Sustainability as standard
We are convinced that solid corporate action with a sense of responsibility is a material requirement for securing the long-term sustainability of a company or enterprise.
We are convinced that solid corporate action with a sense of responsibility is a material requirement for securing the long-term sustainability of a company or enterprise.
We want to make a contribution to global, sustainable growth through the tailored structuring of financings and by developing innovative payments and software solutions, as well as providing digital services for the housing and property industries.
Aareal Bank Group finances commercial property, focusing on complex, large-volume financings for completed buildings with an average term of five to eight years. The sustainable intrinsic value of the properties and the very careful selection of business partners are therefore in the fundamental interests of the Company.
Active portfolio management and the variety of the properties we finance, namely office buildings, hotels, shopping centres as well as logistics and residential properties, contribute to a balanced portfolio from a risk perspective. The portfolio therefore contains no potentially controversial industrial plants or other facilities that may be considered as problematic by the public.
To ensure the properties meet our high quality requirements, we base our valuation of them on the market values as well as on the concept of determining mortgage lending values. This routinely takes into account sustainability aspects such as the technical, functional, sociocultural and ecological quality. Deficiencies in quality, such as inadequate energy efficiency, have a negative impact on the valuation.
The sustainability of the property finance portfolio can also be substantiated in quantitative terms. The indicator for credit default risk is thus consistently low: while this indicator was still at 65 basis points in 2009 at the height of the financial crisis, it was only 29 basis points as at 31 December 2017, based on the entire property finance portfolio.
Twelve main action areas for securing the long-term corporate success form the basis of our sustainability management. Essential elements here are the profitability of the business model, and the risk and client relationship management. Against the background of the change management processes when implementing our Aareal 2020 programme for the future, the appeal as an employer, integrity of entrepreneurial action and know-how management are areas of activity that are particularly relevant.
Above-average positive valuations in established sustainability ratings confirm that we address topics that are relevant for our industry and in relation to our business model. You will find information on the initiatives that we promote in the action areas in our sustainability report.
