Appeal on the Capital Market

As a real estate company with a long-term focus, we aim to strike a balance between commercial activity on the one hand, and social responsibility and ecological objectives on the other. We are committed to the principles of the social market economy and profitability. We can only implement our sustainability policy successfully if we are also commercially successful with our business model. We want to increase the value of our company and make ourselves more attractive to investors in the long run, while also contributing to sustainable development in our sphere of influence. This also makes us attractive to investors, who are attaching increasing importance to sustainability. Access to the capital market is crucial for us in this respect. This also applies to future financing instruments, such as green bonds, which Vonovia is also interested in issuing.

On the capital market, it is becoming increasingly important to take ESG criteria into account when making investment decisions. With its Action Plan for Financing Sustainable Growth, the European Union is picking up on these trends and driving them forward. Failure to meet ESG expectations can sometimes result in a company actually being excluded from an investor’s investment portfolio. ESG performance is also reflected primarily in a company’s standing in the relevant ratings and benchmarks. As a result, we aim to present our sustainability performance to the capital market in a transparent manner, also by participating in the ESG ratings that are relevant to our investors, and by being awarded consistently good ratings. As well as performing regular checks to see whether we are listed in the relevant indices, we also use the results of the rating process and peer group comparisons to further develop our sustainability measures in a targeted manner.

Vonovia was able to achieve a substantial improvement in a number of ratings in 2020. By way of example, Vonovia climbed to a position in the top percentile of the more than 12,000 companies across the globe that are rated by Sustainalytics, was awarded “Prime” status by ISS-oekom for the first time and was included in the renowned Dow Jones Sustainability Index Europe.

Target for 2021 and the years to follow: Keeping results at a high level and achieving ongoing improvement.

Within the company, the Sustainability/Strategy department is responsible for actively managing our participation in ESG ratings, involving the operating departments in this process.

The Investor Relations department is, in consultation with the Management Board, responsible for capital market communications and dialogue with investors. Regular dialogue is held with capital market participants, also on ESG issues. The annual Capital Markets Day organized by the Investor Relations department (which did not take place in 2020 due to the coronavirus pandemic) serves as an important communication channel for putting individual topics under the spotlight and explaining them in greater detail. Sustainability will be the central topic addressed in 2021. Investor Relations also conducts additional roadshows and organizes face-to-face investor meetings on sustainability. A roadshow on corporate governance issues is usually held once a year with the Chairman of the Supervisory Board.

The Investor Relations department and the Sustainability/Strategy department report to the CEO. Decisions regarding ESG ratings are made in the sustainability committee, which also receives regular information on developments in this area.