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Deloitte Legal announces new head of Legal Management Consulting

Deloitte Legal has today announced the appointment of Jack Diggle as lead partner for its Legal Management Consulting (LMC) arm.

Joining this month, Jack is responsible for expanding Deloitte Legal’s offerings in this space by developing new capabilities and building on Deloitte Legal’s existing technology, change and operations teams. Jack was previously vice president and global head of consulting at alternative legal services provider Elevate Services. He also headed up legal transformation at Barclays, leading the strategic change agenda for its in-house legal department.

In addition, Craig Conte and Tom Birdseye will be joining to help build out Deloitte Legal’s consultancy offerings to in-house legal teams, contracting functions and law firms. Craig Conte is a globally renowned expert in contract management and consulting using technology and a range of legal managed services. A qualified lawyer with more than 20 years’ experience spanning a number of US law firms and geographies, Craig’s recent roles include being global head of contracts consulting at Elevate and head of the contracts and commercial management service line at Capgemini.

Tom Birdseye is a legal management consultant with over 20 years’ experience in change and transformation. He will focus on expanding Deloitte Legal’s work with both in-house legal teams and law firms seeking to increase the efficiency and effectiveness of their operations. Most recently he was head of EMEA consulting at Elevate and prior to this he was global head of change management at Freshfields Bruckhaus Deringer.

The appointments follow the firm’s hiring of Emily Foges to head up its Legal Managed Services business, announced earlier in the summer.

Michael Castle, UK managing partner at Deloitte Legal, commented: “Today’s world requires a new approach to the delivery of legal services. Now more than ever, legal departments are having to address the challenge of dealing with increasing complexity and demand with the same or fewer resources.

“Jack, Craig and Tom have a wealth of experience between them which will help these departments and contracting teams rethink their operating models, achieve greater efficiencies and increase the value they deliver back to the business. They are recognised market leaders and these appointments will ensure that Deloitte Legal continues its commitment to provide new and integrated solutions for clients.”

Jack Diggle, lead partner for legal management consulting at Deloitte Legal, added: “General Counsel and legal departments are facing multiple challenges: a heightened regulatory environment, increased workloads and the acceleration of new digitally-enabled, agile operating models.

“By focusing on people, processes and technology, it is possible for legal and contracts teams to work in a smarter way to meet the challenges that lie ahead. I am looking forward to building on Deloitte Legal’s experience in this space and helping our clients’ legal operations.”

Globally, Deloitte Legal is made up of more than 2,500 professionals operating in more than 80 countries.

Deloitte Legal has more than 250 people in the UK, delivering technology-enabled legal solutions in areas such as employment, litigation, corporate and commercial and immigration, including more than 85 client-facing practicing lawyers.

Beatriz Araujo appointed Fellow by the World Economic Forum

Leading global law firm Baker McKenzie has announced that Beatriz (Bea) Araujo has been appointed as a Fellow to the World Economic Forum’s Platform on Shaping the Future of Investing. She will form part of a coalition of over 100, including companies, policy-makers, pension funds, asset managers and insurance companies, to drive consensus on investment reforms that address global challenges.

Bea is a partner based in Baker McKenzie’s London office and has more than 35 years of experience leading on and advising clients on business critical transactions and matters. Her practice focuses on corporate governance best practices, including board advisory, director duties, stakeholder governance and subsidiary governance, for both UK companies as well as global groups. She has supported the World Economic Forum as an expert on governance projects and has written various articles on corporate governance topics, most recently a White Paper in collaboration with the World Economic Forum on “The Modern Dilemma: Balancing Short- and Long-Term Business Pressures.” In her new role, Bea will have a number of responsibilities, including:

  • Creating institutionally valuable and relevant content and bring it to Forum’s most prominent communities;
  • Guiding the platform content around stakeholder capitalism and its impact on governance;
  • Guiding specific platform projects like “Future of the Corporation” in context of the Fourth Industrial Revolution (“4IR”) and the current pandemic situation;
  • Contributing to forthcoming Forum publications for the platform.

Speaking after the announcement, Bea said, “I am honoured to have been appointed as a fellow by the World Economic Forum’s leadership, having collaborated with the Forum for many years, both during my time serving on Baker McKenzie’s Executive Committee, and subsequently as the Firm’s leader on Corporate Governance. I hope to bring my years of expertise in to help shape the conversation on the future of governance as part of the Forum’s Great Reset.”

“The impact of COVID-19 has affected industries around the world and given new importance to sustainable investing. Public private cooperation is needed now more than ever in the investing industry,” says Maha Eltobgy, Head of the Future of Investing, World Economic Forum. “We are eager to work with top companies such as Baker McKenzie on the opportunities and challenges ahead.”

Heat decarbonisation would spur UK’s green economic recovery

A new report published by the Net Zero Infrastructure Industry Coalition explores the scale of infrastructure change needed to achieve net zero heat. The challenge is such that urgent action is required, but the transition to net zero heat offers tremendous opportunities and could lead to the development of completely new industries offering large scale employment and economic growth across the UK.

Written by a group of forward-thinking UK businesses and public sector organisations, The Path To Zero Carbon Heat report provides pathways for decarbonising the heating of Britain’s homes and workplaces by 2050 – responsible for 20% of the UK’s greenhouse gas footprint. It presents three possible scenarios and highlights the need for government to make early decisions about the paths to take and set supporting regulation:

  1. The electrification of heat, replacing natural gas, together with electric vehicles replacing petrol and diesel, will lead to an almost quadrupling of total electricity capacity to 400GW in 2050, up from 110GW today, including a more than five-fold increase in wind and solar generated electricity from 37GW today to 170GW in 2050.
  2. A hydrogen led scenario for heating is reliant on the rapid development and demonstration of new hydrogen technology across all aspects of the energy system within the next five years. This will then require creating and scaling of hydrogen production and transmission to produce 100GW to supply over 15 million homes plus non-domestic users. Electricity capacity will still more than double, owing to the electrification of personal transport, to 250GW.
  3. A hybrid approach will potentially reduce the scale of new infrastructure needed but has much greater system complexity and optimisation challenges. It will still mean an almost three-fold increase in electricity capacity to 280GW by 2050, in addition to between 20GW and 30GW of hydrogen production. The hybrid approach offers the potential to reduce electricity capacity by 25% in comparison to the electrification scenario, and hydrogen capacity by at least 70% in comparison to the hydrogen scenario.

Anne-Marie Friel, infrastructure partner at Pinsent Masons said, “Decarbonising Britain’s infrastructure will unleash a wave of new investment, growth and employment. Government needs to seize this opportunity and accelerate policy and regulation as key enablers.”

The report does not prescribe a specific route to net zero heat, but all scenarios considered present challenges. All require taking technologies such as CCS and auto-thermal reforming from pilot stage or infancy, through to readiness in the late 2020s, through to mass deployment starting in 2030 and continuing to 2050. This represents an enormous challenge in infrastructure deployment previously unseen in the UK.

The development of infrastructure will need to be accelerated quickly and maintained. For example, the massive scale of electrical generation capacity as part of the electrification scenario represents deployment of renewable technology at close to 10GW/year – scales of deployment with few historic precedents. Deployment for end user heating systems themselves will also happen at a tremendous rate with conversions of over one million sites in each year in some scenarios.

The changeover to Net-Zero heat requires a complex mixture of national, regional and city involvement, systems thinking and extensive digitalisation. Getting this mixture right could radically reduce cost and delivery times, and requires all stakeholder to take action in the near term.

New skills need be developed, with a refocus of existing expertise. This will require a change in mindset, to think ahead of time and put in place the infrastructure to develop those skills.

Ross Ramsay project manager for the coalition said: “The technology, skills and know-how to decarbonise heat will be in demand globally. This scale of investment in decarbonising the heating of over 25 million UK homes, plus non-domestic buildings, will create new industries, jobs and apprenticeships at scale, and place Britain at the forefront of the race to Net Zero.”

Our report chimes with the findings of the CBI’s (the CBI have been part of the steering group for this project) own forthcoming report on net-zero heat which also highlights the requirement for urgent action and the potential opportunity of green recovery,” Ross continues.

The Path To Zero Carbon Heat has been led by Mott MacDonald with support from a working group comprising Energy Systems Catapult, Engie, Leeds City Council, National Grid, Pinsent Masons, Delta-EE, University of Leeds, the UK Collaboratorium for Research on Infrastructure and Cities (UKCRIC) and the UK Green Building Council.

Deloitte publishes its Black Action Plan

Deloitte UK has published its Black Action Plan. The plan, launched today via a firmwide webinar to 20,000 of Deloitte’s people hosted by Richard Houston, UK CEO, and Dimple Agarwal, deputy CEO and managing partner for people and purpose, is based on five key commitments that align to the firm’s global shared values of inclusion and taking care of each other.

Deloitte has responded to the Black Lives Matter movement by hosting a series of listening sessions for its people across all parts of the firm. These sessions included hearing from and understanding the experiences of Black colleagues. A firmwide working group was formed to work closely with the leadership and develop the actions.

Dimple Agarwal, deputy CEO and managing partner for people and purpose at Deloitte, said: “Over the last month we have listened, learned and started an important journey with people across the firm and with our Black colleagues. The stories, feedback and comments have brought home the difficult truth that bias and racism are widespread in our society.

“While we’ve made progress on our wider inclusion agenda over recent years, it is absolutely clear that we need to do more. Today we are going beyond listening and we are committed to the lessons we have learnt. This is a considered plan that will deliver concrete actions.”

The Black Action Plan is based on five key commitments. Each action comes with meaningful and measurable objectives that ensures Deloitte will:

  • Provide equal opportunities: Deloitte will review every step of the employee lifecycle – from how it attracts and recruits talent, through to promotion and pay processes to ensure Black and Ethnic Minority colleagues are treated fairly.
  • Focus on developing people to succeed and thrive: Deloitte will design and deliver development programmes that support its Black and Ethnic Minority colleagues to thrive and become leaders of the future.
  • Drive and evolve culture and behaviours: Recognising that achieving real and meaningful change requires everyone to think and act differently, Deloitte will implement cultural change that starts with education and understanding. This will include rolling out a mandatory training programme on ethnicity and race, and launching a Black Allies programme within the firm.
  • Influence change: Deloitte will continue to use its network to help bring about social change – working with clients, industry peers, charity partners and suppliers. This will include developing a relationship with a new Black charity partner and expanding the portfolio of Black-owned social enterprises it works with.
  • Measure and report on targets and outcomes: Deloitte is committing to 12% of Ethnic Minority and 3% of Black partners by 2025. The firm will also commit to targets across other grades to create the future pipeline. Leaders will be held accountable for these targets.

“The impact of all of these actions together will be bigger than the sum of their parts – such as race training for all of our people focusing on micro-aggressions and conscious inclusion,” added Agarwal. “Not only will it add up to a fairer and more positive overall experience for our people but for the communities in which we work.”

Deloitte’s Multicultural Network was created 14 years ago along with 10 other diversity networks. The network supports the firm’s focus on ensuring that it provides an inclusive culture that is underpinned by respect.

Nadine Dyer, co-chair of the Multicultural Network at Deloitte, said: “This action plan is an important step in the right direction. We have listened and talked, discussed and planned and now it’s time for meaningful action. All of our people across the firm will have the responsibility of taking this plan forward and bringing it to life.”

Agarwal concluded: “I want to personally thank my colleagues who have shared their stories so courageously and provided honest feedback to me. I have been humbled, saddened and shocked by what I’ve heard. We are deeply committed to this action plan and the wider commitment by the firm that we can, and will, make a change.”

Deloitte comments on ONS retail sales

In this press release references to “Deloitte” are references to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”) a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity.

Commenting on today’s ONS retail sales figures, Ian Geddes, head of retail at Deloitte, said: “Retail sales continued to struggle in May, despite both values and volumes rising by 11.8% and 12% compared to April. In a month that saw two bank holiday weekends, some easing of outdoor social gatherings, and warmer weather for many, retailers may have been looking for the first green shoots of recovery to make up for lost ground in March and April.

“Overall food sales values were flat, at +0.3% month-on-month, but, whilst grocers may have hoped for stronger food sales in what is traditionally the start of barbecue season, online grocery sales remain strong, up by 21.1% compared to April and now accounting for 11.3% of all food sales. More encouragingly, non-food sales are up month-on-month in both value (+24.2%) and volume (+23.7%) for the first time since lockdown, which, for some, will mark the early signs of ‘normality’ for this time of year. However, 41.5% of non-food sales occurred online in May, up from 15.8% in February 2020 before lockdown.

“A wider disparity between online and in-store sales remains this month in spite of garden centre and hardware store re-openings. Total online sales stood at 33.4% this month, beating April’s record sales, though this is unlikely to have offset sales usually seen in-store over this period. In addition to household goods, purchases have also likely been driven by beauty products and, more notably, clothing items as many consumers continue to work from home, with an increased requirement for video conferencing and a more relaxed ‘work’ wardrobe.

“Looking ahead, as non-essential retailers begin to phase-in store reopening plans, some consumer anxiety will remain. During lockdown, consumers have pivoted to fewer but bigger food shops. Whether this trend will also translate into non-food remains to be seen. For retailers, there are two options: a difficult balancing act to between re-creating a familiar shopping experience whilst implementing and maintaining strict new hygiene practices, or innovating and re-inventing the shopping experience for a post-COVID-19 world. Deloitte data shows that 46% of UK consumers currently feel safe visiting a store, but building on this confidence will be key for drawing more shoppers back to the High Street over the coming months.”

£14.7 billion raised in secondary offerings since the start of the year

Overall secondary offerings have reached £14.7 billion across 135 transactions in the UK for the year to date, according to new analysis from Deloitte. A secondary offering refers to the sale of shares in a listed company occurring after a company’s IPO, with the transaction taking place through either London’s Main Market or AIM.

Prior to the lockdown in the UK, the amount of money raised in January and February 2020 was almost twice that of the same period in 2019 (£3.4 billion vs £1.9 billion), signalling increased business optimism. Despite a drop in March, April and May both saw elevated levels of equity fundraising in London.

Chris Nicholls, Head of Equity and PLC Advisory at Deloitte, said: “The UK market has very much been open for existing listed companies seeking additional equity capital, including those from the retail and hospitality sectors. Typically this has been to strengthen balance sheets and improve liquidity in the wake of the pandemic. I would expect fundraising activity to continue into the rest of the year, albeit with only a modest trickle of IPOs.”

Since 23 March this year, the FTSE 100 and S&P 500 have risen 29.8% and 42.8% respectively, boosted by the gradual reopening of world economies and bold government and central bank stimulus measures. However, volatility levels remain elevated compared to long-term averages with the global VIX Index currently in the region of 24, substantially higher than the 2019 average of approximately 15.

Chris Nicholls concludes: “Whilst volatility has substantially reduced from March levels, any VIX reading above 20 traditionally represents a difficult environment in which to launch IPOs. However, global equity markets are recovering strongly from the unprecedented shock to the economy caused by COVID-19.”