S1-2 – Processes for Engaging with Own Workforce and Workers‘ Representatives about Impacts

Through an annual employee satisfaction survey conducted via an online questionnaire, we provide our workforce with a platform for dialogue and a space to give anonymous feedback – also in subsequent team workshops – allowing employees to share their views on working conditions, collaboration and company culture. This approach specifically addresses the management of significant negative impacts, such as “employee dissatisfaction due to lack of co-determination,” while also contributing to the positive impact of “employee satisfaction through co-determination.” Additionally, it ties into the material “financial opportunity from employer attractiveness” by enabling employees to actively shape their working conditions and voice their opinions. The underlying questionnaire is developed and regularly updated with the support of an external service provider. Our target is to achieve a participation rate of at least 70% for interim surveys, which were last conducted in the 2022 fiscal year. This year, we alternated with the “Pulse Check” survey format, a partial survey conducted every two years, achieving a participation rate of 77%. These formats aim to communicate to all employees that they have open channels for dialogue with their employer. Following the full survey conducted in 2023, department-specific workshops involving the first and second management levels below the Management Board evaluated the survey’s immediate results. This was followed by an intensive review and the derivation of targeted follow-up measures for the next two fiscal years (2024 and 2025), positively contributing to our strategy and objectives for enhancing employee satisfaction. In the current fiscal year, the follow-up process was reviewed as part of the partial survey.

Annual and systematic feedback discussions foster a culture of continuous improvement, appreciation and mutual trust. In addition to annual performance reviews, employees participate in a summer feedback session. During this session, employees provide direct feedback to their managers via a questionnaire integrated into the Success Factors platform – a cloud-based SAP software that supports personnel management processes, including talent management, human resources management, recruiting, onboarding, performance assessment, and training. This feedback focuses on leadership behavior and team collaboration, aiming to identify areas for improvement. Employees have the opportunity to submit written feedback anonymously and voluntarily based on Vonovia’s leadership principles, a framework for modern, sustainable and value-based leadership practices. Following this, the entire team and the respective manager hold a meeting to jointly agree on actions to strengthen collaboration.

Employee representatives, understood as works councils under the Works Constitution Act (BetrVG), are included in the sustainability statement. At Vonovia, the Works Council of Vonovia SE serves as the representative body, with regular updates provided to the Group Works Council. The Vonovia SE Works Council includes employee representatives from Germany and Austria. Due to differing legal regulations, the Swedish subsidiary’s employees have not yet established employee representation. The Vonovia SE Works Council is involved annually in the analysis and evaluation of sustainability-related impacts, risks and opportunities (IROs) associated with ESRS S1, given their specialized expertise in this area. Meeting frequency is determined as needed. The Works Council is also informed about changes to reporting content due to new materiality assessments and the results of the auditor’s review of the sustainability statement. Additionally, the Works Council plays an explicit role in the annual data collection for the qualitative reporting content of ESRS S1. Germany continues its program of appointed representatives for young people and trainees and the severely disabled.

Responsibility for engaging with employee representatives and incorporating their input into company policies lies with the Chief Human Resources Officer (CHRO) and the Head of HR at Vonovia.

Vonovia and the Vonovia SE Works Council have adopted a company-wide Code of Conduct that explicitly includes respect for human rights. The Code of Conduct allows the Group Works Council to negotiate with the Management Board on its interpretation and application. It also provides consultation options with compliance officers or representatives from departments such as Internal Audit or Human Resources. This ensures that employee perspectives are consistently considered.

Vonovia evaluates the effectiveness of collaboration with its employees through the annual employee satisfaction survey, as effective co-determination directly impacts employee satisfaction. While collaboration with the Works Council is not formally assessed, senior managers on the first and second levels below the Management Board were surveyed in the reporting year and the previous year regarding their satisfaction with Works Council management.