Climate Protection in the Housing Portfolio

In March 2024, the Science-based Target initiative (SBTi) confirmed that the near-term targets set and submitted by Vonovia SE are in line with the 1.5-degree goal of the Paris Agreement:  

“Vonovia SE is committed to reducing absolute Scope 1 and 2 greenhouse gas emissions by 42% by 2030 compared to the base year 2021. Vonovia SE is also committed to reducing absolute Scope 3 greenhouse gas emissions from the categories “Fuel and energy-related activities,” “Use of sold products” and “Downstream leased assets” by 25% by 2030. 

This places us among the four companies in the German real estate sector to receive such confirmation from the SBTi. Across Europe, only 37 companies in the real estate sector have achieved this distinction. 

The Science-based Target initiative (SBTi) is a non-profit organization that establishes standards and benchmarks to assess whether greenhouse gas (GHG) targets are sufficient to meet the global challenge of limiting global warming to levels deemed critical by the global community and achieving net zero emissions by 2050.

The SBTi is formed by the CDP, the United Nations Global Compact, the We Mean Business Coalition, the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF).

Energy-related refurbishment to enhance energy efficiency is a cornerstone of Vonovia’s climate pathway. Utilizing our in-house developed Decarbonization Tool (DCT), we create individualized energy refurbishment and energy concept plans for each building. Our focus on improving energy efficiency includes various measures such as insulating facades, cellar ceilings, and attics, as well as replacing windows. In 2023, we achieved an overall refurbishment rate of 1.2%. We leverage public-sector subsidy programs for many of these refurbishment initiatives to minimize costs for our tenants, notably including federal subsidies for energy-efficient buildings (BEG).

Since 2022, we have been accelerating the electrification of heat generation through our heat pump initiative.. To further enhance the cost-effectiveness of energy-efficient building refurbishment in the medium and long term, we continued to advance serial refurbishment efforts in the reporting year.. Expanding on a pilot project in Bochum in 2022, another refurbishment project based on the Energiesprong  principle was implemented during the reporting period. In Witten, both four-story and, for the first time, eight-story apartment buildings with six to 24 units were equipped with prefabricated, glass-faced facade elements featuring a honeycomb structure designed to utilize solar radiation for heat generation. The buildings also generate heat via a highly efficient heat pump powered by green electricity generated from photovoltaic panels installed on roofs and facades. Additionally, the windows include integrated blinds and facilitate natural ventilation in living areas. Overall, this project will upgrade the buildings from energy efficiency class E to A+ following the refurbishment. Crucially, the initiative is designed to be cost-neutral for tenants over the medium and long term. 

We are also advocating for transparency regarding environmental impacts throughout the entire lifecycle of materials and products used in energy refurbishments. Through a comprehensive analysis of historical purchasing data, we calculated the carbon footprint associated with the materials and services utilized, identifying significant hotspots. They are particularly related to windows, insulation materials, and heating systems. The next phase involves integrating these calculations into our data systems.

Another crucial lever for our climate strategy involves ensuring sufficient supply of carbon-neutral district heating and electricity from the energy sector. This requires the energy sector to adhere to policymakers' targets for phasing out coal and increasing the proportion of renewable energies in energy and electricity generation. We view the mandatory municipal heating planning process as a significant step toward achieving this objective. It offers long-term planning certainty regarding the availability of district heating across municipalities. The German Heat Planning Act also includes mandatory targets for decarbonizing heating networks.

A notable practical example is the Bochum heat transition project, in which Vonovia is actively involved. A key aspect of this initiative involves adopting an integrated approach to heat and electricity generation that considers all stakeholders within the municipality. District heating represents a significant lever for us, particularly where connecting additional properties to district heating networks is economically feasible, while advancing the decarbonization of heat generation by public utilities companies. Consequently, Vonovia is evaluating the decarbonization strategies of major district heating providers and, based on these assessments, developing potential strategies to integrate them into its long-term neighborhood strategy.