Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Business Ethics
• Risk Management
• Home Affordability
• Community Impact
• Diversity, Equity & Inclusion
• Talent & Retention
• Employee Well-Being
• Health & Safety
• Energy Efficiency
• Resource Efficiency & Technology
• Home Quality & Safety
• Sustainable Supply Chain
• Sustainable Building Supplies
• Water Management & Efficiency
• Greenhouse Gas Emissions

Environmental Achievements

• Completed baseline Scope 1 and 2 greenhouse gas emissions calculation.
• Improved energy efficiency of homes (average HERS score of 60, 40% more efficient than standard homes).
• 100% of homes included low E or dual pane windows, LED lighting, and energy-efficient programmable thermostats.
• Significant number of homes included tankless water heaters, LP TechShield radiant barrier, and rooftop solar panels.
• 100% of homes included at least one ENERGY STAR rated Whirlpool appliance.
• 3,989 homes were Electric Vehicle Charger capable.
• 2,821 homes were ENERGY STAR Certified Homes, resulting in annual energy savings of over 3.8 million kWh.

Social Achievements

• 67% of homes closed were priced under $400,000.
• 56% of homebuyers using DHI Mortgage were first-time homebuyers.
• Main Street Stars program offered incentives to military, law enforcement, firefighters, healthcare professionals, and educators.
• Partnership with Building Talent Foundation (BTF) to address skilled labor shortages.
• DHI Mortgage Home Buyers Club® helped over 2,740 people close on homes in FY2022.
• 43% of workforce are female employees.
• 16% female leaders overseeing local homebuilding operations.
• 66% of DHI Financial Services workforce are female employees.
• Over 3,800 hours of volunteer time contributed at the local level.
• Financial contributions of greater than $440,000 to local causes.

Governance Achievements

• Published Human Rights Policy, Political Contributions Policy Statement, Human Capital Data, and EEO-1 disclosure.
• Improved internal process for tracking key metrics related to energy efficiency and environmental impacts.
• Board of Directors reviewed enterprise-level ESG risk assessment.
• Nominating and Governance Committee oversees ESG risks.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions and rising costs impacting home affordability.
• Skilled labor shortages in the construction industry.
• Climate-related risks (both physical and transition).
• Cybersecurity and IT risks.

Mitigation Strategies

• Focus on affordability through various strategies (smaller homes, attached homes, energy efficiency).
• Partnership with BTF to develop construction workforce.
• Geographically diverse operating footprint to mitigate physical climate risks.
• Robust due diligence process for land acquisition and compliance with regulations.
• Implementation of robust risk management program.
• Regular cybersecurity training for all employees and engagement of IT security experts.

Supply Chain Management

Responsible Procurement

• Selection of vendors based on quality, reliability, value, and sustainability commitments.
• National exclusivity with over 20 companies and purchases from over 100 suppliers.
• Collaboration with vendors on ESG initiatives and disclosures.
• Requirement for subcontractors to maintain safety programs and comply with regulations.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, natural disasters

Transition Risks

• Government regulations to reduce greenhouse gas emissions

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: SASB

Certifications: ENERGY STAR

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16

Report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Rheia air distribution system
• Homes in Babcock Ranch featuring energy-efficient technologies
• Boxabl modular homes

Awards & Recognition

• 2022 ENERGY STAR Market Leader Award (Phoenix Division)

Environmental Metrics

ESG Focus Areas

• Home Energy Efficiency
• Home Quality & Safety
• Sustainable Building Supplies
• Business Ethics
• Health/Wellness of Employees
• Community Impact
• Talent & Retention
• Water Management & Efficiency
• Sustainable Supply Chain
• Indoor Environmental Quality & Safety

Environmental Achievements

• Increased participation in energy efficiency programs (HERS, ENERGY STAR).
• 30,642 homes received a HERS Index Score (37% of homes closed), with an average score of 60.
• 10,419 homes (13%) were ENERGY STAR certified, a 269% year-over-year increase.
• Installation of WaterSense certified fixtures estimated to save over 1.4 billion gallons of water.
• Nearly 2,200 WaterSense certified irrigation systems installed.
• Use of prefabricated roof trusses in approximately 80% of homes closed.
• Over 1,100 homes incorporated continuous insulation using OX rigid foam board.
• Over 2,500 homes included Huntsman Building Solutions spray foam insulation (approximately 1,000 with closed-cell, equating to 1.3 million recycled plastic bottles).

Social Achievements

• Closed 89,092 homes (homebuilding and rental operations).
• 68% of homes closed were priced under $400,000.
• 55% of homebuyers using DHI Mortgage were first-time homebuyers.
• Over 19,800 individuals enrolled in the DHI Mortgage Home Buyers Club® (4,200 in FY2023), with 2,547 completing the program and achieving an average credit score improvement of over 50 points.
• Voluntary employee turnover rate decreased to 12% (from 16% in FY2022).
• Total employee turnover decreased to 17% (from 19% in FY2022).
• 83 interns participated in the internship program, with 67% receiving full-time employment offers.
• Approximately 3,950 hours of volunteer time contributed by employees.
• Over $510,000 in financial contributions made to local communities.

Governance Achievements

• Published second annual ESG Report.
• Implemented required employee trainings covering Human Rights Policy and DE&I.
• Maintained open-door policy, employee hotline, and hotline for accounting/finance matters.
• Company’s political contributions totaled approximately $111,000.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (addressed in previous years).
• Rising home prices and mortgage interest rates impacting affordability.
• Shortage of skilled labor in the construction industry.
• Climate-related risks (physical and transition).
• Data collection process maturity varies across metrics.

Mitigation Strategies

• Adjusted home prices and incentive levels to address affordability.
• Mortgage rate buydowns offered to homebuyers.
• Partnership with Building Talent Foundation (BTF) to address labor shortages.
• Geographically diverse operating footprint to mitigate climate risks.
• Robust risk management program.
• Continued refinement of internal reporting and data collection processes.

Supply Chain Management

Responsible Procurement

• Focus on quality, reliability, and value.
• Collaboration with vendors on sustainability initiatives.
• Vendor ESG survey conducted in 2023.

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of extreme weather events.
• Shifts in climate patterns.

Transition Risks

• Increase in government restrictions, standards, or regulations.
• Shift in consumer preferences.

Opportunities

• Gains in market share due to quality and reliability of homes.
• Strengthened vendor relationships.
• Opportunities to expand geographic footprint.
• Increase in revenues by implementing water-efficient products.

Reporting Standards

Frameworks Used: SASB

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13

Various initiatives contribute to these goals through affordability, community impact, employee well-being, sustainable building practices, and water management.

Sustainable Products & Innovation

• Rheia air distribution system
• Plantd grass-based building panels
• Deako smart switches
• WaterSense certified fixtures

Awards & Recognition

• Inclusion in the Dow Jones Sustainability North American Index.
• U.S. News Best Companies to Work For.
• Inclusion in the American Opportunity Index.
• Newsweek’s America’s Greatest Workplaces (multiple rankings).