Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Tenant Satisfaction
• Financial Performance
• Governance

Environmental Achievements

• Achieved a GRESB 5-star rating (highest) and ranked third in a peer group of 16.
• Received the WELL Building Standard certificate for the 'Aan de Rijn' apartment complex in Arnhem (first existing residential complex in the world to receive this certificate).
• Increased the percentage of homes with a green energy label (A, B, or C) to 87.8% from 84.3% in the prior year.
• Invested €9.2 million to improve the energy performance of 2,740 residential units.

Social Achievements

• Voluntarily capped rent increases for free market rental contracts for two years.
• Launched a campaign providing tenants with six free LED lamps.
• Offered an app providing tenants with insight into their energy consumption.
• Improved tenant satisfaction score to 6.9 from 6.8 in 2018.

Governance Achievements

• Successfully issued a green Eurobond (€500 million) in May, becoming the first residential investor to do so.
• Improved the diversity of the Supervisory Committee to 40% female.

Climate Goals & Targets

Environmental Challenges

• Lack of good quality housing supply.
• High demand and rising house prices.
• Lagging new-build production due to rising construction costs, sustainability requirements, high land prices, and the nitrogen crisis.
• Uncertainty about potential market regulation.
• Limited availability of affordable housing and rent increases exceeding inflation.
• Affordability issues for pensioners and key workers.
• The nitrogen crisis, impacting building permits.

Mitigation Strategies

• Focus on improving the quality and sustainability of the portfolio.
• Selective acquisitions prioritizing quality over volume.
• Voluntarily capped rent increases.
• Allocating part of available housing to key workers.
• Investing in sustainable projects.
• Actively participating in discussions with stakeholders on effective regulations.
• Conditionally adopting regulated mid-market segment as a new investment category.

Supply Chain Management

Supplier Audits: 212 suppliers signed the IVBN sustainability declaration (94.7% of outsourced activities).

Responsible Procurement

• IVBN sustainability declaration for suppliers, integrated into the tender process for new service agreements.

Climate-Related Risks & Opportunities

Physical Risks

• Frequent droughts, extreme rainfall, rising water levels

Transition Risks

• Governmental regulations on rent increases, energy transition from natural gas

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core Option, INREV Guidelines

Certifications: GRESB 5-star rating, WELL Building Standard

Third-party Assurance: Deloitte Accountants B.V.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• GRESB 5-star rating
• WELL Building Standard certificate

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Green Buildings
• Sustainable Development Goals

Environmental Achievements

• Energy reduction target of 55% by 2030 (compared to 1990)
• Target to have mitigated and/or planned actions for assets with elevated climate risk by 2025
• Aim to build circular buildings, using recycled and reused materials

Social Achievements

• Provides psychological support to employees
• Adheres to national and international legislation, including the EU Sustainable Finance Disclosure Regulation (SFDR)

Governance Achievements

• Vesteda’s Supervisory Committee oversees ESG topics
• Uses Technical Standards and the ESG risk framework to assess the ESG performance of the project

Climate Goals & Targets

Environmental Challenges

• High energy consuming buildings
• Climate risks (flooding, wildfire, groundwater issues, heat stress)
• Reducing waste flows and raw material use

Mitigation Strategies

• Improving energy labels
• Installing (hybrid) heat pumps
• Installing solar panels
• Improving high energy consuming buildings
• Social interventions with tenants to reduce consumption
• €200 million in sustainability investments by 2030
• In-house climate risk tool to identify and mitigate risks
• Action plans to reduce high risks within two years and develop an action plan by 2025
• Investigating risks with stakeholders like local councils
• Action plans for situations where high risks occur to ensure tenant safety

Supply Chain Management

Responsible Procurement

• Green procurement of building materials

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Wildfire
• Groundwater depletion
• Groundwater flooding
• Heat stress

Reporting Standards

Frameworks Used: GRI, TCFD

Sustainable Products & Innovation

• Green Buildings

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Tenant Satisfaction
• Affordability
• Biodiversity
• Circular Economy
• Governance
• Compliance
• Integrity

Environmental Achievements

• 96% of the portfolio has green energy labels (A, B, or C), up from 94% in 2022. A labels increased from 40% to 50%.
• Installed 11,247 solar panels in 2023, bringing the total to 35,953, generating approximately 8.9 million kWh annually.
• Reduced energy consumption by 11.3% (kWh).
• Achieved the global number one position in the 2023 Global Real Estate Sustainability Benchmark (GRESB).

Social Achievements

• Tenant satisfaction score of 7.2 (out of 10), exceeding the benchmark of 6.7.
• Employee Net Promoter Score was exceptionally high.
• Employee turnover rate decreased to 10% (2022: 14%).
• Supported various initiatives such as JINC, BeterBuren, and Nationaal Comité 4 en 5 mei.

Governance Achievements

• Maintained an A- rating from S&P.
• Implemented a new job evaluation system and abolished the bonus scheme for all staff members except the Management Team.
• Updated its Green Finance Framework, fully aligned with EU Taxonomy regulation.

Climate Goals & Targets

Environmental Challenges

• Higher interest costs and negative revaluations due to volatile inflation and high interest rates.
• Uncertainty regarding the regulation of the Dutch housing market, including the Affordable Rent Act and court rulings on rent increase clauses.
• Redemption requests from participants.
• Fire in De Enter apartment complex in Amsterdam.

Mitigation Strategies

• Conservative debt financing strategy.
• Selling assets to stay within conservative debt ratios and being cost conscious.
• Actively seeking new investors to service redemption requests.
• Finding alternative accommodation for tenants affected by the fire and rebuilding the complex.
• Investing in the quality and sustainability of homes to mitigate the impact of potential new regulations.

Supply Chain Management

Supplier Audits: 90% of respondents signed the sustainability declaration.

Responsible Procurement

• IVBN sustainability declaration
• Sustainability scan with questions on policies, targets, and results
• Sustainable purchasing policy

Climate-Related Risks & Opportunities

Physical Risks

• Heat stress
• Flooding due to extreme rainfall

Transition Risks

• Changes in (rental) laws and regulatory requirements
• Homes not compliant with legislation

Opportunities

Not disclosed

Reporting Standards

Frameworks Used: GRI Universal Standards, GRESB, INREV, TCFD, UN PRI

Certifications: BREEAM

Third-party Assurance: Deloitte Accountants B.V.

UN Sustainable Development Goals

• Goal 7: Affordable and clean energy
• Goal 11: Sustainable cities and communities
• Goal 12: Responsible consumption and production
• Goal 13: Climate action

Vesteda's initiatives contribute to these goals through investments in sustainable housing, energy efficiency, and climate adaptation.

Sustainable Products & Innovation

• New-build projects in the mid-rental segment

Awards & Recognition

• GRESB Global Sector Leader Residential

Environmental Metrics

ESG Focus Areas

• Sustainability
• Green energy labels

Environmental Achievements

• Increased the share of green energy labels to 97%

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Affordability is still under pressure due to increasing demand on the housing market and low supply, resulting in increased prices of owner-occupied homes and higher market rents.
• Higher property operating expenses and higher interest expenses.

Mitigation Strategies

• Remain highly selective with acquisitions, continue to sell non-strategic assets and continue our sustainability investments to outperform Paris Proof by 2050 or earlier.
• Continue our search for new investors to provide liquidity for redeeming participants.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRESB

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed