S1-5 – Targets Related to Managing Material Negative Impacts, Advancing Positive Impacts, and Managing Material Risks and Opportunities

Working Conditions (Shortage of Skilled Workers)

To maintain our appeal as an employer at least at the same level as the previous year and as such to counteract the negative effects of the shortage of skilled workers and retain employees at Vonovia in the long term, we pursue the overarching goal of consistently high employee satisfaction. Employee satisfaction is also one of the six management-relevant subindicators of the Group-wide Sustainability Performance Index (SPI). Employee satisfaction is directly derived from the promotion of professional development and the co-determination opportunities available to our employees. This metric directly addresses our key IROs:

• Promotion of employees’ professional development
• Employee dissatisfaction due to lack of co-determination
• Employee satisfaction through co-determination
• Financial opportunity through appeal as an employer

The satisfaction score relates to the entire Group and is based on the aggregated approval rating, the so-called Retention Index, in the employee survey (agreement with the overarching question: “All in all, I can say that this is a great place to work.”), which is conducted across the Group every fall. Since the methodological structure of the survey is tailored specifically to Vonovia’s personnel measures and employee structure, the consolidated approval rating can only be compared to a limited extent with survey methods used by other companies. The SPI targets are set within the framework of five-year planning for each sub-indicator. Target achievement is determined at the end of the year based on the actual values achieved. For 2030, we are pursuing the medium-term goal of achieving and maintaining an approval rating of at least 77%. The baseline value for progress measurement is the previous year, with the current reporting year serving as the baseline year. No changes were made to our targets during the reporting period. This means that the actual value of employee satisfaction improvement in the reporting year corresponds to the planned value. Since this is a sub-indicator of the SPI (for further information, see ESRS 2 GOV-3), it is monitored directly by the Management Board.

Equal Treatment and Opportunities for All

Regarding the objective of achieving gender equality and empowering women within the company, we have set the target of increasing and maintaining the proportion of women in management positions at the first and second levels below the Management Board to at least 30% by 2030. This metric applies to the entire Group and is directly linked to our significant opportunity of “promoting ofdiversity in the workforce“. As another subindicator incorporated into the SPI, the proportion of women in leadership positions is subject to the five-year planning target value. The baseline value for progress measurement is the previous year, with the current reporting year serving as the baseline year. In the reporting year, our proportion of women in management positions stood at 25.8%. Compared to the previous year, we were able to increase this by 1.6 percentage points. This means that the actual value for the reporting year corresponds to the planned value. We consider it realistic that we will be able to achieve the medium-term target of at least 30% by 2030. Since this is a sub-indicator of the SPI, it is monitored directly through reporting to the Management Board.

Both targets directly reflect the goal of our policy formalized within our overarching HR strategy, which is to:

• secure the long-term success of Vonovia’s business and the associated jobs and, as a result, to retain skilled employees at Vonovia over the long term and
• develop and establish an innovative, open, and dynamic corporate culture that promotes equal treatment and opportunities over the long term.

Further Explanations of the S1 Indicators

The systematic monitoring of the personnel strategy objectives we have set is carried out using two indicators which, together with four other indicators, are incorporated into our central internal management metric, the Sustainability Performance Index (SPI):

• Proportion of women in management positions (first and second level below the Management Board)
• Employee satisfaction

The inclusion of these two indicators in the internal SPI metric underscores the strategic relevance of employee retention and the promotion of workforce diversity (for a detailed description of the SPI, see ESRS 2 GOV-3).

When setting the target for the indicator of women in management positions, we were guided by the representation of women in the Group as a whole (excluding the Care segment). The definition of this key figure, along with employee satisfaction, is carried out within the framework of the Management Board’s five-year planning. The target definition of the SPI subindicator “Proportion of women in management positions (first and second management levels below the Management Board)” differs from the calculation basis and the reported actual values of the diversity parameters in S1-9. The Care segment is excluded from the target definition of the subindicator. For detailed information on the definition of the SPI subindicators, see ESRS 2 GOV-3.

Employee satisfaction is monitored through the annual employee satisfaction survey. Since the methodological structure of the survey is tailored specifically to Vonovia’s personnel measures and employee structure, the consolidated approval rating can only be compared to a limited extent with survey methods used by other companies. The satisfaction score increased (+10 pp) from 69% compared to the last partial survey in 2022 by 10 percentage points, reaching 79% approval, and saw a one percentage point (+1 pp) increase compared to the previous full survey in 2023. With this year’s result, we have exceeded our target value for 2024.