NextGeneration reveals sustainability performance of the UK’s top homebuilders
Telford Homes named the UK’s most sustainable homebuilder according to the NextGeneration 2021 benchmark
NextGeneration, the benchmark which assesses and ranks the sustainability performance of the UK’s 25 largest homebuilders, alongside any smaller homebuilders that wish to participate, has today released its annual report. This names Telford Homes as the UK’s most sustainable housebuilder for the second year in a row.
This year the NextGeneration results were announced at the launch on 16 November, which brought together developers and investors from across the sector.
Within the results, Barratt Developments also exhibited a strong performance, being the highest ranked national homebuilder and coming a close second to Telford. Meanwhile Taylor Wimpey moved up to third from fourth, whilst Hill ascended from ninth to sixth place, notably increasing its score by 14 points. Ranking this highly as a non-listed homebuilder is particularly impressive, as there are fewer mandatory reporting requirements. The benchmark was also excited to welcome Latimer as its first member from a Housing Association group, achieving a commendable ninth place in its first year.
Andrew Day, sustainability director at Telford Homes, said: “Our purpose is to design and develop high-quality, sustainable Build to Rent developments that exceed the expectations of our residents and our investment partners. Accordingly, we are pleased that our Building a Living Legacy strategy and net zero roadmap to 2030, continues to be recognised by the NextGeneration sustainability benchmark.”
The NextGeneration Crystal Award celebrates the homebuilder that meets the most criteria through publicly available information alone. This year’s winner, Barratt Developments, is recognised for the transparency and quality of its sustainability reporting.
Sarah Pratt, Head of Corporate Sustainability at Barratt Developments, said: “We are determined to be the leading national sustainable housebuilder. Our recently refreshed Building Sustainably framework is centred around protecting and enhancing what matters most: the natural world in which we operate, the places we create and our people. And we continue to make solid progress – this year we published our net zero transition plan; launched our zero carbon home prototype; implemented new water efficiency standards and became a signatory of the Social Mobility Pledge.”
Julie Hirigoyen, CEO of the UK Green Building Council, commented: “This report, coming hot on the heels of COP26, provides a timely review of the sustainability of UK homebuilders. As always, we offer our congratulations to the leaders and hope that these businesses are aligned with 1.5C emissions reduction trajectories that bring them in line with the latest science. Because this is no longer about businesses wanting to do the right thing for their licence to operate or long-term survival, this is about short-term corporate survival in a net zero carbon marketplace. It’s time for companies to get on the right side of history and halve their carbon footprints in the next decade if not sooner.”
David Willock, MD & Head of ESG Finance at Lloyds Bank commented: “Improving the sustainability of housing will be vital in helping the UK reach its climate goals and we’ll be by the side of our clients and customers as they drive that transition. This is why at Lloyds Bank we have committed to supporting the creation of national sustainability standards for housebuilding finance and joining the NextGeneration Executive Committee is a key step on that journey. We congratulate those who are improving through the benchmark and encourage more housebuilders to engage with the NextGeneration Initiative."
Emma Hoskyn, UK Head of Sustainability at JLL, said: “Sustainability is a business critical issue that is rapidly changing the finance landscape for homebuilders. With an increasing number of green loans, sustainability-linked loans and green mortgages available, the opportunity to use these mechanisms to limit global warming to 1.5oC has never been more present. Homebuilders now have more tools, knowledge and skills at hand to transform their targets into actions; and those who make the most of these will adapt and flourish to our changing climate and sustainability landscape. The NextGeneration Initiative is one of these tools, which can help by highlighting what best practice sustainability looks like for homebuilders to deliver positive environmental and social outcomes”.
NextGeneration encourages companies to report against a range of criteria that has been developed in collaboration with the industry for over 15 years to support high-quality sustainable homebuilding. The criteria cover: company strategy and governance; reporting; future proofing; environmental site management; minimum sustainability standards; ecology and urban drainage; energy and carbon; water; waste; transport; procurement; health and safety; community and customer engagement; design and placemaking; and economic development.
The NextGeneration process is:
Selection: The largest 25 homebuilders in the UK are selected for benchmarking, based on housing turnover and annual completions. Any homebuilder that wishes to be a member of the benchmark are also included.
Phase 1: All selected homebuilders and members are assessed on publicly available sustainability information, across the 80+ public criteria of the benchmark, covering the ESG spectrum
Phase 2: Members paying an annual subscription provide internal sustainability information to be benchmarked
Results: The marks from each of the homebuilders assessed are collated and published annually within the benchmark.
The criteria are available to the public on the NextGeneration website. All UK homebuilders are encouraged to use them to assess current performance and as a guide to further improve the sustainability of homes and operations.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 95,000 as of September 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.