Sustainability by conviction

Environmental, social and corporate responsibility

The core corporate values of Deutsche Investment form the basis for socially responsible, ethical and efficient action. We make our business decisions with due regard for ecological and social aspects as well as in the spirit of value-oriented corporate management. As a company, we are a trusted partner for all stakeholders and align the interests of our investors, business partners and team members with our overall role in society.

We have implemented various measures to sharpen our profile as a responsible and, in the best sense, contemporary investment manager: With our 360° real estate expertise, we take ESG criteria (environment, social, governance) into account at all corporate levels as well as at each individual stage of the property value chain. In addition, Deutsche Investment's remuneration policy takes into account sustainability factors from the environmental, social and governance areas and thus serves to avoid sustainability risks.

For us, sustainability is an ongoing process that does not end with the points presented here. As a result, we will continue to develop our ESG strategy, which is binding for our entire group of companies.

Value-based corporate governance

Deutsche Investment stands for fairness, reliability and integrity as well as for a value-based business and investment strategy. Interaction with each other and with external third parties is based on an open, positive communication and error culture and is characterised by mutual trust. We promote the personal sense of responsibility of our team members and strengthen the awareness of sustainability aspects across all levels of the company.

 

Environment

Gradual conversion of the vehicle fleet to alternative drive systems

Business trips within Germany primarily by rail

Savings in consumables

 

Social

Use of a fixed quota of the proceeds for charitable purposes

Support for social projects and youth sports clubs

Flexible working hours, individual training and health promotion for team members

 

Governance

High standards to prevent corruption, money laundering and bribery

Supervisory Board with proven expertise in real estate investment and regulatory affairs

Internal training academy

 

Strategy for dealing with sustainability risks

Pursuant to Art. 3 (1) of Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 (hereinafter referred to as the "Disclosure Regulation"), Deutsche Investment, in its capacity as a capital management company, is obliged to make a statement regarding the inclusion of sustainability risks in investment decision-making processes.

A sustainability risk is an event or condition in the environmental, social or corporate governance area, the occurrence of which at the corporate level could actually or potentially have a significant negative impact on the net assets, financial position and results of operations as well as the reputation of the respective investment fund and also of the KVG and thus on the value of the investor's investment.

Environment

In the area of environment and climate, a distinction is made between physical and transitory risks.

Physical environmental risks can arise both with regard to individual extreme weather events and their consequences (e.g. heat/drought periods, flooding or storms) and with regard to long-term changes in climatic and ecological conditions (e.g. precipitation frequency and quantity, sea level rise or increase in average temperatures with regional extremes). As a result of such events or conditions, tangible assets can be damaged, reduced in value or, in the worst case, completely destroyed. Physical risks, however, can not only directly affect tangible assets, but can also have indirect consequences, such as the collapse of supply chains.

Transitory risks are risks associated with the transition to a low-carbon economy. For example, political measures can lead to an increase in the price and/or scarcity of fossil fuels or to increased investment costs for necessary refurbishments.

Social and corporate governance

In the areas of social affairs and corporate governance, events, developments or behaviour can also have a negative impact on the asset, financial and earnings situation as well as on the reputation. Examples include social unrest, changes in social or labour laws, or compliance risks.

Sustainability as a central component of the business strategy

For Deutsche Investment, sustainability is a central component of its business strategy. Sustainability risks are to be fully taken into account at all stages of the investment and management process. In this context, Deutsche Investment focuses on the inclusion of sustainability risks in purchase reviews.

Based on the above holistic approach, Deutsche Investment is currently developing a strategy that is intended to concretise and formalise the handling of sustainability risks at the level of the capital management company. This strategy is intended to take into account and further develop the comprehensive consideration of sustainability risks throughout the entire value creation process of an asset as well as the organisational integration (particularly in risk management).

Inclusion of most significant adverse impacts of investment decisions on sustainability factors

Pursuant to Art. 4 (1) of the Disclosure Regulation, Deutsche Investment, as a capital management company, is obliged to comment on the extent to which it takes into account the main adverse effects of investment decisions on sustainability factors in the context of its investment decisions at the corporate level.

Principal adverse impacts of investment decisions on sustainability factors are understood to mean adverse impacts in particular on environmental, social and employee concerns, respect for human rights and the fight against corruption and bribery (so-called "principal adverse impacts").

At the current time, Deutsche Investment does not yet consider the principal adverse impacts of investment decisions on sustainability factors at the company level. For the purpose of measuring and reporting such adverse impacts, it is necessary that corresponding processes are implemented in the company in accordance with legal requirements. The legislative process has not yet been completed at the current time and detailed questions remain unresolved. Due to the considerable legal uncertainties that currently exist with regard to the specific requirements for measuring and reporting these adverse effects, Deutsche Investment has decided to wait for further legal developments and to implement corresponding processes at a later date.

In this respect, Deutsche Investment plans to consider the most important adverse effects of investment decisions on sustainability factors as part of its due diligence processes.

 

YOUR CONTACT

Philipp Westermann
ESG Manager

Phone: +49 40 33 460 49 86
E-mail: philipp.westermann@deutsche-investment.com