Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economy
• Environment
• Social
• Governance

Environmental Achievements

• Replaced all wooden windows in one asset, resulting in a 1.1% reduction in energy consumption in that asset between 2007 and 2009 despite a 2% increase in heating consumption across the Hamburg portfolio due to an exceptionally cold winter.
• Mundsburg Office Tower received DGNB Silver pre-certificate for modernization of office and administrative buildings.

Social Achievements

• Relocation of the Ohnsorg Theatre to a new, refurbished space, securing its future and creating a new cultural district.
• Offered rent-free space to cultural and research events in Hamburg.

Governance Achievements

• Established a compliance organization with a Compliance Officer reporting directly to the Chairman of the Management Board.
• Implemented a Code of Conduct with training for 87% of employees.

Climate Goals & Targets

Environmental Challenges

• Data collection and measurement challenges for a first sustainability report.
• Limited data available prior to 2007 due to company founding in 2006.
• Potential consequences of climate change (increased utility costs, regulatory burden, flash flooding).

Mitigation Strategies

• Focused data collection on Hamburg assets managed by the internal Property Management team.
• Implemented a structured risk management system and early warning system.
• Sponsored a research study on the impact of rising transportation costs on urban organization.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference for local suppliers (over 50% in 2009)

Climate-Related Risks & Opportunities

Physical Risks

• Flash flooding

Transition Risks

• Increased utility costs
• Increased regulatory burden

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G3

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Economy
• Environment
• Social
• Governance

Environmental Achievements

• DGNB silver pre-certificate for Mundsburg Office Tower refurbishment, targeting 80% reduction in primary energy consumption and 875 t CO2e reduction annually.
• Implemented solar energy and rainwater harvesting at Bäckerbreitergang headquarters.
• Reduced business travel by plane by approximately 50% compared to 2009.

Social Achievements

• Refurbishment of Bieberhaus for Ohnsorg Theatre, preserving cultural heritage.
• Support for Viva con Agua initiative.
• Internal sustainability workshop for all employees.

Governance Achievements

• Established a compliance organization with a whistleblower hotline; no incidents reported in 2010.
• Amended Management Board remuneration system in accordance with VorstAG.
• Introduced a new pension plan for all employees (excluding Management Board).

Climate Goals & Targets

Environmental Challenges

• Data gathering on energy consumption and CO2 emissions from tenants.
• Limited control over tenants' energy and water consumption.

Mitigation Strategies

• Continuous work on data collection process to increase the number of monitored assets.
• Engagement in a 'Green Leases' working group to develop standardized green lease contracts.

Supply Chain Management

Responsible Procurement

• Favoring local SMEs

Climate-Related Risks & Opportunities

Physical Risks

• Changes in temperature extremes
• High significant precipitation
• Sea level rise
• More extreme events

Transition Risks

• Strict legislation amendments
• Changing tenants’ behaviour

Opportunities

• Increase of attractiveness of assets
• Better control on obsolescence of assets
• Safeguarding historical assets

Reporting Standards

Frameworks Used: GRI G3.1, EPRA Best Practices Recommendations, CRESS

Awards & Recognition

• EPRA GOLD Award
• LACP GOLD AWARD
• LACP TOP 100 Annual Reports Worldwide (#50)
• LACP MOST CREATIVE – Bronze – Europe/Middle East/Africa Region
• LACP TOP 50 Annual Reports in Europe/Middle East/Africa Region (#27)
• LACP TOP 50 German Annual Reports of 2010 (#27)

Environmental Metrics

ESG Focus Areas

• Economy
• Environment
• Social

Environmental Achievements

• Reduced building energy intensity to 205 kWh/sqm/year (2010: 143 kWh/sqm/year)
• Reduced greenhouse gas intensity from building energy to 0.07 tCO2e/sqm/year (2010: 0.06 tCO2e/sqm/year)
• Reduced building water intensity to 0.30 m³/sqm/year (2010: 0.19 m³/sqm/year)
• Refurbishment of Bartholomayhaus including rainwater tank, natural ventilation, and green roof

Social Achievements

• Relocation of Ohnsorg-Theater to Bieberhaus
• 50% of management positions filled by women
• Average 25 hours of training per employee (2010: 29 hours)
• Supported Viva con Agua and employee donation for hunger relief in Africa

Governance Achievements

• Compliance with the German Corporate Governance Code
• Updated Code of Conduct and compliance training for all employees
• No compliance incidents reported

Climate Goals & Targets

Environmental Challenges

• Data gathering on energy consumption and CO2 emissions from tenants
• Incomplete data coverage on tenants' consumption

Mitigation Strategies

• Expanding the scope of reporting to cover 100% of assets by 2015
• Close collaboration with tenants to increase data coverage
• Improved internal reporting process

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Favoring local SMEs
• Green list of approved suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Changes in temperature extremes
• High significant precipitation
• Heavy wind speeds
• Sea level rise
• More extreme events

Transition Risks

• Strict legislation amendments (EnEV)
• Energy transition in Germany

Opportunities

• Increasing attractiveness of assets in leasing markets
• Better control on obsolescence of assets
• Safeguarding historical assets

Reporting Standards

Frameworks Used: GRI 3.1, EPRA Best Practices Recommendations, CRESS

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• oekom 'prime' rating
• IR Magazine Europe Awards
• Bird (Best Investor Relations Deutschland)
• Institutional Investor Award
• Thomson Reuters Extel
• EPRA Gold Award
• LACP Annual Report Awards

Environmental Metrics

ESG Focus Areas

• Economy
• Environment
• Social

Environmental Achievements

• Switched 21% of portfolio to 100% renewable energy electricity.
• Reduced Scope 1 and 2 emissions dramatically (resulting in CDP Climate Action Award).
• Mundsburg Office Tower redevelopment resulted in 80% heating energy savings and 59% electricity consumption reduction in common areas.

Social Achievements

• Launched a trainee program.
• Implemented a family advice service.
• Employee turnover rate of 5.8%.

Governance Achievements

• Updated Code of Conduct in 2012 and provided compliance training.
• Established a compliance organization with a Compliance Officer reporting directly to the Chairman of the Management Board.
• Implemented a whistle-blower hotline (no incidents reported in 2013).

Climate Goals & Targets

Environmental Challenges

• Data gathering, particularly tenant consumption data for energy and GHG emissions.
• Climate change impacts (extreme weather, energy costs, changing tenant behavior).

Mitigation Strategies

• Investing in monitoring systems to improve data gathering.
• Engaging in regulatory and economic lobby groups.
• Investing in assets to maintain contemporary standards and improve sustainability.
• Considering assets' location and public transport access during acquisitions.
• Encouraging tenants to adopt sustainable behavior.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• 'Green list' of approved suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, sea level rise

Transition Risks

• Stricter legislation, energy efficiency requirements, changing tenant behavior

Opportunities

• Increased asset attractiveness, better control of asset obsolescence, safeguarding historical assets.

Reporting Standards

Frameworks Used: GRI 3.1, EPRA Best Practices Recommendations on Sustainability Reporting, CRESS

Certifications: DGNB Silver (Mundsburg Office Tower)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• CDP Climate Action Award
• Immobilienmanager Sustainability Award (Green Lease project group)
• Dr. ZitelmannPB Social Media Award
• EPRA Gold Award (annual report)
• EPRA Bronze Award (sustainability report)
• Specialist Property Investment Award 2013 (Germany)

Environmental Metrics

ESG Focus Areas

• Energy efficiency
• Waste management
• Water management
• Contribution to communities
• Ethics & integrity
• Fair company
• Financial performance
• Employee policy

Environmental Achievements

• 87% of electricity consumption in common areas sourced from renewable energy (+64 percentage points)
• Reduced carbon footprint by 73% in Alstria Village
• Received CDP Climate Action Award 2014

Social Achievements

• Offered beneficial rental agreements to UNICEF in Hamburg
• Sponsored Hamburg Towers basketball team
• Funded real estate studies at EBS University

Governance Achievements

• Created a new department of Sustainability and Quality Management
• Implemented ISO 50001 energy management system (in progress)

Climate Goals & Targets

Environmental Challenges

• Data gathering, particularly tenant energy consumption
• Climate change impacts (extreme weather, sea level rise)
• Changes in tenant behavior requiring green rental space
• Regulatory changes regarding energy efficiency and emissions

Mitigation Strategies

• Improved data collection and monitoring systems
• Upgrading existing buildings, avoiding greenfield projects
• Considering assets' location and public transport access
• Monitoring legislative changes, investing in monitoring systems
• Engaging in regulatory and economic lobby groups

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference for local SMEs
• Inclusion of sustainability criteria in contracts

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events causing structural damage
• Sea level rise affecting coastal assets

Transition Risks

• Stricter legislation on energy efficiency and emissions
• Changes in tenant behavior
• Failure to meet investor expectations

Opportunities

• Upgrading buildings to improve energy efficiency
• Early investment in areas with strong sustainability trends

Reporting Standards

Frameworks Used: GRI G4 (Core option), EPRA Best Practices Recommendations on Sustainability Reporting, CRESS (Construction and Real Estate Sector Supplement)

Certifications: BREEAM (Good) for Holstenhof refurbishment, ISO 50001 (in progress)

Third-party Assurance: Colliers International UK LLP (for valuation report)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• CDP Climate Action Award 2014
• BREEAM (Good) for Holstenhof refurbishment
• EPRA Gold Award for annual report 2014
• EPRA Bronze Award for sustainability report 2014
• IPD Specialist Property Investment Award 2014
• GRESB Green Star 2015

Environmental Metrics

ESG Focus Areas

• Climate change
• Energy efficiency
• Water management
• Waste management
• Contribution to communities
• Ethics and integrity
• Employee development
• Diversity & equal treatment

Environmental Achievements

• Reduced carbon footprint through renewable energy procurement (100% renewable electricity)
• Achieved ISO 50001 certification for energy management systems
• 40% water saved through rainwater reuse in Hamburg offices
• GHG reduced through renewable energies (3,790 tCO2e)

Social Achievements

• Launched Beehive, the first co-working space by a German real estate company
• 14% increase in employees
• 33% female senior managers
• 64% of employees commute by bicycle or public transport

Governance Achievements

• Third-party assurance obtained for non-financial data
• Implemented a new code of conduct for employees and business partners
• Established a compliance organization

Climate Goals & Targets

Environmental Challenges

• Data gathering challenges due to tenant energy consumption
• Regulatory risks related to environmental and energy efficiency
• Physical risks from extreme weather events
• Reputational risk from failing to adapt to growing environmental awareness

Mitigation Strategies

• Developed alternative sourcing strategies for energy
• Implemented a Group-wide risk management and early warning system
• Obtained insurance covering buildings from damage
• Considered access to public transportation and integration within a vivid environment as acquisition criteria
• Encouraged and educated tenants to adopt sustainable behavior
• Provided annual disclosure on environmental performance

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Established a ‘green list’ of vetted providers
• Included energy efficiency, waste recycling, and eco-friendly materials in contracts
• Created a code of conduct for service providers and suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Structural damages from extreme weather events

Transition Risks

• Increasingly numerous and constantly changing regulations

Opportunities

• Better control of asset deterioration
• Extended use of renewable energy sources
• Competitive advantage through high-performing buildings and transparent reporting

Reporting Standards

Frameworks Used: GRI G4 (Core option), Construction and Real Estate Sector Supplement (CRESS), EPRA Best Practices Recommendations on Sustainability Reporting

Certifications: ISO 50001

Third-party Assurance: Deloitte GmbH

Sustainable Products & Innovation

• Beehive co-working space

Awards & Recognition

• CDP Climate Action Award (2015)
• EPRA Bronze Award
• GRESB Green Star
• OEKOM Research AG Corporate Responsibility Prime

Environmental Metrics

ESG Focus Areas

• Carbon Emissions
• Consumption of Resources
• Workspace Experience
• Employee Development
• Equal Treatment
• Working Conditions
• Ethical Conduct
• Financial Performance
• Contribution to Communities
• Supplier Management

Environmental Achievements

• Reduced absolute GHG emissions by 31% (2016 vs. 2013)
• Reduced total carbon footprint by 31% in 2016 compared with the baseline year of 2013.
• 79% of energy used in common areas was from renewable energy in 2016.
• Reduced utility costs by 30% due to renewable energy framework agreement.

Social Achievements

• Increased number of active employees by 50% (2016 vs. 2015)
• Increased female representation in senior management positions to 42% in 2016.
• Implemented a Health, Safety and Environmental policy (HSE) across the organization.
• No fatal accidents at offices or construction sites since 2006.

Governance Achievements

• Established a CSR Committee at the Supervisory Board level.
• Complies with most recommendations of the German Corporate Governance Code.
• Implemented a compliance organization to strengthen ethical standards.

Climate Goals & Targets

Environmental Challenges

• Limited control over energy use in tenant areas.
• Increasingly numerous and constantly changing regulations regarding environmental or energy efficiency.
• Extreme weather events due to climate change.
• Growing demand for sustainability services.

Mitigation Strategies

• Promoting collaboration with tenants to reduce consumption.
• Implementing smart metering systems.
• Legal team ensuring compliance with regulations.
• Monitoring legislative changes during acquisition, refurbishment, and management.
• Engaging in regulatory and economic lobby groups.
• Advanced monitoring of associated risks.
• Insurances covering buildings from loss of rent.
• Designing smart offices.
• Offering sustainability services to tenants.
• Transparent communication on sustainability performance.

Supply Chain Management

Responsible Procurement

• Code of conduct for service providers and suppliers
• Green list of approved providers
• Lease contracts including energy efficiency, waste recycling, and eco-friendly materials
• Building contracts covering minimum wages

Climate-Related Risks & Opportunities

Physical Risks

• Structural damages from extreme weather events

Transition Risks

• New environmental regulations
• Carbon taxation

Opportunities

• Increased demand for green rental space
• Opportunities to improve energy efficiency and reduce carbon footprint

Reporting Standards

Frameworks Used: GRI Standards: Core option, EPRA Sustainability Best Practices Recommendations Guidelines

Certifications: ISO 50001

Third-party Assurance: Deloitte GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• SDG 7
• SDG 11
• SDG 13

Renewable energy, affordable office space, GHG emission reduction

Sustainable Products & Innovation

• Smart building technologies
• Co-working spaces

Awards & Recognition

• Immobilienmanager Award 2017
• CDP Climate Action Award (2014, 2015)
• Unesco World Heritage Award for Kontorhaus District

Environmental Metrics

ESG Focus Areas

• Carbon Emissions
• Consumption of Resources
• Workplace Experience
• Employee Growth & Development
• Diversity & Equal Treatment
• Good Working Conditions
• Ethical Conduct
• Financial Performance
• Contribution to Communities
• Supplier Management
• Effective Governance

Environmental Achievements

• Reduced total carbon footprint by 13% (2017 vs. 2016)
• Avoided carbon emissions equivalent to 791 typical German households
• Procured nearly 98% renewable energy for common areas and offices in 2017
• Reduced energy intensity by 41% (2017 vs. 2013)
• Reduced GHG emissions by 14,385 tonnes of CO2e (2017 vs. 2016)

Social Achievements

• Increased employee count by 12% (2017 vs. 2016)
• Increased average training hours per employee to 47 hours (2017 vs. 28 hours in 2016)
• 42% women in leadership positions
• Only 4% of employees on fixed-term contracts
• Eight employees internally promoted in 2017

Governance Achievements

• Compliance with most recommendations of the German Corporate Governance Code
• Established a CSR committee at the Supervisory Board level
• Implemented a new remuneration system effective January 1, 2018, including share ownership guidelines for Management Board members

Climate Goals & Targets

Environmental Challenges

• Reducing GHG emissions across the entire value chain (including tenant activities)
• Meeting new environmental regulations (e.g., GEG law)
• Adapting to changing tenant demands for green and flexible office space
• Extreme weather events impacting buildings and operations

Mitigation Strategies

• Implemented a framework contract for 100% renewable energy procurement (covering landlord-shared services and own offices)
• Installed smart meters to monitor energy consumption and identify inefficiencies
• Investing in R&D to identify and implement energy-efficient technologies
• Implementing advanced risk monitoring and insurance coverage for extreme weather events
• Engaging in regulatory and economic lobby groups to monitor legislative changes
• Offering tenants additional services to improve office efficiency
• Designing smart offices with flexible layouts

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green list of approved suppliers
• Inclusion of sustainability issues in lease and building contracts
• Code of conduct for service providers and suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Storms
• Hail

Transition Risks

• New energy efficiency regulations
• Changing tenant demands

Opportunities

• Increased demand for green rental space
• Opportunities to improve energy efficiency and reduce costs

Reporting Standards

Frameworks Used: GRI Standards: Core option, EPRA Sustainability Best Practices Recommendations Guidelines – third version

Certifications: ISO 50001

Third-party Assurance: Deloitte GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• SDG 7
• SDG 11
• SDG 13

By powering all of the common areas of our buildings and our own offices with renewable energy by 2020, we increase demand for clean energy and incentivize investment in that field. Furthermore, by offering our employees and tenants the chance to source affordable renewable energy, we improve the overall environment. With our co-working spaces in major cities in Germany, we offer affordable and efficient office space to everyone who wants to benefit from short leases and flexibility. This way, we contribute to the productivity of the cities and enable start-ups and small businesses to thrive. We work continuously to reduce the energy consumption of our buildings and the carbon emissions associated with such consumption. We started providing our tenants services, such as ‘Mieterstrompool,’ which enables them to source renewable energy for their own areas at a fair price and to contribute to the reduction of greenhouse gas emissions and the distribution of clean air in urban areas.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• immobilien manager Award (2017)
• ZIA award for carbon-neutral concept
• CDP Leadership A rating (2017)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Carbon Footprint Reduction
• Community Investment
• Biodiversity

Environmental Achievements

• 17.3% reduction in tenant emissions in 2017 through Mieterstrompool
• 98% of energy procured for common areas and offices is renewable
• Launched pilot projects for installing EV charging stations in three buildings

Social Achievements

• Continued support of UNICEF's humanitarian work with preferential lease conditions
• Donated EUR 30,000 to support Straßenkinderprojekt KIDS
• Leased 3,552 m² to various cultural institutions

Governance Achievements

• EPRA Gold Award for highest reporting standards and financial communication
• ISS-oekom CSR Rating – PRIME for achieving best ESG scores among sector peers
• ZIA Award for CO2 concept

Climate Goals & Targets

Environmental Challenges

• Maintaining profitability in a rising real estate market
• Balancing acquisition and disposal strategies
• Addressing uncertainties in the economic cycle

Mitigation Strategies

• Cautious and selective acquisition policy
• Divesting weaker assets
• Investing in existing assets and core markets
• Active liability management

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Energy efficiency improvements

Reporting Standards

Frameworks Used: EPRA

Awards & Recognition

• EPRA Gold Award
• ISS-oekom CSR Rating – PRIME
• ZIA Award