The company discloses the extent to which natural resources are used for the company’s business activities. Possible options here are materials, the input and output of water, soil, waste, energy, land and biodiversity as well as emissions for the life cycles of products and services.

Energy, water and waste management
Approximately 40% of global greenhouse gas emissions today are attributable to the energy consumption of buildings. According to a study by the World Green Building Council, the gross internal floor area of buildings will double by 2060. In Germany, around 40% of the final energy consumption total and about 30% of carbon emissions are generated by buildings and their residents. As part of our procurement strategy, which has proved successful over many years, we purchase certified electricity from renewable sources. We sourced approximately 90% of the communal electricity (used for entrance and hallway lighting and for technical equipment) for our residential and commercial units let as of 31 December 2017 from hydroelectric power. Compared with the conventional electricity mix – where renewables usually account for 30% – we were able to save 17,365 t of CO_² equivalents in the reporting year (2016: 17,555 t of CO_² equivalents). Additionally, we produce our own electricity with our 52 photovoltaic systems and five combined heat and power (CHP) plants. We fed 12,708 MWh into the public grid in the year under review.

The consumption of energy and water at let units depends largely on our tenants’ behaviour as users. Our customers enter into their own contracts with suppliers for electricity and gas. Deutsche Wohnen is obligated to procure water from the relevant municipal water companies. Deutsche Wohnen only has two means of influencing resource usage here. Firstly, we can pave the way for efficient energy and resource consumption by optimising energy generation and distribution systems, procuring green power and implementing other energy conservation measures. Secondly, we try to raise our tenants’ awareness of ecological issues. Thus, we hope to motivate residents to conserve resources by issuing statements of costs on the basis of their actual consumption of the resources in question (heating and hot/cold water). When completing more complex modernisation work, we facilitate this by installing additional heat cost allocators and hot or cold water meters. In 2017, we recorded water consumption of approximately 8 million litres for our Berlin holdings, which make up about 71% of our whole portfolio. This marked a reduction of around 6% compared with the previous year. Viewed in relation to the floor area of our holdings, consumption figures are also low at 1.24 l/sqm.

We cannot directly influence our tenants’ behaviour with regard to the volume of waste produced either. However, we improve our holdings’ environmental friendliness by systematically sorting through the waste in rubbish and recycling bins. This allows us to adjust the number of rubbish and recycling bins to actual needs and lower wasterelated operating costs for our tenants accordingly. In the reporting year, we thereby reduced the total volume of waste produced at our holdings by some 12 million litres compared with 2016 to 917 million litres.

We constantly take steps to conserve resources and reduce waste at our administrative locations. To further minimise paper in day-to-day office work, we will make greater use of digital documents and virtual document management in the future while printing less. The slight increase in paper usage of 1.8 t is attributable to the larger workforce in the year under review. Nevertheless, we were able to decrease paper waste by 8.5 t. We ensure that drinking water is used carefully. However, as office work does not require much water, we do not view water usage at our administrative locations as material. We have already taken steps to reduce consumption in the past by installing low-flush toilets and energy-saving dishwashers.

Materials
Deutsche Wohnen uses materials in three ways: for major projects such as the refurbishment and modernisation of apartments, for smaller projects involving ongoing maintenance and tenancy turnover, and for new construction work. The majority of building materials we use are industrially manufactured products and substances, all of which are tested to DIN standards.
We are fully aware that all the materials we use have effects on the environment – be it when raw materials are sourced, during the manufacturing process or when they are disposed of. To avoid negative impacts to the greatest possible extent, we take ecological and health-related criteria into account when we make purchasing decisions. Since sustainable materials are usually more expensive, this decision has a direct impact on our operating result.

First and foremost, we influence the choice of materials by means of concrete stipulations as projects are generally completed by subcontractors. We demand compliance with Germany’s comprehensive legislation and regulations for health and environmentalprotection. Especially when constructing new buildings, we pay particular attention to adopting an integrated and sustainable planning approach which involves the use of natural and environmentally friendly construction materials.

We also ensure that building biology criteria are strictly observed. This includes, for instance, the use of non-hazardous construction materials, the creation of a healthy indoor environment, a high quality of indoor ambient air, window frames made of wood or network circuit breakers for the avoidance of electro smog. We invest in the ecological sustainability of our new builds as well. Some of the building supplies we use are certified as per the Cradle to Cradle® concept, meaning they are part of a closed-loop system whereby materials are completely reused. Due to environmental considerations, we avoid Styrofoam insulation whenever possible and use cellulose or mineral wool instead.

12. Resource Management

The company discloses what qualitative and quantitative goals it has set itself with regard to its resource efficiency, in particular its use of renewables, the increase in raw material productivity and the reduction in the usage of ecosystem services, which measures and strategies it is pursuing to this end, how these are or will be achieved, and where it sees there to be risks.

Portfolio
Deutsche Wohnen is focusing on the use of renewable energy and on improving the energy efficiency of its holdings. When implementing these measures, it is important to take into account the interdependence between economic, ecological and social aspects.

A building’s environmental footprint depends on urban development factors, architecture, the materials used, connection to city infrastructure and the manner in which it is used by its residents. Within our company, tenants’ behaviour as users is responsible for the majority of our environmental impacts. We have little influence here because we cannot directly shape our tenants’ behaviour. However, we do make a contribution by constantly modernising our holdings and ensuring that the fabric of our new builds with eco-friendly materials meets the highest possible quality standards.

Within our Group, we have defined responsibilities for all environmental matters. DWB is responsible for aspects including energy and waste management and for the refurbishment of heat generation plants. DWI oversees the disposal of hazardous waste in the case of tenant turnover, ongoing maintenance, health- and safety-related issues, and technical building systems. Investments in assets such as technical equipment fall within the remit of DWB. Deutsche Wohnen does not use a formal environmental management system based on standards such as ISO 14001 or EMAS at its administrative locations. At present, we do not believe this would be proportionate in terms of the cost-benefit ratio for our locations. However, we have established systematic energy management for our holdings.

Administration
For our administrative buildings, we can make our own decisions about where the energy comes from and how it is generated. We always choose environmentally friendly options. At the same time, we focus on conserving natural resources within our own processes.

Since 2012, we have been meeting most of our own electricity requirements at our administrative locations with certified renewable energy from hydroelectric power. This enabled us to save 540 t of CO₂ equivalents in 2017. In connection with the legally required energy audit as per DIN EN 16247-1, Deutsche Wohnen collected extensive data, which it verified by means of site visits. We were able to use the results of the data analysis to identify potential energy savings and at the same time derive means of optimising the energy flows at the company.

Electric mobility and charging infrastructure
Our subsidiary FACILITA is a pioneer in electric mobility: the Berlin-based facility service provider is currently switching its fleet to electric vehicles and e-bikes. The changeover – including charging stations – is due to be completed by the end of 2018, reducing carbon emissions to zero.

As early as December 2016, the company set up a total of eleven charging stations at four Berlin sites in Pankow, Reinickendorf, Spandau and Steglitz with the support of the energy company Vattenfall. Another 21 charging points are planned and are due to be installed by summer 2018. Most of the fleet already consists of electric vehicles as well. In 2017, there were 16 electric vehicles and just 15 cars with combustion engines. Of the latter, four are merely being leased until the charging infrastructure has been completed. The fleet now also includes 17 electric bikes and 52 pedal cycles. In the first year alone, they covered approximately 10,000 km on pedal cycles and around 10,000 km using electric bikes. Using electric vehicles – be they cars or bikes – saves 21 g of CO₂ per 100 km. At the same time as reducing greenhouse gases, they promote the use of renewable energies.

We are actively reducing the environmental impact of our existing buildings by making lasting investments in energy-efficient refurbishment. Furthermore, we are modernising our technical systems with a view to making energy management at our properties more and more efficient. And this is proving to be a success – the energy footprint of about three quarters of our residential units is already better than the average consumption of residential buildings in Germany. In short, we are on the right track when it comes to reducing CO₂ and protecting the climate.
At our holdings, water, effluents and waste are primarily issues for our tenants which we can only influence to a very limited extent. For this reason, we focus on the aspects of energy and emissions, where there is more that we can do. We have set ourselves the strategic target of reducing CO₂emissions by 20,000 tonnes a year from 2022 onwards.

The strategic and operational goals for the “Responsibility for the environment and the climate” area of action can be found under Criterion 3, Objectives. The strategic goal of reducing carbon emissions by 20,000 tonnes annually from 2022 together with the operationalised objectives for goal achievement was set in 2018. Going forward we will be measuring and reporting on goal achievement progress on an ongoing basis.

Key Performance Indicators to criteria 11 to 12

Key Performance Indicator GRI SRS-301-1: Materials used
The reporting organization shall report the following information:

a. Total weight or volume of materials that are used to produce and package the organization’s primary products and services during the reporting period, by:
i. non-renewable materials used;
ii. renewable materials used.

Materials used by weight or volume
Material	Unit	2016	2017
Screed	t	178	209
Styrofoam	m³	1,000	700
Mineral wool	m³	13,600	8,250
Cellulose blown-in insulation	m³	21,200	5,800
Paper	t	51	53

Key Performance Indicator GRI SRS-302-1: Energy consumption
The reporting organization shall report the following information:

a. Total fuel consumption within the organization from non-renewable sources, in joules or multiples, and including fuel types used.

b. Total fuel consumption within the organization from renewable sources, in joules or multiples, and including fuel types used.

c. In joules, watt-hours or multiples, the total:
i. electricity consumption
ii. heating consumption
iii. cooling consumption
iv. steam consumption

d. In joules, watt-hours or multiples, the total:
i. electricity sold
ii. heating sold
iii. cooling sold
iv. steam sold

e. Total energy consumption within the organization, in joules or multiples.

f. Standards, methodologies, assumptions, and/or calculation tools used.

g. Source of the conversion factors used.

Energy consumption of the portfolio in MWh
Type of energy	Usage	2016	2017
Natural gas	Heating	521,648	535,338
Petroleum	Heating	36,926	37,768
Pellets	Heating	8,412	8,419
District heating	Heating	589,419	618,952
Electricity	Lightning and electrical equipment	33,313	32,948
Energy sold generated from photovoltaics		-985	-688
Total		1,188,733	1,232,737

Key Performance Indicator GRI SRS-302-4: Reduction of energy consumption
The reporting organization shall report the following information:

a. Amount of reductions in energy consumption achieved as a direct result of conservation and efficiency initiatives, in joules or multiples.

b. Types of energy included in the reductions; whether fuel, electricity, heating, cooling, steam, or all.

c. Basis for calculating reductions in energy consumption, such as base year or baseline, including the rationale for choosing it.

d. Standards, methodologies, assumptions, and/or calculation tools used.

Reduction in the energy consumption and climate emissions of the administrativelocations based on efficiency and savings measures¹⁾
Measure	Unit	2016	2017
Annual savings due to conversion to LED	MWh	2.6	2.6
Annual avoided emissions due toconversion to LED	t CO₂e	1.4	1.4
Emissions avoided because of certified green electricity from hydroelectric power	t CO₂e	514	540

¹⁾The artworks in the exhibition spaces are now illuminated with LED. The resultant energy savings and avoided climate emissions could not be determined.

Reduction in the energy consumption and climate emissions of the portfoliobased on efficiency and savings measures²⁾
Measure		Einheit	2017
Reduction in energy consumption due to refurbishment andmodernisation of the units		MWh	3,797.1
Annual avoided emissions due toconversion to LED	t CO₂e		915
Climate emissions avoided due to certified green electricity from hydroelectric power	t CO₂e		17,365

²⁾The derived climate emission volumes were calculated using a factor of 241 g/kWh for natural gas (emission factor of the Institut Wohnen und Umwelt [IWU]).

Key Performance Indicator GRI SRS-303-3: Water withdrawal
The reporting organization shall report the following information:

a. Total water withdrawal from all areas in megaliters, and a breakdown of this total by the following sources, if applicable:
i. Surface water;
ii. Groundwater;
iii. Seawater;
iv. Produced water;
v. Third-party water.

b. Total water withdrawal from all areas with water stress in megaliters, and a breakdown of this total by the following sources, if applicable:
i. Surface water;
ii. Groundwater;
iii. Seawater;
iv. Produced water;
v. Third-party water, and a breakdown of this total by the withdrawal sources listed in i-iv.

c. A breakdown of total water withdrawal from each of the sources listed in Disclosures 303-3-a and 303-3-b in megaliters by the following categories:
i. Freshwater (≤1,000 mg/L Total Dissolved Solids);
ii. Other water (>1,000 mg/L Total Dissolved Solids).

d. Any contextual information necessary to understand how the data have been compiled, such as any standards, methodologies, and assumptions used.

Water consumption and water intensity, portfolio ¹⁾
	Einheit	2016	2017
Water consumption	m³	8,453,625	7,929,615
Water consumption per sqm of residential and commercial area	m³	1.33	1.24
Residential and commercial area included	sqm	6,377,279	6,394,399
Units included	number	106,908	106,318

¹⁾ The data here relates to our Berlin portfolio, which accounted for around 71% of our portfolio as a whole in 2017. The data is taken from our main water meters. These record both the individual tenants’ consumption levels, which account for the majority of total consumption, and general water consumption in the communal areas as well as for sprinkler systems. There are no sub-meters for the individual spaces in part of our portfolio. It is therefore not currently possible to provide separate data for water consumption in the communal areas, which account for only a very small proportion (around 1%) of the total area.

Key Performance Indicator GRI SRS-306-3: Waste generated
The reporting organization shall report the following information:

a. Total weight of waste generated in metric tons, and a breakdown of this total by composition of the waste.

b. Contextual information necessary to understand the data and how the data has been compiled.

Non-hazardous waste attributable to administrative activities in tonnes by method of disposal ¹⁾
Method of disposal	Waste category	Unit	2016	2017
Recycling	Paper	in t	85.1	76.6

¹⁾Paper waste levels are recorded for the administrative locations. Further data relating to non-hazardous types of waste is not relevant in view of the administrative activities and can also not be reliably quantified.

13. Climate-Relevant Emissions

The company discloses the GHG emissions in accordance with the Greenhouse Gas (GHG) Protocol or standards based on it and states the goals it has set itself to reduce emissions, as well as its results thus far.

Energy efficiency and reduction of emissions
Deutsche Wohnen’s energy management activities for its portfolio and new construction projects are currently taking a two-pronged approach – with an unerring focus on greenhouse gas emissions. Firstly, we supply our properties with environmentally friendly power. We use renewable energy and supply three quarters of our existing residential units with heat or fuel from our joint venture G+D. Secondly, we are investing heavily in the energy efficiency of our apartments and facilities. We have been paying particular attention to the energy efficiency of our properties for a number of years. In terms of energy consumption, approximately 74.5% of our units already perform better than the average residential property in Germany (160 kWh/sqm per annum).^a) Some 27% of our units use less than 100 kWh/sqm per annum (A+ to C). The average consumption of our holdings stands at 133.4 kWh/sqm per annum, having fallen again slightly as compared to the previous year (2016: 135.1 kWh/sqm per annum).

In addition, we collect data on the absolute consumption of heating energy and electricity at our holdings and calculate the corresponding carbon emissions. We view these in relation to the gross internal floor area and check efficiency.

The listed units are also included in these figures. Due to the legal requirements in place, it is impossible to improve the energy efficiency of listed properties to the same extent as that of non-listed buildings by means of modernisation work. Furthermore, the figures for 2016 and 2017 are only comparable to a limited extent because they draw on absolute consumption data based on reference values that vary slightly due to the different invoicing periods used by suppliers. In relation to our total portfolio as of 31 December 2017, the heating energy consumption was calculated for around 85% of the portfolio, while electricity usage was determined for some 89%.^b) As we did not undertake any new construction work in the year under review, no consumption was recorded in this area.

We have initiated an extensive investment programme for the maintenance, refurbishment and modernisation of our property holdings with a view to energy conservation. By 2022, we will invest more than EUR 1.2 billion in insulating facades, basement ceilings and roofs, improving the standard of fixtures in our residential units, replacing windows or making them more energy-efficient, renewing heat generation plants and utilising regenerative or efficient means of energy generation. In doing so, we will meet the requirements of the German Federal Emission Control Act (Bundes-Immissionsschutzgesetz – BImSchG) and the Energy Saving Ordinance (Energieeinsparverordnung - EnEV).

With our investments in comprehensive modernisation work within our portfolio, we have refurbished a total of around 3,000 residential units in the past three years (2015–2017) with a view to energy conservation. As a result, final energy requirements have improved by an average of approximately 35% to 103 kWh/sqm per annum, which corresponds to annual energy savings of approximately 8.2 million kWh or 2,000 t of CO₂. In 2017, a number of holdings in Berlin, Hanover, Braunschweig, Dresden and Mainz benefited from our refurbishment work with a view to energy conservation. Some of these projects had to comply with heritage protection regulations. The work included improving insulation, fitting double-glazed windows and repairing facades, for instance. We also modernised kitchens and bathrooms and added balconies.

Detailed information on climate-relevant emissions and the basis of calculation can be found in the following performance indicators reported for Criterion 13.

^a) The Energy Performance Certificate: Specifications for Residential Buildings (Der Energieausweis: Steckbrief für Wohngebäude), https://www.verbraucherzentrale.de/Der-Energieausweis-Steckbrief-fuer-Wohngebaeude-4, accessed on: 20 April 2018. Average figures take account of energy requirements for heating and generation of hot water. No energy performance certificate is required for approximately 30,000 units which are listed.
^b) In addition to the absolute consumption figures, we published further data, including like-for-like key figures on the energy usage of the portfolio and our administrative locations, as part of our reporting in accordance with the EPRA Best Practices Recommendations on Sustainability Reporting (EPRA sBPR) in July 2018.

Key Performance Indicators to criteria 13

Key Performance Indicator GRI SRS-305-1: Direct (Scope 1) GHG emissions
The reporting organization shall report the following information:

a. Gross direct (Scope 1) GHG emissions in metric tons of CO2 equivalent.

b. Gases included in the calculation; whether CO₂, CH₄, N₂O, HFCs, PFCs, SF₆, NF₃ or all.

c. Biogenic CO2 emissions in metric tons of CO2 equivalent.

d. Base year for the calculation, if applicable, including:
i. the rationale for choosing it;
ii. emissions in the base year;
iii. the context for any significant changes in emissions that triggered recalculations of base year emissions.

e. Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source.

f. Consolidation approach for emissions; whether equity share, financial control, or operational control.

g. Standards, methodologies, assumptions, and/or calculation tools used.

Scope 1: Direct greenhouse gas emissions in tonnes of CO₂ equivalents
	Spezifikation	Einheit	2016	2017
Administrative locations¹⁾	Emissions from fossil fuels (petrol, diesel, natural gas, petroleum)	t CO₂e	446	520
Administrative locations¹⁾	Emissions from biogenic sources (pellets)	t CO₂e	0.06	0.06
Portfolio²⁾	Emissions from fossil fuels (natural gas, petroleum)	t CO₂e	137,275	140,838
Portfolio²⁾	Emissions from biogenic sources (pellets)	t CO₂e	151	152

¹⁾ The values represent the direct climate emissions (Scope 1) based on the energy consumption values for the administrative locations adjusted to reflect weather conditions. The Scope 1 value is calculated using the emission factors of the Institute for Living and the Environment (Institut Wohnen und Umwelt – IWU) and the emission factor for the German electricity mix of the German Environment Agency (UBA) (527 g CO₂e/kWh).

²⁾ The values represent the direct climate emissions (Scope 1) based on the portfolio’s energy consumption. The Scope 1 value is calculated using the emission factors of the Institute for Living and the Environment (Institut Wohnen und Umwelt – IWU) and the emission factor for the German electricity mix of the German Environment Agency (UBA) (527 g CO₂e/kWh).

Key Performance Indicator GRI SRS-305-2: Energy indirect (Scope 2) GHG emissions
The reporting organization shall report the following information:

a. Gross location-based energy indirect (Scope 2) GHG emissions in metric tons of CO2 equivalent.

b. If applicable, gross market-based energy indirect (Scope 2) GHG emissions in metric tons of CO2 equivalent.

c. If available, the gases included in the calculation; whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all.

d. Base year for the calculation, if applicable, including:
i. the rationale for choosing it;
ii. emissions in the base year;
iii. the context for any significant changes in emissions that triggered recalculations of base year emissions.

e. Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source.

f. Consolidation approach for emissions; whether equity share, financial control, or operational control.

g. Standards, methodologies, assumptions, and/or calculation tools used.

Scope 2: Energy indirect greenhouse gas emissions in tonnes of CO₂ equivalents
	Spezifikation	Einheit	2016	2017
Administrative locations¹⁾	Emissions from electricity and district heating (location-based)	t CO₂e	1,301	1,356
Administrative locations¹⁾	Emissions from electricity and district heating (market-based)	t CO₂e	787	815
Portfolio²⁾	Emissions from electricity and district heating (location-based)	t CO₂e	191,435	199,954
Portfolio²⁾	Emissions from electricity and district heating (market-based)	t CO₂e	175,634	184,327

¹⁾ The values represent the energy indirect climate emissions (Scope 2) based on the energy consumption values for the administrative locations adjusted to reflect weather conditions. The location-based Scope 2 value was calculated using the emission factors of the Institute for Living and the Environment (Institut Wohnen und Umwelt – IWU) and the emission factor for the German electricity mix of the German Environment Agency (UBA) (527 g CO₂e/kWh). The market-based Scope 2 value is presented in order to illustrate the positive effects on the climate of sourcing certified green electricity. This value is made up as follows: emissions from district heating; 10% electricity emissions based on electricity mix factor for Germany (527 g CO₂e/kWh) and 90% emissions based on green electricity factor (0 g CO₂e/kWh).

²⁾ The values represent energy indirect climate emissions (Scope 2) based on the portfolio’s energy consumption. The location-based Scope 2 value was calculated using the emission factors of the Institute for Living and the Environment (Institut Wohnen und Umwelt – IWU) and the emission factor for the German electricity mix of the German Environment Agency (UBA) (527 g CO₂e/kWh). The market-based Scope 2 value is presented in order to illustrate the positive effects on the climate of sourcing certified green electricity. This value is made up as follows: emissions from district heating; 10% electricity emissions based on electricity mix factor for Germany (527 g CO₂e/kWh) and 90% emissions based on green electricity factor (0 g CO₂e/kWh).

Key Performance Indicator GRI SRS-305-3: Other indirect (Scope 3) GHG emissions
The reporting organization shall report the following information:

a. Gross other indirect (Scope 3) GHG emissions in metric tons of CO2 equivalent.

b. If available, the gases included in the calculation; whether CO₂, CH₄, N₂O, HFCs, PFCs, SF₆, NF₃, or all.

c. Biogenic CO2 emissions in metric tons of CO2 equivalent.

d. Other indirect (Scope 3) GHG emissions categories and activities included in the calculation.

e. Base year for the calculation, if applicable, including:
i. the rationale for choosing it;
ii. emissions in the base year;
iii. the context for any significant changes in emissions that triggered recalculations of base year emissions.

f. Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source.

g. Standards, methodologies, assumptions, and/or calculation tools used.

Other indirect greenhouse gas emissions (scope 3) are generated, for example, by heat consumption of our tenants. We do not record this consumption, however, as the time investment required is disproportionately high, we therefore cannot derive any corresponding emissions volume.

Key Performance Indicator GRI SRS-305-5: Reduction of GHG emissions
The reporting organization shall report the following information:

a. GHG emissions reduced as a direct result of reduction initiatives, in metric tons of CO2 equivalent.

b. Gases included in the calculation; whether CO₂, CH₄, N₂O, HFCs, PFCs, SF₆, NF₃, or all.

c. Base year or baseline, including the rationale for choosing it.

d. Scopes in which reductions took place; whether direct (Scope 1), energy indirect (Scope 2), and/or other indirect (Scope 3).

e. Standards, methodologies, assumptions, and/or calculation tools used.

We report the corresponding key figures together with the disclosures on reducing energy consumption (GRI 302-4) in the performance indicators for Criteria 11 and 12.

11. Usage of Natural Resources en

12. Resource Management en

Key Performance Indicators to criteria 11 to 12 en

13. Climate-Relevant Emissions en

Key Performance Indicators to criteria 13 en