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Lennar Corporation Sustainability Report

Resolved:  Shareholders request that Lennar Corporation (“Lennar” or “the company”) assess its current companywide energy use in its buildings, transportation, and the supply chain, set targets to reduce energy use in the future and report to shareholders (omitting proprietary information and at a reasonable cost) on its findings and progress annually.

Investors increasingly seek disclosure of companies’ social and environmental practices in the belief that they impact shareholder value.  A growing number of investors believe companies that are good employers, environmental stewards, and corporate citizens are more likely to generate stronger financial returns, better respond to emerging issues and enjoy long-term business success.
Mainstream financial companies are also increasingly recognizing the links between sustainability, performance and shareholder value.  Information from corporations on their greenhouse gas emissions, environmental stewardship policies and overall sustainability strategies is essential to investors as they asses the strengths of corporate securities in the context of climate change and increased public awareness or corporate social and environmental responsibility.  This is reflected in the growth of investor coalitions such as the Investor Network on Climate Risk (INCR), which represents over 100 investors with more than $10 trillion in assets under management.  Such investors require comprehensive information on material ESG (environmental, social and governance) factors to analyze fully the risks and opportunities associated with existing and potential investments.
As such, it is not surprising that other major homebuilders such as KB Homes have taken leadership roles in this area through the publication of comprehensive sustainability reports that address company impacts with regards to greenhouse gas emissions, environmental stewardship, water use, and other related considerations.
Further, as concerns about rising energy prices, climate change and energy security continue to arise, we believe a focus on energy efficiency is necessary for home builders to remain competitive.  In fact, studies by the CoStar Group, Maastricht University, The University of Arizona, and others have found that LEED and ENERGY STAR buildings can command sales premiums.  Ignoring this quickly growing trend could position our company as an industry laggard and expose it to competitive, regulatory and reputational risks.
We recommend that the Company use the Global Reporting Initiative’ Sustainability reporting Guidelines to prepare the sustainability report.  The Global Reporting Initiative (GRI, ) is an international organization developed with representatives from the business, environmental, human rights and labor communities, and their guidelines provide a flexible reporting system that allows the omission of content that is not relevant to company operations.  The GRI provides a supplement to its reporting framework that is specifically geared toward the construction and real estate sectors.
PLEASE VOTE YES, on this important shareholder proposal.