Green Bonds

An Investment in Green Pfandbriefe

According to the European Commission, the real estate sector is responsible for around 35 per cent of energy-related CO₂ emissions in the EU. Improving energy efficiency in the real estate sector is therefore a key starting point for reducing CO₂ emissions. As a leading real estate bank and Pfandbrief issuer in Germany, the DZ HYP aims to support the financing of energy-efficient properties that meet the eligibility criteria of the Green Bond Framework.

[Translate to English:] Glass front of office building with bright green trees, above blue sky with white cloud

Green Pfandbrief

Through its Green Bond Framework, DZ HYP offers its investors the opportunity to invest in Green Pfandbriefe via both benchmark issuances and private placements. In addition to meeting the requirements of the Pfandbrief Act, the Pfandbriefe issued by DZ HYP also comply with the vdp’s minimum standards for Green Pfandbriefe. The collateral assets include properties with lower CO₂ emissions than comparable benchmark properties in Germany.

Green Bond Framework

The Green Bond Framework defines the key charcterictics of Green Pfandbriefe. It is subject to regular review and will be revised as necessary. The current version was further developed in 2024 and, in particular, adapted to the new minimum standards of the Association of German Pfandbrief Banks (vdp). In addition, the Green Bond Framework is aligned with the Green Bond Principles of the International Capital Market Association (ICMA), as confirmed by an independent third-party provider through a Second Party Opinion. The eligibility criteria defined in the Green Bond Framework constitute the basis for selecting eligible assets.

Reporting

DZ HYP places great emphasis on providing regular and transparent reporting on its Green Pfandbriefe. For this reason, it publishes a quarterly allocation report that informs the use of the issue proceeds and the underlying eligibility criteria. In addition, the annually published Green Bond Report includes both allocation reporting and impact reporting on the calculated CO₂ savings from assets in the mortgage cover pool. The calculation of CO₂ savings is performed by the consulting firm Drees & Sommer based on the methodology described in the Green Bond Report. An independent third‑party provider carries out external verification to confirm compliance with the ICMA Green Bond Principles and the criteria defined in the Green Bond Framework.