Diversity & Inclusion Annual Status Report
A Strong Year with Many Achievements
Every year, the Federal Home Loan Bank of New York (FHLBNY) submits a report to the Federal Housing Finance Agency on its efforts and achievements around fostering diversity and inclusion throughout its business. The FHLBNY makes these efforts not just because it brings positive impact to the bottom line and culture, but also because it is quite simply the right thing to do.
2018 was another strong year for diversity and inclusion initiatives. In addition to hiring, developing, promoting, and retaining a workforce that mirrors the communities it serves,the Bank continues to create an inclusive experience for its suppliers, prospects, members, and business partners. Below are highlights from the four key areas covered in the report: Workforce (Employment), Procurement, Financial Transactions (Capital Markets – Funding & Investments), and Housing and Community Investment.
Below are highlights from the four key areas covered in the report: Employment, Procurement, Capital Markets – Funding & Investments, and Affordable Housing and Community Lending Programs.
Our commitment to diversity and inclusion means seeking out the best mix of talent available, eliminating artificial barriers to growth within the Bank, and providing opportunities and incentives to unlock the full potential of a diverse workforce. We consider diversity a core asset, essential to building and maintaining a competitive edge which can be a key to success both now and into the future.
During 2018, the Bank employed 314 regular employees. The distribution of men (56%) and women (44%) was fairly balanced and has been for several years. The diversity of the Bank’s workforce is also very strong. 70% of the Bank’s employees were diverse and 30% were non-diverse. Even though the Bank’s employee headcount increased year over year, the Bank’s demographics remained relatively the same.
*Diverse includes minorities, women, and disabled as defined by the Minority and Women Inclusion Final rule.
Here are highlights of the outcomes in 2018:
The FHLBNY’s Board recognize that diversity at the Board level strengthens the Bank’s ability to respond to member needs and adjust as needed to a rapidly changing environment. As with other aspects of the FHLBNY’s operations, defining, maintaining, and increasing diversity directly impacts individuals and requires careful thought and implementation. Subsequently, FHLBNY received eight applications to fill two open positions: four of the applications were from persons observed to be women (including one incumbent Director), and the other four applications were from persons observed to be men (including one incumbent Director). The Board nominated one incumbent male candidate and one male candidate new to the Board to be filled beginning January 1, 2019.
The Bank’s Board of Directors approved specific aspirational targets to help the Bank on a “best efforts basis” to measure progress towards achieving our objectives to enhance the number of Black or African American, Hispanic or Latino, and qualified disabled individuals at the Bank.
The Bank’s Diversity and Inclusion Outreach Business Partner continued to establish and build relationships between the Bank and a strong pipeline of diverse candidates to fill current and future open positions. Outreach was conducted to over two dozen strategic diversity partner organizations and at least one dozen universities with diverse student bodies.
Supplier Diversity (Procurement)
Bank total annual spend among Minority, Women, and Disabled-Owned Businesses, which have been trending higher since 2014, reached $26.82 million in 2018
In regard to procurement, the 2018 Diversity and Inclusion Plan called for the Bank to enhance its outreach efforts to Minority, Women, and Disabled-Owned Businesses (“MWDOB”), conduct educational meetings/sessions, enhance opportunities for MWDOBs to compete and bid on business with the Bank, and set aspirational spend targets among MWDOBs.
Here are highlights of the outcomes in 2018:
The Bank’s Board of Directors approved specific aspirational targets to help the Bank on a “best efforts basis” to measure progress towards achieving our objectives related to annual MWDOB spend as a percentage of total spend.
In 2018, the Bank entered into 477 relationships with all vendors. Of those relationships, 323 were awarded to non-diverse vendors, and 154 were awarded to MWDOBs for the purchase of goods and services.
The Bank’s total annual spend for 2018 was approximately $63.42 million; an increase of approximately $9.22 million from the 2017 spend of $54.19 million and the 2016 spend of $31.67 million. This increase is largely due to cost related to the design and construction efforts for the New Jersey office and an increase of rent and operating expense.
The Bank continued its commitment to providing MWDOBs with opportunities as evident by the number of bid opportunities that increased from 192 in 2017 to 194 in 2018. The relationships awarded to MWDOBs increased from 94 in 2017 to 154 in 2018.
In addition, the Bank continued to promote MWDOB activities and its brand among the diverse vendor community by attending expositions and networking events, partnering with diverse councils and organizations, and updating the Bank’s website and vendor portal.
Financial Transactions (Capital Markets – Funding & Investments )
The FHLBNY achieved dramatic increases in execution of business with MWDOBs across both the liability and asset sides of the balance sheet in 2018
The FHLBNY had another strong year of building and strengthening relationships as well as executing business with MWDOBs in 2018 on both the liability and asset sides of the balance sheet. The 2018 Diversity and Inclusion Plan called for the Bank to make specific efforts in several areas related to Capital Markets, including governance, outreach and education, opportunities, and reporting. In addition, The Board of Directors approved specific aspirational targets designed, on a best efforts basis, to measure progress in increasing the historical yearly average activity for outreach, education and opportunity and to increase asset and liability trade touchpoints with MWDOBs.
Highlights of the outcomes during 2018 include the following items:
The Bank entered into 131 transactions of negotiated bond and discount note issuance with eleven MWDOB Broker/Dealer dealers, up from nine dealers and 119 transactions in 2017.
Bond investments increased with fifteen trades among two MWBOB Broker/Dealers for a total of $1.45 billion of securities in 2018 over 2017’s eight trades with one MWDOB Broker/Dealer for $690 million.
The Bank continued to build on previous years’ successful outreach through constant reinforcement of the commitment to allow access to MWDOB Broker/Dealers into our daily Capital Markets activities. The Bank maintained its practice of giving MWDOB Broker/Dealers access to its day-to-day funding and investment needs, and sought ways to provide the MWDOB Broker/Dealers additional information and tools to allow them to potentially grow their businesses through the Bank.
The Bank continues to work with all of the MWDOB Broker/Dealer firms to continually look for ways to help the MWDOBs Broker/Dealer and the success is contained in the positive responses received in the survey and the numerous “Thank Yous” the Bank receives from all the firms whether on the phone or in person for really having a positive impact on their businesses.
Affordable Housing and Community Lending Programs
The FHLBNY’s multi-faceted approach to promoting affordable housing and community lending included special efforts to reach non-profit organizations that specialize in addressing homelessness and providing supportive housing, establish relationships with the community based organizations in Puerto Rico and US Virgin Islands, continue efforts to develop relationships with Native American tribes while also involving employees from other departments across the Bank in ribbon cutting ceremonies.
The FHLBNY’s Second District is one of the most diverse in the country in terms of ethnicity, race, and economic status. The major cities in New York State (New York City, Albany, Buffalo, Rochester, Syracuse) and New Jersey (Camden, Elizabeth, Newark, Trenton) are prime examples. The district also includes the rural areas of Upstate New York, northern and southern New Jersey, and the central parts of Puerto Rico – areas where the population’s needs are quite different from those in the urban centers. By virtue of their design and eligibility criteria, the Bank’s affordable housing and community lending programs have a direct impact on very low- and low-income residents.
Below are highlights of efforts and achievements during 2018.
One consistent demonstration of the Bank’s commitment to diversity and inclusion is the process for identifying and selecting members of its Affordable Housing Advisory Council (“AHAC”).
The Community Investment Team (“Team”) sought to bolster the AHAC’s representation of housing issues on Long Island and southern New Jersey, as well as bringing in advocates for public housing and Habitat for Humanity. The outreach approach successfully generated over a dozen nominations, of which the Team interviewed five — all women.
For the Affordable Housing Program application round, the Bank added a scoring category to prioritize projects providing supportive housing to disabled populations. This followed extensive research and outreach with stakeholders during 2017. In the 2018 round, over one-third of applications requested points for this category, and approximately one-half of projects received a commitment are supporting households with special needs.
In its outreach and training efforts, the Bank is focused on increasing program participation and representation from groups that have not been included in the past in an explicit, affirmative way. Among the organizations with which the Bank conducted targeted efforts in 2018 were those in the area of Native American housing, housing for youth aging out of foster care, and industry groups representing minority- and women-owned businesses. These efforts and others are intensifying in 2019, and they are driving important decisions about the Bank’s programs.