DIC’s ESG Roadmap

We manage our business proactively in line with sustainability aspects by our experienced management. In our ESG roadmap – which we keep expanding – we focus both on near-term and medium-term goals to implement our ESG strategy.

Targets and KPIs

Subject Target KPI Status
Funds from Operations (FFO) Continuous increase of FFO FFO compared to previous year FFO 2022 +27% compared to 2021, and +41% compared to 2020
Green financing instruments Increase in the share of green financing instruments by 2027 to around 40–50% Overall share of green instruments on the financing side as a proportion of the balance sheet total 20%
ESG ratings Maintain or improve performance in relevant ESG ratings ESG rating results Improvement in the following relevant ratings:
Sustainalytics: from 26.8 to 9.2 (12 April 2022)
Carbon Disclosure Project (CDP – Climate Change): from D to C (31 December 2021)
MSCI – ESG Research: from BBB to A (31 December 2021)
ISS ESG: from D to D+ (31 December 2021)
Compliance Prevent misconduct on continued basis using appropriate measures Number of reported compliance violations as well as measures taken 0 reported compliance violations; 0 measures taken
Compliance Prevent misconduct on continued basis using appropriate measures Number of training hours: employees incl. Management Board members No status as there is a new target
Subject Target KPI Status
Energy & Emissions Establish a science-based climate pathway for our German business by 2023 or earlier Climate pathway No status as there is a new target
Energy & Emissions Cutting greenhouse gas emissions per square metre for its Commercial Portfolio by 2030 by at least 40% compared to the 2018 base year. Δ t CO₂e/sqm Commercial Portfolio in % – 21%
Energy & Emissions Further develop the supply/purchase of renewable energy Percentage of renewable energy in the communal-area electricity supply for the company’s office locations owned by DIC Asset AG itself, and for the tenant electricity in the company’s rented office spaces 100% renewable energy for the company’s office locations owned by DIC Asset AG itself, and 73% for the tenant electricity in the company’s rented office spaces.
Energy & Emissionsn Further develop the supply/purchase of renewable energy Number of buildings supplied with district heating or green gas (Commercial Portfolio) 44 of 94 properties (percentage of rental space in sqm: 45.4%)
Energy & Emissions Further develop the supply/purchase of renewable energy Number of buildings supplied with green electricity (Commercial Portfolio) 57 of 71 multi tenant properties (80%)
Green Buildings Increase in the share of Green Buildings in the Commercial Portfolio to at least 20% by the end of 2023 (Commercial Portfolio) (i) market value of Green Buildings; (i) compared to the Commercial Portfolio market value 11.6 %
Subject Target KPI Status
Balanced employee structure Maintain current level of male/female quotas at senior management level below Mgmt Board Number of employees by gender category (m/f/d) below Mgmt Board level 52% women
48% men 1
Balanced employee structure Maintain current age structure Number of employees by age category 15% ≤ 30 years;
64,7% 31–50 years;
20,3% ≥ 51 years
Gender ratio Increase in the proportion of women at the top executive level by 30 June 2022 to 15.38% (2/13). Overall proportion of women at top executive level (excluding branch executives) Completed, target achieved 2
Gender ratio Maintain or increase current level of women at executive level Overall proportion of women at executive level (including branch executives) 26%
Gender ratio Maintain or increase current level of women at non-executive level Overall proportion of women employees 52%
Gender ratio Increase in the proportion of women on the Management Board by 30 June 2022 to 25% (1/4) Overall proportion of women on the Management Board Completed, target achieved
Gender ratio Increase in the proportion of women on the Supervisory Board by 30 June 2022 to 16.66% (1/6) Overall proportion of women on the Supervisory Board 0 %3

¹ At present, DIC Asset AG does not collect any information on the ‘diverse’ gender category.
² As a listed company without co-determination, DIC Asset AG is also legally obliged to set targets for the proportion of women on the
Supervisory Board, on the Management Board and, where applicable, in the two executive levels below the Management Board.
³ Dr Angela Geerling was elected as a new Supervisory Board member at the Annual General Meeting that took place on 24 March 2022.

Selected Milestones

0
%

of the Commercial Portfolio by market value are Green Buildings

Green building certifications according to

DGNB
BREEAM
LEED

Green-Building- Zertifizierungen

ESG Ratings

DIC Asset AG counts among the sustainability leaders in the international real estate industry

  • Sustainalytics: improved from 26.8 to 9.2 (12 April 2022)
  • Carbon Disclosure Project (CDP – Climate Change): improved from D to C (31 December 2021)
  • MSCI – ESG Research: improved from BBB to A (31 December 2021)
  • ISS ESG: improved from D to D+ (31 December 2021)

Engagement

On 19 November 2021, 22 employees headed to the Ahr Valley to spend the day helping those in need who were hit by the flooding disaster. The DIC team’s task was to help clean out a former hotel that was badly affected by the catastrophic flooding in Germany.

By clearing all remaining debris and furniture as well as plaster and tiles from the building, DIC employees made a direct and practical contribution to the hotel’s reconstruction.

NB-DIV-shadow

Social Impact Day

DIC Green Bond Framework

Green Finance

Taking New Approaches
ESG-Linked Promissory Note

With the issuance of an ESG-linked promissory note, we are once again engaging in a pioneering effort within our industry.

By linking the interest rates to reliably measurable sustainability metrics , we define concrete guidelines for our investment and refurbishment activities. Our objective is to raise our green building ratio in our own portfolio (Commercial Portfolio) to at least 20% by the end of 2023.

Clearing this mark will bring down the interest rate for subsequent interest rate periods by 5 basis points.

A positive contribution to climate change mitigation will simultaneously lower our finance expense – clearly a win-win arrangement.

Interest rate effects of the green building ratio

green finance
  • Issuance volume of EUR 250 million

  • Annual average interest rate of 1.78%

  • Average maturity 4.2 years

  • Review of the ratio in the years 2023, 2026 and 2029
  • If the green building ratio rises above 20%, the interest rate for the subsequent interest rate period will decline by 5 basis points