DD2580 Infrastructure Policy 2022/23 Expenditure

Infrastructure decarbonisation

1.1. The Mayor has committed to London reaching net zero by 2030 to reflect the increasing severity of the climate crisis. In January 2022, the Mayor published a new net zero report which analysed four possible pathways to meet the 2030 target. In response to the report, he selected a preferred pathway to net zero by 2030 - the Accelerated Green pathway.

1.2. The acceleration of climate mitigation action in London will require substantial change in the city at a much faster pace than Government’s 2050 national timeframe. The need for accelerated activity has impacts for the GLA Infrastructure team in its work with London’s utility providers who will need to make crucial investment decisions and significant physical changes to their assets and infrastructure to meet the 2030 goal.

1.3. As the GLA moves into its implementation phase around decarbonisation, the Infrastructure team is well placed to collaborate with external stakeholders specifically around infrastructure decarbonisation, contributing through its existing relationships with utilities and effective delivery arrangements that are already in place through the Infrastructure Coordination Service (ICS), and governance through the Mayor’s London Infrastructure Group (LIG).

1.4. Three packages of work have been identified to support infrastructure decarbonisation in London:

• Package 1: Pathway implications – In light of the Mayor’s preferred Accelerated Green pathway, it is crucial to understand in detail the delivery implications of this pathway. The scale of change required is unprecedented and utilities have called upon the Mayor to provide support in coordinating activity and investment through the ICS, and its services across Streets, Planning, Development and Data projects. This package of work will develop an understanding of the impact of the preferred pathway on the road network as a result of necessary infrastructure changes that will be needed, and disruption that will be caused as a result of utilities’ streetworks and other interventions required, so that the ICS can support providers to minimise disruption and deliver these works as efficiently as possible.
• Package 2: Overcoming barriers – Utilities in London will need to start now to alter their assets, operations, and business plans to achieve net zero by 2030. In addition to helping the utilities mobilise through the ICS’s on-the-ground delivery mechanisms, there are opportunities for GLA Infrastructure to undertake work that would identify and unlock barriers and mitigate potential risks towards decarbonisation. This includes regulation that can impede utilities from investing ahead of demand, and the costs associated with working in London in relation to the level of funding received from regulators to decarbonise networks.
• Package 3: Optimising impact – Beyond looking at barriers, there are opportunities for GLA Infrastructure to help ensure steps toward decarbonisation are as effective as possible by exploring ways to maximise their impact and avoid lost opportunities. This package of work seeks to develop recommendations that guide utilities companies, property owners, and other actors to ensure decarbonisation measures are coordinated and timed in a coherent manner. It could also consider how the planning system can make best use of existing levers through Local Plans, Local Area Energy Planning (LAEP) and development application processes.

1.5. This Decision seeks approval for expenditure of £30,000 from the 2022/23 budget to part fund the delivery of the ‘overcoming barriers’ package.

1.6. Specifically, this will fund a piece of work investigating the extent to which, as utilities have told us, it costs more to undertake works in the capital than in other parts of the UK. For London’s utilities to receive the right allocation from regulators to decarbonise, it will be important for regulators to understand the true costs of this work. A supplier will be procured to conduct this analysis, in accordance with the Contracts and Funding Code.

1.7. In addition to this GLA funding, the ICS will contribute external funding, approved through MD2880, toward the work packages above where the work being undertaken aligns with the objectives of the ICS, the priorities of its external funders, and the work the ICS has committed to deliver in its Expansion Phase.

Equalities, Diversity, and Inclusion (EDI) in the utilities and infrastructure sector

1.8. In 2020, the Mayor of London and the LIG, published a report that identified the key challenges to employing and retaining talent from across London’s diverse population. In response to the findings, the LIG and GLA committed to delivering on four pledges that all seek to improve diversity and inclusion across the sector:

• develop and facilitate a network of professionals committed to improving diversity and inclusion in the infrastructure sector
• reach every primary school in London to highlight potential careers in the infrastructure sector – promoting the sector more widely and highlighting pathways into the sector for underrepresented groups from an early age
• facilitate reverse mentoring – either internal or cross-company – with a diverse range of employees and senior leaders to increase retention and facilitate a more inclusive culture
• collect consistent, high-quality data on diversity and inclusion across the infrastructure sector.

1.9. Since then, good progress has been made through a LIG HR/EDI sub-group which convenes three times a year to progress the EDI pledges. This has included the launch of a primary schools outreach programme that is being delivered in collaboration with the GLA’s Workforce Integration Network (WIN) to showcase potential careers in the infrastructure and construction sector to parents and pupils in Years 5 and 6.

1.10. The proposed expenditure of £40,000 aims to deliver on the third pledge which seeks to increase the retention of a diverse workforce by piloting and facilitating a cross-sector reverse mentoring programme for underrepresented individuals working in infrastructure and construction. Cross-sector reverse mentoring is far less common than reverse mentoring within sectors. A supplier will be procured to deliver a one-off pilot programme which would run for approximately 8 months until end of 2022 with a cohort size of approximately 20 pairs. It is expected that positive outcomes of a cross-sector reverse mentoring approach could include:

• younger employees’ exposure of different opportunities across the infrastructure sector and widening perspectives of senior leaders to the issues faced by the younger generation of infrastructure leaders and how to support them
• breaking down barriers faced in traditional mentoring of organisational culture and making mentoring a senior leader less intimidating (where they are not your direct boss) and promoting cross-fertilisation of ideas
• creating opportunities for networking and knowledge sharing
• increasing talent retention of a diverse range of individuals in the infrastructure sector by providing greater levels of support to a diverse range of younger employees.

1.11. Based on this, it is felt the GLA is in a good position to add value in the infrastructure diversity and inclusion space by trialling this novel approach and providing learning back to the sector.

2.1. The infrastructure decarbonisation workstreams set out above supports the delivery of the Mayor’s net zero by 2030 target from a utilities perspective by developing an understanding of the implications on London’s streets and infrastructure network. This would underpin our understanding of the policies, funding and steps required to support utilities and delivery partners in reaching this target.

2.2. Working in partnership with London’s main utilities and infrastructure providers, GLA Environment, TfL, and other relevant teams in the GLA, the workstreams above deliver the following objectives:

• provide additional information that identifies the implications and opportunities associated with the Mayor’s preferred pathway, particularly from an energy and utilities infrastructure perspective.
• use the Mayor’s convening power and existing relations with utilities through the LIG and ICS to identify opportunities to facilitate collaboration, optimise delivery and reduce disruption.
• explore avenues for the Mayor to lobby Government to take necessary decisions, and other steps within his preferred pathway, more quickly than Government would otherwise do so.

2.3. The mentoring programme delivers on the third EDI pledge that the Mayor and members of LIG committed to following recommendations in the GLA’s Supporting Diversity and Inclusion in the Infrastructure Sector (Feb 2020) report. The objective of the programme is to increase retention of underrepresented employees and facilitate a more inclusive culture.

2.4. It is intended that the pilot programme would help by demonstrating the importance of diversity and inclusion at the most senior level and allowing more junior colleagues to gain visibility and build relationships with the leadership team.

2.5. Approximately 20 matched pairs, with 10 mentors and mentees from 6 different organisations will be targeted to participate in the pilot programme. The proposed cohort size would allow us to understand more about the potential benefits of cross-sector reverse mentoring, with a view to informing whether such an approach can be scaled-up and expanded. The appointed supplier will also be required to gather information throughout the programme and propose how impact will be assessed to extract lessons learnt and determine what has been most effective.

3.1. Under section 149 of the Equality Act 2010, the Mayor and GLA are subject to the public sector equality duty and must have due regard to the need to: eliminate unlawful discrimination, harassment, and victimisation; advance equality of opportunity between people who share a relevant protected characteristic and those who do not; and foster good relations between people who share a relevant protected characteristic and those who do not.

3.2. The “protected characteristics” are age, disability, gender re-assignment, pregnancy and maternity, race, religion or belief, sex, sexual orientation, and marriage/ civil partnership status. The duty involves having appropriate regard to these matters as they apply in the circumstances, including having regard to the need to: remove or minimise any disadvantage suffered by those who share or is connected to a protected characteristic; take steps to meet the different needs of such people; encourage them to participate in public life or in any other activity where their participation is disproportionately low. This can involve treating people with a protected characteristic more favourably than those without one.

3.3. The EDI workstreams explicitly seeks to support underrepresented Londoners. The cross-sector reverse mentoring programme seeks to improve the retention of a diverse workforce by working with individuals working in the infrastructure and construction sector on a pilot approach to mentoring which was recommended in a report commissioned by the GLA on Diversity and Inclusion.

3.4. The team will set out EDI criteria, and are already in conversation with TfL Procurement, to ensure the supplier appointed demonstrates company commitment to EDI. A reserved contracts approach for small and medium-sized enterprises (SMEs)/Voluntary Community and Social Enterprises (VCSEs) and by supplier location supports local suppliers and ensures a level playing field of opportunities for more local and diverse suppliers.

3.5. In line with the Mayor’s ambitions, the infrastructure decarbonisation work aims to understand the impacts of the Mayor’s preferred pathway and ensure all Londoner’s have access to essential services and are not disproportionately impacted by disruption. Reducing disruption on the road network creates benefits like reducing noise and improving air quality, which are issues that can severely affect the quality of life in neighbourhoods with the most vulnerable residents.

3.6. Infrastructure and development works often reduce the accessibility of roads and the public realm, having a negative impact on several groups with protected characteristics. The proposed studies aim to understand and minimise impacts on these groups by actively ensuring their needs are considered at an early stage. Identifying opportunities to minimise streetworks disruptions by understanding the impact of the scale of change required to meet the Mayor’s net zero by 2030 target and working collaboratively to deliver these changes will also have longer term positive benefits in helping to improve accessibility across London.

4.1. Infrastructure decarbonisation

4.2. Cross-sector reverse mentoring programme

4.3. Links to Mayoral strategies

4.4. No one involved in the drafting or clearance of this document has any conflicts of interest to declare.

5.1. Approval is sought for the expenditure of up to £ 70,000 to fund studies and analysis that support the delivery of infrastructure decarbonisation in London (£ 30,000), specifically focused on the cost of utility works in London and the costs of implementing a cross-sector, reverse mentoring programme (£ 40,000).

5.2. The expenditure above will be supplemented by external funding from the ICS through an approved decision (MD2880) to support additional work packages around infrastructure decarbonisation.

5.3. This expenditure will be funded from the approved 2022-23 budget for Infrastructure Investment/Policy.

6.1. The foregoing sections of this report indicate that the decisions requested of the Executive Director in accordance with their delegated authority granted under MD2880 concern the exercise of the GLA’s general powers; falling within the GLA’s statutory powers to do such things considered to further or which are facilitative of, conducive or incidental to the promotion of economic development and wealth creation, social development and the improvement of the environment in Greater London; and in formulating the proposals in respect of which a decision is sought officers have complied with the GLA’s related statutory duties to:

• pay due regard to the principle that there should be equality of opportunity for all people;

• consider how the proposals will promote the improvement of health of persons, health inequalities between persons and to contribute towards the achievement of sustainable development in the United Kingdom; and

• consult with appropriate bodies.

6.2. In taking the decisions requested, the Executive Director must have due regard to the Public Sector Equality Duty; namely the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010, and to advance equality of opportunity between persons who share a relevant protected characteristic (age; disability; gender reassignment; marriage and civil partnership; pregnancy and maternity; race; religion or belief; sex; sexual orientation) and persons who do not share it and foster good relations between persons who share a relevant protected characteristic and persons who do not share it (section 149 of the Equality Act 2010). To this end, the Executive Director should have particular regard to section 3 (above) of this report.

6.3. All procurements of works, services and supplies required for the project must be procured in accordance with the GLA’s Contracts and Funding Code (the “Code”) and, where the value exceeds £150,000, in accordance with the Public Contracts Regulations 2015 (the “Regulations”). Furthermore, the officers must liaise with Transport for London’s procurement and supply chain team, which will determine the detail of the procurement strategy to be adopted in accordance with the Code and the Regulations. Officers must ensure that appropriate contractual documentation be put in place and executed by chosen service provider/supplier and the GLA before the commencement of the attendant works, services or supplies.