The principle of "Cradle-to-Cradle" (C2C) stands for a sustainable economic principle in which all raw materials are recycled again at the end of their life and waste is not produced in the first place. The aim is to preserve the material quality and avoid downcycling with a loss of quality. A distinction is made between the circulation of biological and technical cycles. Biodegradable products are returned to the nutrient cycle; unmixed, separable products are returned to the technical cycle. The implementation of C2C in the property sector focuses on the recovery of materials, the use of renewable energies and the promotion of diversity. The C2C building serves as a raw material depot and has a positive ecological footprint.

The German Sustainability Code (DNK) is aimed at companies and organisations. The transparency standard describes sustainability performance in 20 criteria and in a selection of quantifiable performance indicators in a comprehensible and comparable form, the so-called DNK Declaration. They can be used to assess how companies anchor sustainability in their core business. Opportunities and risks are made visible and can be managed proactively.

The abbreviation "ESG" stands for Environment, Social and Governance and has become the most popular definition of sustainability in the field of sustainable investments. The three levels or dimensions of sustainability are intended to paint a comprehensive picture - because "sustainable" does not only refer to our environment, the reduction of emissions and a responsible use of natural resources. Equally important are good relations with employees, business partners and customers, and also a commitment to civil society and equal opportunities.

The international rating system GRESB (Global Real Estate Sustainability Benchmark) evaluates the sustainability performance of property investments and property companies. The GRESB score is calculated with the use of differently weighted indicators from the environmental, social and governance (ESG) areas, which enables a direct comparison with the market environment. In this way, the standardised benchmark contributes to transparency and guidance within the sector, so that sustainable property investments can be compared across portfolios and over time.

The Global Reporting Initiative (GRI) is an ongoing international dialogue on corporate reporting in which companies and their stakeholders participate. The GRI develops guidelines with the aim of increasing the quality of reporting, standardising it and thus making it more comparable. A selection of GRI performance indicators complements the reporting of the DNK.

The 17 development goals of the 2030 Agenda for Sustainable Development link the principle of sustainability with economic, ecological and social development. The goal system of the 2030 Agenda is universal and applies equally to developing, emerging and industrialised countries. The new Agenda is intended to provide the basis for a transformed global partnership. The Development Goals were adopted by the United Nations (UN) General Assembly and have been in force since 1 January 2016 for a period of 15 years (until 2030).

Stranded assets are assets whose market value declines rapidly to the point where they are largely worthless. The cause of stranding can be functional, physical, technical, environmental or economic. The risk of stranding is currently being discussed against the backdrop of climate change. It describes the risk of default of the property due to non-compliance with the Paris climate protection agreement. Key parameters in a climate protection-related stranding risk analysis are CO2 emissions and energy consumption. To avoid stranding, buildings or the technical components may need to be optimized in terms of energy over the course of their life cycles.

We also determine the potential time of "stranding" for purchases as part of ESG DD. For our portfolios, the determination is part of the ongoing portfolio screening.

The taxonomy is a classification system for ecologically sustainable activities of companies. It evaluates individual business lines or activities, not the company as a whole. The taxonomy covers six objectives:

1. Climate protection

2. Adaptation to climate change

3. Sustainable use and protection of water and marine resources

4. Transition to a circular economy, waste prevention and recycling

5. Pollution prevention and control

6. Protection of healthy ecosystems

A line of business is considered environmentally sustainable only if it contributes to one of the six goals and does not harm any of the others (Do No Significant Harm rule). The taxonomy applies in principle to all funds. However, its application is voluntary unless the investments are explicitly designated as sustainable. In the future, sustainable funds (according to Art. 8 and 9 of the Disclosure Regulation) must report the share of investments according to the criteria of the taxonomy. The technical criteria for the first two targets will come into force from 2022, those for the four other targets from 2023.

Funds that are not considered sustainable will only have to inform that they do not invest in accordance with the taxonomy.

The UN Global Compact is a United Nations initiative for companies that commit to aligning their business operations with ten principles of sustainability. These include human rights, labour standards, environmental protection and anti-corruption. Participating companies report regularly on the implementation of the ten principles in the "Communication on Progress (COP)", e.g. in the company's annual report.