Sustainability Report 2019

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Energy Efficiency and Reducing Greenhouse Gas Emissions

Challenges, Opportunities and Risks

Challenges

  • Striking a balance between energy efficiency requirements and rising costs for customers
  • The regulatory landscape is becoming increasingly stringent, narrowing down the options available for innovative and sustainable action
  • Reduced profitability of tenant electricity models due to cost-intensive techniques and billing processes

Opportunities

  • Innovative ways of improving building performance
  • Use of buildings to produce renewable energy and expand Vonovia’s own energy supply
  • Introduction of tenant electricity models
  • Digitalization in building operation and energy supply

Risks

  • Lack of acceptance within society for allocating modernization costs to tenants, as is allowed under the current legislation, and for rent increases following energy-related modernization measures
  • Modernization work not profitable due to regulation and rising costs
  • Statutory regulations stand in the way of implementing sustainable energy projects, e.g., tenant electricity models
  • Continual changes in funding principles is eroding trust in the planning security of the projects, and thus in investment security

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