Regional Nature of the Supply Chain

Due to the regional nature of its business, Vonovia prefers to work with local and regional suppliers: Many materials and services are sourced from local and regional suppliers, and in almost all cases, contracts with subcontractors are awarded within Germany. Moreover, within the framework of its social charter commitments, for several portfolio acquisitions Vonovia is obliged to place orders exclusively with small and medium-sized companies from the region at market prices. The total procurement volume for German suppliers and service providers was 95% in 2016. 204-1

In cooperation with central procurement, the technical departments select the construction companies to be commissioned as subcontractors. Direct contact with these companies creates trust-based and reliable relationships. Many years of cooperation demonstrate that labor and social standards are reliably complied with. In the event that subcontractors find themselves in difficulties due to negative procurement decisions, we enter into a direct dialog and identify socially acceptable solutions. Vonovia bears social responsibility and is aware of the effects of negative procurement decisions, particularly for very small companies.