Second-Party Opinion Download

Sustainalytics is of the opinion that the Vonovia Green Bond Framework is credible and impactful and aligns to the four core components of the Green Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds − Green Buildings and Energy Efficiency, Renewable Energy, and Clean Transportation − are aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that investments in the eligible categories could increase the environmental performance and energy efficiency of Vonovia’s building stock and advance the UN Sustainable Development Goals, specifically SDGs 7, 9, and 11.

PROJECT EVALUATION/SELECTION

Vonovia’s internal process in evaluating and selecting projects is managed by its Green Finance Committee (“GFC”), which is chaired by the Head of Treasury and Finance and comprises representatives from the Finance Department, Sustainability Department, and Portfolio Management. The GFC will meet semi-annually to ensure that allocation is in line with the eligibility criteria. Sustainalytics considers the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Vonovia’s Finance department will be responsible for earmarking proceeds from the green bonds to the established Green Project Register and track this process in accordance with internal systems. Vonovia intends to reach full allocation within 24 months after issuance. Should any proceeds remain unallocated, they will be held in Vonovia’s liquidity portfolio in cash, cash equivalents, or other similar instruments. Sustainalytics considers this as in line with market practice.

REPORTING

Vonovia intends to report on the allocation of proceeds on its website on an annual basis until full allocation. The allocation reporting will include details such as amount of outstanding green funding, total allocation to the Eligible Green Register, the proportion of financing vs refinancing, geographical distribution, project examples, and balance of unallocated amounts. In addition, Vonovia is committed to reporting on relevant impact metrics. Sustainalytics views Vonovia’s allocation and impact reporting as aligned with market practice.