Vonovia : EPRA Sustainability BPR Report 2020 (English only)

VONOVIA SE

EPRA sBPR 2020

2020

EPRA Sustainability Best Practice Recommendations

Vonovia SEEPRA sBPR 2020

Content

2020 EPRA Sustainability Best Practice Recommendations

3 Introduction

3 Overarching Recommendations

6 Sustainability Best Practice Performance Measures (EPRA tables)

12 Contact/Imprint

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Vonovia SEEPRA sBPR 2020

2020 EPRA Sustainability Best Practice Recommendations

Introduction

­Vonovia is a leading international residential real estate company with a portfolio of around 355,000 of its own apartments (December 31, 2020) in almost all of Germa- ny's attractive cities and regions, as well as around

22,000 apartments in Austria and approximately 38,000 in Sweden. We employ 10,622 people throughout the Group.

As a residential real estate company, Vonovia­ is an important part of society. After all, a home is a basic human need, and housing is a matter that also involves social factors. We are guided in our actions by the three basic principles of sustainability: We take economic responsibility for our company, make an ecological contribution to climate and environmental protection, and assume social responsibility for our approximately one million tenants, the neighborhoods that they live in, and our employees.

We offer a home for everyone. For us, this means providing needs-based and good living standards, an intact residential environment that protects our climate and biodiversity, and neighborhoods that are functioning and appealing at the same time. We are continuing to develop these neighborhoods in which our apartments are located in a holistic manner and with a view to environmental and climate protection. This also includes the construction of new apartments, both for the company's own portfolio and for sale. Sustainable business practices are an integral part of our business model and are at the very heart of our corporate strategy. This means that we take responsibility for safe, good-quality and affordable housing.

As a member of EPRA (European Public Real Estate Association), we want to contribute to greater transparency in reporting. This is why we make annual publications based on the EPRA Sustainability Best Practice Recommendations. The following report consists of two parts: the Overarching Recommendations and the Sustainability Performance Measures.

For more detailed information on our sustainability approach, please see our Sustainability Report. 

 -  SR 2020, p. 9 et seqq.

Overarching Recommendations

Organizational Boundaries

The key figures published focus on the activities of

­Vonovia SE in Germany, Austria and Sweden using the financial control approach. In contrast to previous years, we have included all acquisitions made in the 2020 fiscal year in this report. This concerned the acquisitions of the project developer Bien-Ries, which was acquired on April 2, 2020, and H&L Immobilien GmbH, which was acquired by Vonovia on December 30, 2020. Deviations from this rule are indicated in the respective text or key figure sections.

Coverage

This EPRA report relates to Vonovia's­ portfolio and business operations.

Portfolio

The sustainability figures presented for 2020 include 422,252 residential and commercial units covering a total area of 27,545,128 m².

Residential and Commercial Units/Area per Region

		Residential and
Region		commercial units	Area in m2
Germany	359,071	22,765,005
Austria	22,761	1,804,164
Sweden	40,420	2,975,959
Total	422,252	27,545,128

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Vonovia SEEPRA sBPR 2020

Business Operations

The objective is to attain as complete a view as possible of the environmental impact of the ­Vonovia Group and its many different locations. These locations include not only the company headquarters in Bochum and the large customer service centers in Duisburg and Dresden, but also regional administration offices, caretakers' offices, and offices and workshops used by the technical service and the residential neighborhood services. Some of these

belong directly to the Vonovia­ portfolio; some relate to rented space. For the latter, ­Vonovia can only improve the environmental performance to a limited extent, or only in agreement with the landlord.

For the relevant reporting periods 2019 and 2020 we projected the figures by square meters rental area on our whole business process areas.

Estimation of Landlord-obtained Utility Consumption

The environmental key figures relating to heat consumption in the portfolio were calculated based on the energy certificate data (demand and consumption certificates) wherever possible. These cover heat consumption in portfolio both residential units and communal areas in the regions Germany, Austria and Sweden. The majority of ­Vonovia energy certificates in the Germany region are demand certificates (approx. 78%), meaning that 22% of the data is based on consumption certificates. There is no energy certificate data available for 9.3% of the portfolio.

The environmental key figures for electricity consumption in the German portfolio's communal areas are based on the quantities accounted for by the ­Vonovia company VESG (Vonovia­ Energie Service GmbH). We have applied actual consumption values for the regions of Austria and Sweden.

The companies portfolio's water consumption is based on meter readings, which are also included in the operating and ancillary costs, and refers to the residential and communal areas.

The German portfolio's waste volumes are calculated on the basis of the costs incurred, which are passed on to tenants via the operating and ancillary costs. For the Austria and Sweden regions, these figures were collected by calculations mainly based on statistical figures and the portfolio structure.

Third-party Assurance

The Sustainability Report - and, as a result, also the key information and key figures set out herein - are audited by the auditor of the annual financial statements, KPMG (-  SR 2020, p. 135 et seqq.). As the key figures in this EPRA Report are taken from the Sustainability Report, they have also been verified by a third party. The like-for-likedata is an exception.

Boundaries - Reporting on Landlord and

Tenant Consumption

We only report on the consumption of heating, water and waste purchased from the landlord and on the electricity that we make available to our tenants for the communal areas. Tenant-related utility services, i.e., from invoices that tenants receive directly, cannot be reported. This primarily includes the electricity that tenants use in their own apartments.

The portfolio data therefore covers the following areas:

• Heating: residential and communal areas
• Electricity: communal areas
• Water: residential and communal areas
• Waste: living areas

The Like-for-like calculations consider only full German portfolio due to the circumstances, that the databasis in not sufficient for Austria and Sweden to calculate exact and reliable Like-for-like figures.

Normalization

We use intensity figures wherever possible. For intensities relating to building floor space, we use the rentable area as the denominator. When it comes to calculating consumption (the numerator), we use the rentable area plus a 20% surcharge for the communal areas. The resulting intensities for energy consumption and greenhouse gas emissions include the consumption of heating and general electricity, but not the electricity used by tenants in their own homes.

The calculations of the key occupational safety and health figures are explained in the corresponding table of key figures.

Segment Analysis

For a segment analysis of our portfolio, please refer to the chapter Portfolio in the Property Management Business in our 2020 Annual Report. -  AR 2020, p. 73 et seqq.

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 SR 2020, p. 14 et seqq.

Vonovia SEEPRA sBPR 2020

In our key reporting figures, we generally make a distinction between our three core markets: Germany, Austria and Sweden.

As residential properties account for 98.4% of our portfo- lio, our reporting focus is on this asset class. A supplementary view on the building age classes can be found in our 2020 Sustainability Report. -  SR 2020, p. 107 et seqq.

We also describe our new construction segment in detail in the annual report chapter Portfolio in the Development Business. -  AR 2020, p. 77 et seqq.

Disclosure on the Company's Own Offices

The offices' environmental key figures are partly based on heating and electricity bills from the energy providers, the municipal water utilities and the waste disposal company. Extrapolations were necessary in some cases because the bills from utility companies for the reporting period had not yet been received at the time of publication. The fuel consumed by ­Vonovia's fleet was evaluated based on fuel cards.

Narrative on Performance

Sustainability is an integral part of Vonovia's business operations. We are therefore consistently continuing the process of integrating sustainable topics into the corporate strategy and developing suitable strategies and measures for all three areas - E, S and G - respectively the individual business areas and topics. An overview of our strategic approach can be found in our 2020 Sustainability Report. -  SR2020, p. 9 et seqq.

For the important sub-area of ecological development, the strategy is comprehensively described here: -  SR2020,

p. 23 et seqq.

In the other chapters of the sustainability report, you will find the other topic-specific strategic approaches. As part of the performance measures, we report additional explanatory information at relevant points in the individual tables of key figures.

Reporting Period

As with the Annual Report, we report by fiscal year, i.e., from January 1 to December 31 of a given year. For most of the key figures, we are reporting the last three fiscal years (2018, 2019 and 2020) in the 2020 Sustainability Report. As far as the EPRA key figures are concerned, we refer to the 2019 and 2020 fiscal years. As some key figures have been added for the first time, only data for the current fiscal year is available.

Materiality

We want to fulfill our responsibility to the environment and society as best we can. That's why we continuously deal with the processes of social and ecological change in a structured manner, and analyze how these changes impact our business and value creation (outside-in perspective). At the same time, our decision-making processes look at the impact that our business model has on the environment and society (inside-out perspective). A third important dimension in determining the issues that are material for us is also the perspective of relevant external stakeholder groups.

We redefined the material topics in 2020 as part of an extensive, testable materiality analysis. The resulting materiality matrix replaces the one in place since 2017 (see Vonovia Sustainability Report 2017). This new definition was prompted by changing overall social conditions, the mounting importance of climate protection issues and internal changes resulting from the company's internationalization and its new development business activities. The aim is to create a comprehensible basis to position Vonovia strategically and sustainably. See also our 2020 Sustainability Report. - 

Further information on the Overarching Recommendations can be found in the chapter About This Report in our 2020 Sustainability Report (-  SR2020, p. 104 et seqq.).

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