The Securities and Exchange Commission last week blocked Calabasas-based homebuilder Ryland Group Inc. from removing an environmentalist group’s resolution from its proxy ballot.

Ryland sought to delete the proposal from New York-based Nathan Cummings Foundation, which seeks to require the company to find ways to reduce greenhouse gas emissions those caused by construction and emissions produced by the materials in homes.

The proposal would require the formation of an independent committee of the board, which would prepare a report on how the company is responding to rising regulatory, competitive and public pressure to increase energy efficiency and reduce greenhouse gas emissions. The vote is expected to take place in September, at Ryland’s annual shareholder meeting.

Ryland argued that it should be able to remove the item because the proposal contains statements of opinion and seeks to “micro-manage” financial risks. In addition, the company says that stockholders aren’t capable of making a judgment on the subject matter.

However, in a Feb. 1 letter, attorney-advisor Daniel Greenspan said the SEC wouldn’t allow Ryland to remove the item. “We are unable to concur in your view that Ryland may exclude the proposal,” he wrote. “Accordingly, we do not believe that Ryland may omit the proposal from its proxy materials.”

“We feel this is a long-term shareholder issue,” said Caroline Williams, the foundation’s chief financial and investment officer. “If these issues aren’t addressed it could hurt long-term shareholder value.”

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The full version of this story

is available in the Feb. 14 edition of the Los Angeles Business Journal.