Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Capital Management
• Business Ethics
• Risk Management
• Corporate Governance

Environmental Achievements

• Headquartered in a LEED-certified and Energy Star® labeled building
• Office cleaning and pest control conducted with green products
• Recycling of electronic equipment and ink cartridges
• Energy Star® certified laptops, monitors, and printers
• Cloud computing
• Motion sensor control lighting in certain areas

Social Achievements

• Employee satisfaction rating above 90 percent in most areas
• 100% of employees indicated that AGNC responded “very well” or “extremely well” to COVID-19.
• Launched a mentorship program for junior to mid-level employees
• Started a periodic “Lunch and Learn” program
• Provided $150,000 to six organizations selected by a committee of our employees to address social and economic inequality

Governance Achievements

• Four of seven directors are gender or racially diverse
• Separate position of Chair and CEO
• Monthly announcement of tangible net book value estimates
• Detailed financial disclosure regarding AGNC’s portfolio, financing, and hedging arrangements
• 100% attendance at 94% of our Board and committee meetings in 2020

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its wide-ranging impacts
• Broader domestic social unrest
• Limitations on data for mortgages diminish our ability to assess environmental factors

Mitigation Strategies

• Transitioned offices seamlessly to a fully remote workforce
• Provided all necessary home office equipment, supplies and connectivity
• Adopted a retention program
• Renewed focus on communication
• Provided mental health resources
• Announced several intra-quarter updates to apprise our investors of the impact of COVID-19

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Awards & Recognition

• 2020 Investor CARE Award

Environmental Metrics

ESG Focus Areas

• Corporate governance
• Risk management
• Human capital management
• Business ethics

Environmental Achievements

• Assessed and disclosed Scope 1 and 2 Greenhouse Gas (GHG) emissions
• Purchased carbon offsets and renewable energy certificates to offset the entirety of our 2022 Scope 1 and 2 GHG emissions
• Relocated corporate headquarters to a newly constructed LEED Platinum and WELL Health-Safety Certified, sustainable building

Social Achievements

• Created 2 employee-led committees focused on community engagement and corporate giving, and on social activities and employee engagement
• Certified as a Great Place to Work™ in recognition of employee engagement efforts for a second time
• $105,000 donated to organizations focused on safe and fair housing, community outreach, financial literacy and social issues

Governance Achievements

• Conducted mandatory employee compliance training on our Code of Ethics, insider trading, whistleblower protections, anti-corruption and anti-harassment
• Expanded Insider Trading Policy, reinforcing our commitment to compliance and ethical business practices
• Members of our Board of Directors participated in continued education on a variety of topics, including climate change and cybersecurity

Climate Goals & Targets

Environmental Challenges

• Limited visibility into the underlying properties within mortgage pools, diminishing ability to assess environmental factors at the individual home level.
• Accelerated repayment of principal as the Agency buys delinquent loans at par value from the MBS pool following an environmental event.
• Potential for losses or reduced returns due to accelerated prepayments and lower reinvestment yields following climate-related events.

Mitigation Strategies

• Active engagement with industry participants to increase disclosure and facilitate analysis of climate change and other environmental impacts for residential mortgage assets.
• Geographical dispersion of AGNC’s portfolio to mitigate the impact of individual climate events.
• Incorporation of material environmental risk factors into the investment decision process for non-Agency securities.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events leading to accelerated prepayments
• Chronic climate events leading to persistent prepayment activity
• Significant changes to the residential housing ecosystem

Transition Risks

• Enhanced environmental reporting obligations
• Increased operating expenses to comply with legal and regulatory changes

Opportunities

• Enhanced data for Agency MBS, facilitating more accurate prepayment modeling
• Greater diversification of Agency MBS products
• Expanded capital markets opportunities
• Additional asset management opportunities

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: LEED Platinum, WELL Health-Safety Certified

Awards & Recognition

• Great Place to Work™ Certification