Sustainability at Vonovia

Our Sustainability Strategy

Sustainable action is an integral part of Vonovia’s corporate identity. We continuously develop our sustainability-oriented agenda to account for societal, political, environmental, and economic changes. Transparent reporting in accordance with the European Sustainability Reporting Standards (ESRS) supports us in describing the interplay between the impacts of our business activities and our sustainability-related opportunities and risks on Vonovia’s stakeholders, and in aligning these with our business processes.

In shaping our sustainability strategy, Vonovia also aligns itself with international standards and frameworks, such as the Sustainable Development Goals (SDGs), the UN Global Compact, the UN Guiding Principles on Business and Human Rights, and the OECD Guidelines for Multinational Enterprises. As an internationally active company, we aim to contribute to achieving these goals through our business operations in Germany, Austria, and Sweden. To this end, we have identified eight key SDGs that guide our actions. We used our materiality analysis (for more information, please refer to our current Annual Report) to establish priorities. This also forms the basis for our ESRS sustainability reporting.

Our value chain is divided into the upstream supply chain, our own business operations, and the downstream stages of our value creation. Our business activities encompass the following core areas: construction, rental, and property management activities, including neighborhood development and customer service, as well as the provision of property-related services (for more information, see the strategy section of the current Annual Report).

The strategy, which will continue to have a commercially successful business model at its core, explicitly addresses the following sustainability topics:

• Contribution to climate protection and CO₂ reduction in existing buildings and new construction (E),
• assuming social and societal responsibility for our tenants, customers, and employees (S), and
• reliable, transparent, and trustworthy corporate governance (G).

Concretely, this means for us:

E: With our 1.5°C-aligned climate path, we are committed to achieving a climate-neutral building stock by 2045, with binding annual interim targets. Successful implementation requires both a high level of renovation depth and increased decentralized use of renewable energies for heat and power supply in our neighborhoods. The neighborhood is the central implementation level for achieving climate protection goals and CO₂ reduction in the building stock. In new construction and redevelopment, the use of renewable energy and sustainable materials plays a key role for us.

S: As a social actor, we take responsibility for our tenants, customers, and employees. We focus on socially responsible and transparent rents and view the expansion of needs-based, social infrastructure—including the integration of innovations and new technologies—as an integral part of our neighborhood development. In doing so, we aim to shape an urban, ecological, and affordable housing offer with social responsibility. Additionally, we face the growing challenge of a skilled labor shortage. To ensure a sufficient and professionally qualified workforce, we offer our employees an attractive working environment characterized by diversity and personal development opportunities.

G: It is part of our self-image to always ensure compliance and a corporate culture that meets current (legal) requirements. In this regard, we rely on reliable, transparent, and trustworthy corporate governance, guided by the best practices of the German Corporate Governance Code. Compliance with laws and internal and external guidelines is a matter of course for us and a fundamental prerequisite for being perceived as a reliable and trustworthy partner.

Sustainability Management / Establishment in the Company

Sustainability is a top management responsibility at Vonovia. The Chief Executive Officer (CEO) is responsible for sustainability at Vonovia. On the Supervisory Board side, the Strategy, Finance, and Sustainability Committee, as well as the Audit Committee for reporting matters, perform the respective oversight functions.

Vonovia has a dedicated Sustainability department, reporting directly to the CEO, which drives and continuously coordinates the company’s sustainability efforts in line with its strategy and business model. Key responsibilities of this unit include further development of the sustainability strategy, deriving and monitoring sustainability targets, initiating and implementing sustainability projects, and overseeing sustainability reporting. This includes not only the sustainability disclosures in the annual report but also the preparation of the ESG Factbook and the handling of numerous ESG ratings.

A sustainability committee meets three to four times a year, as needed, to advise on strategic decisions and assess sustainability performance. The committee consists of the entire Management Board, along with the heads of Sustainability, Corporate Communication, Controlling, Accounting, and Investor Relations. This structure ensures that decisions related to implementing our sustainability strategy are supported by all relevant departments and carried through to the operational levels on the ground.

The operational implementation of sustainability aspects takes place across all relevant specialist departments and regions, right into our neighborhoods on site. Sustainable principles are part of every employee’s mindset. In this way, we develop future-proof living environments in close dialogue with our tenants and for the cities, municipalities, and regions in which we operate.

In Austria and Sweden, sustainability coordination is embedded within the respective staff units. These units coordinate the interaction between the central Sustainability department and the respective countries, as well as the country-specific sustainability strategies of the Austrian BUWOG companies and the Swedish Victoriahem.