2011 Corporate Social Responsibility Report

Transcrição

We take responsibility
Contents
Anyone considering the question of
responsibility must be prepared for change.
Hans Joachim Reinke
2
Union Asset Management Holding AG
4
Letter from the CEO
6
The Union Investment Group in figures
8
Taking responsibility
14
16
We entrust
Work/life balance It isn’t easy to combine work and family life.
Union Investment helps employees with personalized solutions.
20
HR development The financial industry is constantly changing, so
Union Investment encourages lifelong learning.
22
Satisfaction Union Investment employees score their employer
highly – and give helpful feedback.
24
26
30
We represent
Customer profile How Union Investment supported the
renovation and reconstruction of Hildesheim Cathedral.
30
Investment criteria Union Investment checks very closely
whether countries and companies meet sustainability criteria.
34
Real estate Union Investment’s sustainable approach to
construction and refurbishment benefits everyone involved.
38
40
We improve
Environmental management Sustainability is a collection of
small parts that all have to be constantly examined and adjusted.
44
46
We transform
46
Retirement pensions Many people fear for their savings because
of the Euro crisis. Union Investment experts explain the facts.
50
Objectives, key facts and figures
52
The real-estate portfolio
66
GRI report
67
About this report
68
Sustainability program 2011–2015
71
GRI Index
79
Editorial Information
3
Dear readers,
Business can be seen as a simple binary code: black or white, profit or loss. And ultimately, success is indeed measured against fixed parameters that at first glance appear
far removed from the issue of responsibility toward society, the environment and the
people connected with the company. However, responsibility is exactly what supports
sustainable corporate success.
Anyone considering the question of responsibility must be prepared for change, because
responsibility is not subject to set criteria: the demands change according to the environment, the market situation or the perspective from which it is observed. Employees
want a robust company that offers job security and career opportunities, while shareholders want a profitable company that pays consistently high dividends. Society wants
a socially responsible company that helps to promote the common good and protect
the environment.
All these demands have to be integrated into the closely interwoven structure needed
for commercial success. Responsibility is not an end in itself, but is the real objective of
business activities, because companies can only safeguard their future viability if they
take a responsible attitude toward people and resources, society and the environment.
What are needed are strong social, environmental and ethical values combined with
the courage to seek a balance between commercial interests and the good of society
at all times.
Union Investment is able to build on both of these pillars. Firmly rooted in cooperative
values, our mission has always been to act in a spirit of partnership, fairness, transparency
and sustainability. At the same time, for more than 55 years, we have shown that our
company is always capable of change. When there are changes in customer needs, or
the market environment or the regulatory framework alters, we see this as an opportunity
to develop new solutions and offer customized product concepts. In 2011, we even went
one step further and focused our corporate values and mission statement on the new
4
requirements. Our new mission statement, “We make more of investors’ money, so we
merit their trust,” only works if we meet the responsibilities that we have as a company
and as a trustee. Differentiating between the two is vital, because it highlights the special
role an asset manager plays and the social responsibility that goes hand-in-hand with
this. As a trustee, our task is to act sustainably on behalf of our customers, which means
making capital-market investments that comply with clearly defined social, environmental
and ethical criteria. At the same time, we represent investors’ interests by maintaining a
dialog with companies. This in no way conflicts with our company’s focus on sustainability. On the contrary – the intensive discussions about sustainability issues we have when
devising our investment strategies provide us with numerous opportunities for improving
our own behavior, and for making an even greater contribution to society, to the environment, and to the future we all share.
This report shows you the areas in which we are taking action – HR management, portfolio management and environmental management. We have called it “We take responsibility,” because we want to send a clear signal that we take our responsibilities seriously
and consider them to be our primary duty.
Hans Joachim Reinke
Chief Executive Officer of Union Asset Management Holding AG
5
The Union Investment Group in figures
Companies in the Union Investment Group included in this report
Union Asset Management Holding AG, Frankfurt am Main
Union Investment Privatfonds GmbH,
Frankfurt am Main
Union Investment Service Bank AG,
Frankfurt am Main
6
Union Investment Institutional GmbH,
Frankfurt am Main
UIR Verwaltungsgesellschaft mbH,
Hamburg
Union Investment Real Estate GmbH,
Hamburg
Union IT-Services GmbH,
Frankfurt am Main
Union Investment
Institutional Property GmbH,
Frankfurt am Main
Union Service-Gesellschaft mbH,
Frankfurt am Main
Organizational structure
The Union Investment Group consists of
Union Asset Management Holding AG,
headquartered in Frankfurt am Main, and
numerous subsidiaries in Germany and
abroad. The core is formed by six independent asset management companies
that are all generally accepted specialists
in their particular field and whose activities are strategically coordinated by Union
Asset Management Holding.
Products and services
With assets of around 170 billion under
management at the end of 2011, Union
Investment is one of the leading fund management companies in Germany – and the
cooperative financial network’s fund management expert. Its 2,443 staff members
manage more than 980 funds for private
and institutional investors. A total of four
and a half million customers entrust Union
Investment with their investments.
Union Investment Privatfonds GmbH
focuses on retail investor business. The
company’s experts develop and create
marketing concepts for their distribution
partners and provide a wide range of specialist training courses. They also provide
support for strategies, planning, financial
control and sales management. The customers of our partner banks in the cooperative financial network benefit every day
from the 670 or more retail funds that are
available. Our products for retail investors
are sold exclusively via these banks.
Union Investment Institutional
GmbH caters for institutional investors
such as insurance companies, pension
funds and charitable foundations. Its
portfolio managers discuss investment
objectives, investment styles and the
key features of their investment policies
with their customers, then they devise
tailor-made solutions and manage their
customers’ portfolios. At the end of 2011,
over 1,400 institutional investors had
invested in around 310 special funds and
in selected mutual funds.
Group’s asset management company for
open-ended special real-estate funds. Its
real-estate portfolio consists of 70 properties in three real-estate fund products for
institutional investors and it holds fund
assets in excess of one billion euros.
Union Investment Real Estate GmbH
is Germany’s second biggest company
offering open-ended real-estate funds and
one of the leading real-estate investment
managers in Europe. Its real-estate
portfolio encompasses 237 properties
in five open-ended real-estate funds for
private and institutional investors and it
includes prime real estate in the world’s
top locations. The company operates as an
investor, vendor, property developer and
landlord.
The Union Investment Group
outside Germany
Union Investment Institutional
Property GmbH is the Union Investment
Alongside its activities in Germany, the Union Investment Group also offers selected
funds via its parters in the cooperative
financial network and third-party distributors in Luxembourg, Poland, Austria, Italy,
Spain and Switzerland. BEA Union Investment Management Ltd., a joint venture
between Union Investment and the Bank
of East Asia, is exclusively dedicated to the
fast-growing Asian market.
This report focuses on the Union Investment Group within Germany.
Ownership structure and legal form
Union Investment has been fully integrated into the Volksbanken Raiffeisenbanken cooperative
financial network since 1999. The network’s two central institutions are the main shareholders
of Union Asset Management Holding AG – with DZ BANK AG holding the majority of its shares
followed by WGZ BANK AG and VR GbR.
3.59%
24.25%
DZ BANK AG
WGZ BANK AG
VR GbR, consisting of DZ Bank
AG, WGZ BANK AG and R+V
Personen Holding GmbH
Local cooperative banks,
including the holding companies of the primary banks,
trade associations and specialpurpose entities of the German
cooperative financial network
and others
17.72%
54.44%
7
8
Responsibility is our goal
The time is ripe for more sustainability. Nowadays, customers,
employees, counterparties, shareholders and society in general – all
expect companies to behave sustainably. Sustainability has very
different aspects: environmental, business-related and above all
social. Approaches toward more sustainability are equally varied,
yet they all have the same goal, for companies to take responsibility
for their own conduct.
If they are to do more than merely pay
lip service to responsibility, all companies
have to focus their structures and processes rigorously on improved sustainability. And they have to provide proof of how
their conduct is taking effect.
Union Investment’s business model has
always been founded on a sense of
responsibility toward its business partners
and a sense of accountability toward its
employees and society as a whole. Hans
Joachim Reinke, Chief Executive Officer of
Union Investment, largely attributes this
stance to its cooperative roots: “Cooperative companies see taking responsibility
as part of their identity.” Reinke firmly
believes that sustainable practices and
financial success are not mutually exclusive. In fact, he says: “For us, the two are
inextricably linked. We create value without jeopardizing the financial and societal
foundation of future benefit. That has been
the basis of Union Investment’s success for
over 55 years.”
What does sustainability mean?
When Union Investment talks about
sustainability, it not only means behaving
responsibly as a company, it also means
dealing responsibly with the monies with
which it has been entrusted by its customers – and this is of prime importance for
an asset manager. “We have a special role,”
explains Alexander Schindler, the member
of Union Investment’s Board of Managing
Directors responsible for institutional business. “Investors instruct us to invest their
money sustainably in the equity, bond and
real-estate markets, which is why we have
established a broad range of different
products and services.” Union Investment
now has over 20 years experience in this
field and today it is one of the biggest
managers of sustainable investments in
Germany.
For many investors, Schindler reports,
sustainability is now an essential objective
of every investment strategy. The results
9
For us, financial success and sustainable practices are inextricably linked.
Hans Joachim Reinke
The claim for responsible investment
stands above all investment decisions at
Union Investment.
Jens Wilhelm
10
of a study by Union Investment show that
over 60 percent already take sustainable
criteria into consideration. “It starts with
the exclusion of armaments and extends
across a range of strict specifications
regarding the use of resources, pollution,
working conditions and social acceptability,” he adds.
Responsibility on behalf of investors
Jens Wilhelm explains in detail how Union
Investment implements these demands
for sustainable management at product
level. He is the member of the Board
of Managing Directors responsible for
portfolio management and real-estate
business. “The claim for responsible
investment stands above all investment
decisions at Union Investment. Stringent
selection criteria are integral elements
of the investment process for our sustainable funds. We use various analysis
tools and scoring models to determine
whether equities, bonds and real estate
meet strictly defined sustainability criteria,
and we base our investment decisions on
them,” says the investment strategist. He
believes it is particularly important that
portfolio managers do not simply assess
the status quo but enter into intensive
dialog with companies in which they have
invested. “Every year, we hold more than
four thousand meetings with companies
from all over the world. And we use them
as opportunities to encourage companies
to actively drive forward their commitment to sustainability,” says Wilhelm. In
its real-estate business, Union Investment
sets high sustainability standards for the
properties in its various open-ended realestate funds. “This applies as much to the
acquisition of new property as to improving the sustainability of properties in our
portfolio,” explains Wilhelm, referring to
the corporate social responsibility Union
Investment assumes as one of the biggest
players in the real-estate sector.
High standards for our own behavior
Anyone who scrutinizes others has to have
high standards for their own sustainable
behavior. “This is another reason why the
issue of social, environmental and financial
responsibility is of key importance to all of
Union Investment’s commercial decisions,”
explains Chief Executive Officer Reinke.
Whether it concerns HR management,
infrastructure or environmental management – the responsible treatment of
people and resources is the top priority.
Reinke knows that sustainability is of
great value to a business: “Responsible
behavior not only safeguards the future
viability of our business, it also provides
tangible economic benefits for our current
operations.”
Ulrich Köhne highlights the way in which
these economic benefits are further
developed as part of a sustainability
strategy. His responsibilities as a member of the Board of Managing Directors
include infrastructure and procurement
management, and he is directly responsible for implementing numerous measures.
“By 2015, Union Investment will have
positioned itself as a focused, sustainable
asset manager and will have established
standards for managing and developing sustainability within the company,”
explains Köhne, referring to the system for
environmental management and sustainable procurement management that Union
Investment introduced in 2010.
The environmental management system is
a component of the company-wide commitment to the preservation of resources.
Action is also being taken with regard to
green IT, intelligent building engineering,
the vehicle fleet and carbon-neutral travel.
11
Investors instruct us
to invest their money
sustainably.
Alexander Schindler
Dealing responsibly with people
Sustainable human resource management is a particularly high priority. “Our
employees are our most important asset,”
explains Reinke. Flexibility, scope and
personal development are the key
words for the various personal development programs and for creating a
work/life balance. Reinke recognizes
that “there is a particular need for us
to take corporate social responsibility in
this area.”
12
Last but not least, Union Investment
assumes responsibility for society – sometimes in the background by generating
maximum, consistent returns for funded
pension schemes or pension funds, insurance companies and other pension providers, thus securing the retirement pensions
of thousands of people. And sometimes
in the spotlight as the sponsor or initiator of numerous information and training
campaigns. Also further proof that Union
Investment pays far more than lip service
to responsibility.
By 2015, Union
Investment will have
positioned itself as a
focused, sustainable
asset manager.
Ulrich Köhne
Sustainability management has a strong
basis at Union Investment with Matthias
Stapelfeldt at its head. He is an experienced
manager who has been with the company
for twenty years.
“Sustainability is nothing new for Union Investment.”
Mr. Stapelfeldt, you have been Union Investment’s sustainability officer since 2010.
What exactly does your role entail?
Sustainability is nothing new for Union Investment; it has been actively promoted in individual
divisions for years. However, we needed a framework for all the activities that are increasingly
becoming prevalent at both product and group level. My task is to amalgamate this large
number of separate activities.
How do you approach that task?
We have drawn up a sustainability strategy and introduced a sustainability-management system
to enshrine corporate social responsibility at group level. It is also vital to promote the issue proactively within the company and outside it. In my role I am a coordinator, a communicator and a
point of contact for technical issues.
What do you consider your most important tasks?
My most important task is to work with specialists in the company’s individual units to find as
many starting points as possible for making our practices comply even more closely with our
responsibility toward investors, employees, counterparties and society – and then to develop
these ideas into strategies and processes that can be put into practice in day-to-day business.
Talking to different stakeholders about sustainability is also extremely important. Let me give you
an example. Since 2010, we have held an intensive dialog with experts from a United Nations
initiative who want to establish their principles for responsible investment more firmly in Europe.
What form does this dialog take?
Union Investment was one of the first German asset managers to sign up to these principles –
the UN Principles for Responsible Investment – and to apply them as a standard for the practices
of all its corporate divisions. We also organize investor events with the UN initiative to raise
public awareness of the idea of responsible investment. Our claim for sustainable practices at
product and group level is intended to set a good example. And we want to inspire as many
people as possible to help us on our way.
13
Frank Besemer, Group Manager HR
Development at Union Investment.
Constant dialog with employees helps
him and his team to invest in targeted
staff development.
14
We entrust
Create a culture of cooperation. Advance employees according to their talents.
Enable a balance between work and private life.
Develop innovative working models. Seek dialog with staff.
15
Finding a balance
Companies need to find a balance for employees who want to be challenged and
promoted but also need the latitude to reconcile the demands of work and family life.
Union Investment’s solution is to use personalized advisory and support services.
This pays dividends – for us as an employer and for our staff.
Four practical examples:
Sabine Knöß
Nadine Egerer-Bareit
16
Dr. Martin Grottke
Stefan Judt
Sabine Knöß (35),
Communications Manager
As a communications manager, Sabine
Knöß normally finds it easy to say the right
thing, but when her father was diagnosed
with bipolar disorder ten years ago, words
failed her. “I thought his condition would
settle down again,” says Sabine. Today she
knows that is not the case, because her father has manic depression. When he is on
a high, he is full of exuberance but when
he is down, he needs medical assistance.
“Unfortunately, I don’t know in advance
when a low phase will start or how long
it will last,” explains the 35-year old. “
Fortunately, my boss lets me take as much
time off as I need in these situations.”
Once, Sabine’s father needed a doctor
urgently. Because she couldn’t find one,
Sabine contacted the Employee Assistance
Program (EAP), an external information
centre where Union Investment staff
can get professional, career or personal
advice. “I had a very capable contact who
listened to me and did some research for
me,” recalls the communications manager.
“Just a day later, a doctor contacted me.”
Following this positive experience, Sabine
is now planning to attend a skills training
course for carers: “After all, I know that
my father’s condition will continue to
deteriorate.”
Dr. Martin Grottke (40),
Risk Control Departmental Manager
Martin Grottke knows all about stress
tests, in his own life as well as at work. In
2007, “just as the financial crisis entered
its hot phase,” his first daughter came into
the world. Daughter number two followed
three years later in December 2010. Everything was going to plan, but there was
one thing he hadn’t reckoned on. Shortly
after the birth of his younger daughter,
Martin found out that he was to be promoted to head of department with effect
from January 1, 2011 – and he was faced
with a dilemma. Although, he was pleased
with his promotion, he also wanted to take
parental leave. He thought that as a departmental head it would be very difficult
to get approval for parental leave, but he
was wrong. “Fine, go ahead,” was all his
line manager said. However, they agreed
to postpone the period of parental leave
for a time because there was so much
to do in the new department. “For me, it
went without saying that I would support
my employer at this time, just as he has
supported me with my plans for parental
leave,” says Martin. The timing was right
in August and November 2011, when the
departmental head took two periods of
four weeks leave. “Of course, I could still
be contacted by my staff and I came into
the office from time to time,” says Martin.
“But I still spent some quality time with
my family.”
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Nadine Egerer-Bareit (37),
Group Strategic Management
Assistant
In mid-2009, Nadine experienced the inner
anxiety that sometimes afflicts her:
“I need to be busy all the time, to develop
and to have prospects,” says Nadine
Egerer-Bareit. “Otherwise, I get bored.”
When her boss offered her the opportunity
to study part-time for an Executive MBA
at Durham University and the European
Business School with the support of her
employer, the 37-year old jumped at the
chance. That was in January 2010, but
just a few weeks later she found she was
pregnant. She and her husband wanted
a child, but the timing was unexpected.
“Of course, I felt under pressure but at
the same time I believed I would be able
to combine having a child, studying and
working.” She actually managed it by
studying during her ten-month maternity
leave and subsequently Union Investment
provided her with a nursery place that
gave her even greater flexibility. “Without
the nursery place and the knowledge
that I could stay at home occasionally if
absolutely necessary if my child was sick,
I could not have been a working mother,”
says Nadine. Which would have been
unthinkable for the new MBA graduate.
Ideal conditions
Union Investment offers its 2,443
employees advisory and care services
that are tailored to meet their individual needs, regardless of whether
they work full time or part time or are
temporary employees. For parents,
emergency childcare, subsidized
nursery places and parent-and-child
offices are available. Employees with
relatives requiring care can attend
the “Skills training for carers” course.
All employees are entitled to flexible
working-time models as and when
needed. Flu shots, vitamin C doses,
mobile massages, back exercise
classes, yoga courses and subsidized
gym memberships are also available.
In 2011, Union Investment received
the BestPersAward and the Work
and Family Audit certificate for its
employee-friendly HR policies.
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Stefan Judt, (46), Group Head of
Data Management, CRM Systems
and Reporting
Where there’s a will there’s a way. For
Stefan Judt this saying has almost become
his philosophy for life. “When my son was
born in August 2007, my wife and I had
naturally thought it over a great deal,”
says the 46-year old. “However, we were
sure that we both wanted to continue
working.” There was only one possibility:
“We needed to keep our working hours as
flexible as possible.” Three months after
the birth, when his wife returned to work
for three days a week, Stefan took parental leave, but continued to go into the
office on the two days that his wife was at
home. At the age of five months, his son
was given a place in the Union Investment
nursery and the group manager was able
to increase his hours to four days a week.
Now that his little boy attends the kindergarten, Stefan is back at 90 percent of his
regular working hours. “Full-time work
will not be possible for the next few years
though, because when you have a child
you need the option of leaving early if
necessary.” His boss accepts this, provided
the work gets done. Stefan is not worried,
saying: “When you have less time, you
automatically concentrate much harder on
your work.” And just to prove that where
there’s a will there really is a way, the data
manager often fits running into his lunch
break.
Total workforce by employment type,
employment contract, and gender
Injuries, occupational diseases, lost days,
absence and work-related fatalities
Industrial accident rate
1. Number of employees at the year end by gender
(Including the following subsidiaries: UMH, UIP, UIL, UIT, UFS,
TFI, USG, UIN, UIR, UII, USB, QAM, attrax)
0.96%
Sickness rate
4.1%
Industrial accidents
5 (plus 2 during company football matches)
Men
1,351
Commuting accidents
15
Women
1,092
Fatalities
None
Since 2011, Union Investment has offered a return-to-work and disability management
scheme for all employees who were repeatedly absent through illness or were unfit for work
for an uninterrupted period of over six weeks in the preceding 12 months. The aim of the
scheme is to work with employees to find ways in which fitness to work can be restored and
permanently maintained, and good health can be promoted.
2. Number of employees by NCN/CN contract and
full/part-time contract
Non-collectively
negotiated contracts
1,544
Collectively negotiated
contracts
899
Full-time employees
2,009
Part-time employees
434
Composition and breakdown by employee
category and gender
3. Number of permanent and temporary/
fixed-contract employees by gender
Permanent employees
(male)
1,332
Permanent employees
(female)
1,046
Temporary employees
(male)
19
Temporary employees
(female)
46
Total proportion of women at
Union Investment
44%
Proportion of women in managerial
positions at Union Investment
(group managers and above)
17%
Number of employees by age group
(<30; 30–50; >50) and gender
<30
30–50
>50
Male
96
1,124
131
Female
103
875
114
Staff turnover broken down by age group and gender
1. New recruits in 2011 by age group (<30; 30–50; >50) and gender
(’New recruit’ only applies to the first period of employment at Union Investment)
<30
30–50
>50
Male
19
82
0
Female
24
44
1
Ratio of basic salary for men to basic salary
for women by employee category
Remuneration at Union Investment is based on performance not gender.
2. Number of employees recruited in 2011 who had previously left the
company – broken down by age group and gender
<30
30–50
>50
Male
2
6
0
Female
3
0
0
3. Number of employees who left Union Investment in 2011 broken down
by age group and gender
<30
30–50
>50
Male
7
45
6
Female
6
39
4
19
Union Investment’s declared objective is
to understand its customers and always
to offer them the best solution for making more of investors’ money. The way
to achieve this is undoubtedly to ensure
that employees are always up to date on
markets and customer requirements, so
Union Investment provides its employees
with personalized development programs
under the banner of lifelong learning. This
is certainly also one of the reasons why
Union Investment retains its staff for longer than other companies in the same sector. “On average, our employees stay with
the company for eight and a half years,”
reports Sonja Albers, Head of the Group
HR division, not without some pride. This
figure also sends a clear signal to the
outside world: Union Investment provides
its employees with reliable structures, precisely because the financial sector offers
few constants in an ever changing world.
Union Investment employees think flexibly
and are open to new ideas, qualities that
are vital in a competitive environment.
Sharp minds learn for longer
“An investment in knowledge always pays the best interest.”
Statesman Benjamin Franklin’s comment, made in the 18th century,
is more relevant than ever today – and for Union Investment it
means providing every employee with personalized training and
development at every stage of their career.
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The times when what you learned as an
apprentice would see you through to retirement are long gone. A fact that Union
Investment has known for a very long
time, and is reflected in its state-of-theart approach to HR management which
ensures that each employee – from intern
to senior manager – is able to develop his
or her skills and knowledge appropriately.
Employees such as Knut Pfeiffer prove that
this is no empty promise. After joining the
asset management company as an administrative clerk, he climbed the career ladder
to become head of the commercial project
management group at Union Investment
Real Estate. Today, the former clerk manages five staff members. “Unusual career
paths, continued professional development and management seminars create
unique prospects, as you can see from my
résumé,” Pfeiffer proudly declares.
Average number of hours per annum spent by each
employee on training/professional development
Divisional heads
30 hours
Departmental heads
38 hours
Group heads
41 hours
Employees
25 hours
“Union Investment employees benefit
from HR management’s focus on the
individual,” stresses Sonja Albers. Each
development training course is preceded
by meetings about the employee’s current
development status. The Union Investment
personal development program (UniPEP),
for example, highlights personal strengths
and areas that need development. This
fruitful dialog between staff and managers ultimately results in an individual
development plan with targets and actions
tailored precisely to the needs of each
employee. The objective of a development
program may be to optimize a specialist’s
technical knowledge or to prepare staff for
more senior (managerial) roles by means
of the UniPotenzial I and II programs. Even
after staff have taken on more responsible
positions, new managers receive help with
their professional development. As well
as specialist support, sharing information
with colleagues in the same situation is
particularly valuable at this point. According to Sonja Albers this is another special
feature at Union Investment, allowing
colleagues to learn from one another.
Waldemar Kosubek, Manager of the Internal Performance Analysis Group has also
benefited, commenting: “Intensive dialog
with my mentor was extremely productive
for me. We met regularly for two years.
It is a great idea that experienced managers pass on their knowledge and experience to younger colleagues in this way.”
Programs for knowledge
management and lifelong
learning that develop job
skills and help staff with
their career advancement:
• Professional development scheme,
selected by independent panels
of judges to receive numerous
Naturally, lifelong learning at Union Investment is not a one-way street. As well as
encouraging staff to improve their knowledge for their own benefit and for that
of the company, the fund management
company itself is learning all the time how
to further improve its staff training and
motivation to contribute to job satisfaction
and contentment. In this way, both parties
benefit. Each employee has the opportunity to develop personally and professionally,
and Union Investment retains extremely
well qualified staff for the long term. This
puts the company far ahead of the game,
because future demographic change will
make competition for the sharpest minds
even tougher.
awards (Top Employer 2007–2012;
BestPersAward 2006–2011;
Personalwirtschaft magazine
German HR prize 2006, 2007, 2009)
• Target-group-specific analysis of
potential (analysis of strengths/
areas for development) including
the creation and implementation
of individual development plans
(Management Audit, Career
Architect, UniPEP)
• Development programs
(management development
program, group head development
program, UniPotenzial,
UniProfessional, specialist
instructor scheme)
• Internal seminar program/UniKompetenz
• Support for various part-time
development programs/degree
courses
Sonja Albers, Head of the Group HR division, and her team ensure that each employee is offered
personal development and training at every stage of their career.
21
Satisfied employees = satisfied customers
This equation holds true at Union Investment which does a great deal
to motive its staff. But do they appreciate it – and are they satisfied
with the working environment in the company?
Union Investment poses this question
every two years – and its employees
respond. Union Investment knows
that only motivated, healthy staff are
willing and able to do their best to
fulfil the company’s mission to make
more of investor’s money. The HR
division carries out an anonymous,
online survey covering a total of
eleven subject areas relating to the
working environment and general
satisfaction among employees. The
information they gain helps with the
constant development of HR management and with any improvements
that may be needed.
Union Investment Climate Barometer
Average scores on a scale of 1 (entirely applicable)
to 5 (does not apply at all).
1.93
1.99
2.08
with the results of the 2008 survey.
Commitment index: 77 (+1)
Union Investment as an employer (+0.03)
Workplace (+0.04)
Job content (-0.01)
2.13
Management (-0.02)
2.21
2.27
Work/life balance (-0.01)
Remuneration and additional benefits (-0.06)
2.31
Information (+0.23)
2.43
Partnership (-0.05) / culture (not surveyed in 2008)
2.53
Development prospects (+0.07)
2.74
22
2
The figures in brackets indicate changes compared
3
Change and innovation (+0.05)
Customer satisfaction
Union Investment has a wide range of customer groups that
include client advisors at the local cooperative banks, retail
investors, institutional investors and tenants as well as intermediary banks and customers of the Luxembourg-based attrax fund
platform. All these customers have different needs and Union
Investment conducts telephone interviews every two years to
measure the extent to which they are met.
The results of the 2011 survey show that
there is scarcely any need for optimization. The commitment index, which
measures the extent to which employees identify with their company, stood
at 77 points for Union Investment, far
above indices for comparable companies.
The high participation rate means that
the results are meaningful, with eight
out of ten taking part in the survey in
2011, more even than in 2008 when the
response rate was 71.2 percent. A total
of 1,888 staff members took part in the
online survey, recording on a scale of one
to five whether statements about subjects
such as job content and responsibility,
remuneration or even corporate culture
applied to them “entirely” (one) or “not
at all” (five).
The last survey showed that the client advisors at its partner
banks in the cooperative financial network were particularly
satisfied, with 84 percent saying that they were ’extremely satisfied or very satisfied’ with Union Investment. They benefit most
from constant updates about investment products, which mean
that they can organize their work efficiently – essential for their
relationships with retail investors.
Aside from its two-yearly surveys, Union Investment also values
the feedback it receives from its customers so it frequently
conducts market research. And all customer contact is subject to
quality assurance, whether it happens via the website, email, letter
or at events.
“I am extremely satisfied or very satisfied with
Union Investment.”
Percentage who agree
Institutional clients
Union Investment received the best scores
in the employer (1.93) and workplace
(1.99) categories. By contrast, employees gave the subject area “Change and
innovation” a score of 2.74 – still a good
result but the lowest in the survey –
which was particularly interesting for the
results analysis used to identify areas
requiring action. The outcome was that
innovation is now being specifically
promoted. The first joint workshop with
external innovation specialists has taken
place and Group Strategic Management
has set up a new innovations management unit. These are the initial steps
toward ensuring that staff give “Change
and innovation” an even better score
in 2013.
78
Intermediaries in the cooperative financial network
84
Managers
74
UnionDepot customers
41
Tenants of real estate held by funds
60
“I am extremely satisfied or very satisfied with
attrax.”
Percentage who agree
Cooperative financial network intermediaries
73
Institutional clients
71
Union Investment asked its customers how satisfied they were. The figures refer to
statements that they were “extremely satisfied” or “very satisfied”.
23
Caroline Lang, Portfolio Manager at Union Investment. She monitors customer requirements as closely
as developments in the capital markets because responsible investment means making more of
investors’ money.
24
We represent
Take responsibility in day-to-day business. Act in the interest of our customers.
Regard sustainability as an investment criterion. Use good judgment
when investing. Initiate our own socially relevant projects.
25
26
Sustainability is our maxim
The refurbishment and remodeling of Hildesheim Cathedral has been under
way for almost three years. This UNESCO World Heritage site is set to become
a magnificent centerpiece. Union Investment is a partner in the project –
and therefore also a frequent visitor to the site.
An excavator creaks into life and moves
building rubble into a red skip in front of
Hildesheim Cathedral. Where you would
expect to hear organ music, the sound of
drilling fills the air. Wheelbarrows stand
around where the congregation normally gathers for services. It is the biggest
church construction site in Germany –
Hildesheim Cathedral is being completely
refurbished and remodeled.
This action was urgently needed. Although
the cathedral was rebuilt after being
destroyed by bombs in the Second World
War, nothing other than minor repairs
to the plasterwork had been done since
1960. In 1985, the cathedral, its treasury
and St. Michael’s Church became the
second site in Germany to be added to
the UNESCO World Heritage list.
“The interior of the cathedral is now being
sympathetically restored,” said Vicar General Dr. Werner Schreer, the construction
project’s manager. For example, a large
amount of marble was used during the
reconstruction phase. “In the time of Germany’s economic miracle, that was a sign
that the country was back on its feet, but
marble is completely inappropriate for a
Romanesque church,” he explains. A new
episcopal crypt is also being constructed
Vicar General Prelate Dr. Werner Schreer, the cathedral restoration project manager, in the church’s main nave (top). Hildesheim is the
first diocese to invest its capital according to a fully sustainable model. This is the result of intensive collaboration between Helmut Müller,
the diocese’s finance director (below left), and Union Investment’s investment experts. Site visit by Achim Philippus and Marc-André Köhler
(below right, from the left).
27
because graves are currently still scattered
beneath the entire floor of the cathedral.
The main work is to move the altar closer
to the congregation to reduce the physical
distance between the priests and the people. “It should not be the bishop’s cathedral or the city of Hildesheim’s cathedral
or even the whole diocese’s cathedral,”
explains the dean, Hans-Georg Koitz, who
acts as the client for the project. “People
should say ’It is our cathedral.’ The church
is set to become a modern symbol of faith,
a gleaming new centerpiece.”
Sustainable, low-risk, high-yield
The refurbishment work also has to be
sustainable, so, when the work is finished,
the cathedral will be heated using natural
energy sources. Eighty percent of the
energy will come from a wood-fired power
plant which will reduce the diocese’s CO2
emissions. After all, the preservation of
creation is one of the church’s particular
responsibilities.
This is also why the diocese pays special
attention to sustainability when investing its capital. “This issue now plays an
important role in all churches and dioceses,” says Helmut Müller, the diocese’s
financial director. “There has definitely
Dean and auxiliary bishop emeritus Hans-Georg Koitz, who acts as client for this large-scale project, explains the ideas behind the
alterations, saying that the church was set to become a modern symbol of faith, a gleaming centerpiece for the whole diocese.
28
People should say
‘This is our cathedral.’
Hans-Georg Koitz
been a shift in values.” Müller is proud
that the Diocese of Hildesheim succeeded
in investing its capital according to a fully
sustainable model at an early stage – with
Union Investment as its partner. Around
130 million, or 80 percent of its capital, is
now invested with the fund management
company.
However, sustainability is just one of the
maxims the diocese adopts as an investment strategy. It must also ensure that its
money is invested in low-risk investments
that generate a return. The diocese manages capital generated by church taxes
to provide retirement pensions, so it is
particularly important for it to be invested
responsibly.
with abortion, animal experimentation,
gambling, pornography or armaments are
out of the question from the outset. Pharmaceutical firms that produce contraceptive pills are also filtered out.
The right concept
Union Investment uses a total of 280
criteria to review firms. Just a few meet
the strict specifications and the companies
Facts about the cathedral
restoration:
The cathedral has been a massive
construction site since 2010. In addition to the work being carried out to
Union Investment has therefore worked
out an investment strategy together with
the Diocese of Hildesheim in a number
of workshops held for this purpose.
Positive and negative criteria are used to
assess the degree to which equities and
bonds comply with ethical criteria. If, for
example, companies produce goods with
the minimum possible social impact, they
are awarded plus points, but if companies
breach employee rights, minus points are
applied. Specific exclusion criteria have
been devised so that companies connected
preserve the substance of the building,
the episcopal church is also being
selected from this small group are those
that generate the best returns while fitting
into the overall strategy.
“We have created a completely individual
filter for the Diocese of Hildesheim,” is
how Achim Philippus, Executive Director
in the Special Funds division, explains the
investment strategy. “As well as sustainability, capital preservation was also very
important. An institutional investor such as
the diocese is not permitted to be exposed
to large losses.”
The strategy has been tremendously successful, with the diocese suffering virtually
no losses during the financial crisis when
stock markets around the world were
crashing. The investments are yielding
roughly À5 million to À6 million per year,
money that is also used to help with the
restoration of the cathedral.
fundamentally redesigned. The aim
of Cologne-based architect Johannes
Schilling was to make the medieval
feel of the space more accessible and
to display the cathedral’s artworks,
such as the Bernward doors and the
medieval font, to better advantage. The
works are scheduled to be completed
in time for the 1,200th anniversary of
the diocese in 2015. The total cost will
be roughly À30 million. More than
Union Investment and the Diocese of
Hildesheim have been working together
successfully for ten years. “Union Investment’s concept was an exact fit with the
diocese’s desire to preserve the value of
its capital while addressing sustainability,”
says the diocese’s finance director. “In the
end, it was also a gut decision. We just felt
that we were in good hands with Union
Investment.”
half of this amount (À17 million) is
being contributed by the German federal government, the European Union,
charitable foundations, and support
organizations. Approximately À2.3
million is coming from donations, and
À7.3 million from the diocese itself.
29
A question of
responsibility
Investment performance is primarily measured
in terms of return, but that alone is not enough
for investors. The question of how their money is
invested is becoming increasingly important for
many people, particularly with regard to environmental, ethical and social criteria.
30
31
Circumstances are
constantly changing, so
we have to question our
processes for sustainable
investment and improve
them all the time.
Ingo Speich
It started with a small circle of church
banks, charitable foundations and nonprofit organizations who were among the
pioneers of sustainable investment. Today,
the majority of institutional investors are
interested in sustainable investment solutions. The same applies to private investors
who want to be sure that their money is
being invested responsibly.
Fund manager Ingo Speich goes on the
road on their behalf, attending companies’
annual general meetings to campaign for
the interests of shareholders. “Sustainability is a key theme. We want to encourage
companies to focus their strategies more
closely on environmental, social and ethical criteria as well as traditional corporate
governance issues,” he explains. There is
particular interest in companies that still
have some catching up to do where sustainability is concerned, because this has
the potential to generate future returns.
The RWE energy group is a good example.
Ingo Speich has been taking the floor
at the company’s annual shareholders’
meeting since 2009. Together with his
colleagues he also meets the group’s senior managers on a regular basis to discuss
its recent business performance. Issues
that are critical from an investor’s perspective are also addressed, including nuclear
energy and CO2 emissions. “For us, it is
important to have discussions with RWE’s
management team about how the company could focus more closely on projects
that safeguard the future viability of its
business model while not running undue
risks of compensation claims or damage to
its reputation,” explains Speich. For power
utilities, this is an extremely complex issue.
“Most of them are having to take a critical
look at their business model and having to
develop credible alternatives for the period
after the switch to renewable energy
sources,” he continues.
The will to change can clearly be seen at
RWE and the group takes criticism from
investors seriously. “Projects that we have
also addressed when attending recent
shareholders’ meetings – such as building
nuclear power plants in regions of Bulgaria
and Romania that may be susceptible to
earthquakes – have now been canceled,”
Fund manager Ingo Speich (right) regularly represents the interests of investors at shareholders’
meetings. Here, he is at the RWE annual shareholders’ meeting in Essen. He maintains close
contact with Dr. Stephan Lowis, Head of Investor Relations at RWE.
32
sentatives every year. Constructive debate
about the sustainability of their business
models regularly features on the agenda.
Every year, Speich and his colleagues hold
around 250 special sustainability meetings
with companies, often in person at their
corporate headquarters to get a direct
impression of production processes and
new projects.
explains Speich. RWE’s group management board is working rigorously on
past shortcomings and it has launched a
capital investment offensive for renewable
energies. Today, RWE is focusing more
strongly on power generation using wind
and biomass and it is also endeavoring to
make its coal-fired power plant complex
more efficient and less emissions-intensive.
“We want to support RWE on this journey
toward more sustainability and a futureproof business model,” comments Speich
on Union Investment’s strategy. As one
of the biggest shareholders in Germany,
Union Investment certainly has an enormous amount of influence.
It exerts this influence on a variety of
companies around the world. Attending
annual shareholders’ meetings is one
element but it is supplemented by more
than 4,000 meetings with company repre-
Extensive preparations and detailed analysis of the companies, their competitors
and the market environment are required
to ensure that these company meetings,
each visit and every appearance at a
shareholders’ meeting run to plan. Assessing business models according to strictly
defined sustainability criteria also plays a
key role in this analytical process. That’s
why Michael Schmidt, Head of Equity
Fund Management at Union Investment,
places great importance on the systematic
expansion of sustainability expertise. After
all, he is well aware of the huge importance of sustainability for investment:
“As asset managers, we represent the
interests of our investors, so we receive
implicit or explicit instructions to encourage companies to operate sustainably.”
Implicit instructions, because the ultimate
aim of all investors is to invest in business
models that are future-proof and generate
rising returns. Explicit instructions, because
more and more investors have also placed
strict requirements on their investment
strategies – in the form of clearly defined
sustainability or exclusion criteria.
Fund manager Ingo Speich explains how
this is implemented in the investment
process: “As part of our analysis for sustainable products, every company in which
we invest is scrutinized using a sustainability filter.” To do this, Union Investment
uses its own model called UniCube which
screens equities according to environmental, social and corporate governance
criteria. Union Investment also investigates
whether countries comply with sustainability standards and it has developed a
new country rating model for this purpose.
Corruption, democratization and CO2
emissions are some of the most important
parameters. The results of this analysis
are closely integrated into our investment
processes. On this basis, we are able to
implement different sustainability strategies – depending on the preference of the
investor or fund concerned,” concludes
Speich.
Union Investment has twenty years experience in this area and today it is one of the
leading sustainable investment houses.
This expertise also sets high standards for
the future. “Circumstances are constantly
changing, in the capital markets and in the
real economy, so we have to question our
processes for sustainable investment and
improve them all the time,” says the fund
manager.
Union Investment’s policy of increasing
shareholder engagement has achieved a
great deal to date, but it still has a long
way to go. “It is the same for us as for
every company – a detailed, lengthy and
complex process,” says Speich, speaking
from his own years of practical experience.
Together with his colleagues he continues
to work every day on providing companies
with new impetus for their journey toward
more sustainability. And he gladly takes
advantage of the public awareness generated at annual shareholders’ meetings to
highlight the requirements.
33
34
Green investments that pay off
For the past five years, Union Investment has systematically applied a philosophy
of sustainability to new buildings and refurbishments. This benefits the environment,
users, and investors.
“Sustainability in the real-estate business
not only benefits the environment, it also
helps tenants and the investors on whose
behalf we invest in real estate,” says Dr.
Reinhard Kutscher, Chief Executive Officer
of Union Investment Real Estate GmbH
with conviction. For this reason, Union
Investment’s real-estate subsidiary has applied sustainability criteria to the development of its portfolio since 2007 – for new
builds, conversions and when refurbishing
property in its portfolio.
The EMPORIO on Dammtorwall, one of
Hamburg’s landmark buildings, is a good
example. Unilever, which commissioned
the construction of the high-rise in 1963
and was later a long-term tenant, moved
out in 2009. Union Investment investigated all the options for the building,
which has been part of the portfolio in its
UniImmo: Deutschland open-ended realestate fund since 1989. It quickly realised
that selling or re-letting the property in
a prime location in Hamburg’s Neustadt
district without refurbishing it was out of
the question. Complete revitalization
was needed. The challenge was that the
EMPORIO Tower was under a preservation
order. “In the space of three years, the
building was gutted from top to bottom
and the interior completely rebuilt with
cavity floors, a warm and cold ceiling
system and state-of-the-art lighting and
plumbing,” explains Dr. Bernd Schade,
Head of Real Estate Project Management
at Union Investment Real Estate. The
appearance of the heritage-listed exterior
remained intact – although it was brought
up to the latest energy standards with
a double-skin façade that even allows
windows to be opened for ventilation. The
painstaking revitalization enabled heating
costs to be cut by up to 60 percent and
CO2 emissions to be reduced by around
two thirds. A peak value of 90 percent
The heritage-listed EMPORIO on Dammtorwall is one of Hamburg’s landmark buildings.
35
Sustainability in the real-estate sector benefits more than
just the environment.
Dr. Reinhard Kutscher
should be possible for energy recovery,
which is good news for the new tenants
whose utility costs, previously more than
À10 per square metre, are expected to
fall by around 50 percent. The sustainable
philosophy was not restricted to the building itself: the fact that only environmentally friendly, ISO 14001 certified service
providers were employed shows that a
holistic approach is taken to sustainability.
Everything points to this well planned
refurbishment receiving LEED Core and
Shell 2.0 certification in 2012.
ants. “We required tenants to use things
like the built-in cooling equipment and we
also created a kind of instruction book for
the tenants,” says Schade. Most of them
have met this requirement to use environmentally friendly materials.
Sustainability is enshrined in Union Investment’s plans for new buildings – such
as the Rhein-Galerie shopping mall in
Ludwigshafen. The fund management
company purchased the real estate at the
development phase and used it as a pilot
project for certification during the development of the project. Union Investment met
the highest requirements for the building’s
outer shell, insulation and air conditioning
system, and set new standards in terms of
its end-to-end approach to sustainability
that included the involvement of the ten-
Compared with Germany, the idea of sustainability is much less prevalent in other
countries. Despite this, Union Investment
launched a model project in the Turkish
city of Kayseri where a shopping mall was
built on the old site of a premier-league
football stadium. Union Investment started
the certification process for the Forum
Kayseri during the construction phase,
but the Turkish construction and process
standards had to be brought in line with
the requirements of the UK’s BREEAM
certification. The ambitious project suc-
36
Eighteen months after its opening, the
shopping mall, which covers an area of
almost 40,000m², is fully let. The German
Sustainable Building Council (DGNB) has
awarded Union Investment its gold certificate for the project.
ceeded so well in meeting requirements
for energy efficiency, natural ventilation,
natural lighting and the use of rainwater
and local materials that BREEAM awarded
the building its ’very good’ rating in
March. The retail tenants also appreciate
its central location, large catchment area
and low utility costs. When the center
opened in December 2011, all 161 shops
had been fully let.
Although the EMPORIO, Rhein-Galerie
and Forum Kayseri projects are all very
different – they demonstrate what is
environmentally possible and financially
viable. In 2011, Union Investment Real
Estate received the Scope Special Award in
the sustainability category for its relentless pursuit of sustainability. For Chief
Executive Officer Kutscher, the idea of
sustainability remains the gold standard
for business activities: “The aims of the
environmental management system we
introduced in 2011 include exceeding
minimum legal requirements, achieving
continuous improvements and acting as a
role model in the real-estate sector.”
37
We improve
Proactively protect the environment. Review and optimize internal processes.
Strive for sustainable procurement.
Use resources sparingly. Always seek to improve.
Christoph Drewek, Senior Account Manager, signs up new institutional customers and manages
relationships with religious institutions and church banks throughout Germany. Business trips are
part of his day-to-day job, because personal contact is the only way to obtain the information he
needs for customized, solutions-based investment strategies.
38
39
40
From a simple idea to a huge impact
Double-sided printing, using hydroelectric power, traveling by train
to visit customers – just some of the many simple improvements
that together bring about sustainability.
Smoking chimneys and toxic waste water
are nowhere to be seen at Union Investment. Its day-to-day business revolves
around the financial markets, funds and
making more of investors’ money. The
most important tool used by its 2,443
employees is the computer: fund managers
analyse global markets; backoffice units
manage customer data and investors’
deposits; communications and marketing departments write copy and design
brochures. Meetings with institutional
investors and partner banks in the cooperative financial network are also everyday
occurrences.
One thing is for sure: Union Investment
has a significantly lower direct impact on
the environment than the manufacturing
sector, but the power for the computers
and buildings, the CO2 emissions attributable to staff business trips, the consumption of paper and other raw materials
all definitely have consequences for the
environment. What’s more, the companies in which Union Investment invests
on behalf of its investors also affect the
environment. Pollution can quickly create
cost pools on companies’ balance sheets
as the result of regulatory pressure alone,
such as the plan to force CO2 emitters to
purchase certificates to offset their carbon
emissions.
Union Investment therefore has a whole
range of reasons for close scrutiny. The
sparing use of resources in day-to-day
business is vital from a responsibility
perspective as well as for financial reasons.
In summer 2010, the Board of Managing Directors approved a company-wide
environmental policy. Its six principles
serve as guidance for the use of resources
within the company and the procurement
of services from external providers. A short
time later, the company introduced an
environmental management system to
monitor the use of energy sources, from
hydroelectric power to the fuel for company cars. The survey was carried out at
both company and product level. Following
the review, Union Investment laid down
specific targets and measures for environmental protection in its 2011–2015
environmental program. Finally, in May
2011, the environmental management
system was certified compliant with the
ISO 14001 international standard which
means that the sparing use of resources is
continuously improved and documented.
Responsible
product ecology
Many of the targets and measures defined
in the 2011–2015 environmental program
are not scheduled for full implementation
for three years. However, Union Investment is already well positioned in terms
of responsible product ecology. As an
active shareholder, it conducts over 4,000
meetings a year with the companies
in which its funds are invested. It also
focuses on issues of social, environmental
and regulatory corporate management.
In the interest of its investors, the fund
management company alerts manage-
Direct and indirect energy consumption broken down by source
Year
Natural gas
Long-distance
heating
Electricity
Total
Positions
occupied
2007
7,888,006 kWh
974,422 kWh
9,149,012 kWh
18,011,441 kWh
2,044
2008
6,887,352 kWh
869,266 kWh
9,393,980 kWh
17,150,598 kWh
2,148
2009
5,665,548 kWh
971,595 kWh
9,636,604 kWh
16,273,747 kWh
2,140
2010
5,324,886 kWh
849,496 kWh*
9,353,001 kWh
15,527,384 kWh
2,196
Total
25,765,792 kWh
3,664,779 kWh
37,532,597 kWh
66,963,169 kWh
-
*
Excluding site at Hamburg/long-distance heating 2010
41
In 2011, the power consumption for PC
operating systems was cut by 60 percent.
Jens Müller
ment boards to environmental impacts
and risks that they should avoid if they are
to be well equipped for the future. Union
Investment’s equity fund management
specialists have frequently managed to
influence companies’ strategies so that
they take greater account of environmental and social criteria. For example, they
persuaded a major power utility to reject
a high-risk project for the construction of
a nuclear power station, thereby averting
environmental risks. The power supplier
also complied with their recommendation
to record and cut its CO2 emissions.
This had both environmental and financial
benefits for investors, because emissions
trading will become a legal requirement
in 2013 when carbon emission rights will
have to be purchased – resulting in additional costs that would ultimately reduce
shareholders’ earnings. A good reason for
campaigning on behalf of investors for
companies to cut their carbon emissions.
In general, the equity fund managers only
award excellent ratings to business models
that stand up to sustainability analysis
as well as financial analysis. The funds
themselves also prove how seriously Union
Investment takes the issue of product
ecology. It has been offering institutional
clients products with a sustainable focus
for over 20 years. UniNachhaltig Aktien
Global, the first mutual fund to incorporate
environmental and social criteria alongside
financial aspects, was added in October
2009.
Awareness of paper consumption
Energy efficiency in the workplace
Just as Union Investment has high demands
of others, it is also able to demonstrate
measurable success for itself. Since 2009,
over a third of the direct energy needs
of all Union Investment Group offices in
Germany have been met by gas and longdistance heating; and only hydroelectric
power has been used since January 2011.
Measured against its previous electricity
consumption, a saving of 2,467.3 tonnes
of CO2 has been made within one year.
That’s not all though: “Last summer, all
workplaces were supplied with new computers, monitors and printers,” says Jens
Müller, a member of the environmental
management team. “In line with our policy
of sustainable procurement management, we made it a specific requirement
of the tendering process that the new
hardware had to be as environmentally
friendly as possible and have EPEAT Gold
Year-on-year energy savings resulting from environmentally
aware usage and efficiency enhancements
*
Level or Blue Angel certification. In 2011,
our power consumption for PC operating
systems was cut by 60 percent, simply by
replacing hardware and optimizing energy
settings!”
Union Investment’s annual paper
consumption has virtually halved. Since
2007, the amount of paper used has fallen from 2,007 tonnes to 1,114 tonnes.
“Most messages, loan applications and
documents are created digitally,” says
Müller. Even minor improvements have
a major impact: “Many staff members
already use double-sided printing, which
saves a huge quantity of paper and has
made these enormous savings possible.”
Most of the paper Union Investment now
buys is FSC or PEFC certified, or is recycled. In 2011, the proportion of recycled
paper to total paper consumption was 11
percent.
Carbon-neutral business travel
Signing up new customers is one of
Union Investment’s key goals but as the
number of customers grows so does the
Paper consumption and use of
recycled paper at Union Investment
Year
Natural gas
District heating
Electricity
Total
Year
2009
2008
1,000,654 kWh
105,156 kWh
No saving
860,843 kWh
Total paper consumption (t)
1,114
2009
1,221,804 kWh
No saving
No saving
876,851 kWh
FSC or PEFC certified (t)
600
2010
340,661 kWh
–*
283,603 kWh
746,363 kWh
Recycled paper – excluding paper hygiene products (t)
120
Uncertified, non-recycled paper (t)
394
Cannot be shown, as offices in Hamburg were not recorded in 2007
42
number of business trips. In order to keep
CO2 emissions as low as possible, the
company has reached a carbon-offsetting
agreement with the German railways.
For around 1 percent of travel costs,
Deutsche Bahn feeds the same amount
of power from regenerative sources into
the rail power network as each business
trip consumes. In this way, 112.9 tonnes
of carbon was offset for business travel
alone in 2011.
for making Union Investment even more
environmentally friendly – within reasonable limits, of course!”
with legal requirements, the waste is
sorted into hazardous and non-hazardous
substances.
Sustainable procurement
Eco-aware employees
Greater consciousness of the environment
starts with each individual staff member,
so Union Investment has developed an
online training course to raise awareness. “Over 90 percent of the workforce
have already used the voluntary training
course,” says Müller. “We have also set up
an email address to which staff members
can send suggestions for further action.”
Regular internal audits also take place in
environmentally relevant departments.
Checks are made to determine whether
they comply with DIN EN ISO 14001 specifications. As Ansgar Löb, one of twelve internal auditors, explains: “Together, we try
to find out where there is further potential
Union Investment also focuses on sustainable procurement management in its
purchasing activities. Selecting a third
party from which to buy a product or
service involves more than just financial
and content-related criteria. Sustainability
is also incorporated into an evaluation
matrix. If analysis shows that two firms are
equally well qualified and their pricing is
similar, Union Investment selects the company with the more sustainable product or
service.
Considerate waste disposal
Environmental management at
every stage of the process chain
These examples alone demonstrate
that Union Investment’s environmental
management system is very quickly taking
effect at every stage of the process chain,
from tendering and procurement to use
and disposal. The company is not resting
on its laurels, though: “Having successfully
introduced the environmental management system, it is now a matter of continuous improvement,” says Peter Hasselbach,
Union Investment’s environmental officer.
Staff members and internal auditors will
also play a key role in the future.
Waste disposal also complies with strict
environmental requirements. The disposal
of all waste is noted in a waste register
and given a unique reference number.
An exact description of the waste, the
date, quantity, waste disposal company
and expiry date of the waste disposal
company’s environmental certificate is
recorded in the register. In accordance
Total direct, indirect and other greenhouse gas emissions
by weight
Waste produced by Union Investment
broken down by type
CO2 (tonnes)
Scope*
2009
Vehicle fleet (fuel consumption)
1,709.7
Scope 1
Waste paper (t)
Electricity consumption
4,400.4
Scope 2
Mixed packaging (t)
3.38
Consumption of natural gas and long-distance heating
1,565.4
Scope 2
Residual waste (t)
90.5
194.9
Scope 3
Other
1,485.4
Scope 3
Florescent tubes (kg)
Letter mail
620.2
Scope 3
Used batteries (kg)
15
Parcel mail
146.3
Scope 3
Bulky waste (t)
9.4
2009
Paper consumption
Business travel
Total carbon footprint
*
10,122.3
Data storage media (120-liter container)
Waste
134.2
60
1
As defined by Greenhouse Gas Protocol (GHG Protocol)
43
We transform
Be committed to corporate social responsibility.
Allow others to share in our success. See the company as part of a whole.
Share our knowledge.
Margarita Ahrweiler, Senior Communications Manager, is involved in the mitMenschen initiative
that has been established at Union Investment since 2006. Union Investment employees have joined
over 100 projects to support children, young people and others whose life is not always easy.
44
45
46
Retire without worrying
As one of Germany’s biggest asset managers, Union Investment
is not only responsible for its own investors and partners, it also
has a duty toward society in general. For this reason, the company
supports socially relevant projects, and retirement pensions are of
vital importance.
At present, virtually nothing preoccupies
German citizens as much as their retirement pensions. Surveys show that many
people fear for their financial security in
retirement due to uncertainty over the
future of Europe and concerns about
inflation. At the same time, the majority of
people in Germany avoid thinking too hard
about the issue – often because they feel
insufficiently informed about it. Now is the
time for more people to take out private
pensions, because the state is gradually
withdrawing from pensions and making
private citizens increasingly responsible.
“Unfortunately, many people in our society
have not yet realised they have to take
action themselves,” says Hans Joachim
Reinke, Chief Executive Officer of Union
Investment. Work is urgently needed to
educate them. “We want to do our bit
to raise awareness,” continues Reinke.
Consequently, the company published its
second “Pensions Atlas” for Germany last
year. The level of response to the study,
which was produced by Freiburg University’s Research Center for Generational Contracts, took all those involved by surprise.
Thanks to extensive media coverage, more
than 30 million German citizens were
aware of the Pensions Atlas and there was
great interest from several government
ministries. Created by Professor Bernd
Raffelhüschen, a leading researcher into
the ageing population, and his co-author
Dr. Jörg Schoder, the atlas illustrates the
current status of Germans’ pension provisions in the form of a map showing differences by region, age, gender and income.
The study showed that Union Investment
customers take greater advantage of
subsidized Riester pensions than all other
investors in Riester savings products. “This
result shows us that we have given our
customers comprehensive, indepth advice
about a subject as important as retirement
pensions,” enthuses Reinke.
However, it also demonstrates that the
extent to which Germans pay attention to
their retirement pension largely depends
on how well their financial advisor has
explained the subject. Detailed information and customer contact are essential. In
addition to sponsoring academic studies,
Union Investment also organizes around
a thousand customer events every year in
conjunction with its local partner banks.
“For us and our partner banks in the
cooperative financial network, this is a
crucial contribution to establishing and
maintaining long-term customer relation-
Professor Bernd Raffelhüschen presents the results of his pensions study produced by Freiburg University’s Research
Center for Generational Contracts. Together with Union Investment, the research professor is committed to improving
pension provision among the general population.
47
ships,” says Reinke. The events across the
regions are enormously popular. Between
200 and 1,000 investors attend them
to meet and talk to professionals such
as fund managers, capital-markets and
pensions specialists and even members
of Union Investment’s Board of Managing Directors. They explain the subject of
retirement pensions and its many aspects
and are on hand to answer questions
about appropriate funds-based products.
An informative evening with a panel of
high-caliber experts run by the Volksbank
credit cooperative in Weiden, Bavaria, in
early February was a good example. It attracted an audience of a thousand to hear
speeches about the future of Europe by
Jens Wilhelm, a member of Union Investment’s Board of Managing Directors, and
economist Professor Wolfgang Gerke.
Events such as this clearly add value for
customers but ultimately both parties
benefit: “Face-to-face contact enables our
specialists to get a much more accurate
view of what is currently concerning
investors,” stresses Chief Executive Officer
Reinke. This dialog has also revealed that
women approach the subject of investment
and retirement pensions quite differently
from men. Consequently, Union Investment supports special events tailored to
the needs of female investors, such as one
run by Volksbank Lahr. In 2011, 1,600
women attended Ladies Night in the
unusual surroundings of Europapark Rust
theme park, where families usually enjoy
a day out.
The company also explains the subject
of retirement pensions to specific target
groups such as school students. “Fit for
funds,” a board game developed by Union
Investment management trainees, is one
method used. A cross between Monopoly
and Who Wants to be a Millionaire, its
intention is to teach young people about
finance in an entertaining way. Two
teams compete with each other and test
their knowledge in seven different areas,
including retirement pensions and savings.
It was tested out by the twelfth grade
at a commercial high school in Dreieich,
Hessen.
Left-hand page: Union Investment fund manager Nicole Wichmann at the Ladies Night customer
event (top). Member of Union Investment’s Board of Managing Directors Jens Wilhelm at an
information evening organized by Volksbank Weiden (below, second from the right).
Right-hand page: Twelfth-grade students at a commercial high school in Dreieich have fun increasing
their knowledge of retirement pensions.
48
We want to do our bit to raise people’s
awareness.
Hans Joachim Reinke
49
50
Objectives, key facts and figures of
Union Investment’s real-estate portfolio
51
1. The goal is transparency
“Attend the present to deal with the past; thus you
grasp the continuity of the way.” Although it dates
back to ancient times, Chinese philosopher Lao Tzu’s
statement gets to the heart of sustainable real-estate
management today. To achieve continuous improvement in the sustainability of a real-estate portfolio,
consumption data for heat, power, water and waste
has to be recorded and analyzed, which enables areas
with the potential for improvement to be identified.
This is not an easy undertaking for Union Investment
Real Estate, Germany’s second biggest open-ended
real-estate fund manager, which has a global portfolio
of 301 properties. But the effort is worthwhile, because
a real-estate portfolio with a sustainable focus creates
added value for both investors and tenants. This is
why Union Investment’s real-estate subsidiary has set
itself the following targets as part of the Group’s CSR
strategy: it aims to have reviewed the sustainability of
its widespread real-estate portfolio by 2015, to make
continuous improvements in its real-estate holdings
and to publish the results of its actions every year.
In order to achieve these targets, Union Investment
is focusing more closely on obtaining certification
for its properties in line with national and international standards. It consistently reviews its existing
real-estate portfolios and new purchases in terms
of sustainability criteria. The findings of experts in
sustainable real estate have been incorporated into
the management systems and evaluation tools it has
developed. These tools are used for the systematic
analysis of its real-estate portfolio in terms of both
quality and quantity. Only by recognizing the inherent potential of a real-estate portfolio is it possible to
identify the right measures for each property at the
right point in time to achieve a sustainable focus for
the entire portfolio – thereby reducing utility costs for
tenants and optimizing returns for investors.
A real-estate portfolio with a sustainable focus not
only benefits tenants and investors, it also helps the
environment: the developed proprietary portfolio
sustainability management (PSM) system captures all
property-specific consumption data and highlights
areas where properties have the potential for optimization, such as energy and water consumption. It also
enables Union Investment to introduce measures for
a more efficient use of resources. Portfolio sustainability
management forms the foundation on which the longterm sustainability of Union Investment’s real-estate
portfolio is based.
52
PSM is firmly integrated into standard asset and
property management processes at Union Investment,
and it ensures that the portfolio is analyzed on an
annual basis. The management system follows up
property-specific targets and the effect of optimizing
the operation of properties. Experts constantly
monitor consumption data for buildings, as well
as the achievement rates for the agreed targets
and measures and their impact.
2. Portfolio sustainability
management
2.1. Methodology and initial portfolio review
Using its portfolio sustainability management system,
Union Investment aims to have collected consumption
data for 75 percent of its entire portfolio in an incremental basis by 2015. During the first stage, in 2012,
it selected a subportfolio of 187 properties for review.
They were representative of the portfolio as a whole
in terms of use, age category of building and fund
membership. Properties that were under construction
or being remodeled were not included in the analysis,
nor were residential buildings because they accounted
for a very small proportion of the overall portfolio.
Data for final energy consumption, primary energy
consumption, CO2 emissions, water consumption and
volume of waste was computed for 168 properties in
the real-estate portfolio. The data for 19 of the properties in the selected subportfolio was extrapolated
because there was insufficient information for analysis.
The portfolio under review thus provided specific key
performance indicators (KPIs) that could be used as
reference material for extrapolation to reflect the
entire portfolio of 282 properties with a market value
of À18.7 billion. It was also possible to extrapolate
absolute values. Given the international orientation
of the portfolio, Union Investment has adjusted the
consumption data for aspects that were specific to
countries, properties and uses. A wide range of building characteristics, such as occupation density, time in
use, climate, vacancy rates and special uses that affect
the environmental performance of a property, were
also taken into account when capturing and analyzing
the data. The consumption data below was prepared
in this way and it can be evaluated with reference
to benchmarks. Carbon footprints and water footprints can be displayed at property, fund or portfolio
level. The data used for the analysis of environmental
performance was captured for the entire floor area of
each building and includes consumption by tenants.
The subportfolio reviewed…
Key Figures
The subportfolio’s carbon footprint was 279,263.6
t CO2e/year (absolute CO2 emissions) and it comprised
the carbon emissions attributable to the buildings’
heat and power consumption. This was equivalent
to annual emissions of 62.9 kg CO2e per square meter.
Extrapolated to reflect the total portfolio, absolute
CO2 emissions equated to 351,487.0 t CO2e/year.
… comprised 187 properties.
… was equivalent to a total area of 4,274,253 m²
(around 78 percent of the area of the entire
portfolio).
… included 125 office buildings, 31 retail buildings,
19 hotel buildings and 12 logistics buildings.
… was estimated by experts to have a market value
of around À14 billion (approx. 75 percent of
the value of the entire portfolio).
Portfolio under review
Type of use
Number Appraised
of prop- value*)
erties
(Àmillion)
Floor area*)
(m²)
Floor
area*)
(%)
Office buildings
125
8,457
2,363,372
55
Retail buildings
31
3,715
891,507
21
Hotel buildings
19
1,450
432,464
10
Logistics buildings
12
385
586,910
14
187
14,007
4,274,253
100
Floor area*)
(m²)
Floor
area*)
(%)
Total
Extrapolated portfolio
Type of use
Office buildings
189
11,200
2,975,101
54
Retail buildings
53
5,381
1,224,053
22
Hotel buildings
22
1,556
466,496
9
Logistics buildings
18
543
793,531
15
282
18,680
5,459,181
100
Total
*)
Number Appraised
of prop- value*)
erties
(Àmillion)
At December 31, 2011
2.2 Material findings
The 187 buildings reviewed required a supply of
686.1 GWh/year for energy and power (absolute
final energy consumption). Consumption per square
meter was therefore equivalent to 242.3 kWh. Office
buildings accounted for about 62 percent of total
energy consumption (427.5 GWh/year). The proportion
consumed by retail buildings was 22 percent, while
hotels and logistics buildings accounted respectively
for 11 and 5 percent of final energy consumption.
Extrapolating these figures to reflect the whole
portfolio of 282 properties produces an absolute
final energy consumption rate of 862.2 GWh/year.
The absolute primary energy consumption rate for the
portfolio under review was 1,583.3 GWh/year, which
reflected the buildings’ direct and indirect primary
energy consumption, and equated to consumption
of 570.1 kWh per square meter. Extrapolated to
reflect the entire portfolio, consumption amounted
to 1,985.1 GWh/year.
Total water consumption by the subportfolio under
review, including all supply sources, amounted to
1,873,556.9 m³/year (absolute water consumption).
On an annualized basis per square meter, this was
equivalent to consumption of 0.538 m³, which
represented an absolute water consumption rate of
2,356,006.7 m³/year when extrapolated to reflect
the portfolio as a whole.
The total amount of waste produced by all the buildings reviewed that was recycled, sent to landfill sites
or incinerated, amounted to 28,075.6 t/year (absolute
volume of waste). This was equivalent to an annual
waste volume of 6.46 kg per square meter. Extrapolated to reflect the whole portfolio, the absolute waste
volume was 35,097.7 t/year.
2.3 KPIs in detail
The five KPIs listed below were selected with the
aim of producing the most comprehensive possible
environmental assessment of the real-estate portfolio.
They comply with the internationally recognized
sustainability reporting standards of the Global
Reporting Initiative (GRI) and the relevant supplement
for companies in the real-estate sector (Construction
and Real Estate Sector Supplement, CRESS). Accordingly, the KPIs have been presented as absolute values
(total consumption with no reference to area) and
specific values (quotient of quantity and consumption
divided by area).
Percentage of total portfolio
floor area reviewed
22%
Number of buildings in total
portfolio reviewed
78%
36%
Q Floor area reviewed
Q Buildings reviewed
Q Not reviewed
Q Not reviewed
64%
53
Breakdown of total
portfolio floor area
by building use
Breakdown of floor area in
portfolio under review by
building use
0.2%
54.4%
14.5%
8.5%
13.7%
0.0%
55.3%
Specific final energy consumption
Office buildings (125 properties) by type of consumption and age of building
All values in kWh/(m²/year)
500
10.1%
408.7 kWh/
(m²/year)
400
300
22.4%
53.6%
200
181.2 kWh/
(m²/year)
100
45.9%
20.9%
46.4%
54.1%
0
Q Office
Q Logistics
Q Retail
Q Hotel
Q Residential
Q Office
Q Logistics
Office buildings:
Pre-1970
14 properties
Q Retail
Q Hotel
Q Residential
Office buildings:
1970 –1989
17 properties
275.3 kWh/
(m²/year)
275.5 kWh/
(m²/year)
40.0%
40.9%
60.0%
59.1%
Office buildings:
1990 –1999
32 properties
Office buildings:
2000 to date
62 properties
Retail buildings (31 properties) by type of consumption and age of building
Breakdown of total portfolio
floor area by year of construction
Breakdown of floor area of
portfolio under review by year
of construction
500
59.3%
58.0%
10.5%
400
377.7 kWh/
(m²/year)
13.3%
300
25.5%
10.2%
12.2%
202.6 kWh/
(m²/year)
196.1 kWh/
(m²/year)
210,3 kWh/
(m²/year)
33.2%
27.9%
28.6%
66.8%
72.1%
71.4%
Retail buildings:
1970 –1989
6 properties
Retail buildings:
1990 –1999
2 properties
Retail buildings:
2000 to date
18 properties
200
100
74.5%
0
18.3%
Q Pre-1970
Q 1990 –1999
Q 1970 –1989
Q 2000 to date
Retail buildings:
Pre-1970
5 properties
18.2%
Q Pre-1970
Q 1990 –1999
Q 1970 –1989
Q 2000 to date
Hotel buildings (19 properties) by type of consumption and age of building
Breakdown of total portfolio
floor area by fund
Breakdown of floor area of
portfolio under review by fund
1.3%
8.2%
16.3%
0.4%
6.6%
17.2%
22.5%
500
400
300
24.2%
221.4 kWh/
(m²/year)
200
46.4%
100
0
53.6%
Hotel buildings:
Pre-1970
3 properties
14.4%
1.2%
248.3 kWh/
(m²/year)
44.4%
55.6%
Hotel buildings:
1970 –1989
5 properties
265.6 kWh/
(m²/year)
313.3 kWh/
(m²/year)
41.1%
46.2%
53.8%
58.9%
Hotel buildings:
1990 –1999
3 properties
Hotel buildings:
2000 to date
8 properties
11.9%
36.1%
0.3%
39.4%
Logistics buildings (12 properties) by type of consumption and age of building
Q UniImmo: Deutschland
Q UniImmo: Europa
Q DIFA Fonds Nr. 3
Q UniInstitutional European Real Estate
Q UniImmo: Global
Q DEFO Immobilienfonds 1
Q UII Shopping Nr. 1
Q UniImmo: Deutschland
Q UniImmo: Europa
Q DIFA Fonds Nr. 3
Q UniInstitutional European Real Estate
Q UniImmo: Global
Q DEFO Immobilienfonds 1
Q UII Shopping Nr. 1
500
400
300
54
69.9 kWh/
(m²/year)
n.a.
36.4%
63.6%
12.4%
87.6%
Logistics buildings:
Pre-1970
0 properties
1970 –1989
2 properties
1990 –1999
1 property
100
0
Specific final energy consumption
(kWh/m²/year)
Specific final energy consumption represents the
energy consumed for heat and power relative to the
energy reference area of the buildings. Adjusting the
final energy consumption data for climatic and user
differences enabled the values for each property in the
total portfolio to be compared with each other. They
54.8 kWh/
(m²/year)
200
93.7 kWh/
(m²/year)
31.4%
68.6%
2000 to date
9 properties
Q Energy consumption figure for power Q Energy consumption figure for heat
are broken down by building type.
Analysis by type of use shows that specific final energy
consumption is almost four times higher for newer
hotels as for logistics buildings in the same age
category. Final energy consumption in hotels and
office buildings had continued to rise to the reporting
date, although specific final energy consumption in
retail buildings remained consistent over time. While
energy consumption in hotel buildings was equally
distributed between heat and power, power consumption in retail and logistics buildings generally averaged
at about 70 percent, due to the increased use of electricity for air conditioning and lighting in retail buildings and extremely high consumption for the operation of power-generating plants in logistics buildings.
However, the figure for logistics buildings was below
the average for the portfolio as a whole, while those
for buildings in the hotel and office categories were
above the average.
Breakdown of absolute final energy consumption (686.1 GWh/year)
of portfolio under review (187 properties) by type of consumption
and building use
All values in GWh/(/year)
Specific primary energy consumption
1,000
800
670.4 kWh/
(m²/year)
600
21.8%
400
100
51.6%
0
Office buildings
125 properties
26.3%
70.6%
73.7%
Office buildings:
1970–1989
17 properties
Office buildings:
1990-1999
32 properties
Office buildings:
2000 to date
62 properties
966.4 kWh/
(m²/year)
1,000
16.8%
490.8 kWh/
(m²/year)
489.1 kWh/
(m²/year)
83.2%
10.1%
24.0%
560.5 kWh/
(m²/year)
26.1%
89.9%
73.9%
Retail buildings:
1990 –1999
2 properties
Retail buildings:
2000 to date
18 properties
76.0%
0
48.4%
200
29.4%
380.6 kWh/
(m²/year)
35.0%
617.1 kWh/
(m²/year)
200
400
300
Office buildings:
Pre-1970
14 properties
400
427.5
GWh/year
692.3 kWh/
(m²/year)
65.0%
600
600
500
78.2%
0
800
700
Key Figures
Specific primary energy consumption
(kWh/m²/year)
Specific primary energy consumption is the total of
all direct and indirect primary energy consumption
relative to the energy reference area. The total figures
200
Absolute final energy consumption (GWh/year)
Absolute final energy consumption is the total volume
of energy used for supply buildings with heat and
power. The chart illustrates the breakdown between
140.5
GWh/year
42.9%
86.0
GWh/year
62.8%
57.1%
37.2%
40.3%
59.7%
Retail buildings
31 properties
Hotel buildings
19 properties
Logistics buildings
12 properties
Retail buildings:
Pre-1970
5 properties
32.1
GWh/year
Retail buildings:
1970 –1989
6 properties
1,000
Breakdown of absolute primary energy consumption (862.2 GWh/
year) for total portfolio (282 properties) by type of consumption
and building use (extrapolated)
800
600
All values in GWh/year
400
700
200
600
48.4%
300
187.0
GWh/year
200
100
51.6%
42.9%
57.1%
0
Office buildings
189 properties
(extrapolated)
Q Total power
47.9%
860.6 kWh/
(m²/year)
720.0 kWh/
(m²/year)
615.5 kWh/
(m²/year)
45.8%
40.0%
44.8%
52.1%
54.2%
55.2%
Hotel buildings:
Pre-1970
3 properties
Hotel buildings:
1970 –1989
5 properties
Hotel buildings:
1990 –1999
3 properties
60.0%
0
538.0
GWh/year
500
400
649.7 kWh/
(m²/year)
Retail buildings
53 properties
(extrapolated)
92.5
GWh/year
62.8%
44.7
GWh/year
37.2%
40.3%
59.7%
Hotel buildings
22 properties
(extrapolated)
Logistics buildings
18 properties
(extrapolated)
Q Total heat
1,000
800
600
200
0
186.2 kWh/
(m²/year)
6.1%
125.8 kWh/
(m²/year)
400
heat and power.
Energy consumption in office buildings was disproportionately higher than the reference area of the portfolio
attributable to them, while energy consumption in
logistics buildings was significantly lower.
Hotel buildings:
2000 to date
8 properties
n.a.
20.9%
79.1%
Pre-1970
0 properties
1970 –1989
2 properties
238.5 kWh/
(m²/year)
16.3%
93.9%
83.7%
1990 –1999
1 property
2000 to date
9 properties
Q Specific primary energy consumption for power
Q Specific primary energy consumption for heat
55
for specific primary energy consumption reflect the
data for specific final energy consumption.
The ratio of primary energy consumption for power
to final energy consumption for power had risen by
an average of approximately 10 –15 percent, with
the exception of office buildings in which the ratio of
primary energy to final energy remained unchanged.
Logistics buildings were generally below the portfolio
average, while office buildings and hotels were above
the average.
Absolute primary energy consumption
(GWh/year) broken down by direct and indirect
primary energy sources
Absolute primary energy consumption shows the
quantity of primary energy consumed both directly
and indirectly. It is calculated by multiplying the final
energy consumption data by the relevant primary
energy factors.
Specific CO2 emissions (kg CO2e/m²/year)
Specific CO2 emissions relates the absolute CO2e emissions to the energy reference area. The CO2 emissions
factors used refer to the Greenhouse Gas Protocol.
Specific CO2 emissions
All values in kg CO2e/(m²/year)
125
100
75
50
78.1
kg CO2e/(m²/year)
40.9%
49.0
kg CO2e/(m²/year)
26.5%
25
59.1%
59.6
kg CO2e/(m²/year)
69.9
kg CO2e/(m²/year)
18.3%
23.5%
81.7%
73.5%
76.5%
Office buildings:
1970 –1989
17 properties
Office buildings:
1990 –1999
32 properties
0
Office buildings:
Pre-1970
14 properties
Office buildings:
2000 to date
62 properties
Breakdown of absolute primary energy consumption
(1,583.3 GWh/year) of portfolio under review (187 properties)
by direct and indirect primary energy source
100
18.1%
75
27.6%
514
kg CO2e/(m²/year)
81.8%
18.7%
72.4%
81.3%
0
353.7 GWh/year
11.7%
200
Retail buildings:
Pre-1970
5 properties
236.5 GWh/year
7.5%
88.3%
92.5%
Retail buildings
31 properties
Hotel buildings
19 properties
0
Office buildings
125 properties
88.8
kg CO2e/(m²/year)
18.2%
25
11.9%
88.1%
52.1
kg CO2e/(m²/year)
81.9%
600
400
103.7
kg CO2e/(m²/year)
50
1,000 917.4 GWh/year
800
125
75.6 GWh/year
22.3%
77.7%
Logistics buildings
12 properties
Retail buildings:
1970 –1989
6 properties
Retail buildings:
1990 –1999
2 properties
Retail buildings:
2000 to date
18 properties
125
Breakdown of absolute primary energy consumption
(1,985.1 GWh/year) of total portfolio (282 properties) by direct
and indirect primary energy source (extrapolated)
100
75
59.4
kg CO2e/(m²/year)
50
27.4%
25
1,200 1,154.6 GWh/year
1.000
Hotel buildings:
Pre-1970
3 properties
80.5
kg CO2e/(m²/year)
21.8%
37.1%
77.0%
78.2%
62.9%
Hotel buildings:
1970 –1989
5 properties
Hotel buildings:
1990 –1999
3 properties
Hotel buildings:
2000 to date
8 properties
470.6 GWh/year
600
88.1%
200
11.7%
88.3%
0
Office buildings
189 properties
(extrapolated)
Q Indirect primary energy
Retail buildings
53 properties
(extrapolated)
254.4 GWh/year
7.5%
92.5%
Hotel buildings
22 properties
(extrapolated)
105.3 GWh/year
22.3%
77.7%
Logistics buildings
18 properties
(extrapolated)
Q Direct primary energy
125
100
54.4
kg CO2e/(m²/year)
75
18.1
kg CO2e/(m²/year)
50
Broken down by user group, the percentage of primary
energy consumed in virtually all cases was slightly above
that attributable to the portfolio area occupied by each
user group. Logistics buildings were again the exception,
with their percentage share of absolute primary energy
consumption accounting for just a third of the percentage of the portfolio area attributable to logistics.
56
23.0%
72.1
kg CO2e/(m²/year)
0
11.9%
800
400
72.6%
80.4
kg CO2e/(m²/year)
25
0
24.8
kg CO2e/(m²/year)
10.0%
90.0%
21.6%
7.8%
n.a.
78.4%
92.2%
Pre-1970
0 properties
1970 –1989
2 properties
1990 –1999
1 property
2000 to date
9 properties
Q Specific CO2 emissions for power Q Specific CO2 emissions for heat
Like the evaluation of final and primary energy consumption, analysis of CO2 values showed a rising trend
for relatively new office and logistics buildings. Retail
and hotel buildings, where values were relatively
stable, were the exception in this case. The proportion
of CO2 used for power had risen by about 10 to 20
per cent for office, hotel and retail use compared
with the quantity of primary energy used for power.
The logistics category was again the exception, with
its proportion remaining similar. The CO2 values for
hotels were below the portfolio average and those
for logistics buildings were above it.
Absolute carbon emissions (t CO2e/year)
Absolute carbon emissions show the quantity of
direct and indirect CO2e emissions generated by
the consumption of heat and power, known as the
carbon footprint. The carbon footprint is calculated by
Key Figures
multiplying final energy consumption data by the relevant CO2e emissions factors as defined by the 2010
Greenhouse Gas Protocol. Measured across all user
groups, the proportion of energy used for power had
a direct impact on absolute CO2 values. While the percentage attributable to ‘power’ in the consumption of
final energy averaged 50 – 60 percent, the ratio varied
within the carbon footprint. The effective proportion
attributable to ‘power’ is at 75 – 80 percent.
Specific water consumption (m³ / m² / year)
Specific water consumption represents water
consumption divided by the energy reference area.
All sources of supply were included.
Specific water consumption
Office buildings (125 properties) by age of building
All values in m³/(m²/year)
1.50
1.00
Breakdown of absolute CO2 emissions (279,263.6 t CO2e/year) for
the portfolio under review (187 properties) by type of consumption
and building use
0.50
0
Office buildings:
Pre-1970
14 properties
All values in t CO2e/year
0.52
0.48
0.50
Office buildings:
1970 –1989
17 properties
Office buildings:
1990 –1999
32 properties
Office buildings:
2000 to date
62 properties
0.32
180,000
160,000 158,645.4 t CO2e/year
140,000
Office buildings (31 properties) by age of building
23.6%
120,000
100,000
1.50
80,000
60,000
1.00
60,857.0 t CO2e/year
76.4%
0.50
20.0%
34,568.5 t CO2e/year 25,192.7 t CO2e/year
40,000
80.0%
20,000
0
Office buildings
125 properties
Retail buildings
31 properties
25.4%
10.5%
74.6%
89.5%
Hotel buildings
19 properties
Logistics buildings
12 properties
0
0.45
0.42
Retail buildings:
Pre-1970
5 properties
Retail buildings:
1970 –1989
6 properties
0.22
0.72
Retail buildings:
1990 –1999
2 properties
Retail buildings:
2000 to date
18 properties
Hotel buildings (19 properties) by age of building
Breakdown of absolute CO2 emissions (351,487.0 t CO2e/year) for
the total portfolio (282 properties) by type of consumption and
building use (extrapolated)
180,000
1.0
1.0
0.0
All values in t CO2e/year
200,000
1.14
1.11
1.06
Hotel buildings:
Pre-1970
3 properties
Hotel buildings:
1970 –1989
5 properties
Hotel buildings:
1990 –1999
3 properties
1.25
0
198,926.9 t CO2e/year
23.6%
160,000
Hotel buildings:
2000 to date
8 properties
140,000
Logistics buildings (12 properties) by age of building
120,000
100,000
80,000
76.4%
60,000
1.50
20.0%
40,000
80.0%
20,000
0
Office buildings
189 properties
(extrapolated)
Q CO2 emissions for power
Retail buildings
53 properties
(extrapolated)
10.5%
25.4%
74.6%
89.5%
Hotel buildings
22 properties
(extrapolated)
Logistics buildings
18 properties
(extrapolated)
Q CO2 emissions for heat
1.00
0.50
0
n.a.
0.03
0.10
Pre-1970
0 properties
1970 –1989
2 properties
1990 –1999
1 property
0.25
2000 to date
9 properties
Q Specific water consumption
57
In a comparison of age categories, specific water
consumption was higher for new buildings in virtually
all the types of use reviewed. Only consumption in office
buildings remained consistent across age categories.
Consumption by hotels was approximately 50 percent
higher than the portfolio average while that of logistics
buildings was around 75 percent lower.
Absolute volume of waste (t/year)
The absolute volume of waste is the total quantity
of waste produced in the categories of recycled waste,
landfill waste and incinerated waste.
Breakdown of absolute volume of waste (28,075.6 t/year) for portfolio
under review (187 properties) by type of disposal and building use
All values in t/year
Absolute water consumption (m³/year)
Absolute water consumption comprises the total
quantity of water consumed and it includes all sources
of supply. When extrapolated to reflect the entire
portfolio, it forms the water footprint.
Breakdown of absolute water consumption (1,873,556.9 m³/year)
for portfolio under review (187 properties) by building use
16,000
14,000
10,000
1,000,000
51.8%
7,507.3 t/year
8,000
5,656.5 t/year
6,000
2.3%
4,000
18.1%
62.7%
27.8%
0.6%
11.7%
25.0%
Office buildings
125 properties
Retail buildings
31 properties
2,000
All values in m³/year
13,005.9 t/year
12,000
0
800,000
34.9%
1.1%
1,905.9 t/year
%
25.4%
14.8%
8.0%
18.5%
58.6%
Hotel buildings
19 properties
Logistics buildings
12 properties
38.6%
600,000
400,000
972,629.3
583,766.6
200,000
272,985.0
44,176.0
Hotel buildings
19 properties
Logistics buildings
12 properties
0
Office buildings
125 properties
Retail buildings
31 properties
Breakdown of absolute volume of waste (35,097.7 t/year) for total
portfolio (282 properties) by disposal method and building use
(extrapolated)
All values in t/year
16,369.2 t/year
16,000
Breakdown of absolute water consumption (2,356,006.7 m³/year)
for total portfolio (282 properties) by building use (extrapolated)
14,000
All values in m³/year
10,000
12,000
51.8%
9,987.3 t/year
1,200,000
8,000
2.3%
1,000,000
6,000
18.1%
800,000
4,000
600,000
2,000
1,224,138.7
400,000
200,000
293,722.0
61,538.3
Hotel buildings
22 properties
(extrapolated)
Logistics buildings
18 properties
(extrapolated)
0
Retail buildings
53 properties
(extrapolated)
27.8%
0
776,607.7
Office buildings
189 properties
(extrapolated)
62.7%
Office buildings
189 properties
(extrapolated)
6,086.3 t/year
34.9%
1.1%
25.0%
25.4%
2,654.9 t/year
14.8%
8.0%
18.5%
58.6%
Retail buildings
53 properties
(extrapolated)
Hotel buildings
22 properties
(extrapolated)
Logistics buildings
18 properties
(extrapolated)
0.6%
11.7%
Q Waste, no disposal method indicated
Q Waste incinerated
38.6%
Q Waste taken to landfill
Q Waste recycled
QAbsolute water consumption
When consumption for different building uses was
compared with the percentage of the portfolio area
attributable to them, it was found that consumption
was higher for retail buildings. Logistics properties,
whose absolute values fell far below the percentage
of the portfolio area attributable to them, again represented the use type with the lowest use of resources
in this category.
58
The analysis demonstrated that waste separation and
recycling is carried out in all the usage categories.
The proportion of waste generated by office and retail
buildings that was recycled was significantly above
50 percent. Hotels and retail buildings generated
a significantly higher volume of waste compared
with the percentage of the portfolio area attributable
to them, which contrasted with logistics buildings
where the pro-rata waste volume was well below the
percentage of portfolio area these properties occupy.
2.4 Total values and conclusion
Extrapolation to reflect the entire portfolio produced
the following values for the five KPIs under review:
Absolute values for all KPIs
Values for portfolio Values for total
portfolio
under review
(282 properties)
(187 properties)
Final energy [GWh/year]
Primary energy [GWh/year]
CO2 emissions [t CO2/year]
Water consumption [m³/year]
686.1
862.2
1,583.3
1,985.1
279,263.6
351,487.0
1,873,556.9
2,356,006.7
28,075.6
35,097.7
Volume of waste [t/year]
The specific values across all usage types represented
the averages for the portfolio as a whole:
Key Figures
The environmental performance of the portfolio can
only be evaluated objectively by measuring it against
standard, recognized benchmark values, provided that
they exist. To date, it has not been possible to compare the data collected with objective values for thirdparty portfolios, because suitable benchmarks have yet
to be identified. Ideally, there would be benchmarks
for all usage types and performance values.
For this reason, Union Investment, with its expertise
in real estate and sustainability, actively supports
initiatives that seek to develop sophisticated analysis
methods and robust benchmarks. Together with external
organizations it is working on a benchmarking system
geared toward robust analysis methods that can be
applied globally. The reference portfolio described
above, based on independently computed, qualityassured data, is available for use as a benchmark.
Specific values
Notes about data quality:
Values for portfolio
under review
(187 properties)
Quality assurance – As part of a process-defined,
quality assurance process conducted by independent
Final energy consumption [kWh/(m²/year)]
242.3
third parties, a manual review of data completeness
Energy consumption for power [kWh/(m²/year)]
145.4
and plausibility was carried out. Because values were
Energy consumption for heat [kWh/(m²/year)]
96.9
Total specific primary energy consumption
(kWh/m²/year)
Specific primary energy consumption for power
(kWh/m²/year)
Specific primary energy consumption for heat
(kWh/m²/year)
CO2 emissions [kg CO2/m²/year]
570.1
411.2
158.9
calculated automatically by the software, the minimum level at which data could be input was building
or usage level.
Data completion – In cases where meaningful
consumption data was unavailable, it was added on
62.9
the basis of the average values for the relevant usage
Specific CO2 emissions for power (kg CO2/m /year)
49.1
category. The mechanism developed for this purpose
Specific CO2 emissions for heat [kg CO2/(m²/year)]
13.8
incorporated averages from different sources (such as
2
Water consumption [m³/(m²/year)]
Volume of waste [kg/(m²/year)]
0.538
6.46
the German Energy Conservation Act (EnEV)).
Extrapolation – To streamline the recording of
tenants’ consumption data, 70 percent of rental space
was analyzed and the results extrapolated to reflect
The absolute, extrapolated value for water reflected
the water footprint of the entire portfolio. The carbon
footprint provided the absolute extrapolated value for
CO2 emissions.
the total rental space. Single-tenant properties were
an exception. In general, the absolute consumption
data for the portfolio under review was extrapolated
to reflect the total portfolio using formulas developed
inhouse and built into the software for this purpose.
The analysis of the real-estate portfolio for the 2009
accounting period produced the first detailed summary
of emissions and the use of resources for the representative portfolio under review. One of the first steps
toward focusing Union Investment’s entire portfolio on
sustainability was to set targets at property, fund and
portfolio level on the basis of the data collected, with
the aim of continuously improving the environmental
performance of the buildings, and therefore that of the
total portfolio.
Adjustments – In order to compare values for
different properties, data relating to vacancy rates,
time in use, occupation density and climate was
adjusted to bring it in line with property located in
Germany. Exceptions were the absolute and specific
values for CO2 equivalents – which were not adjusted
because country-specific emissions factors had been
applied – and the values for water and waste, neither
of which were adjusted.
59
3. Sustainability process
the case, a detailed examination is carried out using
financial and environmental factors.
3.1 Analysis and evaluation tools
Survey
…
Survey
Energy
Operational costs
Energy
Resource saving
Predicted saving
Predicted saving
Consumption of energy and
water, waste generated
Reduction in operational costs
(DIN 18960)
Predicted efficiency saving/cost
for all resources and operational costs
Impact of saving
The combination of SI checks for qualitative assessment and PSM for quantitative analysis guarantees
that Union Investment conducts a comprehensive
annual review of its real-estate and portfolio data.
At the same time, it follows up the impact of the actions
it has taken – and it is gradually integrating this performance measure into work processes as a standard
requirement. Union Investment also encourages its
service providers to make improvements that focus
on sustainability when buildings in its portfolio are
being converted or refurbished or major maintenance
work is being carried out. Together with the parties
involved in a project, it formulates binding sustainability targets and finalizes them in a position paper.
However, even minor improvements can have a major
impact. Whenever the analytical tools described above
recognize individual properties with the potential
for greater energy efficiency, a carbon due diligence
process is carried out to identify the measures to be
taken to save energy and cut carbon emissions in the
operation of the building. Union Investment compares
the capital expenditure required with the effect of the
potential energy savings on operational costs; because
energy costs often push up operational costs. If that is
60
Cleaning
Monitoring resources/overheads
Water
Union Investment helps them by supplying the
sustainable investment check (SI check) that
it already uses when carrying out its annual property
quality assessment. Criteria relating to energy and
the environment, water consumption, waste and
recycling, efficiency and flexibility, location quality,
health and well-being are recorded. These criteria
are then assigned different weightings depending on
building use, and this enables Union Investment to
determine and record the qualitative performance of
its real-estate portfolio. The SI check is adapted and
refined on an ongoing basis to bring it in line with
the prevailing criteria for international certification
systems. Conducting an SI check is a mandatory part
of the due diligence process for new purchases. The
check must show that minimum values are being
achieved and that efforts are being made to meet
predefined targets.
Union Investment is currently developing a system for
conducting this examination at property and portfolio
level. It compares the capital expenditure with the savings made on operational costs and also clearly shows
the predicted savings on resources and the reduction
in carbon emissions. Combined with the capture of
consumption data described above, during the capital
expenditure and operational costs monitoring process
the forecast will be used to formulate measures that
will be implemented using the findings, and their
impact will be monitored.
Waste
Union Investment involves all parties in its end-to-end
sustainability strategy for its real-estate portfolio. As
part of its property-management activities it imposes
contractual requirements on service providers to identify quick-fix improvements for fitting out or operating
portfolio properties.
on real
consumption of resources
on real
operational costs
Source: Drees & Sommer, Union Investment – PSM module, December 1, 2011
Key Figures
Example of actions taken at Jägerstrasse 58–60 in Berlin
[À]
[year]
[À]
Static ROI
CO2 emissions
[À/year]
Tenants’ utility
costs
[kWh]
Present value
over 10 years incl.
power paid by
tenants (LCC)
[kWh]
Present value
over 10 years
Operational costs
[kWh]
Capital
expenditure
Fuel saving to 0
[kWh/year]
Fuel requirement
Power
requirement
Environment
Fuel saving
Efficiency
Energy type
heating &
hot water
See table below
Variant*
Energy data
[À] [À/m2/month]
[t/year]
0
Dist. htg./power
451,960
–
162,730
–
231,190
–
–
1,906,320
2,323,600
5.75
193.3
1
Dist. htg./power
451,960
0
154,330
8,400
229,790
150
0.1
1,894,210
2,311,500
5.72
188.6
2
Dist. htg./power
451,960
0
160,930
1,800
230,350
2,470
2.9
1,900,830
2,318,120
5.73
192.3
3
Dist. htg./power
451,960
0
162,330
400
230,900
1,500
5.2
1,904,870
2,322,150
5.75
193.1
4
Dist. htg./power
451,960
0
157,690
5,040
230,170
200
0.2
1,897,700
2,314,990
5.73
190.5
5
Dist. htg./power
384,170
67,790
160,560
2,170
220,800
48,930
4.7
1,845,370
2,262,660
5.49
176.5
6
Dist. htg./power
395,470
56,490
129,500
33,230
224,620
97,850
14.9
1,919,940
2,334,230
5.59
161.9
6A
Dist. htg./power
448,340
3,620
159,760
2,970
228,510
3,800
1.4
1,885,190
2,302,470
5.69
190.8
6B
Dist. htg./power
395,470
56,490
129,500
33,230
224,620
97,850
(3 years)
14.9
1,907,390
2,324,670
5.50
161.9
7
Dist. htg./power
384,170
67,790
144,920
17,810
217,260
53,250
3.8
1,817,720
2,235,010
5.41
168.0
8
Dist. htg./power
336,150
115,810
108,690
54,040
210,690
151,100
7.4
1,831,340
2,248,630
5.24
136.8
S
Dist. htg./power
451,960
0
161,830
900
230,870
9,600
30.0
1,909,350
2,326,640
5.75
192.8
*
Variant
Action
0
Starting point
1
Heating for exterior stairwell shut down
2
Water feature removed/shut down
3
Pressurization equipment removed/shut down
4
Lighting in stairwells reduced/exterior LED lighting
5
Heating system refurbished, hydraulic control
6
Lighting in stairwells reduced/exterior LED lighting
6A
Instrumentation and control equipment refurbished,
switching times adjusted
6B
Instrumentation and control equipment refurbished,
EMS installed // capex in year 3
7
Combination of variants 1 to 5
8
Combination of variants 1 to 6
S
Hot water supply in rental space replaced
Efficiency calculation – determining operational costs
Comparison of operational costs for office space – Variant 8//OSCAR
0
Public
charges
Q Variant 8
Insurance
Q OSCAR
Maintenance
Electricity
Water/sewage
Cleaning
Administration
Janitor
Security/
information
0.13
0.09
0.29
0.24
0.29
0.47
0.31
0.70
0.34
0.19
0.15
Heating
0.14
0.61
0.60
0.40
0.29
0.51
0.57
0.13
0.03
0.30
0.51
0.60
0.70
Specific operational costs/m2/month (À)
Other
ancillary costs
Source: GMW-Ingenieurbüro GmbH; property developer: Union Investment Real Estate GmbH; Project UIR 8093, Jägerstrasse 58 – 60 in Berlin; At November 2011
61
It is becoming increasingly apparent in the sector that,
in the future, real estate which fails to meet sustainability standards will be marked down by the market.
Consequently, it is even more important to highlight
sustainable characteristics when valuing real estate.
Union Investment’s intention when devising a sustainable valuation scoring system was to drive forward
and broaden the debate among real-estate appraisers
about the importance of sustainability.
Its objective is clearly to make the inclusion of transparent sustainability criteria a standard component of
real-estate appraisal reports.
3.2 Investment strategy and due-diligence
process
Union Investment’s objective is to integrate sustainability
fully and systematically into its business processes. This
includes permanently reducing the environmental impact
of its real-estate portfolio while generating long-term
financial returns and gradually working its way toward
a sustainable real-estate portfolio. As part of its environmental management system, sustainable processes are
quality assured and their progress monitored. A sustainability team of inhouse real-estate specialists also
ensures compliance with self-imposed sustainability
standards.
Sustainability has been firmly established in Union
Investment’s business strategy for many years in
the interest of preserving the value of its real-estate
portfolio. Independently of the 22 properties in the
portfolio currently certified as sustainable, many of the
buildings are of proven sustainable quality. Certification helps to create a clearer understanding of sustainability in the real-estate sector, and at the same time
it provides investors and property users with greater
transparency for assessing the sustainable qualities
of properties. It also provides a frame of reference for
the sustainable optimization of buildings, which is why
Breakdown of portfolio properties certified and pre-certified
according to power supply
value at Dec. 2011
Breakdown of properties certified/undergoing certification
according to power supply
value, Jan. 2009 to Dec. 2011
20%
Q Certified/pre-certified properties
Q Non-certified properties
62
32%
Q Certified/pre-certified properties
Q Non-certified properties
Union Investment focuses its investment strategy on
properties that have evidence of their sustainability.
Ideally, new buildings should have a sustainability
certificate. It is also pursuing a policy of incremental
certification to optimize its portfolio, and this includes
a mandatory SI check as part of the due diligence
process for new purchases.
3.3 Raising stakeholder awareness
Real-estate management can only be fully sustainable
if all those involved play their part, so Union Investment
raises awareness by means of a variety of media and
events that provide its employees, market participants,
customers and tenants with information about the
opportunities and needs created by sustainability. As
well as publishing ENTRÉE, a magazine for tenants,
Union Investment also provides its rental partners in
Germany with a practical guide to protecting the environment and cutting costs. It contains practical information about how to make cost savings during daily office
life and it is specifically aimed at tenants’ employees.
Union Investment has run the online ‘Sustainable RealEstate Investment Knowledge Portal’ since 2010. It uses
numerous examples from its own portfolio to illustrate
how to put sustainability successfully into practice.
Union Investment’s Prime Property Award is conferred
every two years. It rewards investors in Europe whose
consideration of sustainability aspects when developing
or refurbishing buildings for commercial or private use is
exemplary.
3.4 Obligations placed on property users
As well as the fabric of a building, the use to which
it is put is also a major factor that determines its
ecological footprint. Consequently, more and more
sustainable criteria are being incorporated into lease
agreements to ensure that buildings are operated
sustainably. Like all standard, institutional leases,
Union Investment’s standard leases already contain
a series of sustainable components. In Germany,
separate consumption-based billing for heating, air
conditioning, other utility costs and proper waste
disposal are also standard for commercial leases,
and in many cases they are a legal requirement.
On the tenants’ side, legislation such as the German
Workplaces Ordinance ensures that conditions are
user friendly. In other jurisdictions, many of these
requirements are not yet compulsory and are currently
regarded as ‘green’ innovations.
Union Investment aims to expand its standard leases
to include further basic, sustainable criteria. It will
be possible to use a list of standard clauses to add
Key Figures
Certified properties in Union Investment’s real-estate portfolio
Asset
City
Country
Type
of use
Fund membership
Current certification
CityQuartier DomAquarée
Berlin
Germany
Office/hotel
UniImmo: Deutschland
German Sustainable Building Council
(DGNB) silver certificate
Rhein-Galerie
Ludwigshafen
Germany
Retail
DGNB gold
Nord 1
Frankfurt am Main
Germany
Office
DGNB silver
Laim 290
Munich
Germany
Office
DGNB silver
Atmos
Munich
Germany
Office
DGNB silver
Arc de Seine
Paris
France
Office
HQE
Rund Vier
Vienna
Austria
Office
DGNB silver
Logpark Rade
Neu-Wulmstorf
Germany
Logistics
DGNB gold
Equinox
Glasgow
United Kingdom Office
BREEAM In-Use Very Good (P1) & Good (P2)
600 13th Street
Washington D.C.
USA
UniImmo: Europa
LEED silver
Office
Adobe Buildings
Seattle (Washington) USA
Office
UniImmo: Europa
LEED platinum
111 South Wacker
Chicago
Office
UniImmo: Europa
LEED CS gold & EB gold
USA
51 Fifty-One
Zurich
Switzerland
Office
UniImmo: Europa
LEED gold
Central Seine
Paris
France
Office
UniImmo: Europa
HQE
1 Coleman Street
London
UniImmo: Global
BREEAM Very Good
1 Kingdom Street
London
UniImmo: Global
BREEAM Excellent
Whirlpool RDC
Denver
USA
UniImmo: Global
LEED certified
Logistics
Woodland Pointe
Herndon (Virginia)
USA
Office
UniImmo: Global
LEED certified
3
Katowice
Poland
Retail
UniImmo: Global
BREEAM In-Use Good
Westpark
Zurich
Switzerland
Office
UniImmo: Global
BREEAM In-Use Good
Zebra Tower
Warsaw
Poland
Office
Bell Trinity Square
Toronto
Canada
Office
UniInstitutional
European Real Estate
UniInstitutional
European Real Estate
LEED gold
LEED gold
Pre-certified properties in Union Investment’s real-estate portfolio
Asset
City
Country
Type of use
Fund membership
Current certification
Scandic Hamburg
EMPORIO
Riem Büro West
Centurion Commercial
Center
Hamburg
Germany
Hotel
DGNB silver pre-certification
Munich
Hamburg
Germany
Germany
Office
Office
DGNB silver pre-certification
DGNB NBV09 gold pre-certification &
HafenCity Ecolabel gold pre-certification
property-specific features and Union Investment plans
to apply this template by 2013. Union Investment
is also a member of a ‘green leases’ working group
whose objective is to create sample clauses for leases.
At present, green leases are used for 8 percent of the
area of Union Investment’s real-estate portfolio.
3.5 Obligations placed on service providers
The environmental management system introduced
in 2010 creates an obligation for environmentally
relevant criteria to be incorporated into the development of products and services, into new contracts for
tender and into the selection of business partners. In
the case of real-estate asset management, this applies
to the selection of property and facility managers, who
are required to sign service contracts containing the
sustainability criteria that enable Union Investment
to meet its voluntary commitment. The selection of
business partners is based on specially developed
profiles that are an integral part of the systematic
evaluation process. Because it aims to improve its
environmental performance on an ongoing basis, Union
Investment requires its service providers to apply
sustainable principles to their activities.
3.6 Transparency in the sector
Union Investment is striving to create transparency
in the real-estate sector so that it will be possible to
measure the sustainable quality of properties.
63
It therefore makes its findings, progress and approaches
publicly available by providing aggregated consumption data for its properties and information about the
methods it uses to analyze buildings. Union Investment encourages transparency about sustainability
in the real-estate sector by working with numerous
initiatives and research projects such as the S-I-R-E –
Sustainable Investment in Real Estate study. The objective of this study is to identify the measurable impact
of sustainability criteria on the financial performance of retail and office buildings in Europe. Union
Investment is also an active participant in the CCRS
Economic Sustainability Indicator (ESI) project for
developing forward-thinking valuation systems that
incorporate sustainability criteria.
3.7 Information sharing and benchmarking
As part of its involvement in numerous initiatives,
Union Investment maintains a regular dialog with
other real-estate portfolio holding companies. It has
been a member of the Urban Land Institute (ULI) since
1999. The ULI campaigns for the sustainable development of living environments and Union Investment
plays a particularly active role in its LessEn initiative.
Its connection with HypZert GmbH relates primarily to
the specialist energy and environment group.
The HypZert study on the sustainability of buildings
and its role in valuation was compiled in 2011 with
the support of Union Investment. It was one of
the first steps toward documenting, analyzing and
comparing the various methods for valuing real estate
while addressing sustainability that have been under
discussion in the market. As a founding member of
the German Sustainable Building Council (DGNB),
Union Investment has been contributing its expertise
to wide-ranging working groups and expert panels
since 2007. The DGNB certification system was established with the help of closely allied pilot certification
projects.
As an active member of the German Property Federation (ZIA), Union Investment cooperates with its
sustainability, energy, technology, environment and
real-estate valuation working groups.
3.8 Holistic sustainability philosophy
Union Investment applies its sustainability philosophy
at company, portfolio and individual asset level. By
64
adopting this uncompromising position, it helps to
disseminate the principles of sustainability across the
real-estate sector and beyond. This holistic view complies with the real-estate sector’s sustainability code
(industry code of conduct) that Union Investment has
played an active part in developing. This report meets
the reporting requirements placed on Union Investment
by the industry code of conduct.
4. ZIA-compliant sustainability
reporting
ZIA’s position on sustainability
As a unified, comprehensive advocacy organization
under the umbrella of the Federation of German
Industries (BDI), the German Property Federation (ZIA)
is responsible for the social, financial and environmental
aspects of the real-estate sector and it steadfastly
pursues the objectives and actions it has laid down.
Structure of the sector/clustering
Real estate itself is the key reference value for commercial activity in the real-estate sector. Along its
life cycle, there are many tasks that in their totality
constitute the range of business processes that are
ongoing within the sector. Structural analysis of the
sector produces a breakdown by cluster that covers
the individual subsections of the overall process chain
as well as each area of the sector as a whole. The
areas of activity of a single real-estate company may
be allocated to several clusters if it carries out more
than one of the specific business activities.
Relevant to Union
Investment
Cluster 1: Creation
Cluster 2: Operation & leasing
Cluster 3: Investment
Cluster 4: Finance
Cluster 5: Uses
Cluster 6: Consultancy
Cluster 7: Research and education
Reporting cycle
The ZIA Sustainability Code requires companies to
publish information about targets, actions, activities
and progress every year in a sustainability report or
in their annual report.
Mandatory reporting structure
References in the report have to be made for all key
points of the code and all relevant clusters.
Real-estate sector sustainability code (industry
code of conduct)
The signatories to this code undertake to comply with
the following principles when carrying out their business activities.
Key Figures
The code is a list of the key points forming a voluntary
undertaking by companies to focus their value systems,
structures and processes on sustainability, with special
emphasis on environmental and social concerns
and requirements. The industry code of conduct also
reflects how the real-estate sector’s proactive business
practices go beyond what is required by law.
Real-estate industry voluntary sustainability code
References in report
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
We are aware of the huge significance of the real-estate sector for sustainable development and we accept the corporate
social responsibility associated with that role.
The principles of sustainability are integral elements of the value systems, strategies and structures of our company.
We are guided by the principles of sustainability when setting and pursuing our short, medium and long-term goals.
We take into account sustainable principles when developing products and services and when selecting our business partners.
When selecting, developing, training and managing our employees, we are guided by the principles of sustainability.
We actively include our employees in our efforts to achieve sustainability and our intention is to encourage them in this respect.
We aim to exceed minimum legal requirements, to achieve continuous improvements and thus act as role models.
We will publish our targets, actions, activities and progress on an annual basis in a sustainability report or in our annual
report. When doing so, we will focus on verifiable facts and we will operate on the basis of an industry standard which
we will actively help to disseminate.
We will provide the general public and independent institutions with the information needed to create transparency and
to enable sustainability measures to be evaluated across the sector.
By positioning ourselves as a sustainable company, we are helping to disseminate information about the principles
of sustainability across the real-estate sector and beyond.
Pages 8–13; 34–37;
51–65
Pages 8–13
Pages 8–13; 68–70
Pages 40–43; 51–65
Pages 16–23
Pages 40–43
Pages 34–38; 51–65
Pages 68–70
Pages 51–65
Pages 51–65
Clusters relevant to Union Investment
Cluster 2: Written evidence that buildings are operated and leased in accordance with the code and the clusters
1.
2.
3.
We will create transparency and produce a detailed database of the core asset data relevant to sustainability that will enable
us to provide our owners, clients and users with the best possible advice.
We will invest in our employees by providing specific training and development. Our aim is to develop high-quality expertise
in advising our customers and property users on sustainability.
Sustainability considerations will become fundamental elements in the operation and maintenance of our properties and
in our asset optimization targets.
Cluster 3: Investment
1.
2.
3.
4.
5.
6.
7.
8.
9.
Sustainability is a key criterion in our investment strategy and in the due-diligence process for real estate purchases
or for indirect investments in real estate.
We will instruct our property managers to collect consumption data for properties, to record changes in the data and
to report to us on a regular basis. Minimum annual targets for improving consumption data with also be agreed with property
managers and the achievement of these targets will be monitored.
When selecting our asset and property managers and other service providers, we will give preference to companies that
explicitly adopt sustainable principles and actively support our efforts in this respect.
Our service providers will be required to identify and achieve quick-fix improvements in sustainability when fitting out
or operating portfolio properties.
We will be proactive in raising awareness of the sustainable operation of our properties among our asset and property
managers, their employees and our tenants.
We will endeavor to introduce green leases into our portfolio on a gradual basis and/or we will require more of our service
providers to sign them.
We will commission reviews of our real-estate portfolios to determine whether they are eligible for certification and we will
have them certified if financially viable.
When converting, restructuring or carrying out major maintenance work on portfolio properties, we will instruct our service
providers to achieve significant improvements in sustainability.
We will regularly share information and the opportunities for further improving sustainability in our portfolios with other
real-estate portfolio holding companies, and we will create increased transparency in the sector.
Pages 51–65
Pages 16–23
Pages 51–65
Pages 51–65
Pages 51–65
Pages 40–43; 51–65
Pages 51–65
Pages 51–65
Pages 51–65
Pages 51–65
Pages 51–65
Pages 51–65
65
66
Supplementary Information
About this report
This 2011 CSR report is Union Investment Group’s first
sustainability report. It encompasses all the Group’s
companies in Germany and covers the key developments in environmental, social and corporate
governance issues during the 2011 financial year. The
performance figures also relate to 2011 and to the
German offices. Only the environmental figures refer
to 2009, the base year, unless otherwise specified.
Together with the annual report, the online annual
report (www.wir-vermoegen.de) and the online
sustainability report (www.wir-verantworten.de), it
provides a fully integrated set of reports on the
Company and its activities. We refer to additional
information contained in other Union Investment Group
publications at various points in this report.
Transparency and comparability of reporting
The report is based on the Global Reporting Initiative
(GRI) guidelines, version G3.1. Union Investment also
takes account of sector-specific requirements which
are documented in the additional protocols for the
financial sector and the construction and real estate
sector (Financial Service Sector Supplement; Construction & Real Estate Sector Supplement). The report also
complies with the requirements of the German Property
Federation (ZIA) for sustainability reporting in the realestate sector.
Materiality analysis
Union Investment has adopted a structured approach
to identify the key topics to be addressed in this
report. A standardized questionnaire was sent to all
members of the ‘CSR Communications’ committee
to establish which stakeholders the company units
communicated with on the subject of sustainability at
the time of the survey. The questionnaire also sought
to establish which additional stakeholders would be
included in these communications within the next two
years, what were the key communication issues in the
stakeholder dialogs in the area of sustainability, and
what expectations stakeholders had with regard to
Union Investment’s commitment to CSR. The results
obtained were then verified and discussed in more
depth in individual interviews, and stakeholder mapping was used to perform a materiality analysis. The
following groups were identified as stakeholders for
whom this sustainability report is intended: employees, institutional clients and real-estate investors, end
investors, shareholders, partner banks, the cooperative
financial network, tenants, CSR interest groups and
the general public. The following key themes were
identified as relevant to the stakeholder groups: products and services, dealing responsibly with employees,
impact of business operations on the environment and
society, and transparent communications. These are
the issues on which this CSR report focuses.
Formal aspects of the report
Wherever possible, gender-neutral wording has been
used in this report. Where the masculine form has
been used, it is of course also intended to include
females. To improve readability, repeated use throughout the report of the full legal form of the names of
Group companies or not-for-profit institutions has
been avoided. The 2011 CSR report can be accessed
on the internet at www.wir-verantworten.de, either as
an interactive report or as a PDF download.
The Union Investment Group CSR report is published
every two years; the next report will be published
in 2014. In the intervening years Union Investment
publishes key performance indicators and relevant
developments in an online status report.
67
Union Investment
sustainability program 2011–2015
1. Strategy/organization
Objectives and actions
Timetable
Status Notes
Introduction of a sustainability management program
• Definition of the organizational responsibilities and provision of the staff required for CSR management
• Introduction of an environmental management system and certification to ISO 14001 standards
• Development of a sustainability policy
• Implementation of a database for IT support of the sustainability management system
(key figures, internal reporting, document management)
• Compliance with the German Sustainability Code and the German Property Federation
(ZIA) Sustainability Code for the real-estate sector
2015
2011
2011
2012
2013
done
done
planned
new
2013
new
Integration of sustainability into corporate management
• Development and agreement of a market and production strategy for SRI products
• Introduction of a regular sustainability progress report to the Board of Managing Directors
• Integration of sustainability targets in the balanced score cards
• Integration of sustainability targets in personal target agreements
2015
2011
2011
2014
2014
done
done
new
new
2. Communication
Establishment of a systematic process of communication on sustainability issues
• Development of and decision on a communications strategy for sustainability issues
• Development and implementation of a concept for regular internal and external communication on sustainability issues
• Increased communication via Union Investment’s active engagement strategy
• Establishing a committee to evaluate and deal with SRI reputational risks
• Publication of the second sustainability report
Timetable
2014
2011
2012
2014
2012
2014
Status Notes
done
new
planned
new
new
Active engagement means that we
exert influence over the companies
we invest in, both through dialog and
through exercising our voting rights.
In doing so we represent the interests
of our investors.
3. Environment
Timetable
Status Notes
Reduction of energy consumption by 6 percent and of carbon emissions by 7 percent (base year 2009)
• Sourcing of carbon-neutral electricity introduced at all German offices
• GoGreen mail despatch introduced for all German offices
• Switch to carbon-free train travel
• Review and amendment of the travel policy for carbon-free travel
(checking suppliers for the offsetting of CO2 emissions during business trips)
• Calculation of a carbon footprint for the Union Investment Group
2015
2011
2011
2011
2012
done
done
done
planned
2012
planned
Reduction of water consumption by 3 percent (base year 2009)
• Installation of sensor-controlled faucets
• Use of new cooling towers and increase in the room temperature in technical rooms
(which will reduce the energy and water consumption of the air conditioning systems)
2015
2011
2011/
2012
done
done
Reduction of total paper consumption by 8 percent,
and, as an interim target, reduction of the use of printer and photocopying paper by 2 percent by 2012
(base year 2009)
• Extensive replacement of desktop printers with central printers
• Optimization of the printing process (double-sided printing)
• Analysis and identification of further potential for optimization
2014
Increase in the proportion of recycled paper to 17 percent and the proportion of certified paper
(preferably FSC, or PEFC) to 80 percent, based in each case on total paper consumption
• Switch to certified paper as standard material for commercial printing (flyers, brochures, posters etc.)
and enshrine in corporate design policy
• Initial switch of paper for printing internal documents on recycled or certified paper
• Check where there is further potential for replacing virgin fiber paper with recycled paper or paper with an
appropriate recycled content
• Development of a concept for adapting procurement guidelines for all product groups involving paper or cardboard items
2014
68
2011
2013
2014
done
planned
new
2011
done
2011
2012
done
new
2012
new
4. Employees
Maintaining and improving employee job satisfaction levels
• Carrying out staff surveys (Climate Barometer)
• Implementing the conclusions drawn from the findings of the 2011 staff survey
• Carrying out a management feedback process
Timetable
2013
2011
and
2013
2013
2012
Status Notes
planned
new
planned
Improving employee retention
• Addition of further staff development tools to identify staff with high potential and keep them within the company
(talent management)
• Development of information and training programs on the subject of sustainability
2012
2012
new
2012
planned
Promoting a balance between career and family
• Establishment of parent-child offices at all Union Investment Group’s German sites
• Implementation of an Employee Assistance Program at Union Investment
• Introduction of a sabbaticals policy
• Training courses and seminars for employees with relatives requiring care
• Creation of an intranet portal dealing with work/life balance issues
2015
2012
2012
2012
2012
2013
planned
planned
new
new
new
Management feedback involves
asking employees to rate their line
manager’s managerial style. This
is a structured process in which
employees give their feedback
anonymously.
The Employee Assistance Program
(EAP) is an independent advisory
service for all employees. It is staffed
by experienced experts who can be
contacted in confidence to give advice
on both personal and professional
matters.
5. Corporate citizenship
Timetable
Status Notes
Continued development of Union Investment’s corporate citizenship
• Creation of a plan to further develop corporate citizenship
• Establishment of a partnership with a charitable organization
2015
2013
2013
new
planned
Furtherance of sustainability and investor-oriented interests in the finance industry and on regulatory issues
• Joining and working on important committees in the area of sustainability
• Assisting with the development of the BVI guidelines for responsible investment
• Introduction of a system for identifying, assessing and dealing with regulatory issues of relevance to investors
• Representing the investor viewpoint in discussions concerning the introduction of a financial markets transaction tax
• Disclosure of our activities aimed at representing investor-oriented interests
• Assisting in the development of the ADG (German Cooperatives Academy) training courses on the issue
of sustainability for cooperative banks
• Chairmanship of the UN-PRI Sovereign Bonds working group
2013
2011
2012
2011
2012
2012
2012
done
planned
done
new
new
new
2012
new
In 2010 and 2011 we were involved,
among other things, in drafting the
German Sustainability Code and
developing a sustainability code for
use in the real-estate sector.
6. Institutional clients
Timetable
Increasing institutional clients’ SRI assets under management by 50 percent
(base year 2010)
• Establishing our own range of products and services for advising and supporting institutional investors,
including a total of 29 sustainable products
• Market launch of ‘UniEngagement’ (see also Portfolio Management)
• Introduction of a renewable energy product for institutional clients
2015
Expansion of communication on sustainability issues and SRI within our institutional business
• Development of external communication on sustainability products to customers and the public
• Implementation of marketing and sales initiatives to gain customers for UniEngagement
• Organizing a customer event together with the Principles for Responsible Investment Initiative (UN PRI),
to inform customers about the importance of responsible investing and engagement
Status Notes
2011
done
2011
2012
done
planned
2014
2012
2013
2012
planned
new
planned
The Principles for Responsible
Investment were developed in 2005
at the initiative of the UN Secretary
General and are a voluntary
undertaking for investors to take
systematic account of environmental,
ethical and corporate governance
aspects in their investment decisions.
www.unpri.org
69
7. Retail clients
Timetable
Increasing assets under management in the area of sustainable investment by 50 percent by 2015
(base year 2010)
• Development of the SRI product range for retail clients to include a total of 15 sustainability funds
(incl. private label products)
• Establishment of regular reporting on sustainability issues to banks and investors
• Creation of a sustainable mixed fund (UniRakNachhaltigkeit)
• Creation of a savings plan range (UniNachWuchs) with a donation element from Union Investment
• Checking whether it is possible to include SRI funds in Union Investment retirement planning products
2015
Increase the support for bank advisors to include investment funds in investment and investor-focused advice
• Training and ongoing advisory support (e.g. Investment TV, UniPro: fund newsletter (Sonderticker) updates)
for sales partners since the start of the financial crisis
• Helping the cooperative banks to implement the Investor Protection and Functionality Improvement Act (AnsFuG)
in a fair and transparent way
Status Notes
2011
done
2011
2012
2012
2013
done
new
new
new
2015
2008
started
2012
planned
8. Securities portfolio management
Timetable
Status Notes
Expansion and refinement of investment processes
• Establishing particularly sustainable investment processes by systematically integrating ESG criteria into
the investment processes for the equity and fixed-income asset classes
• Designing a proprietary ESG research database
• Expanding the ESG team and formally enshrining it in the portfolio management process
• Starting UN-PRI reporting ahead of schedule
• Adopting a responsible investment policy (RI policy) that will be valid for all Union Investment securities funds
• Introducing a policy for a responsible investment strategy for commodities
• Increasing sustainability analysis in the portfolio management process
• Expanding SRI concepts and asset classes for different areas of expertise
2015
2011
done
2012
2011
2011
2012
2013
2013
2014
planned
done
done
planned
new
new
new
Expansion of our active engagement policy
• Expansion of collaborative engagements
• Introduction of ‘UniEngagement’ portfolio management processes. As an active shareholder we represent customer
interests and exercise voting rights for customers’ portfolios regardless of whether Union Investment acts as depositary
for their special funds
2012
2012
2011
new
done
To develop UN-PRI reporting,
we made a start on reporting
and benchmarking a year before
it became obligatory.
Collaborative engagements are joint
initiatives with other international
asset management companies
concerning environmental, social
and macroeconomic issues.
9. Real-estate funds
Timetable
Status Notes
Development of sustainable investment processes for real-estate funds
• Devising and introducing ‘green due diligence’ for real-estate purchases
• Adoption of sustainable requirements for property managers
• Implementation of sustainability profiles for managers of office and hotel properties
(actions in Germany and France)
• Introducing processes for issuing and administering energy performance certificates for real estate
• Introduction of a service provider qualification which would include investigating the environmental stance of major
service providers
• Introducing criteria that take account of environmental factors when awarding contracts to service providers
in Germany
• Creating a concept for integrating sustainable criteria into German real-estate leases (‘green leases’)
• Integrating sustainability criteria into leases whenever leases for portfolio properties are renewed
2015
2013
2011
2012
planned
done
new
2013
2013
planned
planned
2013
planned
2013
2014
new
planned
Increasing energy efficiency and improving the environmental protection of portfolio properties
• Recording energy, CO2, water and waste data for the representative real-estate portfolio and analyzing the potential
for environmental improvements to the properties in this portfolio
• Setting specific targets for improving energy, CO2 and water consumption and waste generation in portfolio
properties
• Checking whether a responsible investment policy is possible for real-estate business
2014
2012
planned
2013
new
2013
new
Developing and increasing commitment to sustainability across the real-estate sector
• Creating the Prime Property Award for sustainable real-estate projects in 2007
• Publishing the Green Leases magazine for tenants
• Introducing a sustainable real-estate investments knowledge portal
• Developing other activities to promote sustainability initiatives in the real-estate sector
2015
70
2010
2012
2014
done
done
planned
new
The Prime Property Award is
conferred every two years and it is
one of the leading European accolades
of its kind. See www.prime-propertyaward.de
GRI Index
reported in full
partly reported
not reported
CSRR = 2011 Corporate Social Responsibility Report
AR = 2011 Annual Report
Internet = www.union-investment.de > (reference in each case is made to the relevant navigation path)
GRI indicator
Page/Reference/Comment
Application
level
1. Strategy and analysis
1.1
Statement from the most senior decision maker
CSRR p. 4–5
1.2
Key impacts, risks, and opportunities
CSRR pages 8–13, AR pages 66–68
2. Organizational profile
2.1
Name of the organization
CSRR title page
2.2
Brands, products, and/or services
CSRR p. 7, AR p. 2
2.3
Operational structure of the organization including the main divisions,
operating companies, subsidiaries and joint ventures
CSRR pages 6–7
2.4
Location of organization’s headquarters
CSRR pages 6–7
2.5
Countries where the organization operates
CSRR pages 6–7
2.6
Ownership structure and legal form
CSRR pages 6–7
2.7
Markets
CSRR pages 6–7
2.8
Scale of the organization
CSRR pages 6–7
2.9
Significant changes regarding size, structure, or ownership
No changes during the reporting year (2011).
2.10
Awards
www.union-investment.de > About Union Investment > Awards
3. Report parameters
3.1
Reporting period
CSRR p. 67
3.2
Publication of most recent previous report
Not applicable, as this is the first report.
3.3
Reporting cycle
CSRR p. 67
3.4
Contacts
CSRR Cover page 3
3.5
Process for defining report content
CSRR p. 67
3.6
Boundary of the report
CSRR pages 6–7; 67
3.7
Limitations on the scope of the report
There are no particular limitations.
3.8
Joint ventures, subsidiaries, outsourced operations
CSRR pages 6–7
3.9
Data measurement
The procedures and specifications concerning measurement laid down
in the GRI G3.1 guidelines have been applied, so far as the data allowed.
3.10
Re-statement of information provided in earlier reports
3.11
Changes in the scope, boundary, or measurement methods applied in the report
3.12
GRI Content Index
CSRR pages 71–77
3.13
External assurance for the report
No external assurance for the report.
71
reported in full
partly reported
not reported
4. Governance, commitments, and engagement
4.1
Governance structure of the organization
CSRR pages 6–7
4.2
Indicate whether the chair of the highest governance body is also
an executive officer
AR pages 154–155
4.3
Independent members of the highest governance body
AR p. 153
4.4
Mechanisms for shareholders and employees to make recommendations
to the highest governance body
AR pages 92–93
4.5
Linkage between compensation for members of the highest governance body,
senior managers, and executives, and the management of the organization.
AR p. 152
4.6
Processes in place for the highest governance body to ensure conflicts of interest
are avoided
AR pages 92–93
4.7
Qualifications of the members of the highest governance body regarding
sustainability issues
CSRR pages 9–13
4.8
Statements of mission, codes of conduct, and principles
CSR policy at www.union-investment.de > About Union Investment
> CSR; CSRR pages 40–43
4.9
Procedures of the highest governance body for overseeing sustainability
performance
CSRR pages 9–13
4.10
Processes for evaluating the highest governance body’s sustainability performance
CSRR pages 9–13
4.11
Precautionary approach
CSRR pages 9–13
4.12
Externally developed agreements, principles or initiatives.
Union Investment is involved in the implementation of a number of externally
developed agreements, principles and initiatives.
Key examples include: UN Principles for Responsible Investments;
Sustainable Investment Forum; German Property Federation.
4.13
Membership of organizations
cf. 4.12
4.14
Stakeholder groups
CSRR p. 67
4.15
Basis for selection of stakeholders
CSRR p. 67
Union Investment is in continuous dialog with relevant stakeholder groups. It has
set up an email inbox which employees can use to contact the sustainability team.
Every year, Union Investment holds more than 4,000 meetings to discuss ESG
issues with the companies in which it invests, as part of its active engagement
strategy; it also represents the interests of its investors at annual shareholders’
meetings.
4.16
Stakeholder engagement
Union Investment also regularly communicates with customers and end investors
through its website, by email and letter, and through various events. The
environmental management system and associated obligations ensure that there
is continuous dialog with tenants and service providers on sustainability issues.
Lines of communication between the organization and its institutional clients and
real-estate investors are also kept open through Union Investment’s involvement
in initiatives such as the UN PRI, the Sustainable Investment Forum and the German
Property Federation.
4.17
Questions and concerns of stakeholders
CSRR p. 67
Financial service sector supplement (FSSS)
FS1
Policies with specific environmental components
CSRR pages 40–43
FS2
Procedures for assessing and screening environmental and social risks
in the most important business lines
CSRR pages 34–37; 30–33; 40–43; 52–65
72
FS3
Monitoring of clients’ compliance with agreed environmental
and social requirements
FS4
Processes for improving staff competency to implement the environmental
and social policies and procedures
Union Investment offers its fund managers Certified Sustainability Investment
Manager (CSIM) training, an internal course developed in collaboration with the
Frankfurt School of Finance. For information for all employees, see CSRR p. 40–43
FS5
Interactions with stakeholder groups regarding environmental and social risks
CSRR pages 30–37; 40–43; 52–65
FS6
Percentage of the portfolio for business lines by region, size, and sector
FS7
Value of products and services designed to deliver a social benefit broken down
by purpose
CSRR pages 30–33
FS8
Value of products and services designed to deliver an environmental benefit
broken down by purpose
CSRR pages 30–33
FS9
Coverage and frequency of audits to assess implementation of environmental
and social policies
CSRR pages 16–23; 30–33; 40–43; 52–65
FS10
Percentage and number of companies held in the institution’s portfolio with which
the reporting organization has interacted on environmental or social issues.
All wholly owned subsidiaries of UIG in Germany take environmental factors
(energy, water and paper consumption) into account in investment decisions and
in operational procedures.
FS11
Percentage of assets subject to positive and negative environmental
or social screening.
CSRR pages 30–33; 52–65
FS12
Voting policies applied to environmental or social issues for shares over which
the reporting organization holds the right to vote.
CSRR pages 30–33; Proxy voting policy on the internet:
http://www.union-investment.com > About Union Investment > Policies >
Voting Guidelines
FS13
Access points to the organization’s services for persons in low-populated
or economically disadvantaged areas
FS14
Initiatives to improve access to services for disadvantaged people
FS15
Policies for the fair design and sale of financial products and services
FS16
Initiatives to enhance financial literacy by type of beneficiary (sup.)
Union Investment does not operate in economically disadvantaged regions
or regions with a low population.
The Union Investment Group is committed to abiding by the code of conduct laid
down by the federal association of German fund management companies (BVI).
Is also respects the standards of the code when reporting on the performance
of its funds.
Construction & Real Estate Sector Supplement CRESS
CRE1
Energy consumption of buildings
CRE2
Water consumption of buildings
CSRR pages 52–65
CSRR pages 52–65
CRE3
Greenhouse gas emissions from buildings
CSRR pages 52–65
CRE4
Greenhouse gas emissions from new construction and redevelopment activity.
CRE5
Land and other assets redeveloped or scheduled for redevelopment for the existing
or intended land use according to applicable legal provisions
CRE6
Percentage of the organization operating in compliance with an internationally
recognized health and safety management system.
CRE7
Number of persons voluntarily and involuntarily displaced and/or resettled
by land development, broken down by project.
CRE8
Type and number of sustainability certification, rating and labeling schemes
for new construction, management, occupation, and redevelopment.
CSRR pages 52–65
Economic performance indicators
Management approach
CSRR pages 9–13
EC1
Direct economic value generated and distributed
CSRR pages 74 (EC8); 76 (SO6); AR p. 94
EC2
Financial implications due to climate change
73
reported in full
partly reported
not reported
EC3
Coverage of defined benefit plan obligations
All employees on permanent contracts at Union Investment receive a pension
commitment. AR p. 114
EC4
Financial assistance received from government
No significant financial assistance received from government during the 2011
reporting period.
EC5
Range of ratios of standard entry level wage compared to local minimum wage
at significant locations of operation.
EC6
Policy, practices, and proportion of spending on suppliers
EC7
Procedures for local hiring
1. Via the Union Investment Foundation we regularly support projects in the fields
of science and research, education and training – particularly those concerning
financial investment and the cooperative movement. The foundation was also
established to promote culture and the arts, and for charitable purposes.
EC8
Infrastructure investments and services for public benefit
EC9
Explanation and description of the type and scope of activities with significant
indirect economic impact
2. Since 2006, Union Investment employees have been involved in the
mitMenschen project for people whose life is not always easy. As part of the
project, they carry out voluntary work for organizations in and around Frankfurt,
Hamburg and Luxembourg for the benefit of children, young people and
senior citizens in need.
Environmental performance indicators
Management approach
CSRR pages 40–43
EN1
Materials used
CSRR pages 40–43
EN2
Recycled materials
CSRR pages 40–43
EN3
Direct energy consumption
CSRR pages 40–43; pages 52–65 (Scope 3 as defined by the GHG Protocol)
EN4
Indirect energy consumption
CSRR pages 40–43
EN5
Energy saved
CSRR pages 40–43
EN6
Initiatives for energy-efficiency and renewable energies
CSRR pages 40–43
EN7
Initiatives to reduce indirect energy consumption
EN8
Total water withdrawal
EN9
Groundwater sources significantly impacted by the withdrawal of water
EN10
Water recycled and reused
EN11
Land in, or adjacent to, protected areas
EN12
Material impact of activities in protected areas
In its buildings, Union Investment uses only drinking-quality water supplied
by municipal water companies. In 2009, consumption was 20,708 cubic meters
(2008: 29,612 m3; 2007: 30,.017 m3)
EN13
Habitats protected or restored
EN14
Strategies, ongoing measures and future plans for managing impacts on biodiversity
EN15
Number of species on the IUCN Red List and on national lists whose natural
habitat is in areas that are affected by the organization’s business activities,
broken down by level of threat
EN16
Greenhouse gas emissions
CSRR pages 40–43; pages 52–65 (Scope 3 as defined by the GHG Protocol)
EN17
Other greenhouse gas emissions
CSRR pages 40–43
EN18
Initiatives to reduce greenhouse gas emissions
CSRR pages 40–43
EN19
Emissions of ozone-depleting substances by weight
EN20
NO, SO, and other air emissions by weight
74
EN21
Total water discharge by type and destination
Water used for drinking, cooking, cleaning, sanitation and building engineering
resulted in Union Investment discharging approximately 19,370 cubic meters
of waste water into the sewage system. This quantity differs by about 6.5 percent
from the figure stated in EN8 (total water withdrawn). The difference from the
figure stated for total water withdrawn was due to water used for cooking,
water heaters and for watering plants that was not drawn from the water supply.
EN22
Waste by type and disposal method
CSRR pages 40–43; pages 52-65 (Scope 3 as defined by the GHG Protocol);
the total quantity of waste in tonnes broken down by disposal method was not
available at the time of going to press. Disposal methods are the responsibility
of the waste disposal company.
EN23
Spillages of pollutants such as oils, chemicals etc., by number and volume
EN24
Weight of transported, imported, exported, or treated waste deemed hazardous
under the terms of the Basel Convention, annexes I, II, III, and VIII, and percentage
of transported waste shipped internationally
EN25
Identity, size, protected status, and biodiversity value of water bodies and related
habitats significantly affected by the reporting organization’s discharges of water
and runoff.
EN26
Initiatives to mitigate environmental impacts
EN27
Percentage of products whose packaging can be recycled
EN28
Sanctions for non-compliance with environmental laws
EN29
Impacts of transportation
EN30
Total environmental protection expenditures and investments broken down by type
CSRR pages 40–43
None in 2011.
Social performance indicators: Labor practices and decent work
Management approach
CSRR pages 16–23
LA1
Total workforce by employment type, employment contract and region
CSRR pages 16–19
LA2
Employee turnover
CSRR pages 16–19
LA3
Benefits provided to full-time employees
CSRR pages 19–21
1. Internal policies apply to all employees.
2. All contracts of employment for our employees are modeled on the collective
pay agreement for the private-sector banking industry (e.g.: 30 days’ annual leave;
39-hour regular working week); with the exception of UIT employees (40-hour
regular working week).
LA4
Employees covered by collective bargaining agreements
LA5
Minimum notice periods regarding operational changes
LA6
Workforce represented on health & safety committees
LA7
Occupational diseases, lost days, and work-related fatalities
CSRR pages 16–19
LA8
Education and training regarding serious diseases
CSRR pages 16–19
LA9
Formal agreements on health and safety at work
LA10
Training per employee
CSRR pages 19–21
LA11
Programs for skills management and lifelong learning
CSRR pages 19–21
LA12
Percentage of employees receiving regular performance
and career development reviews
All employees on collectively and non-collectively negotiated pay scales receive
an annual performance review – which has been IT-based since 2011.
LA13
Ratio of basic salary of men to women
CSRR pages 16–19
LA14
Average compensation by gender and employee category
CSRR pages 16–19
75
reported in full
partly reported
not reported
Social performance indicators: Human rights
Management approach
HR1
Investment agreements
HR2
Suppliers that have undergone screening on human rights
HR3
Total hours of employee training on the organization’s policies and
procedures concerning aspects of human rights that are relevant to operations,
including the percentage of employees trained
HR4
Incidents of discrimination
HR5
Freedom of association and collective bargaining
HR6
Child labor
HR7
Forced labor
HR8
Percentage of security personnel trained in the organization’s policies or procedures
concerning aspects of human rights that are relevant to operations
HR9
Total number of incidents of violations involving rights of indigenous people
and actions taken
CSRR pages 16–23; pages 40–43;
CSRR pages 40–43
No incidents in 2011.
Social performance indicators: Society
Management approach
CSRR pages 47–49
SO1
Impacts of operations on communities
SO2
Risks related to corruption
In the year under review, eleven companies were investigated with regard
to the risk of corruption.
SO3
Training in anti-corruption policies and procedures
The internal guideline ‘Preventing and averting financial crime’ is binding upon
all employees of the Union Investment Group. Training to prevent other criminal
offenses will be carried out from 2012 in accordance with the German Banking Act
(KWG).
SO4
Actions taken in response to incidents of corruption
There were no incidences of corruption in 2011.
SO5
Lobbying
SO6
Total value of contributions (financial or benefits in kind) made to political parties,
politicians, and related institutions listed by country
The Union Investment Group does not contribute financially or make benefits
in kind available to political parties or politicians.
SO7
Total number of legal actions for anticompetitive behavior, anti-trust, and monopoly
practices and their outcomes
There were no legal actions brought in 2011.
SO8
Monetary value of significant fines and total number of non-monetary sanctions
for non-compliance with laws and regulations
There were no fines in 2011.
Social performance indicators: Product responsibility
Management approach
PR1
Health & safety impact of products and services
PR2
Total number of incidents of non-compliance with regulations and voluntary codes
concerning health and safety impacts of products and services, broken down by type
of outcome
PR3
Product information
PR4
concerning product and service information and labeling, broken down by type
of outcome
PR5
Customer satisfaction
76
CSRR pages 9–13
CSRR pages 22–23
PR6
Standards related to advertising
The Union Investment Group is committed to abiding by the code of conduct laid
down by the federal association of German fund management companies (BVI).
It also respects the standards of the code when reporting on the performance
of its funds.
PR7
concerning marketing communications, including advertising, sales promotion,
and sponsorship, broken down by type of outcome
No incidents in 2011.
PR8
Total number of substantiated complaints regarding breaches of customer privacy
and losses of customer data
In one case, a complaint was made about account documents having been put
in the wrong envelope and sent to the wrong address due to human error.
PR9
Fines for non-compliance with regulations concerning products and services
There were no fines in 2011.
77
78
Editorial Information
Note on forward-looking statements
The group management report and other sections of this annual report contain
forward-looking statements that are based on current planning, assumptions,
Publisher
Wiesenhüttenstrasse 10
60329 Frankfurt am Main
Tel.: +49 (0)69 5899 86060
Fax: +49 (0)69 5899 89000
Email: [email protected]
Website: www.union-investment.de
Board of Managing Directors
Hans Joachim Reinke, Chief Executive Officer,
Ulrich Köhne,
Alexander Schindler,
Jens Wilhelm
Editors
Katja Eck, Corporate Communications,
Stefan Kantzenbach, Corporate Communications,
Union Asset Management Holding AG, Frankfurt am Main,
Esther Baumann, Communications Consultant, Mainaschaff
Design
G + J Corporate Editors GmbH, Hamburg
Photographs
Andreas Fechner, Fritz Philipp, Andreas Reeg
Photo credits
Corbis, F1online, Getty Images, Kaleidomania,
Mauritius Images, Plainpicture, Union Investment Group
Revision
Ulrich Paasch, Hamburg
Lithography
MWW Medien GmbH, Hamburg
Printed by
Görres-Druckerei und Verlag GmbH, Koblenz
and estimates rather than on historical facts. In all cases, the forward-looking
statements apply at the time the statements are made and we give no undertaking to update the content on the basis of new information or future events after
publication of this report. We have derived our assessments and conclusions from
these forward-looking statements, expectations, and forecasts. We explicitly draw
attention to the fact that all our forward-looking statements are subject to known
or unknown risks and uncertainties and are based on conclusions that relate
to future events. These in turn are subject to risks, uncertainties, and other factors
outside our control. Such risks, uncertainties, and other factors may arise, among
other things, from changes in general economic conditions or the competitive
environment, trends on the capital markets, changes in the tax/legal framework,
and other risks. Actual events in the future may therefore differ substantially from
our forward-looking statements, expectations, forecasts, and conclusions. We can
accept no liability for the accuracy or completeness of the information provided and
can make no warranty that future situations will occur as described.
General disclaimer
Unless otherwise stated, the past performance of the funds has been determined
on the basis of Union Investment’s own calculations using the BVI method
(front-end fees not included, where applicable). Past performance is not necessarily
a guide to future performance. For extensive product-specific information and
details of the opportunities and risks attaching to Union Investment Group funds,
please refer to the latest sales prospectuses, the Company’s terms and conditions
or the annual and half-yearly reports that can be obtained free of charge from
the client service offered by Union Investment Service Bank AG at Wiesenhüttenstrasse 10, 60329 Frankfurt am Main, Germany. These documents constitute the
sole binding basis for the purchase of funds. The content of this annual report
does not constitute a recommendation to take a specific course of action; it is not
a substitute for personal investment advice from the Bank or for expert personal
tax advice. Although Union Asset Management Holding AG has taken due care in
preparing and producing this document, Union Investment gives no guarantee that
the information contained therein is up to date, accurate, and complete.
Revision date of all information, disclosures, explanations, charts, and diagrams:
March 7, 2012 (unless stated otherwise)
Formal aspects of the report
Wherever possible, gender-neutral wording has been used in this report. Where
the masculine form has been used, it is of course also intended to include females.
To improve readability, repeated use throughout the report of the full legal form
of the names of group companies has been avoided. The 2011 Corporate Social
Responsibility Report is available in both German and English. It can be accessed
on the internet at www.wir-verantworten.de, either as an interactive report or as
NOLPDQHXWUDO
a PDF download.
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79

2011 Corporate Social Responsibility Report

Transcrição

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