None of America's 13-largest publicly-traded homebuilders have "fully embraced the emerging market of sustainable building design and construction," says a new Calvert study.
The reports says K.B. Home, of Los Angeles is "clearly leading the homebuilding industry in terms of environmental sustainability," while four others — K. Hovnanian, Red Bank, N.J., MDC Holdings, Denver, Colo., Standard Pacific, Irvine Calif., and NVR, Reston, VA — are on what the report calls the "sustainability bottom rung."
"Greener Pastures for America's Homebuilders? A Survey of Sustainable Practices by the Homebuilding Industry" used four major green indicators: energy use, building-material use, water use and land use.
It says 12 of the 13 largest homebuilders have committed to building 100 percent Energy STAR homes in certain markets.
However, as of the publication of this report, no major homebuilder has publicly committed to environmental responsibility as a core business strategy.
The Calvert report says "The biggest challenge facing this group is that, for the most part, they have not acknowledged that there is a market for green homes or that they have a role in serving or promoting it."
The report says NVR, Standard Pacific, MDC Holdings and K. Hovnanian — the lowest-ranked builders - "make virtually no mention of the environment on their Web sites or in other reports and have few programs to mitigate their environmental impacts."
Here are the top 13 U.S. homebuilders rated best to worst, according to the study:
1. K.B. Home, Los Angeles
2. D.R. Horton, Fort Worth, Texas
2. Pulte, Bloomfield Hills, Mich.
4. Centex, Dallas, Texas
5. Lennar, Miami, Fla.
6. Ryland, Calabasas, Calif.
7. Beazer, Atlanta, GA
8. Meritage, Scottsdale, Ariz.
9. Toll Brothers, Horsham, Pa.
10. K. Hovnanian, Red Bank, N.J.
11. MDC Holdings, Denver, Colo.
12. Standard Pacific, Irvine Calif.
13. NVR, Reston, VA
"This is a real and growing issue for homebuyers and for investors," says Stu Dalheim, director, Shareholder Advocacy, Calvert.
"As consumers become more educated about environmental options and green residential construction, and as regulators increase incentives for green development and restrict conventional development efforts, some homebuilders may be at a competitive disadvantage if they have not integrated sustainable design and construction principles into their construction.
"In the green building market there is a first-mover advantage: Companies that make a concerted national effort to integrate sustainability into project sites, construction materials, and construction processes, as well as to provide energy, water, and habitat conservation options in finished products, will be able to build a brand image as the environmental choice for home construction.
"This brand will help environmentally conscious consumers make their selection of a homebuilder."