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SBM-3 – Material Impacts, Risks and Opportunities and Their Interaction with Strategy and Business Model

The subtopics (in accordance with ESRS 1.AR 16, supplemented by entity-specific topics) based on which we assess material IROs on a consolidated basis are a main level guiding us in our actions.

Mapping of IROs to subtopics

Mapping of IROs to Subtopics

Material subtopic

IRO title

Risk/opportunity/impact (actual/potential;
positive/negative)

ESRS E1 – Climate Change

Climate change
mitigation

Negative contribution to the global increase in greenhouse gas emissions

Impact (actual/negative)

Positive effect on greenhouse gas reduction through modernization as part of the core business

Impact (actual/positive)

Earnings potential as a result of the energy-efficient modernization of the housing stock/increase in modernization volume

Opportunity

Energy

Positive contribution to energy transition

Impact (actual/positive)

Climate change
adaption

Contributing to negative effects of climate change through new construction and densification

Impact (actual/negative)

Positive effects through mitigation of consequences of climate change

Impact (actual/positive)

ESRS S1 – Own Workforce

Working conditions (skilled-labor shortage)

Promotion of employees’ professional development

Impact (actual/positive)

Employee dissatisfaction due to lack of co-determination

Impact (actual/negative)

Employee satisfaction through co-determination

Impact (actual/positive)

Financial opportunity through appeal as an employer

Opportunity

Equal treatment

Promotion of diversity in the workforce

Impact (actual/positive)

ESRS S4 Consumers and End-Users

Social inclusion of consumers and/or end-users (access to products and services)

Housing tailored to tenants’ needs

Impact (actual/positive)

Improved tenant satisfaction through enhanced accessibility and service quality

Impact (actual/positive)

Reduced tenant satisfaction due to limited accessibility and service quality

Impact (actual/negative)

Reduced tenant turnover through the creation of homes that meet people’s needs

Opportunity

Financial opportunity from increased tenant satisfaction and service quality

Opportunity

Entity-specific disclosure: Neighborhood Development

Increased quality of living for tenants through contribution to neighborhood development and infrastructure

Impact (actual/positive)

Entity-specific disclosure: Living at Fair Prices

Contribution to more affordable homes for tenants by adhering to regulatory frameworks

Impact (actual/positive)

Contribution to more affordable homes for tenants through new construction and development activities

Impact (actual/positive)

Financial risk due to changes in regulatory frameworks (rents and standards)

Risk

ESRS G1 – Business Conduct

Corporate culture

Positive impacts on employees through the Code of Conduct and the creation of a corresponding corporate culture

Impact (actual/positive)

Corruption and bribery

Financial risk from corruption and bribery

Risk