Sustainability Report 2020: Vonovia paving the way for sustainable future - greater responsibility for environment, customers and employees
- Sustainability Performance Index (SPI) introduced as key non-financial performance indicator.
- Binding climate path to carbon-neutral buildings.
- Further increase in customer satisfaction.
Bochum, May 18, 2021. Germany's leading housing company Vonovia has published its Sustainability Report for the 2020 reporting year, in which it underlines its commitment as an active player for sustainable energy and climate-neutral residential housing. Even before the Federal Constitutional Court gave its ruling on the German Climate Protection Act, the company had adopted a binding climate path and introduced a Sustainability Performance Index (SPI). The SPI, which sets specific sustainability targets, is a major non-financial performance indicator, paving the way for a sustainable, carbon-neutral future. Drawing on globally recognized GRI standards, the report shows that Vonovia has further increased its social responsibility for both tenants and employees since the start of the Covid-19 pandemic.
"Vonovia is part of society. As a responsible landlord and employer, we have a special duty to our customers - over one million across Germany, Austria and Sweden - as well as to society, the environment, shareholders, and of course our employees," says CEO Rolf Buch, explaining Vonovia's commitment to sustainability.
The SPI sets specific sustainability targets linked to remuneration
The Sustainability Performance Index, which was first developed in 2020, contains specific sustainability targets and is Vonovia's major non-financial performance indicator. It highlights the importance of environmental, social and governance (ESG) considerations for Vonovia and is linked to remuneration. The SPI reflects the annual carbon savings achieved in existing buildings, energy efficiency in new buildings, and the number of residential units modernized to meet the needs of senior citizens, as well as customer and employee satisfaction, and also diversity at management levels.
Climate protection through innovation - electric heating
To achieve a climate-neutral housing stock by 2050, Vonovia is combating climate change through innovation. Under this policy, Vonovia's neighborhoods are key components in working towards sustainable transport, energy and climate protection. The focus is on a decentralized energy supply where energy is generated, stored and consumed as autonomously as possible on site. This is precisely what the housing provider is exploring at its housing estate in Weitmar, Bochum.
Vonovia's vision for the future is to have electricity for heating generated by solar panels. To achieve this, the company is continuing to expand its use of renewable energy and photovoltaics. Vonovia currently has a portfolio of 420 installations with a rated peak output of 15.9 MW. Last year, this enabled the company to save around 2,700 tons of CO2e.
"Our climate protection measures in existing buildings will reduce our carbon intensity from today's 39.5 kg CO2e/m² to well below 10 kg CO2e/m² by 2050," says Catrin Coners, Head of Sustainability and Strategy. She explains that Vonovia has set itself an interim target of 30 kg CO2e /m² by 2030. This means that Vonovia is within the target spectrum for nearly climate-neutral building stock as defined, among others, by a housing initiative called Initiative Wohnen 2050 (IW.2050). In addition, the company will include the amendment of the German Climate Protection Act in the further development of its climate strategy.
Helping tenants during Covid-19 pandemic
Vonovia is widening its responsibility within society even more. Throughout the pandemic, for instance, it temporarily suspended all rent increases and terminations of rental agreements. Thanks to Vonovia's active hardship management scheme, tenants with financial difficulties are continuing to receive support, so that no one loses their home.
Vonovia waives claw back of foregone rents in Berlin
Although the Federal Constitutional Court has declared the Berlin rent freeze to be unconstitutional, Vonovia is not clawing back foregone rents from its tenants, thus effectively waiving up to € 10 million in rental income. "Our first priority is the welfare of the people who live in our properties. We don't want them to suffer any financial disadvantages resulting of political decisions", says Rolf Buch.
Further increase in customer satisfaction
This decision has also had an impact on customer satisfaction, reflected in an 8.6% year-on-year rise in the company's customer satisfaction index (CSI). Moreover, despite the pandemic, Vonovia has completed 2,088 residential units in Germany, Austria and Sweden. In addition, Vonovia has made its own contribution to climate protection through energy upgrades in 11,300 residential units, thereby increasing the residential quality of each unit.
Increase in number of employees and trainees
Vonovia clearly appreciates the dedication of its workforce, which was reflected in last year's € 1,500 Covid bonus per employee, the highest possible tax-free amount. Also, despite the pandemic, the company further increased its number of employees and trainees. The number of employees rose to 10,622 (up 2.7%) by the end of the reporting period. Trainees, in particular, can find long-term career prospects at Vonovia. 510 budding specialists (up 7.8%) are currently receiving training at Vonovia - more than ever before.
Further development of Vonovia's sustainability strategy
In 2020, the company continued to develop its sustainability management and strategy. This has led to a new materiality analysis, developed through wide-ranging consultations with stakeholder groups. Furthermore, Vonovia set up a separate Sustainability and Strategy Department in the second quarter of 2020, expanding its systematic, cross-departmental approach to sustainability issues. The Sustainability Report 2020, which is both a review and a forecast, clearly shows that Vonovia has explicitly taken its cue from specific UN Sustainable Development Goals (SDGs) that cover sustainable development as well as economic, social and environmental factors.
In the second half of 2020, Vonovia adapted its existing risk management system to reflect its corporate strategy, which itself had been supplemented to include aspects of sustainability. This involved adding and, as a result, assessing sustainability risks not only for their impact on Vonovia itself, but also on the environment and on society at large. The Sustainability Report therefore also deals with climate-related risks.
Improved externally validated performance figures show that Vonovia is making an active contribution to ESG solutions. For example, Vonovia was included in the highly prestigious Dow Jones Sustainability Index for Europe and achieved an excellent position in the sustainability rankings of the Sustainalytics rating agency. Also, since September 2020, Vonovia has been listed in the European blue-chip share index EURO STOXX 50 as the only real-estate company and indeed as the very first residential property company.
GRI standards:
The international GRI standards for sustainability reporting are published by the Global Reporting Initiative (GRI) and are continually under review. The development of these standards involves not only governmental organizations but also NGOs such as environmental and human rights groups and, last but not least, the companies themselves. GRI was founded in 1997 with the help of the United Nations Environment Program and has its office in Amsterdam.
Vonovia's Sustainability Report is only published online - as a contribution to the sustainable use of resources. The German version can be downloaded at the following web address:
The English version is available via the following link:
Caption: Vonovia is increasingly relying on renewable energies such as photovoltaics.
Note on image rights: The photograph may be used free of charge.
About Vonovia
Vonovia offers a home to around one million people in Germany. The residential real estate company plays a central role in society, which is why Vonovia's activities are never focused exclusively on financial aspects, but also take social factors into account. Vonovia is helping to provide answers to the current challenges on the housing market. The company is committed to more climate protection, more senior-friendly apartments and a positive community spirit in its neighborhoods. In cooperation with social institutions and the municipal districts, Vonovia supports social and cultural projects that enrich community life. Vonovia is also helping to address a social issue that is particularly important at the moment: the construction of new apartments.
Our activities focus on our customers and their needs. On site, caretakers and our own craftsmen take care of our tenants' concerns. Being close to our customers ensures fast and reliable service. In addition, Vonovia invests generously in the maintenance of the buildings and develops housing-related services for a better quality of living. For answers to any questions in connection with lease agreements and ancillary expense bills, the central customer service center can be contacted via a regional service hotline as well as by email, fax, app or by post.
Vonovia has a workforce of more than 10,000 employees and its CEO is Rolf Buch.
Additional Information:
Approval: Regulated Market/Prime Standard, Frankfurt Stock Exchange ISIN: DE000A1ML7J1 WKN: A1ML7J Common code: 094567408 Registered headquarters of Vonovia SE: Bochum, Germany, Bochum Local Court, HRB 16879 Business address of Vonovia SE: Universitaetsstrasse 133, 44803 Bochum, Germany
This press release has been issued by Vonovia SE and/or its subsidiaries solely for information purposes. This press release may contain statements, assumptions, opinions and predictions about the anticipated future development of Vonovia ("forward-looking statements") that reproduce various assumptions regarding, e.g., results derived from Vonovia's current business or from publicly available sources that have not been subject to an independent audit or in-depth evaluation by Vonovia and that may turn out to be incorrect at a later stage. All forward-looking statements express current expectations based on the current business plan and various other assumptions and therefore come with risks and uncertainties that are not insignificant. All forward-looking statements should not therefore be taken as a guarantee for future performance or results and, furthermore, do not necessarily constitute exact indicators that the forecast results will be achieved. All forward-looking statements relate solely to the day on which this press release was issued to its recipients. It is the responsibility of the recipients of this press release to conduct a more detailed analysis of the validity of forward-looking statements and the underlying assumptions. Vonovia accepts no responsibility for any direct or indirect damages or losses or subsequent damages or losses as well as penalties that the recipients may incur by using the press release, its contents and, in particular, all forward-looking statements or in any other way, as far as this is legally permissible. Vonovia does not provide any guarantees or assurances (either explicitly or implicitly) in respect of the information contained in this press release. Vonovia is not obliged to update or correct the information, forward-looking statements or conclusions drawn in this press release or to include subsequent events or circumstances or to report inaccuracies that become known after the date of this press release.
18.05.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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