The NextGeneration Criteria

NextGeneration are excited to release the criteria of the benchmark to the public in a drive to increase transparency and improve sustainability performance in the homebuilding sector.

The NextGeneration benchmark criteria cover the following 15 focus areas: 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. These focus areas are weighted based on their overall impact in terms of industry best practice and future trends, design & placemaking currently forms the highest weighted section of the benchmark. The criteria is evaluated and updated on a three-year rolling period to remain pertinent to the ever-evolving sustainability sector, while enabling homebuilders to benchmark their progress over time.

NextGeneration hopes that providing access to this criterion will encourage corporate transparency and help homebuilders improve their sustainability performance, while providing a holistic framework for tackling a wide range of sustainability issues.

Please click on the link below to access the NextGeneration benchmark criteria homebuilders are assessed against.

The 2021 NextGeneration Benchmark

Homebuilders are facing increasing consumer, investor and policy pressures to deliver more homes, more sustainably. The simultaneous growth of green finance initiatives is a welcome encouragement to homebuilders to deliver greater sustainability. Favourable funding terms, including reduced interest rates and higher loan to value ratios, are available to companies and projects that meet agreed sustainability targets. This is resulting in green incentives for leaders, while laggards risk difficulties maintaining market access.

The 2021 Report reveals the results of the NextGeneration Benchmark and highlights how sustainability performance and finance are increasingly entwined.

To access the full report, please click the link below.

Sustainability Benchmarks

What is benchmarking?

Benchmarking is the process by which companies compare their performance against a recognised external standard (“a benchmark”). In “benchmarking clubs”, like NextGeneration, companies can also compare their performance against their peers. Benchmarking is commonly used in all industries to enable companies to better understand their current performance, set improvement targets and share best practice for mutual advantage.

What does NextGeneration benchmark?

The benchmark is carried out in two phases: Phase 1 where publicly available information is reviewed and Phase 2 where members can increase their score by providing evidence of activities that are not discussed in public reports.

How are the benchmarking criteria decided?

Each year, a set of benchmarking criteria are created by Jones Lang LaSalle, as Secretariat of NextGeneration, in consultation with the Executive Committee and homebuilders who are participating in the benchmark. The benchmarking criteria are based on best practice standards and guidance, often produced or endorsed by central and local government or third party organisations, such as charities or research organisations. The criteria are designed to be challenging and go beyond statutory minima or standard practice.

Member services

NextGeneration membership provides the following benefits:

• A more accurate assessment of your performance: An additional Phase 2 audit means members can increase score by providing evidence of activities that are not discussed in public reports.
• Expert advice on how to improve your performance: Each member receives a bespoke results presentation that includes peer gap analysis and advice on the next steps for improvement.
• Access to thought leadership, innovation and shared learning events and network: Three member events provide briefings on emerging sustainability trends and innovation.
• Promotion of your approach to sustainability to primary stakeholders: A launch event and public report promotes members approach to investors, the Homes England, Registered Housing Providers, local authorities, communities, customers and employees.

NextGeneration Executive

The NextGeneration Executive Committee provides core funding to the initiative and comprises its main governance body. This committee’s role is to ensure the integrity and transparency of the initiative.

The Executive Committee is made up the Homes England, Lloyds Bank and the UKGBC while JLL is the secretariat.

Click here for the Terms of Reference for the Executive Committee.