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 on the following areas:
- Data and research;
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- Assessing climate exposure;
- ESG reporting and disclosure;
- Governance;
- Green bonds;
- Consumer protection;
- Internal agency operations; and
- Legal.
The working groups will work with FHFA's regulated entities, members of the FSOC Climate-Related Financial Risk Committee (CFRC), members of the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), members of the Financial Literacy and Education Commission (FLEC), members of the Mitigation Framework Leadership Group (MitFLG), and other stakeholders.
Additional Steps Taken
In April 2023, FHFA joined theMitigation Framework Leadership Group (MitFLG). MitFLG, led by the Federal Emergency Management Agency (FEMA), is focused on strengthening the nation’s disaster resilience by expanding mitigation awareness, coordination, and action.
In July 2022, FHFA joined theFinancial Literacy Education Commission (FLEC). FLEC is a national interagency group focused on coordinating financial education efforts throughout the federal government.
On May 11, 2022, FHFA joined theNetwork of Central Banks and Supervisors for Greening the Financial System (NGFS). NGFS is an international group comprised of central banks and financial supervisors whose purpose is to help strengthen the global response required to meet the goals of the Paris agreement.
Econ Summits
FHFA will host anEconomic Summiton climate risk on November 12, 2024. (Fall 2024 Econ Summit Call for Papers)
On October 3, 2023, FHFA hosted anEconomic Summiton climate risk. The Summit included three sessions: climate change and insurance; land use regulations, disclosures, and risk modeling; and disaster risk and house prices.
On November 1, 2022, FHFA hosted anEconomic Summiton climate risk, with sessions on climate stress testing and academic research on impacts to vulnerable communities.
Other FHFA Public Engagements
On March 13, 2024, the FHFA Multifamily team hosted a Multifamily Insurance Symposium. The symposium included sessions on insurance market risks and challenges, insurance and affordability, emerging solutions, and the Enterprises’ and HUD’s perspectives on insurance market challenges.
On November 14 and 15, 2023, the FHFA Single-Family team hosted a Single-Family Insurance Symposium. Day One included sessions on insurance commissioner perspectives, implications of growth in residual insurance markets, insurance industry perspectives, and the homeownership experience. Day Two included sessions on strengthening community resilience and insurability, empowering communities with information, wildfire solutions, building climate resilience across sectors, building codes and standards, and consumer perspectives.
Agency Documents
See FHFA’s climate-related performance measures and targets for 2024 within FHFA’sFY 2024 Annual Performance Plan.
See FHFA’s FY23 climate-related activities and plans for FY24 within FHFA’s2023 Performance and Accountability Report.
See FHFA’s climate-related activities in 2022 within FHFA’s2022 Annual Report to Congress.
See FHFA’s climate-related performance measures and targets for 2023 within FHFA’sFY 2023 Annual Performance Plan.
See FHFA’s FY22 climate-related activities and plans for FY23 within FHFA’s2022 Performance and Accountability Report.
See FHFA’s climate-related activities in 2021 within FHFA’s2021 Annual Report to Congress.
Climate Blog Series
Read about the ongoing work and accomplishments of FHFA’s Climate Change and ESG Working Groups.
The Need to Address Climate Risk
August 28, 2023
Author:
Daniel E. Coates
Deputy Director, FHFA Division of Research and Statistics
Chair, Climate Change and ESG Steering Committee
Executive Sponsor, Climate Change and ESG Working Groups
Understanding the Climate’s Impact on Vulnerable Populations
November 27, 2023
Authors:
Leda DeRosa Bloomfield
Branch Chief for Policy and Equity, Office of Fair Lending Oversight
Division of Housing Mission and Goals
Sarah Friedman
Examination Specialist, Office of Fair Lending Oversight
Division of Housing Mission and Goals
FHFA’s Fall 2023 Econ Summit on Climate Risk
January 22, 2024
Author:
November Wilson
Senior Economist, Climate Change and ESG Branch
Division of Research and Statistics
Incorporating Climate-Related Risks into Governance
April 22, 2024
Authors:
Eric Kelley
Senior Strategic Analyst
Division of Conservatorship Oversight and Readiness
Anne Marie Pippin
Deputy Director
Division of Conservatorship Oversight and Readiness
La’Toya Holt
Senior Risk Analyst, Governance and Management Risk Branch
Office of Risk Analysis
Policy and Guidance and Development
Division of Enterprise Regulation
Editor:
Varun Joshi
Economist, Climate Change and ESG Branch
Division of Research and Statistics
Progress in Addressing Climate-related Disclosure Standards
April 23, 2024
Authors:
Suzanne Crump
Principal Accountant (Advisor)
Office of the Chief Accountant
Truc-An To
Principal Accountant, Financial Disclosure Branch
Office of the Chief Accountant
Quinn McDonough
Accountant, Accounting Policy Branch
Office of the Chief Accountant
Editor:
Varun Joshi
Economist, Climate Change and ESG Branch
Division of Research and Statistics
Lessons Learned from Assessing Exposure to Climate-Related Risks
May 1, 2024
Authors:
Caroline Hopkins
Senior Economist
Division of Housing Mission and Goals
Charles Hu
Supervisory Financial Analyst
Division of Housing Mission and Goals
Andrew Davenport
Principal Economist
Division of Housing Mission and Goals
Barry Carroll
Senior Financial Analyst
Division of Housing Mission and Goals
Stefan Szilagyi
Supervisory Economist
Division of FHLBank Regulation
Editor:
Varun Joshi
Economist, Climate Change and ESG Branch
Division of Research and Statistics
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 circ*mstances.
For more information on disaster response and assistance: Seehttps://www.fhfa.gov/homeowners-and-homebuyers/mortgage-assistance/disaster-assistance
RFI: Climate and Natural Disaster Risk Management at the Regulated Entities
Link to Comments
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,Remarks, and External Engagements
Daniel E. Coates, Executive Sponsor of the Climate Change and ESG Working Groups at FHFA, discussed FHFA and its regulated entities’ actions to address climate change in an interview with The Economist on March 27, 2024.
Daniel E. Coates, Executive Sponsor of the Climate Change and ESG Working Groups at FHFA, delivered closing remarks addressing climate change at the joint GSE Climate Risk Forum held on March 20 and 21, 2024 at the Freddie Mac Headquarters.
Daniel E. Coates, Executive Sponsor of the Climate Change and ESG Working Groups at FHFA, delivered remarks on FHFA and its regulated entities’ actions to address climate-related risk during the Ceres webinar, Charting Progress: Regulator Actions on Climate Financial Risks, on December 18, 2023.
Daniel E. Coates, Deputy Director for the Division of Research and Statistics at FHFA, discussed the impact of climate change on the housing finance sector at the Insurance Information Institute (III) Town Hall held on November 30, 2023.
Daniel E. Coates, Deputy Director for the Division of Research and Statistics at FHFA, participated in a panel on Climate-Related Risk for Housing Finance at the Financial Services Conference organized by the Consumer Federation of America on November 16, 2023.
Jessica Shui, Climate Change and ESG Branch Manager for the Division of Research and Statistics at FHFA, delivered remarks on FHFA’s progress in advancing climate resiliency at the Financial Literacy and Education CommissionPublic Meetingheld on November 15, 2023.
Jessica Shui, Climate Change and ESG Branch Manager for the Division of Research and Statistics at FHFA, delivered remarks addressing climate risk at CoreLogic’s DC Government Forum held on November 13, 2023.
Sandra L. Thompson, Director of FHFA, deliveredremarksaddressing climate change at the Financial Stability Oversight Council’s Climate-related Financial Risk Advisory Committee Meeting on October 20, 2023.
Daniel E. Coates, Deputy Director for the Division of Research and Statistics at FHFA, delivered remarks on FHFA’s work to address climate change during an interview with National Mortgage Professionals on October 12, 2023.
Daniel E. Coates, Deputy Director for the Division of Research and Statistics at FHFA, delivered closing remarks addressing climate change at the joint GSE Climate Risk Forum held on October 10, 2023.
Sandra L. Thompson, Director of FHFA, participated in a climate change Q&A organized by the National Association of Federally Insured Credit Unions (NAFCU) on September 13, 2023.
Daniel E. Coates, Deputy Director for the Division of Research and Statistics at FHFA, delivered remarks which also touched upon climate change at the 2023 American Real Estate and Urban Economics Association (AREUEA) National Conference held on June 1, 2023.
Daniel E. Coates, Deputy Director for the Division of Research and Statistics at FHFA, participated in a panel discussion on climate risk hosted by CoreLogic on May 10, 2023.
Daniel E. Coates, Deputy Director for the Division of Research and Statistics at FHFA, delivered remarks on FHFA’s actions to address climate-related risk during the Ceres webinar, The Climate Risk Scorecard: Assessing U.S. Financial Regulator Action, on December 6, 2022.
Sandra L. Thompson, Director of FHFA, deliveredremarksduring the Financial Literacy Education Commission (FLEC) Public Meeting on November 17, 2022, which also touched upon climate.
Daniel E. Coates, Deputy Director for the Division of Research and Statistics at FHFA, served as the keynote presenter for the September 30, 2022, Climate Adaptation Forum (CAF).
Sandra L. Thompson, Director of FHFA, addressed climate change during the National Association of Federally Insured Credit Unions (NAFCU)’s Congressional Caucus event in September 2022.
Daniel E. Coates, Deputy Director for the Division of Research and Statistics at FHFA, addressed climate change in a podcast on climate change risk organized by the National Association of Federally Insured Credit Unions (NAFCU) in August 2022.
Federal Housing Finance AgencyAnnounces Membership in the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) on May 11, 2022.
FHFA Acting Director Sandra L. Thompson's Statement on Climate Changeon December 27, 2021.
Prepared Remarks of Sandra L. Thompson, Acting Director of FHFA, at Financial Stability Oversight Council Principals Meeting. on October 21, 2021.
Regulated Entities
On March 20 and 21, 2024, the Enterprises hosted a joint GSE Climate Risk Forum. The event included panel sessions, presentations, and individual speakers covering topics on the low-carbon transition and housing.
On October 10, 2023, the Enterprises hosted a joint GSE Climate Risk Forum. The event included panel sessions, presentations, and individual speakers covering topics on climate resilience and the housing market.
In June 2023, the Federal Home Loan Banks released an inauguralCorporate Social Responsibility Reporthighlighting their commitment to robust and prudential risk management and governance in order to continue to meet the demands of their member districts.
The ESG website of theFederal Home Loan Bank of Dallasdescribes their ESG strategy and includes a link to their2022 ESG Report, published in April 2023.
FannieMaeandFreddieMac'sESG websites describe their ESG strategies and include links to their most recent Sustainability and ESG Reports.
Contact:
Email:ClimateChange-ESG@fhfa.gov
Meet the Team
Anju Vajja
Executive Sponsor of Climate Change and ESG Working Group
Chair, Climate Change and ESGSteering Committee
Jessica Shui
Project Coordinator
Climate Change and ESGWorking Group
Varun Joshi
Assistant Project Coordinator
Climate Change and ESG Working Group
Read thebiosof additional experts working on climate and ESG.
Page last updated: May 1,2024
