Sustainability at Vonovia

Our Sustainability Strategy

Because of the high social relevance of housing and the need to adapt to climate change, all three dimensions of sustainability (environmental, social and governance issues) play a central role in Vonovia’s business model. Housing is not an ordinary product – it means providing our customers with a home. This gives rise to a particular responsibility towards shareholders, customers and society as a whole. Vonovia actively accepts this responsibility as market leader – for example through its commitment to climate action in the existing portfolio, the expansion of age‑appropriate housing, the promotion of community life in its neighbourhoods and the construction of new homes to meet the urgent demand for housing.

Vonovia’s sustainability strategy is aligned with the three pillars Environmental (E), Social (S) and Governance (G) and derived in harmony with the corporate strategy. As part of the sustainability strategy, Vonovia pursues specific targets:

In the Environmental area, our focus is on climate protection in the property portfolio as well as resource‑ and energy‑efficient new construction and refurbishment in order to achieve current climate protection targets. Our aim is to manage our building portfolio in a greenhouse gas‑neutral manner by 2045. The basis for this is our transition plan for climate action (Climate Transition Plan and Climate Protection in the Housing Portfolio). To implement this, we modernise our neighbourhoods to improve energy efficiency, increase the generation of renewable energy, gradually replace fossil fuels and use technologies for heat generation and storage.

In the Social area, Vonovia assumes responsibility towards its customers and society by providing affordable and needs‑based housing and by pursuing future‑proof neighbourhood development. The goal is to shape and further develop cities and neighbourhoods as places worth living in. At the same time, Vonovia promotes diversity, participation, career development opportunities and the reconciliation of work and private life in order to strengthen employee satisfaction and position itself as an attractive employer.

In the Governance area, Vonovia aims for sustainable corporate management and responsible business practices with reliable compliance. These objectives have a positive effect on the working environment and meet the expectations of the capital market. Vonovia’s business model addresses the socio‑political challenges of housing shortages, affordable housing and climate protection and, through its sustainability targets, makes a decisive contribution to overcoming these issues.

Management of sustainability at Vonovia

In recent years, we have made significant progress in embedding sustainability in the company’s business processes. We actively manage the dimensions of sustainability using our non‑financial performance indicator, the Sustainability Performance Index (SPI), which links our sustainability strategy to clear, remuneration‑relevant targets for the Management Board and top management (first level below the Management Board). The index consists of six sub‑indicators derived from Vonovia’s key sustainability priorities in the E, S and G dimensions:

Embedding sustainability within the organization

At Vonovia, sustainability is a matter for top management. Overall responsibility for sustainability lies with the Chief Executive Officer. On the Supervisory Board side, the Strategy, Finance and Sustainability Committee and, with regard to reporting, the Audit Committee perform the corresponding oversight function.

Vonovia has combined sustainability, strategy and corporate development in a single unit. This unit is responsible for further developing the sustainability and climate strategy and the sustainability agenda in line with the corporate strategy, coordinates the related activities and reports directly to the Chief Executive Officer.

Other core tasks of the department include further developing the sustainability strategy, defining and monitoring sustainability targets, initiating and implementing sustainability projects. The department is also responsible for sustainability reporting, which – in addition to the sustainability disclosures in the annual report – comprises the preparation of the ESG Factbook and the management of numerous ESG ratings.

A sustainability committee meets two to three times a year, as required, to discuss strategic course settings and to assess sustainability performance. The committee consists of the entire Management Board, supplemented by the heads of Sustainability, Corporate Communication, Controlling, Accounting and Investor Relations, and is chaired by the Sustainability department. In this way, we ensure that decisions on the implementation of our sustainability strategy are supported by all areas and across all relevant E, S and G dimensions down to the operational levels on the ground. The operational implementation of sustainability aspects is carried out by all relevant specialist departments and, in the regions, within our neighbourhoods on site. Sustainable principles form part of the self‑image of every employee. This is how we create future‑proof living environments on an equal footing with our customers and for the cities, municipalities and regions in which we are active.

In Austria and Sweden, responsibility for coordinating sustainability is embedded in the respective staff units. They coordinate the interaction between the central Sustainability department and the respective countries, as well as the country‑specific sustainability approaches of the Austrian BUWOG companies and the Swedish Victoriahem.