Straight away with the first ESG rating, the international rating agency Sustainalytics completed the audit of Gewobag’s sustainability performance with an excellent assessment. “With this good ESG rating we can operate flexibly on the capital market. This means that we will be able to implement our brief, namely that of creating affordable housing for Berlin, even better”, Markus Terboven, Member of the Gewobag Board, was pleased to announce.
Gewobag among the top 10 percent in the rating
The ESG rating assesses the risk of inappropriate handling of important sustainability issues and the associated environmental (E), social (S) and governance (G) risks. On a scale of 0 to 100 points, Gewobag achieved 11.8 points in this rating. For the evaluation: The fewer the number of points, the lower the risk.
“We are very pleased with this result. We are thus one of the best ten percent of the property companies assessed by Sustainalytics – a position achieved with our very first rating. In the coming years, we will press ahead with our sustainability activities and are optimistic that we can also improve this rating still further”, said Markus Terboven. “As part of our corporate strategy, we have strengthened our commitment to sustainability significantly and have declared it a focal issue. The report makes clear that this is also recognised externally”, explained Markus Terboven further.
Better positioned due to sustainability and ESG rating
Sustainability is becoming increasingly important in the assessment of companies. The role of the ESG rating is therefore becoming more and more significant, particularly in the banking sector. Sustainability aspects are considered, for example, when appraising the credit-worthiness of the borrower. A known and established ESG rating helps with the categorisation by third parties and also has a positive effect on a company’s reputation. This reputation advantage on the market enables companies to access a broader investor base for capital market finance such as bond issues and bonded loans. Several banks already securitise their receivables with “sustainability bonds” or “social bonds”.
“With this positive ESG rating, new financing options emerge for new build or modernisation. The loans are ring-fenced, i.e. must be invested accordingly in sustainable or social measures. That is exactly what we want to do. In 2021, we were able to finance 500 million euros through a social bond. These financing options are an important element on the way to achieving our climate goals”, explained Kathrin Bratke, Gewobag’s Chief Sustainability Officer and Head of Strategic Corporate Development.
Gewobag is a founding member of the Housing 2050 initiative and feels obliged to develop housing in a climate-neutral way by 2045
With offices in twelve countries on four continents, Sustainalytics is one of the largest international sustainability rating agencies. Around 15,000 companies worldwide already have an ESG rating from Sustainalytics. One focus of the agency is on the property industry. Internationally, more than 1,000 companies in the industry have an ESG rating from Sustainalytics.