American Homes 4 Rent, a leading provider of high-quality single-family homes for rent, issues an open letter to shareholders regarding its commitment to industry-leading Environmental, Social and Governance (ESG) practices.
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Dear Fellow Shareholders,
At American Homes 4 Rent, we integrate sustainability into every aspect of our business, including our development program, and continually evaluate new opportunities to create more energy efficient and environmentally friendly communities and homes. Sustainability is a principle we take seriously to ensure we have a positive impact on our residents, team members and planet. With the support and oversight of the Nominating and Corporate Governance Committee of our Board, we are executing a multifaceted ESG strategy that is deliberate and aligned with our business goals.
As the leading national builder of purpose-built single-family rental homes, we design and construct new homes that embrace environmental sustainability practices. We build homes for long-term durability, to lower long-term maintenance costs, and conserve our natural resources.
Solar power plays a key role in our sustainability efforts. On March 28, 2022, we announced a landmark partnership with Elevation, a fully integrated residential energy solutions company. This partnership began with the integration of solar energy into our current and future community amenity centers and continues with the deployment of energy solutions into participating homes. To date, we have successfully integrated solar energy into amenity centers in two of our new home communities—The Ponds at Walden Woods in Tampa, Florida, and Creekside Ranch in New Braunfels, Texas—and have solar installation underway at Brentwood in Mooresville, North Carolina. In addition, we are evaluating dozens of other centers to determine the benefits of solar to those structures.
Solar energy is only one example of our many energy-saving programs and environmentally friendly policies. Some additional examples include:
- In 2020, we began a program to track RESNET Home Energy Rating System (HERS) scores for our newly built homes to demonstrate the energy efficiency and savings while living in our properties. In 2021, our newly constructed homes used nearly 40% less energy than a home built to the 2006 “reference home” standard and less than half of the energy of a typical home in this country. As we more broadly adopt utilization of solar energy across our portfolio, energy savings will only improve.
- Efficient and resource-saving initiatives are incorporated into our design, construction, and renovation processes, including energy efficient lighting, HVAC units and appliances.
- We recover or reuse/recycle refrigerant when servicing air conditioning units.
- We employ a third-party utilities administrator to monitor resident electricity and water usage.
American Homes 4 Rent is recognized as a leader in our industry for our ESG policies and sustainability commitments. In late 2021, American Homes 4 Rent was recognized as a Top ESG Regional Performer by Sustainalytics, a Great Place To Work®, and one of America’s Most Responsible Companies 2022 by Newsweek and Statista. Additionally, in early 2022, American Homes 4 Rent was further named one of America’s Most Trusted Companies 2022 by Newsweek and Statista, ranking third among its thirteen real estate industry peers on the list.
You may have seen a press release on April 4, 2022 from Land & Buildings Investment Management, LLC, a shareholder of American Homes 4 Rent, regarding our sustainability programs. This press release followed a call on March 29, 2022, with Craig Melcher of Land & Buildings, which was held at Land & Buildings’ request.
During the meeting, we described in great detail the commitment of our Board and management team to acting in the best interests of the Company, our shareholders, the communities we serve and, in particular, the environment in which we live. Upon reading Land & Buildings’ press release, we were disappointed to discover that Land & Buildings’ principals had either misunderstood or mischaracterized our discussion.
Our Board and management team are aligned in their longstanding commitment to sustainability and will continue enhancing our policies and programs to create a more sustainable future for our planet, teams, residents, and communities.
Thank you for your investment and trust in us to oversee the long-term success and environmental sustainability of American Homes 4 Rent.
Sincerely,
Douglas N. BenhamChairman of the Nominating and Corporate Governance Committee of the American Homes 4 Rent Board of Trustees
David P. SingelynChief Executive Officer and Trustee of American Homes 4 Rent
Source: American Homes 4 Rent