The Federal Housing Finance Agency (FHFA) has announced its membership in the Network of Central Banks and Supervisors for Greening the Financial System (NGFS).
Launched in December 2017 at the "One Planet Summit" in Paris, NGFS is an international group comprised of central banks and financial supervisors whose purpose is to help strengthen the global response required to meet the goals of the Paris agreement. NGFS members work to enhance the role of the financial system in managing risks and mobilizing capital for green and low-carbon investments in the context of environmentally sustainable development. NGFS defines and promotes best practices to be implemented within and outside of its membership, and conducts and commissions analytic work on green financing.
Recognizing the increasing risk to property from climate change, including severe structural damage caused by hurricanes, tornadoes, floods, droughts and wildfires, FHFA Director Sandra L. Thompson issued a statement in December 2021 that affirmed the Agency's commitment to making tangible progress toward addressing the impact of climate change on the nation's housing finance system. The statement also noted that FHFA's regulated entities should designate climate change as a priority concern and actively consider its effects in their decision making.
"FHFA recognizes that climate change poses a serious threat to the U.S. housing finance system," said Thompson. "I look forward to working with NGFS members and contributing to its efforts as we confront these challenges."