4. Depth of the Value Chain

The company states what significance aspects of sustainability have for added value and how deep in the value chain the sustainability criteria are verified.

Deutsche Hypo provides commercial real estate finance in its core markets of Germany, UK, France, Benelux and Poland. It is important to the Bank that its customers view their partnership as a partnership of equals. Deutsche Hypo is making an active contribution towards the real estate industry building a permanent and sustainable infrastructure. It is in keeping with how the Bank sees itself that it sets high quality standards in respect of financing and only enters into new business that promises to be successful. Sustainability considerations are taken into account in real estate risk assessments. If a property is planned in a sustainable manner, the risk of for example vacancy is reduced. So that its core business can remain sustainable, the Bank assesses exposures in its risk management taking into account economic, building law and environmental considerations. Together with the customer the best possible financing solution is then developed. Partly in order to quantify these sustainable considerations, the “Green Building” work group was set up in Deutsche Hypo. As at 31 December 2015, project developments planned for certification accounted for 36% of total commitments (previous year: 44%). This percentage is subject to a natural volatility because the number of project developments and affected property types can vary greatly from year to year.