Climate Protection in the Housing Portfolio

Our Objectives and Key Performance Indicators

In the area of climate protection, we pursue clear and measurable targets. We distinguish between a medium-term target for 2030 and a long-term target for 2045.

By 2030, we aim to achieve a CO₂ intensity of below 25 kg CO₂e per m² for our building portfolio in Germany.

In the long term, Vonovia aims to achieve a carbon–neutral building portfolio by 2045. This corresponds to a CO₂ intensity of less than 5 kg CO₂e per m² of rental space per year. Remaining residual emissions are to be offset through appropriate carbon removal measures, ensuring overall net zero is achieved.

Both targets take the entire value chain into account and include not only building operations but also upstream and downstream emissions.

Vonovia infographic on greenhouse gas emissions. It shows the distribution of emissions (Scope 1 to 3) along the value chain, with a total of 1.71 million tonnes of CO2e projected for 2025. The climate targets are defined as a reduction in emissions of approximately 25–42% by 2030 and the achievement of net zero by 2045.

Science-based targets

In March 2024, the Science-based Target initiative (SBTi) confirmed that the near-term targets set and submitted by Vonovia SE are in line with the 1.5-degree goal of the Paris Agreement:  

“Vonovia SE is committed to reducing absolute Scope 1 and 2 greenhouse gas emissions by 42% by 2030 compared to the base year 2021. Vonovia SE is also committed to reducing absolute Scope 3 greenhouse gas emissions from the categories “Fuel and energy-related activities,” “Use of sold products” and “Downstream leased assets” by 25% by 2030. 

This places us among the six companies in the German real estate sector to receive such confirmation from the SBTi. Across Europe, only 45 companies in the real estate sector have achieved this distinction. 

Management Approach

Our climate transition plan for our building portfolio – our climate pathway – is built on three key levers: improving efficiency by upgrading the building envelope, increasing the share of renewable energy within our neighbourhoods (fuel switch), and the long-term transformation of energy supply (decarbonisation of district heating). Our climate pathway, with defined CO₂ reduction trajectories, time horizons, investment volumes and external verification, is publicly accessible and regularly updated. Building on this, we use our decarbonisation tool (DKT), which analyses our building portfolio using ecological and economic parameters and prioritises retrofit measures over time. This results in an integrated master plan that links economic aspects with the planned reduction of greenhouse-gas-related emissions.

A waterfall chart illustrates the path to carbon neutrality by 2045. Starting from 38.4 kg CO2e/m² (2021), the intensity is reduced to below 25 kg (2030) and ultimately below 5 kg (2045) through energy efficiency, fuel switching and the decarbonisation of district heating. The remaining emissions will be offset by CO2 removal to achieve the net-zero (0) target.

Implementation takes place at neighbourhood level. Measures affecting the building envelope – such as insulation or window replacement – are combined with the conversion of energy supply systems.

Buildings are gradually upgraded in line with their initial energy performance in order to reduce energy demand and associated greenhouse gas emissions in line with the targets set out in the climate pathway. In doing so, we rely on economically viable, scalable concepts and the coupling of heat, power and mobility.

To accelerate decarbonisation, we are specifically increasing the use of heat pump technologies, gradually replacing existing fossil-fuelled heating systems with electrically powered solutions. Our partnership for the development of heat pump cubes – compact, externally installable heat pump units that bundle all necessary components and can supply several buildings at once – enables space-saving solutions specifically for multi-family buildings. The resulting changes in energy consumption and greenhouse-gas-related emissions are recorded on a project basis and feed into the evaluation of the climate pathway. For our projects in the field of energy efficiency and climate action, we have received several awards, including the RealGreen Award from DENEFF.

With this strategic approach, we aim to reduce energy consumption across our portfolio and, in turn, lower energy and CO₂-related costs over time; the expected effects are quantified in climate pathway scenarios and are reviewed on a regular basis. At the same time, we factor in risks – such as regulatory changes, rising CO₂ prices or technological developments – through forward-looking planning and a close alignment with our investment and portfolio strategy.

The Group’s climate strategy is centrally coordinated by the Sustainability department within the remit of the Chief Executive Officer (CEO). The implementation of energy-efficient refurbishment is managed by the Chief Rental Officer (CRO) via portfolio management in close cooperation with the regional units. Specific buildings are selected and individual refurbishment roadmaps are defined.

The expansion of photovoltaic capacity is managed by the Quartierwerk unit within the remit of the Chief Development Officer (CDO) and is closely integrated with portfolio steering. All investments in energy-efficient refurbishment and photovoltaic expansion are approved by the full Executive Board.

Our Levers for Achieving Climate Protection in the Real Estate Portfolio

Energy efficiency: Energy refurbishment

Energy-efficient refurbishment plays a central role in the Vonovia climate pathway. Using our decarbonisation tool (DKT), each building receives an individual refurbishment plan, for example for measures relating to the building envelope such as insulation or window replacement. To limit the burden on our tenants, we make use of funding programmes such as the Federal Funding for Energy-Efficient Buildings (BEG).

Since 2022, we have been driving the electrification of heat generation in our portfolio. Our main focus is on the heat pump cube; 29 units are currently in operation. A partnership with EnerCube and DFA Aachen enables us to scale up this approach: by 2029, 1,000 cubes are scheduled to be produced, supplying around 20,000 residential units across Germany and gradually reducing the use of fossil-fuelled heating systems.

Fuel switch: use of renewable energy in our neighbourhoods

Another key element in implementing our climate pathway is increasing energy generation from renewable sources. This includes, in particular, the electrification of heat generation through the use of air-to-water heat pumps.

By the end of 2025, Vonovia had around 5,300 photovoltaic systems with an installed capacity of 188 MWp. In the coming years, we will continue to expand our photovoltaic capacity: by 2028, around 400 MWp are scheduled to be installed, with a long-term target of up to 700 MWp.

Through our energy supply company, Vonovia Energie Service GmbH (VESG), we offer our customers certified electricity products from renewable energies. As part of our growth strategy, we are continuously expanding our sales activities and increasing capacity in customer service. Our goal is to further increase the share of self-generated energy and to make it available for residentially related applications such as e-mobility.

By supplying solar power generated within our neighbourhoods and certified electricity from renewable energies, we now provide more than 52,000 households with electricity products that draw on renewable sources and can contribute to reducing greenhouse-gas-related emissions. In addition, we have concluded two power purchase agreements (PPAs), through which around 27.4 million kWh of electricity from wind power have been procured. This corresponds to avoided emissions of approximately 20,700 tonnes of CO₂ equivalents.

Mann in Warnweste und Helm steht vor einer Fabrik.

Decarbonisation of district heating supply

Another lever in our climate pathway is the use of district heating, which is expected to have a lower greenhouse gas intensity in the long term. In this context, we rely on close cooperation with the energy sector and support political objectives relating to the coal phase-out and the expansion of renewable energies.

Municipal heat planning serves as a compass for the long-term decarbonisation of heating networks. Wherever district heating offers suitable long-term conditions from an environmental and economic perspective, we actively promote the connection of our portfolios. To this end, Vonovia works closely with leading district heating providers and aligns their transformation strategies with our own neighbourhood planning.

One example is the “Bochum Heat Transition” project, in which Vonovia is involved. Here, heat and power generation are considered in an integrated way, involving all relevant municipal stakeholders to ensure that the local transition of the energy supply can be planned effectively.

Climate Protection in Austria and Sweden

In Austria, BUWOG has been a partner of the “klimaaktiv Pakt” of the Austrian Federal Ministry for Climate Action, Environment, Energy, Mobility, Innovation and Technology (BMK) since 2011. As part of this pact, BUWOG has set itself the goal of reducing greenhouse-gas-related emissions by 55% by 2030 compared with the base year 2005. Implementation of this target is based on an action plan that focuses in particular on modernisation and improvement of the existing portfolio, energy refurbishment, increased efficiency in heating and the expanded use of energy carriers that have lower greenhouse gas emissions than conventional solutions. In addition, all oil-fired heating systems are to be replaced by 2030 – five years earlier than required by law.

In Sweden, Victoriahem’s existing buildings are predominantly supplied with heat via district heating and heat pumps. The further pathway for emission reductions is driven above all by continuous improvements in the energy efficiency of the buildings. The objective is to reduce energy consumption per m² by 30% by 2030 compared with 2015; the corresponding measures and their implementation status are documented in dedicated climate plans.

Victoriahem has also joined the “Allmännyttans klimatinitiativ” launched by the Swedish housing association. This initiative aims for a far-reaching phase-out of fossil energy sources by 2030 and a 50% reduction in CO₂e emissions by 2035 compared with 2025. In addition, Victoriahem pursues its own climate targets and is working to reduce the company’s greenhouse-gas-related footprint by 50% between 2020 and 2030. This is underpinned by packages of measures and emission pathways that are regularly reviewed.

Relevant Key Figures on Climate and Environment

Bar chart showing the distribution of energy efficiency classes in the German portfolio from 2022 to 2025. The majority of the let space falls into classes C and D (75 to under 130 kWh/m²a), each accounting for around 24–27%. Classes E to H show a slightly declining or stable trend over the years, whilst highly efficient buildings (A+ to B) continue to account for a smaller proportion.

A pie chart shows the Group’s greenhouse gas emissions for 2025 (a total of 1,706 thousand tonnes of CO2e). Scope 3 accounts for the largest share at 53.1% (mainly domestic electricity and upstream energy sources), followed by Scope 1 at 31.1% (primarily natural gas for heating) and Scope 2 at 15.8% (almost exclusively district heating). Smaller categories such as cooling, heating oil and business operations are also listed.

Bar chart showing the CO₂ intensity of the Germany portfolio in kg CO₂e/m² of rental space. It shows a continuous decline between 2021 and 2025: in the Scope 1+2+3.3 category, the figure falls from 38.4 to 30.7, and in the Scope 1+2 category from 34.1 to 24.7. A footnote indicates a change in methodology between 2021 and 2022.

A bar chart illustrates the strong growth in the number of installed photovoltaic systems between 2021 and 2025. The figure rises from 451 systems in 2021 to 1,353 in 2023, reaching a peak of 5,300 systems in 2025. A steep upward trend is particularly evident between 2023 and 2025.

Bar chart showing installed photovoltaic capacity in MWp. Capacity rises from 19 MWp (2022) to 188 MWp (2025). Targets of 282 MWp (2026) and 400 MWp (2028) are shown for subsequent years, marking a continuous growth trajectory.

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