Sustainable Construction and Refurbishment

Our Objectives and Key Performance Indicators

Key performance indicators and target achievement: The average primary energy demand per square meter of newly constructed buildings is the primary non-financial performance metric in our development efforts. This indicator is also a component of the Sustainability Performance Index (SPI). In 2025, the average primary energy demand was 21.9 kWh per sqm.

Medium Target (2030-2045): Our objective is to cap the average primary energy demand of new buildings at approximately 25 kWh/sqm by 2030.

Management Approach

Our subsidiary BUWOG manages Vonovia’s development activities, creating attractive, sustainable and diverse residential neighbourhoods in Germany and Austria. In the context of portfolio development, BUWOG also undertakes densification measures. A core focus lies on developing large inner-city plots in major cities (so-called brownfield projects), to create additional homes and reduce land consumption. Through our new-build and conversion projects, we help provide efficient and resilient housing, meeting rising demand and contributing positively to rental income and property values.

Development activities in Germany and Austria are led by the Chief Development Officer (CDO), with approval of individual projects by the Management Board.

Development activities are guided by a tailored sustainability strategy, covering 14 focus areas that provide guidelines, requirements, and practical tools for sustainable building. Examples include optimised heat supply at the neighbourhood level, use of ecological building materials, and sustainable outdoor design. The aim is to exceed the legal energy efficiency requirements in Germany by at least 10%, or meet the “klimaaktiv” criteria in Austria. With our Building Information Modelling (BIM) strategy, we gain insights into the full lifecycle of our neighbourhoods, which inform further sustainable measures.

At the same time, rapidly changing economic and regulatory conditions can result in higher development and construction costs, threatening project viability. To mitigate such risks, we rely on efficient building methods such as serial and modular construction.

Our Levers for Achieving Sustainable New Construction and Refurbishment

Sustainability Integrated Into the Planning Process

We focus on revitalising urban areas (brownfield projects) to protect undeveloped land. Projects in Hanau and Berlin show how we convert disused industrial areas into green residential quarters – for example, by large-scale land unsealing at Münsterberger Weg.

At the same time, we are driving digitalisation forward with cross-border Building Information Modelling (BIM). Our unified corporate strategy combines German and Austrian expertise to enable more efficient, collaborative construction processes.

Sustainability is embedded as a standardised process within our development activities. Specialised tools ensure that ecological requirements for new construction projects are thoroughly planned, implemented and monitored from the initial stage right through to completion.

Construction Standards and Energy Efficiency

In its new construction and refurbishment projects, Vonovia meticulously ensures optimized energy design and utilizes renewable energies. This is achieved, for example, through adherence to the German Efficiency House standard or the new-build criteria of the Austrian 'klimaaktiv Pakt' initiative. 

The continuous improvement in the energy performance of our new constructions is achieved through two methods: Firstly, by implementing high-standard building insulation and primarily utilizing district heating with a low primary energy factor. Secondly, by increasing the deployment of air source heat pumps in conjunction with photovoltaic systems. These approaches enable us to ensure that more than 55% of the heating and hot water supply is sourced from renewable energy in certain projects. In Austria, we have ceased using natural gas as a heat source in new construction projects since 2022.  

Our projects frequently fulfill the criteria of the Quality Seal for Sustainable Buildings (QNG), which is a prerequisite for eligibility under the Climate-Friendly New Construction (KFN) subsidy.

Sustainable Materials

To minimise the environmental impact of construction, Vonovia aims to reduce the use of new, energy- and resource-intensive materials and instead make greater use of reused and recycled building materials. Throughout all stages of our construction projects, we prioritise environmentally sustainable raw materials, responsible production processes and resource-efficient construction methods.

Material circularity is becoming ever more important. Construction products should be both reusable and of high-quality recyclability. Sustainable building approaches like timber modular and hybrid construction enable demountable structures with lower energy consumption and reduced CO₂ emissions.

Lifecycle assessments are integrated early in the planning process to evaluate the CO₂ footprint from material production and operation through to demolition. We also design flexible floorplans so that buildings can be adapted to evolving needs. Our Life Cycle Mass Circularity Calculator (ÖBIGK) enables early assessment of material quantities and circularity in line with ISO 20887.

Innovations/Modular Construction

We employ innovative processes that enable us to construct in a more sustainable and cost-effective manner. Our strategic collaboration with GROPYUS AG is integral to this approach. Their platform-based solution for modular and prefabricated wood-hybrid construction combines resource efficiency with affordability. 

This initiative will enhance the recyclability of constructions and building projects. We plan to promote this by introducing a recyclability metric and gradually implementing material passports for new buildings. 

To promote sustainable product innovation, we hosted an innovation competition during the 'Perspectives on the Future of Construction' dialogue process, introducing cutting-edge materials and products.

The winners and jury of the Construction Contest 2024 in a group photo

Driving Innovation

As part of the 2024 Construction Contest, Vonovia and BUWOG collaborated with start-ups and companies from the DACH region to discover innovative solutions for sustainable and affordable building. Around 100 companies contributed concepts related to building materials, construction methods and manufacturing technologies, with a strong focus on prefabrication and modular construction. An expert jury from industry and academia chose the winners, which included load-bearing clay bricks, a straw-based drywall system, aerogel insulation, and climate-positive precast concrete modules. These award-winning solutions are now undergoing evaluation for implementation in BUWOG's construction projects.

Vonovia also fosters innovation through its "Perspectives on the Future of Construction" dialogue initiative. Since 2022, this platform has united stakeholders from industry, academia, and government to develop pathways to more sustainable, climate-friendly construction. Working groups involving industry specialists and the Fraunhofer Institute devised concrete approaches, which will be translated into actionable measures and targets - providing guidance for policy frameworks supporting sustainable building.

Sustainability in the Construction Process

Responsible construction site management is at the core of our operations. We comply with the highest occupational health and safety standards in line with the German Occupational Safety and Health Act (ArbSchG). Through targeted safety coordination, we protect the well-being of all employees and reduce disruptions to local residents (such as noise and dust). These stringent standards apply equally to both our main contractors and subcontractors.

In waste management, we strictly follow the Waste Management Law. Consistent waste separation not only reduces our environmental impact, but also cuts disposal costs — a financial incentive firmly embedded in our procurement and tendering processes.

We also place strong emphasis on protecting biodiversity. In accordance with the Federal Nature Conservation Act, we assess potential impacts on protected species early in the planning process. Our internal guidelines —such as for maintaining tree populations—supplement statutory requirements and help safeguard endangered flora and fauna near our construction sites.

Mobility

Sustainable mobility concepts are integral to our development initiatives. We promote sustainable mobility in our projects through various accessible options. For instance, the Helio Tower in Vienna's urban development area 'The Marks' features a unique bicycle arcade, accommodating 2,000 bicycles across the site, including 652 spots designated for the tower. On average, we allocate 1.8 bicycle parking spots per newly constructed apartment. Additionally, we provide a car-sharing program with electric cars, city bikes, and electric cargo bikes, along with up to 27 e-charging stations equipped with intelligent load management in BUWOG's parking garage. New buildings constructed in the reporting year are conveniently accessible from public transport, typically within a four-minute walk.