Deutscher Nachhaltigkeitskodex

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Sustainability is often a cross-cutting topic within a company that requires the cooperation of multiple business divisions. Clear goals which are ambitious but nonetheless achievable promote constructive and coordinated cooperation and ensure that the sustainability strategy is implemented. The process of developing sustainability goals can itself be used to raise awareness of the topic internally and give all sorts of employees the opportunity to participate in developing and implementing the sustainability strategy.

What needs to be borne in mind?
Please endeavour to state both quantitative and qualitative goals and relate the goals to your company operations as a whole and your core line of business. Please note that we are talking about the overarching objectives of your sustainability strategy here. You can give more detailed accounts of more specific goals under the relevant criteria in the “Environmental matters” and “Society” sections.
If your company has yet to set itself sustainability goals, please outline the process you wish to adopt in order to develop such goals and state the point in time by which the goals are to be defined.

Aspect 1:
State which medium- and long-term goals your company has set itself as part of its sustainability strategy.

Aspect 2:
Explain which goals are being prioritised and also how and why they are being prioritised.

Aspect 3:
Explain how achievement of the strategic sustainability goals is being monitored and who within the company is responsible for this.

Aspect 4:
State whether and how your sustainability goals are based on the United Nations’ Sustainable Development Goals.

An objective describes a desirable state which is to be achieved by a specific time in the future on the basis of corresponding behaviour. Quantitative goals are linked with a figure, such as reducing energy consumption by 20%. Qualitative goals describe a state which is to be achieved. These should likewise be formulated such that it can be clearly ascertained whether the goal was achieved or not by X point in time, e.g. setting up a company playgroup or achieving climate neutrality.
Here, operationalising means making the goal achievement measurable. The objectivity, reliability and validity of the data need to be ensured. Measurable means that the goals are defined as clearly as possible and that the plan and time frame up to goal achievement are clearly stipulated. Only then can it be determined whether and to what extent the goals really have been achieved and whether adjustments are needed (see also criterion 6).

Deutsche Wohnen SE

Our sustainability programme consists of strategic and operationalised targets and associated measures. It also documents our progress in the relevant areas. The programme paves the way for steering our sustainability-related objectives, which also contribute towards achieving our corporate goals. At the beginning of this year, the various divisional managers worked with the Management Board to develop the new strategic sustainability programme, which is geared more heavily towards targets for specific areas of action and includes concrete measures and their management via key figures. The new sustainability programme is presented in our sustainability report 2017.

Sustainability programme

1. RESPONSIBLE CORPORATE MANAGEMENT
Strategic target	Operationalised targets	Deadline
Strategically manage sustainability activities	Initiate a strategic sustainability programme Establish a sustainability committee Make long-term targets a component of the remuneration system for the Management Board and executives	2018 2018 2019
Embed Deutsche Wohnen’s sustainability philosophy more strongly in the minds of business partners and suppliers	Initiate a Code of Conduct for business partners and suppliers Work predominantly with regional suppliers and business partners Pay greater attention to ecological aspects in conjunction with procurement (maintenance, modernisation, new construction)	2019 continous 2018
Expand stakeholder dialogue	Actively include sustainability issues in stakeholder communication Conduct regular stakeholder surveys in relation to sustainability activities and requirements (every three years) Develop new dialogue formats with political office-holders at national, state and local level	2018 2018 2018

2. RESPONSIBILITY FOR THE PROPERTY PORTFOLIO AND SUSTAINABLE NEW CONSTRUCTION
Strategic target	Operationalised targets	Deadline
High level of customer satisfaction	Derive measures after conducting regular tenant surveys every two years Constantly further develop tenant dialogue formats (especially by expanding digital	continous continous
Portfolio meets good, up-to-date, future-proof quality criteria, thereby exceeding the industry standard	Investment programme in excess of EUR 1.2 billion to refurbish and modernise 30,000 residential units	2022
Create new housing in conurbations	Investment programme to create 2,500 residential units in line with widely accepted sustainability criteria	2022

3. RESPONSIBILITY FOR EMPLOYEES
Strategic target	Operationalised targets	Deadline
Targeted recruitment and integration of new employees	Implement a staff recommendation programme Set up various talent pools Expand active sourcing	2018
Keep employee retention levels high	Conduct regular employee surveys every two years Digitalise and optimise processes to boost job attractiveness Introduce a needs-based digital health management system Expand long-term incentive systems	2018
Adjust staff development to the requirements of the new working world	Strengthen executives in their changing role Expand digital learning and communication formats Broaden the range of traineeships and dual courses of study Offer at least 90% of trainees a permanent contract following successful completion of their training Support junior staff at the company via a talent programme	2018
Ensure there is no discrimination	Comply with Code of Conduct Appoint women to at least 40% of executive positions within the Deutsche Wohnen Group	continous

4. RESPONSIBILITY FOR THE ENVIRONMENT AND THE CLIMATE
Strategic target	Operationalised targets	Deadline
Save 20,000 t of CO₂emissions from 2022 onwards	Carry out the refurbishment and modernisation of 30,000 residential units with a view to energy conservation Replace outdated heat generation plants with modern systems Initiate a mass pilot project for the smart home solution actuator/sensor technology to enable intelligent building management for 3,000 residential units in Berlin Gradually reduce the portfolio of oil-fuelled properties to a maximum of 1%, switching to eco-friendly energy sources	2022 2020 2018 2021

5. RESPONSIBILITY TOWARDS SOCIETY
Strategic target	Operationalised targets	Deadline
Expand, continue and structure corporate social responsibility activities	Implement a guideline for social and cultural activities Draft a concept for taking issues of construction culture into account more strongly when completing new construction and modernisation projects Commit to supporting youth sport	2021 2019 2018
Promote a vibrant neighbourhood structure	Make 4–5% of new letting space available for social and charitable purposes Actively shape (small) commercial sites within the portfolio	continous continous

The assessment and prioritisation of objectives and goals was carried out in a workshop together with the Management Board and the relevant specialists and managers. The continuous collection of key figures and the setting of deadlines in the sustainability programme are intended to monitor the achievement of objectives.

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INPACS (Headquarters)

The recently adopted sustainability strategy (cf. criterion 1) is underpinned by the official framework of the United Nations Sustainable Development Goals.

In the course of a systematic democratic process with various high level member representatives that came together in the Strategic Working Committee Sustainability in 2019 (cf. criterion 5), six priorities were gradually pointed out as shown below:

Promotion of Equal Opportunities for all Genders in Leadership (SDG 5)

Raise status quo through a gender balance survey 2019
Conduct interviews with high performance INPACS members in order to identify enabling environments and best practices
Build a platform for best practice sharing (cf. criterion 15)

All Employees shall Feel Included and Respectfully Treated (SDG 10)

Conduct a global employee survey on a regular basis (cf. criterion 14 and 15)

Protect Labour Rights and Safe and Secure Working Environments within our Operations and along the Supply Chain (SDG 8)

Internally:

Monitoring of accident rates as well as labour and human rights performance of INPACS members using EcoVadis evaluations
Obligatory EcoVadis minimum achievement of silver recognition level 54/100 as of 2021
Local audit in case of constantly low performance

Along Supply Chain:

Sustainability risk analysis of INPACS suppliers using EcoVadis evaluations
Local factory audit of low performers

(cf. criterion 14 and 17)

Make a Contribution to the Reduction of Waste Generation; Create Awareness and Inform as well as Encourage all Relevant Actors along the Supply Chain from Product Selection to Disposal (SDG 12)

Create a Sustainability Program for our customers including a Sustainability Analysis and Reporting along the customers’ value chain
Develop a sustainable range – both with respect to own and other brands as well as sustainable concepts
Initiate a web-based interactive Sustainability Knowledge Platform (cf. criterion 10 and 12)

Significantly Reduce Greenhouse Gas Emissions on Local, National and International Level to Combat Climate Change and its Impacts (SDG 13)

Elaboration of GHG reports by INPACS head office and members
Definition of ambitious reduction action plans (cf. criterion 13)

Build Partnerships that Support our Engagement for the SDGs (SDG 17)

Build an active partnership programme with the UN
Build effective partnerships with the relevant stakeholders that help promoting transparency and sustainability awareness, anticipating respectively contributing to regulation and standards, building independent knowledge as well as improving our sustainability performance (cf. criterion 9)

Overall, SDG 8 and 12 received the most votes, because apparently these two are the biggest levers for creating sustainable impact within our business.

The INPACS sustainability department is responsible for regular reviewing and benchmarking the progress of the implementation of the strategic goals.

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Simon H. Steiner, Hopfen, GmbH

In a joint workshop in September 2020, the sustainability core team determined concrete goals and the associated medium- and long-term measures to achieve them. Assigning priority to these goals is derived directly from the materiality matrix.

Market area of action

Breeding own varieties

Goal	Measure(s)	By	Progress
1. Replacement of the general market varieties by our own varieties, selectively bred for resistance and drought stress tolerance.	1.1. Goal-focused, marker-assisted breeding of aroma and high-alpha varieties	2030	Two aroma varieties are already approved and introduced to the market.

Sustainable relationships with customers

Goal	Measure(s)	By	Progress
1. Building up trust, improved access to decision-makers, increased market share. Better information, better understanding of the market for customers.	1.2. Continual training of sales personnel	On-going	Regular sales personnel meetings, backed-up by individual coaching
	1.3. Benchmark through customer satisfaction surveys (every 10-15 years)	2025	Last customer satisfaction survey: 2015
	1.4. Expansion of digital consultant concept (use of video conferences, webinars, etc.)	On-going	Since 2020: Webinars and regular video conferences held

Digitalization

Goal	Measure(s)	By	Progress
1. Improved workflows, reduction of analog processes, optimum degree of complexity	1.1 Introduction of a document management system (DMS)	Mid-2021	Provider selected, implementation “in progress,” first departmental tests carried out
	1.2. Optimization of the inventory management system	On-going	Update to inventory management system 2020 / 2021, departmental process analysis performed
2. Modern, efficient communications with growers / suppliers and customers	2.1. Further development of the grower portal	On-going	Step 1 was completed in 2018. Introduction of digitally concluded contracts planned for the 1st half of 2021
	2.2. Setting up a customer portal	End 2021	Finalization planned for end 2021

Environment area of action

Energy savings

Goal	Measure(s)	By	Progress
1. Energy efficiency improvement	1.1. Replacement water storage tank for steam generator	2020	Installation complete, operational in October 2020
	1.2. Replacement of steam distribution pipework	End 2021	Some steam pipes replaced in 2020, further replacements in 2021
	1.3. Cooling tower energy optimization	End 2020	Mechanical installation done, optimization completed end 2020

Use of renewable energy

Goal	Measure(s)	By	Progress
1. Increased proportion of renewable energy	1.1. Extension of photovoltaic systems on operational building roofs	On-going	In operation. Further installations planned.

The appropriate department in the relevant division is responsible for monitoring and controlling the goals.

The goals are also checked by the CSR core team for the annual preparation and publishing of the Sustainability Code declaration.

The sustainability goals relate in particular to the following UN Sustainable Development Goals (SDG):

UN Sustainable Development Goals	Company goal topics
6. Clean water and sanitation	In-house wastewater treatment
7. Affordable and clean energy	Energy savings, use of renewable energy
12. Responsible consumption and production	Recyclable packaging (cans), environmentally compatible materials, resource conservation
13. Climate action	Energy savings, use of renewable energy
15. Life on land	Breeding own varieties, integrated crop protection

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Deutsche Wohnen SE

INPACS (Headquarters)

Simon H. Steiner, Hopfen, GmbH

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