NextGeneration reveals sustainability performance of the UK’s top homebuilders

NextGeneration, the sustainability assessment system for UK homebuilders has released its annual report. This names Telford Homes as the highest achieving homebuilder for the fourth year in a row.

This year the NextGeneration results were announced at the launch on 7 December, which brought together developers and investors from across the sector.

Telford Homes is the top-ranked homebuilder of the NextGeneration Benchmark for the fourth year in a row, demonstrating its unwavering commitment to improving the sustainability of its homes and operations. Barratt Developments displayed another year of strong performance, retaining its second-place position. Meanwhile, Taylor Wimpey and Latimer came joint third with a score of 71, with increases of 12 and 11 points respectively. Hill also impressed at joint 5th place this year, joint with London Square who increased their score by an impressive 35 points in their second year as a member. The Benchmark was also excited to welcome two new members this year - Vistry Group and Strata Homes - demonstrating an expanding commitment to sustainability reporting within the sector.

John O’Dwyer, Head of Sustainability at Telford Homes said: “With the tragedy of global conflict and the resulting socioeconomic and inflationary pressures that we are all still adjusting to, it is important that the sector maintains focus on decarbonising built assets in line with climate science. At Telford Homes, we are committed to accomplishing our 2030 net zero roadmap ambitions and continue to refine our Building a Living Legacy sustainability strategy to address evolving policy and societal challenges. We see the NextGeneration Sustainability Benchmark as a key component in driving industry standards and are delighted that our efforts continue to be recognised.”

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 PLC said: “At Barratt Developments, we have always believed transparent disclosure is critical to driving improvement of sustainability performance outcomes. We were determined to show leadership through our public disclosures, and are delighted that this continues to be recognised by NextGeneration.”

Simon McWhirter, Deputy Chief Executive of UK Green Building Council said: “In the face of our rapidly worsening climate emergency, the UK’s built environment can’t afford any delay to our sustainability transition. Despite a challenging economic situation, it is clear that the cost of action required today is far less than the costs associated with a climate breakdown tomorrow.

Delivering homes fit for the future is one of the ways in which our sector touches lives and livelihoods like no other. Companies who choose to invest in sustainability are seizing the opportunity to create shared prosperity through innovation, they drive the next generation of green skills and jobs, and play their part in creating better, healthier places to live and work.

 As many developers have put the climate emergency front and centre of their future business models, we know that even more can play a more impactful role in delivering the solutions we need at scale and speed. The NextGeneration Benchmark is a critical tool to help our sector understand where we are and – most crucially – how far we still have to go to achieve the systemic, radical transformations of a net zero, climate-resilient, regenerative built environment.”

David Cleary, Managing Director, Housing Corporate Coverage at Lloyds Banking Group said: “Access to a safe, secure and sustainable home is the foundation for so many of our fundamental human needs. As a society, we owe it to ourselves and future generations to ensure that we build homes that are affordable, sustainable and form the bedrock of great communities. NextGeneration continues to play a leading sustainability role in the sector and I am excited by another year of strong progress, including an increase in membership.”

Robert Stone, Technical Director at Homes England said: “NextGeneration provides a robust and challenging framework that enables homebuilders to demonstrate their commitment to creating sustainable homes and thriving communities. The NextGeneration initiative continues to strive to push the homebuilding sector towards a more sustainable footing year on year. At Homes England, we are pleased to work with all those involved in driving these improvements. I am also delighted to see that the wide range of projects assessed under the Benchmark have been supported through Homes England’s various interventions.”

NextGeneration encourages companies to report against a range of criteria that has been developed in collaboration with the industry for 18 years to support high-quality sustainable homebuilding. The criteria cover: company strategy & governance, reporting, future proofing, environmental site management, design standards, ecology, energy & carbon, water, circular economy, transport, procurement, health & safety, community & customer engagement, design & placemaking, and economic development.

The NextGeneration Benchmark process is:

Selection: NextGeneration selects the largest 25 homebuilders in the UK for benchmarking, based on their housing turnover and annual completions, alongside any further homebuilders interested in benchmark membership.

Phase 1: Homebuilders are assessed on their publicly available sustainability information, against the 60+ public criteria of the benchmark, covering the ESG spectrum. Phase one is weighted as 60% of the overall benchmark.

Phase 2: NextGeneration members paying an annual subscription provide internal sustainability information to be benchmarked. Phase 2 is weighted as 40%.

Results: The marks from each of the homebuilders assessed are collated and published annually within the benchmark. Each Member receives a bespoke presentation of their results, breaking down areas of strength and where there is room for development.

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.