Federal Housing Finance Agency Print
  • Climate Change and ESG
  • ​​​​​​​​CLIMATE CHANGE AND Environmental, social, and governance (ESG)


     

Home / Policy, Programs & Research / Programs / Climate Change and ESG

The Federal Housing Finance Agency (FHFA) recognizes that climate change poses a serious threat to the U.S. housing finance system. FHFA's regulated entities – Fannie Mae, Freddie Mac, and the Federal Home Loan Bank System – have an important leadership role to play in addressing this issue. In its supervisory capacity over the regulated entities, as well as its role as conservator of Fannie Mae and Freddie Mac, FHFA has been actively working to ensure that the regulated entities are accounting for the risks associated with climate change and natural disasters while also overseeing the regulated entities' work related to Environmental, Social, and Governance (ESG) broadly.

To this end, FHFA established an internal Climate Change and ESG Steering Committee, consisting of the Agency's leadership, and eight working groups staffed with experts from across the agency. The eight working groups will work with FHFA's regulated entities, me​mbers of the FSOC Climate-Related Financial Risk Committee (CFRC), members of  the ​Network of Central Banks and Supervisors for Greening the Financial System (NGFS), and other stakeholders on the following areas:

  1. Data and research;​​​​
  2. Assessing climate exposure;
  3. ESG reporting and disclosure;
  4. Governance;
  5. Green bonds;
  6. Consumer protection;
  7. Internal agency operations; and 
  8. Legal.

​Disaster Response and Assistance

In May 2019, FHFA formalized its agency-wide Disaster Response Team (DRT), which had been meeting informally for years prior. The DRT has experience coordinating with the regulated entities, other government agencies, external parties, and internal FHFA stakeholders during natural disasters. It is guided by a natural disaster response and recovery framework developed by FHFA in coordination with its regulated entities to support borrowers and renters affected by natural disasters. This framework incorporates forbearance and workout options for borrowers in areas impacted by natural disasters, tailoring options to their specific circumstances.

For more information on disaster response and assistance: See https://www.fhfa.gov/Homeownersbuyer/MortgageAssistance/Pages/Disaster-Assistance.aspx


Request for Input

In January of 2021, FHFA sought information on the current and future climate and natural disaster risk to the housing finance system and to the regulated entities.  FHFA also sought input on opportunities to strengthen its supervision and regulation of the regulated entities' management of and reporting on the physical ​and transition risks that may arise from natural disasters and changes in climate patterns.

RFI: Climate and Natural Disaster Risk Management at the Regulated Entities

Link to Comments – select “Climate and Natural Disaster Risk" in dropdown menu

Link to RFI Synopsis

Listening Session

On March 4, 2021, FHFA held a public listening session on Climate and Natural Disaster Risk Management at the Regulated Entities.

March 4, 2021 Listening Session

March 4, 2021 Agenda

March 4, 2021 Listening Session Transcript

March 4, 2021 Listening Session Presentations


Statements and Remarks

FHFA Acting Director Sandra L. Thompson's Statement on Climate Change

Prepared Remarks of Sandra L. Thompson, Acting Director of FHFA, at Financial Stability Oversight Council Principals Meeting

Federal Housing Finance Agency Announces Membership in the Network of Central Banks and Supervisors for Greening the Financial System (NGFS)​


Regulated Entities

Fannie Mae and Freddie Mac have launched ESG websites that describe their ESG strategies and include links to their Sustainability Accounting Standards Board (SASB) Reports.

​CONTACT:   
Email: ClimateChange-ESG@fhfa.gov 


​Meet the Team

​Daniel E. Coates
Executive Sponsor of Climate Change and ESG Working Group  
Chair, Climate Change and ESG​ Steering Committee

Kaitlin Hildner
Senior Advisor
Climate Change and ESG Working Group

Jessica Shui
Project Coordinator 
Climate Change and ESG Working Group​

​Page last updated: May 11​, 2022​​

© 2022 Federal Housing Finance Agency