Within the Management Board, the CEO is responsible for the topic of sustainability. Operational responsibility is held by Sustainability Management/CSR within the Strategy division. In 2018, we will also establish an interdisciplinary sustainability committee.

Within the Management Board, the CEO is responsible for the topic of sustainability. Operational responsibility is held by Sustainability Management/CSR within the Strategy division.
In 2018, we will also establish an interdisciplinary sustainability committee. Among other things, it is tasked with implementing and further developing the sustainability programme throughout the various units as well as further embed the sustainability strategy in the company. Operational responsibility for sustainability reporting and sustainability management lies within the CSR unit, which belongs to the strategy department.

Our strategic and operational objectives are defined in our sustainability programme (see Criterion 3, Objectives) and given deadlines for their achievement. 
As part of our sustainability reporting, Deutsche Wohnen records and discloses the relevant key figures it uses for monitoring and controlling with regard to the topics identified as material. The key figures are presented in year-on-year comparison. In addition to our key figures, we also apply the materiality principle to report on selected GRI indicators and the CRESD (Construction and Real Estate Sector Disclosures) sector-specific supplements for the real estate industry. The declaration of conformity with the Sustainability Code also reports on the specified GRI indicators as well as a selection of industry-specific supplements stipulated by the Federal Association of German Housing and Real Estate Companies (GdW).

A comprehensive overview of the key figures and our GRI content index can be found in our Sustainability Report 2017,  p. 69–90.

In our non-financial statement for 2017, we also selected a key indicator for various matters to report:

• Corruption cases (combating bribery and corruption)
• Average energy intensity (environmental concerns)
• Coverage degree performance reviews (employee issues)
• Tenant survey: satisfaction with the living situation (social issues)

The non-financial consolidated statement 2017 of Deutsche Wohnen SE can be found in the Annual Report 2017, p. 84.

Corporate governance stands for the management and control of companies in a way that is responsible and geared to creating value over the long term. The corporate governance and corporate culture of the Deutsche Wohnen Group comply with statutory requirements and – with one exception – the additional recommendations of the German Corporate Governance Code. The Management Board and Supervisory Board of Deutsche Wohnen SE feel obligated to pursue good corporate governance; all areas of business are orientated towards this purpose. Our focus is on values such as competence, transparency and sustainability.

German Corporate Governance Code and Code of Conduct
Deutsche Wohnen places great value on compliance with both legal provisions and the standards of the German Corporate Governance Code. Observing legal norms is primarily the responsibility of executives and the Compliance Officer. The latter is the central point of contact for all compliance matters. He/she informs the management, employees and business partners about relevant legal requirements and the consequences of breaching the regulations.  Our Code of Conduct, which prescribes and defines dealings which are in compliance with the law, applies to and is binding on all of the company’s employees. Every new employee receives and commits to following the guidelines upon commencing his/her employment with the company. 

Additional information on standards of behaviour can be found under Criterion 15, Equal Opportunities, and Criterion 20, Lawful and regulatory behaviour.

EUR 33.37 per sqm (see Annual Report 2017, p. 31)

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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). 

A graphical representation of the energy intensity of our residential units can be found in our Sustainability Report 2017, p. 50. 

^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. 

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Please note that inserted images/files are only used to supplement the reporting (text). The uploads themselves are not part of the check.

Please enter the relevant information in text form according to the Sustainable Code.

Please note that inserted images/files are only used to supplement the reporting (text). The uploads themselves are not part of the check.

Please enter the relevant information in text form according to the Sustainable Code.

Please note that inserted images/files are only used to supplement the reporting (text). The uploads themselves are not part of the check.

The system of remuneration for the Management Board is subject to regular consultations, review and revision in the plenary sessions of the Supervisory Board.

The Management Board contracts of Deutsche Wohnen SE contain fixed and variable remuneration components. The variable component for all members of the Management Board is adjusted to the requirements of section 87(1), sentence 3, of the German Stock Corporation Act. [AktG]. It is tied to the achievement of the company’s economic goals and is calculated primarily based on multiyear assessment criteria. The variable remuneration may only be claimed if there has been a correspondingly positive development in the company’s business. In this way, the compensation structure is aligned to sustainable corporate development and the incentive and risk effects of the variable remuneration are optimised.

The detailed Remuneration Report of Deutsche Wohnen SE for the financial year 2017 can be found on the company’s website under https://ir.deutsche-wohnen.com/websites/dewohnen/English/4600/remuneration-report.html

One of the goals contained in the sustainability programme is to establish long-term goals as a component of Management Board and executive remuneration by the end of 2019 (Criterion 3, Objectives).

The Management Board contracts of Deutsche Wohnen SE contain fixed and variable remuneration components. The variable component for all members of the Management Board is adjusted to the requirements of section 87(1), sentence 3, of the German Stock Corporation Act. [AktG]. It is tied to the achievement of the company’s economic goals and is calculated primarily based on multiyear assessment criteria. The variable remuneration may only be claimed if there has been a correspondingly positive development in the company’s business. In this way, the compensation structure is aligned to sustainable corporate development and the incentive and risk effects of the variable remuneration are optimised.

The detailed Remuneration Report of Deutsche Wohnen SE for the financial year 2017 can be found on the company’s website under  https://ir.deutsche-wohnen.com/websites/dewohnen/English/4600/remuneration-report.html

The remuneration of the Supervisory Board was established by the Annual General Meeting in clause 10(7) of the Articles of Association. Accordingly, the members of the Supervisory Board receive a fixed annual remuneration in the amount of EUR 75,000. The Chairman of the Supervisory Board receives three times the standard remuneration; the Deputy Chairman receives one-and-a-half times the standard remuneration. Each Supervisory Board member receives a lump-sum amount of remuneration of EUR 15,000 per financial year for his or her membership of the Audit Committee of the Supervisory Board, with the Chairman receiving twice this amount. Remuneration for membership of other Supervisory Board committees is paid in the amount of EUR 5,000 per member, committee and financial year, with the Chairman receiving double this amount in each case. The total amount of all remuneration paid to each member of the Supervisory Board, plus any remuneration paid for membership of Supervisory Board committees and comparable executive bodies of Group companies may not exceed EUR 300,000 (excluding VAT) per calendar year. Expenses are reimbursed. In addition, the company can, at its expense, include the members of the Supervisory Board in a D&O insurance policy for institutions and managers, and has done so. A deductible, payable by the members of the Supervisory Board, was agreed for this in accordance with the requirements of section 93(2) of the German Stock Corporation Act. (AktG) in conjunction with article 51 of Regulation (EC) No 2157/2001.
No performance-based remuneration is paid to members of the Supervisory Board. Details of the remuneration paid to the members of the Supervisory Board can be found in the Remuneration Report.

The detailed Remuneration Report of Deutsche Wohnen SE for the financial year 2017 can be found in the Annual Report 2017 on pages 72 to 79..

Additional information on the remuneration structure for our employees can be found under Criterion 15, Equal Opportunities.

Management Board remuneration is disclosed in Deutsche Wohnen SE’s comprehensive remuneration report, which can be accessed here. The performance indicator total annual remuneration ratio is not used for internal management purposes at Deutsche Wohnen SE. The data is therefore not currently recorded and disclosed in relation to an average employee remuneration figure.  

In our sustainability activities and measures, it is very important to us that we recognise challenges early on and always focus on material topics. However, we can only do this if we take the interests of our key stakeholders within society into account sufficiently and incorporate them into our actions.

To this end, in 2013 we carried out a stakeholder analysis and identified the following stakeholder groups and their requirements for the purpose of both planning our sustainability strategy and structuring our sustainability reporting: (prospective) clients (tenants and purchasers), (prospective) employees, investors and analysts (including rating agencies), business partners, policymakers and authorities, trade associations and the media. We maintain an active, wide-ranging dialogue with all of these groups, including during the reporting year.

Examples of our dialogue with stakeholders can be found in our Sustainability Report 2017, p. 19.

Key issues 

Stakeholder group	Key issues	Specific dialogue formats and frequency
(Prospective)clients (tenants/ purchasers)	Tenants: affordable housing,dialogue with tenants Purchasers: development ofresidential districts,building fabric, tenant sensitisation	Website, Service Points, Service Centre, newsletter, E-Service, brochures, neighbourhood parties, exhibitions, tenant information events and tenants’ offices for major modernisation work,tenant consultations, dialogue platform, personal meetings/ visits, tenant survey, discussions between tenants and policymakers, “ideal apartment” hotline
(Prospective) employees	Long-term economic stability,staff matters	Website, Intranet, brochures (for example about training), biannual employee surveys, annual performance review, year-end appraisal, focus group (quarterly), addresses by the Management Board on specific issues (usually twice-yearly), company summer party, exhibitions, quarterly employee newsletter “bruno”, welcome package and “welcome days” for new employees, conventions
Investors and analysts (including rating agencies)	Transparency and dialogue, sustainability strategy, long-term economic focus, attractiveness as an employer, holdings	Annual Report, quarterly reports, Sustainability Report, website, presentations, webcasts, ad hoc notifications, corporate news, Annual General Meeting, property tours, roadshows, (banking) conferences, attendance at trade fairs, teleconferences when annual and quarterly reports are published
Business partners	Long-term economic focus, sustainabilitystrategy, staff training	Website, Annual Report, Sustainability Report, attendance attrade fairs, invitations to tender
Policymakers and trade associations	Portfolio, affordable housing, dialogue with tenants, staff matters	Annual Report, Sustainability Report, website, discussion panels and expert forums, political initiatives and alliances, modernisation agreements with boroughs, one-to-one meetings
Media	Portfolio, affordable housing, dialogue with tenants, staff matters	Annual Report, Sustainability Report, corporate brochure, website, press releases and meetings, conferences, one-to-one meetings, teleconferences when annual and quarterly reports are published

 

Social and environmental effects
Living accommodation is of vital importance – there is no doubt about that. However, the shortage of affordable housing in metropolitan areas and conurbations is making it much harder to meet this fundamental need. That is why we are doing what needs to be done: building new, modern  apartments which provide attractive living conditions. Our new construction projects are based on widely recognised sustainability criteria which apply to the entire life cycle of a property.

The building sector accounts for approximately 40% of energy consumption and around 30% of national carbon dioxide emissions. It is to be “decarbonised” by 2050. With around 20 million rented units, the housing industry plays a key role in Germany’s climate policy. This is why 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.

Energy efficiency 
Choosing energy from eco-friendly sources is a major factor in lessening the climate impact of residential holdings. To enable us to act more independently, efficiently and profitably in this area, Deutsche Wohnen established the joint venture G+D with the energy supplier GETEC. In conjunction with G+D, we are increasing the energy efficiency of the power generation units at our properties and reducing both CO² emissions and energy costs at the same time. As of 31 December 2017, G+D already supplied energy to approximately 58% of the Deutsche Wohnen portfolio which is heated centrally. This proportion rose to around 75% on 1 January 2018.

Our joint venture G+D has now put ist fifth combined heat and power (CHP) plant – an eco-friendly alternative to conventional power stations – into operation. The latest CHP plant is in Marienfelde in southern Berlin and supplies energy and heat to a residential complex with around 900  units. The CHP plant in Imbrosweg has an electrical output of 902 kWel and a thermal output of 931 kWth. It is the largest combined heat and power plant to be operated at Deutsche Wohnen’s holdings to date. Fed with climate-friendly biogas, the CHP plant increases the Group’s production of green electricity from 9 GWh to approximately 12 GWh per annum. Putting it into use upped the rated electrical output of the power plant “fleet” to a total of 2,150 kW. The electricity produced is fed into the public grid in  return for payment. By using CHP plants at our properties, we are helping to make our energy supply more climate-friendly one step at a time. Going forward, we intend to further expand the  cecentralised energy supply to our holdings and produce more power ourselves.

Maintenance and modernisation 
The majority of our apartments were not built by us. As a result, there may still be materials in a small number of buildings which are considered harmful on exposure. Although the impacts on health and the environment are generally low, we replace these materials before they can come into contact with their surroundings. Whenever a tenancy changes hands, we routinely inspect our residential units for safety issues and health hazards. If any are found, they are immediately rectified. In doing so, we also reduce the risk of reputational damage for the company and compensation payments which could result from a potential accident involving hazardous substances.

The way in which hazardous building materials are dealt with is strictly regulated by guidelines and legislation. When replacing and disposing of asbestos and other hazardous waste, we comply closely with the Technical Rules for Hazardous Substances (Technischen Regeln für Gefahrstoffe – TRGS). We also substitute building materials containing asbestos or other harmful substances with suitable alternatives. Contaminated material is disposed of as per the regulations as a matter of course.

New construction 
We believe that sustainable building makes good sense both ecologically and economically. Because of this, our new construction projects take into account the German Assessment System for Sustainable Development (Bewertungssystem Nachhaltiges Bauen – BNB), the requirements of the German Sustainable Building Council (Deutsche Gesellschaft für Nachhaltiges Bauen – DGNB) and the guidance from Sustainable Housing (Nachhaltiger Wohnungsbau – NaWoh). When doing so, we consider the whole life cycle of a building, spanning everything from its conceptualisation, planning and realisation to the time when occupation commences. This includes placing a special focus on the use of non-hazardous, eco-friendly materials and sustainable energy, water and transport concepts.  Deutsche Wohnen’s new construction processes are accompanied by qualified service providers for sustainable building certification, who advise us, produce concepts and measurements for accreditation, coordinate the planning and building-related documentation, and incorporate requirements for sustainable materials into suppliers’ contracts. This is designed to ensure that all the products used evidence recognised health and environmental compatibility during their production, transportation, processing, use or disposal. Some of the building materials utilised are certified as per the Cradle to Cradle® concept, meaning they are compatible with a closed-loop system. All plots for new builds are carefully examined for any evidence of contamination and treated in accordance with the statutory requirements of the German Federal Soil Protection Act (Bundes-Bodenschutzgesetz – BBodSchG).

Examples of the strategy we apply for new construction projects can be found in our Sustainability Report 2017, p. 34 f.

All financial assets are subject to careful review. Investment in the property portfolio, for instance as part of maintenance or modernisation, is also reviewed with respect to environmental and social factors such as the building’s energetic profile. Acquisitions are assessed using comprehensive due diligence checks of numerous criteria and factors. These include environmental aspects and social factors like environmental/site contamination assessments, the buildings’ energetic profiles and tenant history.

Innovation in the multimedia sector 
Digital process control
As underlined by the tenant survey, high-quality services in the residential environment play an essential role in customer satisfaction. FACILITA oversees and checks the facility management services provided by external firms on site. In Berlin, some 230 employees manage our portfolio at 70 drop-in points. FACILITA is striving to fully digitise process control within quality management. It already uses various tools to this end which enable job processing and reporting via mobile devices. The firm is also constantly working to optimise the operation of ist apps and switch from smartphones to tablets so as to facilitate real-time information sharing and the use of new formats such as digital measurements or maps. These innovations go hand in hand with extensive training for staff.
The company’s aim is to establish itself as a quality leader in infrastructural facility management in the medium term. To achieve this, it intends to ensure that caretakers are present at all holdings in Berlin. In 2018, FACILITA plans to concentrate primarily on improvement measures and new solutions derived from the results of the tenant survey.

	Unit	2017
Reduction in energy consumption due to refurbishment and modernisation of the units	MWh	3,797.1