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Circular economy in the building portfolio

To realise our vision of maximising resource conservation, it is essential to strengthen the circular economy along the entire value chain and reduce the use of primary raw materials. A key lever is extending the service life of buildings through long-term modernisation and creating additional housing by adding storeys to existing buildings. As part of our construction, refurbishment and maintenance projects, we examine the extent to which existing building structures can continue to be used. Where this is technically and legally feasible, we extend buildings by adding storeys or annexes instead of constructing entirely new buildings. In this way, existing components and areas remain in the portfolio and do not need to be fully replaced.

During deconstruction and renovation measures, building materials are separated by type as far as possible so that they can be fed into the available reuse or recycling processes. For disposal and recovery, we follow the applicable legal requirements and the disposal and recovery routes available in each region.

In our neighbourhoods, we implement organisational measures for the separate collection of residual waste, paper, organic waste and other recyclable materials. The specific design – such as container systems, labelling and information materials for households – is tailored to each location in coordination with the relevant waste management companies. The aim of these measures is to separate recyclable material streams from residual waste and to comply with the relevant requirements of municipal waste management practice.

Management Approach

For the modernisation and further development of our portfolio, we use a product manual in which the products intended for key trades are described and systematically recorded. The inclusion of new products is decided by a cross-functional committee that reviews technical requirements, economic efficiency and other professional criteria.

When selecting products, we take into account not only quality and price but also their impact on material use and on energy and resource demand over the life cycle of the respective building components. Our aim in modernisation and maintenance decisions is to avoid unnecessarily impairing the existing material value of buildings and to manage the use of products in such a way that functional and technical requirements are met with an appropriate level of resource consumption.

In addition, circular economy aspects are incorporated into project planning and implementation. This includes, among other things, modular construction and refurbishment concepts, the use of prefabricated components and the early consideration of reuse, maintenance and deconstruction. Where appropriate, environmental impacts and the potential for reuse or source-separated recovery of building materials are taken into account at an early stage of planning.

Through this structured approach, we meet organisational and legal requirements, for example with regard to waste prevention and the recovery of valuable materials, while also addressing risks that may arise from limited availability or price developments of individual materials. As part of the ongoing development of our internal processes, we assess the extent to which criteria such as circularity can be more strongly embedded in the planning, tendering and awarding of construction and refurbishment contracts, and we gradually adapt our product manual to new technical and regulatory framework conditions.

Further information on our approach to the circular economy can be found in Chapter E5 of our annual report.

Our measures

Waste Management in our Portfolio

In our residential neighbourhoods, we organise waste management in such a way that residual waste, recyclables and organic waste can be collected separately in line with local requirements. This includes coordination with the responsible waste management companies, suitable container systems and information materials for residents on how to use the designated collection routes.

In a selected neighbourhood in Essen, we examined the collection and recovery of green waste as well as the separation of recyclables in more detail as part of a pilot project. Among other things, this involved analysing organisational workflows, the labelling of collection points and cooperation with waste management service providers. The findings from the pilot project serve as a basis for reviewing comparable concepts in other neighbourhoods and adapting them where appropriate.

For refurbishment and new-build projects, we ensure that building materials, components and fixtures are selected and processed in such a way that proper disposal, separation or recovery is possible. Where this is qualitatively and technically appropriate, we also use building materials made from already processed secondary materials. In the area of electrical appliances, we install devices that meet the applicable technical and regulatory requirements; specific choices are made on a project-by-project basis.

Our portfolio also includes buildings that were not constructed by Vonovia, and in which materials were sometimes used that were consistent with the technical standards at the time of original construction but are now classified as potentially harmful. Substances such as asbestos, certain older types of artificial mineral fibres (KMF), polycyclic aromatic hydrocarbons (PAH) or lead-based coatings are generally identified, professionally removed and replaced with suitable materials as part of maintenance, re-letting or refurbishment measures. For the disposal of such materials, we commission service providers from whom we expect compliance with the relevant legal requirements, particularly in relation to health and environmental protection. Our employees receive regular training on relevant occupational safety and disposal requirements.

Waste Management at our Locations

At our office locations, separate waste collection in offices and communal areas is organised as standard. Suitable containers for different fractions – such as residual waste, paper and, where available, other recyclables – are provided and appropriately labelled. In our cafeterias, disposable items are avoided wherever operationally feasible; instead, reusable or multi-use alternatives are used.

In Sweden, we inform tenants about the applicable requirements for waste separation and how to use the collection systems provided. In addition, we share practical tips on how to avoid waste in everyday life, for example by reducing packaging waste.

On the basis of available data, we regularly review how waste volumes are developing at selected locations and which organisational adjustments – for instance to collection containers, labelling or information materials – can help reduce residual waste and support the use of designated collection systems.

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