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 greenhouse gas–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

The transformation plan for our building portfolio – our climate pathway – is based on three pillars: increasing efficiency through energy-efficient refurbishment of the building envelope, raising the share of renewable energy at the neighbourhood level (fuel switch), and the long-term transformation of the energy supply (decarbonisation of district heating).

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.

To put this into practice, we use our decarbonisation tool (DKT), which analyses the entire building portfolio using ecological and economic parameters and schedules refurbishment measures by priority. This way, we create an integrated overall plan that combines cost-effectiveness and emission reduction.

Implementation is holistic at neighbourhood level. Measures to the building envelope – such as insulation or window replacement – are combined with conversion to climate-friendly energy systems. Depending on their starting energy efficiency, the buildings are incrementally improved towards climate neutrality. We focus on economically viable, scalable solutions and smart integration of heating, electricity and mobility. To speed up decarbonisation, we are targeting innovative solutions. An essential part is the expanded use of modern heat pump technologies, which make it possible to replace fossil fuels step by step in the existing stock. By partnering to develop heat pump cubes – compact, external heat pump units bundling all essential components to supply several buildings at once – we are also scaling up efficient, space-saving solutions designed for multi-family buildings. Our commitment to energy efficiency and climate protection has, among other things, earned us the RealGreen Award from DENEFF.

With this strategic approach, we make use of opportunities such as reduced energy and CO₂ costs, increased attractiveness of our properties, and positive impacts on value development and customer satisfaction. At the same time, we counter risks such as regulatory changes, rising CO₂ prices, or technological advances through proactive planning and tight integration with our investment and portfolio strategy. The Group’s climate strategy is centrally coordinated by the sustainability division within the CEO function. The energy-related modernisation is implemented by the CRO division through portfolio management, working closely with the regions. Buildings are purposefully selected, and custom modernisation plans are developed. Photovoltaic expansion is managed by the Neighbourhood Works unit within the CRO division and is closely linked to portfolio management. All investments for modernisation and PV expansion are approved by the entire Management Board.

Our Levers for Achieving Climate Protection in the Real Estate Portfolio

Energy efficiency: Energy-efficient refurbishment of the building envelope

Energy-efficient refurbishment is a core component of Vonovia’s climate strategy. With the decarbonisation tool (DKT), each building receives a customised efficiency improvement plan, for example through insulation or window replacements. To minimise costs for tenants, we leverage funding programmes like the Federal Funding for Efficient Buildings (BEG).

Since 2022, we have been accelerating the electrification of heat generation in our portfolio. Our focus is on the heat pump cube—currently, 29 units are in operation. Through our partnership with EnerCube and DFA Aachen, we are able to scale this solution: by 2029, 1,000 cubes are set to be produced to supply 20,000 residential units across Germany.

Fuel switch: Raising the share of renewable energy in the neighbourhood

Another core element of our climate strategy is expanding the generation of energy from renewable sources. This specifically includes the electrification of heat production using highly efficient air-to-water heat pumps.

By the end of 2025, Vonovia will be operating 5,300 photovoltaic systems with a total installed capacity of 188 MWp. Photovoltaics expansion will continue apace over the next years: by 2028, around 400 MWp will be installed, with a long-term target of up to 700 MWp.

Through our own energy utility, Vonovia Energie Service GmbH (VESG), we supply our customers with electricity from renewable sources. As part of our growth strategy, both sales and customer service capacities are being continuously expanded. The goal is to further increase the proportion of self-generated energy and use it for neighbourhood applications such as e-mobility.

By supplying locally generated solar electricity and certified green electricity, we now provide more than 52,000 households with affordable electricity and actively help them cut greenhouse gas emissions. In addition, two power purchase agreements (PPAs) were signed, securing some 27.4 million kWh of wind power. This has saved around 20,700 tonnes of CO₂ equivalents.

Mann in Warnweste und Helm steht vor einer Fabrik.

Decarbonisation of district heating supply

A central pillar of our climate strategy is the provision of CO₂-free district heating and green electricity. To this end, we build strong partnerships in the energy industry and support political targets such as the phase-out of coal and expansion of renewables. Municipal heat planning acts as a reliable framework for the long-term decarbonisation of heating networks. Where district heating is both ecologically and economically viable, we actively promote connecting our portfolio. For this purpose, Vonovia collaborates closely with leading district heating providers and incorporates their transformation strategies directly into our neighbourhood planning. This is how we jointly shape the local heating transition.

A prime example is the Bochum Heat Transition project, in which Vonovia is involved. A key element is the integrated planning of heat and power generation, involving all municipal stakeholders.

Climate Protection in Austria and Sweden

In Austria, BUWOG has partnered with the “klimaaktiv Pakt” since 2011”, a climate protection initiative launched by the Austrian Federal Ministry for Climate Action, Environment, Energy, Mobility, Innovation, and Technology (BMK). As part of this initiative, BUWOG has set a target to reduce greenhouse gas emissions by 55% by 2030 compared to the baseline year of 2005. The majority of this reduction will come from modernizing and upgrading existing properties, with a strong focus on energy-efficient refurbishments, enhancing heating system efficiencies, and transitioning to renewable energy sources. Additionally, BUWOG plans to phase out all oil heating systems by 2030, five years ahead of legal requirements.

In Sweden, most of Victoriahem’s existing buildings are heated by district heating and heat pumps. The heat pumps run on electricity, which in Sweden has a low share of fossil fuels and therefore causes relatively low CO₂e emissions. Further emissions reductions will therefore be achieved mainly by continuously improving the energy efficiency of our buildings. The target is a 30% reduction in energy use per square metre by 2030 compared to 2015. Victoriahem is also a member of the ‘Allmännyttans klimatinitiativ’ run by the Swedish Housing Association. This initiative aims at a fossil-free energy supply by 2030 and a 50% reduction in CO₂e emissions by 2035 compared to 2025. In addition, Victoriahem has set its own climate targets and is working to halve the company’s carbon footprint between 2020 and 2030.

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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