ESG Ratings and Indices
We actively communicate our performance and progress in the field of sustainability to capital market participants. In this way, we acknowledge the growing importance of ESG criteria in investment decisions and secure and expand our appeal for investors over the long term.
Potential investors frequently look at the position of our company in recognized sustainability rankings and the resulting indices. This is why we participate in a wide range of national and international sustainability ratings and benchmarks. This allows us to measure and present our sustainability performance and relevant key figures against recognized standards and competitors (see Appeal on the Capital Market).
Selected Rankings and Results – ESG Ratings
EPRA – sBPR
The European Public Real Estate Association (EPRA) evaluates the sustainability transparency of listed real estate companies based on the EPRA Sustainability Best Practice Recommendations (sBRP). In addition to overarching transparency disclosures regarding the scope and reach of the sustainability information reported, specific disclosures and, most importantly, annual comparisons regarding selected ecological, social and governance indicators are required. In addition to our Annual Report and Sustainability Report, we publish a separate EPRA report every year, which is used for this assessment. In 2022, we received the Gold award for our performance for the fifth year running.
CDP – Climate Change
The Carbon Disclosure Project (CDP) helps companies to measure and manage their environmental performance and the associated opportunities and risks. The CDP assessment is based on bands, where A stands for leadership, B for management, C for awareness and D for disclosure.
We were awarded a B rating for our performance in 2022. This puts us on the same level as the European average and above our direct peer group and global averages. We received outstanding ratings in the categories Scope 1–3 emissions and emission reduction initiatives, among others.
Sustainalytics is an independent, innovative service provider of responsible investment services. Sustainalytics takes all three dimensions of the ESG approach into account to analyze and evaluate the sustainability performance of companies and countries alike. The ESG Risk Rating evaluates how large and active the company’s sustainability risks are. Sustainalytics allocates risks to risk categories for this purpose: “negligible” for a score <10, “low” for a score of 10–20, “medium” (20–30), “high” (30–40) and “severe” for scores >40. At 6.7 at the end of 2022, we are in the lowest risk category. Vonovia is therefore classed as one of the absolute top performers in the industry, and among the top 50 in a global comparison across all industries. This equates to 85 points in Sustainalytics’ ESG company rating.
S&P Global CSA
The S&P Global Corporate Sustainability Assessment (CSA) evaluates the sustainability performance of around 8,000 international companies. Our performance is assessed in 24 (partially) industry-specific question categories with over 100 questions to encourage companies to bring their corporate strategies into line with social and ecological challenges. In 2022, Vonovia improved on the previous year’s very good ranking, and achieved 71 (2020: 68) out of a possible 100 points. This puts us in the 97th percentile. Our performance also allowed us to consolidate the company’s position in the Dow Jones Sustainability Index Europe.
ISS ESG – Corporate Rating
ISS ESG analyzes a company’s ESG management based on up to 100 criteria, many of which are sector-specific. The assessment scale ranges from A+ to D-; B is only achieved by very few companies in the real estate sector (and A by none). Vonovia was given Prime status for the first time in 2020, indicating that it is outperforming its peers. Since then, we have been able to hold on to this good result. We are in the second best tenth of our sector. Our level of transparency was also confirmed to be very high.
MSCI – ESG Research
MSCI ESG Research rates companies on a scale from AAA to CCC based on their ESG-related risk exposure and how they handle these risks compared to other companies. In the annual ranking, we rose from A to AAA in 2022. This puts us among the top 20% in our sector. MSCI particularly noted our governance structures, our measures for recruiting and developing employees and our robust climate protection measures in our housing stock in its assessment of Vonovia.
The GRESB (Global Real Estate Sustainability Benchmark) is an investor-initiated rating system for the sustainability performance of real estate companies. In 2020, we made the decision to no longer participate in the rating for the time being due to changes in the assessment methodology. We have described the reasons for our decision transparently on our Investor Relations website. However, we are still in contact with GRESB and support potential developments that would lead to the rating system being applicable to residential real estate companies again.
We continue to participate in the GRESB Public Disclosure and again achieved a full score (100%) for maximum transparency in 2022. The resulting assessment of A (in a scale from A to E) took us to first place in a comparison of German residential real estate companies and is above the global average of B.
Dow Jones Sustainability Index Europe
Our repeated improvement in the S&P CSA meant we were again able to consolidate our position in the Dow Jones Sustainability Index (DJSI) Europe in 2022. The DJSI index family tracks economic, ecological and social criteria. It was launched in 1999 as a collaboration between Switzerland-based S&P Global (formerly known as SAM) and the Dow Jones Indices. S&P Global uses positive criteria to select the most sustainable companies for inclusion in the index in question. The ten best-rated real estate companies are listed in the DJSI Europe.
DAX 50 ESG
Vonovia was included in the new DAX 50 ESG index in 2020. Companies have to meet certain ecological, social and governance criteria to be included in the index. A total of 50 companies from the DAX, MDAX and TecDAX were listed on the index. Vonovia is placed among the top 5 of the index in the ESG ranking (as of March 6, 2023).
We are also listed in the STOXX Global ESG Leaders and EURO STOXX ESG Leaders 50.