Reporting Framework
Principles/Material Topics
Vonovia conducts regular materiality analyses to identify and validate the sustainability topics that are relevant to the company. The current requirements set out by the Global Reporting Initiative (GRI) and, from the 2024 financial year, the European Sustainability Reporting Standards (ESRS) provide the framework for this. As a result, Vonovia has been applying the concept of double materiality for some time now and takes both the outside-in and the inside-out perspective into account when selecting the key sustainability topics. The current materiality analysis can be consulted in the 2023 Annual Report. You can find further information on the materiality analysis on the Group website.
The materiality analysis applies to the entire Group. The main sustainability topics resulting from our materiality analysis can be clustered into five areas for action:
- Environment and climate
- Society and contribution to urban development
- Homes and customers
- Corporate culture and employees
- Sustainable governance and responsible business practices
We apply the structure of the three sustainability pillars – environment, social and governance (ESG), with the middle three areas for action being assigned to the social category. The ESG structure is also used in this ESG Factbook.
Reporting Framework
Vonovia’s sustainability reporting in the Annual Report and in the ESG Factbook is based on the fiscal year and is published annually. The reporting period for this ESG Factbook relates to the 2023 fiscal year (January 1 to December 31, 2023), meaning that it picks up exactly where the 2022 Sustainability Report, which was published in April 2023, left off.
As a capital market-oriented company, Vonovia SE is also required to make statements in accordance with Sections 315b, 315c in conjunction with Sections 289c to 289e HGB (Non-financial Group Declaration). These necessary reporting requirements were implemented in the management report of the 2023 Annual Report, which was published on March 15, 2024.
For the definition of selected key figures, we are guided by the Universal Standards (as amended in 2021) of the Global Reporting Initiative (GRI). In preparation for the CSRD implementation that will be relevant for the 2024 fiscal year, we are already using some of the ESRS key indicator definitions in this ESG Factbook. Insofar as key figures are disclosed in orientation to GRI or ESRS, we refer to the corresponding standard in the table header.
Organizational Boundaries/Scope of Consolidation
The key figures presented in the ESG Factbook reflect Vonovia SE’s activities in Germany, Austria (BUWOG AT) and Sweden (Victoriahem AB) and are based on the financial control approach. They include those companies presented in the list of shareholdings in the 2023 Annual Report that are also included in the consolidated financial statements. Entities with minority interests and apartments owned by third parties are not included.
Deutsche Wohnen SE, which has been part of the Vonovia Group since September 30, 2021, is fully integrated in the consolidated reporting. This excludes the Deutsche Wohnen SE subsidiaries allocated to the Care segment. This area has been classified by Vonovia SE as discontinued operations and consists of the care business and care properties. As of December 31, 2023, we employed a total of 3,825 people in care service or care home management. Care business operations are based on an independent system and process landscape, and 39 retirement and care homes are operated under the brands KATHARINENHOF and PFLEGEN & WOHNEN HAMBURG, 38 of which are owned by Deutsche Wohnen. There are also an additional 33 nursing care properties run by other agencies.
Due to the integration process that was implemented in 2022, many of the key figures reported for the 2022 fiscal year already include Deutsche Wohnen SE. We provide information on the status of the figures in the footnotes. The information presented for the 2021 fiscal year excludes Deutsche Wohnen. The definition of the scope of the ESG Factbook in terms of the consolidated companies is regularly reviewed and adjusted if necessary.
Coverage
Residential property is the primary asset class in Vonovia SE’s real estate portfolio, accounting for 98.4%. With almost 65,000 buildings in the portfolio, reporting is aggregated at portfolio level.
Data aggregation is performed at the level of individual countries and the information is consolidated at this level and at overall Group level. The key reporting figures make a distinction between the core markets of Germany, Austria and Sweden.
The breakdown can be made at country level according to the rentable area or the number of employees (headcount):
Coverage
Region | Rental space | Headcount | ||
Coverage | ||||
Germany | 86.5% | 92.3% | ||
Austria | 4.8% | 3.1% | ||
Sweden | 8.6% | 4.6% | ||
For a detailed segment analysis of the portfolio, please refer to the section entitled Portfolio Structure in the 2023 Annual Report.
Any deviations from the degree of coverage are explained directly in the corresponding tables of key figures.
Underlying Data/Estimation Techniques
Due in particular to the decision to start switching individual key figures over to the upcoming European ESRS reporting format early on, it was once again the case in the reporting year that some key figures were adjusted in methodological terms, or changes were made to their presentation. This relates primarily to the structure of the greenhouse gas and energy consumption tables, the amount of waste in the portfolio and the occupational safety and gender pay gap tables. We explain the changes in the relevant table of key figures.
As far as possible and to the extent that the data is available at the required time, we use values that have actually been measured for our data analyses. Where data availability is restricted, we use generally recognized estimation techniques, for example in the area of tenant-related utility services, which are invoiced directly to tenants.
Energy certificate data forms the basis for calculating the portfolio’s energy consumption and greenhouse gas emissions.
Third Party Assurance
Like the Non-financial Group Declaration in the Annual Report, the ESG Factbook was subjected to a separate limited assurance audit conducted by PwC GmbH Wirtschaftsprüfungsgesellschaft, Essen, in accordance with ISAE 3000. The Supervisory Board passed a corresponding resolution at its meeting on March 16, 2023 (see Supervisory Board Report). All references to content outside this ESG Factbook are considered additional information and are not covered by the business audit.