Company: LEN
Filing Date: 2025-02-28
Form Type: DEF 14A
Source: 0001193125-25-040938
Chunk: 84

Company: LENNAR CORP /NEW/
Filing Date: 2025-02-28
Form: DEF 14A
Chunk 84
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-supplied emphasis) and the stockholder’s supporting statement as it was provided to us by the stockholder. All statements contained in a stockholder proposal and supporting statement are the sole responsibility of the proponent of such stockholder proposal. Following the proposal, we provide the Board’s recommendation to vote “AGAINST” the proposal. WHEREAS:Lennar, a leading residential construction company operating across 26 states, faces the challenge of preserving home affordability while complying with a growing number of climate-related regulations. By creating a systematic, forward-looking plan to reduce energy use in its homes, Lennar will not only mitigate regulatory risk, but also increase its competitiveness by meeting customer demand for affordable green homes. The residential sector, which accounts for nearly 20% of total U.S. energy consumption, is facing an increase in climate protective regulations. 1To date, seven states in which Lennar operates have ratified municipal or state-wide policies that limit the use of fossil fuels in buildings. 2Five of those states are in Lennar’s western segment which generated 37% of the Company’s home sale revenue last year. 3The federal government has also released updated energy efficiency standards for the construction of new single and multi-family homes which will impact up to a quarter of all new homes nationwide. 4 Per Lennar’s 2023 10-K,“regulations intended to reduce greenhouse gas emissions or potential climate change impacts are likely to result in restrictions on land development in certain areas and may increase energy, transportation, or raw material costs, which could reduce our profit margins and adversely affect our results of operations”. 5 To date, Lennar has not disclosed how it plans to successfully meet these planned climate protective regulations. Our Company includes some low-carbonfeatures in its homes, but it remains unclear to investors whether management has developed an enterprise-wide strategy to reduce its carbon emissions while capitalizing on the increasing sales opportunities related to energy-efficient homes. 6 Meanwhile, Lennar’s peers are setting goals to drive energy efficiency, preparing to meet new and future climate-related regulations, and reducing the operational cost of homes for their customers. For example, competitor KB Home set a target to reach a specific energy efficiency score in its buildings by 2025. 7This achievement will save KB Home’s customers nearly $1,000 annually on utility bills, a significant selling point. 8By adopting and disclosing a more proactive and systematic approach to mitigate climate-related risk, Lennar can give investors confidence that it is