1967
Our Story Begins
Toll Brothers is founded by brothers Bob and Bruce Toll in southeastern Pennsylvania. Inspired by their father, a home builder, the brothers build their first two homes
ESG Report
About This Report
We view our ESG program as an important component to the success of our company, and this report represents a key step in providing transparency into our efforts. As a company, we pride ourselves on our ability to serve our employees, trade partners, customers, and the communities in which we operate with care and dedication. We bring those same values in our approach to this ESG initiative.
In April of 2021, we published our inaugural ESG Report, setting forth important information with respect to many ESG issues impacting our company. Our CEO's letter introducing that report is included below and summarizes our views regarding many aspects of ESG. We continue to review our sustainability strategy and engage with our key stakeholders regarding ESG-related matters. We use the Sustainability Accounting Board (SASB) industry-specific standards to help identify topics of relevance for our audience, and with this 2023 update, we present an additional year's worth of data.
We continue to evaluate and look for ways to improve our ESG Report. The U.S. Securities and Exchange Commission issued a sweeping set of proposed rules that would govern how companies manage and disclose risks related to a changing climate, among other required disclosures. This development underscores the dynamic nature of ESG reporting and the evolving expectations of our stakeholders. We intend to evaluate final rules when they become available, as well as any other regulatory developments. We expect the final rule to inform how best to foster continued discussion and engagement with all of our stakeholders around the complex issues surrounding sustainability and broader ESG practices for long-term value creation.
For additional, important information about the data included in this report, click here.
Inquiries regarding our sustainability initiatives can be directed to ESG@TollBrothers.com.
From Douglas C. Yearley, Jr., Chairman of the Board & Chief Executive Officer
I am pleased to present this inaugural Toll Brothers Environmental, Social, and Governance (ESG) Report.
Our initial report is about both the present and the future. It includes information on where we at Toll Brothers stand today on many Environmental, Social, and Governance issues. It also sets the framework for the future as the ESG landscape evolves and we fine-tune our data collection priorities and practices. The audience for this report is varied and broad. Stakeholders include our shareholders, financial partners, customers, trade partners, the communities in which we build, society at large, the governmental entities that oversee our sector, and, of course, our employees. In preparing this report, we have solicited the views of various stakeholders and focused on matters deemed to be of significance to them and our business.
Home building is a unique industry, and our opportunity to make an impact is significant. This starts with the tremendous economic influence of our industry as a job-creating engine. Toll Brothers directly employs approximately 4,500 people. The National Association of Home Builders (NAHB) estimates that the average new home generates 2.9 jobs in each community where a house is built. Based on this estimate, we directly and indirectly supported over 24,000 jobs in fiscal year 2020. These jobs, which include employment for plumbers, painters, electricians, carpenters, furniture makers, real estate brokers, site planners, and many others, were more critical than ever, as the nation recovers from historically high unemployment rates caused by the pandemic. We are proud to be part of a bedrock industry that continually refreshes the nation's housing supply while also creating so many good jobs. The communities we develop also contribute to the vibrancy and the tax base of the towns and cities where we build, enhancing the quality of life not only of our buyers but also of the municipalities as a whole. This contribution includes not only the beautiful communities we build but also the contribution and civic participation of our residents and our employees in the areas where we have a presence.
In our communities, we strive to fulfill the aspirations of those seeking a home they love. With our first time, move-up, empty nester, and active-adult new home communities, as well as rental and urban condominium projects, we have a wide variety of product lines to serve the upscale market. And in a nation where the housing shortage is well-documented, our mission is more important than ever—we want to be part of the solution to this major public policy concern.
As an employer, we want to be at the forefront in providing opportunities and growth to all, irrespective of race, ethnicity, religion, sexual orientation, and gender. We are committed to creating an inclusive culture, hiring and advancing diverse talent within our firm, and to expanding educational and professional opportunities for underserved youth. Increasing the diversity of voices at all levels of our organization is a high priority. Ensuring our employees' health and safety, providing an environment where all employees are treated with fairness, dignity, and respect, and having opportunities to grow and thrive is aligned with our values and critical to our success.
Since Toll Brothers was founded in 1967, we have taken seriously our responsibilities to the broader communities in which we build and to the environment. Whether this involves thoughtful land planning, sustainable land stewardship, decreasing our impact on climate change, planting trees, creating parks and hiking trails, supporting local organizations, or reducing water use, energy consumption, and waste production, our goal is to build beautiful communities that enhance both the lives of residents and the environments in which they are built.
I am so proud and honored to be leading this great company. Thank you for your interest and continued support.
Douglas C. Yearley, Jr.|Chairman and CEO
Environmental
We believe that sustainability and preservation of the natural environment are important to building exceptional homes and communities.
by the numbers—2022
At Toll Brothers, we are dedicated to minimizing our impact on the environment by embracing responsible land development and planning processes and building homes that more efficiently utilize resources. Some of our fiscal year 2022 highlights include:
924acres of open space preserved
83Miles of walking/biking trails built83
13,800number of trees planted13,800
28number of parks built28
| SASB | PERFORMANCE INDICATOR | FY 2020 | FY 2021 | FY 2022 | |
| land use and ecological impacts | ||||
| IF-HB-160a.1Number of lots and homes delivered on redevelopment sites | 395 | 990 | 1,264 | |
| IF-HB-160a.2Number of lots and homes delivered in regions with High or Extremely High Baseline Water Stress | 2,232 | 4,702 | 1,474 | |
| IF-HB-160a.3Total amount of monetary losses as a result of legal proceedings associated with environmental regulations | $0 | $0 | $0 | |
| IF-HB-160a.4Discussion of process to integrate environmental considerations into site selection, site design, and site development, and construction | Click here | |||
| design for resource efficency | ||||
| IF-HB-410a.1(1) Number of homes that obtained a certified HERS Index Score and (2) average score | N/A | (1) 2,681 (2) 60 | (1) 3,422 (2) 60 | |
| IF-HB-410a.2Percent of installed water fixtures certified to WaterSense specifications | N/A | 80%** | 84%** | |
| IF-HB-410a.3Number of homes delivered certified to a third-party multi-attribute green building standard: | ||||
| LEED* | 355 units | 32 units | 19 units | |
| Green Globes* | 434 units | 444 units | ||
| Green by NGBS* | 87 units | |||
| Florida Green Building Coalition | 43 units | 55 units | ||
| IF-HB-410a.4Description of risks and opportunities related to incorporating resource efficency into home design and description of how benefits are communicated to customers | Click here | |||
| community impacts of new developments | ||||
| IF-HB-410b.1Description of how proximity and access to infrastructure, services, and economic centers affect site selection and development decisions | Click here | |||
| IF-HB-410b.2Number of lots and homes delivered on infill sites | 1,400 lots | 1,374 lots | 1,763 lots | |
| IF-HB-410b.3Number of homes delivered in compact developments | ||||
| Multi-family rental units* | 1,432 | 1,488 | 1,075 | |
| Multi-family for-sale units* | 140 | 259 | 31 | |
| IF-HB-410b.3Average density of compact developments | ||||
| Multi-family rental units/acre* | 105 | 65 | 81 | |
| Multi-family for-sale units/acre* | 273 | 285 | 256 | |
| climate change adaptation | ||||
| IF-HB-420a.2Description of climate change risk exposure analysis, degree of systematic portfolio exposure, and strategies for mitigating risks | Click here | |||
| energy efficiency | ||||
| Number of homes delivered in calendar year that received an energy efficiency tax credit† | 4,656 | 6,282 | 8,608 | |
| Number of Energy Star Appliances delivered in calendar year | 8,832 | 3,029 | 10,372 | |
| sustainable products | ||||
| Number of units delivered in calendar year with solar panels selected by buyers | 488 | 1,339 | 1,617 | |
| Number of electric car charging options enabled | 456 | 891 | 913 | |
| corporate operational efficiencies | ||||
| Decrease in marketing projects that generate print | 18% | 19% | 18% | |
| Reduction in transit miles for production/shipping of printed marketing materials | ||||
| Orders diverted to local vendors | 309 | 260 | 252 | |
| Reduction of transit miles per order | 2,000 | 2,000 | 2,000 | |
| Paper recycled company-wide | 145.9 tons | 98.2 tons | 137.9 tons | |
| *Current tracking includes only those homes built in high-density communities (primarily Apartment Living and City Living units). | ||||
| **Estimation based on fixture offerings for 2021. For 2022, data is for CY 2022 and includes an updated method of estimation. | ||||
| †Estimation based on scheduled certifications | ||||
| For important information regarding the data in this report, click here. | ||||
TABLE
Governance
Sound corporate governance enables our company to operate with integrity while promoting long-term value creation for our stockholders and other stakeholders.
We are committed to sound corporate governance. This commitment is rooted in the oversight of a capable, independent Board of Directors, strengthened by ongoing dialogue with our stockholders, and guided by policies that enable the success of our strategy and business objectives.
toll brothers corporate headquarters|fort washington, pa
At Toll Brothers, one of our six guiding principles is to Do the Right Thing. This value is reflected in the way we approach corporate governance. Our Board of Directors and management team are committed to sound corporate governance practices and policies that ensure our company operates ethically and with integrity, and that it is managed to maximize the long-term interests of our stakeholders. In short, our approach to corporate governance enables all of us to Do the Right Thing.
douglas c. yearley, jr.|chairman and ceo
About Us
We are driven by high standards ingrained in our corporate culture and honed over more than 50 years.
Every day, we strive to honor our company legacy and maintain the standards that have established Toll Brothers as an industry leader and a luxury brand that stands the test of time.
results rooted in history
#1
Nation's leading builder
of luxury homes
10
#1 Home Builder on Fortune Magazine's "World's Most Admired Companies®" list for 10 years
a+
Better Business
Bureau rating
135K+
Homes delivered
since 2000
1,825
Communities opened
for sale since 2000
24
National presence in over
60 markets in 24 states
| SASB | PERFORMANCE INDICATOR | FY 2020 | FY 2021 | FY 2022 |
| IF-HB-000.aNumber of controlled lots | 63,182 | 80,867 | 76,049 |
| IF-HB-000.bNumber of homes delivered | 8,496 | 9,986 | 10,515 |
| IF-HB-000.cNumber of active selling communities (FYE) | 317 | 340 | 348 |
| Average delivered home price | $816,500 | $844,400 | $923,600 |
| Average price in backlog (FYE) | $818,200 | $992,100 | $1,095,800 |
| Home sales revenues | $6.9B | $8.4B | $9.7B |
| Net signed contract value | $8.0B | $11.5B | $9.1B |
| Number of homes under contract | 9,932 | 12,472 | 8,255 |
| For important information regarding the data included in this report, click here. | |||
from left to right: bob toll, albert toll, bruce tollExcellence From Day One
1967
1975
Breaks ground on Yardley Hunt, first large master-planned community concept following the completion of the newly connected I-95 corridor to New York City, transforming Bucks County, PA
1982
Makes first move out of Pennsylvania, entering neighboring New Jersey
1984
Sells 1,000th home
1986
Becomes a public company and is listed on the New York Stock Exchange (NYSE: TOL) with revenues of $124.6 million from 15 communities
1987
Enters Delaware
Launches in-house marketing firm, Toll Architecture and Eastern States Engineering (ESE), the engineering, survey, and environmental planning group
Opens first Toll Integrated Systems plant (TIS) in the Philadelphia area to manufacture and supply quality engineered construction components and related services in a factory-controlled environment
1988
Enters Maryland and Massachusetts
Extends into the mortgage industry with Westminster Mortgage, now named TBI Mortgage
Receives first Builder of the Year Award by Professional Builder magazine
1992
Enters Virginia and Connecticut
Opens Westminster Title, a wholly-owned full-service title company
Holds first-ever , initiating a decades-long philanthropic undertaking
1993
10KEnters New York
Sells 10,000th home
1994
Enters California and North Carolina
1995
Becomes a National Builder with entry into Texas, Florida, and Arizona
Incorporates TBI Smart Home Solutions providing customers security and home control solutions to suit evolving lifestyles
1996
Makes online debut with TollBrothers.com
1998
Enters Nevada and Illinois
Develops first rental community, Dulles Green apartment community in Herndon, Virginia
1999
Enters Michigan
Develops first Active Adult community, Riviera at Westlake in New Jersey
2001
Enters Colorado
2003
Acquires Hoboken, NJ-based The Manhattan Building Company, spurring the launch of Toll Brothers City Living
2004
Opens first Toll Brothers Design Studio in Florida, offering a showroom environment to view and compare personalization options
2005
Begins sponsorship of the Metropolitan Opera Radio broadcasts
2008
Naval Square community recognized by the Preservation Alliance for Greater Philadelphia as a recipient of the
2009
joins the Board
2010
Douglas C. Yearley, Jr. named Chief Executive Officer and Bob Toll takes on the role of Executive Chairman
2012
Enters Washington State
Receives second Builder of the Year Award by Professional Builder magazine
2013
Acquires Shapell Industries, transforming the Toll Brothers footprint with a major expansion into coastal California
Establishes Toll Green, a philosophy and commitment to design beautiful homes and communities in ways that reduce environmental impact, provide energy savings and long-lasting value
Initiates a paid day of service for employees
2014
100KSells 100,000th home
Named Builder of the Year by Builder magazine
2015
Takes the #1 spot as the “World's Most Admired Company/Home Builders“ by FORTUNE magazine and “America's Most Trusted Builder“ by Lifestory Research
Breaks ground on Terrapin Row in College Park, Maryland, first Toll Brothers Campus Living project
First time certified as a Great Place to Work®
2016
Enters Idaho with the acquisition of Coleman Homes
In the FORTUNE magazine 2016 Survey of the “World's Most Admired Companies®,“ ranked #6 worldwide across all industries in Quality of Products/Services Offered after Apple, Walt Disney, Amazon, Alphabet, and Nordstrom, and before Netflix and Facebook; in the same 2016 survey, again named the “#1 Home Builder Worldwide“
joins the Board
Celebrates 30 years as a public company by ringing bell at New York Stock Exchange (NYSE)
2017
50THCelebrates 50th anniversary by ringing bell at NYSE
Partners with the
Receives the
Completes first Dow Jones Sustainability Index assessment
Introduces parental leave policy
2018
joins the Board
2019
Enters Georgia with the acquisition of Sharp Residential and South Carolina with the acquisition of Sabal Homes
Establishes multi-department Environmental, Social, and Governance Committee
Completes first Human Rights Equality Index
joins the Board
Establishes three Employee Resource Groups (ERGs): Toll Women's Network, Veterans at Toll, and Toll PRIDE
2020
Enters Tennessee with the acquisition of Thrive Residential
joins the Board
The nonprofit Building Talent Foundation is founded by Toll Brothers and other leading residential construction companies in the U.S.
Establishes two additional ERGs: BELIEVE (Black Employees Leading Inclusion, Excellence, Vision, and Education) and MOSAIC (Multicultural Organization Supporting an Inclusive Culture)
Creates the new position of and establishes the
Opens new corporate headquarters in Fort Washington, Pennsylvania with a host of integrated features that promote
2021
Publishes Inaugural ESG Report
joins the Board
joins the Board
In 2024, Toll Brothers marked 10 years in a row being named to the Fortune World's Most Admired Companies™ list.*
PRIDE Employee Resource Group hosts first to celebrate Pride Month
BELIEVE Employee Resource Group hosts first march in honor of and to commemorate the 1965 historic march from Selma to Montgomery, Alabama
Launches Diversity & Inclusion training for all employees and managers
2022
A Life Fondly Remembered
Robert I. Toll, 1940-2022 | Our founder, mentor, and friend, Bob Toll, leaves behind a legacy of visionary leadership, incomparable life lessons, and generous giving. Learn more on our Bob Toll tribute site.
The Company marks over 150,000 families now living in a Toll Brothers home.
For the first time, Toll Brothers surpasses 10,000 homes delivered in a fiscal year (10,515 homes in fiscal 2022).
Expands presence in Texas with the acquisition of Rialto Homes in San Antonio.
Inquiries and feedback regarding our sustainability initiatives can be directed to ESG@TollBrothers.com
Toll Brothers, Inc. ESG Report | Important Information and Disclaimers
The information presented in this report is non-financial in nature and therefore has not been prepared in accordance with generally accepted accounting principles(GAAP), nor reviewed or evaluated using an established control framework. It has not been independently audited. Information presented, including performance or other metrics, may be based on estimates and assumptions that require a high degree of complex and subjective judgement, and may not necessarily be comparable with that presented by other companies or as calculated pursuant to any third-party standards of sustainability reporting. Inclusion of information in this report is not an indication that we deem such information to be material or important to an understanding of our business or an investment decision with respect to our securities.
Unless expressly stated otherwise, this report covers our owned and operated businesses and does not address the performance, or conduct or operations of our suppliers, contractors, and partners.
This report contains forward-looking statements relating to Toll Brothers operations that are based on management's current expectations, beliefs, estimates, and projections about the homebuilding, land development, real estate, and related industries and other matters. These statements are not guarantees of future conduct, performance or policy and are subject to certain risks, uncertainties and other factors, many of which are beyond the company's control, including local, state, and federal regulations and economic conditions that may impact Toll Brothers, Inc.'s financial results or its operational or ESG-related performance. See the forward-looking disclaimer below for a description of these risks, uncertainties, and other factors.
Therefore, the actual conduct of our activities, including the development, implementation, or continuation of any program, policy, or initiative discussed or forecasted in this report, may differ materially in the future. As with any projection or estimate, actual results or numbers may vary. Many of the standards and metrics used in preparing this report continue to evolve and are based on management assumptions believed to be reasonable at the time of preparation but should not be considered guarantees.
Any statements of intention in this report speak only as of the date they first appeared in this report.
Toll Brothers undertakes no obligation to update publicly any statement in this report.
This report contains references to Toll Brothers' website. These references are for readers' convenience only and Toll Brothers is not incorporating by reference any information posted on tollbrothers.com.
As used in this report, the term "Toll Brothers" and such terms as "the company," "the corporation," "our," "its," "we," and "us" may refer to one or more of Toll Brothers' consolidated subsidiaries, affiliates, and in certain instances, our joint ventures. All of these terms are used for convenience only and are not intended as a precise description of any of the separate companies, each of which manages its own affairs.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION
This report contains or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. One can identify these statements by the fact that they do not relate to matters of a strictly historical or factual nature and generally discuss or relate to future events. These statements contain words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "may," "can," "could," "might," "should," "likely," "will," and other words or phrases of similar meaning. Such statements may include, but are not limited to, information and statements related to: the impact of the COVID-19 pandemic on the U.S. economy and on our business; expectations regarding interest rates and inflation; the markets in which we operate or may operate; our strategic objectives and priorities; our land acquisition, land development and capital allocation plans and priorities; housing market conditions; demand for our homes; anticipated operating results and guidance; home deliveries; financial resources and condition; changes in revenues, in profitability and in margins; changes in accounting treatment; cost of revenues, including expected labor and material costs; selling, general, and administrative expenses; interest expense; inventory write-downs; home warranty and construction defect claims; unrecognized tax benefits; anticipated tax refunds; sales paces and prices; effects of home buyer cancellations; growth and expansion; joint ventures in which we are involved; anticipated results from our investments in unconsolidated entities; our ability to acquire or dispose of land and pursue real estate opportunities; our ability to gain approvals and open new communities; our ability to market, construct and sell homes and properties; the rate at which we deliver homes from backlog; our ability to secure materials and subcontractors; our ability to produce the liquidity and capital necessary to conduct normal business operations or to expand and take advantage of opportunities; and the outcome of legal proceedings, investigations, and claims.
Any or all of the forward-looking statements included in this report are not guarantees of future performance and may turn out to be inaccurate. This can occur as a result of incorrect assumptions or as a consequence of known or unknown risks and uncertainties. The major risks and uncertainties and assumptions that are made that affect our business and may cause actual results to differ from these forward-looking statements include, but are not limited to:
- the ongoing effects of the COVID-19 pandemic, which remain highly uncertain, cannot be predicted and will depend upon future developments, including the duration of the pandemic, the impact of mitigation strategies taken by applicable government authorities, the continued availability and effectiveness of vaccines, adequate testing and therapeutic treatments and the prevalence of widespread immunity to COVID-19;the effect of general economic conditions, including employment rates, housing starts, interest rate levels, inflation, consumer sentiment, availability of financing for home mortgages, and strength of the U.S. dollar;
- market demand for our products, which is related to the strength of the various U.S. business segments and U.S. and international economic conditions;
- the availability of desirable and reasonably priced land and our ability to control, purchase, hold, and develop such land;
- access to adequate capital on acceptable terms;
- geographic concentration of our operations;
- levels of competition;
- the price and availability of lumber, other raw materials, home components and labor;
- the effect of U.S. trade policies, including the imposition of tariffs and duties on home building products and retaliatory measures taken by other countries;
- the effects of weather and the risk of loss from earthquakes, volcanoes, fires, floods, droughts, windstorms, hurricanes, pest infestations, and other natural disasters, and the risk of delays, reduced consumer demand, and shortages and price increases in labor or materials associated with such natural disasters;
- risks arising from acts of war, terrorism or outbreaks of contagious diseases, such as Covid-19;
- federal and state tax policies;
- transportation costs;
- the effect of land use, environment, and other governmental laws and regulations;
- legal proceedings or disputes and the adequacy of reserves;
- risks relating to any unforeseen changes to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, indebtedness, financial condition, losses and future prospects;
- the effect of potential loss of key management personnel;
- changes in accounting principles; and
- risks related to unauthorized access to our computer systems, theft of our and our home buyers' confidential information, or other forms of cyber-attack.
Many of the factors mentioned above or in other reports or public statements made by us will be important in determining our future performance. Consequently, actual results may differ materially from those that might be anticipated from our forward-looking statements.
Forward–looking statements speak only as of the date they are made. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise.
For a further discussion of factors that we believe could cause actual results to differ materially from expected and historical results, see the information under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent Annual Report on Form 10-K filed with the SEC and in subsequent reports filed with the SEC. This discussion is provided as permitted by the Private Securities Litigation Reform Act of 1995, and all of our forward-looking statements are expressly qualified in their entirety by the cautionary statements contained or referenced in this section.
†As of March 7, 2023, the date of the company's most recent shareholder meeting.
Social
Take Care of Each Other is one of our core company values, and we take it to heart.
Care—it is part of who we are as an organization and intrinsic to the family-like atmosphere we have cultivated since our inception in 1967. That care and dedication extends not just to our employees but to our customers, partners, and the broader communities in which we build.
Diversity
read more& Inclusion
Investing in
read moreOur People
Health,
read moreSafety, Quality
Community
read moreImpact
by the numbers—fy 2022
Small steps, big impact—our collective efforts add up to meaningful results. Some of our FY 2022 highlights include:
diversity
100%Percentage of division leaders who evaluated their Diversity and Inclusion data and presented future focus areas to CEO in 2022
tenure
6.3years
Average employee tenure
employee engagement
87%Percentage of employees who identified Toll Brothers as a great place to work in 2022 engagement survey
our values
Our values are the guiding principles behind our daily actions and decisions. When faced with a choice on how to get work done or how to behave with each other and our customers, we always look to our values.
A History of Giving Back
Toll Brothers has a proud legacy and an ongoing mission of contributing to major national and regional charitable organizations.
A History of Giving Back
Toll Brothers has a proud legacy and an ongoing mission of contributing to major national and regional charitable organizations.