2023
Sustainability Report
A1
2023 Sustainability Report
CEO Letter
Our Company
People-Driven
Better Homes
Strong Communities
Our Foundation
Data & Disclosures
CEO Letter
2
Our Company
3
People- Driven
10
Better Homes
21
Strong Communities
31
Our Foundation
42
Data & Disclosures
54
Sage at Countryview in Homeland, CA
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NAV - CEO | ||
2023 Sustainability Report | CEO Letter | Our Company |
People-Driven
Better Homes
Strong Communities
Our Foundation
Data & Disclosures
"We believe that a KB home is a better home, one that
is more efficient and affordable to operate, and delivers on the enduring promise of the American Dream."
Letter from Jeffrey Mezger
KB Home Chairman and Chief Executive Officer
For 17 years, we have been honored to publish our annual sustainability report, sharing our progress in advancing our key initiatives. This was another landmark year for KB Home, distinguished by significant strides in sustainability that raise the standard for our industry. Highlights include:
Energy-EfficiencyLeadership: We have built over 190,000 ENERGY STAR® certified homes, more than any other homebuilder in the nation. Our 2023 national average Home Energy Rating System® (HERS) Index score of 46 underscores our longstanding commitment to helping our homebuyers lower their utility bills and preserve natural resources.
Promoting Water Resiliency: We constructed a record-high number of WaterSense® labeled homes in all our new communities across the southwestern U.S. to support the region's long-term resilience. This initiative is not just about reducing utility costs; it's about safeguarding our future.
Customer Satisfaction Excellence: Our customer-centric approach and dedication to being the most customer-obsessed homebuilder in the world helped us improve our satisfaction rates by three points in a single year to an impressive 94%.
Empowering Communities: We donated $1.93 million and dedicated over 5,300 volunteer hours through our KB Cares philanthropic program, investing in and strengthening the places where we live, work and build, and demonstrating our employees' desire to make a meaningful difference in the wider communities we call home.
Recognized With Preeminent Honors: In recognition for these and other achievements, we earned some of the premier sustainability awards, a distinction we carry with pride and that confirms we are on the right path.
Our philosophy of doing well by doing good has made us a stronger, nimbler company, and driven innovation across our industry. We seek out opportunities to leverage our scale in order to propel tested and viable emerging sustainability technologies forward, aiming to reduce costs and facilitate widespread adoption.
While there are clear business benefits, our focus on sustainability has always been fundamentally about our customers. We have demonstrated that a sustainable home can significantly reduce the total cost of homeownership while exceeding our customers' dreams. We estimate our impact over the last nearly two decades in the billions - both utility dollars saved for our customers and pounds of carbon emissions avoided for our planet.
We believe that a KB home is a better home, one that is more efficient and affordable to operate, and delivers on the enduring promise of the American Dream. In this report, we share with you the positive strides we have made in 2023 in building better homes and creating a sustainable business that serves the needs of its customers, employees and its other stakeholders. We know that the journey is never over, and we invite you to join us as we continue to move forward with purpose on our path.
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NAV - Our Company | |||
2023 Sustainability Report | CEO Letter | Our Company | People-Driven |
Our
Company
At KB Home, we believe that sustainability is built on one essential idea: balance. We strive to ensure that today's buyers can achieve the dream of homeownership while balancing that objective with mindfulness about the sustainability needs of future generations and our environment. Sustaining the dream of homeownership both today and into the future is what we do every day.
KB Home has a proud history of being a leader in sustainability. For over two decades, we have been building energy- and water-efficient homes and advancing innovation, while also making a positive social impact by supporting the attainability and expansion of the American Dream. Together, we believe our approach creates a resilient business built to deliver long-term value for our customers, employees, partners and stockholders.
Better Homes
Strong Communities
Our Foundation
Data & Disclosures
3
2023 Sustainability Report | CEO Letter |
Our Company | People-Driven | Better Homes | Strong Communities | Our Foundation | Data & Disclosures | ||||
KB Home at a glance
KB Home is one of the largest and most trusted homebuilders in the United States, operating in over 47 markets from coast to coast and building over 680,000 quality homes in our more than 65-year history.
We are honored to be the #1 customer-ranked national homebuilder based on third-party buyer ratings and reviews in 2023. What sets KB Home apart is our focus
Founded: 1957
Chairman and CEO
Jeffrey T. Mezger
Principal Business
Building personalized new homes with features and options selected by the homebuyer - whether first-time, move up or active adult - based on what they value and can afford.
2023 Total Revenue
$6.41 billion
Ticker Symbol: KBH (NYSE)
First homebuilder listed on NYSE
65+ | years building new homes | |
680K | ||
+ | total KB homes delivered since 1957 | |
13,236 | new KB homes delivered in 2023 | |
55,976 | similar contracts as of November 30, 2023 | |
total lots owned or under option or other | ||
242 | community count as of November 30, 2023 | |
on building strong, personal relationships with every customer and creating an exceptional experience that offers our homebuyers the ability to personalize their home based on what they value.
As the industry leader in sustainability, KB Home has achieved one of the highest residential energy-efficiency ratings and delivered more ENERGY STAR® certified homes than any other builder, helping to lower the total cost of homeownership.
Market listing as of
report publication date.
West Coast | Southwest | Central | Southeast | ||||
California | Arizona | Colorado | North Carolina | ||||
Idaho | Nevada | Texas | South Carolina | ||||
Washington | Florida |
Our Vision
To be the most customer-obsessed homebuilder in the world.
Our Mission
Give our customers the ability to purchase a new home that reflects what they value and how they want to live, at a price they can afford.
Our Values
We make relationships
the foundation for all we do.
We build homes that make lives better.
We believe that everyone deserves a home that's as unique as they are.
We deliver more for less.
We strive for a better shared future.
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2023 Sustainability Report | CEO Letter | Our Company | People-Driven |
Better Homes
Strong Communities
Our Foundation
Data & Disclosures
Sustainability is not just the right thing to do - it's also right for our business
We believe that prioritizing sustainability provides long-term benefits for our customers, our operations and the environment, while also providing us with a competitive advantage and making us a more resilient business.
Increasing new-home affordability
We design and build homes that help address the significant need for housing that is affordable.
Lowering the total cost of homeownership
Energy- and water-efficient homes can be more affordable to operate than typical new or resale homes without
the same features, making sustainability a compelling competitive advantage.
Elevating water conservation
The water-saving features in our homes reduce our customers' water bills and help to mitigate strain on local communities.
Designing homes
to be healthier for residents
We design homes that can promote the health of their residents as well as the environment.
Integrating sustainability technology for increased comfort
Many sustainability-related technologies that we use also offer greater comfort and personal efficiency, along with user-friendly smart home interfaces.
Preserving the environment and natural resources for long-term value
The positive environmental attributes of our homes support a business strategy for long-term value creation for our stakeholders as well as emit fewer greenhouse gases (GHGs).
Containing the cost to build
Our scale and waste-reduction efforts allow us to build sustainable homes more economically.
Becoming the builder of choice for partners
We believe our legacy of vibrant, sustainable communities and industry leadership makes us a partner of choice for municipalities, land sellers, developers and other partners.
Improving strength of supply chain
We select our partners in part based on their sustainable business practices. We also require specific product-sourcing certifications in certain cases, waste-reduction practices as available and ethical conduct.
Becoming an employer of choice
We aim to attract top-tier talent by creating a culture of excellence and providing a safe work environment that supports inclusion, equity and meaningful work.
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2023 Sustainability Report
CEO Letter | Our Company | People-Driven |
Better Homes
Strong Communities
Our Foundation
Data & Disclosures
Sustainable action adds up
KB Home's nearly two decades of consistent commitment to sustainable homebuilding have created measurable results and a resilient business.
13,236 new KB homeowners in 2023
190,000+
ENERGY STAR certified homes built since 2000
54%
Average increased energy efficiency of a 2023 KB home vs. a typical home built as recently as 2006
150+
Zero Energy Ready certified homes built since 2010
20,900+
solar-powered new homes built since 2010
70
cumulative megawatts of solar power installed
131M
estimated kilowatt hours of renewable solar energy produced annually
21,800+
total WaterSense labeled and Water Smart homes built since 2005
30%-40%
average water savings by these KB homes vs. a typical home
1.1M+
total WaterSense labeled fixtures installed
49% are first-time homebuyers
7.4B | estimated cumulative avoided pounds of CO2 emissions | |
due to improved energy efficiency of KB homes | ||
2.0B | estimated gallons of water saved annually | |
due to improved water efficiency of KB homes | ||
$1.2B | homeowners | |
estimated total utility bill reductions for our | ||
17 | years of publicly reporting our progress | |
in annual sustainability reports | ||
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2023 Sustainability Report | CEO Letter |
Sustainability now and for the future
Throughout KB Home's journey over the past two decades to become a recognized sustainability leader in the homebuilding industry, we have proactively focused
on how the steps we take to effectively help lower our customers' long-term homeownership costs can also enable us to minimize our homes' environmental impact over the years to come.
Our Company | People-Driven | Better Homes | Strong Communities | ||
We have developed, implemented and maintained initiatives, systems and practices that address our environmental impact, as described in this and our past sustainability reports, as well as our core environmental policy framework. We seek to make our products, including the home designs and options we offer our customers as well as our community development and house construction processes as efficient and sustainable as possible, while balancing that objective with our homebuyers' affordability priorities and our business performance and growth goals. For our complete Task Force on Climate-Related Financial Disclosures (TCFD) reporting, please see the Data & Disclosures chapter of this report.
Based on the above foundations, our climate-related priorities include the following:
Energy | We build to ENERGY STAR certified home standards to deliver on energy |
efficiency | efficiency with each of our homes. We believe that this is the best way that we |
can help reduce the production of greenhouse gas emissions associated with | |
their daily use and minimize their climate impact. Learn more. |
Water | We build to WaterSense labeled home standards in the most drought-impacted |
conservation | regions we serve and install WaterSense labeled fixtures in all our homes to help |
homeowners use less water and address growing concerns around water scarcity. | |
Learn more. |
Resiliency | Where regionally appropriate, we have begun taking proactive measures to |
build resource-efficient homes that are also climate resilient. Our approach | |
to climate resiliency includes features designed to maintain occupant safety, | |
prevent property damage and also minimize disruption to daily living from | |
severe weather events. Learn more. |
Industry | We believe that actively participating in the public policymaking process is an |
engagement | important aspect of being a responsible member of the communities in which we |
build. Our industry leadership in sustainable construction practices and building | |
performance has allowed us to participate in national and regional building | |
initiatives of both governmental and nongovernmental organizations. Learn more. |
For more on our approach and risk factors related to climate, please reference the complete TCFD reporting as well as our 2023 Annual Report on Form 10-K.
Our Foundation
Data & Disclosures
7
2023 Sustainability Report | CEO Letter | Our Company | People-Driven |
Better Homes
Strong Communities
Our Foundation
Data & Disclosures
Our journey toward sustainability has led the way
for our industry for over two decades
2000
-
Built our first
ENERGY STAR certified homes
2005
-
Launched Water Smart homes in
Las Vegas - Offered solar photovoltaic options in
California
2007
-
Committed to using 100%
ENERGY STAR certified appliances
2008
- Published first annual sustainability report
- Committed to building ENERGY STAR certified new homes company-wide
2009
- Launched National Advisory Board (NAB) to provide external expert guidance to our sustainability efforts
- Committed to build with 100% WaterSense labeled fixtures
2010
-
Built our first
WaterSense labeled homes - Built our first Net Zero home
2017
- Achieved national record for most WaterSense labeled and Water Smart homes in industry
- Opened first EPA Indoor airPLUS certified community
- Formalized KB Cares company-wide giving program
2016
- Built 100,000th ENERGY STAR certified new home
- Built 5,000th solar-powered home
- Built first KB ProjeKt® concept home to demonstrate next- generation sustainable home design and technology
2015
- Built 10,000th Water Smart home
2014
- Built demonstration homes with energy storage and greywater recycling systems
2013
- Achieved average 20% increase in energy efficiency in our new homes compared to 2007
2012
- Built 1,000th solar-powered home
2011
- Built first all-solar communities in California
- Introduced consumer tool, now known Energy Savings Comparison® (ESC®), which shares expected energy performance and utility costs of home designs
2018
-
Co-leddevelopment
of RESNET® HERS H2O® water-efficiency rating system
2019
- Built KB ProjeKt 2.0: Where Tomorrow Lives concept home to demonstrate newest sustainable home technology in a fully functioning home
- Reached national record for building the most ENERGY STAR certified homes
2020
-
Became first national builder to implement EPA WaterSense
Labeled Homes Version 2.0 - Declared 5-year goal of 45 national average
HERS score
2021
-
Achieved lowest
national HERS H2O score among participating builders
2022
- Launched first-ever residential microgrid communities in California
- Committed to building all future communities in Arizona, California and Nevada to WaterSense labeled homes standard
- Reached milestone of $1 billion in cumulative estimated savings for our homeowners on their utility bills
- Installed our 1,000,000th WaterSense labeled fixture
2023
- Achieved 46 average HERS score on the path toward our 5-year goal of 45 national average HERS score by 2025
- Built 190,000th ENERGY STAR certified home since 2000, more than any other builder
- Built our 20,000th solar-powered home
- Reached milestone of two billion gallons estimated annual water savings for our homeowners through our water efficiency initiatives
- Launched a pilot project in Arizona communities using lower carbon building materials
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2023 Sustainability Report | CEO Letter | Our Company | People-Driven |
Better Homes
Strong Communities
Our Foundation
Data & Disclosures
We are honored to be recognized for
our consistent leadership and commitment
2023 awards and recognition
Notable past awards and recognition
USA Today's 2023 List of
America's
Climate
Leaders
Award
Newsweek's
2023
America's
Most
Trustworthy
Companies
Fortune's
World's Most
Admired
Companies
Award
2006, 2008, | 2009, | 2021, 2022 |
2010, 2011, | 2022 |
Also in 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022
Also in 2013, 2014 and | ||
Also in 2021, 2022 | Also in 2022 | the Grand Award in 2015 |
29 total Market Leader
awards in 2023
2023
Also in 2011, 2012, | Also in 2008, 2009, 2010, | ||
2013, 2014, 2015, | 2011, 2012, 2013, 2014, | ||
2016, 2017, 2018, 2019, | 2015, 2016, 2017, 2018, | EEBA Excellence | Also in 2014, 2015, |
2020, 2021, 2022 | 2019, 2020, 2021, 2022 | in Resiliency | 2016, 2017, 2022 |
DOE Builders Challenge
Award, 2011, 2012
2015, 2019
2016
EPA ENERGY STAR
2011, 2012, 2013, 20142014, 2015, 2016Award for Excellence, 2009, 2010
USGBC LEED for Homes | EPA Indoor airPLUS |
Award, 2011 | Leader Award, |
2015 |
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Disclaimer
KB Home published this content on 20 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 April 2024 13:11:41 UTC.