Climate-Related Risk and Environmental, Social, Governance (ESG)
The Mortgage Bankers Association (MBA) is committed to working with policymakers as they develop policies related to climate-related financial risk and Environmental, Social, Governance (ESG) that could have an impact on the residential or commercial and multifamily real estate industry.
MBA will advocate for reasonable policy approaches to address the management and disclosure of climate-related financial risk as it affects real estate finance. MBA also will support reasonable approaches to ESG factors that appropriately balance operational burden with the usefulness of the disclosed information. Any development of climate-related financial risk or ESG policies affecting the mortgage industry should recognize the evolving understanding of both climate risk and ESG-related lending and investing.
Recent MBA Activity Related to Climate-Related Risk and Environmental, Social, Governance (ESG)
MBA and NYMBA Comment Letter on Proposed NYDFS Climate Risk Mitigation Guidance
MBA Feedback on Principles for Climate-Related Financial Risk Management for Large Financial Institutions
Who Owns Climate Risk in the U.S. Real Estate Markets
MBA Letter to SEC on Climate-Related Disclosures
MBA Joint Letter to SEC on Climate-Related Disclosures
MBA Letter to FDIC on Statement of Principles on Climate-related Risk Management
MBA Letter in Response to Federal Office of Insurance RFI on Climate Change
Ways to Get Involved
MBA's ESG webinar series: MBA continues to schedule and host ESG and climate change focused webinar events for members. Issues covered so far include an overview of net zero in CRE, ESG terms and definitions, and challenges and opportunities related to implementing ESG into CRE business. Please refer to this page for future updates on upcoming ESG webinar events. Access past recordings (MBA Members Only).
MBA's Commercial Real Estate Finance (CREF) Green Lending Roundtable: The Green Lending Roundtable consists of MBA members that work together to gather and share information on emerging investor expectations and appetites on climate risk and ESG, and to identify policy and other trends and conditions in climate and ESG investing. Through the Green Lending Roundtable, MBA is working with its members to navigate the intersection of managing climate risk and meeting ESG and other green lending goals.
MBA's collaboration with Mortgage Industry Standards Maintenance Organization (MISMO): MBA is working with MISMO, the real estate finance industry's standards organization, to facilitate the development of green lending and ESG standards, including, but not limited to, data, terms, and definition to support the flow of consistent information throughout the mortgage finance ecosystem. On December 15, 2021, MISMO launched its updated Commercial Green Utility Dataset. The dataset and accompanying package of resources help facilitate the efficient exchange of green utility information across the commercial real estate finance industry. The dataset standard has achieved "Candidate Recommendation" status, which means that it has been thoroughly reviewed by a wide range of organizations and industry participants and is available for use across the industry. Contact [email protected] or [email protected] to learn more.
Commercial Green Lending Survey: In 2021, MBA conducted a survey of commercial/multifamily lenders' green lending activity. The purpose of the survey was to provide participants a catalog of how other CMF lenders are approaching green lending, including whether individual firms do or do not have a green lending program. MBA expects to do an update in the near future.
To get involved, please contact Bruce Oliver at (202) 557-2840.
Related MBA Events
Basics of Commercial Loan Closing and Loan Documentation
Commercial Real Estate Basics: Introduction to Commercial/Multifamily Loan Servicing: June 2023
MAA Quarterly Webinar: Townhall Legislative Update
Make the Most of Your CREF Membership - June 2023
Commercial Real Estate Basics: Introduction to Commercial/Multifamily Real Estate: July 2023: On Demand
MBA's Climate-Related Risk and ESG Frequently Asked Questions address differences between climate risk and ESG terminology, highlight climate-related financial risk factors relevant to real estate, and provide an overview of MBA's work on policy, research, and practice in the climate and ESG space. The climate and ESG FAQs may also help MBA members conduct business at and discuss the intersection of climate-related risk, ESG, and CRE. Download our FAQs.The Impact of Climate Change on Housing and Housing Finance is a 2021 report by Sean Becketti, published Research Institute for Housing America (RIHA). Read the report.