S4-1 – Policies Related to Consumers and End-Users

Customer Satisfaction

Customer satisfaction is instrumental in the success of a company. As such, we aim to maintain consistently high customer satisfaction, reflected in the positive development of the Customer Satisfaction Index (CSI), which is a sub-indicator of the SPI. For us, customer satisfaction is closely tied to tenants being happy with our service quality and the accessibility of our customer service. This includes IROs such as “improved customer satisfaction through better accessibility and service quality,” “Reduced customer satisfaction due to limited accessibility and service quality,” and the “Financial opportunity from increased customer satisfaction and service quality.” In this regard, Vonovia has implemented a central and digital property management platform. This is an ERP-based application with company-specific configurations that enables the efficient and effective management of our housing portfolio (own business area) in Germany. This platform also forms the basis for the successful digitalization of our process chains. This fully end-to-end digitalized process offers significant energy advantages in terms of economies of scale, represents substantial cost benefits and serves as a key differentiating factor in the competitive market. Vonovia has adapted the expertise from this platform and its centralized and local property management processes for the property management business in Austria and Sweden, in line with the requirement profiles that apply in those markets. The implementation of this policy is overseen by the Management Board (CRO).

Housing Tailored to Tenants’ Needs

Our aging society, a result of demographic change, means that our customers’ needs are changing, too. The demand for senior-friendly housing is expected to outstrip supply in Germany by around two million by 2035. To address this, we have developed a policy for creating age-appropriate housing in Germany (a key business area), which is formalized through our investment program for accessible (partial) modernizations (IROs “Housing tailored to tenants’ needs” and “Reduced tenant turnover through the creation of homes that meet people’s needs”). This policy targets the accessible (partial) modernization of vacant apartments (during tenant transitions). Our goal under this policy is to ensure that approximately 27% of apartments rented out annually in Germany by 2030 are accessible (partially) modernized (see section S4-5 regarding this target). This contributes to the availability of age-appropriate housing and is integrated into our overarching sustainability strategy through the SPI, specifically the “Proportion of accessible (partial) modernizations” sub-indicator. The approach also includes fully accessible new construction. The implementation of this policy is overseen by the Management Board (CRO and CDO). Our policies related to customer satisfaction and housing that meets tenants’ needs, along with the associated goals, measures and indicators, primarily target our core business of property rental and management in Germany. These concepts explicitly exclude the care sector.

Anchored in the Management System

The integration of these policies into our corporate management occurs via the Sustainability Performance Index (SPI), which includes the subindicators for the Customer Satisfaction Index (CSI) and the proportion of accessible (partial) modernizations in new rentals. The targets for these SPI sub-indicators are defined during the budgeting and mid-term planning processes and are linked to investment planning. Target achievement is monitored on a quarterly basis. Measures to achieve the targets are implemented through dedicated investment programs and action plans in the relevant business and specialist units. For a detailed explanation of the SPI, see ESRS 2 GOV-3.

Respect for Human Rights

All human rights-related obligations and frameworks applicable to Vonovia also apply to our customers. In our Declaration of Respect for Human Rights, which is binding throughout the Group, we communicate our clear conviction for a pluralistic democratic society and zero tolerance of human rights violations along with our commitment to respect human rights in all aspects of our business. This includes the exclusion of discrimination of any kind, for example in the allocation of housing. 

We adhere to the core labor standards of the International Labour Organization (ILO), the UN Guiding Principles on Business and Human Rights and the principles of the UN Global Compact, to which we committed in 2020.

Adhering to the Declaration of Respect for Human Rights, the ILO Core Labor Standards, the UN Guiding Principles on Business and Human Rights and the principles of the UN Global Compact are absolute priorities in implementing our concepts related to demand-driven housing and customer satisfaction. Please refer to ESRS 2 GOV-4 for more information on the monitoring process.

In the markets where we operate – Germany, Austria, and Sweden – there are also extensive legal protection mechanisms in tenancy law and social charters to safeguard tenants against human rights violations.

Consumers or end users are not directly involved in this process. However, tenants can report violations of human rights or suspected cases of discrimination through various channels (see G1-3). Reported cases are followed up immediately, ensuring our customers are indirectly involved in monitoring compliance with the stated principles and guidelines.

Each report is thoroughly reviewed, and individual, proportionate measures are taken as needed. Further details about our whistleblower channels can be found in S4-3 and G1-3.

Our business strategy for demand-driven housing and customer satisfaction aligns with the internationally recognized frameworks mentioned above, including the United Nations Guiding Principles on Business and Human Rights. Respect for human rights is the highest priority across all our business processes. Suspected cases of human rights violations or discrimination are promptly addressed. By handling rentals primarily through our own employees, who are directly bound to follow the stated principles and guidelines, rather than external brokers, we minimize the risk of non-compliance. No cases of non-compliance with the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, or the OECD Guidelines for Multinational Enterprises related to tenants were reported during the reporting year.