Vonovia: SBTi confirms climate targets align with 1.5-degree target of Paris Climate Agreement

• Vonovia is one of six companies in Germany's property sector to be validated by the Science Based Targets initiative (SBTi).
• According to the CDP, Vonovia is recognised as one of the world’s leading companies in climate protection measures and has been awarded an A- rating for best practices.
• The financial market is increasingly calling for effective strategies to meet climate targets.

Bochum, 18 April 2024 - Vonovia, Europe’s leading housing company, has established a range of climate targets that are supported by science-based methodologies. Furthermore, Vonovia SE’s climate path aligns with the 1.5-degree target of the Paris Climate Agreement. This conclusion was reached by the Science Based Targets initiative (SBTi) after a comprehensive assessment of the company’s near-term climate targets for 2030. The CDP also awarded Vonovia an A- (Leadership) in its climate change rating, thus confirming the company’s position as a leading global climate strategist and a benchmark setter in best practices.

“We are delighted that the SBTi has validated our climate targets and therefore affirmed our dedicated efforts in climate protection. Science-based climate targets are of vital importance to the financial market, offering reliability, reducing financing costs and fostering valuable innovation,” says CFO Philip Grosse, highlighting the significance of the A- rating and the validation by the SBTi.

Specifically, Vonovia SE has pledged to reduce its absolute Scope 1 and 2 greenhouse gas emissions by 42% by 2030 compared to the base year of 2021. Additionally, by 2030, Vonovia aims to reduce its absolute Scope 3 greenhouse gas emissions in the categories “Fuel and Energy-Related Activities”, “Use of Products Sold” and “Downstream Leased Assets” by 25% compared to 2021.

The property and construction sectors play a crucial role in achieving the 1.5-degree target, which is why investors are increasingly focusing on independent verification of this ambition.

Confirmation from the SBTi and CDP shows that Vonovia’s sustainability strategy has been setting standards in the property sector for several years. With its climate path, Vonovia aims to achieve a nearly climate neutral building stock in terms of greenhouse gases by 2045. The three main drivers in this regard are a boost in efficiency through energy upgrades for building envelopes, an increase in the share of renewable energies in local neighbourhoods and a comprehensive transformation of the energy sector. In addition, both the management system and the remuneration of its Management Board are fundamentally linked to the Sustainability Performance Index.

The SBTi is a non-profit organisation and comprises the United Nations Global Compact, the We Mean Business Coalition, the World Resources Institute, the World Wide Fund for Nature and (CDP). It develops standards and benchmarks for rating for greenhouse gas reduction targets (GHG targets).

The CDP is a global non-profit organisation that has established a worldwide reporting and rating system for climate and environmental data from companies, cities and countries. It was founded in 2000 and works with over 740 financial institutions, collectively holding more than $136 trillion in assets. Worldwide, over 23,000 companies took part in the CDP Climate Change Rating in 2023. Ratings are provided in four categories: A (Leadership), B (Management), C (Awareness) and D (Disclosure).

Photographic material: Vonovia/Simon Bierwald.

Text: This building was given an energy upgrade and an additional floor in timber construction. It is part of a Dortmund neighbourhood that is currently being connected to a district heating network.