S4-5 Targets Related to Managing Material Negative Impacts, Advancing Positive Impacts, and Managing Material Risks and Opportunities

Homes That Meet Peoples’ Needs

The core indicator for adapting apartments to meet the needs of an aging population is the proportion of accessible (partially) modernized newly rented apartments in Germany. This includes both measures in the event of a change of tenant and modernizations at the request of the tenant. We assess new rentals based on comparable portfolios and exclude newly constructed homes.

Our medium-term goal for 2030 is to modernize around 27% of newly rented apartments every year so that they meet the demands of an aging society. In previous years, we aimed to modernize around 30 % of the newly rented apartments each year. As the proportion of senior-friendly modernized apartments in the total portfolio increases each year, resulting in more apartments being newly rented without requiring further modernization, we have slightly adjusted our target in this regard until 2030. This quantified goal directly aligns with our policy objectives for housing tailored to tenant needs. The reference year for tracking progress on this and all other sub-indicators of the Sustainability Performance Index (SPI) is always the current year. The metric covers all modernization measures carried out as part of the relevant investment program during the reporting year. The criteria for “accessible” align with the product catalog of the German Development Bank (KfW). This KPI applies specifically to the German portfolio.

In 2023, due to limited investment capabilities, we were only able to implement accessible (partial) modernizations in approximately 6,550 apartments (17.5% of new rentals). However, in the 2024 fiscal year, we achieved our target once again, (partially) modernizing approximately 11,100 apartments to be accessible, representing 29.5% of new rentals in Germany. 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.

Customer Satisfaction

The core indicator we use to measure customer satisfaction is the CSI. The satisfaction level we use as the basis for calculating the improvement is expressed as a percentage, while the change compared to the previous year is given in percentage points. This index is specifically tailored to Vonovia and is therefore not comparable to other customer satisfaction analyses or indices.

Our medium-term goal for 2030 is to maintain our high level of satisfaction, which we define as a satisfaction index above 73 %, and we aim to achieve this target annually. The target is derived from the peer benchmark provided by the external service provider conducting the satisfaction survey. This quantified goal directly aligns with our policy objectives for customer satisfaction. The reference year for tracking progress on this and all other sub-indicators of the Sustainability Performance Index (SPI) is always the current year. The KPI is derived from 25 questions included in customer surveys. These questionnaires remain unchanged over time to ensure comparability. Approximately 32,000 customers are surveyed each quarter. This KPI applies specifically to Germany.

In 2024, we increased customer satisfaction by 2.8 percentage points compared to the previous year, achieving a satisfaction score of 75.2%. 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.

Further Explanations of the S4 Indicators

Both indicators – the “proportion of accessible (partially) modernized apartments among new rentals in Germany” and “increase in customer satisfaction in Germany” – are part of our Sustainability Performance Index (SPI). They are two of the six KPIs linked to remuneration in the sustainability area (see ESRS 2 GOV-3).

The Management Board has set the SPI’s individual indicator targets for 2030, which are closely tied to the company’s five-year investment planning. The relevant key figures are recorded quarterly by Controlling and used in our external reporting and for communication with the capital market. Target achievement is determined at the end of the year based on the actual values achieved. For details about the SPI, refer to ESRS 2 GOV-3. Scientific findings were not considered in setting the targets mentioned under ESRS S4. Additionally, consumers or end-users, or their representatives, were not directly involved in setting the sub-indicator targets of the SPI, tracking performance toward these targets, or identifying areas for improvement.