Our environmental and climate strategy

Achieving our climate goals is one of the key challenges for the years ahead, notwithstanding the coronavirus pandemic. The need to limit global warming to well below two degrees Celsius by radically reducing carbon emissions represents a dilemma for society, business and politics.
Both the EU and Germany’s federal government set ambitious targets, took statutory measures and presented appropriate plans in order to implement the Paris Agreement. The federal government intends to lower greenhouse gas emissions by 80 to 95 % in comparison to 1990 by 2050. According to the Climate Action Programme adopted in 2019, a carbon reduction of 55 % is targeted to have already been achieved by 2030. In the Green New Deal, the European Union set the target of being the first continent to become climate‑neutral by 2050 and of emitting at least 60 % less carbon by 2030.

Our climate strategy

As a leading company in the residential property sector we are aware of our particular responsibility to protect the climate. We want to use our knowledge and our energy to find innovative solutions for achieving the political objectives. Thus, we have set ourselves the target of making our property portfolio climate‑neutral by 2040. At the beginning of 2021 we published our climate action strategy for a climate‑neutral portfolio, and will define a corresponding package of measures with quantifiable, science‑based milestones. This strategy will be based on analyses covering both the effects of climate change on Deutsche Wohnen’s property portfolio and the ecological impact of our own activities as a company.

Task Force on Climate-related Financial Dislcosures (TCFD)

From now on we will follow the TCFD recommendations to analyse the impact of both climate change and of the changing social and political environment on our company. With this as a starting point, we will use scientifically well‑founded, scenario‑based analyses to examine the financial effects and the resilience of our business model. The results of these analyses will be regularly factored into the evaluation of our business strategy and our climate action strategy.

Non‑financial risks and opportunities

In the reporting year, we identified the non‑financial risks and opportunities associated with our material topics by means of an inside‑out assessment. Climate change is one of the most important. We plan to use impact analyses to investigate the climate‑related effects of our commercial activities and our business relationships, along with the resulting opportunities and risks.
To ensure that we are able to meet the regulatory requirements of the EU Taxonomy Regulation in future, we will also disclose for 2021 the percentage of our revenues, investment and operating expenses that is related to ecologically sustainable economic activities. The results of all these analyses will also be incorporated into the business strategy going forward and updated regularly.

Our carbon footprint reporting

All the analyses and strategic decisions are based on our carbon footprint reporting, which was updated in the reporting year, and presents Scope 1, 2 and 3 emissions transparently.

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