Live Next Explain the concept of a city that is an aerotroplis, which is an idea “coined” in your book Aerotroplis: The Way We’ll Live Next? What relevance does it have in cities today?

The thread running through my book and current work is that the shape of cities has always been defined by transportation.

Whether London’s docks, Chicago’s railyards, or Los Angeles’ freeways, each was shaped by the state-of-the-art in transportation at the time. So it stands to reason that in a global era, we should start to see cities form around the only mode capable of transporting us around the world – and if you look closely enough, we have. Heathrow, for example, has profoundly shaped the development of West London and the Thames Valley, while Gatwick supporters point to the existence of a “Gatwick Diamond” home to 45,000 businesses. And once we had traced the contours of these airport cities, someone would try to build one from scratch – the “aerotropolis” of the title. That’s happening too, in places like Dubai, Doha, the Delhi-Mumbai Industrial Corridor, and, of course, China. But I think the lesson for most cities is that they need to be locally close and globally connected – the former to create places with a human scale and quality of life that attracts talent, and the latter to allow that talent to apply themselves anywhere in the world. After all, America’s biggest exports are services.

The rise in prominence in cities has been truly unprecedented in recent years and there is an enormous amount of pressure on the social fabric of the city, including infrastructure and the environment. What do you think are the future solutions to dealing with rapid urbanisation and what approaches are cities taking?

The science fiction author Bruce Sterling once mordantly described the future as “old people, in big cities, afraid of 16

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the sky.” He was referring to the confluence of rapidly aging societies, mega-urbanisation, and climate change. No one has done an especially good job of tackling the challenges posed by any of the three, let alone the wicked problems emerging from all three – such as the Syrian refugee crisis and its political fallout, or climate-accelerated urban migration. In the best case scenario, we’d see the public and private sectors work in concert to re-invest heavily in infrastructure, using carbon taxes to pay for everything from new mass transit to solar micro-grids to technologies that haven’t been invented yet. Barring Bernie Sanders’ promised political revolution, that won’t happen, and we’re going to be faced with the same situation we have today – appeals to the private sector for innovative financing schemes and PPPs to pay for innovations we pray will be silver bullets.

The mega-cities of the Global South face an even starker challenge: building (and rebuilding) faster than natural disasters can destroy them. The Philippines, for example, was hit with the three most destructive typhoons in its history in just three years from 2012-2014. We’re going to need lighter, cheaper, faster, and more resilient infrastructure to stay ahead of these stresses.

What is your notion or vision of a ‘Smart City’ and what trends or concepts do you think will be a game changer in terms of improving the metropolitan environment of businesses and citizens?

I still have two major problems with the way the phrase is used today. The first is that it’s primarily focused on infrastructure, not people. The idea (which has since become the foundation of the “Internet of Things”) was that everything would be studded with sensors, and the data generated www.babinc.org

Culture

AUTHOR SPOTLIGHT

from those points would be used to make power grids and water mains 10% more efficient. That’s fine as it far as it goes, but it’s a prosaic vision at best, and the devil is in the details.

The second problem is that it’s based on the same totalising surveillance as Facebook, Google, Uber, etc. – give all of your data to a single entity in exchange for a service. A truly smart city would be one that helped people find and connect with each other in new ways without the necessary evil of an intermediary, which is what cities have always done. I’d like to see a smart city where instead of Uber, you have stronger public transit (reducing the need for cars altogether) and more local cooperatives. I’d also like to see the traditional office give way to more shared workspaces geared toward industries and purposes other than tech startups – where people, aided by real-world social networks, could discover new collaborators, clients, investors, etc. faster than ever. A truly smart city isn’t about infrastructure, but people; it’s not about allencompassing platforms, but small networks, loosely joined; and most of all, it’s not about efficiency, but discovery.

In your view, taking a struggling city like Detroit as an example, what can we learn from a city such as this? How can it regenerate itself?

Detroit is the flip side of the tidal wave of urban migrations sweeping the Global South – the spiritual capital of the Global Rust Belt that was once a city of two million before hollowing out and losing two-thirds of its population to its suburbs and beyond. Detroit is currently being hailed as a comeback story, but that comeback only benefits a handful of residents downtown (where Quicken Loans founder Dan Gilbert has purchased and refurbished dozens of properties) while residents in farther-flung, historically black neighbourhoods are facing mass eviction, mass demolition, and the failure of basic services. So what can we learn from Detroit? One lesson is that policies blind to the realities on the ground – whether having to do with mortgage foreclosures, blight remediation, budget cutbacks or more – can irreparably destroy neighbourhoods, communities, and people’s lives. The second is that there is a mismatch between www.babinc.org

the depopulated cities of the Rust Belt and the millions of migrants searching for homes. Enterprising mayors like Oliver Junk, of the small central German city of Goslar, have made migrants the centrepiece of their strategies for offsetting demographic decline. I’d like to see changes to immigration policies allowing cities more leeway to attract or even sponsor migrants in exchange for guaranteed residency or investment.

Why let oligarchs in Manhattan and central London have all the fun?

What is the Connected Mobility Initiative that you are currently leading on and what insights can you share with us so far?

The Connected Mobility Initiative is a project by the New Cities Foundation, with support from the Toyota Mobility Foundation, to explore how transit agencies and other public sector officials are grappling with the popularity of transportation network companies such as Uber and Lyft – not to mention the looming possibility of autonomous cars – and how they might use those same technologies to improve and extend their services. Because simply saying “no” to these developments clearly isn’t working. While I’m still sifting through my findings, a few trends are clear. In Washington D.C., which was quick to welcome Uber and Lyft as well as invest in bike-sharing, there are signs of how these services have changed real estate development patterns as residents increasingly forgo car ownership (and the need for parking). Meanwhile, Transport for London is pondering how it might bring such services under its aegis – rather than compete with them – and a Finnish startup is betting the way to do that is to create an app and a platform potentially combining every mode of transport – they call it “mobility-asa-service.” São Paulo is hoping improved data analytics might help relieve some of the pressure on its overcrowded trains and buses as it adds more lines, while Manila is just hoping to make some sense of the riotous mix of private transit services the majority of inhabitants rely on for commuting. The architect Cedric Price once said, “Technology is the answer; what is the question?” I’m just trying to ask those questions.

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Culture

Interview with Alex Chinneck British Artist and Sculptor ART

What’s your favourite part of London? Where do you draw inspiration from within the city for your artwork?

My sculptures are principally concerned with the materials and processes of construction and you best experience these qualities in old industrial environments. I particularity like dilapidated structures that tell the story of London’s industrial past, which has now left the city or vanished entirely. My favourite building is Millennium Mills in Silvertown, an old baking factory that is phenomenal in scale, charm, character and history. My favourite area is East London, which has an incredible cultural energy, and having lived and worked here for 14 years it’s an area where I call home.

What has been your most challenging project to date and why?

My artworks are considerable undertakings that present structural, logistical, managerial and financial challenges.

Every project walks a complex path to reach a simple visual moment. Structurally, the most challenging project to date was the inverted electricity pylon ‘A bullet from a shooting star’. The foundations travelled 25 metres below ground, we used 120 tonnes of concealed concrete to counterbalance the 15 tonne structure and we had to deal with enabling issues such as unexploded bomb surveys and soil contamination tests.

‘A bullet from a shooting star lit up at night’ 18

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Logistically, the hovering building in Covent Garden ‘Take my lightning but don’t steal my thunder’ was the most challenging. Installing a sculpture of that size in such a busy location really tested my studio’s experience. However, there’s no progress without risk and that project was full of them.

Your installations play with perception and surrealism very cleverly. What is the significance of their locations within public spaces?

I try to make the everyday world extraordinary, introducing fantasy to familiarity. I use illusions to lead my work into a magical territory that hopes to deliver engaging and uplifting experiences - qualities that work well in public art. My work is contextually responsive so I tune each idea to the appearance, scale, use and history of the surrounding area. It is important, particularly in the public realm, that the work elevates but never dominates its environment. My main commissioners are land owners, developers and corporations who in addition to their cultural motivations seek increased footfall and media reach. In these instances the location is already defined and we develop a unique and relevant response to it.

What do you think businesses and government can do to help support the art world more?

There are far more artists than there are opportunities so success and personal sacrifice go hand in hand. It’s an industry that demands extraordinarily hard work and if you’re not proactive you won’t make progress.

Having said that, support platforms do help ambitions to be realised and careers to evolve. Government, and the public, must remain conscious of the economic contribution that culture can make to a country. The Arts Council remains an incredible platform that enables broad and important cultural activity and this must be allowed to continue.

I think government should introduce a programme that facilitates sponsorship between corporations and cultural practitioners. From a commercial perspective art has the capacity to grow brand awareness and perception so I don’t see this as philanthropy but instead the potential for mutual benefit. Some of our projects have attracted over 1 million visitors, enjoyed extensive global reach and generated www.babinc.org

Culture

ART

‘Take my lightning but don’t steal my thunder’

millions of pounds of medial value. This isn’t really my personal motivation for making my work but I think it does offer commercial justification and benefit to commissioners.

The presence of artists generates regional value so I do feel council’s could be more proactive in creating studio spaces for artists to work. There are so many unoccupied commercial properties across the UK and thousands of young artists that would benefit from an affordable space to experiment and create within. Hackney, Peckham, Margate and Hastings are current examples that economically demonstrate the success of this strategy.

Can you give us a sneak peek into what you’re working on at the moment or what’s in the pipeline?

We’re working on approximately 10 projects at present, all at different stages ranging from idea to development to fabrication. It takes months for us to conceive, design, manufacture and install our work. I’ve just returned from a 6-week research and lecture trip to India where I visited many different manufacturers, industries and artisans.

Currently, my studio is working on 5 projects for London and 2 huge projects for other regions in the UK. I can’t say what or where they are, partly because of contracts and partly because I like the surprise of launching projects. We are also working on a very particular and unique piece of architecture, which is a territory I’m excited to move into.

I’m busy but always want to be busier. I live by the philosophy that ‘only the paranoid survive’ and my natural anxiety, which is considerable, is a productive problem to have.

What impact do you think that’s having on the art community?

Public art has a responsibility to the public and I try to make accessible artworks than communicate with most people.

This certainly doesn’t make them easy or without thorough consideration, they just aren’t intellectually elitist. I increasingly believe that public art has the ability and responsibility to transcend decoration and it’s not just what looks best but www.babinc.org

also what might contribute most. My studio is beginning to explore community engagement strategies and how best to involve the people that will see the artwork everyday. Aside from artworks having the ability to generate local trade through footfall, I see them as platforms for local employment through manufacture, installation and operation. Public art needs to introduce this additional string to its bow by involving and including the public beyond them solely as audience members.

I think one problem is that some groups immediately associate accessibility with simplicity and lacking in intellectual depth. It is possible to have both and I continue to work towards this balance.

You’ve commented in previous interviews that there has been a shift in the way art is seen, visited and enjoyed.

Why do you think that is and how would you encourage people to enjoy your own artwork?

The internet has slightly shifted the way that much art is discovered, seen and shared and as a result I think more art is being made outside the gallery walls. I love art galleries and wish more of them wanted to work with me but I also think that the gallery environment isn’t necessarily the best catalyst for eclecticism and change within an artist’s practise.

I say that because almost every gallery, irrespective of the city or country that you’re in, adopts the logical format of a room and 4 white walls. In my opinion the personal advantage of making outdoor artworks is that every new location forces a new creative response, be it visual, material or process orientated.

I create art to be visited, send and enjoyed and the more people that do that the better. Sculpture is the re-imagination and reinvigoration of the material world around us so it makes sense to me to reintroduce my work into an everyday context – it’s more believable.

Photographs: OSRAM and Seam Lighting ‘A bullet from a shooting star lit up at night’ and front cover image Jeff Moore ‘Take my lightning but don’t steal my thunder’

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Policy

Affordable Homes – A Business Issue that Requires Action HOUSING

Emanuel Adam

Head of Policy and Trade eadam@babinc.org Follow Policy on Twitter @BABPolicy

On May 5th Londoners will elect a new Mayor. One of the biggest topics that the future Mayor will be asked to address is the capital’s housing crisis created by the lack of affordable homes.

At present, Greater London counts over 8.6 million people who live in roughly 3.5 million households1. Since 2008, the city’s population has steadily increased, up to 100,000 per year, more than any other part of the UK2.

The reason for this increase is simple: London is an economic powerhouse. It accounts for around 22% of UK GDP and around 19% of employment3. Most of the private-sector jobs are being created in the capital.

The housing crisis is on one hand a social issue: Unaffordable housing squeezes low and middle-income families, driving them eventually out of the inner cities and increasing the level of inequality.

On the other hand, the lack of housing is a business issue, particularly when it comes to attracting talent. Young people in particular who enter the job market find it more difficult to live in the city. A YouGov survey from 2014 revealed that 70% of employees aged between 25 and 39 would consider living and working elsewhere due to the rocketing cost of buying or renting housing in London4. On average the cost of a London home has risen 44% over the past 7 years5.

The London Housing Commission, put in place to produce a clear programme of action for London’s housing market, has called for 50,000 homes to be built to keep up with the population growth6, which is predicted to reach 10 million people and 4 million households in 20317.

While this number creates a challenge on its own, much more needs to be done by political leaders to ensure that housing doesn’t get in the way of the city’s competitiveness. London is not alone with this challenge. New York City’s City Council, for example, just recently introduced modifications to the 20

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Mandatory Inclusionary Housing text amendment which will make affordable housing mandatory and permanent wherever new housing capacity is approved through land use actions. It is the strongest and most flexible policy of its kind in the country 8.

Given the urgency of the issue in London, some companies like BritishAmerican Business member Deloitte have started to act on their own by securing rented homes for graduates and are now considering building their own housing for junior staff.

Not only is this creative, but it shows that now is the time for businesses to act.

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https://www.london.gov.uk/sites/default/files/housing_in_london_2015.pdf http://www.theguardian.com/cities/2015/jan/09/london-booming-population-growth-successchallenges http://www.theguardian.com/uk-news/2015/jun/29/goodbye-london-moving-to-brighton-houseprices http://londonfirst.co.uk/wp-content/uploads/2014/09/Moving-Out-Final.pdf http://www.ft.com/cms/s/2/8ef50668-63b3-11e5-9846-de406ccb37f2.html#axzz44HKYncPx http://www.ippr.org/major-programmes/london-housing-commission https://www.london.gov.uk/what-we-do/planning/london-plan/current-london-plan/chapter-onecontext-and-strategy/growing http://www1.nyc.gov/site/housing/index.page

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Event Highlights

BritishAmerican Business Annual Christmas Luncheon 2015 LONDON

On December 10th 2015, BritishAmerican Business held its traditional Annual Christmas Luncheon at London’s Dorchester Hotel. The event attracted over 400 senior level business executive from 200 businesses.

Above: BritishAmerican Business members enjoy a welcoming drinks reception in The Dorchester and enjoy live entertainment during their 3-course Christmas lunch.

Above: Guests are encouraged to get into the Christmas spirit with festive hampers from Harrods and cracker pulling.

Sponsored by

www.babinc.org

Above: Raffle prize winners collect their prizes from the main stage.

Prize donors include:

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Event Highlights

LONDON

Business Immigration Conference Sponsored by Magrath LLP On March 8th 2016, BritishAmerican Business members were invited to One Great George Street, Westminster for Magrath’s annual business conference focusing on Immigration. Topics discussed include ‘The new approach to Tier 2 sponsorship’ and ‘The Impact of the EU Referendum on Immigration policy’.

Perspective Series: Making sense of the US elections – What is The Impact on Business in the UK? Hosted by Instinctif Partners On February 25th 2016, a panel of speakers including Professor Peter Trubowitz of The London School of Economics, Joseph Sternberg, Editor of The Wall Street Journal and Warwick Smith, Managing Partner of Instinctif Partners discussed how the unfolding US elections and eventual outcomes would impact business in the UK.

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Thanksgiving Reception Hosted at The BT Tower On November 19th 2015, BritishAmerican Business members were invited to attend our annual Thanksgiving Reception held at the iconic BT Tower. Guests were welcomed with a networking drinks reception with canapes and a business card draw with the chance to win a Harrods Christmas hamper.

TTIP ‘Four Sectors, Many Stories, One Ambition’ Launch Hosted by The Institute of Chartered Accountants On March 2nd 2016, BritishAmerican Business launched its latest TTIP (Transatlantic Trade and Investment Partnership) publication ‘Four Sectors, Many Stories, One Ambition’. The publication presents the case for TTIP through whole sector stories from smaller companies, who stand to benefit the most, to large multinationals, all who contribute to growth and employment across the UK.

www.babinc.org

Event Highlights

NEW YORK

CEO Presentation with Steve Holliday Sponsored by National Grid and hosted by Morgan Lewis Leadership Forum Inaugural Session Sponsored by Lloyds Bank and hosted by Deloitte A select group of delegates, all seasoned executives with substantial strategic, management, and financial responsibilities within their respective organisations, gathered at the launch of our Leadership Forum. Dan Glaser, President & Chief Executive Officer of Marsh & McLennan Companies presented.

Among topics such as the future of energy, and the current state of the energy industry, attendees learned about sustainability and renewable resources. BritishAmerican Business would like to extend our best wishes to Steve Holliday who officially announced his departure from National Grid, effective Summer 2016.

Ambassadorial Briefing with Matthew Rycroft Sponsored and hosted, by KPMG Newly-appointed, UK Ambassador to the United Nations, Matthew Rycroft, addressed the current issues facing the global, political landscape with a full audience of Senior Executives and Government professionals.

www.babinc.org

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BABC ANNUAL TRANSATLANTIC BUSINESS CONFERENCE

FUTURE CITIES SMART

SUSTAINABLE

SOCIAL

Thursday 12th May 2016 Register online at www.babinc.org and get 25% at checkout using code ‘NetworkFC’ Newly added speakers:

Maher Maso Mayor of Frisco, Texas

Joe Anderson Mayor of Liverpool

Rhett Workman Managing Director, Government and Airport Affairs, American Airlines

Vivian Hunt Managing Director, Mckinsey & Company

Greg Hodkinson Chairman, Arup

Other speakers:

Tony Cole Vice President & Government Chief Technical Officer, Fire Eye

• Justin Webb, Radio 4’s Today Programme – Just confimed • Michael Langley, CEO, Greater Minneapolis St Paul Partnership • Mark Boleat, Policy Chairman, City of London Corporation • Jerome Frost OBE, Global Cities Leader, Arup • Andrew Collinge, Smart Cities Lead, Greater London Authority • Richard Parris, CEO, Intercede

• Luke Beeson, Vice President, Security UK and Global Banking & Financial Markets, BT • Rowan Douglas CBE, Capital, Science & Policy Practice & Chairman, Research Network, Willis Towers Watson

Supported by:

WWW.BABC2016LONDON.COM

Events Calendar

LONDON

April 2016

May 2016 What does FinTech mean for the Future of Cash?

Tuesday 26th April 2016 8.30am – 9.30am Hosted by BritishAmerican Business

Privacy Shield: What will be the Impact on Business?

Wednesday 4th May 2016 Hosted by McGuireWoods LLP

April Networking Reception Wednesday 27th April 2016 5.30pm – 7.30pm Hosted by Smith & Wollensky

BritishAmerican Business Group of Lawyers Conference Wednesday 11th May 2016 12.00pm – 5.00pm Hosted by News UK

Spring Reception Wednesday 1st June 2016 6.00pm – 7.30pm Hosted by the US Embassy

Chairman’s Lunch Thursday April 28th 2016 12.30am - 2.30pm Hosted by Deloitte

Future Cities Thursday 12th May 2016 9.00am – 5.00pm Hosted by News UK

Annual Citizenship Awards Dinner Wednesday 8th June 2016 7.00pm – 11.00pm Hosted at Merchant Taylor’s Hall

Spring Pub Quiz Thursday April 20th 2016 6.00pm – 8.30pm

Executive Assistants Reception Tuesday April 26th 2016 6.00pm – 7.30pm Hosted by The Pierre Hotel

Young Professionals Wine Tasting Thursday May 5th 6.00pm – 8.00pm

CEO Roundtable with Mark Thompson, CEO, The New York Times Friday April 21st 2016 8.00am – 9.30am Sponsored by KPMG

SME Forum Thursday April 28th 2016 8.00am – 9.30am Sponsored by HSBC

CEO Roundtable with Gerry Baker, Editor-inChief, The Wall Street Journal Tuesday May 17th 2016 8.00am – 9.30am

Responsible Growth: The Business and Economic Incentive for the Rule of Law Tuesday May 3rd 2016 8.00am – 9.30am Sponsored by LexisNexis Hosted by Debevoise & Plimpton

EACC Spring Social Thursday May 19th 2016 6.00pm – 9.00pm

CHASE Awards Thursday 12th May 2016 7.00pm – 11.00pm Hosted at One Great George Street

June 2016

NEW YORK

April 2016

Business Briefing, Changing Climate, Changing Business Monday April 25th 2016 6.00pm – 8.00pm Sponsored by EY Hosted by Thomson Reuters

May 2016

View both London and New York’s full events calendar at www.babinc.org/our-events/ www.babinc.org

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Complimentary joint National Trust membership worth £105 when you subscribe.

It’s just a few steps.

Plus

£20

National Trust gift card

0800 092 2709

26 NETWORK Quote ‘National Trust’ Sign up at timespacks.com/nteng

Carrick-a-Rede, County Antrim, www.babinc.org Northern Ireland