The purpose of Federal Housing Finance Agency’s (FHFA) Climate Risk Committee is to ensure the Agency makes strategic and tactically sound decisions concerning the impacts of and response to the risks posed by climate change in a coordinated, collaborative, and informed manner in furtherance of FHFA’s mission. The goal of the Climate Risk Committee is to better understand the impact of climate change on the housing and mortgage markets, including the disparate impacts on disadvantaged communities, and facilitate the sharing of climate-related financial risk data and information.
To this end, FHFA established an internal Climate Risk Committee, consisting of representation from the Agency's Divisions and Offices, with working groups staffed with experts from across the Agency on the following areas:
- Data and research;
- Assessing climate exposure;
- Reporting and disclosure;
- Governance; and
- Green bonds.
The Climate Risk Committee will build on the progress made by its predecessor, the Climate Change and Environmental, Social, and Governance (ESG) Steering Committee. In line with this and the Agency’s mission, FHFA will continue to integrate a consumer protection lens into its supervisory oversight and will foster interagency and regulated entity collaborations to keep abreast of emerging best practices for climate resiliency and sustainability.
Additional Steps Taken
In April 2023, FHFA joined the Mitigation 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 the Financial 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 the Network 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.
In February 2022, FHFA joined the Financial Stability Oversight Council’s (FSOC) Climate-related Financial Risk Committee (CFRC). The CFRC assists FSOC in gathering information on, conducting analysis of, and making recommendations to identify, assess, and mitigate climate-related risks to the financial system.
Econ Summits
FHFA will host an Economic Summit on climate risk on November 12, 2024. (Submissions Closed: Fall 2024 Econ Summit Call for Papers)
On October 3, 2023, FHFA hosted an Economic Summit on climate risk. The Summit included three sessions: climate change and insurance; land use regulations, disclosures, and risk modeling; and disaster risk and house prices. This blog post details the event and some key takeaways from the Summit and each of the 11 presentations.
On November 1, 2022, FHFA hosted an Economic Summit on 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 guidance for managing climate-related risks to support a safe and sound operating environment within FHFA’s AB 2024-01: Climate-Related Risk Management Advisory Bulletin.
See FHFA’s ongoing research and staff working papers here.
See FHFA’s climate-related performance measures and targets for 2024 within FHFA’s FY 2024 Annual Performance Plan.
See FHFA’s FY23 climate-related activities and plans for FY24 within FHFA’s 2023 Performance and Accountability Report.
See FHFA’s climate-related activities in 2023, 2022, and 2021 within FHFA’s 2023 Annual Report to Congress, 2022 Annual Report to Congress, and 2021 Annual Report to Congress, respectively
See FHFA’s climate-related performance measures and targets for 2023 within FHFA’s FY 2023 Annual Performance Plan.
See FHFA’s FY22 climate-related activities and plans for FY23 within FHFA’s 2022 Performance and Accountability Report.
Climate Blog Series
Read about the ongoing work and accomplishments of FHFA’s Climate Risk Committee 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,
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,
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,
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,
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 circumstances.
For more information on disaster response and assistance: See https://www.fhfa.gov/homeowners-and-homebuyers/mortgage-assistance/disaster-assistance
RFI: Climate and Natural Disaster Risk Management at the Regulated Entities
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 Listening Session Transcript
March 4, 2021 Listening Session Presentations
Statements, Remarks, and External Engagements
Jessica Shui, Project Coordinator for the Climate Change and ESG Working Groups at FHFA, discussed FHFA’s climate risk management initiatives on April 19, 2024, at the Americatalyst Housing and Finance Leadership Summit.
Anju Vajja, Executive Sponsor of the Climate Change and ESG Working Groups at FHFA, discussed climate-related financial risks at the American Savings Education Council Panel hosted by the Bipartisan Policy Center on April 11, 2024.
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 Commission Public Meeting held 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, delivered remarks addressing 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, delivered remarks during 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.
FHFA Acting Director Sandra L. Thompson's Statement on Climate Change on December 27, 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 inaugural Corporate Social Responsibility Report highlighting 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 the Federal Home Loan Bank of Dallas describes their ESG strategy and includes a link to their 2022 ESG Report, published in April 2023.
Fannie Mae and Freddie Mac's ESG 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
Jessica Shui
Co-Chair of the Climate Risk Committee
Division of Research and Statistics
Charles Hu
Co-Chair of the Climate Risk Committee
Division of Housing Mission and Goals
Read the bios of additional experts working on climate risk.
Page last updated: August 2, 2024