Helping to make the real estate industry more sustainable
As one of Germany’s leading real estate banks, DZ HYP feels duty-bound to help to make the real estate industry more sustainable. It issued its first green mortgage Pfandbrief in 2022, further establishing this funding instrument in 2023 with additional placements. The total volume outstanding as at December 31, 2023 came to €3,026 million. DZ HYP’s Green Bond Framework is based on the latest market standards and gives investors the opportunity to invest specifically in the sustainable development of the real estate sector. The annual green bond reporting prepared by DZ HYP offers a high degree of transparency regarding the use of issue proceeds and the environmental impact (reduction of carbon emissions). DZ BANK contributed to the framework by providing structuring advice.
Since mid-2021, it has been mandatory to obtain energy performance certificates and similar documentation when pursuing new business in the area of commercial real estate finance at DZ HYP. Where required under the German Buildings Energy Act (GEG), energy performance certificates have been a prerequisite for loan disbursements in new business with retail customers since the end of 2022. To increase the transparency of the portfolio, the sustainability data collected (energy performance certificates and similar documentation) is entered in a core bank system so that automated sustainability classification can take place. This is based on the decision-making criteria set out in the DZ HYP Green Bond Framework, which follows the minimum standards for green mortgage Pfandbriefe of the Verband deutscher Pfandbriefbanken (vdp) [Association of German Pfandbrief Banks] and the ICMA Green Bond Principles. Going forward, it will also follow the EU taxonomy.
In the housing sector, DZ HYP offers financing for the provision of homes that remain affordable for large parts of the population over the long term. Based on these updates in the lending business, DZ HYP is driving the integration of environmental criteria into capital market products in order to provide investors with the option of investing specifically in sustainable development.