- Among the Top 3 out of 135 housing companies in the Sustainalytics ESG rating
- Sustainability report awarded EPRA Gold
- Stable GRESB rating despite higher requirements
LEG Immobilien AG is increasingly focusing on the issue of sustainability and active management of the “ESG” factors (E for environment; S for social; G for governance). One important yardstick for this is external ESG ratings, in which the company has scored highly recently. Combined with feedback discussions with investors, they allow the company to reflect on and critically examine its sustainability strategy and measures.
“Our good sustainability ratings are a clear sign of recognition for our ESG programmes and the LEG sustainability strategy. I am particularly pleased at our strong performance in categories relating to fair and transparent interaction with stakeholders. In the exceptional circumstances of the coronavirus crisis, we have deliberately focussed on social measures for our customers and employees, on stable neighbourhoods and the overall social environment,” says Lars von Lackum, CEO of LEG Immobilien AG.
The updated rating report for LEG Immobilien AG by Sustainalytics was published on 12 November 2020. As one of the leading companies for independent, cross-sector ratings and data on ESG issues, the Sustainalytics rating system provides important guidance for investors and analysts and enjoys widespread recognition on the capital market. LEG is currently in the top 2% of almost 13,000 rated companies from different sectors worldwide, and is also rated among the top 4% of all 941 property companies analysed. In the more narrowly defined sector of real estate management, LEG makes it to third place among the 135 companies examined. The Sustainalytics report uses five categories with around 80 individual criteria to assess the risk of negative financial effects from ESG factors. Based on its strong, sustainable corporate development, Sustainalytics places LEG at the lower end of the “low risk” category. LEG’s corresponding risk rating for 2020, known as the ESG score, is 10.4 on a scale of 0 to 100. When the score is below 10, the ESG risk is considered “negligible”. Further information can be found at www.sustainalytics.com.
The latest update to the GRESB Real Estate Assessment for LEG is dated 24 November 2020. The Global Real Estate Sustainability Benchmark is an investor-initiated system for assessing the sustainability performance of real estate companies. As GRESB’s current data requirements are generally tailored to fund providers and project developers, some real estate management companies had distanced themselves from active participation in 2020. By contrast, LEG matched its good result from the previous year, primarily thanks to a strong performance in the areas of transparency (reporting) and social welfare (tenants and community). In the assessment of freely available information, known as the Public Disclosure Assessment, LEG even took the top spot among the seven German housing management companies assessed in 2020. Nonetheless, the company is participating in the discussion with GRESB to adjust performance indicators and reporting structures in line with the specific sector.
Back in September, LEG was presented with the EPRA Sustainability Gold Award for the first time for its 2019 sustainability report. With this award, EPRA (European Public Real Estate Association), the association for listed real estate companies, recognises companies that set particularly high standards with regard to the transparency and openness of their sustainability reporting.
LEG is also listed in the DAX-50-ESG, which was launched in 2020 as a new index for companies listed in Germany with a focus on ESG (see also https://qontigo.com/products/dax-50-esg-de/).
The company is currently working on the further development of its climate strategy, an improved data pool for its climate assessment and the establishment of specific ESG targets for Management Board remuneration, the introduction of which has been definite since a corresponding resolution was adopted by the company’s virtual Annual General Meeting on 19 August 2020. With a high modernisation ratio in comparison with the sector of around 3% of its portfolio, the company is already setting itself ambitious climate goals.
“Next year, we will once again redouble our efforts with regard to climate protection. We have already laid the foundations to do so this year – by making our climate data collection even more professional and detailed, by targeted increase in staff and by incorporating sustainability aspects in our investment planning to a particularly high degree,” explains LEG’s CEO Lars von Lackum.
The measures also have an impact on the company’s reporting. For example, the company is planning to integrate its non-financial report into its annual report, which will be published on 10 March 2021. When the results for the first quarter of 2021 are published on 11 May 2021, a separate, extensive sustainability report with current information on the ESG strategy and climate targets will then be presented (see also https://www.leg-wohnen.de/en/corporation/investor-relations/financial-calendar/ ).
With around 145,000 rental properties and approximately 400,000 residents, LEG is one of Germany’s leading listed housing companies. The company has seven branch offices in its home state of North Rhine-Westphalia, and is represented by personal local contacts at locations in other states in western Germany.
LEG generated income of around EUR 809 million from its core rental and lease business in the 2019 financial year. As part of the new construction campaign it launched in 2018, LEG wishes to make a social contribution towards creating both privately financed and publicly subsidised housing, and to build or acquire at least 500 new apartments per year from 2023 onwards.
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This publication constitutes neither a solicitation to buy nor an offer to sell securities. To the extent that we express forecasts or expectations or make forward-looking statements in this document, these statements can entail known and unknown risks and uncertainties. These statements reflect the intentions, opinions or current expectations and assumptions of LEG Immobilien AG. The forward-looking statements are based on current planning, estimates and forecasts, which LEG Immobilien AG has made to the best of its knowledge, but that are not a statement on their future accuracy. Actual results and developments can therefore differ materially from the expectations and assumptions expressed.