Fannie Mae knows firsthand the foundational and transformative power of safe, affordable, stable housing for individuals, families, and communities. But we also know that building and powering homes leaves an environmental footprint. In fact, residential households account for roughly 20% of U.S. greenhouse gas emissions and use 9.7 trillion gallons of water annually across the United States.*
As one of the nation’s largest investors in housing, Fannie Mae can help reduce that footprint and support more sustainable housing for people who live in properties we finance. By encouraging the building, heating, cooling, powering, and water consumption of single-family and multifamily properties in more efficient ways, Fannie Mae’s Green Bond Business can help reduce the housing sector’s climate impact. We continually seek to better understand and mitigate climate change-related risks while reducing the environmental footprint of our operations.
*Cheryl A. Dieter, Molly A. Maupin, Rodney R. Caldwell, et al., Estimated Use of Water in the United States in 2015, U.S. Geological Survey Circular 1441, U.S. Department of the Interior, p. 23. 26,600 million gallons per day implies 9.7 trillion gallons per year.
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We are recognized as the world’s largest issuer of green bonds – fixed income products that enable positive environmental, social, and economic outcomes. Our Green Bonds are Mortgage-Backed Securities (MBS) collateralized by loans that finance energy- and water-efficient homes and properties. In 2019, we celebrated 10 years of Multifamily Green Financing, and in 2020, we expanded our offerings to include Single-Family Green Bonds. Through December 2020, we have issued nearly $88 billion in Multifamily Green MBS and approximately $11 billion in Green re-securitizations, and $94 million in Single-Family Green MBS.
Our widely recognized green bond business offers fixed income investors with quality, liquid, green investment products that feature long-term income and steady returns. We currently offer three types of green bonds to investors with the transparency of CUSIP level impact reporting. Fannie Mae’s Single-Family and Multifamily Green MBS both received a Light Green Second Opinion from CICERO Shades of Green. This Second Opinion is important because it is an independent, research-based evaluation that determines the environmental value of green bonds and offers investors insight into the environmental quality of green bonds. CICERO recognized that Fannie Mae's Green Bonds align with the International Capital Markets Association's Green Bond Principles.
Our Multifamily green bond business has grown to nearly $88 billion in 2020.
CICERO Shades of Green
Fannie Mae’s Single-Family and Multifamily Green MBS both received a Light Green Second Opinion from CICERO Shades of Green.
Climate Bonds Initiative
Largest Global Green Bond Issuer Over the Last 10 Years - 2019
Most Impressive Green/SRI ABS Issuer - 2018
Climate Bonds Initiative
Green Bond Framework - 2018
U.S. EPA ENERGY STAR
Sustained Excellence Award – 2017, 2018, 2019, 2020
Recent years have seen frequent and severe natural disasters in the U.S., including hurricanes, wildfires, and floods. The increased frequency, intensity, and unpredictability of major natural disasters pose risks for all stakeholders in the housing system, including homeowners, renters, lenders, investors, and insurers. Our Climate Impact team was established to assess that risk on an ongoing basis and is identifying strategies to mitigate the resulting impacts.
Beyond managing the credit risks inherent in natural disasters, helping families and communities recover and become more resilient is an important part of our work. We have established the following initiatives:
- Fannie Mae’s Disaster Response Network™ offers renters and eligible single-family borrowers free financial counseling from HUD-approved housing advisors, including help in developing a recovery assessment and action plan, filing claims, working with mortgage servicers, and identifying and navigating sources of federal, state, and local assistance.
- Disaster Rebuild Deployment program provides opportunities for our employees to participate in clean-up activities as well as home repairs and rebuild efforts with the goal of reducing the time it takes for a family to return to a safe and stable home after a disaster.
- Know Your Options™ website provides comprehensive information for homebuyers, renters, and homeowners, including mortgage relief options in the wake of a natural disaster and resources for researching a home’s flood risk and flood insurance options.
- Fannie Mae’s HomeStyle® Energy and HomeStyle® Renovation mortgage products provide affordable ways to finance resiliency upgrades to help a home better withstand damaging weather.
We are committed to managing the environmental impacts of our operations. Our focus on environmental sustainability is reflected in our Green Building-certified offices. Though we manage a book of business that exceeds $3.7 trillion, our physical footprint is smaller than may be expected. The majority of our approximately 7,700 employees are based out of just four office buildings.
In 2018, we relocated our Washington, D.C., headquarters to a LEED Gold building. Our Dallas offices are now in a single LEED Silver building in Plano, Texas. In 2020, our D.C. office derived 45% of its energy from renewable sources, and our Reston Crescent, Virginia, location derived 100% of its energy from renewable sources.
2020 Environmental Impact
Multifamily Green Mortgage-Backed Securities issued (2012 – 2020).
in Multifamily Green re-securitizations issued (2012- 2020).
in Single-Family Green MBS issued April through December 2020, backed by newly constructed single-family ENERGY STAR® Certified Homes, Version 3.0.
633,000 metric tons***
of carbon dioxide equivalent (MTCO2e) greenhouse gas emissions prevented.*
9.5 billion kBtu
of source energy saved.*
8.5 billion gallons
of water saved at multifamily green-financed properties annually.**
multifamily units retrofitted or green building-certified.**
of utility savings by multifamily tenants, or an average of $184 per family per year.**
See Fannie Mae’s 2020 Green Bond Impact Report for more information.
*All numbers are based on one year estimated impacts.
** Includes estimated impacts only from Fannie Mae’s Multifamily Green Bonds.
*** Estimated Annual Emissions Savings have been updated to reflect the corrected gross living area of the property.