Info mag focus on energy nov dec pdf by French Chamber of Commerce in Great Britain

I N F O the magazine for anglo-french business french chamber of commerce in great britain

in this issue

l’occitane - from market stall to global brand

november / december 2013 www.ccfgb.co.uk

interview with ed davey mp, secretary of state for energy and climate change

alex salmond answers questions on scotland’s future

the chamber’s trade delegation to scotland

what’s behind the signs of recovery in the uk economy?

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Arnaud Bamberger

editorial

President, French Chamber of Commerce in Great Britain, and Executive Chairman of Cartier

his semester has unfolded with pace and energy for the Chamber, giving us many highlights to look back on already, and much to look forward to. First of all, I am very pleased to welcome five new members to the Chamber’s Board of Directors: Estelle Brachlianoff, Executive Vice-President of Veolia UK and Northern Europe; Olivier Nicolaÿ, Managing Director of Chanel UK, Canada and Latin America; Nicolas Petrovic, Chief Executive Officer of Eurostar International Ltd; Sir Martin Sorrell, CEO of WPP Group Plc; and Robin Southwell, CEO of EADS UK. I am convinced they will make a valuable contribution to guiding the Chamber’s policies and decision making, and I look forward to working with them. Alongside HE Mr Bernard Emié, French Ambassador to the UK, I was honoured to lead a very successful French Trade Delegation to Scotland in early October, during which we met with First Minister Alex Salmond and other officials of the Scottish government for the purpose of strengthening economic and educational ties between France and Scotland. Joining us were senior representatives of 15 Chamber member companies that already have a presence in Scotland or are looking to do business there. We received the warmest of welcomes in Edinburgh, Dundee and Aberdeen, where we made many valuable, and hopefully fruitful, connections with key people, in government, local authorities and business sectors. INFO had the opportunity to put some questions to Alex Salmond about next year’s independence referendum, its potential impact on business and the economy as well as Franco-Scottish relations, and you can read his responses on pages 6-7. This issue of INFO has a very timely focus on Energy & Sustainability, and has been published to coincide with the first Franco-British Energy Conference to be organised by the Chamber in partnership with the French Embassy. Energy and sustainability are present and pressing issues in this country, and the Energy sector is suffused with Franco-British interests and investment. The importance the UK government places upon these issues is reflected in our interview with Ed Davey, Secretary of State for Energy and Climate Change, on pages 30-31, and the fact that he is a guest speaker at the Energy Conference. This is followed by articles from a number of our member companies in the energy sector, as well as UKTI and think-tanks that consider the UK’s energy landscape, the key challenges and how they can be met. It is a complex picture, but one that is full of opportunities for innovation and enterprise. We are now entering the final two months of 2013, which will be replete with opportunities to connect and engage with fellow Chamber members. In November alone we have the 17th edition of our Annual Financial Lunch, addressed by Christian Noyer, Governor of the Banque de France; another CEO Breakfast, at which Philippe Mellier, CEO of De Beers Group will speak; and the Franco-British Business Awards, which this year take place in Paris. December brings a new event for the Chamber that draws inspiration from entrepreneurs’ stories, ‘From Scratch to Success: Business Stories’, and our annual Soirée de Noël, but with a difference, as this year it provides the occasion for the presentation of the Intercultural Trophy sponsored by AXA. We hope to see you at one, if not all, of these events. I info - november / december -

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Contents

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issue 209 / November - December 2013

Interview with Alex Salmond MSP

Success Story: L’Occitane, Olivier Baussan

Trade Delegation to Scotland

Ed Davey MP: UK energy priorities and their delivery

Constitutional milestone: the creation of a UK Supreme Court

6 Interview with Alex Salmond MSP

SMEs & Startups

Bilateral

23 SME briefs 25 Profile: Beatrice and Arnaud de Montille,

9 What’s behind the signs of recovery in

Merci Maman

Britain’s economy?

5 minutes with...

Success Story

News in the City

Focus 28 Energy & sustainability 30 Ed Davey MP: UK energy priorities and their delivery

16 Thales welcomes naming of third Astute-

32 Investment and financing for energy projects 33 Out in the cold? 35 Skills in energy: the challenges of building a

37 The social and economic consequences of

News class submarine Alstom unveils the UK’s first Citadis tram in Nottingham

sustainable workforce energy delivery

17 Airbus Military celebrates first A400M

38 Business approaches to managing corporate

39 Using the forces of nature to support UK

delivery to French Air Force Eurostar to enter joint bid for UK East Coast rail franchise

energy use

electricity supply

18 Altran buys UK telecommunication specialist 40 Nuclear power: the next generation 42 A guide to UK gas trading 19 HRH The Princess Royal opens Chivas Brothers’ new bottling hall 43 Warmth from waste: the heat is on EY acquires Greenwich Consulting 44 The UK’s renewable energy landscape 20 More awards for Le Manoir Aux Quat’saisons 46 Sailing into deeper waters: overcoming the obstacles for offshore wind 21 Schools 48 Tidal energy: rising tides for marine power Managing Director: Florence Gomez Editor-in-Chief: Keri Fuller Communications Co-ordinator: Marielle Fraize Graphic Designer: Prima Hevawitharane Advertising & Sales: Suzanne Lycett Publications Assistant: Paul-Gilbert Colletaz Subscription: INFO is published every 2 months Printed by: Headley Brothers Ltd

when Prince George is 30?

Regions & Cities 52 Artois: a place for ‘sustainable’ investment!

26 L’Occitane: Olivier Baussan

10 Founder CEO, Quintessentially Lifestyle

13 Party politics: who means business? 14 City profile: Ludovic de Montille

50 Carbon capture and storage 51 What will the UK energy system look like

Contributors: Bruce Ball, Aneesh Banerjee, Estelle Brachlianoff, Valentin Bouillard, Amandine Boudier, Stephen Burgin, Rachel Cary, Philippe Chalon, Eric Charriaux, Olivier Didry, Zsolt Gemesi, Patrick Gougeon, Edouard de Guitaut, Caroline Lamaud, Katherine Lampen, Thibault Lavergne, Richard Mayson, Julie Quiedeville, Steve Riley, Rob Stevenson, Mark Thompson, Katie Wake, Stuart Yellowlees Cover: © CCFGB / Prima Hevawitharane

Culture

61 Cheese and wine press 63 Book reviews

News @ the Chamber 65 66 New members 68 Hello / goodbye 69 Chamber shorties 70 Here is the weather forecast... 71 Moving with the times 72 EADS UK: No. 1 and proudly European 73 Say Cheese... and wine 73 International wine tasting 74 Trade delegation to Scotland 77 The creation of a UK Supreme Court 78 Funding innovation 79 Research and innovation 80 Cross cultural challenges and opportunities 81 Forthcoming Forums & Clubs

Forthcoming events Distribution: French Chamber members, FrancoBritish decision makers, Business Class lounges of Eurostar, Eurotunnel and Air France in London, Paris and Manchester Editorial and Publishing Office: French Chamber of Commerce in Great Britain Lincoln House, 300 High Holborn London WC1V 7JH Tel: (020) 7092 6600; Fax: (020) 7092 6601 www.ccfgb.co.uk

info - november / december -

Interview with Alex Salmond

Scotland’s First Minister Alex Salmond welcomed the French Trade Delegation to Scotland, organised by the French Chamber in partnership with the French Embassy, in October, and spoke to INFO about the impending independence referendum, its economic and business implications, and the enduring value of the ‘auld alliance’ between Scotland and France

In less than a year, Scotland will vote on whether it should be an independent country. With Europe increasingly integrating, why do you think independence is important for Scotland?

Independence as part of the European Union (EU) is exactly in keeping with recent trends across the Continent. Many of the nations which have joined the EU since 2004 only gained – or regained – their independence in recent years, and many of them are the same size or smaller than Scotland. The most compelling argument for independence is very simple – that it is better for everyone in this country if decisions about Scotland’s future are taken by those who care most about Scotland. That’s the people who choose to live and work here. Time and again, the Scottish Parliament has proved itself more than capable of deciding policy in a whole range of areas, from education and training, to law and order and healthcare. Nobody now seriously doubts that any of the decisions taken here in Scotland in these areas have been done with anything other than the best interests of Scotland at heart. We’ve introduced really progressive, beneficial policies such as free personal care for the elderly, the - info - november / december

smoking ban in indoor public spaces and our legislation that will put a minimum price on alcohol as we try and tackle some of Scotland’s shameful health problems. We’ve also reintroduced free university and college tuition, reviving the proud Scottish commitment to free education. All of these measures – and many more – are living proof that decisions made in the Parliament here in Edinburgh are made with the best interests of the people of Scotland at heart. And I would argue that is the most compelling reason to complete the powers of the Scottish Parliament and allow all of the major decisions that affect the people of Scotland to be made here. Latest polls seem to indicate that a no vote is more likely (IPSOS Mori 18 September: 59% no versus 31% yes). If Scotland does vote to stay in the union, will the Scottish National Party lose its impetus and raison d’etre?

Many of the recent polls show that there are more undecided voters than ever, which shows that there is all to play for. What some polls also tend to show is that the more informed people are, the more likely they are to vote Yes, which is why we are confident of securing a positive vote next year once people have had the

opportunity to hear all the arguments on both sides. Who wins the referendum could well turn on who wins the economic argument. Many seem to think it would be bad for Scotland’s economy. What is the economic case for independence?

Well, I believe a successful economy is a key element in building a strong, independent country with good employment prospects, sound public finances and a high quality of life for its citizens, so the economic case will be central to the debate. No-one – not even our fiercest opponents – now seriously claims that Scotland could not afford to be a successful, prosperous independent country. If you look at the official statistics, Scotland is in a fiscally stronger position than the rest of the UK, generating more in tax per head every year for the last three decades. Indeed, Scotland is one of the wealthiest nations per head in the developed world. The problem is that, despite that wealth, we need to create a fairer society – certainly a fairer one than the UK, which is one of the most unequal societies in the developed world. As a country, we have significant advantages in areas such as renewable energy, life sciences, high-quality food and drink, and an oil and gas industry that still has plenty of life left in it. All of these are allied to our fantastic natural resources, a world class university sector, and an inventive and resourceful people. But at the moment, Scotland is being held back, our long-term economic growth rate lags behind the rest of the UK and trails the economic performance of developed countries of a similar size. Independence would mean that decisions and policies would be tailored to the specific needs and circumstances of the Scottish economy and the Scottish Parliament would have access to a whole new range of economic policy levers we could use to stabilise our economy, boost growth and address inequality. How would Scottish independence impact businesses and what advantages would it bring?

As well as the fiscal levers we have already discussed, independence would give us the opportunity to support Scotland’s business environment, for example by the careful use of powers such as air passenger duty and corporation tax. But independence would also give us full access to other important aspects of economic policy such as business and competition regulation, capital investment and borrowing as well as the overall design of the Scottish tax and welfare system. So, for example, independence would ensure that decisions on business regulation affecting firms across Scotland would be focused on their needs and not – as it is at present – on the needs of London and its surrounding

area. Our business regulation could be much more flexible and responsive to Scottish industry, supporting expansion in foreign markets as well as creating an even more favourable environment for inward investment. In addition, we believe an independent Scotland could deliver much more effective and efficient regulatory environment which would provide a better service to consumers and businesses by combining the functions of a number of economic and competition regulators into one or two organisations. Our proposal is that we bring together the energy, communications, transport, and water sectors under a unified regulator with a brief to ensure that the regulatory framework is easily navigable, tailored to the country’s size and circumstances, and focused on delivering benefits for the Scottish economy, businesses and consumers. This has clear benefits such as a reduction in the burden on business; greater consistency in decision making and the creation of a powerful and easily understandable voice for consumers. Scotland and France have long been on friendly terms, going back to the Auld Alliance of 1295 and even before. What does French business bring to Scotland and how would you like to see it develop?

The Auld Alliance is one of the most enduring friendships in the international community and I was absolutely delighted to welcome His Excellency Bernard Emié and M. Arnaud Bamberger to Edinburgh earlier this month to talk about how we can develop our friendship even further. That trade delegation actually gave us some great examples of French business already making a real impact in Scotland. Companies such as Total, Thales, Areva and Michelin are huge employers in Scotland and the Scottish Government and our agencies enjoy great relationships with them. They are benefiting from our fantastic workforce and experience as well as a business environment that we are focused on making the most welcoming on these islands. That support will continue and, I believe, flourish in the years to come. And of course, the relationship with France works the other way. According to the last Global Connections Survey, France is Scotland’s third largest export market, with important business done in sectors such as business services, chemical products and food and drink. In fact, France was the biggest buyer of Scottish food produce in 2011, accounting for a quarter of our total overseas food exports. The French are food lovers, and we enjoy exporting to them, so long may the Auld Alliance continue! I Read the report on the French Trade Delegation to Scotland on page 76-77 info - november / december -

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What’s behind the signs of recovery in Britain’s economy? Labour market flexibility and competitive taxation levels may go some way towards explaining why the UK is seeing green shoots ahead of France, writes Philippe Chalon, Managing Director of Le Cercle d’outre Manche, the London-based French think tank. Philippe also chairs the Chamber’s Quarterly Economic Updates

ritain has become used to being extremely cautious about the performance of its economy, and with good reason. But there have been a few positive signs recently. The Organisation for Economic Co-operation and Development (OECD) is now forecasting 1.5% GDP growth for this year, almost doubling the 0.8% forecast of last May. The British economy, which shrank by 7% in the recession, has been clawing its way back since. In September, UK manufacturing grew for the sixth consecutive month and recorded its strongest quarterly performance for two and a half years. It is worth noting that the £1 billion initiative supported by both the government and the automotive industry is about to create at least 30,000 jobs in Britain. Continued strength in the manufacturing sector will add to the belief that the UK’s economy is becoming more broad-based. But the bright spot in the recent economic data is employment. The unemployment rate in the UK dropped from 7.8% to 7.7% between May and July. It remains more than 30% lower than what it is in France (10.9%). Had economists been asked five years ago to predict the level of unemployment in the event that the British economy would crash and then recover at a snail’s pace, they would have predicted an unemployment rate of 11 or 12%, based upon what happened in the previous recessions in the 1980s. But it did not go that way. Part of the credit goes to labour market flexibility which is one of the cornerstones of the relatively good performance of the UK’s employment rate compared to other European countries. Labour market flexibility refers to the speed at which a company can adapt to economic changes, but it is much more than a hire and fire process. It also provides the opportunity to save jobs with less-hour contracts when needed rather than cuts. It is common sense that the competitiveness and attractiveness of a country depends substantially on its labour market flexibility and on its taxation levels.

There’s nothing new under the sun when it comes to benchmarking labour laws in Europe: they are, in most people’s opinion, rather rigid in France, compared to the UK or Germany. In terms of business taxation, the UK appears quite competitive with a 23% corporate tax, which is lower than that of Germany and France. Another striking difference between the UK and France is in private sector growth, with 1.2 million new jobs created in the UK since 2010, versus 177,000 in France. In that regard, French and British economies are quite asymmetrical. It is too soon to say whether Britain is out of the woods. But here’s a tip: being competitive is not about social dumping, cutting all taxes or selling off a social model so as to be the cheapest nation in Europe. It is, however, about not coming last in international rankings in terms of competitiveness such as labour laws and corporate or income taxes. Admittedly, a nation cannot come first on every level. Lagging behind direct competitors is, on the other hand, somewhat disturbing. An estimated 300,000+ French people live and work in London, most of them not in the City but in all kinds of business sectors and industries. And they keep coming. Some of them are highly educated, but many of them are not. Some of them are wealthy, but most of them are not. So, why do they cross the channel? For the warm beer, not! France and the UK: a tale of two different labour markets. I

Since 2010, the British private sector has created 1.2 million new jobs; it’s almost seven times less in in France with 177,000 new jobs.

info - november / december -

5 m i n u te s w ith ... London is probably the toughest city in the world so once you’ve cracked it, you’ve got a little bit further than anyone else.

Aaron Simpson

Founder CEO, Quintessentially Lifestyle How did Quintessentially take form in 2000? Did you and your co-founders start with the idea, the clients or the contacts?

By minor miracle! I was a film producer and my partners were a club & restaurant owner and a lawyer. The three of us got together and thought what a good idea it would be to create an access-all-areas type service for people coming into London. Being in the film business, I was looking after people coming in and out of town all the time, so I knew that there would be a demand for it. We did Breakfast at Tiffany’s as a launch and off we went. London is probably the toughest city in the world so once you’ve cracked it, you’ve got a little bit further than anyone else. It’s tough because there’s enormous demand, especially from an international set who are largely unknown to club bouncers and restaurant owners, for example, and the best places in London are notoriously difficult to get into. It is about whom you know I suppose. And is that your secret – knowing the right people?

In each city we identify about 200 individuals that you have to know and we get to know them. We look after them as well. For example, club owners tend to own multiple clubs – the best ones – and give us access, and we look after them when they want to go to Dubai, or wherever, so that’s how it works. In only 13 years Quintessentially has grown exponentially into a group of 32 luxury lifestyle businesses. How and why has it evolved this way?

We didn’t think beyond London until we realised our clients wanted international coverage, so we had to fulfil the demand and did New York, Dubai and Hong Kong, all within a couple of years. We’re in 78 countries now, which I didn’t envisage either. The brand extension led to different verticals – it becomes a demand-led thing. We’re doing 6,000 bouquets of flowers a month so why wouldn’t we own our own florist? We also have a gift company that specialises in hard-to-get items such as bags, watches 10 - info - november / december

and accessories, which we source on demand. We have a wine business, trading fine wines, cellar building and management, mainly for UK, US and Hong Kong clients, but India and China are utilising it more and more. Outside of retail, we’ve gone into education – placing children in the right schools, tutoring services; we have people recruiting domestic staff, executive chefs, that sort of thing; a wedding business – we’ve got a wedding coming up in Moscow next month; a television business doing corporate TV work for all our clients; our own PR agency which manages our messaging but also all our corporate clients from Johnnie Walker to Samsung; an art advisory service, travel, insurance... It’s a long list, sort of all-encompassing in terms of end-to-end lifestyle. We tend to grow organically, so if we find someone internally who is strong in a particular area, we encourage them to open their own business and carry on from there. But we do still have good supplier relationships around the world as we’re not the best in all territories. From a small room in Soho, Quintessentially now has over 65 offices around the world. Are you everywhere you want to be?

We’ve just opened in Mongolia! It has a lot of inbound tourism and quite a large wealth base growing there. We’re very interested in Ethiopia, and far frontiers like Kazakhstan and Uzbekistan, where there’s a lot of oil money. And we are actually still missing some obvious places like Monaco. Do you see yourselves as a British brand, and is this a selling point?

Yes, we do and I’m pretty sure it is a selling point. The word ‘quintessential’ is a particularly British word, but it translates well and goes round the world well. It’s that sense of service, delivery, integrity and the strength of the brand and this is what works for us, whilst being cool, savvy and intelligent.

5 m i n u t e s w i t h A a r on Si m p s on

How many staff does it take to run your wish-fulfilment empire and what kind of people are they?

Our staff are pretty cool – they’re quite young too. I think good people attract good people. Our people work to their own demands and hopefully demand a lot from themselves. They are also quite entrepreneurial, quality service oriented, able to juggle the coalface work, and problems solvers who can think out of that proverbial box. We’ve got 3,500 people working for us now, 270 of whom are in the UK. Are your members predominantly from any particular nationality or demographic?

We split the world into three areas and track that – Europe and the Middle East, Asia including India and the Americas. Obviously we have a little bit of a leaning towards the UK because it started here, but a lot of people join in London but then take it back to their own countries, spread the word and that’s how we acquire new clients. So is word of mouth how Quintessentially is marketed?

It is the strongest way. People tend to read about it or research on the website, and then they might have a friend who’s a member who recommends it and it goes from there. Whatever we try to do to increase the avalanche of applications it tends to be that method that is the most effective. You do limit membership, so what is your optimal number?

In bigger cities it’s around 3-4,000 individuals, in smaller cities it could be a tenth of that. Relatively small numbers, but servicing individuals is obviously a very tight ratio with the number of clients we have at different levels of service. The general level is access-only; the dedicated level gives you an individual account manager; and the elite level gives you account managers across multiple cities in addition to the primary one in your core city. What sets Quintessentially Lifestyle apart from other concierge service companies and why have you succeeded where others have failed?

We’re good at it. We’re not a financial services company with a bolt-on concierge solution. We are a concierge company, a lifestyle company that delivers services first and foremost, and that’s at our core. There are other companies based on that premise but they tend to be more corporate based. We deal with the premium / super-premium end – people who have different levels of demand – and because of that, we weren’t hit too badly by recession.

Aaron Simpson, Quintessentially Lifestyle

Quintessentially has been described as ‘extreme service from the elite to the impossible.’ What are the most extreme, elite or seemingly impossible requests you have fulfilled?

We get odd, extreme requests every single day. It is a hilarious business! My favourite is a client in Kensington who built a two-storey underground bat cave, modelled on the old Batman cartoon. We found the original set designer from the television series, got the architects in and managed the whole process for him. Unfortunately then the Dark Knight movie came out and we had to strip it out and redo the whole thing. Whatever tickles your fancy! Where will your future growth come from?

It will be growing our geographical footprint as well as the verticals so we can service more from within our family. We do increase membership levels in certain cities every four or five years, as well as membership dues. Why did you set up the Quintessentially Foundation and what does it do?

Having grown the business quite substantially in the first 10 years, we then turned to what we could do to help change the lives of others that haven’t got as much. Our main focus is children and education, and we support four different charities every year, both UK and international. Our members are very generous and we hopefully run a good ship and deliver as much resource and money as possible. Through member donations and various events, such as a poker night at the Savoy and an annual bike ride, we raise about £2 million annually. I KF www.quintessentiallygroup.com info - november / december - 11

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n e ws i n t h e ci t y

Party politics: who means business? With the 2015 general election now in sight, the major UK political parties used their September party conferences to set out their stalls and some important differences appear to have opened up between them

Ed Miliband

he tone set by Ed Miliband, leader of the Labour Party, sounded ‘anti business’, at least to Conservative ears. His pronouncement that he would freeze energy prices for 20 months moved the markets, wiping £2 billion off the value of leading energy firms as investors rushed to sell shares in gas and electricity. And he was unrepentant about a shift towards state intervention, saying, ‘We’ll hear all the scare stories, all the threats, just like we used to hear from the big banks. I’m sorry, I’m going to call time on this market – we will make this market work for the people of Britain.’ Centrica threatened to leave the UK market if the policy were implemented and analysts warned that it would cost the industry heavily and result in reduced investment in new energy production. This was the centrepiece in a speech that promised to stand up for the little guy against big business by increasing corporation tax and using the money to cut small company business rates. He also set his sights on the ‘privileged few’ with proposals for a bonus tax, a mansion tax on properties worth over £2 million, and a possible return to the 50% top rate of income tax. Land owners with planning permission would be sanctioned for sitting on their land banks, and a target to build 200,000 houses a year was put forward. David Cameron’s Conservative Party speech was, by contrast, much less headline grabbing and contained few new policies. He struck a more sober note by warning that the recovery was incomplete, but delivered a strong endorsement for ‘profit, wealth creation, tax cuts and enterprise’, which, he said ‘are not dirty, elitist words. They aren’t the problem: they are the solution because it’s not government that creates jobs, it’s businesses.’ The Conservative Party is conscious that it might lose votes to the UK Independence Party (UKIP), which taps into a strong vein of anti EU and immigration sentiment. Once a party of colourful individualists,

David Cameron

UKIP, under the leadership of Nigel Farage, has gained significant ground with a message that the UK cannot control its own borders as a member of the EU, especially with the doors opening to Romanian and Bulgarian immigration in January 2014. ‘It’s about getting back independence and democracy,’ he said, speaking on BBC’s Andrew Marr Show on 6 October. On the same programme, Home Secretary and Conservative MP, Theresa May offered Conservative counterproposals to the immigration issue, namely reducing pull factors and tightening up the benefit system for immigrants, and reiterated the Conservative offer to renegotiate with Europe. But the Tories’ best bet against UKIP is the ‘Vote for UKIP and you will let in Labour’ message. No matter which party or parties form the main government in 2015, banking and energy markets will be more tightly regulated, public spending control and deficit reduction will be high on the agenda, and the Bank of England’s monetary policy remit and operational independence will be supported. Neither main party advocates leaving Europe, although their political tactics might have different outcomes. Ultimately it will be a tussle over public perception of who has the better vision for Britain. I KF info - november / december - 13

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Ludovic de Montille Ludovic de Montille is UK Chairman of the BNP Paribas Group, a Patron member of the Chamber

acknowledgement of this, and all the or Ludovic de Montille, a career in more prestigious for being the first banking was not a given. He had intended to follow the family tradition time a French bank had received this recognition. of working in the civil service, and was educated accordingly at HEC1 and ENA2. As a Senior Investment Banker for the bank’s major corporate clients, Ludovic In due course, Ludovic did begin his gained experience of the banker’s role career in the civil service, working as an in the widest sense. ‘The reality is that ‘Inspecteur des Finances’ in the Treasury. banking is a specialised business and not ‘At a very young age you are dealing with many bankers have been lucky enough very important matters for the country; to cover such a wide range of businesses,’ you come to understand the difference he notes. It may very well have been between the more academic approach Ludovic’s broad understanding of the you learned at university, and the business that persuaded management to practical and political feasibility of what ‘take a risk’ by appointing him Director of you propose, which has real impact,’ he BNP Paribas UK Holdings and Territory remarks. The position gave him wideLudovic de Montille Manager in the UK in 2007. It was a huge ranging experience, but after 13 years, change for Ludovic, going from managing one PA to 8,000 Ludovic wanted to do something different: ‘I discovered people, but having missed the management side of banking, that serving the common good is not something that is exclusive to civil service, and that you can be extremely it was a challenge that he relished. ‘I get the same sort of satisfaction from seeing people evolving positively within useful to your country in the private sector too.’ the organisation as I do from closing a deal,’ he confides. So Ludovic joined Paribas, ‘a very entrepreneurial Today, as UK Chairman of BNP Paribas Group, Ludovic’s organisation’ and the most Anglo-Saxon in culture. ‘I was responsibility is to ensure the good functioning of the absolutely convinced of the importance of capital markets, group in the UK, to represent the general management and Paribas was the strongest French bank in this area,’ he of BNP Paribas to key clients, the British authorities, says. Based in London, the global heart of this business, he regulators and the City of London, as well as to act as was thrown in at the deep end as a Debt Capital Markets an internal ‘bridge’ between Paris and the London bank, Officer, with corporate and institutional clients for the which is very international in outlook and composition. first time: ‘extremely difficult but the best way to learn,’ ‘It is a management by influence rather than authority, as he observes. Discovering a penchant for making deals which is much more sophisticated and interesting,’ he and working with clients, Ludovic returned to Paris in a comments. ‘Banking is about confidence, so protecting marketing role before taking on a more classical investment banking role in the new entity of BNP Paribas. the brand, image and credibility is key.’ The London bank is a sizeable wholesale operation, ‘It was a very complementary merger between a sort from which some businesses are run globally, and of large boutique investment bank with products and feels the full brunt of adjustments in the regulatory expertise, and a traditional banking group with a lot of and business environment. Ludovic also alludes to clients,’ Ludovic recalls. But most integral to the success the complexity of the political environment with ‘the of BNP Paribas was the management’s focus on taking the potential additional risk if the UK decides to leave the best of both entities and the concerted effort to create EU’. The bank’s position in London is entrenched by a new culture, based on prudence, respect and integrity. Ludovic’s involvement in the City as a member of the ‘One of the fundamental reasons why BNP Paribas was International Regulatory Strategy Group, the Supervisory relatively unscathed by the recent financial crisis and Council to TheCityUK and the Board of the British continued to create value throughout was because of Bankers’ Association. As he says: ‘BNP Paribas is one of the resilience of this culture and our business model,’ he affirms. BNP Paribas’ recent award for Bank of the Year the major actors of the City of London here; we are a British bank as well as an international bank.’I KF by The International Financing Review is also an industry 1. Hautes Etudes Commerciales; 2. Ecole Nationale d’Administration

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news in the cit y

Bank of England prescribes annual stress tests for banks ||| A yearly stress test for Britain’s biggest banks has been proposed by the Bank of England as part of a framework to enhance the stability of the financial system. The tests put forward in a discussion paper published by the Bank, would gauge whether the UK’s most important lenders had enough capital to withstand market turmoil, and would eventually cover all major UK banks and subsidiaries of the biggest foreign lenders. When they are introduced in full before the end of Mark Carney’s five-year tenure, the tests are expected to influence the Financial Policy Committee, which has been charged with preventing a financial turmoil. ‘We need to engage society - public, parliament – in debates about the resilience of the financial system

The Bank of England

and how we are supervising it… stress testing can provide a quantum leap in transparency and accountability,’ said Paul Tucker, Deputy Governor for Financial Stability. Comments are being invited until January. I KF

Lloyd’s List goes completely digital after 279 years ||| A notice that was pinned to a London coffee shop wall in 1734, providing customers with shipping news and information, has come full circle as customers now access it online in coffee shops the world over. Published by coffee shop proprietor Edward Lloyd for London’s 18th century

maritime community, Lloyd’s List went on to become one of the world’s oldest continuously running journals covering marine insurance, offshore energy, logistics, global trade and law. But nostalgia was set aside when a survey revealed that only 25 customers read the print version alone, so on 20 December it will roll off the presses for the last time as the online edition takes over exclusively. I KF

Second woman becomes Lord Mayor of London ||| A woman has been elected Lord Mayor of London for only the second time in the 800-year-old history of the institution. New incumbent Fiona Woolf is the 686th head of the City of London Corporation, which is the local authority of the Square Mile, the nickname for the medieval boundaries of the City of London, or ‘the City’ that has come to be synonymous with London’s financial services industry. The ancient office is largely ambassadorial, and quite distinct from the more recently

created Mayor of London office. Despite its minuscule 1.12 square mile (2.90 km2) area, the City of London holds city status in its own right and the Corporation that governs it has some unusual responsibilities for a local council, such as being the police authority. As Lord Mayor, Fiona Woolf, who is a partner at law firm CMS Cameron McKenna, will spend at least three months of her year-long tenure promoting UK financial services in overseas markets. I KF info - november / december - 15

news Compiled by Marielle Fraize

Companies

Thales welcomes naming of third Astute-class submarine ||| HMS Artful, the third of the 7,400-tonne Astute-class nuclear powered attack submarines, has been unveiled and officially named at the Barrow-in-Furness shipyard. Jeremy Standen, Vice President of Maritime Mission Systems for Thales UK, who attended the naming ceremony, said: ‘We welcome this latest and significant milestone in the Royal Navy’s Astute-class programme. From across a number of our UK facilities, we have collectively provided the platform with a world-class set of sensor systems that provide the essential ‘eyes and ears’ of the submarine.The Artful’s official naming ceremony underlines Thales UK’s strong relationship with the Ministry of Defence and BAE Systems, and we

The Astute-class submarine

look forward to further co-operation as the remaining submarine builds continue to progress.’ The first submarine, HMS Astute, was officially commissioned into the Royal Navy in August 2010. The Astute-class boats are the UK’s biggest hunter-killer submarines, and one of the most capable military assets in the service. I

Alstom unveils the UK’s first Citadis tram in Nottingham

||| Alstom officially unveiled on 24 September the first of 22 Citadis trams ordered by Nottingham Express Transit (NET) for Nottingham’s tramway extension project. This is also the first Alstom tram to be delivered to the UK. The tram was unveiled in Nottingham in the presence of Councillor and Lord Mayor Merlita Bryan, Phil Hewitt, Chief Executive of Tramlink Nottingham and Terence Watson, Alstom UK President. The delivery is part of NET phase 2, a project to expand Nottingham’s tramway network with the construction of two new lines totalling 17.5 kilometres and 29 stations. The expanded network will see trams depart from Nottingham Station to serve the south and southwest of the city, with the new Citadis showcasing a design adapted to the city. Terence Watson, Alstom UK President, said: ‘We’re delighted to be Tramway Citadis for Nottingham bringing our Citadis design to the UK for the first time and especially pleased that we’re able to do that in Nottingham where we’re also hard at work building the new tram lines for the city. Citadis for Nottingham has a distinctive look while also blending in with the existing fleet.’ I

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news

Airbus Military celebrates first A400M delivery to French Air Force

Airbus Military celebrates first A400M delivery to French Air Force (c) Airbus Military

||| More than 700 people celebrated the delivery of the first production A400M new generation airlifter to the French Air Force at a ceremony at the Airbus Military Final Assembly Line (FAL) in Seville, Spain on 30 September. The aircraft, the first of 50 ordered by France and of a total of 174 on order, will be based at Orleans Bricy Air Base and initially used for training before being deployed on military and humanitarian missions. HRH

Prince Felipe of Asturias, French Minister of Defence Jean-Yves Le Drian, Spanish Minister of Defence, Pedro Morenés, as well as other military authorities from France and other partner nations and OCCAR (Organisation for Joint Armament Cooperation) representatives attended the ceremony along with EADS CEO Tom Enders, Airbus Military CEO Domingo Ureña-Raso and more than 300 Airbus and Airbus Military staff. I

Eurostar to enter joint bid for UK East Coast rail franchise ||| Keolis and Eurostar International intend to launch a joint bid for the UK East Coast (London to Edinburgh) rail franchise. The successful bidder for the franchise is expected to be awarded a contract in October 2014, with the franchise commencing in February 2015. Keolis, one of Europe’s leading transport operators, will be the lead partner in the bidding consortium while a minority share will be held by Eurostar, the high-speed international rail operator. The franchise will operate under a new, distinct brand. The combination of Keolis’ proven

franchise management skills and bid expertise, coupled with Eurostar’s record of customer service delivery and product innovation presents a compelling proposition for the future growth of East Coast services. Nicolas Petrovic, Eurostar’s Chief Executive, said: ‘By joining forces with Keolis, we bring a unique blend of expertise and innovation with a fresh perspective. The East Coast franchise is a vital economic artery and a key route for both business and leisure passengers which represents an exciting opportunity for future growth and investment.’ I

Asendia UK opens upgraded facility at Heathrow ||| Asendia has stepped up its presence in the global postal logistics sector with a move to a new, upgraded processing and air conveyance centre at Heathrow, following months of consolidating its business interests in the UK. The new 6,500 square metre facility close to Heathrow Airport now houses staff from La Poste, Swiss Post and the recently acquired Pitney Bowes IMS UK. Asendia is a joint undertaking between La Poste and Swiss Post, two of the world’s leading postal operators, merging their vast knowledge and expertise in postal communications, as well as optimising their extensive network of delivery routes across the globe. Asendia is already the second largest crossborder postal operator in Europe with operations worldwide. I

Asendia’s upgraded facility at Heathrow is now in full operation

info - november / december - 17

news

Altran buys UK telecommunication specialist ||| Altran has acquired Sentaca Communications Ltd, the British commercial activities of Sentaca Group, an engineering development firm serving the wireless telecommunications industry. Sentaca Communications engages with several Tier-1 operators and leading industry vendors in the UK, and is strategically positioned to capitalise on the current technology and business model changes within the telecoms market. The acquisition of Sentaca Communications will extend Altran’s existing offering, footprint and client base in the

telecoms market. With more than 40 people, Sentaca encompasses service design and architecture, test and integration, implementation and operational support, technical project management and consulting services. Commenting on the acquisition, Philippe Salle, Chairman and Chief Executive of the Altran group, said, ‘Sentaca Communications is a high value-add to our portofolio of activities in the UK and in our Telecoms division globally, bringing complementary expertise and client relationships to Altran’. I

Saint-Gobain glass helps One Angel Square to breathe fresh air ||| The innovative use of a double-skin Clima façade based on a specification provided by Saint-Gobain Glass has created one of the major energy-efficiency features for One Angel Square, said to be one of the most sustainable large buildings in Europe. Wide air gaps between a laminated glass outer skin and the main double-glazing of the newly completed Co-operative Group headquarters in Central Manchester enable the entire surface of the £105 million construction to breathe, providing constant ventilation and heat dispersion at the same time as maximising the building’s solar gain. SaintGobain Glass provided more than 10,000 square metres of glazing for the unique building’s envelope. I

Citroën unveils its new concept car

||| On show at the 2013 Frankfurt Motor Show was Citroën’s new concept C-Line car – the C4 Cactus. Far removed from the conventional hatchback, this stylish model puts the emphasis on design, comfort and simplicity of use. The production version will be unveiled in February 2014. I

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CBRE appointed to advise on sale of £550 million UK-wide property portfolio ||| Telereal Trillium has appointed CBRE to advise on the sale of a UK-wide property portfolio, which includes a number of landmark London buildings. The Hyperion portfolio comprises 55 assets and includes flagship properties such as 440 Strand, 63-65 Piccadilly and 97 New Bond Street. CBRE will be guiding the purchase price of £550 million. Peter Arduino, Executive Director, CBRE commented: ‘Hyperion is a unique opportunity to acquire a diverse portfolio, by sector and geography, including the iconic property at 440 Strand. We believe this diversity coupled with the long-term security of the RBS tenancy makes this portfolio a fantastic investment prospect.’ I

news

Her Royal Highness The Princess Royal opens Chivas Brothers’s new Prestige Hall

HRH, The Princess Royal at the Prestige Bottling Hall with Chivas employees

||| Her Royal Highness The Princess Royal officially opened a brand new bottling hall designed to cater for today’s luxury Scotch whisky and gin consumer during a visit to Renfrewshire. The Prestige Hall was completed last year as part of an annual £40m investment in operations by Chivas Brothers, the Scotch whisky and premium gin business of Pernod Ricard. It was created to facilitate the hand-packaging of the company’s highest-value products, including those in the Chivas Regal, Royal Salute,

The Glenlivet, Beefeater and Ballantine’s ranges, as well as some limited edition single malts. The process in the Prestige Hall is much more hand-crafted, quiet and bespoke than in a typical bottling hall, drawing on the skills of specially selected employees to meet the high standards expected by the expanding group of luxury whisky and gin consumers around the world. During the visit, Laurent Lacassagne, Chairman and CEO of Chivas Brothers, and Alister McIntosh, Manufacturing Director, invited Her Royal Highness to tour the North and Prestige bottling halls to meet key employees and unveil a commemorative plaque. While on the visit, Her Royal Highness was able to witness the company’s full range of bottling facilities from high-speed, highvolume bottling lines to the detailed processes carried out by hand. I

EY acquires Greenwich Consulting ||| EY has announced the acquisition of Greenwich Consulting, a move that will consolidate its service range worldwide notably in growth strategy, marketing, digital and data-analysis. The 130 Greenwich Consulting employees – 80 of whom are located in France – will now be working with EY Advisory’s teams (30,000 worldwide) to strengthen EY’s strategy, customer and innovation capabilities in helping clients transform their businesses. This acquisition is part of EY’s global growth strategy. Jean-Pierre Letartre, EY Chairman in France and EY CEO in France, North Africa and Luxemburg, and Eric Mouchous, head of EY Advisory in France, North Africa and Luxemburg, are both enthusiastic about this acquisition: ‘We’re proud to be associated with one of the best French consulting success stories of the last 10 years. The combined operation will mean we are better equipped to meet our clients’ expectations and able to offer some unique

capabilities in innovation, market growth and business transformation’. I Delahaye_Ad_82_62

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info - november / december - 19

news

More awards for Le Manoir Aux Quat’saisons ||| The 2014 Michelin Guide has affirmed Manoir Aux Quat’saisons’ two Michelin stars for a record 29th year. This crowns a number of accolades recently received by this inimitable establishment. In the Sunday Times ‘Ultimate 100 British Hotels’, Le Manoir was named the Best ‘Foodie Hotel’ and described as an ‘unforgettable experience’; at the annual Fodors Top 100 Hotel Awards 2013 in the USA, Le Manoir was called a ‘Culinary Gem’; and it was named AA Eco Hotel of the Year 2013 at the AA Hospitality Awards. Commenting on the awards, Raymond Blanc said ‘True excellence lies in being bold, ambitious and hard working – and I believe this is what distinguishes us as providing a superlative

experience for all our guests. We constantly search for the unattainable – sublime excellence – in everything we do.’ I

EDF Energy tops the National Customer Satisfaction Index ||| EDF Energy has been placed joint first in the National Customer Satisfaction Index (NCSI), an independent national measure of customer satisfaction. The company rose from last place to joint first for energy companies in the space of 12 months in the latest ratings from the independent survey. The NCSI is

an independent national benchmark of residential customer satisfaction. It is an online survey of customer evaluations of the quality of goods and services that they have purchased from a variety of companies in the UK. I

Accor named Eco Group of the Year at the AA Hospitality Awards ||| Hotel operator Accor has been named the Eco Group of the Year at the AA Hospitality Awards 2013. The Awards are amongst the most prestigious in the UK hospitality industry and draw on the unrivalled knowledge and expertise of the AA members and professionals involved in the judging process. Karelle Lamouche, VP multi-brand Marketing Services, Accor UK & Ireland commented: ‘This recognition from the AA reflects the ongoing success of our sustainability programme, PLANET 21, and our longstanding commitment to operating as a responsible and environmentally conscious business.’ I

Miller Rosenfalck shortlisted for Law Society Excellence Award ||| Miller Rosenfalck LLP, the niche European business law firm has been shortlisted for the prestigious Law Society Excellence Award in the Exporting Legal Services category. The award will be made 20 - info - november / december

to the firm that has broken new ground and actively developed new export markets. It is the third time Miller Rosenfalck has been shortlisted in this significant category, highlighting the international impact of the firm’s work for mid-sized businesses across Europe, with a specific focus on the Northern European markets. The firm counts seven partners and 14 lawyers and saw its turnover grow by 20% last year. I

news Schools

ESCP Europe celebrates top rankings and â&#x20AC;&#x2DC;Business School of the Yearâ&#x20AC;&#x2122; nomination ||| This academic year began with accolades for ESCP Europe with top rankings in the Financial Times and a nomination as â&#x20AC;&#x2DC;Business School of the Yearâ&#x20AC;&#x2122; in the Times Higher Education Awards 2013. The 2013 FT Masters in Management Rankings, placed the School at No. 1 in each campus country (France, UK, Germany, Spain and Italy), No. 1 for â&#x20AC;&#x2DC;International Experienceâ&#x20AC;&#x2122; and No. 2 worldwide. This year 830 students from 41 countries have enrolled on the two-year course whose graduates realise a return on investment from their studies within the first year, mainly from the consulting and finance/banking sectors. Dean Edouard Husson said, â&#x20AC;&#x2DC;One of the key reasons for the Schoolâ&#x20AC;&#x2122;s results in the FT ranking is that taking a global perspective is in our DNA: since the 1820s one third of our students have been international. Our faculty have always remained faithful to our founder, Jean-Baptiste Say, by emphasising innovation

and a strong commitment to entrepreneurship and individual responsibility.â&#x20AC;&#x2122; Innovation in the UK, through the launch of the Research Centre for Energy Management and Creativity Marketing Centre, gained ESCP Europe its place on the shortlist for â&#x20AC;&#x2DC;Business School of the Yearâ&#x20AC;&#x2122; in the Times Higher Education Awards 2013. Through seminars, conferences, newsletters and blogs, the research centres have helped the School build new networks, reaching out to the UK academic scene, and enriching its offer to students on all programmes. â&#x20AC;&#x2DC;We have been in the UK for 40 years now. This nomination recognises our ongoing efforts to continue to grow, innovate and reach out to the academic, student and business communities. We are very proud,â&#x20AC;&#x2122; said Dr Patrick Gougeon, UK Director. It does not stop there. A new full-time Master in Energy Management has just started and a new series of Advanced Master Classes has just been announced. I

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news Schools

Rouen Business School and Reims Management School merge to form NEOMA Business School ||| Rouen Business School, the second business school created in France in 1871 and Reims Management School, established in 1928 to meet the needs of professionals for the sale, distribution and export of champagne are merging to form NEOMA Business School. This new entity has a dual purpose: to be ranked among the best European schools, and to be recognised as a key corporate partner. This new school, with three campuses in Reims, Rouen and Paris, will strive to excel in its primary mission: producing management graduates who are able to meet corporate expectations. Its goal will thus be to train and guide future managers and entrepreneurs capable of achieving responsible leadership. NEOMA Business School has more than 200 permanent professors and focuses on seven different academic departments, reflecting its strategy and

positioning (Finance; Marketing; Strategy and Entrepreneurship; Information Systems, Supply Chain and Decision Support; Man and Organisations; Compatibility, Control and Legal Affairs; Economy, Cultures and International Affairs). A new portfolio of programmes, from Undergraduate to Executive Education, will be launched for the start of the new academic year 2014. I

EISTI to offer two English taught Master’s degrees

EQUIS re-accredits Grenoble for maximum five years

||| EISTI, an engineering school with two tracks in Computer Science and applied Mathematics, located near Paris, offers 12 specialisations in the engineering curriculum taught in French. The school has also been recently accredited by the Ministry of Higher Education and Research to deliver two national master’s degrees taught in English. These Master’s Degrees in Business Analytics: Architecture, Data Exploration and Optimisation and Quantitative Finance and Risk Management begin in January and September. I For more information: www.eisti.fr Contact: international@eisti.eu

||| EQUIS, the international system of quality assessment, improvement and accreditation of higher education institutions in management and business administration, has re-accredited Grenoble Ecole de Management (GEM) for five years, the maximum time period for which EQUIS issues re-accreditation. This re-accreditation reaffirms the tripleaccredited status of GEM. In addition to EQUIS, the school is also accredited by AACSB and AMBA. Only a few business schools worldwide hold the triple crown accreditation. Loïck Roche, Dean and Director of GEM, said: ‘This is the third time that GEM has received this award for the maximum duration. It is a clear indication that we are meeting the quality criteria established by the accreditations and in doing so, remain in strong alignment with our own mission (accompanying corporate performance) and vision (becoming one of the most influential business schools).’ I

The French Chamber’s Recruitment Service signs two new partnership agreements with business schools The French Chamber’s Recruitment Service has recently signed two new partnership agreements with ESCP Europe and Sciences Po Paris business schools. Like those 22 - info - november / december

already signed with HEC, EISTI, Grenoble and Reims management schools as well as Groupe Sup de Co La Rochelle, this will give the Recruitment Service access to a pool of talents and will increase the possibility of young graduates and alumni from these schools being recruited into top positions in the UK. I

spotlight on s m e s & s ta r t u p s

Briefs

Butler Safe Technologies launches world’s first operational and connected defibrillator

||| With 124,000 heart attacks a year in the UK touching people of all ages and physical conditions, defibrillators are essential equipment. However they do no good if they are not used.

French manufacturer Butler Safe Technologies (BST) commissioned a survey of 2,000 people which found that only 15% of respondents reported they had defibrillators in their workplaces. Of those, less than half (44%) reported that they knew how to use them, and 11% said they had been trained, but would still not use it in a genuine emergency due to lack of confidence. BST has therefore introduced DOC, a unique defibrillator which is monitored remotely by its

Atout France’s 2014 campaign to attract British tourists

partner Allianz Global Assistance. In case of an emergency, the user is directly put in contact with a healthcare professional through the device itself whilst an ambulance is being directed to the exact location thanks to a built in GPS. Training on the device is organised by the British Red Cross. The first clients in the UK include Jaguar Land Rover, Harrow School, University of London and the French Embassy. With each DOC installed, a life can be saved. I www.docsaveslives.com

SMTC: a French innovator at the Aero Engineering Show

||| With the British making 56.5 million visits abroad in 2012, British tourism is very important to Europe, and particularly France. In 2014, Atout France, the France Tourism Development Agency, will launch a new campaign to attract more British tourists to France. ‘What’s your Tour de France, Your France your way’ will aim to remind the British why they love France, that France is ‘exotic’ and yet just on their doorstep, that France offers a multiplicity of priceless experiences as well as a charming and friendly welcome. This concept will bring together over 50 partners: destinations, carriers and tour operators. With an investment of £2 million, the campaign will be advertised in the press and on social platforms. I

Credit Limits International wins award ||| Credit Limits International Ltd has won the Outstanding Debt Collection of the Year Award 2013 (SME category). The Award was presented to the company by the Credit Services Association – the only professional body for debt collection agencies in the UK. This year is the first time that it has given an award for an Outstanding Small Business, recognising the vital role that small members play, taking care to deliver quality services, and often providing specialist services tailored to the individual needs of their clients. I

||| SMTC is a French SME specialised in Composite Panel Subsystems, which opened a London office less than a year ago. Its aircraft interiors business lists Zodiac Aerospace, Simair and Duqueine amongst its French customers, and it is now attracting a lot of British interest too in its bespoke lightweight solutions (seating, galleys, partition walls, lavatories, etc.) SMTC will be exhibiting at the Aero Engineering Show at the Birmingham National Exhibition Centre (NEC), on 12-13 November (booth D95). It will be presenting projects that combine lightweight honeycomb panels with high level of integration and finish. I info - november / december - 23

spotlight on s m e s & s ta r t u p s

Christian Lacroix designs Petit Bateau capsule collection Petit Bateau and the Opéra National de Paris have joined forces to produce a capsule collection designed by Monsieur Christian Lacroix. ‘Just like children today, all year round I wore white ribbed vests and garments whose “touch and feel” I still remember. Our mothers helped us dress, sometimes tenderly, sometimes with a tinge of impatience, depending on whether or not we were running late for school or bedtime. I was very grateful to be asked by Petit Bateau to design a few timeless pieces, just for the evocation of those memories,’ writes Christian Lacroix. The new collection will be available from 6 December in a selection of Petit Bateau stores, on www. petit-bateau.fr and at the Palais Garnier Opera House. Petit Bateau has nine stores in the UK. I

L&P Feature in Citywire Wealth Manager The Citywire Wealth Manager August edition featured L&P, with Director Andrew Moore on the front cover. Citywire journalist David Campbell was investigating how independent financial advisers (IFAs) and wealth managers demonstrate their investment credentials and publish their own performance. Despite

there being more than 10,000 IFA and Wealth Management companies in the UK, he found that only a very small minority measure and publish the results of their advice. L&P was extremely flattered that it stood out from the crowd, even as a small firm competing against much larger organisations. Campbell commented that L&P’s approach ‘is a commitment to straight dealing not so much as unusual among peers as almost unique.’ Andrew Moore adds that the feature provides L&P with recognition for over three years of hard work and research, focusing on the quality of investment advice and improving the wealth of clients. I

ShareWizMe celebrates its first client in the UK Expert in questioning methods involving important groups of individuals, ShareWizMe has developed a powerful multilingual linguistic engine to analyse text answers (ideas, feedback & comments). This French start-up powered a recent AXA UK event with its ShareMeeting™ software. Involving 80 employees from AXA, the event was turned into a genuine participative meeting thanks to the real time analysis of text contribution from all the participants.

Interactifs publishes its first book ||| A major stepping stone for Interactifs UK (IAUK) this autumn will be the publication of a book by Alan Palmer, the head of IAUK. Talk Lean: Shorter meetings. Quicker results. Better relations (John Wiley & Son) comes out in November and will be available in leading bookstores and online. It reprises the central theme of Interactifs’s successful seminars: how to be consistently both candid and courteous in meetings and conversations so as to produce more concrete results and more assured relationships. I 24 - info - november / december

ShareWizMe is now looking for large British companies willing to free up the discussion in their organisations and eager to use collective intelligence in their processes. I

James Cowper shortlisted for three awards ||| Accountants and business advisers James Cowper LLP has been nominated for the Mid Tier Firm of the Year, Audit Award of the Year and Tax Award of the Year. Sarah Robert, Head of International Services said: ‘We are competing against a number of other firms from across the UK, so to be shortlisted is a fantastic achievement for the teams involved.’ The winners will be announced on 20 November at a black tie dinner in central London. James Cowper has 160 staff across six offices in the UK and an annual turnover of £12 million. I

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Beatrice and Arnaud de Montille, Merci Maman ||| A timeline on the wall of Merci Maman’s trendy officestudio charts this little company’s significant milestones and mounting successes within just six years. At the top, 2007 marks its year of creation, when Beatrice de Montille started the enterprise from her bedroom. A mother of two small children at that stage, she wanted to find an occupation that would fit around that, rather than continuing in corporate sales and marketing. Beatrice toyed with a number of business ideas before deciding that making personalised products ‘ticked all the boxes’ and played to her creative and handicraft strengths. Immersed in the world of mothers and children as she was, she had in mind it should be a ‘mum thing’ – something charming with a strong emotional appeal. In France, Beatrice had bought one of the popular charm bracelets engraved with her children’s names, and realised that there was nothing like it in the UK. And so the idea for ‘Merci Maman’ was born – embroidered items as well as personalised engraved jewellery using a cursive style of handwriting to give it its French flair and distinction. Beatrice started by teaching herself how to engrave using an air compressor, bought a computerised sewing machine and began making things for family and friends. Advised by a friend in retail to gear herself up in time for Christmas, she launched the company in October, initially selling through Christmas Fairs and private sales. Then in July 2008, Merci Maman went online and, with a bit of well-placed advertising and marketing to local mother and baby magazines, started getting noticed. Its evolution went in an unexpected direction when fashion magazines – the likes of Glamour, Cosmopolitan, Grazia, The Stylist and Women & Home – started featuring the jewellery, and most surprising of all was the discovery of a male market as bracelets for men became a top seller. ‘Had we known this from the start, our brand name would have been different!’ says Arnaud. The brand also now boasts something of a celebrity following – Pippa Middleton is a returning customer, and others include Holly Branson, Will Carling, Poppy Delevingne and Harry Redknapp. And a television debut for a Merci Maman bracelet in ‘Don’t Tell the Bride’ brought tears to the eyes of its (male) recipient. In 2009, with her third child due, Beatrice had to decide whether to put Merci Maman on hold or hire someone to help. Although her husband Arnaud was very involved with the accounting and decision making, he had a job in the City, and so to maintain the momentum, Beatrice took on her first employee. Since then, ‘mumpreneur’ Beatrice has had a fourth child, and the team has

Beatrice and Arnaud de Montille, Merci Maman

expanded to eight, doubling in the last year alone, with Arnaud quitting his job to come on board full time six months ago. Having long outgrown the bedroom, Merci Maman now occupies a 120m2 space in Fulham, London. Merci Maman’s range has also grown. The standard heart shape and round disc are still best sellers, but they have since developed a number of other charm designs, different coloured cords, leather bands, chains and combinations. One of Arnaud’s roles is business development and they are in talks with a major retail chain to supply a generic range of jewellery, as well as considering the corporate gifts market. Customer service is, and always has been paramount. The products are, after all, bespoke, very personal and sentimental. The Merci Maman staff are attuned to meeting customer requests with sensitivity and speed, dispatching orders within a day or two of receiving them, beautifully packaged in specially designed boxes. On a quiet day, they engrave about 50 pieces but this ramps up to 200 during busy periods. All the staff are multi-taskers, trained to work on the production line if need be. For now, 93% of sales are in the UK, but being a website-based company means orders do come in from all over the world – and for inscriptions in a whole range of languages, from Chinese to Arabic and even Thai. Next on the agenda is a website revamp and mobile optimisation. A French website is also in the pipeline – competition may be stiffer, but Merci Maman believes it has the edge when it comes to innovation. Turnover is currently £700,000, representing a 35% increase since last year, and Arnaud has set his sights on £1 million by 2014. It’s an ambitious target, but not inconceivable for this company that has come so far in only six years, with an undeniable knack of charming its way into the hearts of its customers. I KF info - november / december - 25

s u cc e s s s to ry

The values we represent are not the consequence of a marketing approach - they always were the basis for the company... [and] have now become part of today’s concerns

L’Occitane When Olivier Baussan started making essential oils from an old distiller and selling them in local markets he could never have imagined the global business that would grow from his humble Provençal enterprise

he story of L’Occitane is as romantic and charming as the origins of its name. Born and raised in Provence, Olivier Baussan developed a passion for nature and an in-depth knowledge of plants. As a 23-year-old student, a chance meeting with a local countryman resulted in him buying a traditional steam distiller which was otherwise going to be thrown away. After restoring the old copper alembic, Baussan began distilling rosemary and lavender essential oils, which he sold door-to-door and at local markets. With the support of his friend Yves Millou, a chemist, he drove activity up a notch and founded L’Occitane, initially specialising in essential oils only. He chose the name L’Occitane (women of L’Occitania) because it was evocative of Occitania, an ancient province in southern France, and associated with the sensorial and cultural traditions of this region that had been celebrated in lyric poetry by troubadours of the Middle Ages. It is this connection with the land, provenance and tradition that is, literally, the essence of L’Occitane to this day. ‘Behind the products is a poetic vision of Provence. It’s the story of the land,’ says Olivier. ‘I was raised with respect and love for its traditions.’ The day that L’Occitane reserved its first lavender

Olivier Baussan and the alembic 26 - info - november / december

harvest was a turning point for the brand. Large brands had exclusive rights to the best land and crops, so Olivier had struggled to buy the large quantities of high quality lavender that he needed for production. Taking this first step in 1977 was made possible thanks to the strong relationships he developed with growers and landowners in the local area. Today, L’Occitane is the biggest purchaser of PDO (Protected Designation of Origin) lavender in the South of France and all supplies are covered by unique five-year contracts with partner lavender growers, the cooperatives of Simiane La Rotonde and Sault, and the Bleu Provence distillery. In 1980, another chance encounter with a retiring soap maker in Volx led to Olivier buying an old soap factory, complete with moulds and machines, and he started making soaps in the traditional Marseille style using his essential oils. The factory came with a small space that was perfect for an outlet, and this became the first L’Occitane boutique, ‘Le Relais Occitane’. This area of Haute-Provence is still the heart of L’Occitane’s operation, with its recently redeveloped research laboratory in Manosque employing over 100 people. Shea butter from distant Burkina Faso became the first ingredient sourced outside of Provence. On a visit there in 1982 to teach local women the art of soap making, he found out about this local beauty product made from the nut of the karite tree, and left with a newfound knowledge and passion for it as well as a desire to support the women in Burkina Faso. In 2012, L’Occitane purchased a record 550 tons, and is now the biggest trader of shea butter from Burkina Faso. This exchange is much more than just a commercial relationship. Recently recognised by the United Nations for its work in Burkina Faso, L’Occitane buys the butter from the Burkinabé women once it has been processed in situ, paying a fair price, which covers production, environmental and social costs, and leaves a margin for investment – in accordance with the criteria of

s u cc e s s s to ry

the Ecocert EFT fair trade label. L’Occitane continues to source special ingredients from near and wide for its products and to draw on time-honoured traditions. This is best exemplified by one of its new concepts which blends two ingredients, one local, and one from further afield, into a distinct fragrance. Thus blackberry from the South of France is paired with magnolia from the Far East, jasmine from Grasse is blended with bergamot from Italy and narcissus from France is combined with vanilla from Madagascar. By combining the most exquisite ingredients in La Collection de Grasse, L’Occitane’s in-house perfumer, Karine Dubreuil, follows in the tradition of the perfumers of Grasse, the world’s perfume capital. Olivier had no grand ambitions to grow L’Occitane outside of the South of France, but a meeting with Reinold Geiger – an Austrian venture capitalist with a business background in packaging beauty products – changed all this. Geiger came on board as a minority investor and his desire for expansion drove the business forward, with L’Occitane opening its first Paris store in 1992. But in developing the company, Baussan sold his majority stake to venture capitalists and lost involvement in the development process. ‘Our approaches were incompatible,’ he recalls. However, Geiger was part of the consortium – including Clarins – that bought L’Occitane back from the money men in 1996. As president, Geiger’s first initiative was to ask Olivier to return as creative director and lead product development. His second was to focus on international expansion and create a marketing strategy that would give the brand a global identity. In 1996, L’Occitane opened its first international stores in New York, Hong Kong and London, and now has over 2,000 all over the world. Its UK growth has been steady and strong thanks to an interesting multi-channel business model. Today there are over 63 standalone boutiques in the UK & Ireland, as well as significant presence within selected large retailers, on QVC, online and mail order. Last fiscal year, the UK accounted for 5% of global business. One of its strongest areas of growth has been Asia, which now accounts for about 50% of total sales. As part of a strategy to penetrate the Chinese market and grow within the region, L’Occitane was listed on the Hong Kong stock exchange in 2010. L’Occitane has also expanded into a group with the acquisition of brands that share its ethos: the organic French cosmetic brand Melvita in 2008, the Korean skin therapy company Erborian in 2012 and the Le Couvent des Minimes brand of natural skincare recipes. Its brand success in the international market has undoubtedly been because of its uncompromising adherence to authenticity of ingredients and traditional values. Olivier’s own humanitarian outlook, first crystallised in his early determination to support the women of Burkino Faso, officially took form as L’Occitane Foundation in 2006 with dual missions of supporting the blind and the economic emancipation of women. Olivier had become aware from quite early on that L’Occitane’s sensorial products were particularly special for blind and partially sighted people who had an appreciation of the distinct scents and different textures. This led to the decision to add braille labels to products in 1997, and L’Occitane supports a programme for the professional integration of the visually impaired in France as well as NGO projects to fight

Olivier Baussan

avoidable blindness in developing countries. The foundation has also focused on L’Occitane’s business partnership with the women of Burkina Faso by supporting women’s entrepreneurship there through literacy centres, microcredit programmes and training for incomegenerating activities. The ongoing partnership between the president and founder has been a classic marriage of complementary skills. Commercially pragmatic yet sensitive to the creative spirit, Geiger is the perfect foil to Baussan’s poetic and philosophical disposition. ‘The step from craft to big business is not so easy,’ Olivier has said, and when Reinold Geiger became the main shareholder of L’Occitane it allowed Baussan to devote himself freely to what he prefers to do in his role of creative director. He is now free to develop the more creative aspects of the business: packaging and store design. ‘I began the business as a creative venture,’ he has declared, and the whole Baussan family remains very involved in the creative aspects of L’Occitane. As for the future, Olivier says, ‘I feel L’Occitane will keep on speaking to more and more people... The values we represent are not the consequence of a marketing approach - they always were the basis for the company. But whereas 35 years ago our values rallied far fewer people, they have now become part of today’s concerns.’ I KF info - november / december - 27

focus Energy: sustainability, affordability, security Energy policy: squaring the circle Energy issues are high on the agenda of policy makers; they are concerned with ‘energy development including energy production, distribution and consumption. The attributes of energy policy may include legislation, international treaties, incentives to investment, guidelines for energy conservation, taxation and other public policy techniques.’1 The objectives are not much debated: energy should be ‘available’, ‘affordable’ and ‘sustainable’. There are two issues here. First, the most appropriate workable solutions to achieve each objective need to be identified. But since we are talking about long-term, capital-intensive projects in a context of technological uncertainty and scarcity of funds, there are no straightforward answers. Second, these objectives are not fully compatible. Years ago, France decided to install massive nuclear capacity because of its energy dependency. Since then French citizens can count on secure, cheap electricity, but not all agree on it being sustainable. Coal is cheap... but also dirty! Renewable energy may be fine for the planet, but it is intermittent and also expensive. So, what should the priority be? What should the energy mix then be? Opinions diverge (see figure). Whereas policy makers tend to be concerned primarily with sustainability and security of supply (availability) – at least in Europe – users, industry or households, place availability and affordability first. The problem is that availability and sustainability come at a price that may

No interruption in fuel supply, sufficient generation capacity and reliability of transport & distribution networks

Security

Policy Makers Users

Sustainability Provision of energy that meets the needs of the present without compromising the ability of future generations to meet their needs

Affordability Making sure too high prices will not alter export competitiveness and result in energy poverty

Source: Research Centre for Energy Management, ESCP Europe Business School

not be deemed affordable by users, who also happen to be voters. An increasing number of poor households has made fuel poverty a major political issue all over Europe. And increasing competition on world markets means high energy prices also put exporting companies at risk.

Is energy too important to be left to politics? Why not count on market mechanisms to drive energy policy instead of relying on politics. Some say ‘energy is too important to be left to politics’.2 It is a highly debated issue. But one has to recognise that energy markets are characterised by well-identified ‘market failures’ arising from various factors such as information asymmetry

1. Energy Policy: Economic Effects, Security Aspects and Environmental Issues, edited by Noah B. Jacobs

focus contents 30 Ed Davey MP, Secretary of State for Energy and Climate Change: UK energy priorities and their delivery

the UK’s key energy challenges?

How can the UK meet its energy challenges?

40 Nuclear power: the next generation 42 A guide to UK gas trading

32 Investment and financing for energy projects

43 Warmth from waste: the heat is on

33 Out in the cold? Ensuring everyone can heat their home

44 The UK’s renewable energy landscape

35 Skills in energy: the challenges of building a sustainable

46 Sailing into deeper waters: overcoming the obstacles

workforce

for offshore wind

37 The social and economic consequences of energy delivery

48 Tidal energy: rising tides for marine power

38 Business approaches to managing corporate energy use

50 Carbon capture and storage: exploring options for the UK

39 Using the forces of nature to support UK electricity supply

51 What will the UK energy system look like when Prince George is 30?

28 - info - november / december

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due to technological complexity, the difficulty of pricing negative externalities or the existence of natural monopolies requiring regulatory intervention. At the very least, policy makers are expected to provide a stable framework to incentivise necessary long-term risky investments and influence consumer behaviours. In other words, they have to make a choice as to the design of what they think is the most appropriate energy system, define a strategy and then... stick to it. Not an easy task!

The strength of lobbies Regarding electricity generation there is a consensus on the idea of an energy mix with a transition toward a diversified portfolio made of an array of solutions including wellproven traditional technologies using fossil fuel, nuclear, hydro and all types of renewable sources. Diversification would obviously contribute to increase security of supply. Deciding on the weight given to each technology in the mix is the responsibility of policymakers. They may focus on reducing the importance of fossil fuel and compensate progressively with renewable energy in order to cope with climate change and comply with EU agreements. But do they have all necessary information for the right decisions, in line with their priorities? Probably not: many conflicting lobbies, each putting forward numbers and arguments, cloud the transparency needed for rational, well-documented decisions.

tax payers’ money, making them more dependent on risk-averse private investors to achieve their goals. They are also obliged to add non-energy considerations to the equation. The observed increase in income inequality with a growing number of poor households has raised the fuel poverty issue, forcing government to give more weight to the affordability criteria. The large number of jobless people is also a foremost political concern. For that reason, the number of jobs created has become an important criterion for approving certain energy projects. Does it make sense? If these are just temporary jobs during the construction phase, as they may well be in many cases, the short-term social benefit may not be enough to justify a long-term technological choice. These are the main challenges and difficulties faced by those in charge of the energy policy. The following articles provide a more detailed analysis of many of the above-mentioned issues. I Patrick Gougeon, UK Director, ESCP Europe Business School, and Co-Chair of the French Chamber’s Finance Forum 2. Gert van Wijland, ‘Energy is too important to be left to politics’, European Energy Review (8 August 2013) http://www.europeanenergyreview.eu/site/pagina.php?id=4134 3. David M. Newbery, ‘European Deregulation: Problems of liberalising the electricity industry’, European Economic Review 46 (2002) 919–927; www.elsevier.com/locate/ econbase

Trial and error is not an option Uncertainty and opacity are more problematic because of the ‘lock-in’ issue. Considering the long-term nature of energy projects, once a policy direction is taken it may prove difficult to go back. Once in place, the existing energy system generates a self-perpetuating inertia, with technological and institutional barriers that inhibit efforts to diffuse alternative solutions. This concept explains the difficulties in developing clean energy sources with reference to a ‘carbon lock-in’ creating ‘persistent market and policy failures that can inhibit the diffusion of carbon-saving technologies despite their apparent environmental and economic advantages.’ The economic crisis does not help In a fast-growing economic environment, choices would be easier. Rapid growth allows for change and adaptation, enjoys less constrained budgets and gives investors better anticipation. But today’s crisis means policy makers are dealing with immediate social threats and are short of

What is a Watt? 1 Mega Watt (MW) = 1,000kW 1 Giga Watt (GW) = 1,000MW (1,000,000kW)

Consumption is measured in kilowatt hours (kW/h) UK energy consumption per capita (2012): 5,467.34 kW/h UK total consumption (2012): 3,136.08 GW/h

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Ed Davey MP, Secretary of State for Energy and Climate Change: UK energy priorities and their delivery As guest of honour at the French Chamber’s first Franco-British Energy Conference, Ed Davey MP answers key questions on the UK Government’s Energy Policy and how it will balance issues of affordability and investment

What would be the right energy mix for the UK?

Our reforms to the electricity market have three objectives. First, to ensure the security of energy supplies and keep the lights on. Secondly, to make sure energy is affordable to consumers and businesses. And thirdly, to reduce our greenhouse gas emissions to tackle climate change. We want to see more renewable energy, such as wind, a new generation of nuclear power stations and to find new ways of exploiting our fossil fuels whilst reducing carbon emissions – through carbon capture and storage, for

example. As for the precise mix, we are not going to be prescriptive – it will be for the market to determine – but it does need to be a diverse mix to ensure that we are not over-reliant on any one source or fuel. What are the solutions to cope with ‘fuel poverty’?

Fuel poverty affects too many families who are on a low income and unable to keep warm at a reasonable cost. The Government is providing targeted support to those households least able to afford the costs of rising energy bills, for example through grants for efficient heating and insulation under the Warm Front scheme, and a Warm Home Discount for low-income households, which will take £135 automatically off the bills of around two million households next winter. Cold Weather Payments are targeted at those particularly vulnerable to the cold, such as disabled and older people. We are working on a new fuel poverty strategy – the first for over 12 years. In many countries, energy companies and investors complain about the lack of a clear energy policy with a stable regulatory framework, which is a necessary condition to invest in capitalintensive, long-term projects. What is your view on this?

Ed Davey MP, Secretary of State for Energy and Climate Change 30 - info - november / december

I agree with these firms and investors. Governments need to provide stability and certainty. In the UK that is a key objective and is why, since 2010, there has been over £29 billion of private sector investment in renewable energy, supporting 30,000 jobs, but we need much more to build the infrastructure we want. That is why we have introduced legislation that will create a more stable investment environment. The Energy Bill aims to attract around £110 billion of low carbon investment by 2020. It includes Contracts for Difference – contracts that guarantee a minimum

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return on investment – to give investors a stable and predictable income over an entire decade. With financial support from the Green Investment Bank and the Treasury’s infrastructure guarantees, we believe the UK is the best and safest place in the world to invest in clean, green energy. What is the right balance between state intervention and market mechanisms for an efficient and sustainable energy system?

If the state does not need to intervene it shouldn’t. However, if we are to see the investment we need in our energy infrastructure to ensure a secure, affordable supply of electricity, we need to step in. The global population has expanded exponentially, pushing up demand for energy and doubling consumption over the last 30 years alone. By 2040 we expect to see two billion more people – a quarter’s of the world’s population – needing access to water, fuel and food. Energy security and decarbonisation cannot be entrusted to the market alone. Considering the fact that major countries such as the US or China do not seem to care so much about sustainability, many wonder if it makes sense for EU countries to make efforts for a carbon free energy system at the expense of competitiveness. Do you share this view?

Ed Miliband’s Opposition Government has pledged to freeze energy prices if elected. Just as you will guarantee a minimum return for investors through contracts for difference, would you consider freezing prices for consumers?

No. But I do worry about energy bills. Energy companies need to be much more transparent about their profits to ensure consumers are getting a fair deal. At the heart of our energy policy is achieving security of supply and decarbonisation at a price that is affordable. But pricefixing was attempted in California and resulted in an electricity crisis and widespread blackouts. Returning to the power cuts of the 1970s and the three-day week is not something we can countenance if we are to retain our standing in the world. The Government has introduced a huge amount of support for consumers, as well as ‘tariff reforms’ to ensure bills are simplified. Our programmes on energy efficiency are aimed at helping people save energy, so they can reduce their energy bills. I want to put a ‘wedge’ between higher energy prices and consumers’ bills. Mr Miliband’s policy could end with the worst of all worlds – with higher bills, as energy firms put up bills before and/ or after his freeze, and a reduction in investment because of increased uncertainty. I Interview by Patrick Gougeon, UK Director, ESCP Europe Business School, and Co-Chair of the French Chamber’s Finance Forum

Electricity

No – because this view is both ill-informed and out of date. The United Nations Intergovernmental Panel on Climate Change report published last month makes abundantly clear the economic and moral importance to act to tackle climate change. The ice caps are melting as sea levels rise and extreme weather sets in more regularly. Inaction is not an option. When we negotiate with major economies like the US and China, we are strengthened by our position in the

European Union, and increasingly we find the US and China taking climate change more seriously. In Europe, in taking a collective approach we can have enormous influence – already countries responsible for four-fifths of carbon emissions are following the EU’s lead in mitigation pledges. Europe must continue to take a leading role in the new global climate deal the United Nations need to sign by 2015.

Thanet Offshore Windfarm

info - november / december - 31

focus Part one: the UK’s key energy challenges?

Investment and financing for energy projects Katie Wake, Head of Energy, Environment and Infrastructure at UK Trade and Investment, outlines how the UK Government is supporting investment in the Energy sector and the financing of green projects

of public funding to leverage private sector capital and get green projects off the ground. In its first six months of operation, the bank lent £635 million and leveraged £1.7 billion of private investment to finance projects such as the conversion of Drax power station to biomass, and the Government’s Green Deal. Since then, it has successfully refinanced a significant portion of Masdar’s stake in the London Array – the world’s largest offshore windfarm. At least 80% of the Green Investment Bank’s capital will be deployed in the priority sectors of offshore wind, waste recycling and energy from waste, and energy efficiency including support for the Government’s Green Deal. All projects must be commercial and the Green Investment Bank’s capital must be additional to available private sector finance. The Government has also introduced a £40 billion UK Guarantee Scheme to prevent delays to investment in major infrastructure projects in adverse credit conditions. The scheme is run by Infrastructure UK, an arm of HM Treasury, and provides a sovereignbacked guarantee to help infrastructure projects raise debt finance by removing project risk. Projects can be considered across a range of sectors, including water, electricity, gas, telecommunications and transport. To qualify they must be ready to start in the 12 months following a guarantee being given. I Further information can be found at www. greeninvestmentbank.com and www.gov.uk/government/ organisations/infrastructure-uk

Simon Harrod

s the effects of the financial crisis continue to reverberate around the world and we face greater competition from the emerging powers, energy offers one of the biggest opportunities to bolster the UK’s economic recovery and boost employment. There are more energy projects in the infrastructure pipeline than in any other sector – more than transport, broadband, water and waste projects combined. Today there are around a million people employed in low carbon and environmental roles, with more jobs created each day. To meet legally binding climate change targets, maintain a secure supply as older power plants reach the end of their lives, and keep consumer bills down, the UK needs up to £110 billion of private sector energy investment by 2020 – more than double the current levels of investment. This is a massive business opportunity. The Energy Bill that is currently going through the Houses of Parliament paves the way for Electricity Market Reform to deliver this investment. It introduces Contracts for Difference, which will offer investors a stable, predictable and legally binding return on investment for all forms of low carbon generation in order to speed up investment. To bring down the cost of capital and get finance flowing into power generation, the Government has also established two new sources of financial support. The UK Green Investment Bank was created last year to invest in projects that are both green and commercial. It is the first ever national investment bank devoted to the low-carbon economy, established with £3 billion

Hoylake, England 32 - info - november / december

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Out in the cold? Ensuring everyone can heat their home Poor housing Stock and a dramatic increase in energy bills in recent years have made warm homes unaffordable for an increasing number of UK households. Rachel Cary, Head of Energy at environmental think-tank Green Alliance looks at the issues and possible solutions

ike France, the UK is well known for its historic buildings, many of which date back to the medieval era. Visitors to British towns and cities will walk through street after street of Victorian housing. Whilst beautiful, much of our housing stock is draughty and cold. Out of 26 million homes, 7 million lofts and 5 million cavity walls still aren’t properly insulated. In addition, 8 million solid wall properties are in need of external or internal solid wall insulation. Our poor housing stock means that we have millions of homes that are not properly heated, as the occupants simply cannot afford the bills. In 2011 the number of fuel poor households in the UK was estimated to be around 4.5 million, 17% of all UK households.1 The negative health and social impacts of fuel poverty are well documented and we’re not doing well – the UK has a much higher rate of excess winter deaths than other European countries that have colder winters, as they have more energy efficient housing. Finland, Germany and the Netherlands have about 4045% fewer deaths during winter months.2 Energy bills in the UK have historically been fairly low compared to other European countries. In 2012, average domestic electricity and gas prices in the UK, including taxes, were the fourth and second lowest among the EU15 countries.3 However in recent years energy bills have gone up dramatically. The average UK duel fuel bill has increased from about £605 in 2004 to £1,420 in 2013 (135% increase).4 Much of this has been due to increases in the wholesale price of gas. This is hitting vulnerable households hard and the government’s statutory target to eradicate fuel poverty by 2016 under the Warm Homes Act is looking increasingly hard to reach in the next three years. There have been a range of government programmes to tackle fuel poverty. Some have offered financial assistance to help elderly or vulnerable people with their bills. Energy companies have been made to offer lower tariffs to vulnerable customers. Other schemes have tried to address the root cause by insulating homes properly to reduce heating costs. However government spending on fuel poverty

has been dramatically reduced (by almost 30% in the period 2009-20125). One of the main schemes to address fuel poverty in England, Warm Front,6 was scrapped in April this year. The coalition government’s flagship efficiency policy, the Green Deal, that enables householders to take out a loan for energy saving measures, has had very low take up. Those on a low income are particularly unlikely to take on a loan, especially at an interest rate of around 7%. So what can be done to improve the situation? Firstly government needs to increase spending on programmes that effectively treat fuel poverty by insulating homes. This extra funding could come from redirecting winter fuel payments7 from wealthy pensioners. It should also use the revenue it gets from the carbon tax charged on fossil fuel power stations to insulate more homes. Government should also look at who should pay for current and future programmes. Putting everything onto the energy bill, rather than covering costs through taxation, is highly regressive as it hits the poor hardest. Most of the government’s environmental and efficiency programmes are currently added to the electricity bill, particularly affecting those with electric heating. Government is considering excluding large energy users in the manufacturing sector from having to pay for new low carbon power – this will only pass more of the strain onto domestic customers. Low income households should be exempt too. A society should be judged by how we treat our most vulnerable. Leaving the poor and elderly to suffer ill health from living in the cold should be unacceptable, especially in a wealthy country like the UK. I 1. DECC, 2013, Annual Report on Fuel Poverty Statistics, www.gov.uk/government/ publications/fuel-poverty-report-annual-report-on-statistics-2013 2. Healy JD, 2003. Excess winter mortality in Europe: a cross-country analysis identifying key risk factors. Journal of Epidemiology and Community Health, 57: 784-789. 3. Quarterly Energy Prices: DECC, September 2013. www.gov.uk/government/uploads/ system/uploads/attachment_data/file/244580/qep_sep_13.pdf 4. Electricity and Gas Supply Market Indicators, Ofgem, December 2011 and May 2013 5. The Association for the Conservation of Energy, 2012, National Fuel Poverty Budgets, www.ukace.org/wp-content/uploads/2012/11/ACE-Briefing-2012-05-National-fuel-povertybudgets.pdf 6. Warm Front gave grants to those on low incomes to insulate their homes or upgrade their boilers. 7. The Winter Fuel Payment is an annual tax-free payment made to those over 61 to help towards their winter heating costs.

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Shining a light on UK energy challenges The third phase of the EU Emission Trading Scheme (EU ETS), launched in 2013, imposes higher requirements making it crucial for states and electric utilities to find efficient solutions to mitigate their greenhouse gas emissions. In the UK, the toughening regulation is likely to bring the progressive decommissioning of highly polluting coal-fired power plants, and each company faces specific challenges on the path towards carbon-free electricity production. Vattenfall Scottish & Southern Energy RWE

23.3 25.5

16.4 7.6

2.9

Iberdrola 17.7 19.0 12.9 11.0

EON EDF Energy

Centrica

50.9

32.0

GDF Suez

Drax Group NA

Renewable Energy

34.8

18.9

7.4 12.5 6.3

2011 share of renewable energy in installed capacity (%) 2011 share of renewable energy in electricity production (%)

14.6

Green House Gas Emissions

417

Vattenfall Scottish & Southern Energy

531 787

RWE

248

Iberdrola

417

GDF Suez

430

EON EDF Energy

2011 carbon factor (Kg Co2/MWh)

100

Drax Group Centrica

220

Source: Vigeo Rating Note: Vigeo Rating company research is a result of the independent assessment of the public information made available to the shareholders and stakeholders of a company under review. Vigeo currently rate a global universe of over 2,000 issuers.

During 2011, companies producing electricity in the UK were still displaying highly heterogeneous carbon factors (amount of CO2 per unit of electricity produced), scattered between 100 Kg CO2/MWh for EDF Energy and 787 Kg CO2/MWh for RWE. A gap mainly explained by historical energy mix strategies. These differences tend to last as investment decisions in renewable energy technologies suffer from significant uncertainty on the long-term variation of production costs and the availability of future European subsidies. Similarly, nuclear power is now challenged by the security issues raised in the aftermath of the Fukushima accident and by decommissioning constraints. Even companies obtaining relatively low carbon factors may still rely on different business models. EDF Energy’s low carbon mainly reflects the omnipresence of nuclear power in its energy mix (nearly 80%), while Iberdrola’s carbon factor reflects a significant share of renewable energy in its total installed capacity (50.9%) and electricity output (32%).* Centrica displays a more balanced energy mix for its power output: 56.6% (gas-fired stations), 14.6% (wind and biomass), 28.8% (nuclear). The company also has a major involvement in combined cycle gas turbines. These characteristics explain the company’s low carbon factor. At the other end of the spectrum, the heavy presence of coal in Drax’s energy mix explains its high carbon factor; leading the company towards major changes. Drax had 12.5% of its installed capacity in co-firing sustainable biomass in 2011 and started in 2012 the conversion of three of its six coal-fired units to full biomass. I Julie Quiedeville, Analyst, Vigeo Rating For further information about Vigeo, visit www.vigeo.com, or contact lindsay.smart@vigeo.com *gap explained by the intermittent nature of renewable energy sources (sun, wind, water)

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Skills in energy: the challenges of building a sustainable workforce A refocusing on engineering skills is required if we are going to deliver a sustainable energy sector. Bruce Ball, HR Director at Alstom UK, considers the issues and some of the steps being taken to redress them

he power generation sector is, by its nature, a long-term business. Decisions made today can change the world – for good and bad – and we all live with the consequences. Although the debate around the energy ‘trilemma’ continues – whether it’s more important that energy is environmental, affordable or secure – massive investment plans for new power generation projects will herald a reinvigoration of the engineering cadre in the UK. What is not under debate however, is the need to develop a new generation of engineers to deliver those projects. The issue is further compounded by an ageing workforce, many of whom will be retiring in the coming five to 10 years. It is already starting to cannibalise, with a ‘war for talent’ with other engineering sectors such as rail, aerospace and automotive. According to Engineering UK, there are 550,000 engineering businesses in the UK employing 5.6 million people, representing 19% of the UK workforce. The organisation forecasts that the engineering sector will need a further 2.2 million employees over the next 5-10 years. This competition is not restricted to UK borders, as other growing nations are keen to drain Britain’s engineering population for their own infrastructure investments. Furthermore, the energy sector is already in growth phase. According to Ernst & Young’s 2012 ‘Powering the UK’ report, direct employment in the energy sector grew from 83,000 to 137,000 between 2008 and 2011, with growth of 6% between 2010 and 2011. According to Renewable UK in 2013, some of the strongest growth is

in the renewables energy sectors as well. Wind, wave and tidal energy sectors already directly employs 18,465 people full time and more than 70,000 jobs could be created over the next decade. There is also good work being done by Engineering UK to promote Science, Technology, Engineering and Maths subjects and careers to students, parents and teachers with a consolidated message that transcends individual industries, engineering disciplines or brands. The STEMNET (Science, Technology, Engineering and Maths Network) organisation helps to put engineers, parents, teachers and students in touch with each other to make sure that the industry has its role models – and can be incredibly rewarding. Other initiatives such as Tomorrow’s Engineers’ Week, the Big Bang fair, and Maggie Philbin’s TeenTech competition are helping the industry to engage with students to develop their curiosity from ‘making, breaking and fixing things’ into an appetite to become the next Brunel, Dyson or Higgs. The Department for Business, Innovation and Skills also encourages engineering companies to participate in its ‘See-inside Manufacturing’ programme to get students, parents and teachers to visit factories and see what a job in engineering looks like. There are few places to work which are more exciting – or as important as – the energy sector. Power stations, the electrical grid, offshore wind and tidal technologies are fundamental to our way of life – but they also have lifespans of decades, so thinking must be long-term too. And that means the industry has the opportunity not only to create more jobs – but to develop long-term careers. I

Modern apprenticeships are fundamental in ensuring the long term security of our energy infrastructure

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The social and economic consequences of energy delivery Mark Thompson, Director of Sustainability and Climate change at PwC, considers the impact of responsible growth, and how the energy sector can harness it for the greater good

n both developed and emerging economies, the demand for growth is increasingly urgent. Growth is vital to lift people out of poverty as well as provide jobs and stability for restless populations. Delivering this in a carbon-constrained, but paradoxically energyabundant world is a fundamental challenge. So far there are few signs that either companies or countries have been able to decouple economic growth from carbon emissions growth. Equally, as energy prices rise but the value of wages and pensions declines, fuel poverty becomes an ever more pressing concern. So, as the start of the economic recovery is hailed in some quarters what kind of growth will it deliver? Growth sounds good, but is it necessarily so? Bad growth can quickly evaporate (‘boom and bust’), brings little benefit to society, depletes more resources and exacts a bigger cost on society than the short-term returns it generates. Its benefits are not shared widely in society, although its negative impacts may be focused on specific communities or areas. Good growth is real, inclusive, responsible and lasting. It benefits everyone; consumers, employees, suppliers, shareholders and society alike. It makes sound business sense as businesses perform better in a society that is stable, healthy and prosperous. But this tends not to be reflected in a company’s conventional financial and management reporting. So what do we mean by real, inclusive, responsible and lasting growth? How does this apply to energy delivery? Real growth doesn’t simply shift market share from one business to another. It is driven by expansion into new and untapped markets, innovation, providing solutions to help meet people’s changing needs and aspirations. Inclusive growth shares the benefits by combining expansion in business output with improvements in living standards and outcomes that matter for people’s quality of life (e.g. good health, jobs and skills, clean environment, community support). Responsible growth considers the impact of doing business rather than just the profits. Financial return can’t be gauged in isolation from the tax contribution, environmental and economic impact, and effect on community stability, health and prosperity. The focus on meeting short-term financial targets may obscure the underlying strengths, weaknesses and potential of

the enterprise. A long-term view is at the heart of good growth. For the energy sector this may mean working harder to ensure that technological innovation is harnessed and rewarded both in generation and distribution but also in efficient use and demand management. This growth should deliver widespread community benefits, particularly in areas where some of the impacts are more directly felt and it should be equitable over the long term. To bring this about companies will need to be able to measure, manage and report on their broader environmental, social, economic and fiscal impacts. While many are moving towards wider assessment of their impacts and improving data quality, there has been no systematic approach to compare different types of impact to inform decision-making. PwC has been working with its clients to develop a more comprehensive approach which it calls Total Impact Measurement and Management (TIMM). TIMM is intended to give companies better insight into the social, fiscal, environmental and economic impacts of their activities. Taking this approach can also help to support a business’s licence to operate. But the real benefit is that it gives management the ability to compare strategies and investment choices, using quantified data to monitor the total impact of each decision and choice they make, and to communicate this to their stakeholders. Being able to measure, understand and compare the trade-offs between different options, whether at the project or corporate level, means decisions can be made with more complete knowledge of the overall impact they will have and a better understanding of which stakeholders will be affected by which decisions. Governments, investors, customers and communities make different, often contradictory, demands of business. One is to provide affordable, reliable, profitable and low-carbon energy while minimising impacts on local communities and the environment. Current business models are ill-equipped to deal with these contradictions or make the difficult trade-offs needed. TIMM is a contribution to the debate on how, as a society, we manage these trade-offs. I info - november / december - 37

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Business approaches to managing corporate energy use Energy management not only makes economic sense for businesses, but also gives them a competitive edge, explains Katherine Lampen, Director Sustainability Services at Deloitte

istory may well look back at this time period as a peak moment in the rise of the energy management discipline as two driving forces aligned. First, a recession that in most people’s memories inspired an all-handson-deck mentality to cut costs, as companies intensely focused on saving money rather than investing in growth. Second, innovations in lighting, cooling, structural design, smart technologies, and other advancements, garnered attention and offered significant opportunities for savings. The result has been the majority of companies working towards goals of reducing energy consumption and the resultant emissions. Now that fears about the recession are on the decline, companies are shifting their focus back to growth. Energy management is still recognised as key to competitiveness, but companies are doing it less because they want to and more because they have to. With many of the easier energy management tactics already employed and the solutions required for future savings becoming more capital-intensive, the primary barriers to continued success against energy and resource goals are shifting. Despite mounting challenges, businesses remain committed to investing in energy management. Forward thinking organisations recognise that energy is a strategic input that can – and should – be actively managed and controlled. Energy efficiency can reduce a 38 - info - november / december

company’s cost structure, which can provide a strategic advantage over the competition. But that’s not the end of the story. Market changes, such as carbon footprint regulations and government incentives for alternative energy and conservation, will likely recast the rules. Improving your energy efficiency now can give your company a lasting edge in this new environment. Improved energy efficiency can also help keep future energy prices in check by enabling energy providers to meet market demand without having to spend a lot of money building new plants and infrastructure. Lower demand for energy can also drive down market prices, and perhaps most importantly, reduce damage to our environment. Many companies are interested in improving their energy efficiency. They just don’t know where to begin. Here are a few practical tips: • Understand your energy usage – and what drives it. One of the big challenges is that most of the systems and processes that businesses use today were designed at a time when energy was relatively cheap and efficiency wasn’t considered a big deal. As a result, they lack the means for measuring when and how energy is being used. • Start with the easy stuff: in many cases, significant savings can be achieved simply by getting people to change their behaviour. Easy improvements such as lowering the thermostat and turning off lights and other electrical equipment that is not being used can reduce a company’s energy costs in many ways, including costs avoided, monetary savings, and by emissions reductions to name only a few. • Develop a compelling business case: capital investments may require greater justification. However, in most situations, it’s not hard to make the case for change. For example, many efficiency projects can be justified based entirely on the energy savings in the data centre. • Establish the right metrics: demonstrating the actual, realised benefits of an energy efficiency initiative can be a big challenge. The benefits can be significant and real, but often get lost in the shuffle. For example, if a company improves its energy efficiency while at the same time scaling back the workforce and overall production levels, how much of the energy savings is from efficiency versus reduced business volume? When all is said and done, there is little or no downside to improving energy efficiency. It just takes commitment and effort. The sooner companies start this journey, the sooner they can reap the benefits. I

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Using the forces of nature to support UK electricity supply Steve Riley, CEO & President of GDF SUEZ Energy UK-Europe describes the role of hydro pumped storage plants

he future UK electricity market will be more complex with large, inflexible nuclear plants and intermittent renewables prominent in the generation mix. Against this backdrop, there is a need for energy storage to help ensure system security. First Hydro Company, one of GDF SUEZ’s key assets in the UK, helps meet this challenge. It is a unique facility responsible for the operation of the hydro pumped storage plants at Dinorwig and Ffestiniog in the Snowdonia region of Wales. With a combined capacity of 2,088 MW these two power stations play a key role in the UK’s electricity supply. Pumped storage plants combine the forces of nature with outstanding technical engineering to produce electricity. The principle is very simple: electricity is generated by water being released from an upper reservoir and the falling water is used to drive turbines, which power generators to create electricity. The used water is captured in the lower reservoir and pumped back overnight into the upper reservoirs to be stored until required again. Dinorwig and Ffestiniog can provide a rapid and reliable supply of energy in the event of surges in demand or unplanned loss of power to the grid. The 1,728 MW Dinorwig plant is amongst the largest in Europe and capable of reaching maximum generation capacity in just 16 seconds. Ffestiniog, the UK’s first major pumped storage plant commissioned in 1963, has a capacity of 360 MW and can produce enough electricity to supply the entire power needs of North Wales for several hours. The two plants not only use the natural resources and topography for power generation but were also specifically designed to blend in with their environments to ensure minimal visual impact. When commissioned in 1984, Dinorwig was regarded as one of the world’s most imaginative engineering and environmental projects with 16 kilometres of underground tunnels and six powerful generating units in Europe’s largest man-made cavern. The company has a strong commitment to environmental protection and the reservoirs were also carefully structured

Dinorwig Power Station

and now help to manage flood water draining into local rivers. Dinorwig and Ffestiniog are also important in a social context as they provide local employment and skills. The Electric Mountain Visitor Centre at Dinorwig,welcomesover200,000visitors a year with a particular focus on school visits, providing pupils with insight into how technology and the environment can be combined to produce electricity. These pumped storage power stations, which can operate for the best part of a century, are some of the UK electricity sector’s most valuable assets, and will remain so for decades to come. I

Opportunities from on-site generation UK businesses are looking at a whole host of measures in order to manage their energy costs, from improving energy management and energy efficiency, to participating in income-generating load-management schemes or even generating their own electricity. GDF SUEZ is seeing electricity generation plants being installed by businesses in all sectors, from water companies to chemical and horticultural businesses. This can reduce these businesses reliance on imported energy, it can reduce their carbon footprint, and it can provide an extra income stream if they sell surplus

energy or environmental certificates to the market. Having a generation plant on site also opens up opportunities to participate in the commercial loadmanagement services required by National Grid to keep supply and demand in balance across its network. Participants in the Short-Term Operating Reserve scheme, for example, start up their standby generation (or reduce consumption) upon instruction from National Grid. Businesses are paid for participating in the scheme and receive additional payments every time they are called on to load manage. I

info - november / december - 39

focus Part two: How can the UK meet its energy challenges?

Nuclear power: the next generation An important component of the UK energy mix, nuclear power is a reliable, low carbon energy, but future needs demand significant infrastructure investment. Richard Mayson, EDF Energy’s Director of Project Development, Nuclear New Build, explains

to plug the energy gap in the near term while longer term solutions are found. The UK needs to invest £110 billion in our energy infrastructure and failure to invest now will lead to an increased dependence on imported fossil fuels, which are subject to volatile price spikes and security of supply issues and will do nothing to reduce our carbon emissions. There is now a clear consensus among politicians and support from the public for low carbon nuclear energy to play a key part in meeting this need. It offers a secure and predictable supply and at the same time offers enormous economic benefits for industry and in creating jobs and skills. That is why the Government’s national policy statements clearly stated the need for new nuclear build, and the industry has outlined plans for up to 16GW of new capacity. The construction of low carbon generation will also bring vast benefits to the UK economy. A report published last year by the Institute for Public Policy research report (IPPR) estimated that nuclear new build could boost GDP by up to 0.34% per year – equivalent to £5.1 billion in 2011 – for 15 years. The Electricity Market Reform (EMR) proposals at the heart of the Energy Bill currently going through Parliament are intended to provide the economic and commercial framework to attract investment in a range of low carbon technologies, including nuclear. These proposals represent the most far reaching changes to our electricity sector for the past two decades. I

photo courtesy of EDF Energy

ritain was a pioneer in nuclear power generation with the first commercial reactor beginning operation in 1956. Now the country’s 16 reactors provide safe and reliable low carbon power, supplying around 20% of the nation’s electricity. Nuclear power generation produces negligible carbon dioxide and independent studies have shown that the full lifecycle carbon emissions of nuclear energy (which include construction, uranium mining, milling and enrichment, fuel fabrication as well as decommissioning) are a fraction of those for fossil fuels and much the same as those of wind. The power generated by existing power stations avoids the emissions of 40 million tonnes of carbon dioxide a year – the equivalent of taking nearly half of Britain’s cars off the road. However, as our energy infrastructure ages and many existing conventional and nuclear power stations come to the end of their lives, the country needs to build new generating capacity. At the same time, the UK government has pledged to reduce greenhouse gas emissions by 80% by 2050, even as it suggests that electricity demand may double by the same date. The world’s leading nuclear power plant operator is the French EDF Group and its UK arm EDF Energy operates 15 of the UK’s reactors. The combination of British and French expertise and investment means the existing stations are recording some of their best output figures for many years and life extensions have been announced for a number of sites. This is helping

Sizewell B power station

40 - info - november / december

photo courtesy of EDF Energy

Hinkley Point B power station

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It is hard to discuss the Hinkley Point C project in Somerset without using some impressive numbers. Its construction will use enough steel to build a railway track from London to Rome. The amount of concrete used is 75 times greater than was used in building the Millennium Stadium in Cardiff and it will power five million homes, producing around 7% of the UK’s total electricity for many decades to come. Then there’s the economic impact. The construction will provide employment opportunities for 25,000 people, leaving 900 permanent jobs when the station is operational. Over the entire operational life of the project, £2 billion will flow into the regional economy alone. The project is the first large power station to be developed under a new planning regime for major infrastructure projects in the UK. A thorough planning process took place, leading to permission to construct being granted earlier this year. This was preceded by one of the largest public consultations of its kind. Over a three-year period the company was in contact with 6,500 consultees, held 34 public exhibitions and 67 meetings with local authorities and other stakeholder groups. There were 109,000 visitors to its project website. Special focus groups targeted people, including the elderly, so that the widest range of voices was heard and not just those people who actively came forward. By the time EDF Energy submitted its planning application, it had logged, studied and responded to each one of tens of thousands of individual comments. This has helped the project team address issues like community benefits and to mitigate concerns over housing and transport. With development consent now granted, along with formal approval of the EPR reactor design and the granting of a nuclear site licence, many of the pieces are in place which makes the project ready for delivery. This depends on a final decision to invest being made by EDF Energy. That must be preceded by a contract being agreed with the UK Government for the electricity from Hinkley Point C. The project is about more than just building a nuclear power station. It is pioneering work that will transform an entire industry and reshape the UK’s energy landscape. A massive amount of preparatory work has to be done even before the first concrete is poured. Key to the success of this project will be ensuring that the necessary skills and supply chain

Case study of Hinkley Point C

An artist’s impression of Hinkley Point C

are in place. As well as talking and listening to local communities to better understand their needs and concerns, EDF Energy has been working hard to make sure that companies are ready to help us build the power station. Extensive work has taken place to make sure that local and British companies can play the biggest possible part in the work often by forming new alliances with French companies which have world-leading nuclear expertise. Over the course of the past four years, EDF Energy has held numerous events across the UK to ensure potential suppliers know what opportunities are open to them, and in turn what is expected of them. The skills and jobs benefits will be considerable and the skills learned at Hinkley Point C will enable British and French firms to win nuclear contracts around the world and for designers and engineers to tackle future major infrastructure projects. In December 2011, EDF Energy announced a £15 million investment to establish a world class national training centre in partnership with Bridgwater College in Somerset for site workers and company employees. The centre will address potential skills shortages in the energy sector by delivering professional training. It will provide opportunities for people living near the power station to gain new skills which could last a lifetime. This is in addition to an existing commitment to invest £6 million in colleges in Somerset. EDF Energy is working with its suppliers and skills bodies to identify any skills gaps early so that the right training takes place and the right people with the right skills are ready in time. It’s a project that will start only when it is sure it won’t have to stop through to the end of construction. Fortunately many of the vital building blocks to make this a reality are already in place. I

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A guide to UK gas trading Gas trading is a vital process in getting gas from the point of production to the consumer. Edouard de Guitaut, Co-founder of energy-future.com, clarifies the complexities

ow do methane molecules produced in Russia, Norway or North Africa find their way into power stations and homes in the UK? The simple answer is pipelines and liquefied natural gas (LNG). The reality, of course, is much more complex. There aren’t just a few pipelines: there’s a labyrinthine network of them, operating at different pressures, crossing borders and feeding different parts of the market, from domestic consumers to factories and power stations. A growing number of LNG-import terminals, meanwhile, are bringing in gas from North Africa and the Middle East or storing UK gas produced during the off-peak summer months for use in winter. And when the shalegas revolution (see box) hits the UK, another layer of complexity will be added to trade flows. Then there are gas-treatment facilities to clean the gas up and pumping stations to keep it moving to wherever it’s needed. Companies that operate the network need to know how much gas is in a pipeline at any given time, who put it in there, where it’s flowing and who’s taking it out. Traders need to know about volumes and flows too; and they need to know – or predict – who needs what and when. In the simplest terms, the aim is to purchase a commodity at one price and sell it at a higher price hours, days, months or even years later. Between production and delivery, gas is typically traded about eight times. Sometimes more. And trading strategies will often change right up until the gas is due to be delivered. When physical delivery becomes imminent, the gas trader – perhaps an energy producer like Total, a supplier like Centrica or a hedge fund taking a speculative financial position in commodities – directs the grid operator to flow the right amount of gas to the right place at the right time. A European trader might, for example, spot an attractive spread between prices in the UK and in an overseas market: if French consumers were paying more for their gas than the combined cost of purchasing gas in the UK and piping it through one of the links to mainland Europe, it might be worth sending volumes east across the North Sea to Belgium and from there through the pipeline network to France. Or perhaps the weather’s about to turn cold: even a one-degree change in temperatures can have gas prices zig-zagging all over the charts. In early 2006, for example, a fire at the North Sea’s Rough field, a depleted offshore gas reservoir that now 42 - info - november / december

serves as the UK’s main gas storage facility, knocked out much of the country’s storage capacity. That, combined with a cold snap, caused prices to quadruple in less than a week. Even scheduled maintenance outages can affect prices. The Interconnector (a big natural gas pipeline connecting the UK with mainland Europe) shuts down for two weeks in the summer, changing the dynamics of how consumers receive their gas. The secret is second-guessing, ahead of the competition, how events such as these will affect gas supply and demand. Remembering to balance the books is essential too: traders are obliged to put into a gas system the same amount of gas that they take out. If the grid operator has to top up on their behalf, the trader has been ‘cashed out’, which is as expensive as it sounds. I

Shale gas in the UK The UK’s shale gas resources could be large enough to reduce the country’s reliance on energy imports and lower domestic gas prices. Investigations into the location, depth and properties of northern England’s extensive shales are at an early stage, but the signs are promising. The British Geological Survey has estimated that gas-in-place in central England’s Bowland Basin could amount to between 822 and 2,281 trillion cubic feet. That could make a substantial addition to the UK’s proved gas reserves, which, at present, are around 8.7 trillion cubic feet. Yet there are considerable doubts both over the size of the resource and the industry’s ability to develop it. Despite the optimism of companies operating in the region, how much will be commercially produceable remains uncertain. The industry will also have to overcome significant social and environmental barriers, particularly public perception of the risks involved in hydraulic fracturing. As a result, development at scale is likely to be a slow process. However, with the right policies and careful environmental stewardship, shale gas has the potential to become an important indigenous source of gas, helping to stem the decline in domestic output over the next two decades. I

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Warmth from waste: the heat is on Imagine if your unrecyclable rubbish could light and heat your home, efficiently and cheaply. It’s already happening in London. Estelle Brachlianoff, Veolia Environnement Executive VicePresident – UK and Northern Europe, takes up the story

ouldn’t it be wonderful if the unrecyclable rubbish from your home couldn’t just be converted into electricity to keep your lights on, but the heat for your radiators and hot water for your bath too? And what if the scheme reduced your heating bills at a time when energy costs are rising and helped protect the environment by reducing carbon emissions at the same time? Well this WIN-WIN-WIN is happening right now, in the heart of London, for the first time. It’s been made possible by a partnership between the London Borough of Southwark and Veolia Environmental Services. District heating is popular in some cities in mainland Europe, but relatively untapped here in the UK. Veolia has operated a network in Sheffield on behalf of Sheffield City Council since 2004, but following the arrival of district heating in London there seems to be real momentum behind this approach.

Energy Recovery Facility in South East London. SELCHP, like all Veolia’s seven Energy Recovery Facilities in the UK, was built with the capacity to add district heating if demand became available. Following a £7 million investment by Veolia Environmental Services and SELCHP Limited, the site will heat 2,500 homes on five estates in Rotherhithe and continue to provide electricity for the National Grid. As a result the existing gas boilers on the estates will be switched off, saving 8,000 tonnes of carbon dioxide emissions a year.

Government backing The good news is future district heating schemes are now being encouraged with Government funding. The Department for Energy and Climate Change has just announced £6 million in grant funding to develop new and existing district heating networks with the funds to be allocated over the next 18 months. The Southwark story Importantly, the Mayor of London, Boris Johnson, What makes the developments at Southwark so exciting has also voiced his support: ‘It is fantastic that SELCHP is its potential for the UK. Unrecyclable waste processed will soon be providing low carbon, low cost heating via Mechanical Biological Treatment (MBT) at the to homes in South East London through a new heat Integrated Waste Management Facility on the Old Kent network, something I am working hard to encourage Road is being converted into fuel for the nearby South more of across the capital to provide London with a East London Combined Heat and Power (SELCHP) more secure, sustainable, cost-effective energy supply.’ Overall, energy from waste has the capacity to make a significant contribution to renewable energy generation – with the potential to contribute up to 10% of renewable 1 6 electricity supplies – about 3% District heating by numbers of total electricity demand. The £7 million electricity produced from our 8,000 tonnes seven energy recovery facilities is 5 Southwark 2,500 2 sufficient to power almost 200,000 District Heating UK homes. Process 1-2 weeks However the fact that Veolia now operates two of the UK’s 1.2 miles 3 major district heating schemes 2 miles powered by these facilities, with 4 the opportunity for more, suggests that an exciting new source of low carbon energy is being pioneered in www.veolia.co.uk/southwark www.southwark.gov.uk/recycle the UK and is a perfect example of the circular economy in action. I Hot water is piped to Southwark homes near SELCHP

Black bags of refuse are collected from Southwark homes

investment in the project

of CO2 saved every year

Energy recovered by burning the fuel is used to heat water. The rest of the energy in the fuel is made into electricity and exported to the National Grid where it powers homes and businesses

Black bags are taken to the Southwark Integrated Waste Management Facility

Southwark homes benefit from secure, sustainable long term heat

is the time needed to turn the black bag waste into fuel for energy recovery

Recyclables are extracted from black bag waste

Fuel is taken to SELCHP (South East London Combined Heat and Power)

Remaining black bag waste is decomposed to create a fuel for energy recovery

is the distance from Southwark IWMF to the SELCHP ERF

is the length of the pipe network that is used to transport hot water to homes

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The UK’s renewable energy landscape A ‘second industrial revolution’ is taking place in the UK today, as renewable energy technologies are being developed and implemented to achieve a 15% target by 2020. Stuart Yellowlees, Head of Energy, Industry & Life Sciences at Altran UK gives an overview

ind farms have become a familiar sight to residents of the UK, with over 4,000 onshore turbines and over 1,000 offshore turbines installed and operational. These technologies are at the cutting edge of innovation, and the most obvious sign that renewables are starting to feature more prominently in the UK’s overall energy mix. Wind is by no means the only source of renewable energy in the UK, however. The contributions being made by other technologies are also becoming more significant, and cutting-edge wave and tidal technologies are being developed to harness the sea as a future energy source. The transition to a lower carbon energy generation mix, not just in the UK but throughout the EU and beyond, is being driven by three key factors: a range of UK and EU legislation that requires energy companies

operating in the UK to reduce their greenhouse gas emissions and to increase the amount of energy they generate from renewable sources; a greater focus among governments and energy companies alike on environmental issues; and an increase in demand from consumers for greener energy. The EU Renewable Energy Directive 2009 established a legally binding obligation for renewable energy to account for 15% of the UK’s overall energy consumption in 2020. Despite the scale of the challenge and the difficult economic conditions which have prevailed in recent years, steady progress has been made towards achieving this bold objective, enabled in large part by the development of ever more impressive and reliable renewable energy technologies. According to the Department of Energy and

The sun provides the basis for life on earth and delivers sufficient energy to meet all our needs – if we could tap it efficiently. Historically human beings have tried to do that via agriculture, using wood as fuel and indirect solar energy, represented by winds and streams. More recently we’ve used the stored solar energy of fossil fuels. But it may be that we can make use of the sun more directly. Recent years have seen large scale experiments with solar power, for example via giant solar heat concentrating mirrors and dishes, tracking the sun across the sky and focusing its rays so as to raise stream for electricity generation. Large scale ‘solar thermal’ plants like this are increasingly popular in desert areas of the USA and elsewhere. But solar energy can also be utilised on a smaller scale, and even in cooler climates like the UK. In April 2010, the UK Government agreed to pay for all grid-connected generated electricity at an initial rate of up to 41.3p per kW/h, whether used locally or exported. The rates proved more attractive than necessary, and in August 2011, were drastically reduced for installations over 50kw. Reaching the unofficial 20-GW-by-2020 target remains dependent on this cross-party alliance holding rank and creating suitable framework policies within which the broader domestic photovoltaic (PV) industry can operate with confidence. The UK has now emerged as a leading solar PV candidate within a high-growth global energy segment. The 802MW of new solar PV installed during H1 2013 has elevated it to the sixth largest country in the

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Solar power

world for new solar PV capacity. While year-on-year growth remains aggressive, continued adjustments within government policies are essential to sustain the domestic sector against the backdrop of a highly dynamic global PV industry, including recent trade cases that have changed the supply landscape considerably. I Valentin Bouillard, Engineer - Export Manager, Faseo Energy

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Climate Change,* renewable sources provided 11.3% of the total electricity generated in the UK during 2012. In capacity terms, onshore wind continued to be the leading individual technology for the generation of electricity from renewable sources during 2012, with 29% of renewables generation coming from this source.A further 18% came from offshore wind, and 13% from hydro. The combined generation from the variety of different bioenergy sources accounted for 37% of renewable generation, with landfill gas accounting for one-third of the bioenergy generation (and 12% of all renewable generation). The remaining 3% of renewable generation came from solar photovoltaics. In the coming decade, offshore wind will certainly become a far bigger contributor to the UK’s renewables mix and, indeed, overall energy mix. At the end of 2009, total offshore wind installed capacity was 1GW. Rounds One and Two of offshore development overseen by the Crown Estate should provide 7GW capacity and Round Three should provide a further 32GW. The UK is leading the way in wind farm development, and the scale of the Round 3 offshore programme presents British engineering and supply chain companies with a terrific opportunity to

enhance their reputation globally. Many hundreds of turbines are due to be installed in each of the nine offshore development zones. Development on such a large scale over a short period of time is dependent upon first-class technological support throughout the lifecycle of these major projects, from design and engineering through to operation and maintenance. At the other end of the spectrum, cutting-edge wave and tidal energy technologies have been in development for some time, and the UK is set to lead the world by installing the first wave and tidal energy farms, known as arrays. This complex engineering challenge will require considerable support from British companies. The UK is well on track to achieve, and almost certainly exceed, its challenging renewable energy objectives. The scale and speed of technological innovation involved in this process have led some commentators to describe what is currently happening in the renewable energy sector as ‘the second industrial revolution’. I suspect that Brunel and the other great innovators who played such a pivotal role in the first such revolution would have welcomed the chance to be part of this latest chapter in British engineering. I * http://restats.decc.gov.uk/cms/national-renewables-statistics/

The recently completed Teesside Offshore Windfarm is EDF Energy Renewables’ first offshore wind project in the UK. Located in the North Sea, 1.5 kilometres off the coastal town of Redcar, its 27 turbines will produce enough low carbon electricity to supply the annual needs of approximately 40,000 homes. The 62MW project is the first UK offshore wind farm to be developed solely by EDF Group companies and its completion is an important step in establishing EDF Group’s credentials in the offshore wind energy industry. EDF Energy Renewables, which oversaw the development and construction, and will operate the wind farm, is a 50:50 joint venture between EDF Energy and EDF Energies Nouvelles. This joint venture combines its parent companies’ renewable energy development skills, expertise and resources in one place to spearhead EDF Group’s renewables development activities in the UK. As well as the installation of the turbines, measuring 80m from sea level to hub height, the project has also involved the construction of a new onshore 33/66kV substation, connected to the wind turbines by buried subsea cables. With the completion of construction, a dedicated support team will now be responsible for the ongoing operation and maintenance of the wind farm. The new team, comprising both EDF Energy Renewables engineers and workers from turbine manufacturers Siemens, will be

Courtesy of EDF Energy Renewables

Teesside Offshore Wind Farm case study

Teesside Offshore Windfarm under construction

based at the nearby Port of Hartlepool. In the past 18 months EDF Energy Renewables’ build programme has seen the company double its capacity. The company now has a total installed renewable capacity of over 500MW of across 25 operational wind farms. I Olivier Didry, Offshore Wind Project Director, EDF Energy Renewables

info - november / december - 45

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Sailing into deeper waters: overcoming the obstacles for offshore wind Optimal conditions and government support made the UK a world leader in offshore wind, but tighter budgets and proposed changes to subsidies are threatening the momentum for requisite investment in the next round, warns Stephen Burgin, vice president of sales in Northern and Central Europe for Alstom

he offshore wind market is an exciting which is owned and operated by DONG Energy, E.ON opportunity for industry to make investments in and Masdar, is the world’s largest offshore wind Britain that will lead to greater skills and jobs whilst farm, located between the Kent and Essex coasts, helping us to achieve our green credentials. and features 175 wind turbines producing 630 MW Being both an island and also somewhat windy, (or enough to power 490,000 homes a year). But the UK has always appeared to be the perfect place for the London Array will be dwarfed by some of the offshore wind farms, and, in fact, the first development proposed Round Three offshore wind farms, with was over a decade ago with the two turbines located Dogger Bank due to be 10 times bigger than the just offshore of Blyth in Northumberland. current largest offshore wind farm, being rated at an Despite that relatively early start, the country estimated 9,000 to 12,800 MW, and East Anglia at an lagged behind others – most notably Denmark – for equally massive 7,200 MW. a number of years as the Government launched Despite this, development of offshore wind a number of offshore wind ‘rounds’ to encourage has been slowing in recent years as investment development, initially with the backing of subsidies budgets have tightened due to the global recession. in the form of Renewable Obligation Certificates, In addition, the UK Government is changing the or ROCs. These certificates had to be presented way that it offers subsidies to offshore wind farms, by companies that sold power to customers in leading to lower levels of support and prompting the increasing amounts, so encouraging the companies Committee on Climate Change to warn Secretary themselves, and others, to build renewable power of State for Energy and Climate Change Ed Davey generation. that ‘required investment is at risk under current A combination of good proposals’. conditions (again, being an The position going island there is no shortage forward is somewhat The UK... now has the same amount of worthwhile sites for uncertain, although offshore of capacity installed as the rest of the offshore wind in the UK) wind farms continue to world combined and government support has be built in the UK, with a led to the UK becoming the number, such as West of world leader in offshore wind. From around 2008, the Duddon Sands, currently in construction. What country has overtaken those who took an early lead is important is that we kick start the Round Three and now has the same amount of capacity installed developments because they require most capital as the rest of the world combined. outlay being further offshore. In addition to that, wind farms are growing Today we do have challenges with costs and risk. bigger and ever more powerful. The development at Those challenges can be resolved with time as we Blyth, just two turbines (with an output of 4 MW), build up volumes and expertise. The real challenge led to the Round One wind farms that featured 30 is to achieve the tipping point to encourage the turbines, and then Round Two and Round Three necessary investment whilst protecting taxpayer that were considerably bigger. The London Array, value for money. I

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Offshore wind investment The UK is a world leader in offshore wind, with more capacity installed than any other nation. Its island status, strong and consistent winds, and large areas of shallow waters, has made it the global leader. But strong manufacturing bases in Northern European countries mean that many of the components of offshore wind farms are made abroad and shipped to the UK, adding logistical costs, damaging the UKâ&#x20AC;&#x2122;s balance of payments, and diminishing local economic benefit in the UK. The Government is committed to working with industry to build a competitive and innovative supply chain in the UK, to boost employment and support a cost-effective low carbon economy. To significantly increase foreign direct investment in offshore wind, the Business and Energy Minister, Michael Fallon, announced in

the summer the creation of an Offshore Wind Investment Organisation by UK Trade & Investment. It will be led by a senior industry figure and provide information and support to supply chain companies looking to enter or expand in the UK. The Offshore Wind Investment Organisation adds to the existing work of UK Trade & Investment to actively support existing investors to win new business in the UK and attract new investors to benefit from operating in the UK. Energy companies are a priority with a dedicated team designed to draw financial investment from overseas sovereign wealth and pension funds into the UKâ&#x20AC;&#x2122;s infrastructure. The energy sector is one of the biggest recipients of that finance. I For more information, visit www.ukti.gov.uk.

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Tidal energy: rising tides for marine power Tidal energy has many attributes as a reliable, predictable, renewable and clean energy source. the challenge lies in developing reliable technology to generate it in a commercially viable way. Rob Stevenson, Vice-president, Ocean Energy for Alstom, gives an overview of this nascent technology

idal power is a major growth area for renewable energy around the world, with a global potential of up to 100GW of installed capacity. Tidal power has the potential to contribute significantly to the future energy mix of many countries wanting to benefit from renewable, low carbon forms of electricity generation. Tidal energy can be harnessed in two ways. Tidal range technology uses a barrage to draw on the power of the water as it changes height between high tide and low tide – in a similar way to a hydroelectric Alstom’s 1MWe turbine at EMEC is part of the Energy Technology Institute’s system. Tidal stream technology (or ReDAPT programme marine current) draws on the power of fast currents caused by tides flowing around headlands electricity generating equipment in the main nacelle, or through channels. Both offer the same benefits: with the electricity generated by the turbine exported to • It is reliable and predictable well into the future; shore via an undersea cable. • Water is 800 times denser than air, which gives it One of the main selling points is that the turbine huge potential for power extraction; and can be rapidly installed or uninstalled, so maximising • It is a renewable energy source with no harmful the amount of time it spends producing electricity and greenhouse gas emissions. minimising the cost of deployment and maintenance. This is achieved by the fact that the turbine floats, so it The challenge for the emerging tidal stream power can be towed to its point of operation and, once on site, generation industry over the next decade is to increase it can be winched down to its seabed support structure the scale of devices, prove their reliability, demonstrate where it is locked in place. That means there is no need environmental acceptability and reduce the costs of the for heavy-lift vessels or divers, so reducing costs. technology to ensure electricity can be generated at a Most recently, Alstom has signed a Memorandum commercially competitive price. of Understanding with ScottishPower Renewables Alstom is developing a tidal stream turbine to incorporate Alstom’s tidal devices into the Sound competition through its dedicated teams in Nantes of Islay project. The tidal array, between the islands and in Bristol. The turbine is currently on test at the of Islay and Jura on the west coast of Scotland, will European Marine Energy Centre on Orkney where the include up to four of Alstom’s 1MW tidal devices. The latest 1MW model is currently generating. new development is expected to result in the Sound of Alstom’s turbine almost looks like an underwater Islay project becoming one of the largest tidal arrays in wind turbine – it is three-bladed, with the turbine the world, capable of generating up 10MW of electricity able to turn with the tides, so ensuring it is able to when fully operational. The Islay programme remains face directly into the tidal flow in the same way that on schedule for the first unit to be deployed in late 2015, wind turbines turn into the wind. The turbine has its with full site deployment during 2016. I 48 - info - november / december

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Bioenergy: exploring UK’s naturally renewable potential Largely produced by nature, biomass is biological material that can be used as fuel in the bioenergy sector. Straw, sugar cane and traditional biomass such as wood chips are all an almost inexhaustible source of fuel. The biomass available in Europe is mainly fresh and waste wood. AREVA is a major player in the global nuclear power industry, but is also an established engineering expert in the bioenergy market: its activities cover the design and construction of low-carbon biomass plants. The group is also currently developing a commercial offer for torrefaction units able to produce torrefied biomass (also called biocoal). AREVA has the world’s largest biomass installed base with more than 2,500MW and 100 plants delivered in Europe, South America and Asia. In France, Areva completed the construction of a biomass co-generation power plant* in Pierrelatte last year and has begun construction of a second one in Commentry. A biomass plant in The Netherlands has just been finalised and once in operation, it will supply enough electricity to meet the needs of 120,000 households. One of the first steps in expanding the share of biomass in the renewable energies mix in Europe will be to implement biomass torrefaction technology. Co-firing (simultaneous combustion of two materials) of biocoal in existing coal plants is an economic and efficient option for European countries to reach 2020 renewable energy targets, and is one of the technologies the UK government recently chose to focus on.

The benefits of biomass in the UK Bioenergy has the potential to provide almost a third of the UK’s 15% target for renewable sources of energy. It is therefore well positioned to play an important role in the UK’s energy mix and contribute to reaching its low carbon energy objectives. The benefits include utilising otherwise untapped organic matter, and providing jobs in rural areas, both directly and indirectly through biomass collection. The UK Bioenergy Strategy notes that ‘excluding biomass from the energy mix would significantly increase the cost of decarbonising our energy system – an increase estimated at £44 billion’. I AREVA UK

* a plant generating both electricity and heat

Wood pellets: a decentralised and green energy generation Wood pellets are to trees what petrol is to crude oil Biomass is the generic name of plants which contains a carbon chain. Pelletisation is the technological breakthrough that unleashes its potential. Wood pellet production relies upon infrastructure where fibre is dried, compressed and packaged. This new solid fuel will feed a fleet of furnaces and boilers ranging from the stove to the largest formerly coal-fired power stations. In the UK, DRAX, Eggborough, Ironbridge and Tilbury are conversions supported by the new Electricity Market Reform. Such ‘capex-light’ capacity ranks very attractively in the renewable power merit order but still requires an implicit price of CO2 well above £40 to match current grid prices. Capacity increase potential remains significant although capped by Government. Heat can also be produced on a medium or large scale through co-generation, for industrial processes and district heat networks. This growing market is being driven by the RHI (Renewable Heat Incentive) scheme in the UK. The benefits of wood pellets Enhance energy security and independence… thanks to a widespread availability of wood resources in Europe and worldwide. Wood pellets are a stable and storable product, used only when energy is needed. Contribute to a low carbon economy… by recycling carbon already present in the atmosphere. Under sustainable management, as a forest grows, the carbon produced by combustion is recaptured by trees. Deliver affordable energy to final customers … Many oil-fired boilers can be converted to pellet boilers at low cost and have low operating costs

Secure a balanced energy mix… by offering an industrial scale alternative to fossil fuels and reducing imports of foreign sources of energy. Stimulate forest development and its sustainable management… creating jobs, added value in the upstream and economic benefits for forest owners. Improve air quality… as wood pellet combustion produces less ash, dust and particulates than other sources of energy. Provide away of recycling wood from storm-damaged forests. I Amandine Boudier, Charmont Investments info - november / december - 49

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Carbon capture and storage: exploring options for the UK Competitions, pilots and significant R&D mean that the UK is on the cusp of commercially viable Carbon Capture and Storage. Stephen Burgin, vice president of sales in Northern and Central Europe for Alstom explains what’s in the pipeline

arbon capture and storage (CCS) is the process whereby the carbon dioxide (CO2) from a large emitter such as a fossil fuel power station is captured before it is released into the atmosphere. The CO2 is then transported to a storage site, normally an underground geological formation such as a disused oil field, where it is deposited to ensure that it will not be released into the atmosphere. There are three main ways of capturing carbon dioxide: 1. In post combustion capture, the CO2 is removed after the fossil fuel is burnt, with the flue gases going through a chemical process. This is well understood and is used in other industrial applications, although not at the same scale as would have to be undertaken for a large power station; 2. Pre-combustion involves coal being oxidised in (usually) a gasifier that produces a ‘syngas’ that can then be converted to hydrogen and CO2. The carbon dioxide can then be piped off to be stored while the hydrogen is used to fuel a standard gasfired power station; 3. Oxy-fuel combustion sees the fuel burned in oxygen instead of air. As a result the flue gases consist largely of pure carbon dioxide and water vapour which allows the CO2 to be piped away

for storage relatively easily. Alstom is concentrating on two of those techniques – oxy-fuel combustion and post combustion. As both of those technologies can be retrofitted onto existing power stations, Alstom believes they are a more economic option for customers than precombustion. We’re continuing our significant R&D efforts in CCS and are validating the technologies at a number of pilot and demonstration projects around the world. We are working closely with our partners towards full-scale commercialisation that will be available on the market around 2015. Before then, we are investigating the technology at a number of plants around the world, including: • Brandenburg, Germany Using an Alstom-engineered and built oxycombustion steam generator system, the Vattenfall pilot plant operates on air-firing as well as oxyfiring modes. The pilot plant, with its complete oxy-combustion process chain, is intended to validate and support the technical concept and serve as the main step towards the construction of a 200-300 MW plant, generating ‘near-zero CO2’ electricity by 2015. • Pleasant Prairie, USA We Energies’ chilled ammonia CO2 capture pilot in Wisconsin, USA went into operation in 2008. The pilot, designed to capture 15,000 metric tonnes of CO2 per year, has already logged more than 7,000 operating hours and has been subjected to 24 x 7 operations to prove its reliability. It has captured 90% of all CO2 in continuous operation at full load. In the UK, the Government is currently running a CCS competition that will eventually see a large-scale facility operational, with the carbon dioxide being piped to depleted oil fields in the North Sea. Two projects, White Rose (backed by Drax, Alstom and BOC), and Peterhead (backed by Shell and SSE) remain in the running for government funding. I

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What will the UK energy system look like when Prince George is 30? Rachel Cary, Head of Energy at environmental think-tank Green Alliance predicts what the UK could be a mere three decades into the energy revolution

n the 22 of July 2013 his Royal Highness Prince George Alexander Louis of Cambridge was born weighing 8 pounds 6 ounces. He is currently being kept warm and cosy in sleepsuits and baby blankets, but what will his world be like and what will be keeping him warm when he’s 30? The UK is at the beginning of a revolution to decarbonise its economy. One that will result in a dramatically different energy system to the one we have today. We were the first nation in the world to sign up to legally binding carbon reduction targets. By 2050 we will need to have cut our greenhouse gas emissions (GHG) by a massive 80% from 1990 levels. Getting there will involve major changes to the way we generate electricity, heat our homes and travel but it shouldn’t mean a change to our quality of life, far from it. Instead of a power system based largely on coal and gas we will need to generate the majority of our power from low carbon technologies like offshore wind and other renewable technologies. Most of the remaining fossil fuel power stations will need to have the carbon they emit captured and stored in the North Sea. Even Prince George could be playing a role himself in some way when he’s 30, generating his own low carbon electricity. His London flat could be fitted with solar panels and his country house may be host to a number of small, carefully sited, wind turbines. Currently most of our heat is produced by burning fossil fuels, with around 80% coming from natural gas alone. But, in 2043, George will live in a new light filled London flat that is so well insulated it doesn’t need space heating at all. In the summer solar thermal systems on the roof will provide hot water and the flat will be wonderfully cool as it has been cleverly designed with both natural ventilation and shading. Prince George’s previously draughty old country house will be easier to heat, helped by state-of-the-art insulation in the walls, floors and loft, triple-glazed windows and under-floor heating. The remaining heat he needs can come from an efficient electric heat pump collecting underground heat from beneath his garden. The great thing about this energy future is that people’s energy use will be so finely balanced with both their

Will charging stations have replaced fuel pumps in 2043

own self-generation and the wider electricity network that they won’t even notice. Washing machines will be able to turn on automatically, when output from solar panels is high during the day. George’s electric car will be set to charge at night when offshore wind output is high and demand across the country is low, ensuring he pays as little as possible. George’s electric heat pumps will be connected to a large water storage tank so that George doesn’t have to run his heat pump when the electricity network is stressed and conversely he can store the heat he generates when there is excess electricity available. Prince George enjoys travelling around London by foot or cycling. The large central pedestrianised areas will be safe and the air will never have been cleaner. When travelling outside zone one he can use his electric car, which can either be charged at home or at the local charging point. Hybrid cars for longer distance journeys to his country home can be fuelled either by hydrogen produced at a local wind farm or compressed biogas made from farm waste from the surrounding area. The hybrid is quiet and George can hear the sound of the countryside, something he remembers being masked by motorway noise when he was a boy. Prince George will be glad that the generations before him set the country on a path to cleaner energy sources. He enjoys living in comfortable, warm houses and can travel about as he likes without worrying about pollution. Hopefully, in 30 years we will have brought about this massive change and Prince George and his generation will be marvelling at the progress we have made. I info - november / december - 51

regions & cities

Artois: a place for ‘sustainable’ investment! services sector, which alone represents over 9,000 firms. Another strong indication of the region’s dynamism is the existence of Team², a competitive cluster described below, and five centres of excellence in logistics, plasturgy, agrifood, construction and eco-business (see below), as well as business service centres, laboratories, research centres and training centres.

Your partners in R&D in the Artois: Team²

ocated in the heart of the Nord-Pas de Calais region, itself ideally situated at the crossroads of no less than five European capitals, the Artois also has excellent communications networks. Not only is it crossed by four motorways, it also has canal links. For air travel, the LilleLesquin airport is only 30 minutes away while RoissyCharles de Gaulle and Brussels Airports are one and a half hours away. And a TGV high speed rail link gets you to Paris from Arras, Béthune and Lens in around one hour. The Artois region has a dense and highly diversified economy. Almost 18,000 firms, employing around 175,000 people, are located in the region. Sectors such as construction, manufacturing, haulage and logistics, agri-food and business tourism are particularly well-represented in the region, along with a healthy retail trade and domestic

Designated a ‘Competitive Cluster’ in 2010, Team² is specialised in technologies for the recycling and valorisation of waste as well as the recyclability of materials and equipment. Its core purpose is to support businesses in bringing their innovation projects to fruition and to encourage new projects. It has created links with specialists and scientists to help them in this task. Each project is thus followed by a team of consultants from its early stages (financing and grants) through to realisation and the final TEAM² seal of approval. Since it was set up, this cluster has brought together the main players in industry, research and education. It has a core membership of over 100, including 60 firms and 25 research laboratories. >>> www.team2.fr

Cd2E expert centre The Cd2E which runs this expert centre for ecotechnologies and eco-enterprise is the leader in its field at a national level. In the Artois, it is the one-stop shop for businesses wishing to set up an eco-structure and develop high added-value innovative projects, to enhance the competitiveness and development of an existing ecostructure or to promote the expertise of the region’s ecobusinesses and laboratories. >>> www.cd2e.com

The Artois, in the heart of the Nord-Pas de Calais: a region where the third industrial revolution has already started! The American economist Jeremy Rifkin was asked by the Nord-Pas de Calais region to draw up a road map committing the region to the use of new energy sources. With his help, and that of his teams of international experts, the Nord-Pas de Calais region’s politicians, economists, academics and trade unions have joined forces in a strategic plan that firmly commits the region to industrial renewal – the first of its kind in France! >>> www.latroisiemerevolutionindustrielleennordpasdecalais.fr

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regions & cities

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regions & cities

Environmentally friendly business parks use of eco-friendly resources (bioclimatic design, use of eco-materials, optimised use of storm water, hygrothermal and visual comfort for its occupants, indoor air quality, etc.) It was built as part of the European program Interreg IVB REGAIN (for reducing the greenhouse effect through alternative industrial estate management in north western Europe).

A great place to live

Business parks

With 132 business parks, both large and small, either directly linked to the motorway network or serving some of the more rural areas, the Artois offers a wide choice of available locations and greenfield sites. Some of them are ISO 14001 accredited. The importance given by our local business stakeholders to the need to develop ecological business parks or industrial buildings is shown in many ways. Here are some examples illustrating their commitment: • Located in the village of Tinques, in the heart of the Artois countryside, the Ecopolis business park has been labelled a Rural Centre of Excellence for its ‘smart and sustainable buildings’. This business park aims to favour the development of local businesses in new markets related to eco-construction, energy efficiency and the intelligent management of buildings. Its 13 hectares are mainly directed at industries or businesses working in eco-construction (or developing into these new markets). The buildings already erected on this site all meet High Environmental Quality standards. • With its twin slag heaps, an iconic symbol of the Lens area and the former mining basin, the 11/19 base in Loos-en-Gohelle is a perfect example of how an industrial wasteland has been reclaimed for other purposes. Still used for the mining industry as recently as 1986, it is now a reference site for sustainable development and the dissemination of culture in the region. The 1,800 square metres of buildings have been rehabilitated according to high environmental quality standards (ground-coupled heat exchanger, photovoltaic sensors, systems for managing the water supply, natural lighting, etc.) for use as business premises and already house some organisations dedicated to green industries. • The REGAIN building, in the Artois-Flandres industrial zone in Douvrin (one of the largest industrial areas in the Pas-deCalais, totalling 460 hectares) is one of the first low energy buildings north of Paris to provide premises for businesses. It was designed according to high environmental standards for energy efficiency and The REGAIN building 54 - info - november / december

Contrary to the clichés commonly associated with the Nord-Pas de Calais region, the Artois has many assets which make it a great place to live. Just ask one of the many foreign investors who have

chosen to locate their businesses here! In addition to its stunning architecture (the belfry and citadelle of Arras are UNESCO-listed heritage buildings), the region boasts some major sports venues such as the Bollaert stadium in Lens and the covered stadium in Liévin, enviable golf courses in Anzin-St-Aubin and Olhain, the Canadian memorial in Vimy and the Notre Dame de Lorette necropolis, Arras Fine-Arts Museum, the wonderful Louvre-Lens or the Michelinstarred restaurant of the Château de Beaulieu in Busnes. There is no end to the delights the Artois has to offer! Its massive appeal is illustrated by the many French and foreign tourists that flock there all year round. They include many British, Belgian, Dutch, German, Australian and New Zealand visitors seeking to follow one of the four ‘trails in memory of the Great War in the Nord-Pas de Calais’.

regions & cities

Not to be missed!

The Arras International Film Festival. A week devoted to France’s seventh art, with previews of French and international films, tributes and retrospectives, European discoveries, film festival for kids, etc. Some prestigious guests can also be spotted at the festival. The 2013 edition takes place from 8 to 17 November. >>> www.arrasfilmfestival.com The Louvre-Lens, showing a selection of the Parisian museum’s finest pieces. Opened in December 2012, this satellite version of its famous parent has already overtaken the numbers of visitors predicted for its first year (70,000 visitors). >>> www.louvrelens.fr

The Main Square Festival, three days of pop and rock in a stunning setting: the place d’Armes of the Arras Citadelle (UNESCO World Heritage Sites). >>> www.mainsquarefestival.fr

Invest in Artois: Who are we? We are a group of partners who have joined forces to help you with your project: a dedicated team of six people from the Artois Chamber of Commerce and Industry working hand in hand with the region’s main intercommunal structures (communautés de communes and communautés d’agglomération). We all share a common goal: to provide businesses with the best possible conditions to ensure the success of their

Memorials to two world wars (military cemeteries, memorials and vestiges) are to be found all over the NordPas de Calais region and especially in the Artois area. >>> www.cheminsdememoire-nordpasdecalais.fr

relocation projects by involving all the players concerned with economic development and employment in all projects that are likely to generate jobs and added value. I Come and see us at POLLUTEC 2013, the international cleantech, energy and sustainable development show, 3-6 December at Paris Nord-Villepinte. Contact us for an appointment at Tel: + 00 (0) 3 21 64 64 97 or Email: contact@invest-artois.com

info - november / december - 55

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UHGHÀQLQJ / healthcare

Compiled by Paul-Gilbert Colletaz

The RIBA Stirling Prize ||| Now in its 18th year, the Royal Institute of British Architects (RIBA) Stirling Prize, named after James Stirling who designed the Seeley Historical Library of the University of Cambridge, is not merely a beauty pageant; the judges look for original, imaginative and well-executed designs that stand out for their functionality. Previous winners of the prize include the Evelyn Grace School by Zaha Hadid, 30 St Mary Axe (the ‘Gherkin’) by Foster and Partners and the Scottish Parliament building by RMJM and EMBT architects. This year’s shortlist included: • The University of Limerick whose two new sturdy buildings by Grafton Architects convey an imposing feel despite their modest size. • The block of flats from the 1950s redeveloped by Hawkins/Brown with Studio Egret West in Park Hill, Sheffield. • Newhall Be: an eighty-four-unit scheme in Essex. Alison Brooks Architects’s reply to the British housing crisis? • Undisruptive of its awe-inspiring landscape is the Giant’s Causeway Visitor Centre built by Heneghan Peng Architects. • Niall McLaughlin Architects’s uplifting work: the Bishop Edward King Chapel which was built to serve a theological college and a small religious order of nuns.

Giant’s Causeway Visitor Centre

But the winner was Astley Castle in Warwickshire. In this project, Witherford Watson Mann Architects worked on the ruins of a 12th-century manor house and turned it into a holiday residence for the Landmark Trust. The beautifully crafted building shows how bringing together ruins and contemporary design can lead to graceful results. I Newhall Be

University of Limerick

The winning Astley Castle - a graceful union of ruins and contemporary design

Bishop Edward King Chapel

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w h at ’ s o n design museum

Hello, my name is Paul Smith

Paul Smith was born in Beeston, Nottinghamshire, in 1946 and started working in a local clothing warehouse in Nottingham’s Lace District at the age of 16 before opening his first shop in 1979. This exhibition explores the world of the fashion designer and the development of his company from its beginnings in Nottingham to its global prominence today. The different stages of design and production are studied through collections selected by Paul himself, and his first shop, which measured 3m by 3m, is recreated. Commentaries by the famous designer give incredible insights into

his world. I 15 November – 9 March. Open daily 10am5.45pm. Full price: £11.75

h e r m è s , b o n d s t r e e t, l o n d o n

Petit h temporary sale A series of objects made thanks to discarded Hermès materials and designed by Pascale Mussard – a member of the sixth generation of the Hermès family – will be shown from 20 November until 7 December in the Hermès store on Bond Street. Designed and conceived in the Petit h workshop of Hermès in Paris, each object is the result of the collaboration between a chosen artist and a Hermès craftsperson. The Hermès touch, characterised by creativity, wit and functionality, is clearly visible through the objects created by the French company especially for this event. I 20 November – 7 December. Open daily 10am-6pm except Sundays

n at i o n a l p o r t r a i t g a l l e ry

Elizabeth I and her people © Queen Elizabeth I, The ‘Ermine’ Portrait Attributed to Nicholas Hilliard, 1585 Reproduced by permission of the Marquess of Salisbury, Hatfield House

This exhibition displays several sections of Elizabethan society as characters of a book: Nobility, Gentry and the Court, Merchants and Traders, Professionals, Writers and Artists and Working People and the Poor. Bringing together several paintings of the Queen and people of the period, characterised notably by the painstaking rendition of ornaments and details contrary to the continental focus on perspective and proportion, the exhibition gives a glimpse into the lives of different actors in a society experiencing the first faltering steps of meritocracy as shown by the social status acquired by some craftsmen, merchants and traders. I 10 October 2013 – 5 January 2014. Open daily 10am-5pm and 10am-8pm Thursdays and Fridays. Full price: £13.50

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w h at ’ s o n r oya l a c a d e m y o f a r t s

Honoré© Daumier Clown Playing a Drum, c. 1865-7 Pen and black and grey ink, grey wash, watercolour, touches of gouache. 35.4 x 25.6 cm The British Museum, London Photo © The Trustees of the British Museum

Daumier (1808–1879) Visions of Paris

Clown Playing a Drum

The prolific artist and social commentator Honoré Daumier is currently the centre of an exhibition at the Royal Academy of Arts: the first of its kind to be held in the UK for over 50 years. Through 130 works exhibited chronologically, including many which have never been shown in the UK before, Daumier’s exploration of themes such as judgement, spectatorship and reverie are revealed. Described by Baudelaire as one of the most important men ‘in the whole of modern art’, the Republican’s caricatures are a reflection of his era – a time when a majority of his works could be seen as lithographs in newspapers. I Until 26 January. Open daily 10am-6pm, Fridays 10am-10pm. Full price: £10 PAUL UK Ltd has partnered with the Royal Academy to promote the Daumier exhibition in its 31 stores across London. PAUL customers will be offered a special ticket deal for the duration of the exhibition. Visit PAUL’s website for more information www.paul-uk.com

t h e c o u r ta u d g a l l e ry

The Young Dürer: Drawing the Figure

1a. Albrecht Dürer (1471-1528) A Wise Virgin (recto), 1493 Pen and brown ink, 291 x 200 mm Samuel Courtauld Trust, The Courtauld Gallery, London, D.1978.PG.251

The Courtaud Gallery celebrates the formative years of German Renaissance artist Albrecht Dürer (1471-1528). His early works from around 1490 when he completed his artistic training until 1496 when he established himself as a master in Nuremberg are combined with rare drawings and prints by contemporaries – many of which have never been exhibited in the UK. This period includes the Wanderjahre or ‘journeyman years’ during which Albrech Dürer travelled extensively from X, through Y to Z. The exhibition includes a double-sided drawing dating back to 1493 depicting a figure from the parable of the Wise and the Foolish Virgins on one side, and on its back Dürer’s study of his own left leg. Bringing together two main features of the early artist’s career, a close observation of nature and his ambition to depict the human figure more expressively, this drawing is surely the central piece of the exhibition. I Until 12 January 2014. Open daily 10am6pm + 10am-9pm on Thursdays 7 November, 12 December and 9 January. Full price: £6

t h e wa l l a c e c o l l e c t i o n

The Male Nude: Eighteenth-century drawings from the Paris Academy François Boucher Study of a man lying down an elbow leaning on the ground 1739 © ENSBA Paris .jpg

This exhibition displays 40 French drawing of the male figure including works by Rigaud, Boucher, Nattier, Pierre, Carle van Loo, Gros and Jean-Baptiste Isabey. Besides completing the Wallace Collection’s display of eighteenth-century French painting, the drawings – lent by the Ecole nationale supérieure des Beaux-Arts in Paris – are a reflection of an era when women were not allowed to study at the prestigious school and all models were male. A time when the study of anatomy for its artistic purpose was thorough and yet, when the lack of practice to represent women was detrimental to a confident and comprehensive approach of the human body in painting. I Until 19 January 2014. Open daily: 10am-5pm. Admission free info - november / december - 59

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c h e ese a n d w i n e p r ess

Cheese of the month by La Cave à Fromage: Baratte de chèvre ||| Seasonality should be an essential element of our food choices, as it was naturally for our ancestors. We too often take for granted what nature gives us. However, between seasons, these choices can be harder to make, especially when we are surrounded and tempted by highly marketed produce. During those times, I always come back to a few cheese, which either comfort me or expand my horizons. Baratte de chèvre is a lovely tiny goat cheese from Burgundy, produced by Thierry and Nathalie Chevenet near Mâcon. Seventh generation farmers, the Chevenet family created this cheese some 35 years ago. In the shape of a tiny cylinder with a piece of straw to grab it, it will always suit your mood. Young and fresh at around two weeks, it is light and lemony, at around four weeks, it has shrunk by half and offers depth, intensity and musky aromas. On its own, or with honey or dried fruits, I always cherish it. I by Eric Charriaux E: eric@cheese.biz T: +44 (0)845 108 8222 W: www.la-cave.co.uk

Your wine with Baratte de Chèvre by Wine Story ||| Reading Eric’s comments on the Baratte gave me the idea that this ‘tiny goat cheese’ would make ideal finger food. Imagine yourself in a casual wine bar in the market square of Mâcon. For your morning break, you order from the counter a Barrate which is served with a basket of fresh sliced baguette and a small balloon glass of Macon blanc or a Saint Véran, both well known Chardonnay from the area. It’s simple, unpretentious but ‘gourmand’ and definitely French! If you can’t travel to the market villages of South Burgundy, we can help you to find other wines to compliment the Baratte. When the cheese is fresh and only matured for two weeks, I would choose the dry cuvée A glass of Chardonnay Estela from the biodynamic Domaine Montesquiou in Jurançon. This crispy and zesty wine would be ideal. At the same stage, the Baratte would also go well with a new Sancerre that I found recently thanks to a friend of mine, a local foody expert and winemaker himself. It’s the Sancerre of Nicolas Millerioux in Amigny, 3 kilometres from Sancerre and close to Chavignol. The family’s 17 hectare vineyard is mainly planted on a chalky clay soil and the wines are aged for 6 months on their lees to give them more complexity. It’s a true Sancerre with the traditional floral scents of the Sauvignon Blanc far from the artificial tropical fruits that some producers use now to copy the Kiwi Sauvignon Blanc. For a Barrate with a few more weeks of ageing, my choice will bring you back to the Southern part of Burgundy in the Côte Chalonnaise to the small and exclusively white appellation of Montagny and, in particular, the domaine of Arlette and Philippe Andreotti with their cuvée les Guignottes, which is slightly more buttery than the previous wines. I by Thibault Lavergne E: thibault@winestory.co.uk T: +44 (0)7921 770 691 W: www.winestory.co.uk SAY CHEESE...AND WINE The first edition was a great success (read about it on page 73). Don’t miss the next one on 10 December at La Cave à Fromage. Tickets are selling fast, so book online at www.ccfgb.co.uk or contact Kim Darragon at kdarragon@ccfgtb.co.uk or 0207 092 6644 info - november / december - 61

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book reviews These books, written in French and recently translated into English, were selected by the French Institute

The Victoria System by Eric Reinhardt Published by Hamish & Hamilton Translated by Sam Taylor

||| David Kolski never sleeps with the same woman twice – apart from his wife. Then he meets Victoria. Head of people at a multinational company, by day she is a ruthless executive in a high-pressured whirlwind of power and productivity. By night she likes good wine, luxurious hotel rooms, and abandoning herself to her sexual fantasies. David is soon addicted. Under crushing pressure at work to oversee the construction of a huge Paris tower-block, he takes new vigour and inspiration from his hard-headed capitalist lover. But when Victoria offers to use her position to help him in his career, a dark shadow falls over their affair. Is she really capable of helping anyone other than herself, or is she hiding something from him? Complex, compelling and ambitiously structured, this is a daringly sensual story of an obsession. Part erotica; part thriller; part novel of ideas, like a series of slightly angled mirrors held up to our globalised, capitalist society, the twists and turns of its narrative create a dazzling interplay of reflections and compel us to question the assumptions and forces of our modern world. I

Saving Mozart by Raphaël Jerusalmy Published by Europa editions Translated by Howard Curtis

||| Raphaël Jerusalmy’s debut novel takes the form of the journal of Otto J Steiner, a former music critic of Jewish descent suffering from tuberculosis in a Salzburg sanatorium in 1939. Drained by his illness and isolated in the gloomy sanatorium, Steiner finds solace only in music. Steiner is horrified to learn that the Nazis are transforming a Mozart festival into a fascist event. He feels helpless at first, but an invitation from a friend presents him with an opportunity to fight back. Under the guise of organising a concert for Nazi officials, Steiner formulates a plan to save Mozart that could dramatically change the course of the war. I

The List of my Desires by Grégoire Delacourt Published by Orion Translated by Anthea Bell

||| Jocelyne is 47. She lives in a provincial French town, runs her own dressmaking shop, has been married to the same man for ever and lives a very ordinary existence. She is beginning to wonder what happened to the dreams she once had, when she wins the lottery and faces an extraordinary dilemma. Without cashing the cheque, Jocelyne begins to write down her ‘list of desires’. At first they are simple things – a new coat, a bathmat. She goes to the Chanel shop in Paris but wonders if a new handbag will make her happier than the sandwich her husband prepared for her that morning. Would the money make them happier? That question is taken out of Jocelyne’s hands when her husband finds the lottery ticket and disappears. With a wonderful everywoman heroine and a universal dilemma at its heart, The List of My Desires is a charming novel about the real value of our heart’s desires. I

A Meal in Winter by Hubert Mingarelli Published by Portobello Books Translated by Sam Taylor

||| One morning, in the dead of winter, three German soldiers head out into the frozen Polish countryside. They have been charged by their commanders to track down and bring back for execution ‘one of them’ – a Jew. Having flushed out a young man hiding in the woods, they decide to rest in an abandoned house before continuing their journey back to the camp. As they prepare food, they are joined by a passing Pole whose virulent anti-Semitism adds tension to an already charged atmosphere. Before long, the group’s sympathies begin to splinter as each man is forced to confront his own conscience as the moral implications of their murderous mission become clear. I

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Patron Members of the French Chamber of Commerce in Great Britain

LOGO Nยบ dossier : 20110049E Date : 31/05/11 Validation DA/DC : Validation Client

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LONDON BRANCH

News @ the Chamber E

nergy has not only been the theme for this issue, but also a requirement for the second semester with its range and quantity of activities, events and initiatives. The following pages showcase just what has been happening, from the Diner de la Rentrée, to the CEO Breakfast, and from topical Forum and Club sessions to a highly successful French Trade Delegation trip to Scotland. As the ‘shop window’ of the Chamber, these are just a small representation of all our activities, but they are also a barometer of the business mood. And just as we are seeing more positive signs in the greater economy, so we are noticing greater participation in our events – tickets are selling faster, and even selling out for some events – our first ‘Say Cheese... and Wine’ was sold out within 24 hours! It is a welcome trend for us, and great for members too, offering as it does a better range and depth of exchange and connection with more fellow members. The only catch is, you have to be an early bird… In keeping with the Energy theme, the Chamber, in partnership with Ubifrance, organised a twoday Offshore Wind Trade Mission for the second year running, bringing French and UK-based companies together to discuss future projects and opportunities for collaboration. On the membership front we have welcomed 18 new members since ‘la rentrée’: Accuracy has

joined us as a Patron member, while our three new corporate members include Caviar Petrossian, Rocco Forte Hotels (whose gorgeous Balmoral Hotel in Edinburgh hosted the members of the French Trade Delegation) and R Robson Ltd (representing the French cosmetic brand Guinot). Among our 14 new Active members is L’Occitane, whose story is told in this issue. The Recruitment Department is also on a roll, signing partnerships with two more business schools to open up a ‘talent pipeline’ between them and our client companies, and helping member companies fill positions with high calibre candidates. Such is the growth in the Recruitment Service, that the department has taken on a new member of staff. There is a lot to squeeze into the last two months of 2013, and we are gearing up for a particularly busy November – the 17th edition of the Annual Financial Lunch, the Franco British Business Awards (in Paris this year), another CEO Breakfast and the Diner des Chefs at Le Manoir aux Quatr’saisons – and a celebratory start to December with a new event that draws inspiration from entrepreneurs’ stories, ‘From Scratch to Success: Business Stories’, the highly anticipated Soirée de Noël, which this year incorporates the presentation of the Intercultural Trophy, and another ‘Say Cheese... and Wine’. So replenish your energy stores and get those tickets before they sell out… I KF info - november / december - 65

new members 1 New patron member

Accuracy UK Limited, Corporate Financial Advisory Represented by Erik van Duijvenvoorde, Partner | www.accuracy.com Accuracy is the sole, truly independent European actor offering companies and their shareholders global reach in financial consultancy services. We combine know-how in areas such as accounting, forensic investigation, valuation, financial modelling and forecasting, as well as economic, strategic and market analysis to assist our clients in a wide range of situations including acquisitions, disposals, decision making, restructuring, turnaround and dispute resolution (litigation and arbitration). Delivering its services worldwide, Accuracy has 36 partners and 220 consultants across offices in nine countries in Europe, North America and Asia.

3 new corporate members

Caviar Petrossian | www.petrossian.com Excellence - Authenticity - Conviviality Represented by Bruno Gils, Export Sales Manager

Petrossian is world-renown for its caviar and seafood specialties. A family-owned business founded in Paris in 1920, Petrossian exports to five continents. Petrossianâ&#x20AC;&#x2122;s products result from an ancestral know-how that has been transmitted from generation to generation in the Petrossian family with the most profound respect for tradition.

Rocco Forte Hotels | www.thebalmoralhotel.com Represented by Franck Arnold, General Manager

The iconic Balmoral hotel is located at Edinburghâ&#x20AC;&#x2122;s most prestigious address. Stylish guest rooms and suites, Michelin-star and relaxed dining, an award-winning spa, a regal afternoon tea room, cocktail and whisky bars, all served with world-class Scottish flair. Meeting rooms that boast the best views of the capital and its castle.

R Robson Ltd (Guinot) | www.guinot.co.uk Skincare products and treatments Represented by Jean-FranĂ§ois Mondin, Vice President

French skincare brand Guinot was established in 1963. The brand is now represented in over 70 countries worldwide and is the number one professional skincare brand in Europe. The company has established a reputation for producing outstanding quality products and providing a service level that is second to none.

14 new Active members

Bryan Garnier Asset Management www.bryangarnier-am.fr Asset management, patrimonial solutions, life insurance Represented by Arnaud Risser, Sales

Day for night www.day-for-night.org Independent film company working across festivals, distribution and screen translation Represented by Sonali Joshi, Founder & CEO

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Emmaus UK www.emmaus.org.uk Charity working together to end homelessness Represented by Arvinda Gohil, Chief Executive

Food for Franchising Franchise sales and operations for Anheuser-Busch InBev Represented by Louis Malta-Bey, Franchise Director

new members Four Seasons Hotel London at Park Lane www.fourseasons.com Represented by Biagio Gaeta, Catering Sales Manager

KMH Gestion Privée www.kmh.fr Independent Financial Advisers Represented by Nicolas Medan, Manager

L’Occitane UK www.loccitane.co.uk Beauty/natural Beauty Co Represented by Sophie Oliver, PR Manager

Léon-de-Bruxelles www.leon-de-bruxelles.co.uk Restaurant Represented by James Storey, General Manager

Le Pain Quotidien www.lepainquotidien.co.uk Artisan bakery, restaurant, organic, healthy, relaxing and home Represented by Jack Moran, Chief Operating Officer

OSF Global Ltd www.osf-global.com Software development, technology, integrator Represented by Delphine Hay, Account Manager

Probance www.probance-marketing.com Software publisher for a one-to-one e-CRM solution Represented by Alexandra Journeau, UK Business Development Manager

Re-Up www.thisisreup.com Creative & digital agency Represented by Laurent François, Managing Director

Vintage Financial Ltd www.vintagefinancial.co.uk Financial advisers Represented by Jeremy Woolf, Private Medical Insurance Specialist

Vitec SA www.vitecmm.com Digital video products (R&D and manufacturing) Represented by Philippe Wetzel, CEO

If you would like more information about members (including email, address, phone number, etc.), please feel free to consult the online directory at www.ccfgb.co.uk/membership/search-for-members.

n e w r e p r e s e n tat i v e s Marc Bena, Risk Assurance Partner, becomes PwC’s new main representative Marc has over 17 years’ experience with PwC in France and the UK, and his main area of expertise is on risk management and internal controls over financial, operational and IT processes and systems. He has worked with a wide range of internal and external audit clients in various industry sectors. Over the last few years, Marc has been the engagement leader responsible for the systems and controls audit of eight different FTSE 100 including a major UK retail and investment bank. I Marc Bena

Sophie Panizzo, Head of Office - Chelsea becomes Sotheby’s Realty’s new main representative Sophie Panizzo joined Sotheby’s Realty in 2004 and, up until January 2012, worked in their Mayfair office covering all of Prime Central London. High levels of demand from buyers led to the launch of the South Kensington/Chelsea office 18 months ago. Sophie heads up a sales team of 5 in Chelsea who work closely alongside the Mayfair office. Sotheby’s Realty also has offices in Surrey, Henley on Thames, Stratford upon Avon and Dorset as well as over 600 offices in 47 countries. I Sophie Panizzo

David Glass In the last issue of INFO, we announced that Géraldine Fabre had become Thomas Eggar’s new main representative, replacing David Glass. We would like to clarify that David Glass remains actively involved with the French Chamber of Commerce as a member of our Advisory Council.

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Philippe d’Ornano

Philippe d’Ornano becomes EY’s new main representative, taking over from Micha Missakian Philippe d’Ornano has become EY’s main representative following Micha Missakian’s return to the Paris office. After graduating with a business degree in France, Philippe started his career with Arthur Andersen in Paris before moving to the firm’s London financial markets operations in 1991. He has been based in London since then and joined the EY partnership in 2001. As Partner, Philippe’s responsibilities include the oversight of the firm’s services to global wholesale banking and capital markets clients. I

hello

Wayne Culbertson

Tim Flodin

Jean-Jacques Lebel

g o o d by e

Wayne Culbertson appointed Managing Director of Michelin Tyre PLC, taking over from Eric Le Corre Wayne Culbertson took over as Managing Director of Michelin Tyre PLC in August 2013, following five years as Executive Vice President of Personnel and Chief Human Resources Officer for Michelin North America. He joined the Michelin Group in 1974, after gaining a degree in engineering from Clemson University, South Carolina. His 39-year career with Michelin has spanned three continents, with assignments in the United States, France, Northern Ireland and Australia. During that time, he has held various roles in manufacturing, quality management and HR, as well as heading up Michelin’s marketing & sales organisation for the South Pacific region. Eric Le Corre is now Director of Public Affairs for the Michelin Group. I

Tim Flodin appointed General Manager of London’s boutique hotel Andaz Liverpool Street, taking over from Arnaud de Saint-Exupéry Tim Flodin, who has a distinguished career with Hyatt Hotels & Resorts since 1984, has been appointed the new General Manager of London’s five-star boutique hotel, Andaz Liverpool Street. The hotel’s former General Manager, Arnaud de Saint-Exupéry, who managed Hyatt’s premier Andaz hotel since its opening in 2007, has gone to Japan as the opening General Manager for the new Andaz Tokyo scheduled to open in Spring 2014. I

Jean-Jacques Lebel becomes Chairman of L’Oréal UK & Ireland on the retirement of Lady Sylvia Jay CBE Jean-Jacques Lebel became Chairman of L’Oréal UK & Ireland in September 2013, following the retirement of Lady Sylvia Jay CBE. He joined the company in 1981 as General Manager of the Consumer Division in the UK, and has successively held titles such as General Manager of the Laboratoires Garnier Division in France, Managing Director of L’Oréal UK Ltd, Managing Director of the Latin America Zone, and President of L’Oréal Professional Products Division. In 2008, he was appointed President of L’Oréal Consumer Products Division Worldwide, retiring in 2013. JeanJacques was also a member of the Executive Committee of the L’Oréal Group from 2001-2013. I

Simon Wagstaff becomes the new Group Freight Director at Brittany Ferries, replacing Jon Clarke Simon Wagstaff has taken over the role of Group Freight Director at Brittany Ferries, replacing Jon Clarke who has retired. Simon has over 30 years’ experience at Brittany Ferries, the leading ferry operator on the English Channel west of Dover, having joined the company back in 1981. For the past 13 years, Simon has been Freight Sales Manager within the UK and more recently his responsibility widened into areas of continental Europe. I Simon Wagstaff 68 - info - november / december

chamber shorties

Five new members join the Chamber’s Board of Directors The Chamber has welcomed five new members to its Board of Directors: Estelle Brachlianoff, Executive Vice-President of Veolia UK and Northern Europe; Olivier Nicolaÿ, Managing Director of Chanel UK, Canada and Latin America; Nicolas Petrovic, Chief Executive Officer of Eurostar International Ltd; Sir Martin Sorrell, CEO of WPP Group Plc; and Robin Southwell, CEO of EADS UK. They were co-opted at the Board meeting of 19 September 2013, chaired

by Arnaud Bamberger, President of the French Chamber. The new members will bring the number of Directors on the Chamber’s Board up to 15. The Board is the supreme governing council of the Chamber, responsible for guiding the Chamber’s policies, taking major decisions concerning the Chamber’s strategy and to increase the effectiveness of the Chamber by actively participating in and leading its activities. I

Trade mission introduces 14 French businesses to the UK offshore wind sector The Chamber’s Business Consultancy together with the French Trade Commission in the UK, Ubifrance, organised an offshore wind trade mission on 9 and 10 October to bring together French and British companies in the sector. Speakers from leading British energy companies and related fields, including EDF Energy Renewables, Areva, Alstom, Eon Energy, Scottish Power Renewables, Vattenfall and Atkins Global, presented future projects and opportunities for collaboration, and 226 B2B meetings were organised between the 14 French businesses and over 30 UKbased companies. The feedback from the French and British companies involved was excellent and have

already resulted in encouraging discussions, which we will follow closely,’ reported Sabrina Mimid, Head of Business Consultancy. I

Welcome to Christelle Ferrari, our new Recruitment Consultant and Suzanne Lycett, our new Sales & Advertising Coordinator Christelle is from Lyon where she graduated in Psychology from the Lumière University Lyon II. She then left for Hong Kong and worked for SHL, an international company specialised in talent acquisition, talent mobility and employee development before Christelle joining the Recruitment Department of the French Chamber of Commerce in Hong Kong, where she worked for two years.

Suzanne graduated from the University of Birmingham in 2011 with a BA (Hons) in French Studies, including a year’s work experience working in Nantes as a Language Assistant, and then completed an MSc International Business in 2012 at the University of Suzanne Birmingham Business School. In her previous role, she worked as Sales Executive at PublicService.co.uk, a media publishing company. I

A new corporate movie and a dedicated YouTube channel for the French Chamber! Created by Chamber member movingdesign, which provides premium artistic digital solutions, this short 3D video illustrates the activities and reach of the French Chamber as part of the network of French Chambers worldwide and can be viewed on Youtube. Videos of all our events will also be uploaded to the new French Chamber YouTube channel, so make sure you subscribe to it to receive them. I info - november / december - 69

recent event q u a r t e r ly e c o n o m i c u p d at e

3 s e p t e m b e r 2 013

Here is the weather forecast... ‘Forecasting is an imprecise science, so weather symbols can be just as useful as figures,’ John Hawksworth, Chief UK Economist at PwC, explained when presenting his view of world economies. With the outlook showing a ‘multi-speed’ world economy, he gave an improving forecast for the UK, which, for the moment, has slightly better weather than France UK economic trends and prospects UK growth was 1.3% in the year to Q2 2013 with the services sector leading the way. Manufacturing and construction are improving from a low base and indeed the most recent survey of manufacturing showed a pick up. There are definitely signs that a reasonably broad-based recovery in the UK may be under way. However there are a number of upside and downside risks to keep an eye on. Flare-ups in the Eurozone can’t be ruled out, and any escalation of conflict in the Middle East could push up oil prices, jeopardising recovery. There is also uncertainty about how John Hawksworth the big economies will exit from very easy monetary policy and whether capital flight from emerging economies will accelerate. As a trading nation with around 30% of its GDP from exports, the UK is susceptible to global problems and nascent confidence could falter. On the plus side, the Eurozone could pick up faster than expected, the Middle East could calm down, and with UK house prices rising, the feel-good factor could return. As consumer and export demand picks up, businesses sitting on cash piles might start to invest more, creating a more sustainable recovery. UK inflation is an ongoing concern with upside risks, and the squeeze on real earnings is likely to persist in 201314. Employment growth has been patchy across the regions, and this unevenness is reflected in regional growth figures. However, growth is expected in all UK regions in 2013-14, with London in the lead. The UK is recovering somewhat faster than France after a deeper recession in 2008-9, but there is no clear ‘winner’ based on key economic indicators. While growth and employment are stronger in the UK, France is doing better in terms of inflation, budget deficit and trade balance. Six forces shaping longer term economic growth Western economies face significant challenges in the longer term, looking at a 2018 to 2030 time frame: 1. The legacy of the global credit boom and financial crisis: what will the banking system and economies 70 - info - november / december

look like as we move beyond the crisis? 2. Demographics: ageing populations in many advanced economies, China and Russia, but quite young, fast-growing populations in others 3. The rise of Asia-Pacific and the emerging world more generally as the dominant force in the world economy 4. Technology and productivity growth trends: speeding up or slowing down? 5. Environmental and resource constraints: energy, water, food and other issues related to climate change. 6. The nature and future size of government: how far should public sector restructuring and welfare reform go?

Two different growth scenarios for Western economies These six factors could play out in two completely different ways over the period to 2030: Prolonged New Normal: fairly slow growth continues to 2030, as economies are slow to adjust and crises recur. Ageing populations are a big drag on growth. Technological developments slow down significantly. Conflicts and protectionism dog the rise of the emerging markets, while energy and commodity prices are high and volatile. Public deficits remain stubbornly high, delaying real reform in government. Trend growth hovers at 1-1.5% per annum. Western Renaissance: a quicker adjustment after the crisis provides a more stable financial system. An ageing population is offset by longer working lives and skilled migrants. A technological resurgence drives productivity. Strong, sustained growth in emerging markets creates huge consumer markets for Western companies. New sources of energy (shale oil and gas) push down prices, while green growth boosts economies. Faster public deficit reduction provides room for tax reform, funds to tackle poverty and inequality, and helps growth. Trend growth is 2.5-3%. It is impossible to make precise forecasts, but, like the weather, it is useful to think about different scenarios and, as a business, plan and prepare for them. Resilience and agility will be key to corporate success in this fast-changing global economic environment. I KF

recent event dîner de la rentrée

4 s e p t e m b e r 2 013

Moving with the times A relaxed and jovial mood prevailed at the first event of the new season, where, over dinner, Chamber members heard from Philippe Varin, Chairman of the Board of PSA Peugeot Citroën, about the company’s challenges and how it was facing up to them

here is no English word that conveys the sense of ‘La Rentrée’, and more’s the pity, as it encapsulates so much, and better still, offers the opportunity for a celebratory coming together to launch the second half of the year. The Chamber’s Dîner de la Rentrée was just such an occasion, and with most members refreshed by summer holidays the mood was ebullient as they gathered at The Grand Connaught Rooms for a reception, where Vranken Pommery Champagne flowed, and dinner, accompanied by a variety of wines from Le Conseil des Vins du Médoc and Domaine Brand & Fils. It was Arnaud Bamberger’s first Chamber event since becoming President in July, and he set a relaxed and friendly tone with his words of welcome, and introduction of the guest speaker Philippe Varin, Chairman of the Board of PSA Peugeot Citroën. Philippe Varin joked that it was a lesson in modesty for him to see someone from Cartier selling the DS – Citroën’s newest and most distinctive line, a DS3 Cabrio model of which was on display in the foyer as guests walked in. ‘To use that glorious British understatement, we live in interesting times,’ Philippe said. He went on to explain that as a direct or indirect employer of hundreds of thousands (one job out of 10) in France, the health of the company was important. In 2009, PSA Peugeot Citroën had taken stock of its situation, and came to the conclusion that it was too small in terms of market share, too European and too middle of the range. ‘We decided that we had to make the turnaround in France, we had to be more innovative to support the move upmarket of our brands and we had to become more international,’ he said. Since then, the European market has declined by close to 30%, with key markets hit even harder – an unprecedented situation that has necessitated job cuts and restructuring. Labour costs, he stressed, were the most serious issue in France that was not being dealt with. The turnaround is, however, under way, he observed: ‘We see some green shoots, so I think the worst is over but there is still some way to go in the next few years.’ Turning to international expansion, Philippe spoke about the importance and potential of the Asian

Philippe Varin, Chairman of the Board of PSA Peugeot Citroën giving his presentation

market, which saw a 32% growth in sales in the first half of 2013. China is set to become the company’s biggest market, and this year it opened two plants there with the capacity to build 900,000 cars. ‘We are on track to achieving our goal of 60% of sales outside of Europe by 2015,’ he said. PSA is also repositioning its brands, as he explained, with Peugeot now completely upmarket, and Citroën’s C and DS lines moving into clearly differentiated customer territories ‘based around the brand’s promise which is human, simple and smart’. Technological innovation is one of the company’s strengths: it is a leader in low-carbon cars having introduced the world’s first diesel hybrid and has developed a lightweight platform. In response to customer requirements it is also focusing on integrating new information technologies through connectivity applications that enhance safety, fuel efficiency and access to car sharing. ‘The customer experience is an obsession in the group,’ Philippe confessed, ‘and this is the reason we have had a number of interesting awards.’ As he pointed out, the fact that the DS3 had won Top Gear’s Car of the Year award in ‘the spiritual home of the Mini’ belied the saying that you cannot take coals to Newcastle! Acknowledging the Chamber’s role in supporting and promoting French business, he ended by urging the gathering ‘to do the job of supporting French products’. I KF info - november / december - 71

recent event c eo b r e a k fa s t

27 s e p t e m b e r 2 013

EADS UK: No. 1 and proudly European The second CEO Breakfast of 2013 was once again held at the Andaz Liverpool Street hotel, with sponsor PAUL providing a delectable array of pastries, tarts and breads for the 100 guests who came to hear Robin Southwell, CEO of EADS UK, speak about the company and its role in the UK

obin began by announcing that the name EADS (European Aeronautic Defence & Space Company), an ‘awkward amalgamation’, would be consigned to history when the rebranded Airbus Group takes off in January 2014. ‘We are bigger and better than Boeing, the number one commercial aircraft company in the world and proudly European,’ he said. With four home markets in the UK, France, Germany and Spain, ‘collectively we represent Europe working and working well.’ Getting straight to the question of an EU referendum, he was unequivocal: ‘EADS doesn’t comment on these topics, however, speaking as a British citizen, leaving the EU would be damaging for business. The situation we have in the UK today as part of an integrated common market is optimal. There could not be a better environment for us to operate in.’ EADS UK represents 15% of the entire group, but punches well above its weight. It is present in 32 locations around the country with a 17,500-strong workforce and a deep supply chain of close to 10 times that. EADS is one of 38 key companies identified by the government as important for rebalancing the economy. ‘Why this is,’ Robin explained, ‘is not just its scale, but also because we pay good salaries to highly skilled people (50% above the national average) and most of what we produce is exported beyond Europe.’ On why EADS is good for the UK, Robin said: ‘Not only are we at the high end of R&D, engineering, technology and innovation, and a supply chain multiplier, but we are also a global leader in wing design and manufacture. The UK is very good at ‘lift’ or aerodynamics and we must ensure that we keep that sustained leadership for future generations of engineers.’ He listed amongst EADS UK’s other activities, Astrium, the space company that makes advanced satellite and communication systems; cyber security systems provider Cassadian; and Eurocopter, which provides helicopters and support to the UK’s emergency services, military, oil and gas industry and commercial sector. Robin pointed out that the UK has benefited disproportionately from EADS’s activities in the UK, proportionally outperforming the Group as a whole. ‘The commitments made to this country are because the UK does things well,’ he said. Turning to where EADS is going next, Robin spoke 72 - info - november / december

Robin Southwell

about organic growth, new products such as the A350, A400M Atlas and Voyager airtanker, a £74 billion order book representing seven years of operation and €500 million investment of R&D in the UK. Robin was frank about the limitations of the AngloFrench defence treaty, because ‘both nations tried to use it for their own objectives rather than mutual benefit’. ‘If you are going to work collectively you have to agree on mutual objectives rather than working to a headline,’ he said. ‘France and the UK are the two most important powers in terms of military capability in Europe, and when we start working together it does make a difference for good, so I want to work tirelessly to reinvigorate AngloFrench co-operation for the right reasons.’ Robin then took questions, among them how the UK could maintain and preserve its technical advantage, what EADS’s challenges are and how the company would deal with the prospect of reduced military budgets. ‘Entry barriers are really high so as long as we are careful we should continue to lead the technology race,’ he explained. And as for the challenges, ‘It’s really simple, we want to reduce our risk profile – it’s steady as she goes, business as usual.’ He acknowledged that reductions in military spending was a concern, but said it was a matter of finding ways to do things differently – using commercial aircraft platforms rather than expensive, over-engineered specialist aircraft – and exporting. ‘We are on a journey,’ he concluded. ‘People are genuinely proud to work for a company that transcends national borders, but in terms of meritocracy and diversity, there is more to be done.’ I KF

recent event s ay c h e e s e a n d w i n e

9 oc tob e r

An evening of gourmandise Inspired by INFO’s regular cheese and wine column with all its tantalising pairings, this was a chance to try the real thing, and the first edition of hopefully many more

ickets for the first edition of this special cheese and wine tasting sold out in one day, so it was a privileged few who gathered in the La Cave à Fromage shop in South Kensington. Visible through the windows, the sumptuous spread of charcuterie, cheeses and – intriguingly - macarons on display certainly attracted many curious and envious glances from passers-by. The mood was friendly and jovial as glasses of wine were poured, and guests networked while sampling the many delights. Eric Charriaux, Director of La Cave à Fromage, and Thibault Lavergne, Director of Wine Story, whose cheese and wine pairings in INFO, had inspired the event, mingled with the guests, telling the stories behind each choice. Raymond Blanc OBE was among them and it was he who posed the question – why do people think cheese goes with red wine, when white is clearly better? The cheeses were presented by Nicolas Broche, Manager of La Cave à Fromage, and then matched with a fine selection of wines by Thibault. Stars of the show were a Tome Brulée, shaved off in delicate frills that enhanced its flavour; Campion, a fresh lemony goat’s cheese encrusted with Madagascan wild berries, which went well with an Alexandra Vermentine 2012 Corsica Figari Tanella; and a Brillat Truffe

Thibault tells a wine story to a captivated audience

– triple cream cheese with a layer of black truffle paste – that met its match with a Pommard Les Noizons 2009 Domaine Denis Carré. For the Windsor Blue, washed in Highland whisky, there was a beautiful Canon Fronsac 2002 Chateau Gaby. The Brie de Meaux Baron was ideal with a Cider Brut from Julien Fremont in Calvados, while for Eric’s cheese macarons – Raspberry & Parmigiano Reggiano, Pear & Roquefort and Blackcurrent & Epoisse among them – Thibault selected a fruity Petit Manseng Côtes de Gascogne Domaine de Miselle. Replete and making resolutions to hit the gym in the morning, guests departed with smiles on their faces and every intention of being among the participants in the next edition. This, Eric hinted, could very well take place in a larger ‘Cave’, soon to be opened in Portobello Road. My advice would be to get tickets while you can! I KF

i n t e r n at i o n a l w i n e ta s t i n g

17 s e p t e m b e r

10 nations wine, sake and tequila tasting

he annual inter-Chamber wine tasting fest went even more global this year as the number of Chambers participating doubled. Joining Argentina, Austria, France, Italy and Switzerland were Canada, Japan, Macedonia, Mexico and Spain, with every country showcasing a superb range of wines, and in the case of Japan and Mexico, sake and tequila. For the French Chamber of Commerce in Great

Britain, Enologia provided three wines. Over 175 participants from all the different Chambers of Commerce packed into Piccadilly Circus’ trendy DKSTRKT nightclub to quaff and make connections with a truly international crowd. As always, the feedback was overwhelmingly positive about the friendly atmosphere and convivial environment for networking and discussions! I KF info - november / december - 73

recent event t r a d e d e l e g at i o n t o s c o t l a n d

3- 4 oc to b e r

A friendly French invasion Led by HE Mr Bernard Emié, French Ambassador to the UK, and Arnaud Bamberger, President of the French Chamber, a delegation of 14 French business leaders, French Embassy officials and French Chamber representatives headed to Scotland on 3-4 October

his high-level delegation was met with equally highpowered representation on the Scottish side, most notably First Minister Alex Salmond who hosted a dinner for the delegation in Edinburgh Castle, following the signing of a letter of intent on Franco-Scottish educational cooperation with the Ambassador. Over dinner, the First Minister recounted the strong historic connections between France and Scotland stretching back over 700 years, which, he noted, demonstrate that ‘Scotland has always been an outward-looking nation’. He went on to highlight the modern friendship and business links between the countries. ‘French businesses play a huge part in Scotland,’ he said, quoting a number of 145 French companies headquartered in Scotland that employ 26,000 people. Emphasising Scotland’s role in Europe, he attributed its contribution to the Continent’s prosperity and success in ‘making new friendships and strengthening Auld Alliances’, alluding, of course, to the 1295 treaty between France and Scotland that had continued in various forms through the centuries, and which General de Gaulle had called ‘the oldest alliance in the world’ when he was in Scotland in 1942. With a warm welcome to the delegation Alex Salmond concluded by saying, ‘I look forward to many more decades and centuries of friendship between the nations of Scotland and France’. In response, the Ambassador said that the business leaders on the delegation were convinced that Scotland was full of opportunities, and represented ‘billions of pounds in investments that have either already been made or are due to be made in the coming years’. ‘We can confidently say our friendship will also be embodied in successful business ventures,’ he said. Arnaud Bamberger, President of the French Chamber also spoke, introducing the members of the delegation and the wide range of sectors they came from. ‘Most of these companies are present here tonight to show you our faith in Scotland and the fact that we care very much about being here,’ he said, ‘and there are others for whom Scotland is a target market.’ He finished with a quote from General de Gaulle’s speech, as relevant now as it was when uttered more than 70 years ago: ‘How could we ignore all the exchanges of ideas, feelings, customs, and even words so frequent between two peoples joined by a natural friendship, 74 - info - november / december

a friendship of which a visit to Edinburgh affords such ample proof?’ Earlier in the day, the delegation had visited Rosyth Royal Dockyard, where they had had the privilege of visiting HMS Queen Elizabeth, the 280m aircraft carrier in build. When it is operational in 2020, it will be the most automated in the world, as Captain Simon Petitt, Senior Naval Officer explained in the briefing before the delegates went on board. This future Royal Navy flagship is the product of an alliance between Babcock, BAE Systems and Thales, a member of the French Chamber. At Rosyth, the delegation was met by the Right Honourable David Mundell, Parliamentary Under Secretary of State for Scotland, and engaged in a discussion on the implications for business and investment of the Scottish referendum on independence, which takes place on 18 September next year. Back in Edinburgh, at the iconic Balmoral Hotel, where the delegation stayed, Mackay Smith of Scottish Development International gave a presentation on Scotland’s economy and the opportunities it represented for inward investment. Picture windows provided sweeping views of Princes Street, as delegates networked with their Scottish hosts and representatives of some of the French companies present in Scotland. Alex Salmond had joked that the honour of France was at stake because the US had overtaken it as the premier country for the consumption of Scottish whisky, and he exhorted the delegation to make their ‘own individual

Posing with HMS Queen Elizabeth at Rosyth Royal Docks

recent event t r a d e d e l e g at i o n t o s c o t l a n d

3- 4 oc to b e r

The delegation with Alex Salmond at Edinburgh Castle

and company contribution to ensure that the USA is put firmly back in its place as number two’, beginning with the whisky tasting hosted by Chivas Brothers back at the hotel after dinner. In the Balmoral’s new whisky bar, aptly named Scotch, six distinctly different whiskies were presented by Heritage Director Peter Prentice, who provided a multi-sensory education on savouring the subtleties of each dram. On day two the delegation headed north to Dundee, Scotland’s fourth largest city, where they visited Michelin’s tyre factory, accompanied by Managing Director Wayne Culbertson and Factory Manager John Reid. Established in 1972, the factory is now the only large manufacturing employer in the city with a workforce of close to 1,000. It produces over 7 million tyres a year, 95% of which are exported. A tour of the factory revealed just how complex the tyre manufacturing process is, and despite the automation, the surprising level of manual inspection each tyre undergoes. En route to Aberdeen, the delegation stopped off to view the ruins of Dunnottar Castle, dramatically positioned on a rocky promontory. A Scottish piper and the ‘dreich’ weather added to the atmosphere, and although time constraints and the slippery conditions

Dunnottar Castle. L to R: Patrice de Viviès, Arnaud Bamberger, HE Bernard Emié,Pierre-Alain Coffinier

meant exploration was out of the question, it provided a picturesque photo opportunity. Fortunately VisitScotland had also organised a private tour of Edinburgh Castle the night before, so delegates had had enough of a taster to ensure they would return for more. A sumptuous lunch was laid on by Total at its Aberdeen headquarters, hosted by Chairman Patrice de Viviès. A presentation on Total’s activities in Scotland followed, in particular the Laggan-Tormore project west of the Shetlands, which comes on-stream in 2014, and a fascinating visual explanation of the geoscience behind seismic acquisition. Total is one of the largest oil and gas operators in the UK, responsible for about 11% of UK production, and employing 1,000 people in Scotland alone. On to Aberdeen Town Hall, where the delegation was welcomed and shown around by the Deputy Lord Provost before walking to adjacent Marischal College, the headquarters of Aberdeen City Council, and second largest granite building in the world. An impressive introduction to Aberdeen’s vibrant economy and investment potential in energy, green technology and infrastructure was given by Gordon McIntosh, Director of Enterprise, Planning and Infrastructure at Aberdeen City Council, and Robert Collier, Chief Executive of the Aberdeen & Grampian Chamber of Commerce, who commented that this was the most high level French trade delegation they had ever hosted. The finale was a reception at Aberdeen Art Gallery hosted by Council Leader, Councillor Barney Crockett on behalf of the Lord Provost, where delegates mingled and networked with their hosts and local representatives of French companies amidst an outstanding collection of art. Both the Ambassador and Arnaud Bamberger were profuse in their thanks for the warm welcome the delegation had received, and expressed confidence in fruitful outcomes and a return in the not-too-distant future. All too soon, the delegation was whisked off to Aberdeen Airport for the flight back to London, courtesy of Scotland’s biggest carrier and Chamber member easyJet. I KF info - november / december - 75

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recent event annual legal lunch

17 o c t o b e r

Constitutional milestone: the creation of a UK Supreme Court The inaugural legal lunch, held at the Connaught, was addressed by the right honourable Lord Phillips of Worth Matravers KG, PC, past President of the Supreme Court of the UK, who spoke to INFO from King’s College London, where he is Distinguished Fellow and Visiting Professor Why was the decision taken to create a UK Supreme Court?

The simple answer is you ought to ask Tony Blair. The decision was his. Essentially it was a last step in achieving the separation of powers, or making it transparent, and was part of a wider package, which included removing judicial powers from the Lord Chancellor. Blair knew that the Lord Chancellor, Lord Irvine, would not be in favour, and so he went ahead without consultation, although he subsequently admitted that the process had been ‘bumpy and messy’. It was an extraordinary anomaly to have Members of Parliament sitting as a final court of appeal, and completely contrary to the doctrine of the separation of powers. In practice, it had become a convention that the Law Lords would not take part in parliamentary business except chairing apolitical committees and occasionally taking part in debates, so you already had a Supreme Court embodied within Parliament. But this was not at all apparent to anyone outside Parliament in this country, let alone in France. What is the role of the Supreme Court?

Its function is to act as a final court of appeal in the UK with the exception of Scotland in criminal matters. It is a bit like the French Cour de Cassation except that the Supreme Court combines appeals in criminal, civil and administrative cases, whereas in France the Conseil d’Etat is the final court of appeal in administrative cases. The very big difference between them is that the Cour de Cassation ensures that justice is done in individual cases and under the French constitution there is a right to appeal, whereas the Supreme Court only deals with points of law of general public importance, clarifying and sometimes even making new law, but nobody has a right to appeal. The Supreme Court selects the cases it will hear – only 50-60 a year that raise an issue of general public importance. Were there any landmark cases while you were President that had wider implications for society and business?

The Human Rights Act requires English courts to take account of jurisprudence from European Court of Human Rights (ECHR) in Strasbourg. The issue was how strictly the English courts regarded themselves as bound to follow Strasbourg cases, and in the case of Horncastle we expressly declined to follow a Strasbourg decision, explaining why we were not doing so, and suggesting that the ECHR reconsider. They did so and agreed that

The RT. Hon Lord Phillips of Worth Matravers KG, PC

their previous decision had gone too far and that we had the right approach. That established an important relationship between our courts and the European Court of Human Rights, and was a significant decision. The role of the ECHR and the extent to which it dominates aspects of our law is controversial. My own view is that ultimately Strasbourg is supreme as far as the interpretation of the Human Rights Convention is concerned. Another case of great public interest raised an issue of whether the Office of Fair Trading (OFT) had jurisdiction to look into overcharging by banks. Having looked at the statute creating the OFT we decided it was outside of its remit to consider whether banks were overcharging. Is it not an issue that the Supreme Court’s diversity is not reflective of UK society?

The Constitutional Reform Act requires appointments to be made to the Supreme Court on merit. It’s unfortunate that at the moment we only have one woman out of 12 Justices, but it reflects the structure of what was a maledominated profession. However, things are changing: there are far more women at the bar and being appointed as judges and in due course, I have no doubt, there will be far more women on the Supreme Court. Is the British legal system a help or hindrance to business?

Our commercial court has a very high reputation, but more generally, around the world, a large amount of commercial disputes are decided by international arbitration, and you usually find that these disputes are governed by common law, or English law. So I think the commercial world quite likes our substantive system of law, and therefore I think it is probably quite helpful to it. I KF and Karim Mijal info - november / december - 77

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Funding innovation Aneesh Banerjee, a researcher from the Faculty of Management, Cass Business School, describes the effects of resourcing on creativity and innovation In August 2013 the Wall Street Journal reported that Google had shelved its ‘20% policy’. A novel policy that allowed Google employees to spend one fifth of their time on whatever out of the ordinary ideas they might have, was deemed to be an expensive experiment. Terminating this policy amounted to a rejection of the widely held belief that ‘abundance’ and ‘freedom’ drives the generation of breakthrough ideas. Why did this strategy fail? To answer this question we must take a closer look at the nature of innovative work and the way managers conceptualise it. Innovation management in modern firms often looks like a funnel, with the dominant view that since 1 in 100 ideas generate value, we should invest our resources in generating more ideas. This is a somewhat ‘linear’ view of innovation that has been shown to work for incremental innovation projects. When allocating resources for innovation that represent minor improvements, decision makers are in a good position to assess the risks and potential benefits in resourcing a project. The same approach, however, rarely works for breakthrough innovations. Break-through innovations are not just risky

– they are uncertain, i.e. decision makers are unable to gauge the odds of success. Therefore capturing breakthrough ideas needs a shift from ‘generating more ideas’ to ‘generating better ideas’. Current research at the Cass Business School reveals that teams are more likely to come up with better ideas when they have high aspirations for what can be achieved but have to work within relatively tight resource constraints (e.g. time, funds). Working with executives from various industries, we have found that an abundance of resources can cause decision makers to fund multiple projects and settle for sub-optimal solutions whereas constraints in resources can have either of two rather different effects: (i) When teams have low aspirations they give up or (ii) when they have high aspirations, teams search for ingenious ways to overcome the constraints and meet their objectives. We are now working with different firms to understand how successful firms strike the fine balance to make teams aspire to be more creative while working within resource constraints. After all ‘creative’ is an anagram of ‘reactive’ – reactive to constraints!’ I

ANAXAGO Founded by Joachim Dupont, François Carbone and Caroline Lamaud, former students of Paris Dauphine University and ESCP Europe, ANAXAGO is a crowdfunding platform dedicated to innovative startups and SMEs. Within its first year it has collected €2 million and acquired more than 10,000 members. ANAXAGO was founded in May 2012 and its operating website officially launched in September with the first companies listed on the platform. The project was conceived to create a new source of funding for innovation, halfway between microcredit and risk capital, and to reconcile investment with the real economy by enabling the general public to invest in companies with innovation and growth potential. Each company listed on the platform is selected from among different innovation and entrepreneurship advocates such as incubators, private investments networks, startup contests, etc. Once the company agrees to raise funds through crowdfunding, ANAXAGO conducts a traditional due diligence and prepares the documentation to facilitate the fund raising process. The company then goes online and has 90 days to reach its funding goal or feasibility threshold (75% of the funds) to get funded. Private investors are allowed a starting investment of €1,000. ANAXAGO advisers guide investors and entrepreneurs through the whole investment process. ‘We did not expect crowdfunding to take on so quickly,’ says Caroline Lamaud, ‘but it seems that there is room for a new actor in the current funding landscape. Crowdfunding is not as simple as it looks but it deserves the attention of anyone looking to be an advocate of tomorrow’s growth.’ I

78 - info - november / december

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10 s e p t e m b e r

Research and innovation Climate-KIC is Europe’s largest public-private innovation partnership with a focus on climate change. In a presentation to the Climate Change Forum, Zsolt Gemesi, Deputy Director, Climate-KIC UK and Thanh-Tâm Le, Climate-KIC France outlined its activities and gave examples of projects Climate-KIC is Europe’s largest public-private innovation partnership focused on climate change, consisting of dynamic companies, the best academic institutions and the public sector. Climate-KIC is one of three Knowledge and Innovation Communities (KICs) created in 2010 by the European Institute of Innovation and Technology (EIT). The EIT is an EU body whose mission is to create sustainable growth. We support this mission by addressing climate change mitigation and adaptation. We have centres in the UK, Switzerland, France, the Netherlands and Germany. We integrate education, entrepreneurship and innovation, resulting in connected, creative transformation of knowledge and ideas into economically viable products or services that help to mitigate climate change.

Our activities are driven by eight climate change themes: • Greenhouse gas monitoring • Adaptation services • Making transitions happen • Sustainable cities • The built environment • Land and water • Resource efficiency • Developing a bio-economy Our vision for the future is to provide the people, products and leadership to address the challenge of global climate change. In doing so, we create opportunities for innovators to address climate change and shape the world’s next economy. I

Case study: Blue Green Dream project Around the globe, climate change is starting to have a major impact on city life through rising temperatures, an increase in the risk of floods and droughts and a drop in property values. To find out how urban planners, landscape architects and water experts can work together to sustainably bring down city temperatures, fight water shortages, protect homes and businesses from damage by flooding – and increase biodiversity and save money in the process – Climate-KIC has launched the Blue Green Dream project. The Blue Green Dream project highlights the multiple benefits that could be gained, such as air quality, noise dampening, public health and aesthetic improvements by better integrating water (Blue) and vegetated (Green) infrastructures. Cedo Maksimovic, head of the project on behalf of Climate-KIC points to the natural cooling effect of trees and other vegetation in particular as a potential revolution in urban planning, which would see smart irrigation channels distribute rainwater to trees in order to stimulate evaporation and reduce flooding. ‘Most city trees get fed exactly enough water to survive – if that. By changing that we estimate we can bring down local temperatures by as much as three degrees Celsius,’ Maksimovic says.

On a hot summer’s day, the temperature in a city like London can be six degrees higher than its rural surroundings, Maksimovic points out, stressing that up to 50,000 Europeans are estimated to have died in the 2003 heat wave – a situation where every degree counts. The Blue Green Dream project combines the strengths of a number of Climate-KIC partners, including Imperial College London, Corporation for London and the Institute of Sustainability in the UK, Delft Technical University, Deltares, Alterra, Bosch Slabbers and Arcadis in the Netherlands, TU Berlin in Germany and École des Ponts Paris Tech and Veolia Environnement in France. info - november / december - 79

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entrepreneurs club

11 s e p t e m b e r

Cross cultural challenges and opportunities As a young entrepreneur who moved to London to achieve his vision of opening his own restaurant, Pascal Aussignac, Chef Patron of Club Gascon and a six other restaurants, knows only too well the challenges and opportunities of a cross-cultural environment. He told his story to a rapt audience of entrepreneurs and answered some questions for INFO How did you succeed in staying true to your Gascon heritage while adapting to the UK market?

It was very simple… When we came with Vincent Labeyrie to London, we wanted to promote our region and what it does best, so it was simple to stay true to our Gascon heritage. We didn’t really adapt in terms of taste/ flavours but more in terms of portion size. What were the cross cultural challenges you encountered initially and ongoing?

Of course the language was one of the first challenges: we didn’t expect so many accents for instance. We were also surprised when we found that everything had to be written. Nothing could be done with a verbal agreement. As an entrepreneur and a restaurateur have you been able to do things here in the UK which would not have worked in France?

In 1998, what I was able to do in the UK that I couldn’t do in France was to open our very first restaurant. Additionally, we opened and we were very successful without being backed by any well-known Chefs. As London is becoming such a multicultural, global city is it getting harder to understand who your clients are and their expectations?

We never adapt our cuisine to our clients. We try to intrigue and surprise our guests (and potential guests) with our cooking. The fact that London is changing is not directly affecting us, however (as for the past 15 years) we have to make sure we always deliver very high standards in terms of cuisine or service. This is our daily challenge. How have you as a restaurateur had to adapt to the changing industry?

The market has very much evolved over the years and we had to adapt and take decisions that were 80 - info - november / december

Pascal Aussignac

not originally anticipated. For instance, we decided to transform Comptoir Gascon in a bistro when it originally opened as a deli. The Internet is becoming key to food and restaurants. When we first started, newspapers were the king! Nowadays anyone can say out loud what they think about their experience. This is what makes it challenging, interesting… sometimes even a little bit scary. How did a French Chef come to sell fish and chips to the British? Will you ever take Chip+Fish to France?

It was just a question of opportunity after we won the Best Chips in London in 2007 and after our concept of French Fast Good ‘Croque Gascon’ at Westfield did not work as well as we had expected. So we decided to open a non-concept… Chip + Fish. Will Chip+Fish ever cross the Channel? Well let’s see… but we are not against the idea. What advice would you give to entrepreneurs wanting to start from scratch in a foreign environment?

Believe in yourself. Do not listen (too much) to others. Find the right collaborators: I would never have succeeded so well without my business partner Vincent Labeyrie. I KF and Karim Mijal

f o rt h co m i n g f o ru m s & c lu b s

HR Forum

The Club @ The Pub

When: 6 November, 8:30-10:00am Where: The French Chamber of Commerce Chaired by Rose Gledhill, HR Director – Northern Europe International SOS Theme: Cross cultural challenges and opportunities Open to HR Directors and Managers

When: 19 November, 18.30-20.30 Where: Pullman London St Pancras. The fifth of a series of free, relaxed, after-work evenings, presenting the opportunity to network and exchange with fellow entrepreneurs and SME leaders. Open to all SMEs and Entrepreneurs

Climate Change Forum

Luxury Club Breakfast

When: 12 November, 10:00am-12:00pm Where: The French Chamber of Commerce Chaired by Richard Brown, Chairman, Department for Transport Franchising Advisory Panel. Theme: Staff Engagement. By application only

When: 21 November, 8:30-10:00am Where: Harrods A conversation with Michael Ward, Managing Director of Harrods Theme: The relationship between luxury houses and department stores By invitation only

SME & Entrepreneurs Club

Legal Forum - working session

When: 13 November, 8:30-10:00am Where: The French Chamber of Commerce Co-chaired by Frédéric Larquetoux, Senior Manager, Financial Accounting Advisory Services, EY and Sébastien Delecour, Managing Director of Doublet UK. Theme: Relations with suppliers and providers and brainstorming session about 2014 themes Open to all SMEs and Entrepreneurs

When: 25 November, 9:00-10:30am Where: The French Chamber of Commerce Co-chaired by Michael Butcher and Olivier Morel, Partner & Head of International Corporate Investment, Cripps Harries Hall LLP For more information, please contact Karim Mijal at kmijal@ccfgb.co.uk or 0207 092 6638

f o rt h co m i n g e v e n t s

8 Nov

12.00 - 14.30