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D.R. Horton Greenhouse Gas Emissions 2012

The Intergovernmental Panel on Climate Change (IPCC) has concluded that warming of the climate system is unequivocal and that human activity is the main cause. As a result, debate surrounding climate change now focuses not on whether a problem exists, but rather on the best means for abatement and adaptation.
 
The IPCC report, Climate Change 2007: Impacts, Adaptation and Vulnerability, concludes, “Taken as a Whole, the range of published evidence indicates that the net damage costs of climate change are likely to be significant and to increase over time.” The Stern Review, often cited as the most comprehensive overview of the economics of climate change, estimates that the overall costs of climate change will be equivalent to losing at least 5% of global GDP each year now and into the future. In addition, the consequences of a rise in global temperatures are expected to have significant adverse impacts and important economic implications for select markets and industries, including companies in the homebuilding industry, whose products can have relatively large carbon footprints.
 
Architecture 2030, a non-profit, non-partisan, independent agency, reports that the building sector as a Whole accounts for nearly half of domestic energy consumption each year. The building sector also accounts for 46.9% of total annual GHG emissions in the US. The EPA estimates that the residential end-use sector accounted for 22% of CO2 emissions from fossil fuel combustion in 2009. With residential end-use accounting for such a high proportion of GHG emissions stemming from fossil fuel combustion, a number of studies appearing in The McKinsey Quarterly have focused on energy efficiency improvements in residential dwellings as a potential source of emission reductions. These studies note in particular that the residential sector represents the single-largest opportunity to raise energy productivity and that nearly a quarter of costeffective GI-IG abatement potential involves efficiency enhancing measures geared at reducing demand in the building sector.
 
A growing number of investors are requesting increased corporate disclosure to better understand the business implications of climate change and other environmental business practices of companies in their investment portfolios. This includes a consideration of how climate change might affect a company’s profitability. Through the requested evaluation and reporting process, D.R. Horton can identify gaps and develop quantitative goals for improved business practices that could lead to a significant competitive advantage, and/or avoid unnecessary future costs that could adversely affect the Con1pany’s profitability. '
 
Resolved: Shareholders request that the Board of Directors adopt quantitative goals, based upon available technologies, for reducing greenhouse gas emissions from the Con1pany’s products and operations and report to shareholders by December 31, 2012 on plans to achieve these goals. Such a report will omit proprietary information and bee prepared at reasonable cost.