d.i.i. benefits from years of experience in expanding ESG criteria

Sustainability and thus the application of ESG criteria are now more than ever of central importance for real estate companies as well as investors and will continue to gain further in relevance. The d.i.i. group has been taking an active approach of dealing with issues such as energy efficiency and dealing in a fair way with tenants for many years.

To this end, d.i.i. has given itself a social charter containing guidelines for compliance with social, ecological and sustainable obligations in the course of investing and managing residential real estate. With regards to the ESG disclosure regulation of the EU, which will come into force on March 10, 2021, the d.i.i. extends their previous activities in order to fulfill their responsibility with regard to the factors environmental, social and governance at every level.

  • In addition to the commitment to energy efficiency and CO2 neutrality in project developments and investment processes, d.i.i. above all focusses on the fair treatment of tenants. Besides transparent communication, sustainable development of the district and the renouncement of luxury modernizations, d.i.i. provides an actively operated ancillary cost management.
  • The successful ESG strategy of d.i.i. Group also includes the introduction of a code for responsible corporate governance and internationally recognized standards for due diligence towards employees as part of comprehensive compliance guidelines. Only in this way can sustainability be lived internally and externally at company level.

Value Chain

Note:

The interactive graphic shows our measures for sustainability along the value chain. You learn more about each segment by clicking on it.

Fund ManagementComplianceRisk ManagementFinance, Insurance, LiquidityFund PlanningBusiness ModelMarketResearchRequirementsAnalysisPropertyManagementPropertyDevelopmentAcquisitionsSalesControlling

Inclusion of sustainability risks in the investment process

Company level - current state

The Disclosure Regulation defines the key term “sustainability risk” as an event or a condition in the areas of environment, social affairs or company management, whose occurrence actually or potentially could have negative implications for the value of the investment. You can find our current strategy for the inclusion of sustainability risks in our company here:

 

  • Office location with convenient transport connections at WI central railway station

  • Co2-neutral power supply in the office

  • Currently 20% working time in the home office possible

  • JobTicket offer

  • Subsidisation of hybrid/e-cars/new drive technologies for company cars

  • Digitalisation strategy to promote paperless working and mobile working

  • Green electricity for employees at reasonable d.i.i. conditions

  • Continuous planting of all land that is acquired for dii funds and mandates

     

  • Compliance with central employment rights, e.g. non-discrimination requirement

  • High standards with occupational safety and health protection

  • Fair conditions at the workplace, flexible working hours, appropriate remuneration, as well as training and advanced training opportunities

  • Provision of trainee and/or training places each year

  • Corporate benefits programme

  • Increased holidays

  • Fund investment by the employees & occupational old-age pension scheme

  • Employee loans

  • Vitality days

  • Holiday programmes for children

  • Support of the “Bärenherz” hospice in Wiesbaden

     

  • Observance of sustainability issue at the management/Management Board and Supervisory Board level
  • The Compliance Policy is an integral part of every employment contract
  • Business partner compliance and code of conduct for business partners
  • “Zero-tolerance strategy” for compliance violations
  • Employee development programme
  • Promotion of female management staff across all management levels (management, head level, team leader level)
  • Promotion of heterogeneity (origin, gender, age) in teams

Company level - targets

You can find our targets below, which we intend to implement in the future in relation to the inclusion of sustainability risks in our company:

  • Co2-neutral power supply of offices

  • Increase of home office working hours from currently approx. 20% to 40% by 2023

  • Number of JobTickets to be increased by a minimum of 10 per year

  • By 2025, 30% of all company cars will be hybrid/e-cars/new drive technologies

  • Reduction of kilometres driven / petrol consumption

  • Annual reduction of the printouts per head by 5% per annum

  • Green electricity for employees at reasonable d.i.i. conditions (constantly increase the number of employees who switch)

     

  • Compliance with central employment rights, e.g. non-discrimination requirement

  • High standards with occupational safety and health protection

  • Fair conditions at the workplace, flexible working hours, appropriate remuneration, as well as training and advanced training opportunities

  • Provision of trainee and/or training places each year

  • Corporate benefits programme

  • Increased holidays

  • Fund investment by the employees & occupational old-age pension scheme

  • Employee loans for wealth creation

  • Vitality days

  • Holiday programmes for children

     

  • Observance of sustainability issue at the management/Management Board and Supervisory Board level
  • The Compliance Policy is an integral part of every employment contract
  • Business partner compliance and code of conduct for business partners
  • Assessment of the implementation of the dii ESG strategy and compliance rules of conduct in annual employee appraisals
  • Employee development programme
  • Increase of the proportion of female management staff by 2025 to 35% across all management levels (management, head level, team leader level)
  • Promotion of heterogeneity (origin, gender, age) in teams

Remuner ation Policy

Remuneration Policy of d.i.i. Investment GmbH

ESG

d.i.i. 15 and d.i.i. 41 – Special AIF

 

 

Investment process

Properties from the middle housing segment in Germany exclusively come into question as fund properties. Luxury properties do not fit into the investment spectrum of the fund. After a property has run through the investment process in which sustainability criteria are firmly anchored and were able to be acquired for the fund, the detailed planning begins of the investment expenditures and the decision regarding which measures should be implemented for the holding period of each property. The crucial parameters for sustainable capex planning are the living quality, the living space comfort and the living space and energy efficiency. 

As the energy requirement of each property is identified and analysed upon acquisition, the strategy at the property level is to achieve energetic modernisations or measures for improving the energy balance of the property at a maximum of 200 kWh/m2. We regard energetic measures as renovations and modernisations, which serve to reduce the energy consumption of a building. In order to achieve this goal, the property is first analysed comprehensively and structural defects and potential savings in consumption are determined. Therefore, older properties can be developed to reach the state of a new-build, within the meaning of the Energy-Saving Regulation. For example, these include efficient thermal insulation, the installation of modern thermal glazing, the modernisation of sanitary facilities and the use of heating systems that are technically up-to-date. Thereupon, an individual plan of measures is drawn up for each individual building, which even allows significantly better values than 200 kWh/m2 to be achieved for parts of the portfolio.

Additional measures aim to improve the living quality. Outside areas are designed in a friendly and inviting manner and are continuously managed. Wherever possible, the planting is expanded. A part of the strategy is to create additional living space wherever possible. If acquired plots of land allow the construction of new residential buildings or if properties can be enlarged, new living space, which is urgently needed, particularly in conurbations, is created through constant densification.

As the AIF primarily acquires rental properties, the dii Group has imposed a specific social charter, which regulates respectful and sustainable treatment of the tenants. In the social charter, the guidelines and principles are listed, which are intended to ensure compliance with social, ecological and sustainable obligations within the scope of investment and management of residential properties. These include enhanced eviction protection for older or physically impaired existing tenants, hardship provisions for low-income tenants, a lifelong living guarantee or the intention to continuously increase the proportion of accessible and age-appropriate homes through investments within the scope of vacant property redevelopments. Active incidental cost management, transparent communication, sustainable district development and the exclusion of luxury modernisations are also part of the social charter.