10. Innovation and Product Management

The company discloses how innovations in products and services are enhanced through suitable processes which improve sustainability with respect to the company’s utilisation of resources and with regard to users. Likewise, a further statement is made with regard to if and how the current and future impact of the key products and services in the value chain and in the product life cycle are assessed.

At Deutsche Hypo the product range is updated continually. This is done among other things by monitoring the market intensively and taking into account customer needs. If new, innovative ideas or new target markets are identified, a comprehensive New Product Process (NPP) is started. Here sustainability considerations are also taken into account.

Generally, investment in and finance from real estate can be considered to be sustainable if the properties are in an attractive location, are of high quality and offer a stable rent cash flow. Such properties are easy to let and are therefore competitive in the long term. They will always find an occupier so that the resources are used optimally and permanently. This is helped by “green building” standards for property being established increasingly in the market. The “green building” work group was therefore set up in Deutsche Hypo. A corresponding policy on sustainable real estate financing was introduced at the end of 2015.

At the start of 2015 the Board of Managing Directors formed an Innovation Team that will focus on the Bank’s sustainability, whereby the sustainable development of the Bank, product range and customer relations plays an important part. Extensive measures have been identified to ensure that Deutsche Hypo consolidates and expands its good market position in the medium and long term. The implementation of numerous measures already got underway in 2015, with digitalisation serving as a particular focus at this time.