Climate Change Data

Environmental Metrics

ESG Focus Areas

• Long-term economic stability
• Provision of professional training and continuing education
• Regular maintenance and modernisation
• Responsible corporate management
• Responsibility towards holdings and sustainable new building
• Responsibility towards employees
• Environmental and climate protection
• Responsibility towards society

Environmental Achievements

• Modernisation of properties with a view to energy conservation
• Implemented 34 major refurbishment and modernisation projects involving approximately EUR 54 million, affecting approximately 3,500 residential units
• Received the “Deutscher Bauherrenpreis Modernisierung 2015” award for refurbishment of a historic railway workers’ estate
• Reduced primary energy requirements and emissions of the historic railway workers’ estate in Elstal, Brandenburg, by more than 60%
• Realized savings of approximately 32.4 MWh p.a. at three administrative locations through energy efficiency measures
• Improved heat insulation (energy savings of up to 70%) in 2,240 residential units
• Renewal of heat generation facilities at 19 plants (12,500 kW) for 2,600 residential units
• Production of approximately 1,075 MWh of electrical energy per year from 79 photovoltaic systems

Social Achievements

• Implemented a performance-based and market-aligned system of remuneration
• Conducted structured appraisal interviews with employees
• Expanded occupational health management programme
• Invested EUR 150,000 in district development projects
• Continued support for various social organizations, including Hestia e.V. and Caritas
• Provided housing for young refugees
• Introduced a security and concierge concept for approximately 29,000 units

Governance Achievements

• Published first Declaration of Conformity with German Sustainability Code (DNK)
• Improved credit rating from both Standard & Poor’s and Moody’s
• Issued first corporate bond in the amount of EUR 500 million

Climate Goals & Targets

Environmental Challenges

• Long-term economic stability in a changing market
• Growing need for housing in conurbations
• Rising construction costs
• German Act on the Moderation of Rent Increases
• Potential risks related to climate change (indirectly)
• Integration of GSW data

Mitigation Strategies

• Strategic cooperations
• Extensive refurbishment measures
• Sustainable new construction concepts
• EUR 400 million modernisation programme
• New construction projects (e.g., Potsdam)
• Dialogue with stakeholders
• Risk management system
• Investment in G+D Gesellschaft für Energiemanagement mbH

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Selection of suppliers based on contractual compliance, adherence to deadlines, quality, and legal and social standards
• Use of DGNB standards for new building projects

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions (indirectly)

Transition Risks

• Changes in legislation (energy saving ordinances, building regulations, environmental legislation)

Opportunities

• Improved energy efficiency
• Use of renewable energy sources

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines, EPRA Best Practice Recommendations on Sustainability Reporting

Certifications: DGNB (German Sustainable Building Council)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• New construction projects designed with sustainability criteria (DGNB, Cradle to Cradle®)

Awards & Recognition

• Deutscher Bauherrenpreis Modernisierung 2015
• DGNB Platinum pre-certification for Westend District project

Environmental Metrics

ESG Focus Areas

• Climate change
• Energy efficiency
• Sustainable building
• Neighborhood development
• Employee development
• Senior-friendly housing
• Social responsibility

Environmental Achievements

• Energy-efficient refurbishment of approximately 3,500 residential units in 2016
• Approximately 1,000 tons CO2 reduction through energy-efficient improvements
• Increased own production of environmentally friendly electricity from 9 GWh to 12 GWh per year
• New-build project in Potsdam-Babelsberg meeting KfW 70 energy standard and awarded gold by DGNB

Social Achievements

• Personal visits to approximately 520 tenants in 2016 to inform about building works
• Provided housing to approximately 900 people in difficult social circumstances
• Approximately 14,000 hours of employee training completed in 2016
• Increased holdings to 6,700 beds in nursing and assisted living

Governance Achievements

• Improved transparency and comparability of sustainability performance
• Observed statutory provisions and standards of the German Corporate Governance Code

Climate Goals & Targets

Environmental Challenges

• Climate change
• Urbanization
• Demographic change
• Rising demand for housing in conurbations
• Rising rents in Berlin

Mitigation Strategies

• EUR 1 billion investment in energy-efficient modernization of 30,000 residential units by 2021
• Just under EUR 500 million investment in new building and conversions by 2020
• Targeted dialogue with tenants and other stakeholders
• Cooperation with social facilities to provide housing to disadvantaged persons
• Targeted acquisitions and new building in the area of Nursing and Assisted Living

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Collaboration with established network of suppliers on a basis of trust and partnership
• Importance attached to local firms

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• New-build project in Potsdam-Babelsberg

Awards & Recognition

• Gold award from the German Sustainable Building Council (DGNB)

Environmental Metrics

ESG Focus Areas

• Green Buildings
• Renewable Energy
• Clean Transportation

Environmental Achievements

• Reduction of Deutsche Wohnen’s carbon emissions by over 25,000 tonnes in 2019
• 62% of the Company’s building stock performed above the average energy efficiency of a German residential building at the end of 2020

Social Achievements

• 343 cases where Deutsche Wohnen partially or fully waived the right to increase rents arising from modernization under section 558 of the German Civil Code

Governance Achievements

• Establishment of a dedicated Green Finance Committee to oversee project evaluation and selection

Climate Goals & Targets

Environmental Challenges

• Effluents and waste generated in construction
• Occupational health and safety
• Tenant protections

Mitigation Strategies

• Adherence to requirements of recognized sustainability certification schemes (NaWoh and DGNB)
• Assessment of materials used by suppliers, ensuring use of non-hazardous and/or sustainable construction materials
• Waste disposal in accordance with the Company’s Code of Conduct for Business Partners
• Contracts developed in alignment with Germany’s Regulations on Contract Awards for Public Works
• Dedicated health and safety plan for large-scale construction projects
• Tenant protection promises to limit negative social impacts of building activities

Supply Chain Management

Responsible Procurement

• Assessment of materials used by suppliers, ensuring use of non-hazardous and/or sustainable construction materials
• Company’s Code of Conduct for Business Partners

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Green Bond Principles 2018, Green Loan Principles 2020

Certifications: DGNB, NaWoh, KfW 55

Third-party Assurance: Sustainalytics

UN Sustainable Development Goals

• SDG 7
• SDG 9
• SDG 11

Investments in green buildings, renewable energy, and clean transportation are expected to reduce the carbon footprint of Deutsche Wohnen’s building stock and advance the UN Sustainable Development Goals, specifically SDG 7, 9 and 11.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Aims to conduct energy-efficient refurbishments of around 3% of the building stock per year (compared to a refurbishment rate of 1% in Germany).
• Promoting the expansion of renewable energies like photovoltaics and the implementation of climate-friendly mobility concepts.

Social Achievements

• Refresh public areas with new playgrounds and green outdoor environments.
• Establish collaborations with authorities, municipalities and NGOs to support local development.
• Increase employment by offering work opportunities to residents.

Governance Achievements

• Established a Sustainability/Strategy department reporting directly to the CEO.
• Established a Sustainability Committee with representation from the Management Board and other relevant decision-makers.
• Sustainability Report externally certified with a limited assurance engagement.

Climate Goals & Targets

Environmental Challenges

• The Swedish rental market is highly regulated, resulting in rents well below a theoretical market rent, and because our portfolio in Sweden is mostly located in areas where the unemployment rate is higher and social integration lower than the Swedish average.

Mitigation Strategies

• Committed to social sustainability by refreshing public areas, establishing collaborations, and increasing employment opportunities for residents.

Supply Chain Management

Responsible Procurement

• Code of Conduct
• Business Partner Code
• Human Rights Policy

Climate-Related Risks & Opportunities

Physical Risks

• water, temperature, wind and earthquake

Reporting Standards

Frameworks Used: ICMA Green Bond Principles (GBP) 2021, ICMA Social Bond Principles (SBP) 2021, ICMA Sustainability Bond Guidelines (SBG) 2021, LMA Green Loan Principles (GLP) 2021, LMA Social Loan Principles (SLP) 2021, EU Taxonomy Regulation

Third-party Assurance: ISS ESG (Second Party Opinion), external auditor (limited assurance report on annual allocation reporting)