PennyMac Financial Services, Inc.
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Total Energy Consumption:2,670,062 kWh (Moorpark, CA); 2,462,485 kWh (Fort Worth, TX); 1,205,396 kWh (Summerlin, NV)
Water Consumption:2.4 million gallons (Summerlin, NV)
Waste Generated:82.41 metric tonnes of paper recycled; just under 16,100 pounds of e-waste recycled
ESG Focus Areas
- Business Ethics and Corporate Governance
- Climate and Environmental Risk Management
- Customer Satisfaction and Loan Transparency
- Cybersecurity and Data Privacy
- Employee Health and Wellbeing
- Enterprise Risk Management and Compliance
- Environmental Impact of Operations
- Environmentally Responsible Products and Services
- Executive Compensation and Benefits
- Fair and Responsible Lending
- Human Rights
- Socially Responsible Products and Services
- Stakeholder Engagement
- Supply Chain Management
- Talent Retention, Development and Attraction
- Transparency and Accountability in Financial and Non-Financial Reporting
- Workforce Diversity, Equity, and Inclusion
Environmental Achievements
- Reduced paper usage by approximately 51 million sheets and 37 million envelopes through electronic statements and communications.
- Recycled approximately 82.41 metric tonnes of paper through secure shredding.
- Recycled just under 16,100 pounds of e-waste.
- Planted 1,050 trees through partnership with One Tree Planted.
Social Achievements
- Designated as a “Most Loved Workplace” and a “Top 100 Company” by Newsweek.
- Maintained six formally recognized and company-supported Business Resource Groups (BRGs).
- Distributed approximately $1.4 million to local and national charities.
- Launched the Pennymac Matching Gifts Program and the Pennymac Volunteer Grants Program.
Governance Achievements
- Maintained a comprehensive compliance management system (CMS).
- Implemented robust stock ownership guidelines for non-management directors and executive officers.
- Established a Diversity, Equity, and Inclusion Council.
- Conducted two Brave & Inclusive Conversations sessions.
Climate Goals & Targets
Environmental Challenges
- Challenging origination market in 2023 with industry volumes down approximately 40 percent from 2022.
- Potential impacts of climate change on owned real estate and properties collateralizing loans.
- Potential for increased costs associated with climate-related regulations and disclosures.
Mitigation Strategies
- Integrated sustainability into all facets of operations to bolster business resilience.
- Engaged a mortgage and climate risk analytics firm to assess and manage climate and environmental risks.
- Developed strategies to mitigate acute physical risks identified through climate risk assessment.
- Implemented policies and procedures for mitigating environmental risks, including hazard and flood insurance.
Supply Chain Management
Responsible Procurement
- Statement of Vendor Ethics outlining legal, environmental, and social responsibility expectations.
Climate-Related Risks & Opportunities
Physical Risks
- Rising average global temperatures
- Rising sea levels
- Increased frequency and severity of extreme weather events
Transition Risks
- Changes in consumer preferences
- Additional legislation and regulatory requirements
Reporting Standards
Frameworks Used: GRI Standards: Core Option, SASB Mortgage Finance Standard
Awards & Recognition
- Newsweek’s Top 100 Most Loved Workplaces
- Mortgage Women Magazine’s Top Employer for Women
- 2023 Servicer Honors and Rewards Program (SHARP)
- 2023 Servicer Total Achievement and Rewards (STAR) Program
- HousingWire’s Tech100
- Scotsman Guide’s #1 Top VA Lenders and Top FHA Lenders
- National Mortgage Professional Magazine’s 2023 Best Military Lender
- NerdWallet’s 2023 Best Mortgage Lender for FHA Loans