diff --git a/NEWS b/NEWS
index a6504385..80d7f157 100644
--- a/NEWS
+++ b/NEWS
@@ -1,3 +1,7 @@
+1.3.5.dev0
+ * #153: Support for various Borg directory environment variables (BORG_CONFIG_DIR, BORG_CACHE_DIR,
+   etc.) via options in borgmatic's storage configuration.
+
 1.3.4
  * Part of #125: Color borgmatic (but not Borg) output when using an interactive terminal.
  * #166: Run tests for all installed versions of Python.
diff --git a/borgmatic/borg/environment.py b/borgmatic/borg/environment.py
index 0f717e75..2dde10cd 100644
--- a/borgmatic/borg/environment.py
+++ b/borgmatic/borg/environment.py
@@ -1,15 +1,19 @@
 import os
 
+OPTION_TO_ENVIRONMENT_VARIABLE = {
+    'borg_base_directory': 'BORG_BASE_DIR',
+    'borg_config_directory': 'BORG_CONFIG_DIR',
+    'borg_cache_directory': 'BORG_CACHE_DIR',
+    'borg_security_directory': 'BORG_SECURITY_DIR',
+    'borg_keys_directory': 'BORG_KEYS_DIR',
+    'encryption_passcommand': 'BORG_PASSCOMMAND',
+    'encryption_passphrase': 'BORG_PASSPHRASE',
+    'ssh_command': 'BORG_RSH',
+}
+
 
 def initialize(storage_config):
-    passcommand = storage_config.get('encryption_passcommand')
-    if passcommand:
-        os.environ['BORG_PASSCOMMAND'] = passcommand
-
-    passphrase = storage_config.get('encryption_passphrase')
-    if passphrase:
-        os.environ['BORG_PASSPHRASE'] = passphrase
-
-    ssh_command = storage_config.get('ssh_command')
-    if ssh_command:
-        os.environ['BORG_RSH'] = ssh_command
+    for option_name, environment_variable_name in OPTION_TO_ENVIRONMENT_VARIABLE.items():
+        value = storage_config.get(option_name)
+        if value:
+            os.environ[environment_variable_name] = value
diff --git a/borgmatic/config/schema.yaml b/borgmatic/config/schema.yaml
index ce34f2a7..198da492 100644
--- a/borgmatic/config/schema.yaml
+++ b/borgmatic/config/schema.yaml
@@ -168,6 +168,32 @@ map:
                     Command to use instead of "ssh". This can be used to specify ssh options.
                     Defaults to not set.
                 example: ssh -i /path/to/private/key
+            borg_base_directory:
+                type: scalar
+                desc: |
+                    Base path used for various Borg directories. Defaults to $HOME, ~$USER, or ~.
+                    See https://borgbackup.readthedocs.io/en/stable/usage/general.html#environment-variables for details.
+                example: /path/to/base
+            borg_config_directory:
+                type: scalar
+                desc: |
+                    Path for Borg configuration files. Defaults to $borg_base_directory/.config/borg
+                example: /path/to/base/config
+            borg_cache_directory:
+                type: scalar
+                desc: |
+                    Path for Borg cache files. Defaults to $borg_base_directory/.cache/borg
+                example: /path/to/base/cache
+            borg_security_directory:
+                type: scalar
+                desc: |
+                    Path for Borg security and encryption nonce files. Defaults to $borg_base_directory/.config/borg/security
+                example: /path/to/base/config/security
+            borg_keys_directory:
+                type: scalar
+                desc: |
+                    Path for Borg encryption key files. Defaults to $borg_base_directory/.config/borg/keys
+                example: /path/to/base/config/keys
             umask:
                 type: scalar
                 desc: Umask to be used for borg create. Defaults to 0077.
diff --git a/setup.py b/setup.py
index ac359ba0..c3696230 100644
--- a/setup.py
+++ b/setup.py
@@ -1,6 +1,6 @@
 from setuptools import find_packages, setup
 
-VERSION = '1.3.4'
+VERSION = '1.3.5.dev0'
 
 
 setup(
diff --git a/tests/unit/borg/test_environment.py b/tests/unit/borg/test_environment.py
index 67653b32..9fa25b19 100644
--- a/tests/unit/borg/test_environment.py
+++ b/tests/unit/borg/test_environment.py
@@ -42,8 +42,7 @@ def test_initialize_without_configuration_should_not_set_environment():
     try:
         os.environ = {}
         module.initialize({})
-        assert os.environ.get('BORG_PASSCOMMAND') is None
-        assert os.environ.get('BORG_PASSPHRASE') is None
-        assert os.environ.get('BORG_RSH') is None
+
+        assert sum(1 for key in os.environ.keys() if key.startswith('BORG_')) == 0
     finally:
         os.environ = orig_environ