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ESG Environmental

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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Green bonds 

Fannie Mae is one of the world's largest issuers 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. Through 2023 we cumulatively issued $121.1 billion in Green MBS, and the balance of Fannie Mae Green MBS outstanding as of December 31, 2023 was $99.3 billion.

Our widely recognized green bond program 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. These bonds conform with our Single-Family and Multifamily Green Bond Frameworks, which are aligned to global standards set forth in the International Capital Markets Association (ICMA) Green Bond Principles.

Explore our Green Bonds

ESG Environmental Green Bonds

 

Our green bond programs grew to $121.1 billion in 2023 with $99.3 billion in Fannie Mae Green MBS outstanding as of December 31, 2023.

 

Our Recognition

ESG Environmental Climate Risk

Climate risk 

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.

Climate resilience

Climate resilience 

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 recovery counseling service 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.
  • Fannie Mae's consumer 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.

2023 Environmental Impact

$117.6 billion

Multifamily Green Mortgage-Backed Securities issued (2012-2023).

$14.2 billion

in Multifamily Green re-securitizations issued (2012- 2022).

$3.5 billion

in Single-Family Green MBS issued through December 2023, backed by newly constructed single-family ENERGY STAR® Certified Homes, Version 3.0 or higher.

792K metric tons

of carbon dioxide equivalent (MTCO2e) greenhouse gas emissions prevented.*

12.5 billion kBtu

of source energy saved.*

9.2 billion gallons

of water saved at multifamily green-financed properties annually.**

1.2M

housing units retrofitted or green building-certified.*

$161 million

of utility savings by multifamily tenants, or an average of $188 per family per year.***

Refer to Fannie Mae’s Green Bond Impact Methodology for more information on our impact methodology.

* Based on one-year projected environmental and social impacts of the loans backing the green bonds.
** Based on one-year projected environmental and social impacts of loans backing multifamily green bonds only.
*** Based on one-year projected environmental and social impacts multifamily green bonds backed by Green Rewards mortgage loans only.