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- Refined ESG Strategy: Freddie Mac refreshes its environmental, social, and governance (ESG) priorities for enhanced sustainability.
- Climate Impact: $348 billion liquidity provided, with significant investments in green mortgages and sustainable housing.
- DEI and Human Capital: Commitment to diversity, equity, and inclusion, recognized as a top employer for LGBTQ+ equality.
Freddie Mac’s refreshed ESG priorities aim to bolster the long-term health of the U.S. housing finance system while addressing evolving sustainability-related risks and opportunities. “Our mission is to Make Home Possible equitably and responsibly,” stated Michael DeVito, CEO of Freddie Mac.
Climate Impact
In 2023, Freddie Mac injected $348 billion into the housing market via over 1,000 lenders. This includes $1.9 billion in Single-Family Green Mortgage-Backed Securities (MBS) and over $1 billion in GreenCHOICE financing, promoting energy efficiency. “Climate risks disproportionately affect underserved communities,” noted DeVito. Freddie Mac’s climate roadmap guides initiatives to support these vulnerable populations.
Sustainable Housing
Freddie Mac’s initiatives extend affordable housing to traditionally underserved communities. The DPA One® program aids borrowers in accessing down payment assistance. HeritageOneSM Mortgage supports home financing within tribal areas. Additionally, Freddie Mac’s credit-building initiative has helped over 500,000 renters, with 300,000 seeing credit score improvements.
In 2023, Freddie Mac supported 423,000 affordable rental units, with 92% accessible to those earning at or below 120% of area median income. The Multifamily Impact Bonds program has issued over $20 billion since 2019, addressing affordable housing challenges.
DEI and Human Capital
Freddie Mac’s commitment to diversity, equity, and inclusion (DEI) strengthens its workforce and supports its mission. Over 50% of employees identify as racially or ethnically diverse, with women constituting 44% of the workforce. Freddie Mac has been recognized as a Best Place to Work for LGBTQ+ Equality since 2010. “A strong commitment to DEI creates a stronger Freddie Mac and a stronger housing system,” emphasized DeVito.
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Sustainable Operations
Freddie Mac continues to advance responsible business practices. In 2023, they launched both a Corporate Sustainability Committee and a Climate Risk Steering Committee. Operational efforts resulted in eliminating 44 metric tons of CO2 through composting and donating 24,000 meals to local food rescue groups.