Management Approach: Systematic Reduction in Energy Use and Increased Energy Efficiency for Our Portfolio

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Vonovia aims to support the German government in achieving its climate goals through its energy-efficient building upgrades. In addition, a high energy standard reduces the level of energy consumption in apartments and thus, in the long term, also our tenants’ ancillary expenses. However, at the same time it is important to us that the modernization measures which we implement are affordable for our tenants.

We continued to successfully pursue our systematic approach in 2016. The most frequent energy-efficient measures were facade insulation, replacement of windows and heating systems and insulation of attic and basement ceilings.

In order to rise to this challenge of reconciling ecological goals with our tenants’ economic interests, in the 2016 fiscal year we successfully applied new financing instruments which focus on energy saving and ramped up our modernization program by 33%, from a volume of € 355.6 million in 2015 to € 472.3 million.

42,000

MWh
savings of energy demand in our building stock in 2016

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26,000

MWh
savings of energy demand in our building stock in 2015

In implementing our modernization measures, we of course comply completely with the legal requirements of the German Energy Saving Ordinance (EnEV). The German Reconstruction Loan Corporation (KfW) is subsidizing a major portion of the modernization measures. The KfW standard required to obtain a subsidy actually exceeds the EnEV efficiency requirements. In 2016, within the scope of our modernization program, a total of 10,326 rented units were refurbished with KfW funds – this figure includes energy-efficient building upgrades as well as modernization of heating systems.

In Berlin, we have launched a building upgrade pilot project within the scope of the KfW 151 development scheme. The goal is to construct an energy-efficient building which meets the KfW 100 standard. This represents a further approach to building upgrades, in addition to our building upgrades within the scope of the KfW 152 development scheme.

Modular and prefabricated construction is the standard approach for our new construction segment. Through high-volume factory pre-production, buildings can be constructed in a more energy-efficient manner. This helps to conserve environmental resources.

As far as its technical measures are concerned, Vonovia seeks not only to adhere to the latest technical standards and the applicable requirements at all times, but also to anticipate future developments. This includes, for example, being involved in the new nationwide “Alliance for Climate-Neutral Housing” (Allianz für klimaneutralen Wohnungsbestand), which brings together companies and institutions from the real estate sector, industry and academia. The members of the Alliance are convinced that the key to affordable environmental protection in residential buildings lies in increasing the efficiency of building heating supplies. They believe that, as well as renovating the building shell, the technical building infrastructure, in particular, has to be improved by taking measures with a high cost–benefit effect. In the biggest academic study conducted on this topic to date, various technologies are being analyzed in more than 500 multifamily residences to examine their effects in terms of generating savings. The research findings are intended to show which measures yield particularly substantial savings in relation to the required investment. 102-13