SUPPORTING STATEMENT

According to recent Gallup polls the United States is experiencing a demographic shift. While 10.5% of Millennials identify as LGBTQ+, almost twice that number, 20.8%, of Generation Z identify as LGBT+. About one-third of LGBT individuals report experiencing harassment or discrimination in the five years preceding 2021 and 45.5% experienced harassment or discrimination at some point in their lives, according to a national study conducted by the Williams Institute at UCLA School of Law. Additionally, LGBT rights in the workplace and elsewhere have been the topic of national discussion for years.

Lennar recognizes the importance of inclusiveness in effective workforce management. In its 2022 Social Responsibility Report Lennar’s Executive Chairman noted the Company was “Implementing an ‘Everyone’s Included’ focus relative to inclusion and diversity where we are focused on attracting, retaining and growing diverse talent that takes us into the future.” The Report itself stated, “To further unleash the power of diversity within our workforce to drive innovation and sustainable growth, Lennar created our Everyone’s Included Advisory Council.”

Numerous studies have pointed to the benefits of effective workforce management and found that companies can retain employees through inclusive policies. In addition, the U.S. Chamber of Commerce Foundation observed in its report, Business Success and Growth Through LGBT-Inclusive Culture: “Companies that adopt LGBT-inclusive practices tend to improve their financial standing and do better than companies that do not adopt them. Additionally, employees, regardless of their sexual orientation or gender identity, express greater job satisfaction at companies where these practices are in place.” Morgan Stanley has found that such employee loyalty “can indicate the presence of competitive advantage.”

Considering the Company’s support for the business case for inclusion, the Company’s support for inclusive policies, and the growing number of LGBTQ individuals entering the workforce, we believe that it is in shareholders’ best interests for Lennar to report on the requested information.

In its discretion, the Board may wish to include in the report information such as: whether the company has inclusive nondiscrimination policies or guidelines, the equality and inclusiveness of employee benefits, and the availability of employee support groups. Additionally, it may wish to disclose whether Lennar collects anonymized sexual orientation and gender identity data to guide talent development, increase productivity, and prove to consumers that inclusive teams are serving them.