Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Circular economy
• Tenant satisfaction
• Employee satisfaction
• Corporate governance
• Community involvement

Environmental Achievements

• Switched entire electricity supply to green electricity for both rental portfolio and company operations.
• Replaced 33 heating systems in 2021 as part of a Renewable Energy Programme.
• Reduced greenhouse gas emissions caused by company's own energy consumption by approximately one percent.

Social Achievements

• Launched a tenant survey with over 1200 participants to improve services and living environment.
• Implemented a diversity program, including signing the 'Charta der Vielfalt'.
• Established a Group-wide learning management system for employee training, with 1388 employees participating in 40 training sessions.
• Guaranteed job security for 420 employees during portfolio disposals.

Governance Achievements

• Established a Sustainability Board to guide sustainability initiatives and define indicators.
• Created a Staff Unit Sustainability to coordinate sustainability activities and reporting.
• Developed and adopted various policies, including a Human Rights Policy, and provided corresponding employee training.

Climate Goals & Targets

Environmental Challenges

• High energy consumption in older buildings of the rental portfolio.
• Limited influence on tenant behavior regarding energy and water consumption.
• COVID-19 pandemic impacting service availability and personal contact with tenants.
• Integration of three companies with different cultures and remuneration systems.

Mitigation Strategies

• Developed a carbon roadmap to halve portfolio's greenhouse gas emissions by 2030, investing €275 million in energy efficiency improvements and renewable energy.
• Implemented energetic refurbishments, including insulation and heating system upgrades.
• Implemented digital transformation to improve efficiency and data analysis.
• Provided remote work options and personal protective equipment during the pandemic.
• Analyzed salaries and implemented measures to achieve equal pay for equal work.

Supply Chain Management

Responsible Procurement

• Development of a sustainability catalogue for procurement operations.
• Planned Code of Conduct for business partners (2022).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes related to climate protection and environmental protection.

Opportunities

• Increased demand for energy-efficient building solutions.
• Improved competitive position on rental markets due to energy efficiency improvements.

Reporting Standards

Frameworks Used: GRI, EPRA

Certifications: ISO 50001 (energy management)

Third-party Assurance: KPMG Luxembourg Société Cooperative (limited assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)

Initiatives contribute to these goals through energy efficiency improvements, sustainable construction, community engagement, and climate action.

Sustainable Products & Innovation

• Energy-efficient building solutions

Environmental Metrics

ESG Focus Areas

• Environmental

Climate Goals & Targets

Environmental Challenges

• Significant decrease in the number of existing properties in the portfolio leading to considerable deviations from the previous year's figures.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, EPRA

Environmental Metrics

ESG Focus Areas

• Climate neutrality
• Employee satisfaction
• Tenant satisfaction
• Community involvement
• Corporate Governance/Compliance

Environmental Achievements

• Improved energy efficiency, leading to a corresponding decline in specific GHG emissions.
• Successfully completed several projects in 2023 (though built for third parties, they largely met Adler Group's sustainability requirements).

Social Achievements

• Increased employee satisfaction.
• Decreased employee turnover rate (7.1% in 2023 vs 7.9% in 2022).
• Continued providing housing for Ukrainian refugees.
• Increased average training hours per full-time employee (23 hours in 2023 vs. approximately 4 times less in 2022).

Governance Achievements

• Improved corporate governance.
• Enlarged the Board of Directors with the addition of two independent Board members and one non-independent Board member.
• Successfully completed the search for an auditor for the financial years 2022 and 2023.

Climate Goals & Targets

Environmental Challenges

• High interest rates, escalating construction costs, and increased cost of capital.
• Financial challenges impacting investment in energy efficiency measures.
• Portfolio adjustments and uncertainty about long-term portfolio composition.
• Investigations by the Frankfurt Public Prosecutor’s Office and the Federal Criminal Police Office.
• Strained ability to dispose of assets at favorable prices under challenging market conditions.

Mitigation Strategies

• Restructuring process, including asset sales and debt repayment.
• Revised business plan to restructure difficult assets and participate in market recovery.
• Financial restructuring to improve cash position, stabilize debt structure, and provide sufficient equity.
• Cooperation with authorities and efforts to clarify facts.
• Comprehensive recapitalisation completed in September 2024.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Minimum requirements for sustainability characteristics of purchased products and materials.

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather incidents

Transition Risks

• Regulatory changes (e.g., Heizungsgesetz)
• Market shifts

Opportunities

• Energy-efficient refurbishment of properties

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 50001

Third-party Assurance: AVEGA Revision S.à r.l.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Excellent Training Quality award from Berlin Chamber of Industry and Commerce