To boost its sustainability efforts, Freddie Mac amended its environmental, social, and governance (ESG) principles. In 2023, the organisation invested $348 billion in the housing industry through partnerships with over 1,000 lenders. This funding included $1.9 billion in Single-Family Green Mortgage-Backed Securities (MBS) and more than $1 billion in GreenCHOICE financing, which promotes energy-efficient housing options.
Michael DeVito, CEO of Freddie Mac, emphasised the disproportionate impact of climate concerns on underprivileged populations. He emphasised Freddie Mac’s commitment to assisting these vulnerable groups through specific efforts detailed in their climate plan.
Freddie Mac’s sustainable housing initiatives seek to provide access to affordable housing, particularly in underdeveloped areas. DPA One® and HeritageOneSM Mortgage provide down payment assistance and financing solutions specific to indigenous communities. Furthermore, Freddie Mac’s credit-building initiatives helped approximately 300,000 renters improve their credit ratings.
In 2023, Freddie Mac supported 423,000 affordable rental units, the vast majority of which were offered to households earning at or below 120% of the area median. Their Multifamily Impact Bonds project, which began in 2019, has raised more than $20 billion to solve affordable housing issues nationally.
Freddie Mac values diversity, equity, and inclusion (DEI) in its workforce. With more than half of its employees identifying as racially or ethnically diverse, and women accounting for 44% of the workforce, Freddie Mac has been recognised as a leader in LGBTQ+ equality, earning Best Place to Work designation since 2010.
In addition to housing improvements, Freddie Mac has adopted more environmentally friendly working methods. Initiatives for 2023 include the creation of a Corporate Sustainability Committee and a Climate Risk Steering Committee. Operational successes, such as composting efforts that reduced 44 metric tonnes of CO2 emissions and providing 24,000 meals to local food rescue agencies, highlight their commitment to ethical business practices.
Michael DeVito emphasised that Freddie Mac’s new ESG priorities aim to build a more fair and sustainable housing financing system, which is consistent with the company’s mission to “Make Home Possible” responsibly for everyone.