Climate Change Data

Environmental Metrics

Social Achievements

• Lead agents in 2022 earned a median income more than two times as much as agents at competing brokerages. Lead agents were, on average, more than twice as productive as agents at competing brokerages in 2022. From 2020 to 2021, lead agent retention was 77% compared with 66% for the industry, and from 2021 to 2022 (which was impacted by layoffs) retention was 66% compared with 61% for the industry.

Climate Goals & Targets

Environmental Challenges

• Adverse macroeconomic conditions impacting the residential real estate market (higher mortgage interest rates, lower consumer sentiment, increased inflation, declining financial market conditions) led to a 27% decrease in real estate services transaction volume in Q3 and Q4 2022 compared to the prior year.
• Intense competition in all lines of business.
• Maintaining and improving technology offerings.
• Obtaining and providing comprehensive and accurate real estate listings.
• Attracting homebuyers and sellers cost-effectively.
• Challenges associated with employing lead agents (lower per-transaction earnings compared to independent contractors, higher costs, potential for turnover).
• Dependence on partner agents.
• Compliance with REALTOR® associations and MLSs' rules.
• Compliance with licensing requirements for brokerage, mortgage, and title businesses.
• Risks and uncertainties associated with the wind-down of RedfinNow operations.
• Potential for net proceeds from Bay Equity loan sales not exceeding loan amounts.
• Rent.'s growth dependence on attracting property managers' advertising spending.
• Integration challenges and costs related to acquisitions of Rent. and Bay Equity.
• Cybersecurity incidents.
• Unauthorized access to or release of personal information.
• Reliance on third-party licensed technology.
• Securing intellectual property protection.
• Maintaining and scaling technology.
• Compliance with various federal, state, and local laws.
• Costs associated with defending legal proceedings.
• Potential negative impact of industry changes resulting from class action lawsuits.
• Insufficient cash flow to make payments on convertible senior notes.
• Inaccurate fair value estimates of Bay Equity's MSRs, IRLCs, and loans held for sale.
• Unavailability of warehouse credit facilities for Bay Equity.
• Cross-acceleration and cross-default provisions in debt agreements.
• Potential cash payments to preferred stockholders before redemption date.

Mitigation Strategies

• Workforce reductions (layoffs) to align operations with consumer demand.
• Wind-down of RedfinNow operations.
• Elimination of commission refund in all markets to increase revenue per transaction.
• Use of forward sales commitments to manage interest rate risk in mortgage business.
• Measures to protect the security and privacy of personal information.
• Repurchase and retirement of a portion of 2025 convertible senior notes.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Adverse macroeconomic conditions including higher mortgage interest rates, lower consumer sentiment, and increased inflation impacting consumer demand for services.
• Numerous lawsuits alleging antitrust violations filed against Redfin and other real estate companies.

Mitigation Strategies

• Reduced total number of employees by 40% through involuntary reductions and attrition.
• Wind-down of RedfinNow (properties segment) completed in Q2 2023.
• Settlement agreement reached to resolve lawsuits alleging antitrust violations for $9.25 million.

Supply Chain Management

Climate-Related Risks & Opportunities