Adapting to Climate Change

Management Approach

Vonovia systematically analyses relevant climate risks and aligns its approach with the requirements of the EU Taxonomy and other recognized frameworks. Using a dedicated IT tool, we model relevant climate scenarios and assess their potential impact on our property portfolio, taking into account property- and neighbourhood-specific factors such as shading, green spaces and surface sealing.

When evaluating climate-related physical risks, Vonovia considers the effects on its property portfolio in Germany, Austria, and Sweden under various climate scenarios through to 2045. Effective adaptation measures at neighbourhood level are derived from these analyses and implemented, especially as part of neighbourhood development projects. The aim is to proactively address negative consequences of climate change – such as rising temperatures, altered precipitation patterns and more frequent extreme weather events – and to ensure long-term quality of life in our neighbourhoods. This also helps to safeguard and future-proof the value of our portfolio.

Climate adaptation is also embedded in our planning guidelines for sustainable open spaces. These include concrete measures to reduce heat effects, improve water management and increase the resilience of our neighbourhoods. By working closely with local stakeholders, authorities and industry partners, we are continually gaining new insights, sharing experience, and developing joint solutions to enhance climate resilience.

Deutschlandkarte zeigt Farbverlauf (2,26 bis 2,91) von West nach Ost

Analysis and Assessment of Physical Climate Risks

Since 2022, Vonovia has been using the climate risk tool (CRT) to systematically identify and assess elevant climate risks based on available data. We have identified six key climate risks that are relevant to our business model and the regions in which we operate: heat, drought, increased precipitation, wind and storms, snow load, and flooding.

Where available, projections for each of these climate-related hazards are shown in the CRT. These projections illustrate how the hazards change under various climate scenarios for the years 2030, 2045 and 2085. We consider the scenarios recommended by the International Panel on Climate Change (IPCC): RCP2.6, RCP4.5 and RCP 8.5. These scenarios encompass a wide range of potential future developments, from scenarios aimed at limiting global warming to around 1.5 degrees Celsius to extreme cases where the planet could warm by more than 4 degrees Celsius. The specific characteristics of climate-related hazards in each scenario indicate the degree of exposure for specific buildings or neighborhoods to climate change. In assessing overall risk, we also consider the condition of the building and various features such as building type, existing sun protection, vegetation, or the extent of surface sealing. This approach provides us with an individual "vulnerability profile". The combination of exposure and vulnerability determines the overall risk related to the specific climate-related hazard under examination. For more details on our climate risk measures, please refer to our latest CDP report.

Measures

We are implementing various measures to mitigate the impacts of climate change and develop climate-resilient neighborhoods. These measures include enhancements directly on buildings, such as installing improved sun protection with blinds and shutters, upgrading to modern windows that reduce heat transmission, and installing green roofs. Additionally, we are implementing measures in the residential environment, such as providing shading through trees and shrubs, reducing surface sealing in parking areas, and improving drainage systems.

We are also working to enhance the resilience of our tree inventory by selecting tree species suited to changing climatic conditions when planting new trees.