Vonovia Sustainability Presentation
J.P. Morgan Global ESG Conference
March 24, 2021
Agenda
Europe's Leading Residential Property Owner and Operator
We are the long-term owner and full-scale operator of Europe's largest listed multifamily housing portfolio with ca. 416k apartments for small and medium incomes in metropolitan growth areas.
Geographic split (by number of units)1
Germany
Sweden
€56bn portfolio fair market value
€31bn market cap
Austria
€4.4bn Total Segment Revenue
€1.91bn Adj. EBITDA
€1.35 Adj. Earnings ("Group FFO")
Dividend policy: ~70% of Group FFO10,622 employees
1 The small stakes we own in the Dutch and in the French portfolios are less of a financial investment and more R&D to gain an even better understanding of the markets.
Vonovia Contributes to Solutions for Tomorrow's Challenges
Megatrends
Sustainability strategy focused on three dimensions…
Urbanization
An increasing part of the population is moving into urban areas
Climate change & energy efficiency
Ca. 1/3 of greenhouse gas emissions are related to real estate
Demographic change
An increasing share of the population is 65+ years
Commitment to climate neutral building stock until 2050
Responsibility for customers, society and employees
Reliable and transparent corporate governance built on trust
…and aiming to contribute to these key SDGs
Compelling Investment Case
Market Leader | We are Europe's largest residential landlord and the long-term owner and full-scale operator of a multifamily housing portfolio with ca. 416k apartments for small and medium incomes in metropolitan growth areas. |
Uniquely Positioned | The granularity and B-to-C nature of our business are unique in real estate. Our strategy of standardization, industrialization and process optimization makes us the industry leader with best-in-class service levels and superior cost control. |
Low Risk | Fundamental megatrends provide a positive backdrop in a regulated environment that safeguards attractive risk-adjusted returns and offers downside protection. |
Growth | Organic earnings and value growth plus substantial long-term upside potential from acquisitions in selected European metropolitan areas. Low execution risk from track record of acquiring and integrating >300k apartments in eight large transactions since IPO. |
Built-in ESG Focus | All of our actions have more than just an economic dimension. We provide a home to around 1 million people from ca. 150 nations. CO2 emissions related to housing are one of the largest sources of greenhouse gas emissions.As a listed, blue-chip company we are rightfully held to a high standard. |
Impeccable Track Record of Consistent & Sustainable Growth
Confident to Maintain Earnings and Value Growth Going Forward
FFO (€/share)1
2013
2015
2014
2015
2016
2017
2018
2019
2020 2021(E)
Dividend (€/share) - 70% payout ratio from FFO
2013
2014
2016
2017
2018
2019
2020 2021(E)
Adj. NAV (€/share)
LTV and Interest Cover Ratio
2013
2013
2014
2015
2016
2017
2018
2019
2020
2014
2015
2016
2017
LTV (%)Interest cover ratio
2018
2019
target range
2020
Disciplined Capital Allocation Focused on Long-term Earnings and Value Creation
70% of recurring cash earnings (FFO) paid out as dividend
We expect to continue to be able to deliver 0.95 0.67 1.00 sustainably growing dividends
Scrip dividend option since FY2016
Investments in modernization and new construction to hold to address the megatrends urbanization, energy efficiency and demographic change
Drives organic earnings, value growth, and overall portfolio quality
Disciplined and opportunistic approachClear set of criteria to safeguard earnings and value growth for shareholdersImpeccable track record of execution with >300k apartments acquired and integrated since IPO
Shareholder authorization in place (until 2023)
2013
2014
IPO
80 60 40
General preference for allocating capital to 20
2015
2016 2017 2018 2019
Recurring cash earnings ("FFO")1
2020
2021(E)DividendSales
Acq.
New construction 2020
long-term growth of the company 0
Potentially an option in case shares trade
at steep discount to Adj. NAV
Jul-13
Nov-13
Mar-14
Jul-14
Nov-14
Mar-15
Jul-15
Nov-15
Mar-16
Jul-16
VNA share price
Nov-16
Mar-17
Jul-17
Nov-17
Mar-18
Jul-18
Nov-18
Mar-19
Jul-19
Nov-19
Mar-20
Last reported Adj. NAV
Jul-20
Nov-20
Mar-21
2021 Guidance
2020 Actuals | 2021 Guidance | Mid-term Outlook | |
Total Segment Revenue | €4.370bn | ~€4.9bn - ~€5.1bn | growing |
Rental revenue | €2.286bn | ~€2.3bn - ~€2.4bn | growing |
Organic rent growth (eop) | 3.1% (3.6% excl. one-off effect in Berlin) | ~3.0% - ~3.8%1 | stable |
Recurring Sales (# of units) | 2,442 | ~2,500 | stable |
FV step-up Recurring Sales | 39.6% | ~30% | stable |
Adj. EBITDA Total (€m) | 1,910 | 1,975 - 2,025 | growing |
Group FFO (€m) | 1,348 | 1,415 - 1,465 | growing |
Dividend (€/share) | 1.692 | ~70% of Group FFO per share | stable payout ratio; €/share growing |
Investments (€bn) | €1.344bn | ~€1.3bn - ~€1.6bn | at least stable |
SPI | Starting point established | ~100% | continuous improvement |
Note: The 2021 guidance is based on the current legislation under which the CO2 tax is part of the recoverable expenses; equally, the 2021 guidance does not include any positive impacts expected from the Federal Funding Regulation for Energy-Efficient Buildings ("BEG"). 1 If the current Berlin-specific rent freeze regulation is in place at the end of 2021, we expect to come out towards the lower end of the range; if the legislation is no longer in place at the end of 2021, we expect to come out towards the higher end of the range. A ruling by the Federal Constitutional Court is widely expected in Q2 2021. 2 To be proposed to the Annual General Meeting in 2021.
Megatrends - Challenge & Opportunity
Urbanization
An increasing part of the population is moving into urban areas
Energy efficiency
Ca. 1/3 of greenhouse gas emissions are related to real estate
Demographic change
An increasing share of the population is 65+ years
We are providing apartments at fair price levels to a growing urban population
Our products and services give more than one million people an affordable home in their apartment and neighborhood
We are a driving force of the industry and have committed ourselves to a binding climate path for a CO2 neutral portfolio by 2050
The energy-efficient modernization of the housing stock and innovative solutions for carbon neutral residential neighborhoods are paramount for achieving climate protection targets
We are preparing at least one third of all apartments that become vacant for elderly tenants
Demographic changes require refurbishing apartments to enable an ageing population to stay in their homes with little or no assistance for longer
Our scale, sustainable business model and access to capital markets enable us to assume a leading role in our industry for finding and implementing solutions.
Materiality Analysis Shows the Key Sustainability Topics for Vonovia
Process & result of the materiality analysis
Stakeholder survey: online survey (142), stakeholder interviews (42)
Assessment of business relevance and evaluation of the company impact via workshops
11 key topics
A1 | A home at a fair rental level |
A3 | Adequate products and services in relation to demographic change |
A5 | Customer satisfaction and service quality |
B1 | Neighborhood development and contribution to infrastructure |
C1 | Sustainable new construction and refurbishment |
D1 | CO2 reduction of existing buildings |
D2 | Renewable energies and energy mix |
E1 | Attractiveness as an employer |
E4 | Diversity and equal opportunities |
F1 | Governance and compliance |
G5 | Capital markets appeal |
Vonovia's Sustainability Targets
Customer satisfaction & service quality
Increase customer satisfaction (Customer Satisfaction Index, CSI) - ~0.5 %points p.a.
Workforce gender Diversity
Increase in the proportion of women in the top two management levels below the
Management Board - ~26%
Agenda
Vonovia's Climate Path towards CO2 Neutrality through Continued Modernization, Renewable Energy and Sector Coupling
Illustration of different climate path scenarios 2020-2050 (CO2 intensity)
CO2/kg/sqm
2020E
2030E
2040E
2050E
Energy efficient modernization rate Germany (1%)
Energy efficient modernization rate Vonovia (3%) -60% reduction, 3% energy efficient modernization rate -60% reduction, 3% energy efficient modernization rate + gas condensing & solar thermal technology -60% reduction, 3% energy efficient modernization rate + proprietary district heating, sector coupling / or + heat pump / or + PV Target path of German government 2030 / scenario for climate neutral housing portfolio
CRREM 2-degree path 04/2020
Target corridor
Note: This climate path refers to the German portfolio; we are in the process of developing separate climate paths for the portfolios in Austria and Sweden. Source: Fraunhofer ISE modelling of Vonovia portfolio. Reduction of energy need of 160 kWh towards 60% through the following measures: Building envelope (insulated facade, windows) to become KFW Standard 100-70; scenarios 2 and 3 include the simulation of a change of energy sources. 1 In order to achieve the climate neutral case certain regulatory adjustments still need to be made and not all of the technological concepts have been fully developed yet.
Modernization of Building Envelope plus Fuel Switch for the Portfolio
Vonovia Portfolio - Energy Efficiency Class Distribution (%) (kWh/sqm/year) 2019 data
25.4
A+ below 30
A 30 - below 50
B 50 - below 75
C 75 - below 100
D 100 -E 130 -F 160 -G 200 -below 130 below 160 below 200 below 250
H more than 250
no classification
26.8%73.2%
Vonovia's CO2 reduction strategy
Energy-efficient modernization of ca. 3%
Continue building modernization with even greater depth (up to 60%)
Additional efficiency gains from fuel switch & renewable energy (generated, stored and used locally):
Green district heatNew technologies
Sector coupling in the neighborhood
(PV & mobility)
New construction: CO2 optimized, use of renewable energy (energy efficiency class A and better)
Environment KPIs
Methodology & Framework
GHG Protocol
All buildings (incl. listed buildings)Sqm numbers in line with GdW and
Initiative Wohnen.2050 standard based on lettable area (not total building sqm, which would be ca. 1.2x larger)
Energy consumption (kWh/sqm)1
CO2e intensity (kg CO2/sqm)1
2019163 2019
2020157 2020
Scope 1, 2 and 3 2
Scope 1 and 2
Scope 1, 2 and 3 2
Consumption based on EPCsGEMIS factors
Scope 1 and 2
47.0
41.8
43.9 39.9
CO2e emissions, Scope 1 and 2 (2019)1
CO2e Emissions by energy source
(2019)1
Scope 1
Scope 2
1 German portfolio. 2 energy related scope 3 emissions 3 Incl. portfolios in Austria and Sweden.
Natural gasHeating oilCoalElectricityDistrict heating
Electricity for common areas
PV installations
("1,000 roof program")3
2019295
2020424
Solar power generation
5,652 MWh
7,324 MWh
Technologies for Reaching Climate Path Objectives Innovation for CO2-neutral Heat Generation
Existing technologies
Innovation for CO2-neutral Heat Generation
Continue energy efficient building modernization with a 60% reduction rate for post-refurbishment energy need
Replacement of oil heating systems with gas condensing boilers
Hybrid heating (combination of condensing boilers and solar, renewable)
Heat pumps
Green district heat
Sector coupling
Tomorrow's Energy Center
Construction of a proprietary research center in Bochum Weitmar to develop renewable energy systems
Integration of technologies such as fuel cells, electrolyzer, etc.
The objective is to evaluate different technologies in terms of economic and ecological impact with a view to roll them out in other neighborhoods of our portfolio
Pellet Heating Project
Pellet heating is almost climate neutralParticularly suitable in connection with local district heating
Pellet costs are similar to gas costs; heating plants are more expensive
When subsidized, pellet heating is a viable ecological and economically feasible alternative
First concepts for potential pilots underway
Energiesprong - Serial Refurbishment
Concept for cost-neutral modernization by combining serial refurbishment and the integration of renewable heat and electricity
First pilot in Bochum about to be implemented;
Additional pilots planned until 2024
Hydrogen Technology
Decentralized generation of green hydrogen via PV
Areas of application:
Hydrogen storage for subsequent heat generation
Disposal of hydrogen
Technology currently still too expensive; a growing market is expected to lead to substantial cost reductions, rendering H2 economically feasible
page 16
Energy Innovation Center Bochum Weitmar
Together with renowned Fraunhofer Institutes, Vonovia is implementing a 3yr-hands-on innovation project as part of Open District Hub e. V. in our neighborhood in Bochum-Weitmar to develop and test new technologies in ongoing operations.
The aim is to supply the neighborhood with largely carbon-neutral electricity & heating. We aim to achieve this by linking the energy sectors via a central platform.
A smart, self-learning energy management system then ensures that the right energy is distributed to tenants when they need it - at electric charging stations, in the form of electricity for tenants' own households or in the form of heating.
LevelMeasure
Implementation of measures that do not involve any structural intervention, e.g., optimized heating system settings
Digitalization of buildings and apartments, e.g., to feature smart meters
Energy-efficient refurbishment, e.g., measures relating to the building shells and heating systems
4 Infrastructure for e-mobility, e.g., charging stations and e-wall socketsSustainable energy supply, e.g., photovoltaic systems for tenant electricity
Building digitalization and networking
Sector coupling (heat, electricity, mobility, etc.) in the neighborhood via digital platform
Storage and distribution of energy generated in a decentralized structure enables on-site consumption
Promotion of biodiversity
New Construction and Development Projects are Sustainable and CO2-optimized
Vienna (Marina Tower)
- ca. 500 condominiums
- ÖGNI NH Certificate Gold / klimaaktiv Gold Certificate
- Low-emission and low-pollution building materials
- Sustainable mobility concept
Buchloe (An der Halde)
- New construction of 27 apartments (50% of them barrier-free)
- Wood hybrid construction
- Energy efficiency class A+ / Standard KfW 55
- Pellet heating incl. earth bunker
Berlin-Grünau (Pilot Houses)
- 2-5 room apartments
- Wood-hybrid construction
- Low-emission and low-pollution building materials
-Low-energy houses Standard KfW 40
New construction projects geared towards energy efficiency
Use of renewable energies (PV, CO2, renewable heating)Mainly A+ KfW Program 55
Objective 2020
85% of new constructions with energy efficiency class A / KfW 55 standard
Promotion of Biodiversity in Our Neighborhoods
Vonovia facts
15 million square meters of green spaces
220,000 trees
23 tree species, 20 of which are climate-resistant
1,000 replacement plantings
300 km hedges
Cooperation with NABU NRW
Cooperation with NABU NRW since the end of 2019 and other partners (Animal Aided Design, Emscher Genossenschaft Innovation City, ...)
Nationwide cooperation with NABU in preparation from 2021
Central cooperation for neighborhood development: Pilot project launched in Bochum-Weitmar
Measures implemented
Nesting aids for bats and birds / Elements for facade greening
approx. 100,000 sqm wildflower meadow
Green roofs
Ecological pruning
Products
Wildflower meadow with nesting aids (insect habitats)
Roof/facade greeningOrganic tenant gardensFloristic resilience and diversityEcological pruning
Rainwater Management
Vonovia's Green Bond Framework at a Glance
Vonovia has established a Green Bond Framework under which the company aims to issue Green Bonds to support its sustainability strategy
Aligned with Green Bond Principles 2018 (GBP) overseen by the International Capital Markets Association (ICMA)
Contributing to the United Nations Sustainable Development Goals
Inaugural green bond issued on March 17:10-year maturity€600m volume0.625% coupon
Green Finance Committee will oversee the evaluation and selection of eligible projects
3 Eligible Green Categories:
Green buildings and energy efficiency
Renewable energyClean transportationEligible Green Register to track net proceeds with bond-by-bond approach
Full allocation within 2 years following each bond issuanceAllocation reporting with list of financing per category and unallocated proceeds
Impact reporting with details on Environment impact of the projects financed
Inaugural Green Bond issuance: Focus on green buildings in Germany
Five Areas of Action to Achieve CO2-neutral, Energy-autonomous Neighborhoods for a Decentralized Energy Revolution
Renovation rate
Increase renovation rate and enable
Energiesprong
(energy efficiency leap) through high-quality, swift, and affordable renovation
Spread between gas and electricity needs to be further reduced to enable electricity-based, low CO2 heat supply
Renewables
Include landlord-to-tenant electricity in recoverable expenses
Resi sector needs to be included in national Hydrogen Strategy
As a leader for climate protection in the residential sector Vonovia hosted the climate conference "Outlook for Climate-neutral Living" in Berlin on October 1, 2020.
System change
Accelerate conversion of the electrical energy system
Modify regulation to support decentraliz-ed electricity productionPromote new energy markets for the financing of flexible electricity generators
Mobility
Accelerate charging infrastructure and market availability of e-vehicles thorough tailored subsidy programs for resi sectorEstablish standards for technical connection needs of grid operators plus grandfathering clause for installing charging stations
Stakeholders
Simplify landlord-to-tenant electricity models in resi sector
Raise awareness why we need energy transitionFacilitate landlord-to-tenant electricity in multifamily housing
Three essentials |
|
Update on Regulation (I)
CO2 tax | As of January 1, 2021, CO2 emissions from fossil heating and fuel in Germany are taxed at a rate of €25 per ton of CO2; this rate will increase to as much as €55 by 2025 Based on current legislation, the tax is fully recoverable and borne by tenants A discussion is underway about how the CO2 tax should be shared between tenant and landlord, also with a view towards setting the right incentives for energy savings Because the CO2 emission of a building is determined by tenants' heating consumption and the energy efficiency of the building, Vonovia supports a burden sharing between tenants and landlords based on the building's energy efficiency |
Renewable Energy Act (Erneuerbare-Energien-Gesetz) | Better incentives for landlord-to-tenant electricity models Improved conditions for on-site energy generation "Neighborhood concept" - electricity can now be consumed by tenants in other buildings in the neighborhood, not only in the building in which it was generated Vonovia Proposal More efficient energy class lower Landlord's contribution to CO2 tax higher Less efficient energy class |
Update on Regulation (II)
Federal Funding Regulation for Energy- efficient Buildings ("Richtlinie für die Bundes- förderung für effiziente Gebäude - Wohngebäude, BEG WG") law enacted | Scope and content of the regulation | Developed by Germany's Federal Ministry for Economic and Energy Affairs; effective on July 1, 2021 The goal was to harmonize the different subsidy regulations and combine them into one single, comprehensive subsidy program for existing and new buildings The objective is to set adequate incentives for owners to substantially increase investments in energy-efficiency and renewable energy Subsidies are determined by the amount of energy efficiency gains and the proportion of renewable energy contribution in heating supply resulted from projects and can be as high as 45% of an investment amount up to €120k/apartment Flexible funding format - applicants can choose between investment grants or subsidized loans Targeted subsidy volume is €32bn p.a. until 2030 |
Expected impact on Vonovia | Increased investment volume in energy efficient modernization Acceleration of CO2 reduction efforts Additional NAV growth Increased modernization depth Rental growth and investment yields expected to remain broadly similar Higher EBITDA contribution in the Value-add segment from increased volume through Vonovia craftsmen organization Improved social acceptance of energy-efficient modernizations because of reduced modernization allowance and increased savings on heating bill Vonovia is reviewing its Upgrade Building Program and portfolio in light of the new regulation to achieve the best possible outcome for our stakeholders by selecting the right subsidy elements for each individual project |
Agenda
Balanced Stakeholder Approach
Self-imposed obligation to cap modernization rent increases to max.
€2 per sqm; Guarantee to tenants 70+ years that rents will remain affordable even if market rents changeHardship case management to effectively assist tenants in financial distressCOVID-19 - special promise that we will find individual solutions for tenants who struggle financially; no one to lose the roof over their head
Culture & change - we share a common culture of diversity, performance and appreciation in an developing organization that embraces change
Vonovia Service App
135,000 downloads 45,000 users
Vonovia's customer service app for tenants and potential tenants Full customer life cycle in one app
Communication Digital postboxNews FeedMicro surveys | Transparency Ancillary expenses: online receipts and billing Status of submitted requestsPush notifications |
Self-service Online-booking of repairsAccount managementDocument management | Upgrades planned for 2021 Digital rental contractApartment search Monitoring of heating and water consumption |
Apartment searchPreferences / profilesPlatform potentail
Potentialtenant
New tenantExisting tenant
Self service TransparencyDigital rental contractCross selling
Seamless transformation
Preferred search requests
Neighborhoods / Urban Quarters
"In residential real estate, a neighborhood, or urban quarter, is usually defined as a cohesive urban structure that is considered by its inhabitants as a self-contained area. It is the predominant aggregation level where a real estate company can make the
biggest difference and most positive contribution for inhabitants."1
Every urban quarter is unique…
Approx. three quarters of Vonovia's German portfolio are located in almost 600 urban quarters, each with an average of 430 apartments. This is the right level to manage the megatrends.
1 Source: GdW (Association of German Housing Companies)
Properties
Location, construction year, infrastructure, investment potential, competition, urban development
Customers
Existing and potential tenants, age structure, diversity, purchasing power
Big Picture
Urbanization, climate change, ageing population, integration
… but for each one we pursue a holistic approach
Neighborhood Development Projects
While each project is different depending on specific local requirements and opportunities, neighborhood development projects usually include energy efficient modernization, construction of new apartments, apartment modernization and general upgrade of the urban quarter's environment.
Bielefeld (2017)
Sennestadt 314 apartments 4 years construction time €16m investment
Frankfurt (2017)
Knorrquartier 150 apartments 2 years construction time €15m investment
Dortmund (2017)
Westerfilde Nord + Süd 658 apartments 3 years construction time €28m investment
Essen (2016)
Eltingviertel 424 apartments 5 years construction time €27m investment
Aachen (2016)
Preuswald 397 apartments 3 years construction time €10m investment
Bochum (2019)
Weitmar 574 apartments 4 years construction time €81m investment
Duisburg (2019)
Hüttenheim 240 apartments 3 years construction time €27m investment
Note: Year refers to year of initial investment. Pie chart refers to estimated degree of project completion.
675 apartments 5 years construction time €32m investment
Hamburg (2018)
Wilhelmsburg
1,451 apartments
5 years construction time €90m investment
Berlin (2017)
Lettekiez
919 apartments
3 years construction time €36m investment
Berlin (2017)
Tegel- Ziekowstraße
1,470 apartments
6 years construction time €111m investment
Berlin (2016)
Afrikanisches Viertel
422 apartments
5 years construction time €43m investment
Kiel (2018)
Gaarden (Förde)
Wustermark (2020)
Elstal
70 apartments
4 years construction time
€8m investment
Kornwestheim (2019)
Südkorn
288 apartments
4 years construction time €34m investment
Support for Social and Community Activities in Our Neighborhoods
We get involved on site - for different projects and associations, so that our tenants feel comfortable in their neighborhood and home.
New football field in Cologne - Gremberg | Vonovia supports the City of Cologne and the Lukas Podolski Foundation in Cologne-Gremberghofen Construction of a new modern and functional soccer field and youth club with many sports and vacation offers The land was made available by Vonovia free of charge for 10 years |
Strengthen Parents International | Vonovia tenant foundation supports project "Strengthen Parents International The offer is aimed specifically at parents of refugee families, who are to be respectfully supported and strengthened. |
Dementia residential Dementia WG housing | Vonovia cooperates with the service provider Humanika and has set up a dementia home for ten residents. People receive assistance in coping with everyday life and, if necessary, medical care. |
Agenda
Highly Robust Governance
Dedicated ESG Department reporting directly to the CEO; The Supervisory Board monitors ESG issues in the Audit Committee;
Sustainability Committee meets at regular intervals and on a need-basisNumerous policies published (e.g. human rights, whistleblower, tax understanding, etc.) Committed to ILO Core Labor Standards and UN Global Compact on
Human Rights
Sustainability Performance Index (SPI)
Vonovia has established the Sustainability Performance Index with quantitative, non-financial KPIs to measure sustainability performance in the most relevant areas
SPI reporting is audited by our statutory auditor1
The SPI is a relevant criterion in the long-term incentive plan for the executive board2 as well as for the leadership group below the executive management
To achieve the target of 100%, all six individual targets must be fully achieved
SPI
2020 Actuals | 2021 Targets | Medium-term Targets | ||
1 | CO2 intensity in the portfolio3 | 43.9 (kg CO2e/sqm p.a.) | Reduction of at least 2% | <40 (kg CO2e/sqm/p.a.) |
2 | Average primary energy need of new constructions | 35.7 (kWh/sqm p.a.) | Substantial increase4 | ~33 (kWh/sqm p.a.) |
3 | Ratio of senior-friendly apartment refurbishments among all new lettings3 | 30.1% | ~30% | ~30% |
4 | Customer satisfaction3 | +8.6% | In line with prior-year level | Avg. increase of ~0.5 %points p.a. |
5 | Employee satisfaction | No survey | Slight increase | Avg. increase of ~1.0 %point p.a. |
6 | Workforce gender diversity (1st and 2nd level below top mgt.)5 | 25.9% | In line with prior-year level | ~26% |
~100% |
1 Limited assurance. 2 Subject to approval of the new executive management remuneration scheme by the AGM to be held on April 16, 2021. 3 Germany only at this point. 4 Initial increase because of projects approved in the past (prior to establishing the SPI) that will be completed in 2021. 5 Based on female representation within overall workforce.
Related page(s): 42-47
Recognition of ESG Performance
ESG Ratings and Indices
ESG Ratings
2016 2017 2018 2019 2020 | Upgraded in both ratings in 2020; Risk rating within 1st percentile of global rating universe ESG Risk Rating 2020 100 ESG Company Rating 83 50 52 58 7.7 50 02017 2018 2019 2020 |
Upgraded from BBB to A 30% 20% 10% 0% CCCBBBBBBAAAAAA | Reduced from B to B- 40% 20% 0% D C B A |
Upgraded from C- to C 40% 20% 0% D-DD+C-CC+B-BB+A-AA+ | 57 Inclusion in Dow Jones Sustainability Europe Index |
Currently no participation. For more information please visithttps://investoren.vonovia.de/en/vonovia-at-a-glance/sustainability/ |
ESG Indices
Vonovia is a constituent of various ESG indices, including the following: DAX 50 ESG, STOXX Global ESG Leaders, EURO STOXX ESG Leaders 50, STOXX Europe ESG Leaders 50, Dow Jones Sustainability Index Europe.
Vonovia's Sustainability Organization
Board of Directors:
Defines sustainability strategy
Sustainability Committee:
Meets 3-4 times a year (Management Board / Heads of Sustainability, Communications. Investor Relations and Financial planning & Analysis) Sustainability Agenda Vonovia Decides on strategic directions and sustainability goals
Sustainability Department:
Further development of the
sustainability strategy & roadmap
Defines and monitors sustainability
goals
Implements sustainability projects
Oversees sustainability initiatives
Gives impetus and drives initiatives
Responsible for reporting, sustainability
report
Corporate Governance - AGM, Supervisory Board, Management Board
The duties and authorities of the three governing bodies derive from the SE Regulation, the German Stock Corporation Act and the Articles of Association. In addition, Vonovia is fully in compliance with the German Corporate Governance Code.
In the two-tier governance system, the management and monitoring of the business are strictly separated from each other.
Annual General Meeting (AGM)
• Shareholders can exercise their voting rights.
• Decision making includes the appropriation of profit, discharge of members of the SVB and MB, and capital authorization.
Two-tier Governance System
Supervisory Board (SVB)
• Appoints, supervises and advises MB
• Examines and adopts the annual financial statements
• Forms Supervisory Board Committees
• Fully independent
• Board profile with all required skills and experience
Jürgen Fitschen (Chairman)
Prof. Dr. Edgar Ernst
Burkhard Ulrich
DrescherVitus Eckert
Dr. Florian
FunckDr. Ute Geipel-FaberDaniel JustHildegard Müller
Prof. Dr. Klaus Rauscher
Dr. Ariane ReinhartClara-Christina
StreitChristian Ulbrich
Management Board (MB)
• Jointly accountable for independently managing the business in the best interest of the company and its stakeholders
• Informs the SVB regularly and comprehensively
• Develops the company's strategy, coordinates it with the
SVB and executes that strategy
CEO
CFO
Rolf Buch
Helene von Roeder
CRO
CDO
Arnd Fittkau
Daniel Riedl
EU Taxonomy
EU Strategy on Sustainable Finance
Sustainable finance / EU Taxonomy - EU classification framework for sustainable investments to redirect future investments streams
Vonovia refurbishment of around 3% rate in line with EU requirementRelevant screening criteria for real estate/construction:
Energetic renovation: reduction of primary energy demand of at least 30% compared to status before renovation - local standards GEGnew construction: primary energy demand must be lower than 20% than national net-zero-energy-building (NZEB); in Germany = GEG / EnEV 2016acquisitions & ownership of buildings: latest version refers to performance of buildings with EPC A
DNSH ( "do not significant harm criteria" ) to be defined in more detail and based on in place management-systems
Reporting processes need to be aligned with taxonomy criteria - Taxonomy compatibility expected to differ strongly with respect to CAPEX or turnoverTimeframe of Taxonomy implementation needs to be clearer - 2021 needs to be a transition year to prepare
Vonovia's Approach to Climate Action Reflects the TCFD Recommendations
Governance | Board responsibility for climate action, defines strategy and targets and monitors progressCentral Department Sustainability/Strategy to coordinate measures ESG Score as central management KPI including CO2-Intensity |
Strategy | CO2 reduction in building stock & construction defined as major drivers for business strategyHigh modernization rate of ≥ 3% p.a. and fuel-switch to renewable energies Scenario modelling of climate pathways together with Fraunhofer Society |
Risk Management | Climate change fully integrated in Corporate Risk Management Physical risks assessed via risk maps based on regularly updated sourcesNo material physical risks for Vonovia's properties identified |
Metrics & Targets | 1.147 mn t CO2e in portfolio in 2019 (scopes 1,2,3 acc. to GHG protocol)Targets: GHG neutral building stock until 2050CO2-intensity of 30-35 kg/m²/a until 2030 |
Disclaimer
This presentation has been specifically prepared by Vonovia SE and/or its affiliates (together, "Vonovia") for internal use. Consequently, it may not be sufficient or appropriate for the purpose for which a third party might use it.
This presentation has been provided for information purposes only and is being circulated on a confidential basis. This presentation shall be used only in accordance with applicable law, e.g. regarding national and international insider dealing rules, and must not be distributed, published or reproduced, in whole or in part, nor may its contents be disclosed by the recipient to any other person. Receipt of this presentation constitutes an express agreement to be bound by such confidentiality and the other terms set out herein.
This presentation includes statements, estimates, opinions and projections with respect to anticipated future performance of Vonovia ("forward-looking statements") which reflect various assumptions concerning anticipated results taken from Vonovia's current business plan or from public sources which have not been independently verified or assessed by Vonovia and which may or may not prove to be correct. Any forward-looking statements reflect current expectations based on the current business plan and various other assumptions and involve significant risks and uncertainties and should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Any forward-looking statements only speak as at the date the presentation is provided to the recipient. It is up to the recipient of this presentation to make its own assessment of the validity of any forward-looking statements and assumptions and no liability is accepted by Vonovia in respect of the achievement of such forward-looking statements and assumptions.
Vonovia accepts no liability whatsoever to the extent permitted by applicable law for any direct, indirect or consequential loss or penalty arising from any use of this presentation, its contents or preparation or otherwise in connection with it.
No representation or warranty (whether express or implied) is given in respect of any information in this presentation or that this presentation is suitable for the recipient's purposes. The delivery of this presentation does not imply that the information herein is correct as at any time subsequent to the date hereof.
Vonovia has no obligation whatsoever to update or revise any of the information, forward-looking statements or the conclusions contained herein or to reflect new events or circumstances or to correct any inaccuracies which may become apparent subsequent to the date hereof.
This presentation does not, and is not intended to, constitute or form part of, and should not be construed as, an offer to sell, or a solicitation of an offer to purchase, subscribe for or otherwise acquire, any securities of the Company nor shall it or any part of it form the basis of or be relied upon in connection with or act as any inducement to enter into any contract or commitment or investment decision whatsoever.
This presentation is neither an advertisement nor a prospectus and is made available on the express understanding that it does not contain all information that may be required to evaluate, and will not be used by the attendees/recipients in connection with, the purchase of or investment in any securities of the Company. This presentation is selective in nature and does not purport to contain all information that may be required to evaluate the Company and/or its securities. No reliance may or should be placed for any purpose whatsoever on the information contained in this presentation, or on its completeness, accuracy or fairness.
This presentation is not directed to or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.
Neither this presentation nor the information contained in it may be taken, transmitted or distributed directly or indirectly into or within the United States, its territories or possessions. This presentation is not an offer of securities for sale in the United States. The securities of the Company have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States. Consequently, the securities of the Company may not be offered, sold, resold, transferred, delivered or distributed, directly or indirectly, into or within in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States unless registered under the Securities Act.
Tables and diagrams may include rounding effects. Per-share numbers for 2013 and 2014 are TERP-adjusted.
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Vonovia SE published this content on 23 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 March 2021 11:18:09 UTC.