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

Our overarching targets for a successful transformation and growth process call for a successful HR strategy for recruiting and retaining employees. One of the challenges we face in this regard is the 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 skilled-labor shortage, retain employees at Vonovia in the long term and recruit new hires, we pursue the overarching goal of consistently high employee satisfaction. Employee satisfaction is also one of the six management-relevant sub-indicators of the Group-wide Sustainability Performance Index (SPI), which we use to track our target achievement. We can evaluate potential areas for improvement by analyzing our employee satisfaction survey. Employee satisfaction is also directly linked to working conditions at Vonovia, which result from our following material IROs:

• Employee satisfaction through professional development opportunities,
• Employee satisfaction through opportunities for participation,
• Employee satisfaction due to fair remuneration, and
• Employee satisfaction based on work-life balance.

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.”). The retention index (2025: 84% / 2024: 78%) itself consists of five questions and, in combination with the employee turnover rate, is a suitable tool for measuring the impact that our HR measures have on employee retention. 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. The approval rate came to 85% in the reporting year (2024: 79%). 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.

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. When setting the target, we were guided by the representation of women in the Group as a whole. The metric that we use to track our progress toward this target and determine whether any adjustments need to be made to the action we are taking applies to the entire Group and is directly linked to our material impact, namely a lack of a sense of belonging due to insufficient efforts to promote diversity. As another sub-indicator 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 26.7% (2024: 25.8%). This means that the actual value for the reporting year does not match the planned value of 29.5%. We nevertheless still 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. No changes were made to our targets during the reporting period.

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

• use a growth and transformation campaign to secure the long-term success of Vonovia’s business and the associated jobs and, as a result, to recruit and 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.

No employees or employee representatives were involved in the target-setting process.