Our Next Chapter in
Green Bond Leadership

Leveraging the power of capital markets to
accelerate the transition to greener housing

Read our 2020 Green Bond Impact Report  
Access CUSIP-Level Impact Data  

When we launched our Green Bond Business in 2010, our premise was simple but pioneering.

We would leverage our leading role in the mortgage finance market to incentivize property owners to make environmental improvements to their properties. In parallel, we would offer a transparent and high-quality investment opportunity to global investors seeking to accelerate the transition to a low-carbon economy. For more than a decade, Fannie Mae has put that premise into action, generating measurable environmental — as well as social and financial — benefits for property owners, tenants, lenders, and investors.

Our Environmental, Social, and Economic Impact

Fannie Mae issuances 2012-2020

For impact at the CUSIP and loan level, click here.

Environmental

9.5B

kilo British Thermal Units (kBtu) of source energy saved

8.5B

gallons of water saved*

634,000

metric tons carbon dioxide equivalent (MTCO2e) of greenhouse gas emissions prevented

Social

$146M

utility cost savings by multifamily tenants, or an average of $184 per family per year*

$843

average homeowner utility cost savings per single-family home per year**

872,000

properties retrofitted or green building-certified*

224,000

well-paid jobs created or supported

Economic

$9.5B

wages paid to construct or retrofit properties, contributing to $19.9 billion to U.S. gross domestic product (GDP)

$410M

borrower investment commitment for energy and water efficiency measures on 3,696 properties through the Multifamily Green Rewards program*

$2.83

economic output per dollar invested

All numbers are based on one-year estimated impacts and reflect both Single-Family and Multifamily issuances unless otherwise noted.

* Includes estimated impacts only from Fannie Mae Multifamily Green Bonds.

** Includes estimated impacts only from Fannie Mae Single-Family Green Bonds.

Through 2020, our Green Bonds have...

Our Green Bond Offerings

Our Green Bond Business supports the Single-Family and Multifamily housing markets by purchasing mortgages backed by properties that meet our criteria for energy and water efficiency and/or renewable energy generation.

Multifamily Green Mortgage-Backed Securities (MBS)

Through our Delegated Underwriting and Servicing (DUS®) model, a Multifamily DUS MBS is generally backed by one Green loan on one property.

Learn more  

Green Guaranteed Multifamily Structures (Fannie Mae GeMS™)

A resecuritized pool of Green MBS is structured as a Real Estate Mortgage Investment Conduit (REMIC), providing greater collateral diversity to investors.

Learn more  

Single-Family Green MBS

Includes mortgage loans backed by newly constructed single-family residential homes with ENERGY STAR® certifications that meet or exceed the national program requirements for ENERGY STAR 3.0 Certified Homes, which are, on average, 20% more efficient than single-family homes built to code.

Learn more  

Providing Confidence and Transparency to Investors

Rigorous standards, transparency, and accountability to investors are the foundations of Fannie Mae’s Green Bond Business — and are critical to our goal of advancing an active and growing global green bond market. That is why we are committed to providing comprehensive, best-in-class disclosures about our securitization process and the estimated environmental, social, and financial impacts of our Green Bonds.

Our objective is to supply investors with the information and data they need to evaluate and have full confidence in the quality, rigor, and impact of Fannie Mae’s Green Bonds.

Related resources:

 

CICERO specifically recognized Fannie Mae for:

  • Strong incentives, for introducing the first pricing break for green building certifications and water and energy efficiency improvements in the U.S. multifamily rental market, thereby encouraging and raising awareness of these initiatives.
  • Expanding the market by introducing Green Bonds backed by single-family properties, which is expected to help improve the environmental performance of properties in this market.
  • Raising the level of ambition of our eligible multifamily green building certifications and eligibility standards for our Green Rewards Mortgage Loan product over time, including mandatory energy efficiency improvements. In addition, for having an explicit energy efficiency requirement for our Single-Family Green Bonds that goes beyond the national building baseline.
  • Credible verification, for engaging a third party to verify efficiency improvement installations on-site for our Multifamily Green Bonds.
  • Robust eligibility screening by investing in tools and in-house technical expertise to inform eligibility screening.
  • Assessing flood risk of single-family properties. CICERO cited this as an effective first assessment of physical climate change risk.

CICERO’s Second Opinions are available on our Fannie Mae Green Bonds webpage.

Our Recognition

Case study – Pax Futura

Pax Futura is Seattle, Washington’s first certified Passive House apartment project – and a real-world demonstration that ultra-high-performance green building can be done at scale. The project is the first Fannie Mae green mortgage loan secured by a property with a green building certification in our Towards Zero Group.

Read more  

View the full 2020 Green Bond Impact Report

Get it here  

Take a look at our previous reports:

2012 – 2018 Green Bond Impact Report

2019 Green Bond Impact Report