The Federal Housing Finance Agency has become a member of the Network of Central Banks and Supervisors for Greening the Financial System, joining other U.S. banking regulators such as the Federal Reserve and the OCC. With today’s announcement FHFA is highlighting the increasing risk to property from climate change, including severe structural damage caused by hurricanes, tornadoes, floods, droughts and wildfires.

Founded in 2017, NGFS is a group of central banks and supervisors that shares best practices in the development of environment and climate risk management in the financial sector and works to mobilize mainstream finance to support the transition toward a sustainable economy. FHFA Acting Director Sandra L. Thompson said the agency’s regulated entities should prioritize climate change and actively consider its effects in their decision making.