Dive Brief:
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PulteGroup has been added to the Dow Jones Sustainability North American Index, the only U.S. homebuilder included in the Index's Consumer Durables and Apparel industry group ranking, the company said in a release.
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Newly installed PulteGroup CEO Ryan Marshall said the company "is committed to breaking new ground" in the area of sustainability and that its inclusion on the Index is a testament to its "economic and social business practices."
- Each year, sustainability research company RobecoSAM assesses more than 3,400 companies in areas of corporate responsibility and sustainability when choosing which firms to include in the index.
Dive Insight:
PulteGroup also took the opportunity to call attention to its 2016 corporate responsibility report, which the company said highlights its sustainability and community service initiatives. Included in the report is the company's first net-zero energy house, announced in June. The San Francisco Bay Area prototype utilizes on-site solar energy to meet the net-zero requirement and was built with a tight building envelope seal and with more insulation than the company typically uses in its houses. PulteGroup also included an energy-efficient HVAC system and lighting. The company said it plans to monitor the home for energy consumption and savings over the next year and will adjust the design accordingly for future models.
PulteGroup's Del Webb business unit has also been experimenting with farm-centric developments that it calls agrihoods. These communities feature gardens or other farming activities in which residents can take part. Sometimes, these developments are even built up around existing farms rather than knocking them down to make way for new homes. Because of the agrihoods' low-density nature, the homes are often more expensive, but proponents say that farm-based living allows residents to connect with the natural environment and feel like they belong to a community.
Its addition to the Index is positive news for the company, which recently resolved a tug of war between its founder and corporate leadership. William J. "Bill" Pulte publicly voiced his dissatisfaction with the company's direction and repeatedly called for the resignation of former CEO Richard J. Dugas Jr. In a letter to the board, Pulte, who still owns 9% of the company, called his previous support for Dugas "perhaps the biggest mistake" of his career after the company's revenues decreased 35% while competitors added to their coffers. However, just last week, the company responded to Pulte's demands and replaced Dugas with Marshall. As part of the deal, Pulte's grandson also won a seat on the company's board of directors.