SUSTAINABILITY REPORT 2017 · About This Report In this report, we relate the central activities...

SUSTAINABILITY REPORT 2017

About This ReportIn this report, we relate the central activities dedicated to sustainability that we engaged in during 2017. We outline the economic, ecological and social implications of our business, disclosing the measures we have taken and the progress we have made.

Report Scope and BoundaryWe collected individual qualitative and quantitative statements and data for each DG HYP department, and then combined them in a central database. Responsibility for its analysis lies with the Sales Management and Investor Relations department. No material changes were registered during the period under review. GRI G4-23

All metrics refer to DG HYP's headquarters in Hamburg, unless otherwise stated, and were updated as at 31 December 2017. Results of particular relevance, however, were included up to the editorial deadline on 31 March 2018. This report was not verified externally, with the exception of material contents and indicators. All economic figures were taken from DG HYP’s audited Annual Report. The calculation of greenhouse gas emissions is based on the VfU indicator system (Association for Environmental Management and Sustainability in Financial Institutions), which is in turn based on the Greenhouse Gas Protocol (GHG Protocol).

GRI CriteriaThe Sustainability Report follows the G4 guidelines promulgated by the Global Reporting Initiative (GRI). For an overview of GRI indicators and the relevant passage, please see the GRI Content Index. GRI indicators GRI G4-17 to G4-27 are shown directly in the text at the end of the respective paragraph.

To better understand which topics matter most to our stakeholders, we engaged in a materiality analysis throughout DZ BANK Group in 2015. As a result, we revisited the structure and thematic priorities of this Sustainability Report, creating a separate chapter on the banking business and the relevant sector-specific sustainability requirements. GRI G4-18, GRI G4-22

We also reviewed our sustainability programme to ensure more transparency on target corridors and the implementation status of our measures in 2017. GRI G4-22

Global Compact This report meets the requirements of UN Global Compact for a Communication on Progress report. The corresponding references on the implementation of the ten principles have been integrated into the GRI Content Index. Our parent com-pany, DZ BANK, publishes a dedicated Communication on Progress report.

DZ BANK AG’s Communication on Progress for UN Global Compact can be found here 3 http://dghyp.de/UNGC

Additional Information This Sustainability Report is available for download in German or English on our website (www.dghyp.de). For current trends on sustainability, please also refer to our website. Further information on the economic performance and business model of DG HYP can be found in the 2017 Annual Report, which is also available for download as PDF at www.dghyp.de.

Disclaimer We took great care in the elicitation of data for this report, but we cannot rule out any mistakes. Forward-looking state-ments are based on the information and forecasts available at the time of publication. There are many factors, some of which were unforeseeable at the time of publication, that may cause actual results to differ.

DG HYP’s next Sustainability Report is scheduled to be published in 2019.

3DG HYP | Sustainability Report 2017

About This Report 2

Letter from the Management Board 4

Our Company About DG HYP 7

Values and Principles 9

Member of the UN Global Compact 10

Our Business Model 11

Business Development 12

Sustainability Strategy Our Approach to Sustainability 15

Sustainability Management 15

Stakeholder Dialogue 18

Stakeholder Focus and Materiality 20

Responsible Corporate Governance 21

Sustainable Banking Business Our Core Business 27

Reinforcing Sustainable Lending 29

Client Satisfaction 29

Complaints Management 30

Protection of Client Data 30

Employees Responsible Human Resources Activities 33

Corporate Culture and Management Principles 34

Employee Survey 34

Training and Continuing Professional Development 35

Empowering the Next Generation 35

Equal Opportunity 37

Performance-Based Remuneration 40

Health and Safety in the Workplace 42

Ecological Responsibility Group-wide Environmental and Climate Strategy 45

Organisation and Management 45

Engaging Our Employees 45

Greenhouse Gas Emissions 46

Electricity and Heat Consumption 48

Water Consumption 49

Paper Consumption 49

Mobility 51

Waste 51

IT 53

Environmental Protection Along the Supply Chain 53

Climate-Friendly Food Choices 53

Social Commitment Our Beliefs 55

Community Service 55

Related Field Project Support 56

Cooperative Charitable Support 57

Sustainability Programme 58

GRI Content Index 67

Contacts and Office Addresses 72

CONTENTS

DG HYP | Sustainability Report 2017

Letter from the Management Board

4

The Management Board of DG HYP: Dr Georg Reutter (Chairman) and Manfred Salber

Dear readers,

Conserving the environment — and our natural habitat as a direct result — is one of the greatest challenges of our time. Issues such as climate change, social inequality and the wasteful consumption of resources can only be combated by a rethink in society. We believe that we, as a company, need to assume responsibility.

Our view of sustainable development and our desire to achieve it are rooted in our cooperative tradition. They constitute the basis for our active, multifaceted approach to sustainability management, which we integrate into all our divisions. We set measurable targets and pursue action led by the individual departments.

2017 saw sustainability rating agency oekom research once again commend our economic, environmental, and social com-mitment with an excellent C+ rating, firmly placing DG HYP among the best companies in the industry. The bank also scored well in research and sustainability agency imug’s ranking.


2017 was also a good year for DG HYP in terms of the business, which turned in a pleasing performance amidst a chal-lenging market backdrop. We leveraged the high demand on the real estate markets, generating the second-best volume of new business that the bank has ever seen. This enabled us to consolidate our strong competitive position, helped by the bank’s deeply-rooted presence in the markets over many years and its reliability as a financing partner. We are particularly pleased to have further expanded the close and trusting partnership within the Volksbanken and Raiffeisenbanken coopera-tive bank network and to have increased our joint coverage of the market by almost 13 percent year-on-year.

In the year under review, we worked closely together with DZ BANK Group to implement strategic projects. This included further forging establishment of the “Erfolgsprinzip: WIR” employer brand (WE drive success) as well as launching the joint "Employees recruit employees" initiative to boost the employee referral programme. Issues such as continuing professional development (CPD), next generation programmes and the advancement of female employees were also at the heart of our human resources policy.

In operational environmental protection, we set ourselves the target of cutting our greenhouse gas emissions by 15 percent by 2020 compared with 2012. We already surpassed this figure in 2017 — over the past five years we have succeeded in lowering our CO2 emissions by more than 46 percent. Construction measures such as extensive modernization of building lighting, a switch to green electricity, and other building works all played a part in this.

We continued our successful community involvement in the year under review, supporting proven projects like the Hamburg Donor’s Parliament and many social, cultural and community campaigns outside the bank.

This report reflects our fundamental approach to sustainability and our principles of conduct. It shows how far we have come and outlines the challenges that we see ahead.

To grow sustainably, we will continue to leverage every opportunity that arises.

Hamburg, June 2018

Dr Georg Reutter Manfred Salber


Letter from the Management Board | About DG HYP | Sustainability Strategy | Sustainable Banking Business | Employees

6

OUR COMPANY PART OF A STRONG GROUP


Ecological Responsibility | Social Commitment | Sustainability Programme | GRI Content Index

About DG HYPDG HYP is the commercial real estate bank of the Volks-banken Raiffeisenbanken cooperative financial network and one of the leading real estate banks in Germany. Our core business segment is Commercial Real Estate Finance, where we support real estate investors as well as approxi-mately 1,000 cooperative banks in Germany.

The focus of the business activities is on financing properties in the German market. In addition, we finance our German clients’ investment projects in selected international mar-

kets. We are present all over Germany, with six Real Estate Centres (Hamburg, Berlin, Dusseldorf, Frankfurt, Stuttgart and Munich), as well as six regional offices (Hanover, Kassel, Leipzig, Mannheim, Münster and Nuremberg).

As a member of DZ BANK Group and partner to the Volks-banken and Raiffeisenbanken cooperative banks, we are part of a strong financial network We owe our success to various factors: client proximity, professionalism and exper-tise, funding power, and a high degree of market penetra-tion backed by an efficient network.

MuensterRegional Office

BerlinReal Estate Centre

Hamburg Real Estate Centre

Hanover Regional Office

Leipzig Regional OfficeKassel

Regional Office

Frankfurt Real Estate Centre

Stuttgart Real Estate Centre

Munich Real Estate Centre

Dusseldorf Real Estate Centre

Nuremberg Regional Office

Mannheim Regional Office

DG HYP LOCATIONS

PART OF A STRONG GROUP



8

DG HYP – PART OF A POWERFUL GROUP

DG HYP is a member of the DZ BANK Group, which also comprises Bausparkasse Schwäbisch Hall, DZ PRIVATBANK, R+V Insurance, TeamBank, Union Investment Group, VR Leasing Group, WL BANK as well as various other specialist financial services providers. DZ BANK Group is itself a part of the Volksbanken Raiffeisenbanken cooperative financial network, which comprises approximately 1,000 individual cooperative banks. In terms of total assets, the network ranks among the largest financial services organisations in Germany. Within the Volksbanken Raiffeisenbanken coop-erative financial network, DZ BANK acts as the central insti-tution, tasked with supporting the local cooperative banks' transactions as well as strengthening their competitive posi-tion. It also operates as a commercial bank, and exercises the holding entity function for DZ BANK Group.

The various DZ BANK Group entities are the cornerstones of a comprehensive range of bancassurance products and services offered by the Volksbanken Raiffeisenbanken co-operative financial network. DZ BANK Group has organised its strategy and range of services for the cooperative banks and their customers along the lines of four strategic busi-ness segments: Private Customers, Corporate Clients, Capi-tal Markets and Transaction Banking.

Combining banking services with insurance products, home loan savings and a range of investment services has a long tradition within the German cooperative banking sector. The specialist institutions within the DZ BANK Group each offer highly competitive and reasonably-priced products in their respective area of expertise. This allows Germany’s cooperative banks to offer their customers an end-to-end range of first-class financial services. GRI G4-17



RELIABLEOur reliability value is epitomised by a rock-solid business model and conservative risk strategy – at the same time, it is our staff that turn this value into reality. We are perspicacious, down-to-earth, and conscious of our responsibility to society and the environment. As a Pfandbrief issuer and a member of the Volksbanken Raiff-eisenbanken cooperative financial network, we have strong funding sources at our disposal. In the market, we are a partner that can be counted on.

A GOOD PARTNER Being in partnership requires fairness and trust; and trust requires proximity. These are principles which our employees have adhered to for more than 90 years. We are close to our clients – be it directly, through our Real Estate Centres and regional offices, or through almost 1,000 individual cooperative banks. We value respect and fairness in the way we treat others. Through joint thinking and acting in partnership, we build the foundations for long-term business relationships.

MOTIVATED Our employees are highly motivated; they act independently and responsibly, taking the initiative. Their actions and behaviour determine DG HYP’s reputation and success. We all have a common goal: to sustain-ably boost the success of cooperative banks and our clients, by offering them the best financing solutions possible. To us, any problem represents motivation to find new ideas and better solutions. This is the only way to continuously improve what we do.

Values and Principles Sustainable action and corporate responsibility are two im-portant pillars of our corporate culture. In light of ecological and social challenges in our society, it is a matter of im-portance that the sustainable orientation of our business activities grows more pronounced. We act responsibly in our day-to-day business.

Our actions are based on our core values: being reliable, being a good partner, and being motivated. These values are at the heart of our guiding principles, our leitmotif. They define the way we think, and translate into everything we do. We are close to our clients – thanks to a decentralised presence with six Real Estate Centres and regional offices,

and the cooperative banks with which we work on a suc-cessful partnership basis.

Our practical understanding of integrity and ethical busi-ness is clearly stated in our Code of Conduct. All employees are bound by the Code, which combines our internal prin-ciples with external market standards and reaffirms our commitment to sustainability.

3 http://dghyp.de/missionstatement (only available in German) 3 http://dghyp.de/codeofconduct/3 Responsible corporate governance, p. 21 et seqq.

OUR CORE VALUES



10

Member of the UN Global Compact In 2008, DZ BANK AG became a signatory to the Global Compact of the United Nations, thereby committing itself to implementing the ten internationally acknowledged prin-ciples stipulated by the initiative for responsible conduct. In

2013, DG HYP followed suit in taking up these principles: they span human rights, labour norms and work against corruption. We also let our actions be guided by the Sus-tainable Development Goals adopted by the United Nations in 2015, which cover economic, environmental and social challenges and apply to all developing, emerging and in-dustrial countries.

The progress made in the integration of these principles into our business divisions is documented in our continuous sustainability reporting. We define responsible corporate governance to include not only adherence to legal stand-ards and requirements, but also to values and principles, together with clear and transparent management. DZ BANK AG’s Communication on Progress for UN Global Compact can be found here 3 http://dghyp.de/UNGC

1 Businesses should support and respect the protection of internationally proclaimed human rights; and

2 make sure that they are not complicit in human rights abuses.

3 Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

4 the elimination of all forms of forced and compulsory labour;

5 the effective abolition of child labour; and

6 the elimination of discrimination in respect of employment and occupation.

7 Businesses should support a precautionary approach to environmental challenges;

8 undertake initiatives to promote greater environmental responsibility; and

9 encourage the development and diffusion of environmentally friendly technologies.

10 Businesses should work against corruption in all its forms, including extortion and bribery. www.unglobalcompact.org

THE UN GLOBAL COMPACT’S TEN PRINCIPLES

WE SUPPORT



Our Business ModelAs a member of the DZ BANK Group, DG HYP is committed to the fundamental cooperative concept of sustainable and responsible business practices. We apply a conservative risk strategy, forge long-term business relationships and treat clients with honesty, trust, and a sense of partnership – this is part of our business model.

Focus on the Traditional Lending Business As a real estate bank, DG HYP focuses on the traditional lending business, whereby the loans it grants lay the foun-dation for long-term partnerships. The bank’s Commercial Real Estate Finance activities are focused on the core seg-ments of office, residential and retail properties. DG HYP is also involved in the specialist segments of hotels, logistics and real estate for social purposes, within the scope of its credit risk strategy. Target clients are private and institu-tional investors, housing companies, as well as commercial and residential real estate developers. When selecting expo-sures, the priorities are the quality of the client relationship, the third-party usability of the financed property, and col-lateralisation through first-ranking liens. Close Cooperation with Cooperative BanksDG HYP offers the German cooperative banks a high-per-formance range of products and services tailored to meet their specific needs. With this offering and DG HYP as a partner, the cooperative banks are in a position to realise greater financing solutions for their medium-sized custom-

ers as well as diversifying their own risk. With DG HYP as a partner, new business activities in commercial real estate financing are bound to be successful.

The German cooperative banks contribute their regional market knowledge, and use the real estate and financing expertise of their partner within the cooperative banking sector. In this context, both sides benefit from joint mar-ket coverage – DG HYP from the direct contact with re-gional clients, and the German cooperative banks from the business relationships arising from developing the mar-ket throughout Germany. Further services in the financial network comprise the rating of real estate clients and the valuation of properties through VR-WERT, a wholly-owned subsidiary of DG HYP. GRI G4-17

3 Annual Report 2017, p. 14 et seqq.

Good Ratings Confirmed Standard & Poor’s (S&P) reviewed and confirmed DG HYP’s good ratings in the 2016 financial year. The agency paid tribute to DG HYP’s successful business model as a real estate bank deeply integrated in the strongly capitalised and highly profitable Volksbanken Raiffeisenbanken coop-erative financial network. DG HYP’s Pfandbrief issues have retained their top triple-A rating, thanks to the high quality of our cover assets pools.

3 Annual Report 2017, p. 10

Rating overview (Standard & Poor’s) Long/short-term liabilities/outlook AA-/A-1+/stable Issuer credit ratingPublic-sector covered bonds AAA Public Pfandbriefe (Senior Secured)Mortgage Pfandbriefe AAA Mortgage Pfandbriefe (Senior Secured)Senior Unsecured (subordinate) A+ Senior Unsecured Non-PreferredTier 2 A Tier 2



12

Business Development DG HYP was once again able to continue the positive de-velopment in Commercial Real Estate Finance during the year under review. The market environment for German commercial real estate remained positive in 2017. A combi-nation of low interest rates and strong economic develop-ment led to increased demand for commercial real estate. The exacerbated supply shortage of attractive properties in the metropolitan areas did not lead to falling investment turnover; investors looked increasingly to the strong region-al locations instead. Against this background, the transac-tion volume in 2017 exceeded that of the previous year. Commercial investment in residential real estate in the year under review was also up over 2016. Competition for fi-nancing attractive commercial real estate intensified even further in this environment.

DG HYP’s intensive cooperation with its customers, which is based on a spirit of mutual trust, continued in 2017. With an aggregate volume of €6,431 million concluded in com-mercial real estate finance (2016: €7,418 million), the bank generated the second-best new business result in its history. The German core market accounted for €6,131 million thereof (2016: €7,140 million), in line with DG HYP’s stra-tegic focus. New business of €300 million was generated on the international markets (2016: €278 million).

Joint Lending with German Cooperative Banks Expanded DG HYP successfully extended the collaboration within the Volksbanken and Raiffeisenbanken cooperative finan-cial net work. At €3,559 million, the volume of lending business conducted jointly with the German cooperative

banks exceeded the previous year’s already good level by 12.7 per cent (2016: €3,159 million). This positive de-velopment shows that commercial real estate finance – as part of the corporate client business in the cooperative financial network – continues to attract great interest and a strong response amongst the German cooperative banks. At present, DG HYP regularly cooperates with more than 400 cooperative banks in this business.

Development in Other SegmentsIn the interests of the Volksbanken Raiffeisenbanken coop-erative financial network, DG HYP supports the coopera-tive banks as they respond to financing enquiries from the public sector. In this way, the cooperative banks are able to reinforce their presence on the market and build up fur-ther business relationships with local authorities. During the 2017 financial year, DG HYP generated new business with a volume of €198 million (2016: €257 million) in the area of local authority lending.

There have been no new investments in Mortgage Backed Securities (MBS) since mid-2007. Moreover, within the framework of its strategic realignment, DG HYP suspended its public finance and interbank lending activities in 2008. The related portfolio of sovereign and bank loans has been reduced as planned, from €38.5 billion at the end of 2007 to €6.2 billion as at 31 December 2017. The mortgage backed securities (MBS) portfolio was cut from €4.5 billion to €745 million during the same period. DG HYP will con-tinue to adhere to this strategy – implementing the sched-uled portfolio reduction – in the years to come.

Also in the context of the bank's strategic realignment, DG HYP has been winding down its private home loan financing portfolio continuously since 1 January 2008. In mid-November 2016, the bank resumed processing of the residual housing sector exposures that it had previously out-sourced to Hypotheken Management GmbH, Mannheim. As at 31 December 2017, DG HYP’s portfolio included some 24,000 retail customers (2016: 32,000), accounting for approximately €1.1 billion in lending volume (2016: €1.7 billion).

3 More on the business development in 2017: Annual Report 2017, p. 24 et seqq.



VR WERT VR WERT, a wholly-owned subsidiary of DG HYP, performed well during the 2017 financial year: it issued 2,816 expert valuations, up from the previous year’s figure of 2,591. Revenues were €9.8 million (2016: €9.4 million). GRI G4-17

Investor Base and FundingAs the provider of commercial real estate financing within the Volksbanken Raiffeisenbanken cooperative financial network, DG HYP’s capital markets funding is based pri-marily on Mortgage Pfandbriefe issuance. During the 2017 financial year, DG HYP placed a benchmark bond with a volume of €500 million. The 9.5 year mortgage Pfandbrief was met with high demand. DG HYP generated a further

€500 million of its refinancing needs by participating in the final tranche of the ECB’s targeted longer-term refinancing operations (TLTRO II). In addition, DG HYP managed to sell €174 million in private placements (2016: €137.5 million). At the year-end, DG HYP's outstanding Pfandbrief issues totalled €17.1 billion (31 December 2015: €18.4 billion).


3 Economic environment and development of the real estate markets in general: Annual Report 2017, p. 20 et seqq. and p. 24 et seqq. 3 More on our banking business: p. 27 et seqq.

THE COOPERATIVE BASIC VALUE OF AIDING EMPOWERMENT

When Friedrich Wilhelm Raiffeisen and Hermann Schulze-Delitzsch founded the first financial cooperatives – in Germany, about 160 years ago – little did they know that they were writing the first pages of a tremen-dous success story. Today, financial cooperatives are deeply rooted in many markets. While they come in dif-ferent structures, they have one thing in common: their members are owners and clients at the same time. This principle is the main differentiation between cooperatives and other forms of cooperation.

In cooperatives, people unite voluntarily to engage in economic activity together and advance their mem-bers’ business activities in their own right, i.e. not accepting third-party or governmental support. It is this advancement – and not the distribution of yield – that is given priority.

Fundamental decisions are taken by the general meeting, where every member has one vote, irrespective of their equity stake. This is to protect democratic principles, to avoid individual majority owners dominating and to prevent an unsolicited takeover.

Every cooperative is also a member of an Auditing Association. These associations advise their members where needed, and audit the financial condition as well as the regularity of the management. Against this background, cooperatives have been the by far most bankruptcy-proof legal structure that Germany has to offer for many years.

3 www.genossenschaften.de (available in German only)



1414

SUSTAINABILITY STRATEGY A VALUE COMPASS

AND CLEAR GOALS



15

Our Approach to Sustainability As the commercial real estate bank in the Volksbanken Raiffeisenbanken cooperative financial network, we look back on a corporate history spanning more than 90 years. Uniting business and social responsibility has always been an integral part of our corporate culture. To us, sustainabil-ity means that we must satisfy the needs of today’s genera-tions, and offer them fair opportunities for development – without compromising the chances of future generations or threatening our natural livelihood. We thus agree with the Brundtland Commission Report, published in 1987.

To us, sustainable development is a constant learning proc-ess, one which helps reveal potential for improvement in various businesses, as well as providing direction as to how we can better overcome current and future challenges and seize new chances in new ways. This not only includes a risk-aware banking business, but also efficiently using and conserving natural resources and a forward-looking HR ap-proach to demographic change. GRI G4-18, GRI G4-19

We define responsible corporate governance to include not only adherence to legal requirements, but also to values and principles. In 2013, we committed ourselves to the ten internationally acknowledged principles stipulated by the Global Compact of the United Nations. We look to the Sus-tainable Development Goals adopted by the United Nations in 2015 for guidance. In 2014, we introduced a Code of Conduct for the Group. All employees are bound by this Code, which clearly states our practical understanding of integrity and ethical business.

3 Values and principles: p. 9 3 Responsible corporate governance, p. 21 et seqq.

DG HYP is confident that by acting sustainably, we will gain a competitive edge in the medium term. For a Pfandbrief issuer that specialises in commercial real estate, the effects felt in direct competition in the market should be less pro-nounced. Open communications, attractive working condi-tions and a fair, appreciative approach to all stakeholders help us to create and maintain relationships that are built on trust, to avoid risk-taking and to use opportunities when

they arise. Regular communication with our stakeholders and transparent reporting are key elements of our sustain-ability strategy. GRI G4-26

3 Materiality: p. 20

Sustainability ManagementThe responsibility for the issue of sustainability lies with the Chairman of the Management Board of DG HYP. This re-flects the strategic significance we place on sustainability, and ensures top management attention concerning imple-mentation. The Sales Management and Investor Relations department is in charge of coordinating all activities related to sustainability; the head of this department reports inter-nal and external developments to the Management Board. This department is the first point of contact for all other de-partments when questions concerning sustainability and/or the implementation of sustainability programme measures arise. It monitors all sustainable actions, and makes sugges-tions regarding the advancement of the sustainability pro-gramme together with the affected divisions. Furthermore, it serves as first point of contact for internal and external stakeholders, and is responsible for reporting.

Sustainability is a cross-divisional responsibility. To ensure that it is addressed across all management levels and di-visions, various departments formally assumed responsibil-ity for sustainability-related topics and implementation of measures in their division. This approach has proven a suc-cess in anchoring sustainability all over the bank.

With this allocation of responsibilities, we want to raise awareness in all divisions for our understanding of suc-cessful business operations: we believe that success is not defined by economic metrics only, but also by a conscious take on the ecological and social consequences of our daily activities.

In 2017, we reviewed our sustainability strategy to reflect that of the German Federal Government. The latter was up-dated and specified in 2016, following the passage of the 2030 Agenda for Sustainable Development in 2015 with its 17 Sustainable Development Goals (SDGs). DG HYP’s new


sustainability strategy comprises governing principles and makes clear what our responsibility is – and what we mean when we talk about sustainable development.

DG HYP also applies economic, environmental and social criteria when choosing its suppliers, based on Group-wide sustainability standards for suppliers established in 2012.

We give preference to local suppliers and service providers, meaning they are located close to one of our offices.

All suppliers with an aggregate turnover that exceeds a fixed threshold will be reviewed by our procurement depart-ment for sustainability criteria and and how open they are towards taking further measures to meet or improve upon


GrafikNachhaltige Unternehmensführung

und Strategie


these criteria. Using a list of criteria that stretches from critical human rights issues to black labour, minimum wage infringement and improper disposal of construction materi-als, each supplier is assigned a score. A medium score will lead us to request an extensive self-declaration. This allows us to spot risks in the supply chain at an early stage and react quickly in case of infringements. In this context, we keep a particularly close eye on construction, security and cleaning companies.

3 http://dghyp.de/suppliers3 Human rights: p. 243 Environmental protection along the supply chain: p. 53

Sustainability Programme In close cooperation with the relevant departments, our Sustainability Officer develops a sustainability pro-gramme for DG HYP that documents the goals we have set for ourselves in individual areas, and how we want to achieve them. Current and planned measures to continu-

ously improve our sustainability performance are linked to a schedule. Achievement and implementation status of these goals – and the corresponding measures – are reviewed in internal audits. This system ensures that the sustainability programme is being put into practice consistently and in a targeted manner.

When reviewing our sustainability programme, we incorpo-rated the issues both we and our stakeholders had deemed material in the corresponding 2015 analysis. As such, we split the “Economic Responsibility” dimension in our Sus-tainability Report during 2015, and added two new areas – “Sustainability Strategy and Corporate Governance” and “Sustainable Banking Business” – to better reflect the im-portance of our core business of banking in our sustainabil-ity programme. GRI G4-19, GRI G4-22

3 Our sustainability programme: p. 583 Stakeholder focus and materiality: p. 20 et seq.


Anchoring sustain-ability in business strategy

Transparent reporting

Regular stakeholder communications

Adherence to legal requirements, and to values and principles

Sound business model, with a conservative risk strategy

Long-term relationships with business partners

Powerful funding options through

> the Volksbanken Raiffeisenbanken cooperative fi nancial network

> issuance of Mortgage Pfandbriefe

SUSTAINABLEBANKING

EMPLOYEES

Performance-based remuneration

Work/family balance

Occupational health management

Extensive CPD offers

Empowering the next generation

ECOLOGICAL RESPONSIBILITY

Reducing the use of energy and resources

Reducing CO2 emissions

Enhancing employees’ ecological awareness

SOCIAL COMMITMENT

Support for social projects and non-profi t organisations

Promoting issues and organisations with real estate topics

Support for research institutes dealing with the cooperative sector

Supporting employees’ voluntary engagement

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SUSTAINABILITY STRATEGY AND

CORPORATE GOVERNANCE


Stakeholder DialogueTrust is fundamental for the feasibility and success of co-operative projects, and an important factor in stakeholder communications. It shows in the strength of the dialogue we foster with our stakeholders, which include clients, business partners, employees, analysts and investors, but also associ-ations, political decision-makers, media and academia. We also regularly communicate with non-governmental organi-sations, whose queries and issues we address. GRI G4-24, GRI G4-25

Being in dialogue enables us to better respond to the vari-ous stakeholders’ concerns and requests and provides us with an initial understanding as to how the opportunities and risks associated with our business activities are per-ceived in the outside world. The importance of building lasting relationships with our stakeholders is therefore also a strategic one; it lays the groundwork for the continuing development of our sustainability programme. GRI G4-26

3 Stakeholder focus and materiality: p. 20 et seq.3 Client dialogue and complaints management: p. 29 et seq.

Employee Dialogue We foster a culture of dialogue, openness and mutual re-spect in our bank, and our employees play an active part in decision-making processes.

In addition, we use our intranet to keep employees con-stantly informed about what is going on in the bank. To further intensify the dialogue with our employees, we regu-larly conduct online employee surveys to assess the bank’s development from the perspective of its employees.

The most recent survey, held in 2014, provided a represent-ative overview of the sentiment among the employees, with a participation ratio of 81 per cent. A good way of meas-uring employee satisfaction is the Organisational Commit-ment Index (OCI) indicating an employee’s attachment to their company. DG HYP achieved a good result, with a score of 78. However, the survey also pointed out potential for improvement, which we have been addressing systemati-cally ever since. GRI G4-24, GRI G4-26

Employees also have a powerful voice in the materiality analysis, whose results influence our sustainability report-ing and the further development of our sustainability pro-gramme.

The policy of co-determination has a long tradition within DG HYP. We honour and respect the interests of our em-ployees. We also uphold the freedom of association, and value the fundamental right of our employees to join trade unions, to form organisations of their own choice, and to foster and defend their own interests as well as to lead col-lective bargaining with their employer – all of this without our interference.

Employee interests are represented at DG HYP through an elected works council and/or membership in a trade union. We pride ourselves in maintaining excellent cooperation with our employees’ representatives and in pursuing a re-spectful and constructive dialogue to bring the interests of the bank and its staff together.

In compliance with legal requirements, the bank informs the works council of fundamental changes and concludes agreements regarding their implications as stipulated in the German Works Constitution Act.

The works council issues a regular newsletter and also uses the intranet to inform employees about current events and developments. All internal employer/works council agreements are registered in the bank’s central organisa-tion manual, and may be accessed by all employees at any time. Another aspect of our continuous dialogue are works meetings, held at various times throughout the year. During these meetings, employees may ask specific questions or come forward with suggestions or proposals.

3 More on the employee survey: p. 34 3 Stakeholder focus and materiality: p. 20 et seq.



Cooperative Bank Dialogue The cooperative banks are amongst our most important stakeholders. To support the dialogue with them, we have instituted an Advisory Council comprising representatives of the cooperative banks, in addition to personal meetings and visits with our sales staff. The Advisory Council supports DG HYP’s Management Board as part of an intensive ex-change of ideas. GRI G4-24, GRI G4-25, GRI G4-26

We discuss professional topics openly, and involve the Managing Directors of the cooperative banks in discussions with our real estate clients. Through our IMMO PARTNER dialogue, we created another nationwide concept that pro-motes more intensive collaboration with our partner banks. We also organise regional real estate conferences and a va-riety of events to expand our network and client contacts. With regular reports on real estate markets, particularly regional ones, and our IMMO KOMPAKT publication, we increase transparency on our business activities to support

cooperative banks in their daily work on the markets they are active in.

Capital Markets and Rating Agencies DialogueWe strive for transparency in all communication with part-ners in the capital markets. We cultivate investor relations intensively, with both larger-scale events and one-on-one briefings. In addition to the annual and interim reports, we publish market-relevant information. Our Debt Issu-ance Programme (DIP) offers standardised documentation for the issuance of medium- and long-term bonds on the capital market. This is published with the Luxembourg Stock Exchange, the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin), and the German Federal Gazette (Bundesanzeiger). It is available on DG HYP's website, amongst other places. We are also in constant and extensive dialogue with rating agencies and analysts for financial and sustainability ratings. GRI G4-24, GRI G4-25, GRI G4-26

SELECTION OF DG HYP’S ASSOCIATION MEMBERSHIPS

• Federal Association of German Credit Unions and Rural Banking Cooperatives (BVR)

• Cooperative Association Weser-Ems

• Cooperative Association, Frankfurt/Main

• Cooperative Association Rhineland-Westphalia

• Cooperative Association Baden-Württemberg

• Cooperative Association Bavaria

• German Cooperative and Raiffeisen Confederation (DGRV)

• Association of German Pfandbrief Banks (vdp)

• Association of German Pfandbrief Banks (vdp)

• Urban Land Institute (ULI Europe)

• Association for Environmental Management and Sustainability in Banks (VfU)

• German Investor Relations Association (DIRK e.V.)



Dialogue with Society and PoliticsDG HYP communicates with social and political decision-makers mainly via associations it holds a membership with. These include the National Association of German Coopera-tive Banks (Bundesverband der Deutschen Volksbanken und Raiffeisenbanken e.V. – BVR), the Association of German Pfandbrief Banks (Verband Deutscher Pfandbriefbanken e.V. – vdp), the German Property Federation (Zentraler Im-mobilien Ausschuss e.V. – ZIA) and the German Investor Relations Association (Deutscher Investor Relations Verband e.V. – DIRK). We support efforts towards a more stable fi-nancial system as well as the interests of Pfandbrief issuers and the economic and non-economic interests of the real estate sector. GRI G4-24, GRI G4-26 We are also an active member of the Association for En-vironmental Management and Sustainability in Financial Institutions (Umweltmanagement und Nachhaltigkeit in Fi-nanzinstituten e.V. – VfU), a network of environmental and sustainability managers at leading financial services provid-ers, and engaged intensively in its forum for sustainable lend-ing in the year under review. The VfU provides its members with a platform to exchange subject-matter knowledge and information, and to maintain an interesting dialogue with experts and representatives of non-governmental organisa-tions. Further to this, we take part in a round table with the United Nations Environment Programme Finance Initiative (UNEP FI), where recent developments and progress made in the realms of sustainable finances management are dis-cussed. We consider ourselves an independent, politically neutral institution, and ceased supporting any political par-ties in 2005. Stakeholder Focus and MaterialityOur reporting on sustainability is designed to meet our stakeholders’ information requirements on the one hand, and to reflect the sustainability issues that are of major im-portance to us as a bank on the other. This is what the Glo-bal Reporting Initiative (GRI) – the standard our reporting is based on – defines as the principle of materiality. While in the past we regularly requested feedback from our stake-holders to help us identify “relevant” or “material” topics, in 2015 we also conducted a systematic materiality analysis to determine which sustainability-related aspects are con-sidered important by DG HYP and various stakeholders. The analysis was designed as an online survey, in which we and

DZ BANK Group invited external and internal stakeholders to participate. GRI G4-18, GRI G4-23

When selecting the stakeholders to participate in the survey, we took various aspects, such as diversity and relevance for our bank, into account: GRI G4-25

• Our most important stakeholders are our clients, own-ers and partners in commercial real estate finance, the cooperative banks as well as our employees.

• Suppliers and service providers, as well as associations and investors, are of high economic relevance as well.

• Criticism voiced by non-governmental organizations

(NGOs), rating agencies, policy makers and academia reflects the social environment we are active in.

GRI G4-24

The 2015 survey spanned five areas with subordinated as-pects and was based on an analysis of sustainability trends we are currently witnessing in our society. With a response rate of 46 per cent, it yielded valuable indications as to what we should report and work on. GRI G4-18 The results on DZ BANK Group-level were then evaluated by each entity, the external stakeholders’ responses compared to internal perceptions, and displayed in a materiality matrix (see chart). The matrix shows that both surveyed groups at-tribute “Sustainable Corporate Governance” and “Sustain-able Products and Services” the highest level of relevance.

Within these areas, they ranked “Cooperative Principles and Values” and “Corporate Strategy and Success” high-est. The results confirm the need for sustainability to be approached as a strategic cross-divisional responsibility, and to be systematically integrated into the core business. For DG HYP, this means that the principle of sustainability, already enshrined in the cooperative model, needs to be worked out more clearly. GRI G4-27

For the future, we will conduct such materiality analyses on a regular basis, as they provide us with valuable information on the scope we should aim for in our sustainability report-ing. They help us review our strategy and, where necessary, rework our sustainability programme. GRI G4-26


MATERIALITY MATRIxGRI G4-19, GRI G4-21

Relevance for external stakeholders

3,5 4,0 4,5 5,0 5,5 Relevance for DZ BANK Group

1

3

4

5

2

3,5

4,0

4,5

5,0

5,5

Corporate governance

Employee responsibility

Ecological responsibility

Products and services

Social commitment


Responsible Corporate GovernanceGood corporate governance and sustainable economic management require compliance with legal and regulatory regulations, the responsible management of risks, protec-tion of the bank’s reputation, and the implementation of transparent business processes. Our Corporate Governance policy provides a framework that spans all legal concerns and operational principles.

Corporate Governance At DG HYP, we apply a model of dual leadership. Two Man-aging Directors lead the company according to existing stat-utory provisions, ensuring compliance within DG HYP. The Supervisory Board and its committees monitor and advise the Management Board.

DG HYP’s internal regulations – for example the Articles of Association and Internal Rules of Procedure – comply with legal requirements. The Supervisory Board consists of 18 members. In accordance with the German Act to Simplify the Election of Employee Representatives to the Supervisory Board (Drittelbeteiligungsgesetz), it comprises twelve mem-bers elected at the Annual General Meeting and six mem-bers elected by employees. In 2017, there were 17 active members of the Supervisory Board. As one colleague left the Board during the course of the year, a new member will be elected in 2018 in accordance with applicable stipula-tions. 23 percent of the Supervisory Board was comprised of women in the year under review (2016: 22 percent).



The Management Board informs the Supervisory Board about relevant plans and developments at an early stage, with special attention paid to conveying the risk situation.

3 Target quota for women on the Supervisory Board, the Management Board and the upper management: p. 38

Risk ManagementAs an integral part of DG HYP’s strategic and operative management of the bank as a whole, our risk manage-ment is closely integrated into the risk management and risk control systems of DZ BANK Group. Assuming risks in a targeted and controlled manner, observing target returns, is an element of our enterprise management. The activi-ties driven by DG HYP’s business model require the ability to identify, measure, assess, manage, monitor and com-municate risks. In addition, maintaining an adequate level of equity backing for risk exposure is a prerequisite for our business. As a guiding principle for all of its business ac-tivities, DG HYP assumes risk only to the extent required to achieve the objectives of its business policy and where the risks seem controllable.

To implement this principle, DG HYP’s Management Board has defined risk strategies for material risks which are in

line with Group guidelines, and which are based on the bank’s business strategy. Each of these sub-risk strategies comprises the business activities exposed to risk, the risk management objectives (including provisions concerning risk acceptance and avoidance), and the measures designed to achieve these objectives. The business and risk strategy, as well as the sub-risk strategies, were discussed with the Supervisory Board.

The regulatory organisational requirements and the allo-cation of risk management responsibilities are set out, in particular, in the Minimum Requirements for Risk Manage-ment (Mindestanforderungen an das Risikomanagement – MaRisk). DG HYP meets these requirements. We have also implemented risk management and risk control systems that fulfil the needs arising in the market and competitive environment. This forms the basis that ensures the proper operation and efficiency of the risk management process.

3 More information: Report on Expected Developments, Opportunities and Risks, Annual Report 2017, p. 47 et seqq.


DG HYP Investors’ Open Table – a client event hosted by DG HYP


Remuneration Oversight Committee and Remuneration Officer After DG HYP was classified as a material institution pur-suant to the German Regulation on Remuneration in Financial Institutions (Institutsvergütungsverordnung – InstitutsVergV) in 2013, the Supervisory Board established a Remuneration Oversight Committee in early 2014. This committee monitors whether remuneration systems for the Management Board and for the bank's employees are ap-propriate – particularly for those employees whose activities have a material impact on the bank's overall risk profile, and for the heads of Risk Controlling and Compliance. In this context, the Remuneration Committee assesses the effects of the remunerations systems on the Group’s risk, capital, and liquidity management. Furthermore, it prepares the Supervisory Board’s resolutions concerning the remunera-tion for Managing Directors.

The Management Board also appointed a Remuneration Officer and a deputy, in compliance with the InstitutsVergV. The Remuneration Officer reports to the Management Board. He/she functions as supervisor, advisor and reporter for the Remuneration Oversight Committee. The Remu-neration Officer prepares an annual remuneration oversight report on the appropriateness of the bank’s remuneration systems. In accordance with legal and regulatory require-ments, we publish information on our remuneration sys-tems on our website.

The general standards of these systems, including employ-er/works council agreements (Betriebsvereinbarungen), are transparent and accessible to all employees in the central handbook for our organisation.

3 Performance-based remuneration: p. 403 Remuneration systems: http://dghyp.de/remuneration

Transparent Financial Reporting DG HYP meets applicable reporting standards to ensure dis-closures are comprehensive and transparent in the Annual Report and Interim Reports. The financial statements are prepared by the Management Board and examined by both external auditors and the Supervisory Board. The financial statements are confirmed by the Supervisory Board.


Compliance Sustainable economic management requires compliance with all applicable legal requirements and provisions, regu-lations and self-commitments as well as internal guidelines. For financial services providers, reputational protection is of particular importance. Countering corruption and bribery, and preventing money laundering and fraud, are therefore amongst the core principles of our business activity.

As a tool to ensure good corporate governance, and in sup-port of our risk management and internal control system, we established an independent Compliance Office, which reports directly to the Management Board. The Compli-ance Office comprises all compliance functions in accord-ance with the minimum requirements for risk management and set out in the German Securities Trading Act (Wert-papierhandelsgesetz), the Central Office (for the prevention of money laundering, terrorism financing and fraud), data protection management and IT security. It has sufficient resources in order to fulfil its various tasks.

Our Compliance Office advises and supports business units in implementing and fulfilling legal requirements. It ensures a constant exchange of information, and makes sure our employees’ conduct is appropriate.

In the year under review, no complaints regarding anti-competitive conduct, cartelisation or monopolisation were registered.

Prevention of Money Laundering, Terrorism Financing and Fraud The responsibilities of our Compliance Office include taking actions to prevent money laundering and fraud. Further-more, it cooperates closely with Risk Controlling’s opera-tional risk group to identify, assess and manage risks. With uniform instruments for the identification of operational risks and processing feedback from risk analyses, DG HYP ensures that the risk of losses is minimised and eliminated at an early stage.

DG HYP’s anti-money laundering policies are designed to prevent the circulation of illegally obtained funds. To ac-complish this, suitable principles and procedures have been developed in line with statutory provisions that are moni-tored internally on an ongoing basis. The same applies for the financing of terrorism.




24

Where it comes to the prevention of fraud, the bank evalu-ates all potentially actionable, internal and external prac-tices which could endanger its assets, and sets measures to prevent any wrongdoing. Every two years, we train our employees on meeting ap-plicable laws and regulations, as well as combating money laundering and fraud. The effectiveness of the aforemen-tioned prevention measures are evaluated on an annual basis as part of the risk analysis.

While suspicious activity reports were filed, they did not result in incidents relevant under criminal law in 2017.

Whistleblowing SystemTo prevent white-collar crime and deter unauthorised in-fluence from being exercised on our employees, DG HYP has instituted a whistleblowing system. As part of this sys-tem, employees can relay information about non-compliant practices, serious violations or other failings to an internal Compliance Officer – confidentially, and without their name being disclosed. The Officer then investigates the incident and takes necessary measures. The Officer may also involve an emergency committee.

Our Guidelines also make reference to the central whistle-blowing platform launched by the Federal Financial Supervi-sory Authority (Bundesanstalt für Finanzdienstleistungsauf-sicht – BaFin), which allows whistleblowers to report tips of regulatory abuses anonymously.

Human RightsAdhering to and honouring human rights is a prerequisite for DG HYP’s day-to-day business. As our business activi-ties are focused on Germany, human rights abuses such as child and forced labour are not an issue. Further topics such as equal treatment, freedom of association and collective bargaining, anti-discrimination or data protection are ad-dressed in internal regulations, prevailing principles and the Group’s Code of Conduct.

DG HYP has pledged to ensure that human rights are ad-hered to along its supply chain. In 2012, the Group elabo-rated sustainability standards that require suppliers to meet

certain social and environmental requirements. All suppliers are aware of these standards, which are based, amongst others, on the principles stipulated by the Global Compact of the United Nations, the Code of Conduct published by the German Association Supply Chain Management, Pur-chasing and Logistics (Bundesverband Materialwirtschaft, Einkauf und Logistik e.V. – BME), as well as on the relevant conventions of the International Labour Organisation (ILO). All suppliers with an aggregate turnover that exceeds a fixed threshold will be reviewed by our procurement de-partment for sustainability criteria and how open they are towards taking further measures to meet or improve upon these criteria. A medium score will lead us to request an extensive self-declaration.

3 More on sustainability management: p. 15

Data Protection Through appropriate technical and organisational security measures, DG HYP guarantees that personal data is pro-tected, and only used for specific purposes. As the number of working steps being digitalised and the amount of in-formation provided electronically are on the rise, such data is growing in importance and sensitivity. We therefore as-sign a high priority to data protection in our ongoing digi-talisation campaigns and continuously advance our security measures to remain on top of technological developments.

Monitoring data protection is the responsibility of an in-ternally appointed Data Protection Officer. In performing their data protection duties, this Officer is free from ex-ternal influence or other instructions, and reports directly to the Management Board. They are responsible for new employee induction, conducting training, and providing updates concerning developments in data protection law. In addition, all employees are bound to confidentiality, pursuant to section 5 of the German Federal Data Protec-tion Act (Bundesdatenschutzgesetz), and are familiar with the provisions of the Data Protection Act and data protec-tion requirements. For training and individual refreshers in data protection, they can turn to both the intranet and the DG HYP process portal’s data protection learning pro-gramme.



There were no relevant infringements of data protection regulations during 2017. The new General Data Protection Regulation will come into force in 2018, which we will ad-here to and communicate accordingly.

3 Protection of client data: p. 303 Digitalisation: Annual Report 2017, p. 11

German General Equal Treatment Act Our employees, especially our executive staff, receive regu-lar training on the German General Equal Treatment Act (Allgemeines Gleichbehandlungsgesetz). New employees receive this training at the very start of their career with DG HYP. In the year under review, no violations or com-plaints regarding non-compliance with the German General Equal Treatment Act were registered.

3 Equal opportunity: p. 37

Our Code of Conduct To hold us accountable beyond legal requirements and market standards, we have committed ourselves to our own

set of internal rules and values, upon which we built our Guiding Principles and Management Guidelines, and which are also reflected in our Code of Conduct developed jointly with DZ BANK Group. Our Code of Conduct is a risk preven-tion, leadership and communication tool, and documents our understanding of ethical and responsible conduct. The Code of Conduct serves as a framework of minimum standards that are then further specified through internal instructions, guidelines and the central handbook for our organisation.

Apart from basic rules to counter corruption and bribery, money laundering, financing of terrorism and white-collar crime, our Code of Conduct provides guidelines on sustain-ability and responsibility vis-à-vis our clients, business part-ners and employees. It serves as a compass for our daily conduct, and has been communicated to all employees, who can access the Code via our intranet as well as other means.

3 http://dghyp.de/codeofconduct/

At EXPO REAL trade fair, Munich



2626

SUSTAINABLE BANKING BUSINESS A RESPONSIBLE APPROACH

TO FINANCING



27

Our Core BusinessReal estate represents an important economic factor in Ger-many, and is of tremendous social significance. As such, commercial real estate finance is not only an indispensable core business area of the Volksbanken Raiffeisenbanken cooperative financial network. It is also highly relevant in terms of sustainability, with DG HYP – as the specialist, cen-tre of expertise, and first point of contact for cooperative banks – playing a starring role.

3 Business model: p. 11

Every day, when making financing decisions, we are facing questions of sustainability. The criteria we apply to each real estate project comprise both strict risk and return consid-erations, and social and environmental aspects. According to these criteria, VR WERT, a wholly-owned subsidiary of DG HYP, prepares lending and market valuations that assess properties in terms of the following aspects: GRI G4-17

• economic quality, e.g. occupancy, flexibility of property structure, efficiency of ground plan,

• technical quality, e.g. construction, fire safety, sound-proofing, facilities engineering, room quality, demolition options, recyclability, materials employed,

• functional quality, e.g. location, accessibility for people with disabilities and the general public, space efficiency,

• socio-cultural quality, e.g. architecture, city planning, design, comfort, user satisfaction,

• ecological quality, e.g. waste and contamination audits, product selection, effects on global and local environ-ment, sustainable use of resources,

• lifecycle quality, e.g. re-lettability, stability of value in-cluding third-party usability, and costs for conserving the value of the property.

The objects to be financed generally fulfil standards such as the certificate of the German Sustainable Building Council (Deutsche Gesellschaft für Nachhaltiges Bauen e.V. – DGNB) or the Leadership in Energy and Environmental Design (LEED) of the U.S. Green Building Council. These standards are frequently established for local authority compliance when real estate is allocated, and they are checked as part of a certification process. They are also essential to the value and resale value of the property, and play an important role in the lending valuation of VR WERT and in our financing decision.

The high quality of VR WERT’s valuations was confirmed for another three years in 2015 by HypZert GmbH, an entity established by major associations of the German financial sector to be the leading national organisation for real estate valuers, with the “Approved by HypZert” hallmark.

12.2012 12.2013 01.2015 12.2017


imug | rating results* 2015 rating 2016 rating 2017 rating Public-sector Pfandbriefe very positive (AA) very positive (AA) very positive (A)Mortgage Pfandbriefe positive (BB) positive (BB) positive (BB)Sustainability Rating positive (BB) positive (BBB) positive (B)


Sustainability Ratings: An “A” from imug | rating for DG HYP’s Pfandbrief IssuesIndependent sustainability ratings have not only become part of the decision criteria for many institutional investors, they also help us to continuously review our sustainability performance and improve it where needed.

The April 2018 sustainability rating issued by imug (imug | rating), a research and rating agency, was a pleas-ing result, with a very good rating in the field of Public-sector Pfandbriefe. The Uncovered Bonds category was re-named in 2017 and reported as Sustainability Rating. As in previous years, we scored a good rating in the Mortgage Pfandbriefe category.

oekom research AG, another sustainability rating agency, awarded DG HYP “Prime Status”, with C+ on a scale from A+ to D– (as of December 2017). The Prime Status is awarded to companies which, according to the oekom Corporate Rating for social and environmental performance, rank among the leaders in their industry. DG HYP performed well in all of the following categories: staff and suppliers, corporate governance and business ethics, as well as products and services.

oekom results



THE PFANDBRIEF: A SUSTAINABLE INVESTMENT

Pfandbriefe are covered bonds with a dual recourse feature. They

are considered a safe haven in the investment universe since, in

case of the issuer becoming insolvent, investors also have recourse

to the cover assets pool. The value is defined through the Ger-

man Pfandbrief Act (Pfandbriefgesetz), which establishes specific

security mechanisms for investor protection and the basis for the

high quality of the Pfandbrief. To issue Pfandbriefe, a licence is

needed, which the Federal Financial Supervisory Authority (Bun-

desanstalt für Finanzdienstleistungsaufsicht – BaFin) grants only

when certain minimum requirements are fulfilled. Furthermore,

the Pfandbrief issuer needs to have a risk management system in

place that is appropriate for Pfandbrief business, and identifies,

assesses, manages and monitors all risks associated with it. The

high quality of the Pfandbrief also rests in the strict requirements with regards to the cover assets pool:

pursuant to the German Pfandbrief Act, only real estate loans, and only up to the first 60 per cent of the

mortgage lending value, are eligible as cover pool assets for Mortgage Pfandbriefe. Therefore, the Pfandbrief

is in every sense a long-term funding vehicle that meets investors’ security and transparency criteria – even

in difficult capital market phases.

With the help of our conservative risk strategy and our internal credit guidelines, we have laid the ground-

work to continue delivering, consistently and uniquely, the high quality standards of our Pfandbrief issuance.

Reinforcing Sustainable Lending Over the next four years, we want to shape our lending process to fit the mould of sustainability criteria even bet-ter. This is what the “Sustainability and Lending” working group – established in September 2015 within DZ BANK Group’s Corporate Responsibility Committee (CRC) – is working on. A first version of a Group-wide policy on the topic was drafted in 2016: further actions are currently be-ing developed.

Client Satisfaction Client satisfaction is a major success factor for our business. This is why we regularly review our performance and en-gage in dialogue with our clients, who include investors, residential and commercial real estate developers, as well as housing companies. We present our products and serv-ices extensively with information materials, in personal dis-cussions, regular meetings, a series of events, and on our website.



In the spring of 2017, we mandated the market research firm Kantar TNS for the second time to conduct a repre-sentative client survey. The goal of this survey was to iden-tify fields of action for our positioning in the market and our offering, and to identify ways for optimisation.

With 84 percent of our clients saying they were completely or very satisfied with DG HYP, we improved our service qual-ity from an already high level (2013: 76 percent). The rea-sons for this improvement are a high degree of reliability, and competent personal contacts. The survey also showed that the number of clients providing positive feedback rose markedly. Customer loyalty is above the market average of 72 percent, at 87 percent.

Overall, DG HYP is seen as a premium provider in the market – and also as a provider that will close business not based on price alone, but also thanks to a convincing service offer-ing. In the context of the latter, the bank’s cooperation with the Volksbanken Raiffeisenbanken cooperative financial network plays an important part. Almost half of the clients questioned confirmed that their financing was conducted hand-in-hand with a Volksbank or Raiffeisenbank.

To stabilise these high levels of client satisfaction, it will be important not to rest upon these laurels, but to keep im-proving and optimising going forward.

3 Stakeholder dialogue: p. 18 et seqq.

Recognising our performance as a bank once more, during 2016 the European Real Estate Institute (EUREB-Institute) named us as the third most powerful real estate brand of 2015 in the Banking category. The annual award is based on a representative survey amongst experts to identify the most powerful real estate brands in ten categories. The main reasons for our high ranking were the “regional com-petence”, “client loyalty” and “recommendation inten-tion” performance criteria.

Complaints Management A key indicator for the quality of our work is client satisfac-tion. It shows where we are fulfilling and surpassing our clients’ expectations, but also where we need to improve. To capture and manage complaints systematically, we devel-oped a complaints management system that lies within the direct responsibility of the Management Board. Our clients, cooperative partners and other third parties may contact Complaints Management by phone, email or in person. All complaints received are reviewed in the divisions in a timely manner, and assessed according to definitive criteria to en-sure that effective measures can be developed. In general, we seek to resolve misunderstandings and difficulties at an early stage and in direct talks with our clients – and to find individual solutions, so as to avoid complaints altogether.

Protection of Client DataPursuant to our internal Data Protection Policy, which is mandatory for all employees, we guarantee our clients that their personal data will be protected and only used for spe-cific purposes.

Protecting our clients’ data is also central to our projects for digitalising the client interface: We want to fulfil our clients’ demands for quality-enhanced processes, higher efficiency and speed, while at the same time complying with the high-est standards on data protection and security.

Consumer protection requirements do not apply to DG HYP due to the nature of the bank’s product portfolio and the bank’s client target groups. As we do not offer products in the traditional sense, we do not engage in advertising ac-tivities that could be defined as product marketing.

3 Data protection: p. 243 Digitalisation: Annual Report 2017, p. 11


FINANCING SUSTAINABLE PROPERTIES

2017 was another year that saw DG HYP supporting and financing attractive projects with high sustainability standards. One of these projects was the office building T8 (short for its address Taunusanlage no. 8) – a flagship property with a view of Frankfurt’s “Alte Oper”, the city’s original opera house – in the heart of the banking district. T8 comes with an exemplary sustainability design: energy-efficient lighting that is presence-dependent, rain water recovery and water-saving fittings make for efficient wa-ter management, and the indoor climate is regulated as needed at any particular workplace. This green building is LEED certified at the Platinum level and pre-certified with

the DGNB Gold standard.


Cidatis, EsslingenStriving for a DGNB gold certificate.

Dreiländergalerie, Weil am Rhein“Dreiländergalerie” relies on a consistently green building design.

© CEMAGG, Weil am Rhein GmbH & Co. KG© RVI GmbH

© Klaus Helbig Photography

T8, Taunusanlage 8, Frankfurt/Main, Germany



EMPLOYEES SOCIAL RESPONSIBILITY IS AN INTEGRAL PART OF OUR CORPORATE CULTURE


Responsible Human Resources ActivitiesMotivated and skilled employees are our most vital resource because it is their commitment and dedication that decide whether the bank’s activities will render success from an economic point of view. It is not only for ethical and legal reasons that we provide a working environment in which everyone is treated with respect, openness and fairness. It is also because with such an environment we lay the ground-work for long-term entrepreneurial success.

We purse a responsible human resources policy, one that aims to fulfil our employees’ needs, whilst meeting eco-nomic requirements. We offer our staff performance-based remuneration, flexible working hours without a set sched-ule, and a family-conscious corporate culture. Our attractive offer is complemented by extensive continuing professional development offers, social benefits, plus comprehensive oc-cupational health management. We also place great em-

phasis on a trusting cooperation with the works council, as evidenced by successfully executed joint projects – for example, in the realm of promoting women in business, or health management.

Demographic change and competition for specialists and executives will present major challenges in the years ahead. An ageing working population and a looming shortage of skilled labour present the bank with the aim of retaining more experienced staff longer and fostering their commitment.

At the same time, we need to increase our attractiveness as an employer for potential employees, and make an effort to recruit more female talent. We aim to future-proof our hu-man resources management with an approach that reflects the needs of different stages in life, strengthening our repu-tation as an employer and our competitiveness.

0 % 5,29 % 16,27 % 33,33 % 36,86 % 8,24 %

below 20 20 to 29 years 30 to 39 years 40 to 49 years 50 to 59 years 60 years or older

EMPLOYEE AGE STRUCTURE


SOCIAL RESPONSIBILITY IS AN INTEGRAL PART OF OUR CORPORATE CULTURE


Corporate Culture and Management PrinciplesOur managers are responsible for upholding a corporate culture that motivates and supports our staff and creates a stable atmosphere for them to work in.

3 Values and principles: p. 9

Employee SurveyIn order to establish a dialogue with our employees, and re-ceive feedback on the working atmosphere and the bank’s development, we regularly organise employee surveys. The

most recent survey was conducted online, in 2014, and its findings show above-average employee satisfaction and a high level of organisational identification. In particular, em-ployees value fair working conditions, independent work ethic, good teamwork, and a positive, personal tone. The survey also showed that DG HYP’s employees back the bank’s solid and reliable business model.

Our next employee survey will be embedded in the change management concept that will accompany the merger of DG HYP and WL BANK to form DZ HYP.


KEY BENEFITS AT A GLANCE

PERFORMANCE-BASED REMUNERATION

FLEXIBLE WORKING HOURS WITHOUT A SET SCHEDULE

VARIOUS FLEX-TIME MODELS

EMPOWERING THE NEXT GENERATION

EXTENSIVE CPD OFFERS

EXTENDED SOCIAL BENEFITS

POSITIVE, FAMILY-FRIENDLY WORK ENVIRONMENT

COMPREHENSIVE OCCUPATIONAL HEALTH MANAGEMENT


Training and Continuing Professional DevelopmentDG HYP aims to maintain the professional and personal expertise of its staff and on promoting their potential, not least because the job requirements in our industry are changing rapidly. We offer a broad range of training and continuing professional development (CPD) options, com-prising in-house seminars, departmental training, team-building measures, workshops, language classes and IT training, and continuously adapt this range to meet current requirements, for example with regards to regulation. Our employees may also attend external seminars and visit other DZ BANK Group entities.

Employees regularly sit down to converse with their manager as to what kind of training they need. These dis-cussions go above and beyond the scheduled annual per-formance review. In addition, there are annual development review meetings in which we take a look at the individual development of each employee, and also at the develop-ment of the team and at trends each department has to prepare for – partly through further qualification.

During the year under review, DG HYP’s employees com-pleted 2.0 training days on average. The year-on-year de-crease, from 4.0 days in 2016, can be explained by the high number of topics covered in the past, which drove demand down. In total, 76 per cent of employees took part in at least one training measure during 2017. Complementing the traditional CPD offering, there were workshops aimed at improving collaboration, as well as individual manage-ment coaching sessions.

32 per cent of the trainings and seminars held in 2017 fo-cused on professional development measures; 17 per cent dealt with soft skills, i.e. personality, team spirit and col-laboration, as well as target-group-specific topics (business empowerment in sales, advancement of female potentials). In the context of such soft skills, three formats are now es-pecially well-established: “Identifying your own strengths and potential”, “Assuming responsibility for yourself” and “Reflecting on your personal mindset”.

Further to existing measures, DG HYP plans to expand its CPD offering towards age-appropriate learning. Against the background of demographic change, it is our goal to increase interest in training measures and benefit from the experience and knowledge of older employees.

DG HYP Real Estate AcademyA fixture in our CPD programme is the DG HYP Real Es-tate Academy, which we established in 2010 in cooperation with the International Real Estate Business School (IRE|BS), Regensburg. In 2017, the fifth year of the academy opened with a total of 20 participants. Among them were ten em-ployees from cooperative banks. The programme comprise three modules, with a total of twelve and a half days of lecture on the real estate business, as well as a demanding project to be completed in small teams. The students of the fifth year will present the results of their theses – dealing with the conversion of historic buildings into a co-working space within a district development in Hamburg – to a com-mission comprised of the DZ HYP Management Board, the Executive Board of IRE|BS and one of our clients in Septem-ber of 2018.

3 CPD for women: p. 38

Empowering the Next GenerationOwing to demographic change and growing competition for specialists and executives, developing and maintaining the attraction of the employer has moved to the forefront of strategic human resources activities. DG HYP decided to take early action against the shortage of skilled young talent, and in 2010 developed an 18-month trainee pro-gramme, offering vocational training for qualified univer-sity graduates. 2017 was the programme’s sixth year. One trainee, who will focus on commercial real estate finance, was enrolled. ABSOLVENTA, the leading online jobs por-tal for young academics, once again awarded us a seal of quality for our "career-promoting and fair trainee pro-gramme", affirming DG HYP's high-quality trainee scheme.



Dual-Study Programme In addition to our trainee programme, we also offer a three-year dual study programme, leading to a Bachelor of Arts degree in Banking & Finance – a second pillar to attract young talent. This dual-study programme consists of alter-nating intensive practical phases in different departments of the bank, and theoretical studies at the vocational acad-emy for the banking industry (Berufsakademie für Bankwirt-schaft) in Hanover. After two and a half years, participants also have the opportunity to take the Chamber of Industry and Commerce (IHK) examination. After successful comple-tion of such a dual study programme, DG HYP frequently retains certain participants. There are currently two students attending DG HYP's dual study programme.

InternshipsStudents and pupils may also get to know DG HYP through internships, student clerkships or their academic (thesis) work. When designing such projects, we adhere to the Fair Company Codex, a voluntary self-commitment we made in 2014 and for which we were awarded the corresponding seal.

To help refugees integrate into German society and help them get an understanding of German professional life, in early 2016 we committed to offering internships for a pe-riod of two years. Many DG HYP colleagues have voiced their willingness to support this project as mentors. During the year under review, a young woman from Afghanistan was provided with a three-week placement.


6

Je nach Ihrer Zielposition werden die einzelnen Phasen

in der Hamburger Zentrale oder an einem unserer

attraktiven Standorte stattfinden.

Ihre praktische Ausbildung ergänzen wir durch maß-

geschneiderte Theorieeinheiten mit der Bildungs-

akademie. Unser Kooperationspartner ist die Inter-

national Real Estate Business School IRE|BS

Immobilienakademie der Universität Regensburg,

einer der renommiertesten Weiterbildungsträger in

der Immobilienbranche. Beleuchtet werden ganz

bewusst Inhalte, die weit über das Finanzierungsge-

schäft hinausgehen. Ihr Nutzen dabei: Ein Blick über

den Tellerrand und ein wertvoller Beitrag zur Stärkung

Ihres fachlichen Profils.

Students at DG HYP Real Estate Business School


Equal OpportunityEqual opportunity and anti-discrimination are cornerstones of our corporate policy and our human resources manage-ment. We treat all employees equally, regardless of their heritage, skin colour, religion, gender, age, nationality, sexual orientation, gender identification, marital status or degree of disability, and make sure that they receive regular training on the German General Equal Treatment Act (All-gemeines Gleichbehandlungsgesetz).

We value the diversity of our employees and therefore de-cided to sign the German Charter of Diversity (Charta der Vielfalt) in 2012.

The principles of equal treatment and anti-discrimination also apply to questions of wages and salaries. In 2017, a new law came into force to foster pay transparency be-tween men and women. DG HYP complied with the new statutory regulation on schedule and has enabled all em-ployees, irrespective of their gender, to compare their salary with an anonymous comparison group of the other gender.

Our corporate culture promotes integration: as such, se-verely disabled members of staff are an important part of our workforce. As in the previous year, 5.1 per cent of our employees were severely disabled. DG HYP thereby complies with the legally binding quota of 5.0 per cent of employees being severely handicapped (section 71 of the German Social Code Ix). Severely handicapped employees, together with their interests and concerns, have dedicated representatives.

3 Performance-based remuneration: p. 40


4.0 days

1,647 €

2016

3.4 days

1,504 €

2015

2.0 days

1,150 €

2017

Training days Training costs

TRAINING DAYS AND COSTS PER EMPLOYEE


Promoting Women: Statutory Quotas and Corporate InitiativeIn accordance with statutory requirements, DG HYP is obliged to set targets for the proportion of women on the Supervisory Board, the Management Board, and the two management levels below the Management Board – as well as target dates for achieving them. Against this back-ground, in accordance with section 111 (5) of the AktG, in 2015 the bank’s Supervisory Board set a target quota of 22 per cent for the share of women on the Supervisory Board, and a target quota of 0 per cent for the share of women on the Management Board. The target date for implementation of these quotas was 30 June 2017. Both quotas were met at expiry of the term and set at the same level for the time until 31 July 2018.

In accordance with section 76 (4) of the AktG, in 2015 the bank’s Management Board agreed upon a target quota of 9 per cent for the share of women on the first management level below the Management Board, and a target quota of 13 per cent for the share of women on the second man-agement level below the Management Board. The target date for implementation of these quotas was 30 June 2017.

Whilst the quota at the first management level was once again reached, due to unexpected organisational changes and employee turnover, the second management level tar-gets could not be achieved. The proportion of women at the second management level has been increased by one percentage point – from 10.3 to 11.3 per cent – compared to the target date set in 2015.

In accordance with section 76 (4) of the AktG, on 21 June 2017 DG HYP’s Management Board set a target quota of 9 per cent for the share of women on the first management level below the Management Board, and a target quota of 13 per cent for the share of women on the second manage-ment level below the Management Board. The target date for implementation of these quotas is 30 June 2019.

Making Life SimplerAchieving a proper work/life balance can be a challenge, especially where there are children to take care of or family members to nurse, but also where staff dedicate a share of their free time to charity. With a broad range of measures, we aim to make life easier for our staff, and represent a cor-porate culture that reconciles family needs with career plan-


1 Fair Companies offer internships for students; the goal of these intern-ships is to provide professional orientation and guidance.

2 At Fair Companies, the tasks and goals of interns are clearly outlined, and all interns have a fixed contact in the company.

3 Fair Companies employ interns for a sensible period of time.

4 Fair Companies do not fob off graduates applying for a job with an internship.

5 Fair Companies pay their interns an adequate allowance.

6 Fair Companies provide transparency on tasks, contacts and the goalsof the internship, as well as on the Fair Company Codex.

THE FAIR COMPANY CODEx


ning. This is the high standard that we have set ourselves. Together with our employees, we are always in search of individual solutions to personal matters.

Flexible working hours are an integral part of these solu-tions. Instead of setting a core time, we run time-savings accounts and reach agreements on team and department levels to make sure that the needs of both the individual employee and the workplace are met. In addition, we offer various part-time models and occasional mobile working.

All full-time employees are entitled to 30 vacation days. For part-time employees, the number of vacation days is sub-ject to the working days per week that have been agreed upon individually. This pro-rata calculation is also based on an annual vacation entitlement of six weeks.

“berufundfamilie” Certificate In recognition of our family-oriented human resources poli-cy, the non-profit Hertie Foundation awarded us the “audit berufundfamilie“ certificate in 2013, and confirmed it in

2016 following an extensive re-audit process. Above and beyond our flexible working hours, we also offer profes-sional counselling as well as childcare support and support for employees who nurse family members, through cooper-ation agreements with pme Familienservice and Deutscher Pflegering. External experts are also there to help with per-sonal emergencies or problems of all kinds. There is also a parent-child office available at short notice, and we offer emergency childcare where necessary.

The “berufundfamilie” auditors evaluated DG HYP and confirmed that we are a family-friendly employer with many practices and policies that allow individuals to balance work and family commitments. Over the course of the audit, which took various months, we developed more measures to further help our employees address work-life balance is-sues. These new initiatives will be put into practice step by step over the coming three years. As we successfully completed the re-audit process, we are now entitled to bear the seal “berufundfamilie” until 2020.


During 2017, ABSOLVENTA, one of the largest German employment web-sites for graduates and young professionals, again awarded us their “career- promoting & fair trainee programme” seal.

The “audit berufundfamilie“ certificate was confirmed in 2016 following an extensive re-audit process. Entitled to continue to bear the seal “berufund-familie”, DG HYP advances family-friendly action.


Performance-Based Remuneration Our remuneration strategy observes our business and risk strategies, whilst also adequately and transparently recog-nising the achievements of our employees. Remuneration is based only upon qualifications and performance; gender-related aspects are not taken into account. A fixed base sal-ary enables our employees to plan for the future, and gives them a regular income upon which they can rely. We further honour their achievements by paying a performance-based bonus once a year. In addition to commercial success, we honour individual and team achievements. The variable component is determined based on the individual’s per-formance assessment, or the achievement of agreed targets pursuant to the provisions in the employer/works council agreement (Betriebsvereinbarung) on variable remuneration.

308 members of staff were non-tariff employees as at 31 December 2017 (2016: 282); 179 were tariff employees (2016: 193), three (2015: eight) received a trainee salary or other forms of remuneration.


USE OF FLExIBLE WORKING HOURS

Employees (%) 2017* 2016* 2015*

Flexible hours 100.0 100.0 100.0

Full time 81.0 78.5 81.4

Part time 19.0 18.1 18.5

Occasional mobile working 76.7 61.9 48.8

Sabbatical 0.0 0.0 0.7

Partial retirement 1.0 0.8 1.5

Parental leave 2.3 2.9 1.5

* DG HYP's total workforce, as at 31/12/2017

SOCIAL BENEFITS

On top of a performance-based remuneration, we offer comprehensive social benefits for our employees to enhance their social protection and improve their work/life balance.

Our benefits include corporate retirement provisioning, childcare support, a transit card (“job ticket”) and transit allowance for public transport, group accident insurance, a corpo-rate sports programme, anniversary bonuses, a subsidised canteen, and financial support for next of kin. DG HYP also contributes to em-ployees’ capital-building payment schemes.


Remuneration of the Management Board The Management Board is remunerated in accordance with legal and regulatory requirements. The Supervisory Board is responsible for the Managing Directors’ remuneration and conducts regular reviews, in particular with regard to ap-propriateness and changes necessary to comply with new regulatory requirements. The remuneration is comprised of a fixed and a variable component. Payment of the variable component is dependent on a sustainable development of the bank and linked to enterprise value. Accordingly, and pursuant to the German Regulation on Remuneration in Financial Institutions (Institutsvergütungsverordnung – InstitutsVergV), as amended in December 2013, the vari-able remuneration of the Management Board is calculated on the basis of multi-year criteria, and risk-related indicators are taken into account.

3 Remuneration oversight committee: p. 23

Remuneration of Risk Takers Employees whose professional activities may have a mate-rial impact on the bank’s risk profile are classified as risk takers. Where the individual remuneration for the 43 risk takers at DG HYP (including Managing Directors) exceeds

a certain limit, provisions in the employer/works council agreement (Betriebsvereinbarung) on retention, payment and entitlement conditions apply. 80 per cent of the vari-able remuneration component is retained for up to four years following determination. During this time, a minimum of 50 per cent of the variable remuneration depends upon DG HYP’s sustainable performance.


Years

201513.8

201613.7

201714.3

AVERAGE LENGTH OF COMPANY SERVICE


Health and Safety in the Workplace As we take our responsibility as an employer seriously, we aim to create a safe working environment by not only elimi-nating factors that may trigger or worsen conditions, but also taking preventive measures to preserve and improve employee health – an important cause also in economic aspects as this means safeguarding DG HYP’s ability to per-form.

Occupational Health Management Our comprehensive occupational health management con-tributes to the performance, health and commitment of our staff. It also comprises a versatile range of in-house sports, healthy meals in the staff restaurant, advice from the com-pany doctor, regular health checks and seminars to promote employee health.

Our health management measures were expanded and developed further during the year under review. As in the previous year, we made the threat of work-related mental stress a priority. To identify and reduce contributors to occu-pational stress, we had conducted a threat analysis in 2015. The objective was to identify and mitigate any factors in our work arrangements which might have a negative im-

pact. With the results of the threat analysis prepared on a team level, every executive was able to develop appropriate measures together with their staff during the year under review. Additionally, we equipped all workstations with height-adjustable desks in 2015 and 2016.

During 2017, 163 employees took up our offer of corpo-rate sports and fitness programmes, such as complete body training, boxing and running (2015: 149). In the summer months, we again took part in the “Cycle to work” initia-tive, started by the German Cycling Club (ADFC) and the AOK health insurer. Around 40 colleagues participated, cycling almost 9,670 kilometres between 1 May and 31 August 2017, alone or in teams. Furthermore, DG HYP running teams participated in sporting events such as the “MOPO” relay race in Hamburg’s city park.

The average illness rate 2017 was at an acceptable 3.6 per cent, slightly improving on the previous year’s value (2016: 3.8 per cent). Last but not least, we not only invest in preventive occupational health measures; we also support employees returning after longer periods of illness, via an occupational re-integration programme.


COMPREHENSIVE HEALTH MANAGEMENT

PROMOTION OF HEALTH

Exercise/company sports offers

Lectures, information material

Healthy diets

Relaxation/stress management

Vaccination campaigns

Healthcare action day

Mobile massage service

OCCUPATIONAL HEALTH AND SAFETY

Risk assessment

Occupational medicine/health check-ups

Workplace visits/advice on workplace ergonomics

Information and advice

OCCUPATIONAL RE-INTEGRATION MANAGEMENT

Re-integration following longer periods of illness or other absence

Personal discussi-ons with returning employees

CATERING

Healthy meals in the in-house restaurant and café

Workplace nutrition

PERSONNEL DEVELOPMENT

Occupational health seminars for managers

CPD measures/seminars on

healthcare, stress, psychological pressure



Occupational Safety In accordance with the statutory provisions and require-ments for occupational and fire safety, all employees receive safety training when they join us, which are conducted by our occupational safety specialist. We also carry out regular

workplace inspections, safety instructions and measures to raise awareness for occupational safety issues. As in the pre-vious years, there were no work-related fatalities in 2017. The rate of work and commuting accidents at DG HYP was 0.6 per cent in 2017 (2016: 2.1 per cent).

2017 2016 2015

Employees (number)* 480 465 459 Temporary employees 20 19 10 Permanent employees 460 446 449

Expenses for compulsory social security contributions (€ mn)** Wages and salaries 43.7 41.6 39.9Company pension schemes 6.0 6.1 0.8Other social security contributions 5.7 5.4 5.2 Percentage of women Total workforce 40.7 41.1 40.5Executive positions 11.3 8.5 10.3

Average age 47.1 46.1 46.0

Employees with disabilities (%) 5.1 5.1 4.7

Fluctuation (%) 4.2 1.8 3.7

Illness rate 3.6 3.8 3.6

Workforce by type of employment (%) Non-tariff employees 63.2 59.4 58.2Tariff employees 36.8 40.6 41.8Other employees – _ –with the option to take special leave 100.0 100.0 100.0with the option to work part-time 100.0 100.0 100.0with company pensions 95.8 95.4 97.8

represented in the works council 97.8 97.7 97.6

* Average for the year ** Reported in accordance with IFRS for the first time with this Report

STAFFING INDICATORS



ECOLOGICAL RESPONSIBILITY AWARE OF ECOLOGICAL

CONSEqUENCES


Group-wide Environmental and Climate Strategy A sound and stable environment is the basis of human exist-ence; it is also a basic requirement for every type of business activity. Systematic environmental and climate protection take a major role in our day-to-day work, with our focus being on those areas where we have a direct influence. Our environmental management focuses on optimising the use of energy and resources at the bank, and on using renew-able energy sources to consistently reduce our operational carbon footprint. Facility management, in particular, holds very specific potential for minimising negative contribu-tions. We also seek to reduce mobility-related emissions such as those resulting from business travel. An environ-mentally friendly supply chain of products and services is also part of our sustainable corporate policy.

As part of DZ BANK Group’s Corporate Responsibility Com-mittee (CRC) and together with the other units represented there, we developed a Group-wide environmental and cli-mate strategy in 2014 that sets standards for a compelling environmental policy, efficient environmental organisation, and appropriate processes. In order to exchange know-how and expertise, and improve strategy, the experts of a dedicated “knowledge centre” meet regularly. In addition, we are currently working on a climate strategy specific to DG HYP, aimed at reducing greenhouse gas emissions by 2050.

Organisation and ManagementTo further advance environmental protection at DG HYP and keep track of the effects of our business activities for the environment, we systematically record and analyse our resources consumption. This makes it easy to identify where action needs to be taken, and where there is room for im-provement. In accordance with our environmental policy, we derive environmental targets and fix the measures we need to take in order to meet them. These efforts are coordinated by DG HYP’s Environmental Officer, who is responsible for

further advancing the bank’s environmental management system. Together with her team of two coordinators, the Environmental Officer ensures that the departments are included in the process. The departments formally assume responsibility for certain environmental topics and success-ful implementation of our measures.

3 Sustainability programme, ecological responsibility: p. 63

Engaging Our EmployeesFor environmental management to bear fruit, it needs to be supported by all colleagues. This is why we place great importance on engaging our employees and keep them up-dated about goals and results in the realm of environmental and resource protection. We want to motivate our employ-ees and make them see environmental protection as their own cause, both in their professional and private lives. More and more of our tenants and service providers are following suit and engaging their employees.

We regularly hold environment and sustainability days, during which staff learn interesting and useful facts about energy, water, CO

2 emissions and waste.

In collaboration with Operational Health Management, the bank held a “Biking and Sustainability Day” in July 2017 to further promote alternative concepts of mobilities at DG HYP. Employees had the opportunity to examine details about all the various models on display, at a series of infor-mation stands set up by various Hamburg bicycle dealers. In addition, employees could have their own bicycles checked for safety, and coded to deter theft. As a follow-up to this special day, we offered a professionally guided cycling tour in September.

A safety check for bicycles and a cycling tour for our col-leagues will also be on the agenda in 2018.



Greenhouse Gas Emissions Our calculations of greenhouse gas emissions (CO2 emis-sions) are based on the VfU indicator system (Association for Environmental Management and Sustainability in Finan-cial Institutions). In accordance with the Greenhouse Gas Protocol (GHG Protocol), we differentiate between the fol-lowing types of emissions in our reporting:

• Scope 1: Direct emissions.

• Scope 2: Since 2015, the GHG Protocol asks for data to be reported in two ways: one based on a so-called location-based method, and one based on a market-based method (dual reporting). Pursuant to the VfU we

continue to allocate scope 2 emissions based on suppli-er- and product-specific emission factors (market-based method).

• Scope 3: Other indirect emissions, e.g. related to trans-portation and logistics, the use of products and services, supply and disposal for our service providers, and busi-ness travel.

This system allows us to identify the main sources of emis-sions within the bank, calculate our carbon footprint, and take dedicated measures within our environmental man-agement system to increase energy efficiency, save energy, and decrease greenhouse gas emissions.

DG HYP'S CARBON FOOTPRINT

PURCHASED ELECTRICAL POWER FOR OWN CONSUMPTION

FUEL COMBUSTION (FLEET) BUSINESS TRAVEL | VEHICLES USED BY CONTRACTUAL PARTNERS | PRODUCTION OF PURCHASED MATERIALS | RAW MATERIALS

PROCESSED | PRODUCT USE AND CONSUMPTION

SCOPE 3*SCOPE 20 tonnes (indirect)

SCOPE 1663,52 tonnes (direct) 361,53 tonnes (extended)

1.025,05 tCO2 SF

8 CH

4 N

2O HFCs PCFs

*Scope 3 takes into account the use of resources for paper, water, waste, and business travel.



CO2 EMISSIONS

Unit 20171 20161 20151

Total electricity-related CO2 emissions kilogrammes (kg) 10,549 11,850 11,234Specific electricity-related CO2 emissions kg/FTE 32 35 34 Total heat-related CO2 emissions kilogrammes (kg) 484,685 522,454 464,014 Specific heat-related CO2 emissions kg/FTE 1,448 1,530 1,384Total water-related CO2 emissions kilogrammes (kg) 3,815 3,930 3,789Specific water-related CO2 emissions kg/FTE 11 12 11Total paper-related CO2 emissions kilogrammes (kg) 33,568 24,323 23,294Specific paper-related CO2 emissions kg/FTE 100 71 69Total waste-related CO2 emissions kilogrammes (kg) 1,944 1,329 898Specific waste-related CO2 emissions kg/FTE 6 4 3Total travel-related CO2 emissions2, 3 kilogrammes (kg) 490,493 423,753 477,4324

Specific travel-related CO2 emissions4 kg/FTE 1,466 1,241 1,0404

Total CO2 emissions kilogrammes (kg) 1,025,054 987,639 980,6524

Total specific CO2 emissions kg/FTE 3,063 2,893 2,9254

1 75 per cent coverage per full-time employee (FTE); part-time positions are added up to a 100 per cent basis. Including permanent and temporary employees (excluding Management Board, interns, those on placements, trainees, working students and externals). Our calculations are based on the VfU indicator system; they therefore include preceding and following processes as well. 2 100 per cent coverage per full-time employee (FTE) 3 including private vehicle usage 4 Following a change of the leasing company in 2015, we are now able to indicate the real annual mileage of vehicles. CO2 indications therefore are more accurate than in previous years; indications therefore may only be compared with those of 2015 and 2016.

2017

3,063

2017

1,025,054

2015

2,925 2,893

2016

987,639

20162015

980,652

0.5

2.5

3.5

1.5

0

800

1,200

400

0

Kg. 000‘s Kg. 000‘s/FTE

Total Specifi c



ELECTRICITY AND HEAT CONSUMPTION

Unit 2017* 2016* 2015*

Electricity consumption Total electricity consumption kilowatt hours (kWh) 1,548,989 1,740,028 1,649,690 of which sustainable hydroelectricity kilowatt hours (kWh) 1,548,989 1,740,028 1,649,690Specific electricity consumption kWh/FTE 4,629 5,097 4,920

Heat consumption (natural gas) Total heat consumption kilowatt hours (kWh) 1,892,495 2,039,966 1,811,782 Specific heat consumption kWh/FTE 5,655 5,975 5,403

* 75 per cent coverage per full-time employee (FTE); part-time positions are added up to a 100 per cent basis. Including permanent and temporary employees (excluding Management Board, interns, those on placements, trainees, working students and externals).

Electricity and Heat Consumption Since 2013, DG HYP has sourced 100 per cent of its elec-tricity from renewable energy sources. To be precise, the bank consumes certified hydroelectricity only. During the year under review, electricity consumption amounted to 1,548,989 kWh, and was down 11 percent on the previous year (2016: 1,740,028 kWh). On a per-FTE basis, electricity consumption was 4,629 kWh (2016: 5,097 kWh).

We have taken a number of measures to reduce our elec-tricity consumption. Apart from raising awareness with our employees, for example concerning the avoidance of standby power loads, enhancing energy efficiency is a ma-jor topic. We are increasingly combining energy-efficient LED with movement-sensitive lighting and demand-based lighting controls (e.g. for timing and intensity).

The heat consumed by DG HYP in Hamburg is gener-ated with natural gas. Absolute consumption fell by ap-proximately 4 per cent on the previous year in 2017 to 1,892,495 kWh.

In the year under review, we put the refurbishment of the façade covering our Hamburg offices into more concrete terms with a model façade. As energy-related improve-ments are a central theme to this project, we will also mod-ernise our central heating system and chimneys. By install-ing a cogeneration unit and replacing the existing furnaces with state-of-the-art condensing technology we will be able to cover practically the entire base load of the build-ing. Peak electricity demand will be met with a photovoltaic system, enabling us to generate part of the energy we use ourselves. Parts of the air conditioning and air handling sys-tems will also be upgraded to state-of-the-art technologies in energy consumption and air quality control.

As in other buildings, air scrubbers will be equipped with germicidal UV light waves, and water purification systems will be added, making chemical supplements redundant and significantly reducing water consumption.

We aspire to be certified by the German Sustainable Build-ing Council (Deutsche Gesellschaft für Nachhaltiges Bauen e.V. – DGNB) at the Silver level following completion of these measures, and have already completed the pre- certification stage.



WATER CONSUMPTION

Unit 2017* 2016* 2015*

Total water consumption cubic metres (m³) 5,427 5,590 5,390 Specific water consumption m³/FTE 16 16 16


Water withdrawn from the public drinking water system. Waste water is fed into the local sewerage system; it is not discharged directly into streams and rivers. Waste water produced by DG HYP does not affect biodiversity due to its characteristics.

Water Consumption DG HYP sources water from the public utility for the Ham-burg region, HAMBURG WASSER. Total water consumption during the year under review was 5,427 cubic metres, up from 5,590 cubic metres in 2016. Specific water consump-tion per employee was flat at 16 cubic meters.

Paper ConsumptionAmongst the consumables, printer and copier paper ac-count for the largest share in terms of volume. In Decem-ber 2014, we switched all printer and copier paper to re-cycled, Blue Angel certified paper. In 2016, 98 per cent of the paper consumed at DG HYP carried that label (2015: 97 per cent). For marketing material and publications, since 2015 we have only been using paper certified by the Forest Stewardship Council (FSC). Absolute paper consumption rose 40 per cent on the previous year during 2017.


2015

21,051

2016

21,450

2017

30,103

35

25

15

5

0

100

60

20

0

2017

90

2015

61

2016

63

Kg. 000‘s Kg./FTE

Total Specifi c

PAPER CONSUMPTION


PAPER CONSUMPTION

Unit 2017* 2016* 2015*

Printer and copier paper consumption Total paper consumption** kilogrammes (kg) 19,579 12,638 11,092 Specific paper consumption kg/FTE 59 37 34 Proportion of recycled paper % 98 98 97 Proportion of totally chlorine-free (TCF) paper % 2 2 3

Printed material Total paper consumption kilogrammes (kg) 5,319 5,319 5,436 Specific paper consumption kg/FTE 16 16 16 Proportion of FSC certified paper % 100 100 100

Hygienic paper consumption Total paper consumption kilogrammes (kg) 5,205 3,493 3,783 Specific paper consumption kg/FTE 16 10 11 Proportion of elemental chlorine-free (ECF) paper % 93 91 86 Proportion of totally chlorine-free (TCF) paper % 7 9 14


** Changes in data collection have resulted in different data than published with the status report 2013 (paper consumption incl. envelopes 2013-2014).

“Printer and Copier Paper” no longer lists FSC certified and elemental chlorine-free paper due to low volumes. “Printed Material” no longer lists ECF and TCF paper as these types of papers are no longer used.

WORK-RELATED TRAVEL

Unit 2017* 2016* 2015*

Total work-related travel km 2,575,788 2, 525,199 2,561,863 Specific work-related travel km/FTE 5,366 5,316 5,581 Share of travel by train in % 34 29 27 Share of air travel % 15 19 22• < 500 km % 92 87 84• > 500 km % 8 13 16

For DG HYP’s work-related travel by train, it is worth noting that the German railway company Deutsche Bahn uses sustainable energy only, making this form of travel climate-neutral since 1 April 2013. * 100 per cent coverage per full-time employee (FTE).



MobilityTo cut down on business-related travel, we are raising em-ployee awareness and increasingly making use of video and teleconferences. We are further encouraging employees to increase their use of low-emission public transport wherever possible, providing transit cards (Jobticket) and transit al-lowances for existing season tickets as a financial incentive. In the year under review, 252 employees took advantage of these financial incentives (2016: 328).

The share of business air travel decreased by 4 percentage points to 15 per cent in 2016, while the share of climate-friendly rail travel increased by 5 per cent. We are currently evaluating whether to compensate for emissions caused by air travel with climate protection projects.

Complementary bicycle parking places are available to em-ployees, and also to commercial tenants of our cooperative companies, at our headquarters in Hamburg. Since 2014, we have more than 75 spaces for bicycles, 40 of which are in the underground garage. As demand is growing, we fur-ther expanded this offer during 2017.

We set great store by a fuel-efficient and low-emission vehicle fleet. Following a change of the leasing company in 2015, we are now able to indicate the real annual mile-age of our cars. CO

2 indications therefore are more accurate than in previous years; however, they cannot be compared with previous periods. When compared to 2016, emissions from work-related travel rose by 16 per cent during the year under review. This can essentially be explained by a higher need for business-related travel driven by the merger be-tween DG HYP and WL BANK.

Going forwards, we would like to offer our employees with a company car some training on fuel-efficient driv-ing techniques, in cooperation with our leasing partner. Implementation of this plan is currently being discussed on a Group level. Should no coherent solution be found, DG HYP will work toward an independent solution. In pur-suit of our goal of achieving a sustainable business, we acquired a fully-electric BMW i3 (see picture) in the first quarter of 2016, allowing us to save resources and preserve the environment. The car is available to all employees at

our Hamburg headquarters for company travel, and it is in frequent use. Since its acquisition, including the year un-der review, it has run 6,885 kilometres. The vehicle can be charged fully within the course of two hours using our very own charging stations located in the underground garage. A possible expansion of our electric car pool is currently being discussed.

Waste We try to avoid waste wherever we can. Where this princi-ple cannot be applied and we generate waste, it is reused or recycled. All of our waste is disposed of by an external con-tractor, with most of it – 88 per cent, as in the previous year – being recycled. 10 per cent of waste is used to replace pri-mary energy sources, and is prepared as substitute fuel for thermal energy generation, thus contributing to the saving of resources, and to reduce CO

2 emissions. Only 2 per cent are not recyclable. Transparency of waste data has increased considerably over the past years, as queries have become more differentiated and data suppliers are more involved. Our amounts of waste rose in 2017, by 31 per cent com-pared with the previous year. This is primarily attributable to electronic machinery waste and the disposal of confiden-tial papers: during the year large volumes of documents requiring approval were scanned, electronically processed and placed in electronic files. As we destroyed the paper



WASTE

Unit 2017* 2016* 2015*

Non-hazardous waste Total paper (excluding confidential paper) kilogrammes (kg) 16,570 12,130 12,279 Specific paper (excluding confidential paper) kg/FTE 49 35 37 Total confidential paper kilogrammes (kg) 77,020 29,393 12,658Specific confidential paper kg/FTE 230 86 38Total mixed packaging kilogrammes (kg) 2,788 2,797 2,790Specific mixed packaging kg/FTE 8 8 8Total building site waste from modernisation kilogrammes (kg) 56,990 44,157 47,577Specific building site waste from modernisation kg/FTE 170 129 142Total commercial waste kilogrammes (kg) 27,736 37,314 48,887Specific commercial waste kg/FTE 83 109 146

Total non-hazardous waste kilogrammes (kg) 181,104 125,759 124,191Specific non-hazardous waste kg/FTE 541 368 370

Hazardous waste Total toner waste kilogrammes (kg) 163 387 175 Specific toner waste kg/FTE 0.5 1 0.5 Total electronic machinery waste kilogrammes (kg) 4,690 1,030 1,127 Specific electronic machinery waste kg/FTE 14 3 4 Total lighting waste kilogrammes (kg) 211 212 237 Specific lighting waste kg/FTE 0.6 1 1

Total hazardous waste kilogrammes (kg) 5,064 1,629 1,539Specific hazardous waste kg/FTE 15 5 5

* 75 per cent coverage per full-time employee (FTE); part-time positions are added up to a 100 per cent basis. Including permanent and temporary employees (excluding Management Board, interns, trainees, working students and externals).

versions of these files, the volume of confidential waste disposed of in accordance with the German Data Protec-tion Act more than doubled, rising by 62 per cent. With the introduction of electronic files in 2015, we significantly reduced future paper consumption and advanced paperless communication.

Batteries, electronic scrap, wires, aluminium and copper waste are disposed of individually. The contractor reim-burses these materials in accordance with market stand-ards; credit is applied against disposal costs and distributed separately. It is in particular the recirculation of sorted scrap copper that has a positive economic effect.



Our employees are also encouraged to consistently sort their waste, and the kitchens are equipped with bins for residual waste, glass and recyclable plastics. At the end of 2014, all offices were equipped with an additional dustbin to facilitate the segregation of wet or damp waste and dry paper. The plastic bin liners used in the cleaning company’s collection areas were replaced by environmentally friendly jute sacks.

Also at the end of 2014 we joined an initiative to collect pens, promoted by international recycling and upcycling company TerraCycle: biros, felt pens, and synthetic office utensils are collected and reused.

ITAs IT is a major influence upon energy consumption and CO2 emissions, we place great importance on improving en-ergy efficiency when procuring new equipment. In general and where available, we prefer devices with an environment mark such as Blue Angel or Energy Star.

Our IT service provider consolidated its datacentre in 2016, cutting the number of physical servers by more than 50%, from 68 to 32, thus significantly enhancing efficiency.

In 2015, we replaced 150 computers with new, energy-efficient models; in 2016, 60 more followed. In 2014, we switched all printers in the company to Blue Angel certified devices that meet our requirements regarding fine particu-lates, power consumption and emission.

During 2017, we equipped 17 meeting rooms with new, energy-efficient flat screens. An additional video conference system was installed in four of the rooms, providing us with further opportunities for meetings across locations without the need for travel.

Environmental Protection Along the Supply ChainWhen selecting suppliers, we abide by DZ BANK Group’s sustainability standards for suppliers. These standards have

been an integral part of our procurement process since 2012. Suppliers exceeding a fixed threshold must commit themselves to reduce environmental impact beyond legal minimum requirements, and have organisational structures for a systematic environmental management in place. We give preference to local suppliers and service providers, meaning they are located close to one of DG HYP’s of-fices. This results in short transportation routes and helps reduce CO

2 emissions. In 2017, we sourced 98 per cent of our products and services from German suppliers (based on our total business volume), 83 per cent thereof were locals (2016: 81 per cent).

Climate-Friendly Food Choices Nothing has changed regarding our staff restaurant’s com-mitment to primarily offering seasonal and regional food, using high-quality products, whose origins and production chains are transparent. We prefer humanely raised meat and MSC-certified fish for our meals. Fruit and vegetables mainly come from our region as well, and are offered ac-cording to seasonality. Dairy products are mainly provided by a small local creamery cooperation that joined us in summer of 2016 for an info day at our staff restaurant. This was a chance for our employees to ask questions regarding the origins of our food and humane husbandry.

Since July 2012 we have been part of the “KlimaTeller” project of the charity GreenFlux e.V.: every Wednesday, in our canteen, we offer no red meat products, nor any dairy

products with fat content above 15%. This is because the production of such foods usually entails application of ferti-lizers, destruction of rainforests to create pasture land, and significant greenhouse gas emissions emanating from ani-mal digestive processes.

ÖKOLOGISCHE VERANTWORTUNG

UMWELTSCHUTZ ALS TEIL DER UNTERNEHMENSPOLITIK




SOCIAL COMMITMENTTOGETHER FOR THE COMMON GOOD


Our BeliefsWe, as a company, are part of society and want to promote development and foster the public good in the areas we are active in. And that is what we do – as an employer, a trainer, a client, and a taxpayer, but also through our commitment to society. The cooperative basic values of aiding empow-erment, solidarity, partnership and social commitment are the cornerstones of our activities. Together with our staff, we pursue an active programme of social and community duties, and we support a large number of social projects, third sector organisations in our fields, as well as the social involvement of the Volksbanken Raiffeisenbanken coopera-tive financial network.

Community ServiceDuring the year under review, we again supported the Hamburg Donor’s Parliament (Hamburger Spendenparla-ment) and the educational project “heimspiel. Für Bildung” conducted by the Alfred Toepfer Stiftung F.V.S. and Joachim Herz Stiftung foundations. DG HYP also supported PATRIZIA Immobilien AG’s “KinderHaus-Stiftung” children’s founda-tion. In addition, the bank made a donation to the Ham-burgische Kulturstiftung's "FREIRÄUME!" fund, which pro-vides financial support and funding for projects involving local cultural work for and with refugees.

As part of our ongoing support for refugees, we patron-ised the “BFD Welcome Hamburg” project created by STADTKULTUR HAMBURG e.V., the governing body for all cultural-social organisations in Hamburg, and – together with the NORDMETALL Foundation, the Alfred Toepfer F.V.S. Foundation and supported by government funding – provided financing for the first year of this project. Within this project, refugees can take up regular volunteer work in the domains of culture and education.

The bank also held its fourth Social Day in the summer of 2017, where a team of employees got involved with the “Sternenbrücke” children's hospice during working hours.

The employees’ annual Christmas collection, traditionally doubled by the bank, was donated in 2017 to "Mattis-burg", a shelter for traumatised and abused children, and to the "Zahnambulanz St. Pauli", which provides dental care for the poor and homeless.

As in the previous year, DG HYP decided not to send Christ-mas cards during the year under review. With the amount saved, the bank supported "SchlauFox", a registered volun-tary association established in 2008 and dedicated to en-hancing education in Hamburg through a variety of projects.


DG HYP employees help spruce up the gardens of the “Sternenbrücke” children’s hospice in Hamburg during our Social Day


Related Field Project SupportThe CLUB OF ROME advocates sustainable development that aligns the needs of today’s and future generations to the limited availability of resources and the limited resilience of ecosystems. Promoting the Club and its mission state-ment is an important cause to us. Since 2013, we have been providing the CLUB OF ROME’s German charter with facilities at DG HYP House at no charge, with the Club only making a cost contribution.

Also since 2013, we have been actively supporting the CLUB OF ROME schools network as an education partner, with an annual donation that helps to significantly enhance the network of schools. The CLUB OF ROME children’s ini-

tiative Plant-for-the-Planet initiated The Change Chocolate: for every five bars sold, the initiative plants one tree. DG HYP has been handing out The Change Chocolate to clients and business partners for many years now, single-handedly dis-tributing more than 5,000 chocolate bars – that makes over 1,000 trees, planted all over the world.

The employees of DG HYP have been providing aid to the DZ BANK Microfinance Fund for many years, and contin-ued to do so in 2017. The Microfinance Fund extends small loans to people in developing countries who have neither access to conventional banks nor funding of their own, mainly to women who are active in trades, crafts, agricul-ture or food production. With these loans, they are able to build a business, create jobs and independently improve their living situations, in line with the cooperative principle of aiding empowerment. The DZ BANK Microfinance Fund was founded by DZ BANK employees more than ten years ago. In 2012, it was converted into a cooperative with over 250 members, including DG HYP staff.


The Change Chocolate at the Paris Climate Change Conference in November of 2015



Together with 15 other companies, DG HYP has been a member of the Real Estate and Leadership Foundation since 2015. The joint goal of the association is to promote science, research and education relating to interdisciplinary and cross-interface leadership issues of the real estate busi-ness. For 2017, the foundation is looking to start cooperat-ing with the Hamburg School of Business Administration (HSBA) to launch a Master’s programme on “Real Estate and Leadership”. Last but not least, in 2017 DG HYP again provided two students at HafenCity Universität Hamburg (HCU) with scholarships.

Cooperative Charitable SupportOur sponsorship activities include cooperative charitable support. The recipients of DG HYP support include organi-sations promoting or researching the idea of cooperative banks and the cooperative movement, such as the Research Institute for Cooperative Studies at the University of Er-langen-Nuremberg, the Förderverein zur Stiftung GIZ e.V. and the Gesellschaft zur Förderung des Instituts für Ge-nossenschaftswesen at Philipps University Marburg/Lahn. Furthermore, DG HYP, DZ BANK and other companies with-in the Volksbanken Raiffeisenbanken cooperative financial network support the Active Citizenship Association ( Aktive Bürgerschaft), which advocates civic action, non-profit organisations, and a fair and powerful civic society.

DG HYP HOSTS CLUB OF ROME SCHOOL MEETING FOR THE FOURTH TIME

In 2017, DG HYP hosted the annual meeting of the CLUB OF ROME schools for the fourth time, with around 100 students, teachers and parents gathering in the bank’s conference facilities to enjoy a colourful programme on “Education is the Future”.

The CLUB OF ROME network currently comprises 15 schools with over 10,000 students. CLUB OF ROME schools advocate innovative learning approaches and encourage students to think in an international con-text, following the “Think globally, act locally” mantra. With its current “World Citizens Welcome” initiative, the schools support young refugees.

3 www.club-of-rome-schulen.org


SUSTAINABILITY PROGRAMME

Objective Period Measures Status

Sustainability strategy and corporate governance

Expanding the external stakeholder dialogue Ongoing Processing rating and Objective for 2017 metGRI G4-26 stakeholder enquiries

Analysing rating results and defining departmental responsibilities to unlock optimisation potentials

Adding further supplier requirements 2018 Updating and reviewing the buying Partial objective metand consulting with departments policy with regards to sustainability criteria

Communicating the reviewed policy to the departments for consideration when placing decentralised orders

Training employees on compliance issues, and ongoing/ 100% of department heads Objective for 2017 metthe prevention of money laundering and fraud every other received training in 2015. year Training conducted during 2017

Improving data protection measures to keep ongoing Internally appointed Data Protection Officer Objective for 2017 metup to date with technological advancements (direct reporting line to Management Board) instructs new employees, provides training and is responsible for conveying latest developments in data protection. Implementing highest security standards for handling client data


pending/new target being implemented annually/regularly concluded in 2017



Sustainable banking business

Adding further sustainability criteria 2021 Defining exclusion criteria in the context Partial objective metto the lending process of our reputational risk strategy

Regularly attending and actively contributing to DZ BANK Group’s “Sustainability and Lending” working group (ESTABLIShED in 2015)

Developing a sustainability check list/ a list of criteria for clients and properties

Continuously achieving good results in Ongoing Good results in the imug and oekom Objective for 2017 metsustainability ratings sustainability ratings

Monitoring client satisfaction Ongoing Based on complaints, Complaints Objective for 2017 met Management (direct reporting line to Management Board) is continuously looking for ways for us to improve

Financing sustainable construction Ongoing Mid-term financing of the “T8” office Objective for 2017 met building – a green building and landmark property, LEED certified at the Platinum level.

Financing the acquisition of the “Leopold 250“ office building in Munich, which was certified Gold by the German Sustainable Building Council (DGNB)

“CityPlaza“ in Stuttgart and “Berliner Bogen“ in hamburg are further examples of sustainable office buildings financed by DG hYP and certified at the Silver level by DGNB






Employees

Recruiting, fostering the progress and Ongoing Continuing the trainee and dual Objective for 2017 metretention of talent study programmes

Trainee programme: 2017 was the programme’s sixth year: During the year under review, ABSOLVENTA, the leading online jobs portal for young academics, presented us once again with an award for our "career-promoting trainee programme”

Dual study programme: two students enrolled

Ongoing Providing internship and working students vacancies

Adhering to the Fair Company Codex

Dedicated internships for refugees since 2016; two internships for a period of two years

Girls‘ and Boys‘ Day

Preserving and improving employee health Ongoing On a regular basis: Objective for 2017 met

health days

Influenza vaccinations

Dedicated initiatives (2017: “Cycle to work”)

Offering seminars to preserve employee health

Adding more options to our corporate sports offering (beach volleyball etc.)

Ongoing Reduction of mental stress at the workplace

Conducting threat analyses to assess occupational stress on a team level, every 2–3 years

Concluding and bundling measures from these threat analyses e.g. pilot project with AIRY flower pots for air purification





Employees

Increasing the share of women Ongoing Programme to increase the share of women Objective for 2017 metin executive and expert positions holding senior management positions

2017 Increasing the share of women at department head level to 13% by 30 June 2017

2017 Defining new targets regarding the share of women in executive positions (in accordance with the Act on Equal Participation of Women and Men in Executive Positions)

Promoting women in the workplace Ongoing Specifying our CPD offering (in-house seminars, external seminars, cooperations with women’s real estate networks)

Increasing employer attractiveness Ongoing Further strengthening DG hYP’s employer brand Partial objective met and preparing the bank Continuously evaluating for demographic change communication channels

Optimising employer communications

Establishing a single employer brand for DZ BANK Group in the labour market

2017 Further strengthening flexible work models

Developing various full-/part-time and vacation models

Implementing the models, e.g. to increase the number of RAS for working remotely as well as the number of laptops to 394 (2016: 302)

Encouraging employees to take CPD courses Ongoing 2017: 2.0 training days on average (2016: 4.0)

2017: 76% of employees took part in at least one training measure (2016: 90%)





Employees

Expanding the internal stakeholder dialogue Ongoing Further improving employee satisfaction Objective for 2017 met GRI G4-26 Regular employee surveys

Concluding and implementing measures based on survey results

2016 “Develop together, change together” initiative Partial objective met

Analysing critical issues identified in the employee survey, in workshops attended by all executives and an equal number of employees from all departments; (15 seminar and training events for employees, 7 for executives)

Aligning CPD offering with initiative

2017 Discussing the workshop’s results structurally, in all teams; transferring to working environments

Concluding and implementing measures, e.g. to improve communication in teams, and the ability to deal with conflict

New format: “The DG hYP Dialogue – Insights into our Business” to strengthen the community spirit and foster collaboration (“employees for employees”)

helping employees balance Ongoing „Embedding the principles of Objective for 2017 met their work and family commitments family-friendliness in our corporate culture, and living them on a daily basis

2016 Expanding the working time frame (employees may work any time between 06.00 and 20.00)

Providing childcare support and support for employees who nurse family members via external service providers

Organising theme weeks on combining family and work life on a regular basis

Consciously using the “audit berufundfamilie”, undertaken every three years, to review progress and develop new measures

Signing a new target agreement on optimising the compatibility of family and working life, in the course of the 2016 re-audit process




Ecological Responsibility

Expanding the recording of, and improving Ongoing Continuously improving data quality of Objective for 2017 metthe transparency of environmental data relevant consumption files by installing new and additional data acquisition tools

Expanding consumption monitoring (selectively; upon requirement and findings)

Protecting the environment and reducing 2020 Construction measures (until 2017) in accordance Objective for 2017 metcarbon footprint with DGNB sustainability requirements

Reducing CO2 emissions Comprehensive refurbishment of the building by 15% between 2012 and 2020 façade and the heating systems at hamburg headquarters

Pre-certified by DGNB (Silver)

Renewing and expanding the split-system air conditioning in rental areas to permit heat recovery, allowing waste heat to be used for garage heating

Switching to climate-neutral post and parcel shipments

Expanding sustainable mobility

Expanding electric car fleet

Reviewing and developing mobility alternatives for employees

2018 Renovating the penthouse level at our hamburg location and converting it into a full storey

Building a cogeneration unit

Setting a new GhG emissions reduction target





Ecological Responsibility

Reducing consumption of resources Ongoing Implementing energy-saving measures Objective for 2017 met at our hamburg headquarters

Switching conventional lighting to energy-efficient methods

Launching a pilot project to switch office lighting to direct and indirect LED floor lamps with presence detectors

Reducing the water consumption of our air conditioning units by switching to softened water

Reducing the amount of standing water by refitting toilets

Raising environmental and sustainability awareness Ongoing Integrating sustainability themes Objective for 2017 met into welcome events for new employees

Making the switch to recycled paper 2016 Switching envelopes to recycled paper

Switching all printed material to FSC certified paper






Social Commitment

Supporting sustainability-promoting Ongoing Supporting CLUB OF ROME Objective for 2017 metinstitutions Supporting CLUB OF ROME schools

Using the Plant-for-the-Planet initiative’s The Change Chocolate as a giveaway at events

Supporting DZ BANK Microfinance Fund

Providing two students at hafenCity Universität hamburg (hCU) with scholarships

Expanding corporate citizenship Ongoing Providing aid to refugees: Objective for 2017 met Patronising the “BFD Welcome hamburg” project of STADTKULTUR hAMBURG e.V.

Supporting the hamburg Donor’s Parliament

Supporting the “heimspiel. Für Bildung“ project conducted by the Alfred Toepfer Stiftung F.V.S and Joachim herz Stiftung foundations

Supporting PATRIZIA Immobilien AG’s “PATRIZIA Kinderhaus-Stiftung” children's foundation

Commissioning of charity organisations for work, e.g. “Rauhes haus”

Doubling employee’s Christmas donations

Not sending out Christmas cards – donation to charity instead

Supporting real estate associations such as IMMOEBS e.V.

Supporting cooperative charitable initiatives

Research on cooperative science

Supporting the Active Citizenship Association (“Aktive Bürgerschaft”)





Social Commitment

Expanding corporate volunteering Ongoing Activities and events Objective for 2017 met

Regular Social Day – DG hYP employees helping with the gardening at the “Sternenbrücke” children’s hospice

Christmas party for kids




GRI CONTENT INDEx

The Global Reporting Initiative (GRI) has created a standard for sustainability reporting in order to establish an international basis for comparing sustainability performance between different companies. The report follows the G4 guidelines in its “core” option. The given GRI Content Index comprises the core indicators and provides references to corresponding pages in the report where the relevant information can be found.

GRI Indicator Page(s)

Strategy and Analysis G4-1 Statement from the most senior decision-maker 4, 5G4-2 Key impacts, risks, and opportunities concerning sustainability 4, 5, 9, 10, 15, 17, 20, 21

Organisational Profile G4-3 Name of the organisation front cover, 4, 7, 8, 72, back coverG4-4 Primary brands, products, and services 7, 8, 10, 11, 27, AR (p. 2)G4-5 Location of the organisation’s headquarters 72G4-6 Countries with significant operations 7, AR (p. 17)G4-7 Nature of ownership and legal form 8, 13, 21, AR (p. 10)G4-8 Markets served 7, 12, 16, 18, 19G4-9 Scale of the organisation 7, 12, 13, 41, 43G4-10 Employees by employment type, gender and region 39, 40, 43G4-11 Percentage of employees covered by collective bargaining agreements 43G4-12 Description of the supply chain 16, 24, 53, http://dghyp.de/suppliersG4-13 Significant changes during the reporting period 5, 12G4-14 Implementation of the precautionary principle 10, 15, 21, 45, 55, AR (p. 47 et seqq.) 7G4-15 External initiatives that the organisation endorses 2, 10, 15, 22, 25, 34, 37, 45, 46, 56 1-10G4-16 Significant memberships in industry and business associations 19, 20, 21, 56

Identified Material Aspects and Boundaries G4-17 Entities included in the consolidated financial statements 8, 10, 11, 13, 27, AR (p. 31, 74 et seqq.)G4-18 Process for defining the report content 2, 15, 19, 20G4-19 Material aspects identified 15, 16, 17, 21G4-20 Aspect boundaries within the organization 21G4-21 Aspect boundaries outside the organization 21G4-22 Restatement of information provided in previous reports 2, 16G4-23 Significant changes in the scope and aspect boundaries 2, 20, 21

Stakeholder Engagement G4-24 Stakeholder groups engaged 18, 19, 20, 21G4-25 Identification and selection of stakeholders 18, 19, 20, 21G4-26 Approach to stakeholder engagement and frequency 15, 18, 19, 20, 21, 58, 60G4-27 Key topics and concerns raised through stakeholder engagement and response 20

Report Profile G4-28 Reporting period 2G4-29 Date of most recent previous report 2G4-30 Reporting cycle 2G4-31 Contact point for questions regarding the report 72G4-32 “In accordance” option with GRI and Content Index chosen 2, 67 et seqq.G4-33 External verification of the report 2

UN GlobalCompact



Governance G4-34 Governance structure, incl. committees of the highest governance body 15, 16, 21, 23, AR (p. 4 et seqq.)G4-35 Process for delegating authority for economic, environmental and social topics 15, 16, 17G4-36 Executive-level position with responsibility for economic, environmental and social topics 15, 16, 17, 22G4-37 Processes for consultation between stakeholders and the highest governance body 15, 16G4-38 Composition of the highest governance body and its committees 15, 16, 21, AR (p. 109)G4-39 Independence of the Chair of the highest governance body 15, 16, 21, 22, AR (p. 6)G4-40 Nomination and selection processes for the highest governance body and its committees 21G4-41 Process for avoiding conflicts of interest 21, 22, 23G4-42 highest governance body’s role concerning strategy and goals 15, 21, 22G4-43 Measures taken concerning the highest governance body’s knowledge in sustainability issues 34G4-44 Evaluation of the highest governance body’s performance concerning sustainability 40, 41, http://dghyp.de/remunerationG4-45 highest governance body’s role concerning sustainability impacts, risks, and opportunities 15, 16, 17, 20, 21, 22, 23G4-46 highest governance body’s role concerning the effectiveness of the risk management 22, 23, AR (p. 47 et seqq.)G4-47 Frequency of the highest governance body’s review of sustainability impacts, risks, and opportunities 22, 23, AR (p. 47 et seqq.)G4-48 highest committee that formally reviews and approves the sustainability report 15, 16G4-49 Process for communicating critical concerns to the highest governance body 23, 24, 29G4-50 Critical concerns that were communicated to the highest governance body 23, 24G4-51 Remuneration policies for the highest governance body and senior executives 21, 41, 42, AR (p. 102), http://dghyp.de/remunerationG4-52 Process for determining remuneration 23, http://dghyp.de/remunerationG4-53 Stakeholder’s views regarding remuneration 23G4-54 Ratio of the highest annual total compensation to the median annual total compensation http://dghyp.de/remunerationG4-55 Ratio of percentage increase in the highest annual total compensation http://dghyp.de/remuneration

Ethics and Integrity G4-56 Values, principles, standards and norms of behaviour 9, 10, 15, 16, 21, 23, 24, 25, 34, 37, http://dghyp.de/codeofconduct 1-10G4-57 Mechanisms for seeking advice on ethical and lawful behaviour 10, 24, 25G4-58 Mechanisms for reporting concerns about unethical or unlawful behaviour 24

AspectsCategory: Economic Management Approach: Economic Performance 12 et seqq., AR (p. 30) G4-EC1 Direct economic value created and distributed 12 et seqq., 40, 43, AR (p. 2, 30 et seqq., 73 et seqq.)G4-EC2 Financial implications and other risks and opportunities due to climate change 15, 31 7, 8G4-EC3 Coverage of benefit plan obligations 40, 43, AR (p. 74)G4-EC4 Financial assistance received from governance 20 (not applicable)

Management Approach: Market Presence 40 G4-EC5 Ratios of standard entry level wage compared to local minimum wage 23, 40G4-EC6 Proportion of senior management hired from the local community AR (p. 71)

Management Approach: Indirect Economic Impacts 29, 30G4-EC7 Infrastructure investments and services provided 27, 31G4-EC8 Indirect economic impacts 56, 57

Management Approach: Procurement Practices 16, 53G4-EC9 Proportion of spending on local communities 16, 53

Category: Environmental Management Approach: Materials 45 8 G4-EN1 Materials used by weight and volume 47, 48, 49, 50 8G4-EN2 Percentage of materials used that are recycled input materials 48, 49, 50 8

Management Approach: Energy 46, 48 8G4-EN3 Energy consumption within the organisation 48 8G4-EN4 Energy consumption outside of the organisation 48G4-EN5 Energy intensity 48G4-EN6 Reduction of energy consumption 48 G4-EN7 Reductions in energy requirements of products and services 48

UN GlobalCompact





Management Approach: Water 49 G4-EN8 Total water withdrawal by source 49G4-EN9 Water resources significantly affected Not reportedG4-EN10 Water recycled and reused Not reported

Management Approach: Biodiversity Not applicable G4-EN11 Not reported Not applicableG4-EN12 Impacts on protected areas or areas of high biodiversity value Not applicableG4-EN13 habitats protected and restored Not reportedG4-EN14 Affected endangered animal and plant species Not reported

Management Approach: Emissions 5, 45, 46, 47 8G4-EN15 Direct greenhouse gas (GhG) emissions (Scope 1) 46, 47, 53 8G4-EN16 Energy indirect greenhouse gas (GhG) emissions (Scope 2) 46, 47, 48G4-EN17 Other indirect greenhouse gas (GhG) emissions (Scope 3) 46, 47G4-EN18 Greenhouse gas (GhG) emissions intensity 46, 47G4-EN19 Reduction of greenhouse gas (GhG) emissions 5, 45, 46, 47, 53, 63 G4-EN20 Emissions of ozone-depleting substances Not applicableG4-EN21 NO

X, SOX and other significant air emissions Not applicable

Management Approach: Effluents and Waste 45, 51, 52, 53G4-EN22 Total water discharge by quality and destination 49, 52G4-EN23 Total weight of waste by type and disposal method 52 8G4-EN24 Total number and volume of significant spills Not reportedG4-EN25 handling of hazardous waste 52 G4-EN26 Water bodies significantly affected by discharges of water and runoff Not applicable

Management Approach: Products and Services 5, 45G4-EN27 Mitigation of environmental impacts of products and services 5, 31, 45, 48, 51, 59 7, 9G4-EN28 Reclaimed products and services Not applicable

Management Approach: Compliance 45G4-EN29 Fines and sanctions for non-compliance with environmental regulations None

Management Approach: Transport 45, 50, 51G4-EN30 Significant environmental impacts of transporting products 50, 51

Management Approach: Overall Not reportedG4-EN31 Environmental protection expenditures and investments Not reported

Management Approach: Supplier Environmental Assessment 16, 55, http://dghyp.de/suppliersG4-EN32 Percentage of new suppliers that were screened using environmental criteria 16, 24, 53, http://dghyp.de/suppliers G4-EN33 Significant environmental impacts in the supply chain 53

Management Approach: Environmental Grievance Mechanisms NoneG4-EN34 Grievances about environmental impacts None

Category: Social Labour Practices and Decent WorkManagement Approach: Employment 33 G4-LA1 New employee hires and employee turnover 33, 40, 43G4-LA2 Benefits provided to full-time employees 40G4-LA3 Return to work and retention rates following parental leave 40

Management Approach: Labour/Management Relations 18, 33, 34G4-LA4 Minimum notice period(s) regarding operational changes Not reported

Management Approach: Occupational Health and Safety 42, 43G4-LA5 Percentage of total workforce represented in health and safety committees 43G4-LA6 Injuries, occupational diseases, lost days, and work-related fatalities 44, 45 1G4-LA7 Workers with high incidence or risk of diseases 44, 45 1G4-LA8 health and safety topics covered in formal agreements with trade unions Not reported 1

UN GlobalCompact


UN GlobalCompact



Management Approach: Training and Education 35, 36 1G4-LA9 Average hours of training 35, 36G4-LA10 Programs that support the continued employability of employees 35, 36G4-LA11 Percentage of employees receiving regular performance and career development reviews 35

Management Approach: Diversity and Equal Opportunity 37 G4-LA12 Composition of governance bodies and breakdown of employees by aspects of diversity 21, 37, 43, 60 1

Management Approach: Equal Remuneration for Women and Men 33, 40, http://dghyp.de/remuneration 1, 6G4-LA13 Ratio of basic salary and remuneration of women to men 40 1, 6

Management Approach: Supplier Assessment for Labour Practices 16, http://dghyp.de/suppliersG4-LA14 Percentage of new suppliers that were screened using labour practices criteria 16, 24, http://dghyp.de/suppliers G4-LA15 Percentage of new suppliers that were screened using labour practices criteria 24

Management Approach: Labour Practices Grievance Mechanisms 33, 34, 35G4-LA16 Formal grievances concerning impacts on labour practices None

Human Rights Management Approach: Investment 24 G4-hR1 Significant investment agreements and contracts that include human rights clauses or screening 10, 24, AR (p. 16) G4-hR2 Employee training on human rights issues 24, 37

Management Approach: Non-Discrimination 10, 24G4-hR3 Incidents of discrimination and corrective actions taken 24 1, 2

Management Approach: Freedom of Association and Collective Bargaining 10 G4-hR4 Operations and suppliers identified in which the right to exercise freedom of association may be violated or at risk, and measures taken 10

Management Approach: Child Labour 10, 24 1, 2, 5G4-hR5 Operations and suppliers having significant risk for incidents of child labour, and measures taken 10, 24, http://dghyp/suppliers 1, 2, 5

Management Approach: Forced and Compulsory Labour 10, 24 1, 2, 6G4-hR6 Operations and suppliers having significant risk for incidents of forced or compulsory labour, and measures taken 10, 24, http://dghyp/suppliers 1, 2 , 6

Management Approach: Security Practices 10 G4-hR7 Percentage of security personnel trained in the field of human rights 10

Management Approach: Indigenous Rights Not applicableG4-hR8 Violations involving rights of indigenous peoples and actions taken Not applicable

Management Approach: Assessment 10, 24 G4-hR9 Operations that have been subject to human rights review 24

Management Approach: Supplier Human Rights Assessment 24, http://dghyp/suppliers 1-6G4-hR10 Percentage of new suppliers that were screened using human rights overview 16, 24, http://dghyp/suppliers 1-6G4-hR11 Significant human rights impacts on the supply chain 16, 24, 53

Management Approach: Human Rights Grievance Mechanisms 23 G4-hR12 Grievances about human rights impacts 23




Society Management Approach: Local Communities 5, 55 G4-SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs 5, 55, 56, 57G4-SO2 Operations with actual and potential negative impacts on local communities 13, 56

Management Approach: Anti-Corruption 10, 23, 24 10G4-SO3 Percentage of operations assessed for risks related to corruption and risks identified 10, 23, 24 10G4-SO4 Communication and training on anti-corruption 10, 22, http://dghyp/suppliers 10G4-SO5 Confirmed incidents of corruption and actions taken 23, 24, none 10

Management Approach: Public Policy 20G4-SO6 Total value of political contributions 20

Management Approach: Anti-Competitive Behavior 20G4-SO7 Legal actions for anti-competitive behaviour, anti-trust, and monopoly practices 23, 24

Management Approach: Compliance 23, 24G4-SO8 Fines and sanctions for non-compliance with laws and regulations 23, 24, none

Management Approach: Supplier Assessment for Impacts on Society 15, 16, 17, http://dghyp/suppliersG4-SO9 Percentage of new suppliers that were screened using criteria for impacts on society 15, 16, 17, 24, http://dghyp.de/suppliersG4-SO10 Negative impacts on society in the supply chain, and actions taken 15, 16, 24, 25, none

Negative impacts on society in the supply chain and actions taken 23, 24G4-SO11 Number of grievances about impacts on society 23, 24

Product Responsibility Management Approach: Customer Health and Safety 29 G4-PR1 Percentage of significant product and service categories for which health and safety impacts are assessed Not reportedG4-PR2 Incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services Not reported

Management Approach: Product and Service Labelling 29G4-PR3 Principles/procedures for product and service information and labelling 29G4-PR4 Incidents of non-compliance with regulations and voluntary codes concerning product and service information and labelling 29G4-PR5 Results of surveys measuring customer satisfaction 18, 29

Management Approach: Marketing Communications 29G4-PR6 Sale of banned or disputed products 29G4-PR7 Incidents of non-compliance with regulations and voluntary codes concerning marketing communications 29

Management Approach: Customer Privacy 24, 25, 29G4-PR8 Substantiated complaints regarding breaches of customer privacy 24, 25, none

Management Approach: Compliance 29G4-PR9 Significant fines concerning the provision and use of products and services None

AR = 2017 Annual Report

UN GlobalCompact

DG HYP Regional Office Hanover Berliner Allee 5 30175 Hanover, Germany Phone +49 511 866438-08 Fax +49 40 3334-782-3775

DG HYP Regional Office Mannheim Augustaanlage 61 68165 Mannheim, Germany Phone +49 621 728727-20 Fax +49 621 728727-21

DG HYP Regional Office Kassel Rudolf-Schwander-Strasse 1 34117 Kassel, GermanyPhone +49 561 602935-23 Fax +49 561 602935-24

DG HYP Regional Office Münster Sentmaringer Weg 1 48151 Münster, Germany Phone +49 251 49050 Fax +49 211 220499-40

DG HYP Regional Office LeipzigSchillerstrasse 304109 Leipzig, Germany Phone +49 341 962822-92 Fax +49 341 962822-93

DG HYP Regional Office Nuremberg Am Tullnaupark 4 90402 Nuremberg, Germany Phone +49 911 94009816 Fax +49 40 3334-782-4711


DG HYP Contacts and Office Addresses

72

CONTACTS AND OFFICE ADDRESSES

Institutional Clients

HamburgRosenstrasse 2 20095 Hamburg, Germany Phone +49 40 3334-2159 Fax +49 40 3334-1260

Management Board Chairman ofDr Georg Reutter (Chairman) the Supervisory Board.Manfred Salber Uwe Berghaus

Deutsche Genossenschafts-Hypothekenbank AG Rosenstrasse 220095 Hamburg, Germany

PO Box 10 14 46 20009 Hamburg, Germany Phone +49 40 3334-0 Fax +49 40 3334-1111 www.dghyp.de

DG HYP Real Estate Centre Berlin Pariser Platz 3 10117 Berlin, Germany Phone +49 30 31993-5101 Fax +49 30 31993-5036

DG HYP Real Estate Centre Hamburg Rosenstrasse 2 20095 Hamburg, Germany Phone +49 40 3334-3778 Fax +49 40 3334-1102

DG HYP Real Estate Centre Dusseldorf Steinstrasse 13 40212 Dusseldorf, Germany Phone +49 211 220499-10 Fax +49 211 220499-40

DG HYP Real Estate Centre Munich Türkenstrasse 16 80333 Munich, Germany Phone +49 89 512676-10 Fax +49 89 512676-30

DG HYP Real Estate Centre Frankfurt CITY-HAUS I, Platz der Republik 6 60325 Frankfurt/Main, Germany Phone +49 69 750676-21 Fax +49 69 750676-99

DG HYP Real Estate Centre Stuttgart Heilbronner Strasse 41 70191 Stuttgart, Germany Phone +49 711 120938-0 Fax +49 711 120938-30

Real Estate Centres

Regional Offices

This report was prepared by: DG HYP Sales Coordination and Investor Relations E-mail: ir(at)dghyp.de

DG HYPDeutsche Genossenschafts-Hypothekenbank AG

Rosenstrasse 2 | 20095 HamburgPhone +49 40 3334-0 | Fax: +49 40 3334-1111

www.dghyp.de

SUSTAINABILITY REPORT 2017 · About This Report In this report, we relate the central activities...

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