Non-Financial Report /// 2018 · key group managers involved in the matters addressed in this report participated in this process, specifically the member of the Management Board

Non-Financial Report /// 2018

/// CONTENT

ABOUT THIS REPORT 4

BUSINESS MODEL 5

COMPLIANCE 7

EMPLOYEES 11

SOCIAL MATTERS/TENANT MATTERS 16

ENVIRONMENTAL MATTERS 21

ADLER intends to provide a home for its tenants – with a safe and healthy living environment, affordable rents and effective communication.

Petra Kunda, responsible for tenant and social services in Wilhelmshaven

2 ADLER REAL ESTATE /// N O N - F I N A N C I A L R E P O R T 2018

/// PREFACE

Ladies and Gentlemen,

This non-financial group report is the second report of its kind and is intended to inform you about our activities and progress in various areas of our company that are not cov-ered by financial reporting. We are now also obliged by law to publish non-financial information for the first time due to the size of our company. We are happy to fulfil this obligation as we see transparency and communication as important elements of modern and responsible company management. The real estate sector ensures that people in Germany have a roof over their heads. At the same time, it is an important branch of industry and a major employer. The activities of the sector influence the appearance of cities and communi-ties. The sector competently helps to shape policy with re-gard to all housing-related issues. Real estate companies like ADLER Real Estate AG together with its subsidiaries assume social responsibility through these activities – corporate social responsibility.

We are acting in a field of conflicting priorities and diverging interests. Our various stakeholders all have their own needs and many of them are non-financial in nature. Tenants value affordable living space, but it also needs to be of a high

quality and offer a high standard of living. Our employees want fairly remunerated positions, but they also need to be secure and embedded in a corporate culture in which they can develop their potential. Suppliers and contractors are looking for a reliable business partner who pays invoices on time, but who also complies with environmental and social standards. And our investors, both shareholders and outside lenders, increasingly want to know whether their money is being invested sustainably by us in line with their financial expectations. We want to measure up to these expectations and have incorporated them into our own strategy.

In 2018, we conducted a materiality analysis for the first time with support from an auditor in accordance with the CSR Guidelines Implementation Act. We came to the conclu-sion that employee matters, social matters, environmental matters and anti-corruption are the key fields of action for us. This report is therefore intended to inform you of the measures we are taking and our progress in these fields of action – with the aim of presenting the facts and circum-stances we determined over the course of the materiality analysis transparently, objectively and verifiably.

Best regards

Tomas de Vargas Machuca Maximilian Rienecker Sven-Christian FrankCo-CEO Co-CEO COO

3ADLER REAL ESTATE /// N O N - F I N A N C I A L R E P O R T 2018

/// M I S S I O N S TAT E M E N T/// P R E FAC E

/// ABOUT THIS REPORT

With this Group Management Report, ADLER Real Estate AG is fulfilling its obligation to disclose non-financial infor-mation for the 2018 financial year as stipulated in the German Commercial Code section 315b, para. 1. The non- financial report gives stakeholders and the public insights into the company’s business model, the organisation of the group and how it perceives its social responsibility.

ADLER for the first time performed a materiality analysis with support from an auditing company in 2018. All of the key group managers involved in the matters addressed in this report participated in this process, specifically the member of the Management Board of ADLER Real Estate responsible for operational activities, the managing directors of the op-erational group companies and the heads of central depart-ments. Over the course of the analysis, they examined the aspects defined by law with regard to the ADLER group re-lating to employees, society, the environment, human rights and anti-corruption. Four topics, which are key for ADLER, were derived from this analysis:

• Compliancemanagement• Employeematters• Socialmatters• Environmentalmatters

Content which was deemed important for understanding business performance, business results, the situation of the company and the effects of ADLER’s business activities on the above-mentioned aspects was created for each topic area.

The reporting period is the calendar year 2018. The state-ments and figures for the same period as the financial state-ment therefore apply. The information relates either to the entire year or to the reporting date of 31 December 2018. The report is published annually and applies to the entire ADLER Group, i.e. it covers all subsidiaries which are con-solidated in the financial statement. Brack Capital Properties N.V., which was acquired with a majority share in April 2018, is, however, not yet included in the report from the past financial year 2018 - unless stated otherwise.

The Supervisory Board has checked the content of the report. The committee has commissioned Ebner Stolz GmbH & Co. KG, Wirtschaftsprüfungsgesellschaft, Steuerberatungsgesellschaft, Hamburg to perform an audit with limited assurance. The basis for this was the audit standard (PS) 821 of the German Institute of Public Auditors (IDW) in relation to the princi-ples of proper auditing or an audit review of reports in the field of sustainability.

The key financial indicators which are used for internal con-trol and further development of the company are described in the annual report. The non-financial indicators set out here do not have a controlling effect and are therefore not control-relevant as per DRS 20 (German Accounting Stand-ards).

When drafting the report, ADLER used the reporting criteria for sustainability reports for the European Public Real Estate Association (EPRA).

For the sole reason of making the document easier to read, this report does not specify both genders to avoid repetition. Instead, a generic term or job title is used. Even where the male form is used, this can refer to people of any gender.


/// A B O U T T H I S R E P O R T

as at 31.12.2018

Rental units

18,767 Lower Saxony

1,515 Bremen

1,899 Schleswig-Holstein

3,625Brandenburg

1,699 Berlin

1,508 Mecklenburg-Pomerania

4,053 Saxony-Anhalt

1,966 Thuringia

10,609Saxony

15,325 North Rhine Westphalia

30.3 %

Other units1,0441.7 %

24.7 %

17.1 %

2.7 %

2.4 %

2.4 %

3.1 %

3.2 %

5.9 %

6.5 %

Total Portfolio: 62,010 Rental Units

/// BUSINESS MODEL

After discontinuing its trading activities in the fourth quar-ter of 2017, ADLER Real Estate AG is now concentrating on the rental sector (investment properties) with the portfolio being monitored and optimized continuously. Additions will come through acquisition of portfolios, the takeover of

shares in companies or in connection with own development projects. Operating activities are undertaken at the com-pany’s head office in Berlin, at the second administration site in Hamburg as well as the operational company loca-tions in Chemnitz, Helmstedt, Leipzig, Oberhausen and


/// B U S I N E S S M O D E L

Development projects

Wilhelmshaven. By letting out its property portfolio, ADLER is aiming to generate long-term gross rental income that covers all letting-related expenses.

This business is naturally geared towards sustainability, as the lifetime of real estate is measured in decades rather than days or months and to keep properties attractive and mar-ketable, regular investment in maintenance, renovation and modernisation is an essential part of the business model. Since incidental costs constitute a substantial portion of overall expenses for tenants, properties become more attrac-tive when the incidental costs are low. As an owner, ADLER therefore has an incentive to take various measures to ensure energy efficiency, thereby keeping incidental costs as low as

Grafenberg (Zauberberg)

Gerresheim (Glasmacherviertel)

Grafental II

Grafental I Wasserstadt Mitte Schönefeld

Düsseldorf Berlin

Tuchmacherviertel

Aachen

Trachau

Dresden

E X P E N S E S F O R M A I N T E N A N C E A N D M O D E R N I S AT I O N i n E U R m

2015

MaintenanceModernisation

2016

80

70

60

50

40

30

20

10

0

2017 2018

16.8

27.550.8

22.8

32.9

22.5

11.0

21.1

32.1

44.4

55.4

73.6


/// B U S I N E S S M O D E L

possible. This, too, is rooted in the business model. As well as simply maintaining its portfolio, ADLER will also expand it in the future through project developments, stock densifi-cation or loft conversions in existing buildings. The number of current development projects has notably increased with the acquisition of BCP. This acquisition means ADLER is au-tomatically investing in modern, energy-efficient housing. Stock densification and loft conversions are other ways to expand the portfolio while economising on space.ADLER’s property portfolio predominantly consists of resi-dential units in “B” locations and on the outskirts of large

conurbations. When the opportunity arises, ADLER also invests in “A” locations in medium-sized cities. The apart-ments in ADLER’s portfolio have an average size of around 60 square metres and two or three rooms. At the end of 2018, the average monthly rent amounted to EUR 5.49 per square metre and month in the ADLER group including BCP. This puts ADLER in the market segment of “affordable” housing focusing on people with medium to low incomes, including numerous recipients of transfer payments. This target group is offered decent living quality at appropriate market rents.

/// COMPLIANCE

The ADLER Group’s corporate activity does not only adhere to the applicable legal provisions, it also aligns with ethical principles and internal guidelines. The company also endeav-ours to comply with the relevant standards when it comes to service providers and suppliers. ADLER is certain that a corporate policy with a strict focus on laws and regulations will serve the long-term interests of the company. The aim is therefore to ensure compliance with these regulations – with regard towards third parties in order to be a reliable busi-ness partner and towards employees in order to create a work environment based on integrity, respect and fairness. Anti-corruption, supplier management and data protection are all key compliance topics and as such ADLER has a compliance management system, which takes on a central role in this context.

Compliance management system

Compliance is advantageous for ADLER in a number of dif-ferent ways. As an example, compliance with regulations and laws protects the company and its stakeholders against financial damages and damage to their reputations while it can also help companies to avoid grievances or – if grievances already exist – it can help to expose them. This simultane-ously helps to optimise processes and create a positive and trusting work environment.

In order to achieve these effects, ADLER has introduced a compliance management system. This should strengthen the compliance culture in the company and effectively coun-teract risks. The compliance management system is part of the group-wide risk management system. Its regular quar-terly reporting cycle is also subject to continuous assessment

of any compliance risks that have been identified in a risk assessment. Risk assessment takes place continuously in or-der to immediately account for changing conditions in the company.

Compliance organisation

The central element of the compliance organisation is the compliance department. It comprises a compliance officer


/// B U S I N E S S M O D E L / CO M P L I A N C E

and two other employees. Management staff are also part of the organisation and are available as the first point of contact for any questions or suggestions their employees may have on the topic of compliance. In addition to this, ADLER is supported by an external service provider on all matters relating to compliance. Among other tasks, this provider is responsible for case-specific and routine audits. The report-ing channel for compliance issues leads from the compliance department to the Management Board, and from there to the Supervisory Board.

Guidelines, training and information material are drafted in close consultation with the Management Board and require its approval. The Management Board will also often initiate compliance measures in addition to the compliance depart-ment regularly conducting an evaluation of the documents relating to these measures.

Code of Conduct

Back in 2015, ADLER stipulated the company’s definition of integrity in a binding, company-wide Code of Conduct (CoC). The CoC is the central element of the compliance culture at ADLER. It applies to its own employees as well as to suppli-ers and service providers, provided it can be legally enforced within the scope of the General Terms and Conditions of Business. ADLER has incorporated the CoC into the General Terms and Conditions of Business as well as in other areas.

Employees of the group need to abide by the provisions that have been set out in writing in the CoC. ADLER is carrying out training among other measures to make sure

employees are aware of these provisions. The CoC is also attached to the employment contract for new hires and needs to be signed by new employees. In 2019, the company will also be launching digital training documentation, which contains an obligatory self-test for all employees. Further-more, enforcement of compliance provisions is supported by routine audits conducted on a rolling basis in line with a multi-year plan.

Compliance card

The compliance card contains a summary of all the key in-formation an employee needs to know about compliance outlined in a A4 two-page leaflet. It highlights key risks and provides recommended actions, including how to deal with gifts and invitations. Employees receive the compliance card when they start working at ADLER and they will also find it displayed in poster form at designated locations in the com-pany. Questions and concerns on the topic of compliance can be sent to the compliance department via email.

Whistle-blower system

ADLER gives its employees the opportunity to report poten-tial compliance violations anonymously. The company estab-lished a whistle-blower system in 2018, which guarantees anonymity of the whistle-blower and ensures that the infor-mation is dealt with systematically and quickly.

Memberships

ADLER is a member of various organisations that aim to in-corporate compliant behaviour into companies. This includes the Deutsches Institut für Compliance e. V. (German Institute for Compliance) and the Institute for Corporate Governance in the German real estate sector. ADLER hopes to gain valu-able ideas for its own compliance work through its member-ships.

Anti-corruption

Companies that tolerate corrupt behaviour in their bodies or from their employees face massive sanctions and risk losing their good reputation. Corruption cases can even ultimately threaten the economic existence of a company. Against this backdrop, anti-corruption is one of the key compliance areas at ADLER and assumes a correspondingly impor-tant role in the compliance management system. ADLER is aiming to prevent corrupt behaviour from the outset with information and prevention measures.

/// CO M P L I A N C E

Management’s approach

The Code of Conduct acts as the basis for all attempts to pre-vent corruption. It applies across the group to all employees and informs them of the consequences of corruption, brib-ery and accepting advantages. The employment contracts also contain relevant clauses. For example, it defines the value limit for gifts. The employer must be informed if this limit is exceeded which is one of the purposes of the whistle-blower system. In addition to this, ADLER has prepared an anti-corruption and gift policy in 2018 which has been in-troduced in 2019 and contains specific provisions in order to prevent corruption.

If it becomes apparent that an employee has not abided by the CoC, ADLER’s first step is to initiate internal investiga-tions. If suspicions are confirmed, the employee must face the disciplinary consequences according to the severity of the misconduct. They may also be criminally charged if the incident is a matter of criminal law.

In order to prevent corruption, the Management Board and managing directors of the group companies are keen to pro-mote fair and respectful interaction across all hierarchical levels. This is supported by the belief that employees who feel as though they belong and are respected are less inclined to take improper advantage for themselves at the expense of the company or to damage the company through illegal or non-compliant behaviour.

Measures and results

All employees have signed to confirm that they have read and understood the CoC. They have all also been given the com-pliance card or the information has been brought to their at-tention through the posters displayed in easily visible areas in the company. In order to prevent corruption, ADLER also per-forms case-specific and routine compliance audits and makes use of the auditing service provided by an external expert. Dur-ing the reporting period, no compliance violations or inciden- ces of corrupt behaviour were brought to ADLER’s attention.

Data protection

Regulations with regard to data protection and data security are an inherent part of compliance. Without appropriate rules, it is not possible to work securely in an increasingly digitalised world. The General Data Protection Regulation (GDPR), which came into force across Europe on 25 May 2018 has made this topic even more pertinent.

As a housing company, ADLER mainly collects and stores data on prospective tenants and existing tenants. Real estate management software is used for this. The company also saves data on applicants and employees as part of the initiation and completion process for employment relation-ships. In addition to this, it also holds personal data on capi-tal market participants who want to be informed by ADLER about major business events. It is part of the company’s strategy to guarantee data protection and data security. In doing so, ADLER abides by legal requirements and imple-ments the provisions of GDPR across the group.


The data protection organisation at ADLER essentially con-sists of an external data protection officer as well as two of its own employees who chiefly focus on this area. They are supported by the personnel of an IT service provider who are specially trained in data protection. Current data protection issues are discussed and dealt with at regular meetings. Dia-logues about this topic are also initiated with the different departments where appropriate. The participants of the reg-ular meetings include the data protection officer, the compli-ance officer, employees who are tasked with data protection issues and an external service provider who supports ADLER in dealing with risks and compliance.

The Management Board regularly gets involved with data protection matters. This is regularly the case before the pub-lication of important guidelines and instructions, for exam-ple. The data protection officer is responsible for evaluating the data protection measures that have been introduced at ADLER and for suggesting any potential changes. In addi-tion to this, an auditing company has been assigned the task of reviewing the entire structure established for data protec-tion. This inspection will involve ensuring that data protec-tion at ADLER meets all current requirements.




• InformationsheetsonGDPRingeneralandonparticularissues

• Regular employee training led by the data protection officer

• Specificinstructionsforparticularissues

• Contractual obligation of employees to adhere to the provisions of GDPR

• Provisionoftrainingmaterials

• Draftingofrelevantguidelines

• Introductionofadataprotectioncard,similartoacompli-ance card

• ProvisionofFAQsintheintranet

During the reporting period, no cases of intentional non-compliance with the provisions of GDPR were recorded. The importance of data protection is accepted across the company, despite the extra effort associated with it.

Supplier management

ADLER intends to cooperate with suppliers and service pro-viders only, if they comply, as ADLER does itself, with ap-plicable laws, other regulations and conventions as well as ethical principles. Therefore, ADLER incorporates its own General Terms and Conditions of Business into the contracts it concludes as far as possible. These contracts also include the company’s Code of Conduct, which ADLER has commit-ted itself to.


ADLER formulated its General Terms and Conditions of Business (GTC) for the first time in 2017 and made them the basis for all its business relationships. These terms and con-ditions also refer to the CoC. If business partners enter into a contractual relationship with ADLER by signing these, they are also obligated to comply with the guidelines in the CoC. By doing this, the company wants to ensure that its business partners feel equally obliged to behave in an ethically correct and law-abiding manner as ADLER itself.

The central purchasing department at ADLER selects suppli-ers and service providers as part of its procurement man-agement tasks. In doing so, it not only takes into account economic aspects, such as the price and quality of the prod-ucts and services on offer, but also the quality of the provider with regard to the issues discussed here under social respon-sibility. This is why, before it enters into a contractual rela-tionship, it assesses the contractual partner, provided this is possible with the available information. For example, it will refer to credit agencies. In addition to this, suppliers with a certified quality and environmental management sys-tem are preferred. Suppliers who repeatedly violate environ-mental standards or the German law on posting of workers will not be considered during the selection process.


It may be the case that suppliers do not agree to the GTCs, and therefore the CoC. In such cases, the legal department examines the GTCs of the supplier and decides whether a business relationship can materialise on this basis.

The majority of suppliers for ADLER offer products or ser-vices related to building, renovating or modernising proper-ties, meaning they primarily come from the building sector. ADLER has the goal of ensuring that 80 percent of the com-panies that it concludes new contracts with in 2019 accept the GTCs.



/// EMPLOYEES

On the reporting date of 31 December 2018, a total of 828 employees were employed by the ADLER Group. Out of these employees, 146 worked in the group environment of Brack Capital Properties N.V. (BCP), for which ADLER holds a share of approx. 70 percent. The number of employees has risen continuously over recent years. One reason for this is the decision to internalise and take over property and facility management, which was previously outsourced.

ADLER aims to fill the various positions within the company with dedicated, qualified and motivated employees. The com-pany’s attractiveness as an employer plays a crucial role in this. For ADLER, this involves creating hierarchies that are as flat as possible, a fair remuneration and opportunities for personal development and specialist further training. How-ever, the corporate culture also plays a major role. The com-pany is striving to create an environment in which all em-ployees are happy to work.

Staff policy

The Management Board is ultimately responsible for all staff policy matters. As part of this process, it coordinates with the managing directors of the operational group companies. The human resources (HR) department supports the Man-agement Board by providing information on market devel-opment, jurisdiction or developments and trends in human resources. HR also offers suggestions for introducing or im-plementing measures relating to staff policy or strategy. The central HR department is supported by employees in the re-gions who are entrusted with personnel management tasks. This applies in particular to ADLER Gebäude Service GmbH as it has evolved from an independent unit that was taken over as part of an acquisition. The human resources depart-ment provides the Management Board with relevant key figures in a monthly report.

Core elements of the corporate culture

ADLER’s corporate culture is based on open interaction across all hierarchical levels and a goal-oriented, direct and committed work ethic. Its most important aspects include:

• Independentworking: At the end of 2018, 258 employees were entrusted with

property management tasks; 339 employees worked in fa-cility management. That is almost 90 percent of staff, not including BCP. Because the completion of these tasks re-quires physical proximity to the housing stock in question, these business areas are decentralised. In order for this

organisational structure to succeed, a high degree of indi-vidual accountability is required – from both the regional managers on site and their employees. However, the same also applies to the central administrative departments that are based in Berlin and Hamburg. In order for employees to be able to complete their tasks as independently as pos-sible, ADLER empowers them to work on their own initia-tive and to further develop their skills.

• Employeerecruitmentandretention: ADLER not only wants to recruit qualified and committed

employees, it also wants them to stay with the company in the long term. A performance-oriented corporate cul-ture with a focus on the social concerns of employees is essential in order to achieve this. A corporate culture such as this must include competitive remuneration. As well as an adequate salary, employees also receive benefits such as healthcare services.

• Strongemployerbrand: With the aim of retaining employees in the long term,

ADLER launched an employer branding project togeth-er with an external service provider in 2018. As part of this project, measures are to be developed that will make ADLER an even more attractive employer and promote its existing strengths. This project also involves an employee survey. Its goal is to systematically discover different as-pects of employee satisfaction for the first time.

• Clearrulesandcross-hierarchicalcommunication: The corporate culture at ADLER is based on mutual respect

and clear principles that are set out in writing and that promote openness and reliable communication. ADLER expects all employees to adhere to legal provisions and internal regulations, such as the Code of Conduct or the relevant compliance guidelines. This is essential to facili-tate smooth operational processes and productive interac-tion. However, communication is not just “top down”. The company places high value on cross-hierarchy exchange between managers and employees. The reason for this is the belief that employees who are given opportunities to competently and confidently contribute their knowledge and viewpoints on professional issues significantly con-tribute to the success of the company.


/// E M P LOY E E S

Employee satisfaction

Satisfied, dedicated and qualified employees are the most important contributor to ADLER’s success. Their expecta-tions and needs are therefore a priority for the company. Fair remuneration, diversity and equal opportunities, op-portunities for training and continuing education, as well as protection of employee rights are among the most important aspects in this regard. Employees are only prepared to spend a significant proportion of their career at the company and to obtain further qualifications if ADLER gives all of these issues fair consideration. A high level of employee satisfaction is a crucial factor in keeping staff turnover rates low. A low staff turnover rate prevents valuable knowledge from being lost and reduces the risk of constantly not being able to fill vacant positions. In addition, it helps to convince new applicants that ADLER is a good place to work.

Due to the importance of this matter, the Management Board is involved in or initiates all measures related to em-ployee satisfaction. This includes the “Employer Branding” project, which the Management Board set in motion. After assessing the final results, the Management Board, the man-aging directors of the individual group companies and the HR department will determine the subsequent measures and introduce them.

The HR department sees itself as a service provider within the group and endeavours to provide employees and man-agers with the best possible advice and support on employ-ment-related issues in a timely, comprehensive and legally compliant manner. Even though it is necessary to stay objec-tive and neutral in these matters, empathy is an important trait for working in HR.

Fair remuneration

There is a skills shortage in many sectors in Germany. ADLER also has to compete for qualified employees. An adequate re-muneration helps to retain skilled employees and to win over new ones. But, in addition to this, ADLER also wants to re-ward good performance appropriately. The aim is to establish fair pay structures and to continuously optimise them with regard to employee recruitment and retention.


Everyone involved in making decisions about remunerat-ing employees has the necessary skills to do so and endeav-ours to uphold the interests of the company and the em-ployees, taking into account changing market conditions. For ADLER, permanent and long-term employment con-tracts are part of fair remuneration. Newly hired employ-ees generally receive an open-ended contract with the usual arrangements for a probationary period. ADLER only concludes fixed-term contracts at the express request of the

Promoting young talent is an essential part of the HR policy. This is why ADLER is aiming to offer one to two train-ing placements in every operating subsidiary.

Tobias Habenicht, completed his training as property manager with ADLER


employee and to fill gaps in personnel resulting from paren-tal leave or extended periods of illness.

Decisions about the general level of remuneration and the pay structure are made by the Management Board on the ba-sis of a benchmark analysis. It does this in close consultation with the managing directors of the group companies.


During the reporting period, ADLER launched a project to evaluate competitive pay structures. As part of this, positions need to be assessed as objectively as possible with measur-able criteria so that they can be compared. This will then be used as the basis for adjustments to the salary structure. In order to settle on fair salaries, ADLER also consulted studies and benchmarks and conducted market observations.

ADLER has been working towards becoming an integrated real estate group that provides all tenant-related services from a single source since 2016. This has involved signifi-cantly developing property and facility management in par-ticular. The result has been a corresponding influx of staff – from just under 250 employees at the end of 2015 to more than 800 at the end of 2018. In a phase of such change, stat-ing staff turnover rates is of little practical use.

Diversity and equal opportunities

ADLER is mindful of diversity. Discrimination due to sex, age, ideology, origin, physical disability, sexual orientation or other factors of diversity is not tolerated. This is an im-portant aspect in the compamy and applies with regard to both tenants and employees. ADLER highly values equal op-portunities.

ADLER has set itself the goal of continuing to maintain diversity within the company in the future.


ADLER welcomes diversity and promotes impartial and re-spectful interaction. This approach is a matter of course for the company. This is particularly true in light of the relevant regulations, such as the German General Equal Treatment Act, which contain similar stipulations. In its Code of Con-duct, ADLER has set out that discrimination, bullying or harassment of any kind in the workplace will not be toler-ated. The compliance card that is given to all employees when they join the company also contains the same information.

Provided that they have the required professional qualifi-cations for an advertised position, the company grants the same opportunities to all applicants. Managers share the perception that diverse teams are more successful and value a good mixture of people. An evaluation of this is not taking place.


ADLER uses preventive measures to ensure there is no breeding ground for discrimination and marginalisation at the company. This includes, for example, an appropriate cor-porate culture. The “tone at the top” plays an important role in this – the management’s position on diversity and equal opportunities and how it is discussed.

In 2018, ADLER employed 290 women and 392 men. This equates to a proportion of women of approx. 43 percent. This structure is not in place due to a particular policy of prefer-ence, but because significantly more men than women tend to apply for the mainly manual jobs in facility management.The ratio of male to female staff is more balanced in the cen-tral functions, which mainly involve office work. (EPRA 5.1) In management position the share of female employees was 25 percent (24 male, 8 female).

The age structure ist balanced. ADLER intends to profit as well from dynamic young employees with new ideas as from the professional experience of senior staff.

The age structure in percent of total employees was as follows:Among the managerial staff, the proportion of women is 25 percent (24 men, 8 women).

The age structure in the workforce is balanced. This is because ADLER wants to benefit from dynamism and new ideas as well as professional experience and seniority.

2018 2017

up to 30 12,4 12,6

30 to 39 23,9 25,9

40 to 49 23,0 23,5

50 to 59 30,0 29,6

60 and older 10,7 8,4

Training and continuing education

Qualified, committed and performance-oriented employees are a crucial competitive advantage. Providing training and continuing education opportunities also increases the attrac-tiveness of the employer and helps to retain high-performing employees in the company in the long term.

With its development into an integrated real estate group, the topic of training at ADLER has become more important


/// E M P LOY E E S

over recent years. As the number of employees has increased, so too has the necessity to encourage young people to work at ADLER at an early stage in their careers with training op-portunities. The company has set itself the goal of arranging one to two training placements at every operational site as well as developing a viable continuing education concept.Management’s approach

Young talent is mainly nurtured through vocational train-ing. ADLER mainly provides training in professions that are specific to real estate, such as real estate agents. As well as training placements, the company also offers positions for students as part of a dual training course. If it is possible and practical, trainees are then offered jobs in the company once they have graduated. In addition, ADLER offers students the opportunity to complete an internship lasting several weeks, which enables them to gain an insight into the company pro-cesses.

As part of its continuing education measures, ADLER en-courages employees to learn new skills and to build on their existing knowledge. Examples of this include training to use certain computer programs or to build comprehension of new technological developments. As a general rule, train-ing requests from employees are approached by the company with an open mind. This is because an investment in further employee training is also an investment in employee satis-faction and ultimately the success of the company. Regular advanced training courses in sensitive areas such as compli-ance, data protection or other relevant legal areas are also standard.

The managing directors and regional managers of the opera-tional companies coordinate training and continuing educa-tion as part of their regular meetings.


Outside of the reporting period, in February 2019, ADLER started working with an external training provider. This joint project should result in improved internal further training at ADLER, primarily in the operational area.

In 2018, ADLER had seven trainees working in the real estate and office management areas of the company. (EPRA 5.3 – derived from) The expenses for further training which comprised mainly seminars of different sorts were around EUR 50,000 during the reporting period.

Protection of employee rights

Employers are first and foremost legally required to protect employee rights. If they do not, they risk severe penalties and damaging their reputation. Conversely, strictly uphold-ing these rights is an opportunity to gain a reputation as a credible employer in the labour market and to attract new qualified employees. For ADLER, upholding employee rights is an inherent part of its HR policy. The same applies to the German Works Con-stitution Act, wherever it is valid in the group. The company receives regular well-founded advice relating to employment law. This is standard for ADLER.


According to the Code of Conduct, ADLER is obligated to observe applicable laws and other relevant regulations in Germany and abroad. This also includes all laws that govern employee rights. Wherever the Works Constitution Act ap-plies, regional managers and the managing directors main-tain a constructive dialogue with the works council. They see co-determination rights as an important asset. The manag-ing directors of the group companies that employ staff are re-sponsible for protecting employee rights. They are supported in this task by the Management Board.


• Externalsupportrelatingtoemploymentlaw,forexampleadapting documents in line with legal changes

• Trainingforrelevantemployeegroupsbyqualifiedexter-nal employment lawyers on topics such as employee data protection or the Works Constitution Act

• Coachingontopicsrelatingtoemploymentlawformanagers


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Occupational health and safety

ADLER sees the promotion of the heath and productivity of its employees as an expression of its appreciation towards them. However, the work at ADLER is not associated with any particular health risks. The topic was therefore not iden-tified as key in the materiality analysis.

In order to increase well-being, ADLER provides its employ-ees with ergonomic advice on the layout of their worksta-tion or participates in healthcare measures such as eye tests. ADLER also provides a health portal in collaboration with a health insurance company. Employees can use this portal

to participate in health-promoting or preventive measures, courses and sports activities. Of course, ADLER also provides all prescribed equipment that is needed in the event of first aid. In 2018, ADLER started to establish an appropriate sys-tem for occupational health and safety across the group in collaboration with an external expert in occupational safety. In doing so, the company is meeting its relevant legal obliga-tions.

(EPRA 5.6 – derived from) The absence rate due to illness during the reporting period was 4.99 percent. This is an im-provement in comparison to 2017 (6.4 percent).

ADLER employs people and also has tenants from many different nations. The neighbourhood concierge in Wilhelmshaven can establish a good balance between the various cultures. He actually comes from Syria himself.

Gabriel Heddad, first neighborhood concierge at ADLER Wohnen Service

/// E M P LOY E E S

/// SOCIAL MATTERS/TENANT MATTERS

ADLER believes that companies have a social responsibility and that this responsibility also works in their own inter-est. This is because only companies that act with a sense of accountability can secure long-term social acceptance and survive in the market. This is even more the case for ADLER as its portfolio of affordable housing mainly targets tenants with medium to low incomes. The company therefore moves in a section of the housing market which is now playing an important role in political discourse in the context of rising rents in recent years. For ADLER, this responsibility means a specific obligation to stand up for the well-being of its ten-ants – with a safe and healthy living environment, affordable rents and effective communication.

ADLER believes this is the only way that a company can maintain a trusting relationship with its tenants as it allows both parties to benefit from this trust: For the landlord, it means a continuous income and for the tenant, it means be-ing able to turn their own four walls into a real home.

Tenant health and safety

The housing stock forms the material basis of ADLER’s busi-ness operations. A good state of repair is required to ensure tenant satisfaction, their long-term attachment to ADLER and the economic success of the ADLER Group, which is why ADLER has set itself the goal of guaranteeing a safe and healthy living environment in its properties at all times. To successfully reach this goal, ADLER is also making its ten-ants aware of its aims since their behaviour can facilitate its achievement.


Responsibility for an adequate living environment starts while the property is being built. New buildings, however, play a secondary role in the ADLER business model. Never-theless, regulations, standards and classifications for the use of construction products also apply to maintenance, renova-tion or refurbishment measures, which regularly occur in the existing properties of the group. This includes provisions from the German Civil Code specifically aimed at the con-struction sector, the German Construction Tendering and Contract Regulations, the German Building Products Act, the Regional Construction Ordinances, DIN standards or so-called “Ü” and “CE” markings for construction products. Suppliers and contractors of ADLER receive detailed specifi-cations about the products that may be used as soon as they are commissioned with proof of this being required as part of the building inspection. The central purchasing depart-

ment at ADLER is responsible for ensuring compliance with all key health, safety and environmental compatibility clas-sifications. This applies in particular when forming business relationships with new suppliers.

Regular maintenance, repairs and upgrading of technical systems fall under the remit of public safety obligations and are therefore the responsibility of the operator. These techni-cal systems include, for example, the drinking water supply, electrical systems or lifts. These tasks are performed by the employees responsible for engineering from property man-agement and employees from facility management.

The Management Board is directly involved in all decisions that are technical in nature because two of the three mem-bers of the group’s Management Board are also managing directors of ADLER Wohnen Service GmbH, Hamburg (AWS). There is a general consensus in the group that all products used must exceed the legal requirements where possible, or at least fulfil them. In addition, all technical systems are to be maintained, tested and replaced if necessary at the ap-propriate intervals. AWS is establishing a group of experts to ensure it has the specialist knowledge required for this. They each focus on a specific technical topic for which they have been suitably trained.

Public safety and operator responsibility are two of the key tasks performed by property management. In 2018, AWS identified and defined all services and intervals in these ar-eas of responsibility as an initial step. The next step was to transfer the majority of services to ADLER Gebäude Service GmbH, Wilhelmshaven, (AGS) or to specialist companies. Caretakers or maintenance supervisors inspect the systems at regular intervals. They record the results of these inspec-tions in a log and make this available to the relevant prop-erty manager. After assessing the logs, the property manager commissions tradespeople to rectify any damage. ADLER is increasingly turning to digital solutions to further improve complex processes and to identify problems quicker. This means documentation and inspections will be supported by special software in the future. To this end, a pilot project for this was being run during the reporting period and is due to be completed by the end of 2019. Measures and results


ADLER needs help from its tenants in its efforts to provide a safe and healthy living environment. To help mobilise its tenants in this regard, ADLER provides information on how


/// S O Z I A L B E L A N G E / M I E T E R B E L A N G E

to secure their properties against theft, how to ventilate properly, how to clean drinking water pipes after a long absence, how to keep heating costs low and much more. This advice is available on the website and is given to tenants in a brochure at the start of their tenancy. The information is available in different languages in accordance with the needs of the tenants.

Another measure has been to install “standard air” systems in smaller and larger construction projects, as for example has been done in the Potsdamer Strasse area in Berlin. These systems help to properly ventilate the property and ensure a healthy and comfortable indoor climate. They help to pre-vent damp and mould damage, which in turn safeguards the health of tenants.

Service quality and customer focus

ADLER generates most of its income from rent. Because a high tenant turnover rate is associated with high costs, all companies in the ADLER Group want to retain tenants for the long term and keep vacancy levels low. ADLER is convinced that the best way to achieve this is through high service quality and customer focus. The focus on tenant satisfaction helps to accelerate internal processes and to increase the quality of its services. When it comes to the de-velopment of entire districts, networking with politicians and authorities at a local level is of the utmost importance.

This collaborative effort will enable entire residential com-plexes and neighbourhoods to be improved.


As the facility manager and property manager, it is mainly AGS and AWS that are in direct contact with customers. AGS concentrates on the maintenance supervisor duties, looking after green and paved areas, winter maintenance and build-ing cleaning services. At many locations, the maintenance supervisors are the first point of contact for tenants at the property. They are a link between the management and the tenant and act as the “face” of the company to some extent.

AWS is responsible for any concerns regarding the tenancy. This includes questions about contracts, damage reports, cautions, operating costs, issues with other tenants or dis-turbances in the residential complex. Tenants can use a hot-line and face-to-face tenant consultation hours to contact the company.

In some districts, for example in Berlin-Spandau, there are representatives from tenants’ associations and interest groups on site. As part of district management, there are also regular meetings with representatives from the city in order to discuss improvements to the property surroundings and then to jointly implement these measures.

Children should be able to play and run free. There are play areas in almost all larger residen-tial complexes – with regularly replenished sand and safe play equipment.


Quantitative quality parameters for customer service have not yet been devised, but are planned for the future. This will enable regular reporting on target/actual deviations and measures to close gaps in quality. In the meantime, the fig-ures on accessibility collected as part of a pilot project have been evaluated. These findings were not only reported to the Management Board, but also triggered measures to ensure the highest possible accessibility.


By the end of 2020, the entire service department of AWS will have been restructured. The aim is to increase telephone availability during telephone service hours to over 90 per-cent and to resolve tenant concerns during the initial tele-phone conversation as much as possible. A contact centre is being set up for this purpose, which will be used as the first point of contact by all tenants in the future. A pilot project in Oberhausen showed that within just a short period, it was possible for more than 90 percent of callers to reach their assigned contact person. Satisfaction among tenants has in-creased significantly according to the relevant managers. All calls to the central region in addition to the western region will now be redirected to the contact centre. In the future, ADLER wants to offer a central emergency number alongside the central service number.

Up until now, all regions at AWS have determined their own measures when it comes to customer service. A central “tenant service” office is to be set up to ensure the same quality standards are introduced everywhere. In addition to this, there is a planned expansion of the presence of AWS in the coming years through additional service points at important locations, which involves maintenance supervisors taking on a new role in their communication with tenants. They will be prepared for this with special training courses throughout 2019.

Despite advancing digitalisation, ADLER values local rental offices with fixed opening times. These offices are a particu-larly important point of contact for older tenants. The rental office that opened in September 2018 in Wilhelmshaven can be used as a model. Here, people searching for housing re-ceive information about properties that are currently on of-fer, new tenants can sign their rental contracts and existing tenants have the opportunity to make suggestions and com-plaints. The headquarters of the Non-Profit Society for Equal Social Work (Gemeinnützige Gesellschaft für Paritätische Sozialarbeit) are located directly next to the rental office. In close cooperation with ADLER, this organisation offers vari-ous social services, which go beyond housing-related issues and primarily benefit older people.

ADLER is a member of the Goettingen Alliance for Affordable Housing. This involves a commitment to adequately respect the concerns of tenants in the project there, which aims to add another floor to existing buildings.


Another concept specially aimed at one residential complex in particular has also been implemented in Wilhelmshaven. The group’s first “neighbourhood concierge” has been work-ing there since 1 June 2018. As the maintenance supervisor, he is available as the first point of contact for tenants if they have any concerns. In his role as concierge, he also helps resi-dents to feel safe and enforces residence rules. The decision of where to deploy neighbourhood concierges depends on the specific needs of the sites.

In 2017, ADLER launched the tenant app, a new tool for ten-ant communication. It was further developed in 2018 and adapted to the needs of tenants. In the next step, it will be optimised for internal developments. The app is used by over 20 percent of listed tenants. Tenants can also use the app to join an ADLER bonus programme which, for instance, rewards regular rent payments or sensible suggestions for improvement, thus helping to retain tenants.

In 2018, an IVR (interactive voice response) survey was in-troduced for tenant calls in all regions with the exception of the northern location. The voice dialogue system asks the caller questions at the beginning of the call, which they can answer by speaking or using the phone’s keypad. This allows various data to be collected, such as at what times of day and for what reasons tenants typically call, and what kind of damage reports occur frequently. It is also possible to make comparisons between the individual regions. The results are used for management purposes and should help to optimise staff deployment and increase tenant satisfaction, for example.

Contemporary and affordable living space

The housing market in Germany is considered to be under strain. However, ADLER only has a few properties in large cities, which are the main culprits for giving this impression. The vast majority of rental properties owned by the ADLER Group are located on the outskirts of conurbations where people with middle to low incomes can still find affordable living space. Living space, however, should not just be afford-able, it also needs to align with major socio-economic trends, the ageing population as well as the – sometimes related – trend towards smaller households. ADLER has made this one of its goals.


Within its housing stock, ADLER is concentrating on apart-ments that have an average size of 60 square metres, includ-ing many that are primarily suitable for one or two-person

households. In addition to this, ADLER offers older tenants support when it comes to converting apartments to make them more suitable for their needs or moving them to eas-ily accessible apartments on the ground floor. ADLER also generally accepts tenants who are not able to pay their rent themselves and who rely on support from social funding.

ADLER also works together with local authorities at vari-ous locations to provide apartments for people with special housing needs. When it comes to modernisation projects, ADLER is committed to letting out a certain percentage of modernised apartments with special terms and conditions that have been specifically tailored to low-income tenants.


One example of ADLER’s activities in this area is the Göttingen Alliance for Affordable Housing. Various compa-nies from the real estate sector, the Göttingen tenants’ asso-ciation, Göttingen city council and the Göttingen students’ union work together in this alliance. In August 2018, the al-liance made its goals public. By the year 2030, at least 5,000 new apartments are to be created in the city. At least 1,500 of these should have a maximum rent of EUR 5.60 per square metre which are available for people with low incomes. For new buildings, 30 percent of housing units have to fall into this category. As part of the alliance, the Göttingen city coun-cil has agreed to financially support the construction of new apartments for low-income households. In return, landlords are committing to a ten-year rental period.

During the reporting period, ADLER set up a social frame-work plan for the Wolfsburg Vorsfelde modernisation project to ensure that the associated rent increases were socially re-sponsible. The aim of the plan is to implement the expansion project swiftly, while minimising the impact on the tenants in the residential complex and, above all, taking into account the special situations of older people, single parents or peo-ple from a migrant background. In order to limit the burden on these groups of tenants, not all the modernisation costs incurred from these measures will be fully reflected in rent prices. As part of the modernisation project, ADLER is also offering tenants special advisory services and arranging spe-cial regulations for hardship cases. For example, rent increas-es in recognised hardship cases must not result in the basic net rent amounting to more than 30 percent of the total, verifiable net household income. In accordance with the legal stipulations, ADLER will not make any further rent increases in the two years following the modernisation.



Neighbourhood development

Alongside affordable rent and adequate space, the surround-ing area also plays an important role when choosing a new apartment. This may relate to the infrastructure, the social setting, transport links or even the leisure facilities. Pleasant neighbourhoods with contemporary living standards and a sound infrastructure create a good social atmosphere and have a positive impact on the surrounding local areas. Apart-ments in a functioning and agreeable living environment are attractive, which has a noticeable effect on occupancy rate. Attractive neighbourhoods therefore contribute to the eco-nomic success of the company.

For this reason, ADLER is aiming to provide modern living standards and a good infrastructure in all of its districts.


The regional units are responsible for the matter of neigh-bourhood development. They bear responsibility for main-taining the residential complexes and renovating them as re-quired. Employees at the regional offices are on site regularly and know their real estate portfolios in detail. They are also committed to ensuring social cohesion among their tenants, holding regular office hours to listen to the concerns of ten-ants, offering help and support in official matters etc. Where appropriate, they also work together with different partners in various social spheres, such as the German Workers’ Wel-fare Association or other charitable or non-profit organisa-tions.


People have very different preferences and views which is why it is extremely important to identify their needs and to take them into account when creating a pleasant living environment. Depending on the location, this may differ vastly and it may involve building or renovating a play area in complexes with a large number of families and children or increasing accessibility in neighbourhoods where there are a lot of elderly tenants. Sometimes it can mean renovat-ing pavements in the complex, setting up a football pitch or taking particular care of green spaces.

As an example, ADLER is working together with charitable institutions at selected locations to enable older people to live in age-appropriate housing. This is the case in Wilhelmshaven, where ADLER ensures accessibility and remodels bathrooms to make them appropriate for older people, while the charitable organisation provides regular care for the residents.

At other locations, such as Oberhausen, ADLER provides fa-cilities for the German Workers’ Welfare Association (AWO). These facilities are used for neighbourhood projects, tenant support, social services or homework assistance projects for school-age children. ADLER also provides space for other ini-tiatives that encourage a good sense of community, such as youth centres, neighbourhood cafés or history workshops. Summer festivals, Christmas markets or other social gather-ings also promote positive co-existence.

ADLER spends tens of millions of euros on maintaining, renovating and modernising its residential complexes every year. In 2018, it allocated EUR 56.4 million for all compa-nies of the ADLER Group, with the exception of the BCP sub-group. For BCP, additional maintenance and modernisation costs amounting to EUR 17.2 million were incurred. These expenses mainly serve the reduction of vacancies and the creation of additional rental space.



With the enactment of the Paris Agreement on climate change, the international community has set itself the goal of limiting the global temperature rise to less than two degrees. In order to achieve this, the consumption of fossil fuels needs to be reduced or even scaled back to zero. The government has developed its own climate protection strate-gy based on these provisions which includes a clear target for the property sector: The building stock in Germany should by and large have no net climate impact by 2050.

ADLER also wants to contribute to this and as part of the materiality analysis, the company identified the topics of “energy management” and “adapting to the consequences of climate change” as key areas. At the core of energy man-agement is the aim to gradually increase energy efficiency, which encompasses both the existing property portfolio and the administration sites of the company.

Energy management in existing properties

Letting out existing properties is at the core of the ADLER business model. Although ADLER also invests in new build-ing projects, these only make up around five percent of the overall portfolio. Projects like these are typically planned and implemented as efficiently as possible in terms of energy in line with current technical standards. In the existing proper-ties, the focus is on energy redevelopments that can help to improve energy efficiency without tenants having to change their individual usage behaviour. It goes without saying that although ADLER can create the technological prerequisites for more economical use of energy and heat, it is the tenants themselves who ultimately decide whether they use electric-ity and heating more or less sparingly.

ADLER has set itself the goal of lowering specific energy con-sumption in existing properties in the long term, which will automatically result in a reduction in the associated emis-sions. In order to also reduce the emission of greenhouse gas-es, ADLER is also transitioning to environmentally friendly energy sources, including those that come from renewable sources.

/// ENVIRONMENTAL MATTERS

ADLER creates the technological conditions required for the economicaluse of heat and energy. However, it is ultimately up to the tenants to decide how much electricity and heat they want to consume.

Uwe Hinrichs,Caretaker at ADLER Gebäude Service



The subsidiary ADLER Energie Service GmbH, Hamburg (AES) is responsible for the energy management of the ADLER building stock. It was founded on 1 January 2018 and acts as the sole point of contact for all ADLER companies for all issues relating to the topic of energy. It is the job of AES to implement energy efficiency measures, to develop new supply concepts and to update existing heat supply facilities. It will also collate the procurement of energy in the future.Out of the total of approx. 34,000 centrally heated apart-ments in the ADLER portfolio, approx. 67 percent were heated via contracting or district heating networks in 2018; two percent were heated using heating oil or natural gas. The remaining 31 percent are properties that are already directly supplied by AES. ADLER has already gained a comprehensive knowledge of the state of the heat supply facilities in these properties, their energy consumption and energy-saving po-tential and has already implemented optimisation measures on this basis. Over the coming years, the plan is for AES to gradually take over the supply of all centrally heated build-ings. These heating systems will then undergo the same process as those in the properties that are already supplied by AES. Both identifying and implementing modernisation measures in order to reduce the overall energy consumption of the property are part of this process.

Distribution of energy sources in relation to centrally heated apartments in 2018

Supplying existing properties via AES also creates added value for tenants. This is because when it comes to energy-efficient redevelopments, AES does not only optimise or update heating systems, but also takes into account the distri-bution network, for example – in cooperation with AWS. This helps to reduce the specific energy consumption per square metre, therefore also reducing the costs for tenants. AES was already able to offer tenants lower energy prices in compari-son to third-party heating suppliers in 2018.

AES wants to economise the central heat supply facilities which it supplies in its rented properties as much as possi-ble. For this purpose, AES uses an energy management sys-tem that identifies savings potential, which helps the right economic and environmental decisions to be made in order to reduce energy consumption. Optimisation measures are then implemented as part of maintenance and modernisa-tion activities.

Successful energy management requires a healthy data background. In order to create this, AES will be recording, verifying and analysing all relevant meters for all energies and media over the course of 2019 basid on the German Act on the Digitisation of the Energy Transition. The re-sults will then be made available to the relevant company departments. From 2019 onwards, AES will use a new internal energy portal for this, which should gradually cover all ADLER properties, i.e. not just the properties supplied by AES, but also all the units that are supplied by third parties. AES wants to use this portal to digitalise all processes – from energy procurement and construction to operation of heating systems and invoicing – and to provide the necessary information to the relevant ADLER company departments and market partners. In relation to this, AES will develop key performance indicators (KPI) as control parameters for the heat supply facilities that it manages. This includes key figures such as the specific consumption or specific costs of each building, region or energy source.

AES projects that exceed a certain financial volume must be approved by the ADLER Management Board. ADLER is in-volved in the ongoing business as a shareholder and takes part in regular meetings. ADLER takes into accounts its own compliance guidelines and applicable procurement regula-tions when making all decisions.


AES regularly implements the following measures with regard to energy management in the properties it supplies:

• Continuousmonitoring(gathering,storingandanalysingdata) and regular diagnosis (interpretation of analysis, recommendations for optimising system operations and for savings measures)

• Analysis(determinationofparameters,target/actualcom-parison, benchmarking)

Natural gas/oil2 %

AES heat supply36 %

District heating 40 %

Contracting22 %


/// U M W E LT B E L A N G E

• Standardisation of technical specifications as well as se-lection of and management of manufacturers and service providers in line with relevant quality criteria

• Checking of the heat-generation plants for possible effi-ciency enhancements through one-off adjustment as well as retrofitting and conversion (e.g. hydraulic balancing, installation of energy-optimising controls, high-efficiency pumps, smart-home systems etc.)

• Function and efficiencymonitoring aswell as fault indi-cation

• Checking and calibration of the respective settings, response to user behaviour and external circumstances as well as readjustment for optimisation

• Follow-up inspectionafter interventionsbythirdparties(repair, chimney sweep etc.) as well as quality-oriented subcontractor management

All the measures mentioned above ensure a uniform qual-ity standard. In a heterogeneous portfolio that has resulted from the various purchases of recent years, substantial po-tential to reduce the energy consumption already exists.

An analysis of the central heat generation plants burning nat-ural gas and oil for a residential portfolio of approx. 13,100 rental units showed that CO2 emissions can be reduced by approx. 4,000 tonnes per year through practical and neces-sary cost-efficiency measures alone, such as the renovation of old heating systems and the optimisation of existing heat-ing systems.

AES started to implement these optimisation measures in 2018 and thus far the company has modernised 139 heat-ing systems in this segment during the reporting period. This has reduced CO2 emissions by 1,085 tonnes which equates to an energy consumption saving of approx. 19.7 percent with these modernised heating systems. The company has also converted 56 heating systems that were previously being op-erated using light heating oil to natural gas which has not only reduced costs, but also CO2 emissions.

Alongside measures which should ensure economical and ener-gy-efficient operation of heating systems, ALDER is also fo-cusing on energy redevelopments. The company always acts with reasonable judgement in this regard. Measures to re-duce energy consumption and save emissions should always also increase the quality of the supply and improve the living

environment for tenants as much as possible. In addition to this, the modernisation measures also need to be affordable for tenants.

These aspects must be taken into account, for example in the context of the neighbourhood modernisation in Göttingen and Wolfsburg, and also communicated to the tenants. Here, the focus of the work is on building insulation, the renova-tion of windows, the optimisation of heating systems and facilities and the use of sustainable building materials.

During the reporting period, ADLER conducted training for all technical property managers (around 30) and mainte-nance supervisors (around 150). The focus of this training was on the topics of public safety and energy-efficient opera-tion of heating systems.

ADLER is planning to develop new energy-efficient business models for the future that will have a positive impact on the environment, tenant retention and the living environment. An example of this is tenant electricity models with decen-tralised power generation systems, such as photovoltaics and combined heat and power plants.

Average specific heat requirement in kWh/m² compared to the regional or national Heizspiegel heating survey (EPRA 4.7 – derived from)

Energy source

Average specific heat requirement

(kWh/sqm/year)Connsumption class acc. To

Heizspiegel 20181

AES heat supply 111 1st half, middle

Contracting 148 1st quarter, slightly elevated

District heating 141 1st quarter, slightly elevated

Natural gas 124 1st half, middle

Oil 134 1st half, middle

1 vgl. www.heizspiegel.de



Energy management at the administration sites

ADLER does not only aim to reduce its CO2 footprint with re-gard to its existing properties, it also wants to contribute to environmental and climate protection through its own con-sumption, for example at its administration sites (operating facilities). When using the administration buildings and the company-owned vehicle fleet, CO2 emissions are generated as per the associated energy use. ADLER has set itself the target of systematically, continuously and sustainably im-proving the energy-related performance of the company at its administration sites.


Since the end of 2016, ADLER has had an energy manage-ment system (EnMS) certified according to DIN EN ISO 50001 in place for all operating facilities and the company’s vehicle fleet. The certification confirms that ADLER has made efforts to keep its environmental footprint as small as possible. This includes measures to save electricity and heating energy as well as to reduce fuel consumption. The central element of the EnMS is a continuous improvement process accord-ing to the “Plan-Do-Check-Act” principle. This ensures that ADLER increases its energy efficiency continuously. ADLER is actively involving its employees in the implementation of the energy management system and is encouraging them to use energy and other resources economically. The company regularly informs its employees about the successes of the strategy in addition to the energy management system also being monitored every year through an external audit.

The ADLER Management Board holds the overall respon-sibility for the EnMS. An energy management officer is ap-pointed for its operational implementation. This person is supported by the energy management team. This team also comprises local energy officers from the large operating facil-ities. The basis for the EnMS is the guidelines on the internal energy policy issued by the Management Board.

The EnMS also influences potential new leases for office spaces. This involves the specific energy parameters of the building being measured against the ADLER averages.


The measures relating to the EnMS at the administration sites include:

• Analysisofenergyusageandenergyconsumptioninorderto identify the biggest consumers and to take this into par-ticular consideration in energy efficiency measures.

• Developingkeyfiguresonenergyefficiencytoenablesitecomparisons (e.g. heat consumption per square metre).

• Appointingenergyofficersatkeyoperatingfacilitieswhoimplement the EnMS in coordination with the energy management officer and reduce energy consumption.

• Settingupaspecificemailaddress tocollect suggestionsfor improvement from employees with regard to the EnMS.

• Location-specificactionplanswithenergyefficiencymeas-ures. Examples of this include: Reducing light sources, con-verting lighting to LED, employee awareness, adjustments to space heating.

• Posters in theoperating facilitieson energy-conscious behaviour during day-to-day work.

• Employeeswhocometoworkbybikeratherthanbycarare provided with a service bicycle by ADLER under a standard leasing agreement, which promotes environmen-tally friendly transport.

As part of the EnMS, ADLER is aiming to reduce specific electricity consumption by five percent by 2020 compared to 2015 and to reduce the specific heat requirement by three percent. The company is fully on track to meet this objective so far.

• Heat consumption (kWh/heated space m²) (EPRA 4.3 – derived from)

Theoutputvalue in2015was142.89kWh/m².Thishadimprovedto128.97kWh/m²by2017

(-13.92kWh/m²=-9.74%)

• Electricity(kWh/spacem²)(EPRA4.1–derivedfrom) The output value in 2015 was 40.54 kWh/m².This had improvedto39.67kWh/m²by2017

(-0.87kWh/m²=-2.15%)

• Fuelconsumption(litre/100km) The output value in 2016 was 8.148 litres/100 km. This had improved to 7.876 litres/100 km by 2017 (-0.272litres/100km=-3.34%)



Managing properties requires mobility. In 2018, ADLER was able to reduce the average fuel con-sumption of its fleet of vehicles. In the future, e-mobility will also play a more important role.

Adapting to climate change

To limit the consequences of climate change, it is important for real estate companies to address the topic at an early stage and to adapt their real estate portfolios to changing framework conditions whenever necessary.

During the reporting period, ADLER took the first step to-wards greater accountability when it comes to adapting to climate change. The company is now continuously investing in the modernisation and maintenance of its portfolio of

properties. ADLER is planning a comprehensive analysis of its building stock for 2019, which will involve a consideration of adaptations for climate change. By autumn 2019, the most important components of the buildings (structure, technol-ogy, furnishing) will have been recorded and assessed. The aim is to then determine measures to retain the value of the properties and even increase the value where possible. This will include measures to increase energy efficiency as well as measures to protect against possible major weather inci-dents.


A D L E R R E A L E S TAT E A K T I E N G E S E L L S C H A F T

Registered Office Location:Joachimsthaler Straße 3410719 BerlinPhone: +49 30 398018 10E-Mail: [email protected]

www.adler-ag.com

Documents

Non-Financial Report /// 2018 · key group managers involved in the matters addressed in this report participated in this process, specifically the member of the Management Board