Letter from Senior Management

GRI 2-22

Dear readers,

The past year was a turbulent one with plenty of challenges – the war in Ukraine, the energy crisis, inflation and the repercussions of the pandemic. Even this difficult environment did not knock us off track, however. As a responsible real estate company, we want to keep providing answers to current and future challenges. In our view, the biggest of these is climate change, an issue we think poses risks but also presents opportunities and potential which we want to actively seize. We strive to provide transparent information about how we are facing up to this as well as on our sustainability activities as a whole. With this in mind, we are delighted to present our Sustainability Report 2022 to you. It is aimed at our stakeholders and all interested parties. Like last year’s, the current report is structured in line with the ESG aspects of sustainability (environment, social and governance).

We presented our sustainability strategy with its eight focus areas in the previous reporting year. In 2022, we linked these areas even more closely with the UN Sustainable Development Goals (SDGs) to which we can make the biggest contribution. In the “Environment” category, we are focusing on the revised BLUE BUILDING standard, which we use to guarantee sustainable construction that increases energy efficiency, enhances climate protection and promotes a circular economy. We are also further strengthening our commitment to biodiversity and have implemented a number of projects within our portfolio in connection with this. The use of renewable energy and a strategy for sustainable water usage are additional areas of focus within our activities.

In the “Social” category, Volkswagen Immobilien once again took on social responsibility by making the Global Inn hotel available to the city of Wolfsburg to accommodate refugees from the Ukraine conflict. As an attractive employer, we strive to keep offering our staff flexible working-hour models and make it possible for them to achieve a healthy work-life balance. Our activities here primarily included promoting mental health. We intend to maintain a sharp focus on this area in the future. We further strengthened our “Governance” role in the year under review, for example via extensive compliance and anti-corruption training, sustainable supplier management, and an open and honest dialog with our stakeholders. With the aid of our 2030 corporate strategy, we intend to keep growing and consolidate our position within the Group as a company with proven real estate expertise and a sustainable approach. Our sustainability management system ensures that taking responsibility for the environment and society is our number one priority with all measures and processes.

We have many more plans for 2023. For instance, we intend to drive reductions in emissions as this is a key environmental sustainability issue. Furthermore, we will define and pursue climate pathways in the commercial property sector. Digitalizing our portfolio is another focal area. In connection with this, we will roll out a pilot project for the use of smart meter technology at our commercial properties. In 2023, we intend to further expand our programs to promote employees’ physical and mental health in the workplace. We also want to launch new initiatives to intensify the open dialog between staff at all levels of the hierarchy.

We hope you enjoy reading our report. Stay safe.