Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Supply of office spaces with green electricity
• Acquisition of new company vehicles exclusively with electric drive (73% electric vehicles in the fleet by Q4/22)
• Preference for train travel for business trips
• CO2 emissions in general business operations recorded in 2022
• Implementation of ESG software in 2023 in collaboration with architects, specialist planners, and other companies involved in the construction process

Social Achievements

• 69% of SEMODU's workforce are women, with 43% in leadership positions (October 2022)
• Implementation of flexible working arrangements, including part-time models and home office options
• Focus on employee development through various training programs and financial support for further education
• Company pension plan with employee-determined investment strategy and 20% employer contribution to salary conversion

Governance Achievements

• Establishment of a holistic ESG risk management process in 2022
• Regular risk reporting to the management board
• Creation of an ESG unit reporting directly to the management board
• Development of a Code of Conduct to promote responsible behavior and compliance

Climate Goals & Targets

Environmental Challenges

• Complex project implementation
• Uncertainty in development costs
• Investment risks
• Construction delays and cost overruns
• Objections from third parties
• Unpredictable market demand
• Liquidity management
• Availability of suitable properties
• Technical risks
• Potential misconduct by third parties
• Poor performance by contractors
• Obtaining public-law permits
• Regulatory changes
• Non-compliance with legal regulations
• Warranty claims
• Insufficient insurance coverage
• Environmental risks and contaminated sites
• Dependence on qualified personnel
• Interest rate and financing risks
• Pandemic risks

Mitigation Strategies

• Cooperation with renowned architectural firms
• Focus on projects with high development and margin potential
• Thorough technical, legal, and economic due diligence
• Safety reserves and contractual deadlines
• Legal opinions and contingency planning
• Brand positioning and focus on metropolitan areas
• Detailed liquidity planning and reserves
• Specialization in complex, undervalued projects
• External contracting of technical services with insurance coverage
• Extensive network of experienced service providers
• Performance and payment controlling
• Support from specialized legal firms and architects
• Early involvement of legal firms and planners
• Code of Conduct and compliance measures
• Sufficient reserves in project calculations
• Collaboration with specialized insurance companies and lawyers
• Due diligence and contingency plans
• Internal substitution plans and multiple external consultants
• Monitoring and hedging strategies
• Contingency planning

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Selection of building materials based on their CO2 footprint and recyclability

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Modular building systems
• Digital building technologies
• Sustainable energy concepts

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Building Practices
• Social Responsibility
• Governance

Environmental Achievements

• Development of an ESG matrix to promote CO2-neutral energy concepts and other sustainability criteria in projects.
• Establishment of a joint venture (CERO2) with GETEC Group to facilitate climate neutrality in the real estate sector.

Social Achievements

• Not disclosed

Governance Achievements

• Establishment of an internal ESG unit to oversee sustainability across all business activities.
• Planning for a comprehensive SEMODU sustainability report within the 2022 annual report.

Climate Goals & Targets

Environmental Challenges

• Rising financing costs due to higher base interest rates and risk premiums.
• Increased prices in the construction industry.
• Potential impact of economic conditions and recession fears on real estate valuations and transaction markets.
• Supply chain disruptions (implied).

Mitigation Strategies

• Utilizing KFW loan with favorable conditions to support growth.
• Focusing on modular building to reduce resource and labor costs.
• Strategic project phasing to allow for responsive adaptation to market developments.
• Energy-efficient building concepts to enhance competitiveness.

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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Modular, serial, and ecological building methods, CO2-neutral energy concepts

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Efficiency
• Sustainable Building Practices
• Affordable Housing
• Social Equity
• Circular Economy
• Governance

Environmental Achievements

• 10% of emissions offset using CO2 certificates from Treemer

Social Achievements

• Intensive promotion of training and careers for young women, including those from outside Europe

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Lack of binding agreements regarding sustainability with minority holdings (e.g., Wandwall plc)
• Potential rebound effects from Wandwall's digital offerings if resource and energy consumption increases more than space consumption decreases
• Need to develop principles and minimum criteria for sustainability goals
• Need for more comprehensive data collection on energy consumption and emissions (Scope 1, 2, and 3)

Mitigation Strategies

• Developing modular construction methods with integrated sustainability aspects and process management
• Applying sustainable specifications and requirements through targeted DGNB certifications
• Integrating partners and suppliers into innovation processes along the value chain
• Planning for transparency of sustainability aspects in construction
• Developing management strategies for ESG risks

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Stricter regulation of the real estate and energy sectors

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7
• SDG 9
• SDG 11
• SDG 12

The company contributes to these SDGs through energy technologies, infrastructure modernization, reduction of resource and land consumption, and circular economy strategies.

Sustainable Products & Innovation

• Modular building methods for socio-ecological living and working

Awards & Recognition

• Not disclosed