2022 Stakeholder
Sustainability Report
Empowering transparent
and efficient markets

Table of Contents

Table ofContents

03

A Message fromRob Fauber,President & CEO

17

61

BetterBusiness

BetterSolutions|

2

ESG and Climate Capabilities

04

2022 Sustainability
Highlights

05

About
Moody’s

Stakeholder Sustainability Microsite

32
Corporate GovernanceBusiness Ethics andProfessional Integrity

BetterLives

69

Diversity, Equity and Inclusion

Appendix

Moody’s at a Glance

Risk Assessment andManagement

Employee Attraction andEngagement

Metric Summary

About This Report

ClimateEmployee Health and Well-being

Framework Index

Our Commitment
to Sustainability

Cybersecurity and Data Privacy

Learning and Development

Glossary

Responsible Sourcing

Community Impact

Additional Resources

This is Moody’s 2022 Stakeholder Sustainability Report, which covers the period from January 1 to December 31, 2022, except as noted otherwise. This report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core option, Value Reporting
Foundation’s Sustainability Accounting Standards Board (SASB) Standard for Professional and Commercial Services, and the World Economic Forum (WEF) International Business Council’s Stakeholder Capitalism Metrics. Like the Moody’s Annual Report, much of thisdocument describes matters relating to Moody’s Corporation and its consolidated subsidiaries. When referring to “we” or “Moody’s,” except where otherwise noted, this report refers to Moody’s Corporation and its consolidated subsidiaries. Specific references to “Moody’s
Investors Service” and “Moody’s Analytics” are examples of instances where the coverage diverges. In addition: (i) references to “the Board” refer to the Moody’s Corporation Board of Directors, (ii) information and descriptions regarding Executive Compensation and Corporate
Governance, like in the 2023 Proxy Statement, refer to Moody’s Corporation and its executive officers, and (iii) information and descriptions relating to Business Ethics and Professional Integrity, Risk Assessment and Management, Climate, Responsible Sourcing, Cybersecurity &Data Privacy, Learning and Development, Diversity, Equity & Inclusion, Employee Attraction and Engagement, Employee Health & Well-being, Community Impact, ESG and Climate Capabilities, as well as our Sustainability Goals, are for Moody’s Corporation and its consolidated
subsidiaries, except where otherwise noted.

2022 TCFD Report

All references to dollars are to U.S. dollars, unless otherwise stated, and “tonnes” refers to metric tons. Certain statements in this report are aspirational or otherwise forward-looking, and company goals are not guarantees or promises that all goals will be met. Actual results
may differ materially from the company’s expectations or predictions expressed in this report. Statistics, metrics and other performance measurements included in this report are estimates and may be based on assumptions or developing standards. Consistent with our holistic
approach to sustainability, examples of products and services mentioned in this report include instances in which they have been provided for free, at a reduced cost and/or for a fee or cost. We welcome feedback and questions about this report. Please email us your queries atsustainability@moodys.com.

President & CEO Letter|

3

A Message from Rob Fauber, President & CEO
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESBETTER
SOLUTIONSAPPENDIX

Since we issued our last report, the world
has continued to experience a rapid rate ofchange with exponential risk. This backdrop
has caused our customers to seek our
guidance to help them navigate an
uncertain landscape with increasinglyinterconnected risks.
We believe our commitment to supporting sustainable
and inclusive economies and communities is more
important now than ever. In fact, responsible decisionmaking is part of the fabric of our Company andsustainability goals are embedded as core objectives inour strategic roadmap. For a knowledge company like
Moody’s, sustainability is made possible by our people.
Together, we’re adapting to meet the evolving needsof our customers, while also helping more companies
assess a range of risks. Our sustainability commitment
also extends to our workplace, where we continue tofocus on making Moody’s a place where people wantto come and stay.
There are several achievements from 2022 that wecan be proud of: We were one of the first companies tohave our near- and long-term net-zero climate targets
validated by the Science Based Targets initiative.
Through our role as a founding member of the Net ZeroFinancial Services Provider Alliance and our membershipof the Taskforce on Nature-related Financial Disclosures,
we also played a key role in helping shape industrywide
sustainability initiatives and reporting standards.

Despite these very important steps forward, we know
there is still work to be done. That’s why we are focusedon further reducing energy consumption and greenhousegas emissions across our operations and value chain.
This includes having nearly half of our current suppliers
globally implement science-based climate targets. We
also recently refreshed our materiality assessment sothat our sustainability strategy continues to be alignedwith our stakeholders’ priorities. Additionally, we arebringing together our broad firmographic, weather, and
ESG datasets to help insurers and banks better identify,
measure and manage sustainability, physical andtransition risks.

“Together, we’re adapting to meet the evolving
needs of our customers, while also helping morecompanies assess a range of risks.”
Importantly, we are deeply invested in fostering a
supportive and diverse workforce, while also advancing
more equitable economies and communities. This
year, we rolled out several new employee training anddevelopment programs, which focus on topics suchas sustainability and leadership, to help empower
our employees pursue their career paths. We also
implemented an enhanced approach to our community
engagement work that draws on our people, solutions
and capital to support communities around the world.
We were honored to be a founding member of the U.S.
Economic Opportunity Coalition (EOC), which

is focused on aligning public and private investments toaccelerate inclusive, sustainable economic growth. The
EOC’s strategic objective aligns well with our Creating
Opportunities for Racial Equity (CORE) program, whichleverages our expertise and capabilities to support
the growth of Community Development Financial
Institutions and Minority Depository Institutions
which play a vital role in our economy.

to realize a sustainable future – we have confidence inwhat we as a company are able to accomplish because
we do it together.

Moody’s achievements are the result of the hard work,
collaboration and innovation of my colleagues acrossthe company. While we know there’s more work to do

ROB FAUBER

Thank you to our customers and stakeholders forthe trust you place in Moody’s. We look forward toadvancing more of this important work in 2023 as we
continue delivering integrated perspectives on risk.

President and CEO, Moody’s Corporation

2022 Sustainability Highlights|

42022 Sustainability Highlights
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESBETTER
SOLUTIONSAPPENDIX

Better BusinessWe accelerated our work to embedprincipled, sustainable decision-making
into our operations and value chain by:» Becoming one of the first companies
to have our near- and long-term
net-zero climate targets validated by
the Science Based Targets initiative.

49%of suppliers by spend
have science-basedtargets» Increasing the share of our suppliers by spend who have science-basedtargets to 49%, exceeding our internal annual target.
» Making sustainability one of the core Strategic and Operational
compensation metrics for all applicable employees.
» Launching our cybersecurity online learning program, CybSafe, to educate
our employees on leading cyber hygiene practices.
» Publishing our Global Tax Policy that aligns our tax practices with oursustainability framework.

Employee-led giving includes grants paid from Moody’s Foundation toward the Matching Gifts and Dollars forDoers programs.
2
Approximate ESG & Climate revenue from Moody’s Investors Service and Moody’s Analytics as ofDecember 31, 2022.
1

Better Lives
We fostered a nurturing and inclusive
culture in our workplace and supported
our communities by:$11.5
MILLION» Progressing on our customer-focusedin treasury deposits
diversity, equity and inclusion
into Black-owned banks
initiative, Creating Opportunities for
Racial Equity (CORE), by joining the
Economic Opportunity Coalition, and depositing $1.5 million of treasury
deposits into Black-owned banks in addition to $10 million in 2021.

Better Solutions
We continue to provide trusted
perspectives that inform a clear andholistic understanding of risk by:$190
MILLION» Embedding environmental, social
in ESG andand governance (ESG) and climate
Climate revenue
considerations into our analytics,
workflow solutions and research, andincreasing transparency on how ESG factors affect credit ratings.

» Evolving our global employee well-being approach to place a greater
emphasis on holistic wellness.

» Launching our new ESG Insurance Underwriting Solution, which integrates
indicators and scores to help commercial property and casualty insurers
operationalize ESG risk assessment.

» Expanding our learning and development offerings by launching
Moody’s University, offering over 50,000 accessible learning materials
for our employees.

» Expanding our Issuer Profile Scores (IPS) and Credit Impact Scores (CIS)
to cover more than 10,000 governments, financial institutions andcorporations across sectors globally.

» Engaging our communities through our employees’ contribution of over
14,000 volunteer hours and more than $7 million in Moody’s Foundation
grants, corporate charitable contributions, value of volunteer hours andemployee-led giving.1» Joining the Climate Data Steering Committee to help make climatetransition-related data freely available in a single place for the first time.

About Moody’s

Better Moody’s
Lives
About
Moody’s at a Glance
About This Report
Our Commitment to Sustainability|

5

Moody’s at a Glance|

6

Moody’s at a Glance
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
Moody’s at a Glance
About This Report
Our Commitment to
Sustainability

BETTER
BUSINESS

WHO WE ARE

WHAT WE DO

WHAT WE BELIEVE

Moody’s (NYSE: MCO) is a global integrated risk
assessment firm that empowers organizations to identify,
manage and measure risk and unlock opportunity.

Our products and solutions help our customers to better
understand the risk of doing business with others. Our
two primary business segments include:As financial markets become more sophisticated andinterconnected, we believe that greater transparency,
credible insights and fair access to information open thedoor to shared progress.

» Moody’s Investors Service (MIS) provides investors
with a comprehensive view of global debt markets
through credit ratings and research. MIS’s trusted
insights help equip decision-makers with informationthat will assist them in navigating turmoil andmarket volatility.

Our values guide our progress in a complex andevolving environment. In all we do, we aim to act in a
principled, inclusive, collaborative, forward-thinking andrigorous manner. We believe that quality informationand financial knowledge is empowering and that ourcore values contribute to better decision-making that
promotes growth, sustainability and transparency.

With over 14,000 employees and operations in morethan 40 countries, we combine global perspective withlocal expertise and over a century of experience infinancial markets. We are also enhancing our existingreach across Latin America, Asia-Pacific (APAC), Europe,
the Middle East and Africa (EMEA) by further partneringwith affiliates and launching new platforms.

BETTERLIVESBETTER
SOLUTIONSAPPENDIX

51%

2022
REVENUE» Moody’s Analytics (MA) provides data, analytics
and insights to equip leaders of financial, nonfinancial
and government organizations with effective tools
to understand a range of risks to make better, faster
decisions. MA uses analytic models, industry insights,
software tools and proprietary data assets to allow
companies to inform and perform critical businessactivities. Customers make better decisions about risk
and opportunities by using MA’s integrated, efficientapproach to aggregating, broadening and deepening
available data, research and analytical tools andsoftware solutions.

PRINCIPLED

INCLUSIVECOLLABORATIVE

49%
49%

FORWARD-THINKINGRIGOROUS
MA

MIS

Facts and figures$5.5 BILLION
FY 2022 REVENUE$5.5 EMPLOYEESBILLION
14,000+FY 2022 REVENUE
100+ YEARS
40+ COUNTRIESAbout This Report|

About This ReportA MESSAGEFROM OURPRESIDENT& CEO

Our third Stakeholder Sustainability Report details our progress toward incorporating
sustainability into our operations and value chain, including our products and services.

2022
SUSTAINABILITYHIGHLIGHTS

For the purposes of this report, “sustainability”
encompasses our ability to manage key risks andopportunities while also positively impacting our people,
society and the financial markets. As such, this reportcovers everything from our corporate Decarbonization
Plan to the protection of our customers’ data and ourdiversity, equity and inclusion efforts, as well as thecontinued integration of ESG considerations into our
products and solutions. These strategies and selectinitiatives from 2022 are highlighted in three main
sections, each focused on a different aspect of ourglobal community: Better Business, Better Lives andBetter Solutions.

ABOUT
MOODY’S
Moody’s at a Glance
About This Report
Our Commitment to
Sustainability

BETTER
BUSINESSBETTERLIVESBETTER
SOLUTIONSThe contents of this report are informed by anindependent, comprehensive nonfinancial materiality
assessment, which was refreshed in 2022. We support
global efforts toward more consistent and comparable
disclosures, and our reporting is in line with globally
recognized and relevant ESG reporting standards andframeworks, including the Sustainability AccountingStandards Board (SASB), the updated 2021 Global
Reporting Initiative Standards (GRI) and the World
Economic Forum’s (WEF) International BusinessCouncil’s Stakeholder Capitalism Metrics. For our
2022 Framework Index, please see the Appendix.
The metrics in this report cover calendar year 2022,
unless stated otherwise, with qualitative discussions
also representing early 2023 and future outlooks.

SUPPORTING MATERIALS
Our annual Sustainability Report complements and expands upon the information found in
our financial and additional nonfinancial reporting materials. These materials are referenced
throughout the report and include:

2023

2023

2022

2022

Stakeholder
Sustainability
Microsite

Proxy Statement

TCFD

TCFD Report

APPENDIX

Additional Resources
Includes a comprehensive list of
supplementary information

Form 10-K

7

Our Commitment to Sustainability|

8

Our Commitment to Sustainability
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
Moody’s at a Glance
About This Report
Our Commitment to
Sustainability

BETTER
BUSINESSBETTERLIVESBETTER
SOLUTIONSAPPENDIX

Environmental, Social and Governance(ESG) factors have always been inputs
to financial risk. At Moody’s, we seek toempower transparent and efficient markets
by helping decision-makers decode theseand other risks.
This effort begins by putting sustainable decisionmaking, responsibility and inclusivity at the centerof our operations and across our interactions withstakeholders. For our customers, we provide accessto clear and relevant ESG data and analysis that
capital market participants can integrate into their risk
evaluation, capital allocation and long-term planning.
The rigor and objectivity we bring to our analysis helps toestablish clearer industrywide sustainability standards,
as well as more transparent and efficient markets.

Better Business

Better Lives

Better Solutions

We work to embed principled, sustainable decisionmaking into our operations and value chain.

We strive to foster a nurturing and inclusive culture thatprovides equitable opportunities for the development
and advancement of our people and communities.

We provide trusted perspectives that inform a clear
and holistic understanding of risk, including ESG andclimate considerations.

More on page 32

More on page 61

More on page 17

NOTABLE AWARDSBest ESG Reporting(large cap), IR Magazine

Menopause Friendly
Workplace, accreditedby the independent
organization Henpicked

ESG Data Provider of theYear – Europe, Environmental
Finance Sustainable
Investment Awards 2022

America’s Most JUST
100 Company

Bloomberg Gender
Equality Index

ESG Data Vendor of theYear, Asia Risk Awards 2022

Net Zero Transition Award,
Reuters Responsible BusinessAwards 2022*

Best Place to Work for
Disability Inclusion, Disability
Equality Index 2022

Best ESG Data Providerof the Year, Waters
Rankings 2022

CDP A List for Climate
Action and CDP Supplier
Engagement Leader for third
consecutive year

Certified as a Great Place
to Work® (GPTW) in the
U.S. and India

ESG Category Winner,
Chartis RiskTech100® 2023

OUR SUSTAINABILITY STRATEGY
To successfully and responsibly achieve our businessmission, we continually seek to build a better businessacross our operations and value chain, support better
lives for our people and communities, and deliver better
solutions for our customers. This framework connects
our sustainability strategy to our business purpose andleverages our expertise, resources and values to makea measurable and positive impact. It is based on our
nonfinancial material topics and guided by the United
Nations Sustainable Development Goals (SDGs).

For a list of all of our awards and rankings, please see https://awards.moodys.io/.

* Icon is not an actual logo.

Our Commitment to Sustainability|

9

RECENT SUSTAINABILITY MILESTONESA MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
Moody’s at a Glance
About This Report
Our Commitment to
Sustainability

BETTER
BUSINESSBETTERLIVESBETTER
SOLUTIONS

2019

2020

2021

2022

» Joined the U.N. Global Compact, including» Set science-based targets for reducing» Published first Stakeholder Sustainability» Refreshed our nonfinancial

becoming a founding member of its CFO
Taskforce for the SDGs and signing its Business
Ambition for 1.5°C pledge.
» Became a signatory of the Principles for

Responsible Investment.
» Acquired majority stake in V.E, global provider of

ESG research, and in Four Twenty Seven, leading
provider of climate risk tools.

greenhouse gas (GHG) emissions, publishedDecarbonization Plan and joined the Say on
Climate campaign.
» Received an “A” score from CDP on climate

action for the first time.
» Committed $1 million to equal justice andReport and launched sustainability website.
» Published inaugural diversity, equity and» Published our Political Engagement & Public

inclusion (DE&I) Report and establishedtangible commitments to advance DE&I.

Policy Statement and our first U.S. Political
Engagement Report.

» Implemented a new software to streamline» Became one of the first companies to have its

our global pay equity analysis.

support of the Black community, and committed
to achieve Management Leadership for
Tomorrow’s Black Equity at Work Certification.

» Committed to achieve net-zero across our» Launched a comprehensive ESG Solutions unit to» Became a founding member of the Net Zeroserve the growing demand for ESG insights.

operations and value chain by 2040.
Financial Services Provider Alliance.
» Joined the Taskforce on Nature-related Financial

Disclosures (TNFD).
» Updated our Environmental Sustainability Policy.
» Published our EEO-1 data publicly for the

first time.
APPENDIX

materiality assessment.

» Acquired RMS, a leader in climate and natural

disaster risk modeling and analytics.

near- and long-term net-zero targets validated
by the Science Based Targets initiative (SBTi).
» Became a founding member of the U.S. Economic

Opportunity Coalition.
» Formally launched our global employee learning

platform, Moody’s University.
» Launched our ESG Insurance Underwriting Solution.
» Requested feedback from market participants

on proposed framework for providing Net-Zero
Assessments for nonfinancial corporates.
» Published our Global Tax Policy.
» Joined the United Nations Global Compact’s

Early Adopters Program and were one of thefirst companies to disclose using the enhanced
Communication on Progress (CoP).
» Published a New Assessment Frameworkfor providing second-party opinions onsustainable debt.
» Revised our Community Impact frameworkthat increases the impact and clarity of ourcommunity efforts.

Our Commitment to Sustainability

CONTRIBUTING TO THE
UNITED NATIONS SDGs
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
Moody’s at a Glance
About This Report
Our Commitment to
Sustainability

BETTER
BUSINESSBETTERLIVESBETTER
SOLUTIONSAPPENDIX

While the United Nations SDGs are
predominantly a call to action for countries,
we believe significant progress will require
collaboration and collective action across public
and private sectors. That’s why we regularly
assess opportunities across our business to alignour operations, initiatives and partnerships
with the SDGs. These efforts intersect with
our sustainability strategy to build a betterbusiness, support better lives and deliver
better solutions. With these outcomes inmind, we have identified the following fiveareas where we believe there is opportunity
to make the greatest impact given the natureof our business.

In 2022, we joined the United
Nations Global Compact’s Early
Adopters Program and were
one of the first companies todisclose using the enhanced
Communication on Progressquestionnaire. For more
information, see our recent
progress report.

SDG

SD
equalityS D G 9:Industry,

Achieve genderequality andempower all
women and girls

Build resilient
infrastructure,promote inclusive
and sustainableindustrializationand foster
innovation|

10

RELEVANCEOUR CONTRIBUTION

HOW WE MAKE PROGRESS

We are committed to achieving gender
parity by implementing development
programs and working toward
more equal representation of andcompensation for women across
our workforce.

» Expanded our paid return-to-work program, RE-IGNITE, to Canada and India for» Responsible sourcing» Diversity, equity and inclusion» Employee attraction andWe support small- and medium-sizedenterprises by helping them scale theirbusiness and increase their accessto financial services through our
empowerment programs.

» Joined the Economic Opportunity Coalition to accelerate our roadmap for our

mid- to senior-level individuals who are restarting their careers after at least a
two-year hiatus.

» Increased our diverse Tier I supplier spend by 44%.
» Provided career development programs for female employees, including TIDE

(Talent Aspirations & Alignment, Insights, Development & Career Planning andExposure & Expansion) and RISE.

customer-focused DE&I initiative, Creating Opportunities for Racial Equity (CORE),
and promote economic opportunity in underserved communities.

» Empowered small businesses in Latin America and Africa through our partnershipengagement» Community impact» Diversity, equity and inclusion» Community impact» ESG and climate capabilities

with Village Capital by providing select startups with the financial tools andknowledge to access capital.

» Expanded the coverage of Moody’s Local credit rating agencies, providing countryspecific credit ratings and methodologies for capital markets in Latin America.

Reduce inequality
within and among
countries

inequalities

Our efforts to reduce inequality
include offering inclusive workplace
programs and promoting greater
economic opportunity in thecommunities where we operate.

» As of December 31, deposited $11.5 million of treasury deposits into Black-ownedbanks as part of our work to promote more inclusive financial markets
through CORE.

» Diversity, equity and inclusion» Community impact» Propelled diverse talent forward through our dedicated DE&I programs andinitiatives, such as our business resource group (BRG)-led mentorship programs
and TIDE.

» Partnered with organizations, like Village Capital and Fundacion MarViva , thatwork to address economic access and community resiliency issues that affectpeople in emerging markets at disproportionate rates.

Take urgent action
to combat climatechange and its
impacts

Strengthen
the means ofPartnerships implementation
for the goals and revitalize theglobal partnershipfor sustainable
development

We are advancing our climate action
by setting science-based targets forour operations and supply chain, as
well as bringing innovative solutions
to market that help our customers
identify and understand climaterelated risk.

» Set a long-term net-zero science-based target of 90% reduction of Scope 1, 2Partnerships with like-mindedorganizations and campaigns drive
impact across our sustainability
pillars, amplify our reach andprovide opportunities for enhanced
stakeholder engagement.

» Continued our partnerships with like-minded organizations and campaigns driving

and 3 GHG emissions.

» Progressed on our near-term science-based targets, increasing the share of our
suppliers by spend who have their own science-based targets to 49%.

» Climate» Responsible sourcing» ESG and climate capabilities» Expanded our climate catastrophe modeling capabilities through the integrationof RMS to build an even more holistic picture of how catastrophe risks interact
with economic risks, financial performance and credit worthiness.

impact across our sustainability pillars, including the U.N. Global Compact,
Glasgow Financial Alliance on Net Zero (GFANZ), Task Force on Climate-related
Financial Disclosures (TCFD), TNFD and Accounting for Sustainability (A4S).

» Joined climate-focused groups advancing industry net-zero ambitions, including
the SBTi Financial Institutions Net-Zero Expert Advisory group and the Climate
Data Steering Committee.

» Stakeholder engagement» Climate» Diversity, equity and inclusion» Community impact

Our Commitment to Sustainability

IDENTIFYING AND PRIORITIZINGOUR MATERIAL ESG TOPICSA MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
Moody’s at a Glance
About This Report
Our Commitment to
Sustainability

BETTER
BUSINESSBETTERLIVES

Our sustainability strategy is grounded in theassessment of the material nonfinancial topics most
relevant to our internal and external stakeholders andmost influential to our business.
In 2022, we refreshed our materiality assessment, which
was first conducted in 2020, to refine and optimize oursustainability strategy. The updated assessment includes
a revised topic list to account for emerging sustainability
trends, improved topic definitions to enhance clarity
and an analysis of impact of each topic on our value
chain, accounting for both upstream and downstream
factors. Overall, the outcome of this assessment
validated our preliminary assumptions and the general
topic prioritization from the 2020 assessment, includingthat stakeholders placed a significant emphasis on
our business imperatives, like Business Ethics andProfessional Integrity and Risk Assessment andManagement. Throughout this report, we discuss ourongoing progress for each of our materials topics.
The inputs for the refreshed assessment included:

BETTER
SOLUTIONS» Research on peers and emerging industry trends
since 2020.

APPENDIX» Analysis of ESG ratings reports and internationalsustainability frameworks (e.g., SASB, GRI, TCFD,
WEF and SDGs).
» Interviews and surveys collected from over 2,000
internal and external stakeholders, including membersof our Board of Directors, Executive Leadership
Team members and the global workforce, andselect customers, stockholders, suppliers andpolicy influencers.

|

11Our Commitment to Sustainability

Better Business
A MESSAGEFROM OURPRESIDENT
& CEO

TOPIC

DEFINITIONVALUE CHAIN IMPACT1

Board Composition

Maintaining a board composed of members from diverse professional
backgrounds, genders, identities and ethnicities, with varied tenures,
as well as directors who possess highly relevant and complementaryskill sets, including the ability to oversee ESG topics.

RELATED SECTIONS IN REPORT» Corporate governance
M

2022
SUSTAINABILITYHIGHLIGHTS

Business Ethics
and Professional
Integrity

Operating honestly, fairly, with transparency and in accordancewith the law, and expecting compliance with corresponding ethicalstandards as outlined for employees, suppliers and contractors.

» Business ethics and professional integrity» Responsible sourcing

ABOUT
MOODY’S

ClimateAnalyzing climate risk exposure and assessing business resilience
to anticipate, prepare for and respond to climate events and the
low-carbon transition. Reducing energy use and GHG emissions
that contribute to climate change throughout our entire value
chain (e.g., operations, suppliers, products and services).

» Climate» Responsible sourcing» ESG and climate capabilities

Cybersecurity
and Data Privacy

Maintaining clear policies and practices to mitigate and respond torisks from data collection, storage and usage, and safeguarding thefinancial and personal data of stakeholders.

» Cybersecurity and data privacy

Executive
Compensation

Providing fair and transparent compensation of executives.

» Corporate governance

Human Rights

Committing to respect human rights and understanding our
responsibility to help prevent and mitigate human rights abuses.

» Business ethics and professional integrity» Responsible sourcing

Nature andBiodiversity

Managing recycling efforts, waste, water consumption and othernature-related topics, such as forestation, in our operations.

» Climate

Risk Assessment
and Management

Identifying, assessing, monitoring and managing risks alignedwith the business mission, vision and strategy to make responsible
decisions and serve the long-term interests of all our stakeholders.

» Risk assessment and management» Responsible sourcing

Moody’s at a Glance
About This Report
Our Commitment to
Sustainability

BETTER
BUSINESSBETTERLIVESBETTER
SOLUTIONSAPPENDIX

1

Where along our value chain a material topic is deemed to have the greatest importance to stakeholders and influence on business success.

KEY:

Moody’s

Upstream: refers to relevance to Moody’s suppliers

Downstream: refers to relevance to Moody’s customers and communities|

12

Our Commitment to Sustainability

Better Lives
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
Moody’s at a Glance
About This Report
Our Commitment to
Sustainability

BETTER
BUSINESSBETTERLIVESBETTER
SOLUTIONSTOPIC

DEFINITIONVALUE CHAIN IMPACT1

Diversity, Equity
and Inclusion

Enhancing efforts to promote equal opportunities and representationof diverse backgrounds, races, ethnicities, genders and identities
within the workforce and workplace, as well as in the broader
marketplace. This includes equitable compensation for employees
at all levels, as well as efforts to integrate diversity into Moody’s
suppliers, customer base and community engagement programs.

» Diversity, equity and inclusion» Responsible sourcing

Employee
Attraction andEngagement

Adopting a holistic approach to the employee value proposition fromrecruitment to engagement, including compensation and benefits,
to create a positive work environment so people want to join, andchoose to stay at, Moody’s.

» Diversity, equity and inclusion» Employee attraction and engagement

Employee Healthand Well-being

Promoting a healthy and safe workplace through companywide
policies and practices that help contribute to employees’ physical,
mental and financial well-being.

» Employee health and well-being

Learning andDevelopment

Equipping employees with training and education opportunities toenhance business-specific, leadership and core capability skills anddevelop their careers.

» Learning and development» Diversity, equity and inclusion

Philanthropy
and Employee
Volunteerism

Contributing to socioeconomic development and environmental
causes through grants, in-kind gifts, volunteer time and related
charitable activities.

» Community impact

Support for Smalland Medium
Enterprises

Maximizing support and financial inclusion for small and medium
enterprises (SMEs).

» Diversity, equity and inclusion» Communities» Responsible sourcing» ESG and climate capabilities

APPENDIX

1

RELATED SECTIONS IN REPORT

Where along our value chain a material topic is deemed to have the greatest importance to stakeholders and influence on business success.

KEY:

Moody’s

Upstream: refers to relevance to Moody’s suppliers

Downstream: refers to relevance to Moody’s customers and communities|

13

Our Commitment to Sustainability

Better Solutions
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTS
1

TOPIC

DEFINITIONVALUE CHAIN IMPACT1

RELATED SECTIONS IN REPORTESG Data
Availability
and Integrity

Innovating ways to make ESG data available and transparent tostakeholders and contributing to greater standardization, while also
working to maintain data credibility.

» ESG and climate capabilities

ESG Solutions andSustainable Finance

Responding to market needs of ESG information, products andservices and enhancing the systematic, transparent integration of
ESG considerations in Moody’s offerings.

» ESG and climate capabilities

Where along our value chain a material topic is deemed to have the greatest importance to stakeholders and influence on business success.

ABOUT
MOODY’S
Moody’s at a Glance
About This Report
Our Commitment to
Sustainability

BETTER
BUSINESSBETTERLIVESBETTER
SOLUTIONSAPPENDIX

KEY:

Moody’s

Upstream: refers to relevance to Moody’s suppliers

Downstream: refers to relevance to Moody’s customers and communities|

14

Our Commitment to Sustainability

A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
Moody’s at a Glance
About This Report
Our Commitment to
Sustainability

BETTER
BUSINESSBETTERLIVESBETTER
SOLUTIONSAPPENDIXSTAKEHOLDER ENGAGEMENT
Our ability to execute on our sustainability
strategy in a significant way requires input
from all our stakeholders. We regularly
engage with a diverse set of internaland external stakeholders, including
customers, employees, investors, suppliers,
communities, government regulators andpolicy influencers. Feedback from theseengagements helps us evolve and advanceour sustainability strategy.

Our external initiatives
External initiatives are one of the critical avenues throughwhich we engage our stakeholders. We incorporate bestpractices and guidance from the following organizations:» Accounting for Sustainability» Business Roundtable» Ceres Company and Investor Network» Congressional Black Caucus Foundation» Congressional Hispanic Caucus Institute» Economic Opportunity Coalition

We engage with these groups to keep them informedof our efforts through a variety of channels, including
in-person or virtual meetings, internal employee
engagement (such as well-being surveys and teamconversations), customer satisfaction surveys, social
media accounts and community events.

» Glasgow Financial Alliance for Net Zero
» Global Reporting Initiative» Human Rights Campaign» International Organization of Securities Commissions» International Sustainability Standards Board» Principles for Responsible Investment» Science Based Targets initiative» Task Force on Climate-related Financial Disclosures» Taskforce on Nature-related Financial Disclosures» U.N. Global Compact|

15

Our Commitment to Sustainability|

16

Below are select examples of how we interacted with our stakeholders and addressed their feedback in 2022.

Customers

Investors

Communities

Government and regulators

A MESSAGEFROM OURPRESIDENT& CEO» Continued to invest in our ESG and Climate
capabilities by enhancing and launching a wide
range of ESG and Climate solutions.

» Contributed more than 14,000 employee volunteer
hours to organizations and initiatives in Moody’s
local communities.

For more information on our engagement withgovernments and regulators, please see Engaging on
Public Policy.

2022
SUSTAINABILITYHIGHLIGHTS» Accelerated the roadmap for our CORE initiative byscaling our partnerships and depositing $1.5 million
into Black-owned banks in addition to $10 million
in 2021.

» Held in-person, virtual and hybrid meetings withinvestors on ESG and sustainability, including ourenvironmental commitments and disclosure of
DE&I data.

ABOUT
MOODY’S
Moody’s at a Glance
About This Report
Our Commitment to
Sustainability

BETTER
BUSINESSBETTERLIVESBETTER
SOLUTIONSAPPENDIX» Expanded Moody’s Local coverage of credit
ratings and methodologies for capital markets
in Latin America.

» Maintained and enhanced sustainability and ESG
content in our investor relations materials, including
our website, disclosures and presentations. Everyquarterly investor presentation now includes
information on our efforts in sustainability.
For more, see Moody’s Investor Relations website.

» Actively collected, incorporated and responded tocustomer feedback about our solutions throughour customer service, customer success andgo-to-market organizations.1» Engaged nearly 500 of our top suppliers and requested
they participate in the annual CDP disclosure.

Employees» Increased percentage of suppliers by spend who havescience-based targets to 49%.

» Rolled out a training series on sustainability and
ESG to promote a deeper understanding of oursustainability efforts among our employees.
» Refined our approach to our Business Engagement
Survey, reducing the number of survey questions
and focusing on key drivers of engagement.

Suppliers» Continued to encourage diverse supplier spend
through our Supplier Diversity Program and by
partnering with relevant organizations to provide
mentorship to diversely-owned businesses.

» Launched three new BRGs dedicated to serving
Asian, Black and Latino/Latina communities.
» Piloted our Stay Conversations program to better
understand employee aspirations and inform ouremployee development and engagement efforts.
» Evolved our global well-being approach to place agreater emphasis on holistic wellness.
1

Moody’s has a process and policy in place to handle complaints from customers and other external parties, and we implement corrective action plans as needed.

» Awarded over $4 million in Moody’s
Foundation grants.
» Became a lead sponsor for ALPFA, the Associationof Latino Professionals for America, to support thedevelopment of Latino/Latina leaders.
» Joined the Economic Opportunity Coalition,
progressing on our customer-focused DE&I
initiative, CORE.

Policy influencers» Contributed to the publication of climate-related
reports and white papers, including the Climate Data
Steering Committee’s recommendations on opendata utility to make centralized climate transitionrelated data publicly available for the first time.
» Joined the SBTi Financial Institutions Net-Zero Expert
Advisory group, which is developing the first global
standard for financial sector net-zero targets.
» Participated in COP27 discussions on the challenges
faced by companies and investors in the adoption
and acceleration of net-zero targets.
» Advised on the definition of nature-related risk
metrics as a member of the TNFD.
» Piloted the use of SASB Standards XBRL
digital taxonomy.

“It is great to see continued interest
from organizations, such as Moody’s,that have piloted the use of the SASB
Standards XBRL digital taxonomy to help
make ESG information readily accessible
to investors and stakeholders, thereby
supporting the delivery of transparent
data worldwide.”
Madhu Mathew
Director of Technology, Head of Data Science &Digital Solutions, IFRS Foundation

Better Business

Lives
Better BusinessCorporate GovernanceBusiness Ethics and Professional Integrity
Risk Assessment and Management
ClimateCybersecurity and Data Privacy
Responsible Sourcing|

17Better Business|

18

Better Business
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESS
Corporate
GovernanceBusiness Ethics andProfessional Integrity

PROGRESSING ON OUR CLIMATEAND ENVIRONMENTAL AMBITIONS

We are working toward building a betterbusiness by embedding principled,sustainable decision-making into our
corporate behavior, operations andvalue chain.

We model proactive corporate climate andenvironmental sustainability action to reduce energy
use and greenhouse gas emissions that contribute toclimate change.

Our foundation of strong corporate governance,
including high standards for ethics and integrity andrigorous risk management, enables us to provide
independent, integrated risk management data andanalysis to our customers. We take action acrossour business to address critical issues that affect our
stakeholders, including climate change, cybersecurity
and data privacy and responsible sourcing.

Risk Assessment andManagement
ClimateCybersecurity andData Privacy
Responsible Sourcing

BETTERLIVESBETTER
SOLUTIONSAPPENDIXCOMMITTING TO STRONGCORPORATE GOVERNANCE
Guided by our values, our Executive Leadership Teamand the Board of Directors set the tone for how we
conduct our business and continually seek to identify
ways to further incorporate sustainability into ourbusiness strategy.

PRIORITIZING BUSINESS ETHICS
AND PROFESSIONAL INTEGRITY

STRENGTHENING CYBERSECURITY
AND DATA PRIVACY

We work to achieve the highest standard of
ethics and integrity in all our practices, including
our relationships with employees, suppliers andcontractors, as well as other stakeholders.

We are committed to continuously evolving ourrobust technology infrastructure and security-first
philosophy to protect against cyber threats andsafeguard the privacy and data of our stakeholders.

RIGOROUSLY ASSESSING AND
MANAGING RISKBUILDING A RESPONSIBLE
SUPPLY CHAIN

We approach our own risk management with thesame level of rigor we apply across our business toour products and services.

We seek to hold our suppliers to the same standards
as the rest of our organization and actively pursue
vendors that champion climate action, diversity andethical codes of conduct.

Corporate Governance|19

Corporate Governance
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESS
Corporate
GovernanceBusiness Ethics andProfessional Integrity
Risk Assessment andManagement
ClimateCybersecurity andData Privacy
Responsible Sourcing

BETTERLIVESBETTER
SOLUTIONSAPPENDIX

Strong leadership and governance start at the top of the organization. Our Board of Directors
sets high standards for our employees, officers and directors. The Board oversees Moody’s
management and overall strategy — including the advancement of our sustainability strategy.
The Board’s oversight extends throughout the year, as management continually adjusts its
approach in response to emerging sustainability-related risks and opportunities.

The Executive Leadership Team, which is composed of
the CEO and his direct reports, serves as the decisionmaking body for key strategic sustainability efforts,
with oversight from three committees of the Board of
Directors. These committees are:Our actions» Audit Committee: Oversees financial, risk,
accounting and other disclosures made in ourannual and quarterly reports related to sustainability
and supports the Board in its duties related
to the oversight of risk assessment and risk
management processes.

» The Board approved Global Tax Policy,
which aligns Moody’s tax practices
and strategies with the Stakeholder
Sustainability framework.

» Governance & Nominating Committee: Oversees
sustainability matters related to the business and tolong-term value creation and makes recommendations
to the Board regarding these issues.
» Compensation & Human Resources Committee:
Reviews introduction of sustainability-related
performance goals for determining compensationof all senior executives.
Senior Management, composed of the Executive
Leadership Team’s direct reports, is responsible for
identifying and implementing sustainability andenvironmental, social and governance (ESG)-relatedrisks and opportunities into their respective strategies.

BOARD OF DIRECTORSGOVERNANCE & NOMINATINGCOMMITTEE

AUDIT COMMITTEECHIEF FINANCIAL OFFICER

We continue to improve our corporate
governance to further integrate sustainability
into our business strategy. In 2022:» We more fully integrated sustainabilityrelated performance metrics into theStrategic and Operational compensation
metrics for all senior executives.

GENERAL COUNSELCHIEF PEOPLE OFFICERCHIEF DE&I OFFICER1CHIEF CORPORATE AFFAIRS OFFICER

HEAD OF COMMUNITY IMPACT

CHIEF RISK MANAGEMENT & AUDITEXECUTIVEPRESIDENT & CEO

MANAGING DIRECTOR OF GOVERNMENT& PUBLIC AFFAIRS AND HEAD OFSTAKEHOLDER SUSTAINABILITY

CHIEF STRATEGY OFFICERPRESIDENT OF MOODY’S ANALYTICS“The Board’s role is to oversee thesustainability, or long-term value
creation, of the company for the benefitof all of our stakeholders, including ourinvestors, employees, customers
and the communities in which
we operate.”

PRESIDENT OF MOODY’S INVESTORSSERVICECHIEF ADMINISTRATIVE OFFICER

Leslie F. Seidman
Member of Moody’s Board of Directors

COMPENSATION & HUMAN RESOURCESCOMMITTEE

1

Dual reporting line to the CEO and Chief People Officer.

GENERAL MANAGER OF MOODY’S RMS

Corporate Governance

DEEPENING BOARD EXPERTISE
AND EDUCATIONA MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESS
Corporate
GovernanceBusiness Ethics andProfessional Integrity
Risk Assessment andManagement
ClimateCybersecurity andData Privacy
Responsible Sourcing

BETTERLIVESBETTER
SOLUTIONSIn addition to extensive financial, strategic, legal
and governance, risk and international experience,
our Board of Directors is composed of individuals
with wide ranging experience in ESG, innovation,technology and cybersecurity. Leslie F. Seidman,
who has been a member of the Board since 2013,is certified in ESG oversight (GCB.D, 2021) andcybersecurity oversight (2018). Lloyd W. Howell
Jr., who joined the Board in 2021, brings a strong
background in information systems and cyber-related
matters as well.
The Board continues to enhance its collective
knowledge of sustainability topics through ongoingeducation. The Board and its committees receive
regular presentations from management onenvironmental and social issues such as climate;diversity, equity and inclusion; pay equity; andthe integration of ESG factors into our products
and solutions.
In order to perform risk oversight, the Board receives
presentations at each regularly scheduled meetingfrom the head of Enterprise Risk Management.
Additionally, the CEO updates the Board regularlyon the company’s progress with respect to the six
focus areas of its Strategic and Operational (S&O)
metrics, which includes the advancement ofcorporate sustainability.

APPENDIXPRIORITIZING STRONG BOARD COMPOSITION

9%18%
Racial / ethnic
diversity¹

73%
73%

Male

White

FemaleLatino / Latina

Bermudez

Esperdy

FauberForlenza

Financial
experience

X2

X2

X

X2

Strategicplanning/
critical thinking

X

X

X

X

Innovation &technology

X

Industryknowledge

X

Organizational
management
skillsHill

X

HowellMcDaniel

MinayaSeidman

Serafin

Van Saun

X2

X2

X2

X2

X

X2

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

Legal &
governance

X

X

X

X

X

Risk

X

X

X

X

X

International
experience2

As of April 1, 2023.
Directors who have been determined to be Audit Committee financial experts by the Board.

Black

Board experience and skills matrix1

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

ESG

1

We hold our executive leadership accountable for theachievement of our sustainability goals. In 2020, ourmanagement team introduced sustainability-related
performance metrics for determining compensationof certain senior executives, including the CFO. The
CFO has had his pay tied to the advancement of
the company’s sustainability programs, including
progress on our Decarbonization Plan and best-in-classsustainability-related disclosures and reporting, forseveral years.

For more information about the composition of our Board of Directors, see our 2023 Proxy Statement, page 4.

Genderdiversity¹

X

X

X

X

X

X

X

20

EMBEDDING SUSTAINABILITY
METRICS INTO EXECUTIVECOMPENSATION

All directors, with the exceptions of Robert Fauber and Raymond W. McDaniel, Jr., are independent under the
independence criteria defined in the New York Stock Exchange listing standards.

27%

|

X

X

X

X

X

X

X

X

X

X

X

X

In 2021, these efforts were expanded withsustainability-related performance metrics, including
preexisting diversity, equity and inclusion targets,being more fully integrated into the S&O metrics used
to determine annual cash incentive payments for all
senior executives. In 2022, sustainability became oneof the core S&O focus areas for all eligible employees.
Remuneration policies for our highest governancebody and senior executives can be found in our2023 Proxy Statement, pages 23-27, 47-71.
For more information on our policies regarding
corporate governance, see Additional Resources.

Business Ethics and Professional Integrity|

21

Business Ethics and Professional Integrity

1

A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S

Our commitment to operating in an ethicaland lawful manner, including helping
to protect human rights, serves as thefoundation for our relationships with
employees, customers and suppliers, aswell as the people in the countries andcommunities in which we operate.

BETTER
BUSINESSUPHOLDING OUR CODE OF
BUSINESS CONDUCTREINFORCING ANTI-CORRUPTION
AND ANTI-MONEY LAUNDERINGPROVIDING REPORTINGMECHANISMS

We require all employees and directors to abide by our
Code of Business Conduct, which outlines the principles
and policies they are expected to uphold to achieve thehighest standard of integrity and ethics in all businesspractices. The Code of Business Conduct is revised andrepublished at least every two years and is available in
11 languages. In addition, Moody’s Investors Service(MIS) has a Code of Professional Conduct that governs
its credit ratings activities.

Our employees receive training upon hiring and annually
thereafter on our Anti-Bribery and Anti-Corruption
Policy, which sets forth the expectation that employees
comply with all applicable anti-bribery and anticorruption laws. We have also developed additional
training on anti-bribery and anti-corruption for specificemployees whose roles are more likely to present
heightened bribery and corruption risk. Additionally,
we offer guidance through our internal Anti-Bribery
Resource Center. The anti-bribery and anti-corruption
program is periodically reviewed by our Internal Audit
department. For more information, see Moody’s
Anti-Bribery and Anti-Corruption Policy.

The Integrity Hotline, which allows employees,
suppliers and members of the public to report any
suspected wrongdoing anonymously, is staffed by athird party and is available at all times and in multiple
languages. Reports made via the Integrity Hotline areforwarded to our Legal and Compliance departments
for follow-up, and all reports of suspected policy
violations are promptly investigated and remediated.
In addition, the Compliance department reports on
concerns raised through the hotline to the Audit
Committee. We take appropriate disciplinary action,
up to and including termination of employment,
against those who violate the law, regulations,
our Code of Business Conduct or other company
policies. We prohibit, and do not tolerate, any formof retaliation against those who raise issues or reportconcerns in good faith.

All employees, including full-time and part-time
employees, must complete compliance and ethics
training as an integral part of their professional
development. Upon hiring and annually thereafter, ouremployees receive mandatory training on the Code ofBusiness Conduct and other company policies, which
set forth our expectation that employees comply withall applicable laws and address topics including healthand safety, human rights, sexual harassment anddiscrimination. Employees must certify annuallythat they have read and will abide by the Code ofBusiness Conduct.

Corporate
GovernanceBusiness Ethics andProfessional Integrity
Risk Assessment andManagement
ClimateCybersecurity andData Privacy
Responsible Sourcing

BETTERLIVESIn addition to complying with all relevant codes, laws
and regulations, employees are expected to display thehighest standards of professionalism and appropriate
judgment in their decision-making. Our performance
evaluations include criteria such as “Exhibits highest
standards of professionalism, ethics and credibility,”“Behaves responsibly and takes accountability foractions” and “Is transparent in words, actions
and intentions.”

BETTER
SOLUTIONSAPPENDIX

1

Refers to Moody’s Corporation and its wholly owned subsidiaries.

Any corruption incidents required to be reported in
Moody’s SEC filings would be reflected in such filings.
No such incidents were reported in SEC filings in thereporting period.
We comply with all applicable anti-money laundering(AML) laws and related Know Your Customer (KYC) and
Enhanced Due Diligence (EDD) requirements wherever
we operate. Although our business activities generally
do not expose us to the risk of being a conduit for money
laundering activity, in certain jurisdictions our role in
the financial transactions of others may subject ouractivity to locally applicable AML laws or regulations
and require the establishment of an AML program. In
such jurisdictions, we have implemented appropriate
AML policies and programs, including annual policy
certification for all applicable employees.

In addition, our employees have a number of otherchannels to report concerns, including via ourOpen Door Policy, or directly to the People Team,
Compliance or the Legal department.

Business Ethics and Professional Integrity

A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESS
Corporate
GovernanceBusiness Ethics andProfessional Integrity
Risk Assessment andManagement
ClimateCybersecurity andData Privacy
Responsible Sourcing

BETTERLIVESBETTER
SOLUTIONSAPPENDIXSUPPORTING HUMAN RIGHTSENGAGING ON PUBLIC POLICY

Our commitment to operating in an ethical andlawful manner includes protecting the basic dignity
and human rights of our employees and the peoplein our supply chain. Our Human Rights Statement
provides an overview of how we endeavor to meet our
responsibility with respect to human rights, in addition
to the principles and requirements within our Code ofBusiness Conduct. We also issue a Modern Slavery and
Human Trafficking Statement annually that sets out ourapproach to preventing human rights violations in our
workforce and supply chain.

We believe that greater transparency, more informed
decisions and equity around information access open
the door to shared progress. Consequently, public policy
is an integral part of our engagement strategy and core
to our business. We engage with policymakers andregulators globally on issues that are important to us andour stakeholders, providing insights to policymakers andregulators on a host of market issues, principally thoserelating to risks within capital markets, macroeconomics,
ESG and sustainable finance, digital assets, cybersecurity
and community development. Our lobbying positions
and advocacy for Moody’s support our purpose, policies
and positions.

In addition, our standard due diligence process forevery majority acquisition includes a human rights
risk assessment. For example, target companies must
confirm whether they comply with all applicableanti-slavery and human trafficking laws, and whether
they have procedures to assess their own suppliers,
subcontractors and other participants in their supply
chain for slavery and human trafficking risks. All target
companies’ customers and vendors are also subject tosanctions screens.
Internal and external stakeholders can anonymously
report suspected human rights wrongdoing via theIntegrity Hotline and other reporting mechanisms. For
more information, see Providing Reporting Mechanisms.

Our Political Engagement & Public Policy Statement
outlines our governance and approach to advocacy,
lobbying, political contributions and employees’
political activities. We do not maintain a political action
committee (PAC). We prohibit the use of corporate
funds to support any political candidates, politicalparties and committees (including super PACs), ballot
initiatives and section 527 entities, and to make politicalcontributions to 501(c)(4) organizations. We do not use
corporate funds for electioneering communications or
independent expenditures.

In the U.S., federal lobbying expenses are reported
in compliance with the U.S. Lobbying Disclosure Act.
In 2022, we reported $620,000 in annual lobbying
expenses at the federal level. The public filing canbe accessed here and here. In addition, we reported$286,000 in lobbying expenses at the state level in
the U.S.
In line with European law, Moody’s Shared Services U.K.
Ltd is registered on the EU’s transparency register and,for 2022, has reported €500,000– €599,000 in activities
related to engaging with EU institutions. The public
filing can be accessed here.

|

22

We are also a member of various interest groups andengage with think tanks globally. These organizations
provide venues for policy discussions and opportunities
for advocacy on common areas of interest, including
capital markets, macroeconomics, financial stability,
geopolitics, sustainability, credit rating agencies anddigital assets. Total fees paid to principal U.S. and EU
trade organizations for membership in 2022 wereapproximately $1,271,000. Based upon information
reported to us for 2022, the amount of our payments
to these organizations attributable to lobbying wasapproximately $273,000.
For more information on our policies regarding ethics
and integrity, see Additional Resources.

Risk Assessment and Management|

23

Risk Assessment and Management

1

A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESS
Corporate
GovernanceBusiness Ethics andProfessional Integrity
Risk Assessment andManagement
ClimateCybersecurity andData Privacy
Responsible Sourcing

BETTERLIVESBETTER
SOLUTIONSAPPENDIX

We strive to create confidence in thousandsof organizations worldwide through ourability to help others better understand,measure and manage risk. We work toapproach our own risk management withthe same level of rigor and continue tomature our risk management practices andcapabilities to better serve the long-term
interests of all of our stakeholders.

MANAGING ENTERPRISE RISKINCREASING RISK EDUCATION
AND AWARENESS

Our Board of Directors oversees management’s
implementation of policies and processes to manage
our Company’s exposure to risk. The Audit Committee
supports the Board to oversee the company’s risk
assessment and risk management processes.
Our Enterprise Risk Management (ERM) function
is designed to establish and maintain a standard,organizationwide understanding of risk managementand define roles and responsibilities based on the2017 Committee of Sponsoring Organizations (COSO)
framework. Our Chief Risk Officer (CRO) is responsible
for the full ERM program, including the design andimplementation of capabilities to identify, manage
and report on risk exposures.
The business unit-specific, Cyber and IT risk functions
drive the ERM program and allow continuous
improvement of risk management practices throughemployee involvement in a structured risk assessment
process. Risk insights, including ESG-related risks, arediscussed and overseen by area-specific risk committees.
Risk assessments are then aggregated and reported to
the Executive Leadership Team and Board of Directors
through a central independent group that reports to
the CRO. Risk insights and mitigation management are
tracked through a governance, risk and compliance tool.
For more information about our risk factors, see our2022 Annual Report, pages 23-32.

1

Refers to Moody’s Corporation and its wholly owned subsidiaries.

We have taken steps to improve our risk educationand culture, with the goal of cultivating a robust
understanding and awareness of risk among employees.
As a company in the business of assessing risk, thisconcept is deeply important to our employees. On the
ground level, we work to foster a culture and work
environment in which all employees feel comfortableasking questions, seeking advice and raising issues thatare important to them, including reporting allegationsof noncompliance with laws, regulations and policies.

ESTABLISHING BUSINESS RESILIENCY
We recognize our responsibility to our customers tocontinue evolving our processes to be more resilient
to disruptive events. Our business impact analysis
gives us insight into the criticality of our operations todrive resiliency prioritization. In addition, our business
continuity plans supplement our resiliency efforts andare reviewed by Internal Audit for the relevant areas
covered by their annual audit plan. The plans include
local crisis management teams and risk assessments forevery office location. We continually update these plans
and assessments in response to changes in external risks
and internal business processes, and we have integrated
lessons learned from events such as geopoliticalthreats. Additionally, we conduct annual third-party risk
assessments of key vendors and run a risk-based testing
program that includes tabletop scenario exercises
related to cybersecurity.

In 2022, we offered a new “Fundamentals of Risk”
training. This companywide foundational course
helps employees understand risk from a personal andprofessional point of view and improves our internal
capabilities for recognizing and managing risk. For
more information on compliance training andreporting mechanisms, see Business Ethics andProfessional Integrity.
For more information on our policies regarding risk
management, see Additional Resources.

Climate|

24

ClimateA MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESS
Corporate
GovernanceBusiness Ethics andProfessional Integrity
Risk Assessment andManagement
ClimateCybersecurity andData Privacy
Responsible Sourcing

BETTERLIVESBETTER
SOLUTIONSAPPENDIX

Climate change is one of the defining issues of our time. While our business has a limited direct environmental impact,
we play an important role in modeling proactive corporate responsibility and demonstrating best practices when it
comes to climate change mitigation. We are taking steps to advance our climate action by publishing our Task Forceon Climate-related Financial Disclosure (TCFD) report on an annual basis and updating our Decarbonization Plan withvalidated near- and long-term science-based targets and a comprehensive roadmap, as well as continuing to work
toward our commitment to achieve net-zero emissions across our operations and value chain by 2040, a decade earlier
than the Paris Agreement goals.

ASSESSING CLIMATE RISKSAND OPPORTUNITIESWe assess climate-related risks and opportunities
through a multidisciplinary risk management process
and have implemented the 11 TCFD recommendations.
Our 2022 TCFD Report report includes:» An advanced physical risk analysis, which quantifies
climate-related financial impacts associated withclimate catastrophes for global offices, data
centers and remote work using Moody’s RMS
latest modeling.
» The application of updated MIS Environmental
Heatmaps to Moody’s customer risk analysis.
» The enhanced climate-adjusted probability ofdefault analysis to evaluate the financial impactsof respective physical and transition risks under
different climate scenarios.
» An expanded critical supplier climate risk
analysis, both in terms of coverage and therisk criteria assessed.

Data governance and climate-related reporting
We are committed to the highest standards of data
integrity and continually seek to elevate the rigor
of our disclosures. In 2022, we implemented thefollowing improvements to our data governance:» Appointed our first ESG controller role to help ensure Moody’s
is positioned for, and responsive to, the growing expectations
among our stakeholders for accurate and transparent regulatory
ESG reporting.
» Reviewed and enhanced our data governance methodologies forenvironmental metrics.
» Continued to operationalize the use of an environmental
management system that has become our single source of truth
for all environmental data, including a comprehensive tracker ofoffice-level environmental and energy saving initiatives.
» Further improved the way we collect, store and transmit
our sustainability data by leveraging a digital platform that
centralizes and streamlines our reporting efforts and mitigatesdata integrity risk.
» Disclosed a Methodology Note to improve transparency on
methodologies and assumptions used in the accounting ofsustainability, including climate, impacts.
We verify data quality and performance on an ongoing basis, andwe annually engage third-party verifiers to review our greenhousegas (GHG) inventory. For more information, see the Environmental
Assurance Statement in our 2022 TCFD Report.

Climate

A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S

ACHIEVING OUR CLIMATE TARGETS

Progress against our near-term net zero targets

We continue to work toward the ambition to reachnet-zero emissions by 2040, a decade earlier than ourprevious commitment to the U.N. Global Compact
Business Ambition for 1.5 °C. We have taken significant
steps toward this goal — notably, we established along-term, SBTi-validated net-zero target of 90%
reduction of Scope 1, 2 and 3 emissions1 and progressedon our near-term net-zero targets to reduce GHG
emissions. We also continued to procure 100%
renewable electricity since 2020 and to offset theremainder of our emissions from our operations,business travel and employee commuting since 2000,
when we became a public company.

50%

15%

Reduction in absolute Scope 1 andScope 2 GHG emissions by 2030 1

|

25

60%

Reduction in Scope 3 GHG emissions from fuel and energy-related
activities, business travel and employee commuting by 20251,2

Of our suppliers by spend covering purchased goods and services andcapital goods to have science-based targets by 2025

Target in progress

95%
92%

92%

49%

81%

76%

68%

Exceeding target

28%

25%

24%

2019

2020

Exceeding target

BETTER
BUSINESS
Corporate
GovernanceBusiness Ethics andProfessional Integrity
Risk Assessment andManagement
ClimateCybersecurity andData Privacy
Responsible Sourcing

BETTERLIVESBETTER
SOLUTIONS“Climate science tells us that we need
rapid and deep emissions cuts if we areto achieve global net-zero and preventthe most damaging effects of climatechange. Moody’s net-zero targets
match the urgency of the climate
crisis and set a clear example that
their peers must follow.”
Luiz Amaral
Chief Executive Officer of the
Science Based Targets initiative

APPENDIX

2020

2021

2022

Our near-term science-based targets are focused on
three critical aspects of reducing our GHG emissions:
reduction in absolute Scope 1 and Scope 2 GHG
emissions; reduction in Scope 3 GHG emissions fromfuel and energy-related activities, business travel andcommuting; and increase the percentage of suppliersby spend who have set science-based targets.
In 2022, we continued to exceed our near-term GHG
emissions reductions targets, due in part to a portion of
our employees continuing to work remotely, and madestrong progress toward our supplier engagement target,with 49% of suppliers by spend now committed toscience-based targets.

From a 2019 base year.
2
Emissions from fuel and energy-related activities increased due to an increase in emissions factor used in the calculation; emissions from business travel and employee
commuting increased due to a post-pandemic resumption of business-related travel and more employees returning to work in the office.
³ Renewable electricity percentage is reported based on originally verified electricity consumption values because it is not possible to buy renewable electricity retroactively
due to M&A activity; therefore, the 2020 restated verification opinion shows a decrease in percentage renewable electricity.
4
2019, 2020 and 2021 purchased goods and services (Scope 3, Category 1), capital goods (Scope 3, Category 2) and fuel and energy-related activities (Scope 3, Category 3)
GHG emissions were restated as a result of a change in methodology and access to improved data.
5
Scope 2 location-based emissions were 7,696 mtCO2e in 2022.
6
Other includes fuel and energy-related activities (200 mtCO2e) and waste generated in operations (81 mtCO2e).
1

2020

2021

2022

2021

2022

Carbon emissions offset from operations,employee commuting and business travel

Renewable electricity in 2022³
Achieving target 100%

100%
2000

2022
Achieving target

2022 GHG emissions4

0.20%
0.94%

Scope 1:810 mtCO2e

7.32%
7.46%

Scope 2 (market based) :440 mtCO2e

Purchased goods and services
Business travel
Investments
Capital goods
Employee commuting
Other6

5

Scope 3:
137,981 mtCO2e
Total Scope 1, Scope 2 market
based and Scope 3:
139,231 mtCO2e

7.17%

Scope 3emissionsbreakdown
76.89%

Climate

OFFSETTING OUR
CLIMATE EMISSIONSA MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESS
Corporate
GovernanceBusiness Ethics andProfessional Integrity

Certified climate projects supportingour 2022 emissions offsets

ClimateCybersecurity andData Privacy
Responsible Sourcing» Solar project (India)» Forestation (Canada and Brazil)

BETTER
SOLUTIONSAPPENDIX» Continued to procure 100% renewable electricity.
» Implemented various projects to promote energy
efficiency, including:– Expanded our initiative to increase temperature set-point in technology rooms;– Started retrofitting our air conditioning systems to use refrigerants that
increase the efficiency of the cooling operations;

Our carbon offset projects are selected based on thegeographies where we operate and alignment with the
Sustainable Development Goals (SDGs) and cobenefits;projects are also listed on reputable registries thatguarantee third-party verifications. In 2022, our global
project engagements included solar, forestation andborehole-related initiatives.

Risk Assessment andManagement

BETTERLIVES

Advancing our Decarbonization Plan in 2022

In addition to the reported emissions reductions,
we are committed to offsetting our emissions fromoperations, business travel and employee commuting
on an annual basis. In 2022, we continued to offset
our carbon footprint since 2000, when we became apublic company.

» Forestation (U.S.)» Boreholes (Uganda)– Reprogrammed corridor lights to save energy during office hours and torequire manual switching at night; and– Cut off the hot water supply from instant water heaters to reduceenergy consumption.
» Maintained low levels of business travel and employee commuting through our
hybrid work program, which includes more technology-enabled work, enhanced
digital capabilities and IT infrastructure to implement work-from-home solutions.

EVALUATING ENVIRONMENTALCONSIDERATIONS FOR NEW
OFFICE LOCATIONS
Environmental considerations help to guide our selectionof office locations. For example, we lease space inenergy-efficient buildings that are Leadership in Energy
and Environmental Design (LEED) certified (or a local
equivalent outside the U.S.). Currently, approximately
60% of our employees are working in such buildings.
We also evaluate whether a location has convenient
access to public transportation, includes bicycle storage
and shower facilities to promote exercise and greener
commuting, and uses energy-efficient, recycled andsustainable materials,1 fixtures and control systems. In
addition, we consider the cost of carbon when selecting
new office spaces.

1

Materials manufactured with recycled content or third-party certified forcomplying with recognized sustainability standards.

» Continued to implement an Internal Carbon Fee of $50 per metric ton (mtCO2e)on business travel emissions.
» Continued to apply a shadow price on carbon to evaluate new office leases.
» Launched an implementation plan focused on aligning global offices to ourCompanywide environmental sustainability policy and commitments.
» Continued to implement quarterly meetings among our global officerepresentatives to share best practices on reducing emissions fromour operations.
» Strived to prioritize sustainable construction and furnishing materials1 in
new real estate projects.
» Designed Local Sustainable Procurement Guides to promote and facilitate theselection and purchase of eco-friendly paper and office and stationery supplies.
» Continued to engage with our stakeholders on climate-related issues (formore information, see Stakeholder Engagement).

|

26

Climate

PROTECTING NATURE
AND BIODIVERSITYA MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESS
Corporate
GovernanceBusiness Ethics andProfessional Integrity
Risk Assessment andManagement
ClimateWe are committed to protecting the environment
and advancing biodiversity by embedding responsible,
sustainable processes and management across our global
operations and value chain — including our recycling
and energy reduction efforts, and other sustainable
workplace initiatives.

Environmental Sustainability Policy
The updated Environmental Sustainability Policy,
reviewed and approved by our Board of Directors,
reflects our latest efforts to enhance our environmental
performance and reach net-zero by 2040. In addition to
introducing our waste targets, the policy outlines ways
in which we endeavor to empower our employees to becatalysts of environmental and social change, support
environmental projects through the Moody’s Foundationand provide market participants with products andsolutions that help mitigate ESG-related risk,
including climate.

Cybersecurity andData Privacy
Responsible Sourcing

In 2022, we launched a companywide policy
implementation plan to align initiatives fromglobal offices to the commitments outlined in ourEnvironmental Sustainability Policy. This plan aims
to improve and standardize our waste management
and material efficiency practices, and to continue toreduce our GHG emissions through energy efficiency
initiatives. These efforts were accompanied byeducation and awareness campaigns to encourage
our employees to implement good sustainability
practices in the workplace and beyond.

7%

35%
58%

» Maintain office paper usage below 50% of 2019
levels through initiatives such as reduction ofindividual printers and digitization of daily
business activities.
» Implement centralized waste collection
and recycling in offices with more than
50 full-time employees.
» Phase out single-use plastics and othersingle-use items from our global operations,where possible.

BETTER
SOLUTIONS

Recycled goods

Landfill

Recycled paper

Reduction of office paper from 2019 levels2
96%50%
Target

94%

80%

2020

2021

2022

Energy intensity ratio
kWh/sq ft

APPENDIX

13.0

2020
Actual waste represented 11% of reported volume in 2022. The reported figure represents an extrapolation to cover the full property portfolio.
2
Represents our offices in the U.S. and the U.K. and excludes shared-space offices due to data limitations. The data accounts for approximately 37% of global operations.
2020 and 2021 metrics were restated as a result of improved access to purchased paper data in the U.K. Efforts are in place to increase data coverage globally.
1

11.9

2021

27

Considering natural capitalrisk in our offerings

By 2025, we aim to:» Phase out coffee machines with capsules orsachets and/or implement recycling of thispackaging, where possible.

BETTERLIVES

Waste from office operations1

|

11.7

2022

We incorporate natural capital risk into our
products and services to contribute to decisionmakers’ holistic understanding of risk, including
controversies screening and assessing alignment
to the U.N. SDGs (specifically, SDG 14 – Life Below
Water and 15 – Life on Land). As part of our ESG
assessments, we measure how companies perform
on environmental protection, biodiversity andwater management. We are also working to support
standardized disclosure requirements for the EU’s
Sustainable Finance Disclosure Regulation Principal
Adverse Impact indicator on biodiversity.
Furthermore, in partnership with Planet, a leading
satellite imagery and analytics platform, we are
exploring the value of geospatial data for emerging
ESG risk areas, like biodiversity and deforestation,
modern slavery and supply chain resiliency.
Examples of our contributions to ongoing industry,
government and capital markets discussions about
assessing and disclosing companies’ nature-related
impacts and dependencies include:» Issuing a report detailing our approach tonatural capital risk in debt rating, including
our assessment of the $1.9 trillion in credit
risk related to potential mismanagement of
natural assets.
» Laying out our approach to disclosure for the
EU’s Sustainable Finance Disclosure Regulation(SFDR) Principal Adverse Impact (PAI) indicatoron biodiversity.
» Collaborating to develop a reporting frameworkfor nature-related risks as a member of theTaskforce on Nature-related Financial
Disclosures (TNFD).

Cybersecurity and Data Privacy|

28

Cybersecurity and Data Privacy

1

A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESS
Corporate
GovernanceBusiness Ethics andProfessional Integrity
Risk Assessment andManagement
ClimateCybersecurity andData Privacy
Responsible Sourcing

BETTERLIVESBETTER
SOLUTIONS

We are committed to maintaining a
best-in-class information security programthat addresses cybersecurity and data
privacy, including for our customers’
data. We continuously work to enhance
our policies, processes and technology tostrengthen our cyber resilience and protect
the data and security of our stakeholders.

MAINTAINING CYBERSECURITY
GOVERNANCE AND RISK CULTURE
Chaired by the Chief Information Security Officer(CISO), our Cyber Enterprise Risk Management
Committee is responsible for identifying cyber risks andthreats, recommending mitigating actions to strengthen
cyber resilience and meeting risk tolerance thresholds
established by executive leadership. The full Boardof Directors and the Audit Committee receive regular
updates from the CISO, Chief Technology Officer (CTO)
and Chief Administrative Officer (CAO) regarding
matters related to technology and cybersecurity. The
Executive Leadership Team also escalates issues to theBoard as necessary.

BitSight Badge2
BitSight Security
Ratings measure
an organization’s
cybersecurity
risk and security
management
effectiveness. The
rating is calculated by
BitSight using its proprietary algorithm basedon externally observable data.

PROMOTING EMPLOYEE TRAINING
AND AWARENESS
Cyber resilience starts with our people and our
culture. InfoSafe, our information security training andawareness program for all employees, vendors andwholly owned affiliates that are fully integrated with
Moody’s systems, aims to prevent, detect and respondto cyber threats and incidents, and consists of anumber of initiatives, including:» Recertification of our IT Use Policy.
» Continuing education on phishing awareness.

APPENDIX» Regular communications about cybersecurity
best practices.
» Annual events, like Cybersecurity Awareness Month.
Refers to Moody’s Corporation and its wholly owned subsidiaries.
As of December 31, 2022.
3
BitSight is a minority-owned affiliate of Moody’s.
4
A material incident is defined as “affecting critical systems or information withpotential or confirmed significant impact to revenue, reputation or customers.”
12

Our employees are required to complete annual
cybersecurity training, and compliance is monitored. We
use general and targeted phishing simulations to help
our employees better recognize and respond to potential
threats. The training program is further enhanced byinviting cybersecurity experts to scheduled educational
events. We also offer specialized training modules on
emerging cyber threats for our software development
teams. Our IT Use Policy outlines a clear escalation
process that requires employees to immediately reportany suspected cybersecurity incident to the IT Help Desk.
In 2022, we launched the CybSafe online learning
program, which features short, engaging modules thatallow employees to learn at their own pace. The programprovides customized insights and recommendations, andoffers tips to improve cyber hygiene that employees canshare outside of Moody’s.

MONITORING ANDASSESSING CYBERSECURITY
Our cyber environment is continuously monitoredby automated tools and an expert team that reviews
alerts and incidents. Our Information Security Incident
Response Plan provides governance and guidance in
responding to information security incidents and istested at least annually for optimal calibration against
existing and emerging threats. In 2022, we expanded our
Fusion Center, which monitors cyber events, to provide
24/7 coverage.
Our cybersecurity program, which leverages the U.S.
NIST Cybersecurity Framework, undergoes internal andexternal reviews. In addition to the annual assessmentof the program and its components, robust vulnerability

assessment processes are in place. Internal and externalteams also conduct periodic penetration testing, red
teaming, tabletop exercises and phishing drills. Results
are continuously measured and assessed for possible
improvements. In addition to these ongoing efforts, in
2022 we conducted a resiliency-focused ransomware
readiness assessment.
We contract reputable third parties to conduct annual
external assessments of the cybersecurity program andits components. In 2022, these independent assessments
included those by Alvarez & Marsal and BitSight.3
Similarly, government agencies and their contracted
agents conduct regular reviews in jurisdictions where we
operate. Furthermore, insurance agents, customers andother market participants continually assess our security
posture for their own needs.
There were no material incidents related to data andcybersecurity breaches across our global operationsin 2022.4

Addressing cyber risk inour solutions
In addition to managing our own cyber risk, we
also aim to advance our customers’ ability tohandle cyber risk. Our 2022 cyber heatmap,
which incorporates data and analytics from
Moody’s Analytics, identifies $22 trillion ofdebt that faces elevated cyber risk. Our teams
work to create industry-leading cybersecurity
risk insights and solutions to help organizations
understand and mitigate those risks.

Cybersecurity and Data Privacy

A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESS
Corporate
GovernanceBusiness Ethics andProfessional Integrity
Risk Assessment andManagement
ClimateCybersecurity andData Privacy
Responsible Sourcing

BETTERLIVESBETTER
SOLUTIONSAPPENDIX

MAINTAINING DATA PRIVACY AND PROTECTION
We are committed to maintaining a global Privacy Program that complies with all applicable privacy laws.
We continuously review and enhance our Privacy Program to safeguard privacy protections for our employees,
customers, suppliers and all other stakeholders.
Our global Privacy Program consists of policies,
processes and controls designed to safeguard personaldata, including:» Appointment of statutory data protection officers (orsimilar roles) and notification to local data protection
authorities, where required.
» Detailed data mapping of our personal dataprocessing operations.
» Data privacy impact assessments and data transfer
risk assessments.
» A dedicated data subject rights process.
» Executing data processing and data transfer
agreements internally and with customers,
where applicable.
» Requiring vendors to execute data processing and datatransfer agreements, where applicable, and undertake
security assessments.
» New hire and bi-annual all-employee mandatory
global privacy training.
» Specialized privacy training for teams with enhanced
privacy responsibilities, including Product, People,
Client Services and Marketing teams.

» A dedicated team of privacy lawyers.
» Tracking and analyzing the operational impact of
new and amended privacy laws and regulations.
» Assessment by Internal Audit, as well as external
auditors on a legal entity and product-specific basis.
In 2022, we implemented additional privacy by design
safeguards, requiring new or amended processes andproducts to undergo a privacy compliance review. We
enhanced our internal training and awareness program
to cover changes to global privacy laws and regulations,
including making additional training courses available toall employees.
All employees must protect confidential and personal
information they receive in the course of performing
their job responsibilities. Employees who inappropriately
disclose or otherwise misuse confidential information
may be subject to disciplinary action up to and including
termination. For more information, see our Code ofBusiness Conduct.
For more information on our policies regarding
cybersecurity and data privacy, see Additional Resources.

|29Responsible Sourcing

Responsible Sourcing
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESS

We are working to build a sustainablesupply chain that upholds our rigorous
standards and prioritizes environmental
efforts, diversity and ethical codes ofconduct. In addition to engaging our
suppliers on climate and increasing our
supplier diversity, we have enhanced ourdue diligence assessments to quantify andmonitor potential sustainability-relatedrisks in our supply chain.

Corporate
GovernanceBusiness Ethics andProfessional Integrity
Risk Assessment andManagement
ClimateCybersecurity andData Privacy
Responsible Sourcing

BETTERLIVESBETTER
SOLUTIONSAPPENDIX

Among the top

8%

of companies
assessed by CDP for
supplier engagement
on climate

ENGAGING SUPPLIERS ON CLIMATEEngaging suppliers to reduce their own emissions isa key element in our strategy to achieve net-zeroemissions. In our Decarbonization Plan, we set atarget for 60% of our suppliers by spend coveringpurchased goods and services and capital goods tohave science-based targets by 2025. As of year-end
2022, our suppliers by spend that have sciencebased targets increased to 49% and exceeded ourinternal annual target of 33%. We continue to seek
opportunities to engage with and encourage existing
suppliers to set science-based targets. For example,
our Supplier Code of Conduct encourages suppliers todisclose their carbon footprint and set science-basedtargets, and we have updated key supplier contracts
with our expectation for suppliers to set and disclosesuch targets.
In addition, we engage suppliers through multiple
channels to emphasize the importance of carbon
disclosures and transparency. In 2022, we invitednearly 500 of our top suppliers to attend jointly heldwebinars with CDP, requesting that they participate
in the annual CDP Climate Change disclosure and set
their own science-based targets. With our Executive
Leadership Team, as well as through a partnership with
CDP, we followed up directly with a number of ourpriority suppliers and reinforced our commitment toclimate action and our expectations of key suppliers.
During the CDP disclosure cycle, sourcing managers

received weekly progress updates that allowed themto execute targeted follow-up with their suppliers. We
implemented a comprehensive engagement plan with
suppliers based on their historic response to CDP andpaid particular attention to first-time responders. As aresult, we saw a 5% increase in the rate of response to
the CDP Climate Change Questionnaire.
All of our sourcing managers are offered training on
responsible sourcing. This training is designed to educate
our buyers on social and environmental issues within
the supply chain, with a focus on factoring responsible
sourcing — including science-based targets and supplier
diversity — into award decisions. In addition, sourcing
managers now have access to a responsible sourcing
toolkit, which provides them with resources to support
supplier engagement on responsible sourcing. In
recognition of these efforts, we were named a 2022
Supplier Engagement Leader by CDP for the third
consecutive year, placing us among the top 8% ofcompanies assessed for supplier engagement on climate.

|

30

Responsible Sourcing

A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESS
Corporate
GovernanceBusiness Ethics andProfessional Integrity
Risk Assessment andManagement
ClimateCybersecurity andData Privacy
Responsible Sourcing

BETTERLIVESBETTER
SOLUTIONSINCREASING SUPPLIER DIVERSITY1

CREATING AN ETHICAL SUPPLY CHAIN1

We are committed to providing suppliers with equal
access to business opportunities. Our supplier diversity
efforts focus on encouraging diverse suppliers to bid
on projects and submit proposals, selecting qualified
diverse suppliers when awarding contracts andenhancing our relationships by offering networking
and mentorship opportunities.

We expect our vendors, suppliers, contractors andconsultants to share our commitment to the highest
ethical standards and operate in compliance withapplicable laws, rules and regulations, including allanti-bribery and anti-corruption laws.

Our Supplier Diversity Program aims to increase ourpartnerships with small business enterprises andbusinesses owned by people of underrepresented racialand ethnic groups, women, people with disabilities,
veterans and members of the LGBTQ+ community.
In 2022, our small business and diverse Tier I spend
increased by 44% over the previous year. We also workwith our suppliers to encourage diverse spend within
their own supply chains. We formally launched our Tier II
Supplier Diversity Program, which aims to identify, trackand manage the diverse spend for our highest spend andstrategic suppliers.
In 2023, we are partnering with advocacy organizations
including Disability:IN and the National LGBT Chamberof Commerce (NGLCC) to provide mentorship todiversely-owned businesses to help them grow anddevelop their business.

APPENDIX

Refers to Moody’s Corporation and its wholly owned subsidiaries.
Key suppliers are those deemed highest criticality by Moody’s in terms of regulatory
impact as well as high-priority software suppliers.
³ Represents addressable spend with suppliers that we do business with directly (Tier 1).

1

2

All suppliers are asked to adhere to the standards set out
in our Supplier Code of Conduct, which was expanded
in 2020 to reflect new social and environmental
considerations and describes our expectations ofsuppliers in the areas of business integrity, labor
practices, employee health and safety, diversity andinclusion and environmental stewardship. Our master
professional services agreement template requires
suppliers to hold their personnel accountable to the
Supplier Code.

Our suppliers and other external stakeholders areencouraged to raise concerns or suspicions of violationof the Supplier Code of Conduct by contacting
Moody’s directly or via Moody’s Integrity Hotline.
For more on our reporting mechanisms, see Business
Ethics and Professional Integrity.
In addition to these policies, our Modern Slavery and
Human Trafficking Statement is updated annuallyand describes our approach to preventing humanrights violations in our workforce and supply chain.
Our supplier agreements include language that
requires suppliers to ensure there are no human rights
violations in their supply chains.

Diverse supplier spend³
As a percentage of total addressable spend with suppliers that we do business with directly (Tier 1).
2020

2021

2022

Diverse supplier spend

8%

7%

8%

Women-owned

4%

3%

3%

Small businesses

1%

2%

2%

Veteran-owned

0.2%

0.3%

0.5%

|

31

As part of our due diligence process, we conduct
sanctions screening on all new suppliers. We evaluate
and segment applicable suppliers based on criticality
and risk, and we screen all key suppliers2 with
Compliance Catalyst, a Moody’s tool powered by
the Orbis and Grid databases on private companies.
Using Compliance Catalyst, we assess a broad
spectrum of risks, including U.S. sanctions, modern
slavery, human rights violations and environmental
crimes. As of December 31, we have assessed 100%of our key suppliers and have not identified any
high-risk suppliers. In addition, we have put inplace a clear escalation pathway that enables us
to address any major risks in an immediate andappropriate manner.
In addition, we quantify ESG risks — such as supplier
diversity, science-based targets, cybersecurity andcompliance with global ethical standards — for key
suppliers and aggregate this data into an overall
scorecard. In 2022, we implemented Coupa Risk
Assess to automate this process.
For more information on our policies regarding
responsible sourcing, see Additional Resources.

Better Lives

Better Lives
Diversity, Equity and Inclusion
Employee Attraction and Engagement
Employee Health and Well-being
Learning and Development
Community Impact|

32

Better Lives

Better Lives
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment
Community Impact

BETTER
SOLUTIONSAPPENDIX

We strive to foster a nurturing and inclusive
culture, both inside our organization andin the communities in which we operate —because a more diverse, equitable andengaged workplace helps us fulfill our
mission of providing trusted insights that
help decision-makers act with confidence.

A MESSAGE FROM MARAL KAZANJIAN,CHIEF PEOPLE OFFICERAt Moody’s, our people are committed to delivering
innovative risk solutions that lead to better outcomesfor our customers. Our Company is equally committed
to investing in our people because our colleagues’
enthusiasm, creative ideas and passion fuel our
unparalleled insights and solutions in service ofour customers and our community. To maintain anenvironment where our people feel included andcan thrive, we continually make investments in
our workplace.
Over the past few years, the world of work has changed
significantly. Flexible work arrangements are an
important consideration for many jobseekers during thehiring process and companies are viewing flexibility as abenefit that helps attract and retain talent. At Moody’s,
we’ve embraced this evolution by prioritizing flexible
ways of working. Our approach balances the needs ofour business with the needs of our people, helping all of
us prioritize where and how we work based on the typeof work we’re doing.

At the same time, fostering meaningful interactions
among our people and with our stakeholders andcustomers that provide opportunities for connection
and collaboration is core to our approach because weknow it’s crucial for business innovation and sustaining
our culture.
We’ve continued to enhance our Diversity, Equity &Inclusion (DE&I) efforts as well, not only because
DE&I is core to who we are at Moody’s – we believe
it’s essential to realizing a truly sustainable future. I’m
extremely proud that in 2022 we expanded our BusinessResource Groups (BRGs) program in the Americas withthe launch of three new BRGs dedicated to serving Asian,“We firmly believe that the investments we’ll
continue to make in our people will help us
define and drive a more sustainable futurefor our Company and our customers.”
Black and Latin communities both within and outsideof Moody’s. In January 2023, we appointed a new headof Diversity, Equity & Inclusion to build on the work
we’ve done with a focus on implementing a data-driven,strategic approach to accelerate our efforts.
Similar to DE&I, we’re investing in professional
development opportunities for our people with theevolution of Moody’s University, our online learning hub
available to colleagues across our organization. We’ve
added a range of content and expanded our partnerships
with colleges, universities and certification training

centers to offer our people a wider array of resources.
These investments underscore our ongoing commitment
to the professional growth of our people throughcontinuous learning.
As we look ahead, we firmly believe that the investments
we’ll continue to make in our people will help us define
and drive a more sustainable future for our Company
and our customers. At a knowledge company like ours,
we know the ambition, aspirations and ingenuity of ourpeople will help us realize a better future.

MARAL KAZANJIAN
Chief People Officer, Moody’s Corporation|

33

Diversity, Equity and Inclusion|

34

Diversity, Equity and Inclusion
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESDiversity, Equity
and Inclusion

We believe a workforce that includes an array of backgrounds and experiences helps create
an environment that maximizes every employee’s contribution, widens the leadershippipeline and enhances our work, including the quality of our opinions, products and services.
We aspire to be a place where everyone feels comfortable bringing their authentic self towork, where we demonstrate empathy and civility, and where we celebrate the differencesthat make us stronger.

Global diversity strategic framework
Structured approach to drive a culture of diversity, equity and inclusion.

Americas •• U.S.
U.S. • EMEA
Americas
EMEA •• APACAPACADVANCING OUR DE&I STRATEGY
Our global DE&I strategy aims to drive a culture of diversity, equity and inclusion across four key areas: Our
workforce, workplace, customers and communities. The framework, as illustrated in the graphic on the right, aligns to
our Company’s business priorities, talent strategy, culture and long-term value proposition, and provides a structured
approach to advance our DE&I strategy.

Workforce

Customers

Workplace

Community

Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment
Community Impact

Diversity
CouncilBusinessResource
GroupsDiversity
Training

Partnerships

BETTER
SOLUTIONSAPPENDIX

Talent Acquisition • Performance Management • Retention
Learn more about our global diversity strategic pillars by clicking the tiles in the graphic.

Supplier
Diversity

Diversity, Equity and Inclusion

A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment
Community Impact

BETTER
SOLUTIONSAPPENDIX|

35

Setting our direction: DE&I governanceOur employees actively participate at every step inshaping and implementing our DE&I strategy.
Our global Executive Diversity Council is tasked withoverseeing the implementation and progression of our
DE&I strategy across our business. Chaired by our CEO
and composed of other senior leaders, the Council
meets at least quarterly so that DE&I is an ongoing
focus throughout the company. Council members
typically have a personal connection to DE&I or
have been involved with one or more of our BRGs.
Our Regional Diversity Councils in Europe, the Middle
East and Africa (EMEA) and Asia-Pacific (APAC) help
us adapt and implement our strategy in ways that areauthentic and resonate with local policies and customs.
In addition, our Regional Advisory Committees, made up
of BRG co-chairs, serve an important role by facilitatingrich discussions, seeking employee feedback andproviding inputs to inform DE&I programming. At thecenter of our strategy are our BRGs, which are tasked
with implementing and advancing our DE&I strategy
with active participation across the organization.
Over the past few years, the Council has helped us
make significant progress developing and implementing
workplace flexibility, broadening diversity and inclusion
education programs, helping establish the Women in
Leadership programs and creating an inclusive language
guide to help inform communication with stakeholders
so that it reflects our evolving view of DE&I.

Talent Acquisition

EMEA Council

MOODY’S
ENABLE
BRG

Diversity
Strategy

Executive
Diversity
Council

MOODY’S
GENERATIONAL
BRG

MOODY’SINCLUSION
BRG

Regional Advisory Committee

MOODY’S
MINDS
BRG

Well-being
Regional Advisory Committee

Engagement
MOODY’SPRIDE
BRG

MOODY’S
VETERANSBRG

MOODY’SWOMEN’S
BRG

MOODY’S
MULTICULTURAL
BRG

Regional Advisory Committee

Belonging
Regional Advisory Committee
MOODY’S
BLACK IMPACTGROUP BRG

MOODY’SCONECTAMOSBRGAPAC Council

MOODY’S
PAN-ASIAN
IMPACT BRG

Benefits
Regional Advisory Committee

Diversity, Equity and Inclusion

Empowering our people: BusinessResource Groups
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment
Community Impact

BETTER
SOLUTIONSAPPENDIX

Our BRGs help create a meaningful space for employees
to express their values, shape business initiatives andprograms and bring their authentic selves to work.
Each of our 11 BRGs works closely with our Diversity
Councils and plays a role in advancing DE&I at Moody’s.
Our 53 regional chapters are open to all employees
across the Americas, EMEA and APAC and represent
the many diverse talents within the company and help
make our workplace representative of the communities
in which we operate. With more than 3,600 1 employees
participating globally, each group is led by a chair or
co-chair, who is nominated by the group and ultimately
appointed by our Chief DE&I Officer.
To enhance the strategic role our BRGs play in ourdecision-making process for recruitment, retention andprofessional development, we transformed three of
our inclusion groups into stand-alone BRGs: Pan-Asian
Impact Group (PAI), Black Impact Group (BIG) andConectaMos (our Latino/Latina group). This transition
has helped bring diverse perspectives to the shaping ofour business initiatives and programs.
In addition, we hosted our third annual BRG Summit,“Forward Together: Belonging, Talent and Goals,” whichbrought together BRG co-chairs, executive sponsors andDE&I ambassadors from across the globe to celebrateaccomplishments, discuss new ways of engagement
and plan for the year ahead.

1

Data as of December 31, 2022.

“The BRG Summits have been invaluable
in highlighting the key BRG themes
for the year, and showcasing thecontributions of the many — and truly
diverse — BRGs across Moody’s. They
also motivated me to reach out to theco-chairs of other BRGs globally to shareideas and organize events, some of which
resulted in meaningful collaborations
over the last few years.”
Adam Hardi
Member and former co-chair of theCanada Pride BRG; VP Senior Analyst|

36Diversity, Equity and Inclusion|

37

Our BRGs
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSMOODY’S BLACK IMPACT GROUP
supports the recruitment, retention,
empowerment and advancement of
our employees, including our Black
employees, as well as promoting
and fostering allyship to maintain adiverse, inclusive and collaborative
company culture.

MOODY’S GENERATIONAL seeks toleverage the insights and experiencesof our multi-generational workforce
in order to cultivate an inclusive
work environment that fosters
greater connectedness, supports thedevelopment of all generational groups
and delivers business value to the firm.

MOODY’S MULTICULTURAL seeks
to leverage diverse talent by promoting
recruitment, professional development
and networking opportunities for our
employees, particularly our ethnicallydiverse employees.

MOODY’S VETERANS recognizes andsupports veterans, active-duty military
personnel and military families within
our Company and in our communities.
Members primarily focus on outreachefforts, including workforce integration
and raising awareness around issues
that affect veterans.

MOODY’S CONECTAMOS seeks topromote and advance the inclusion of
our employees, including our Latino/
Latina employees, at all levels, andto position Moody’s as an employerof choice.

MOODY’S PAN-ASIAN IMPACTGROUP seeks to foster networking
opportunities and support the wellbeing of our employees, as well as raiseawareness about Pan-Asian cultural
diversity and build allyship to foster
an equitable and inclusive workplace
at Moody’s.

MOODY’S INCLUSION supports
all areas of diversity and inclusion,
combining Moody’s BRG chapters andcreating opportunities for all employees
to engage with a BRG.

MOODY’S WOMEN seeks to
implement programs that foster
greater interaction among peers, aswell as the broader community, while
acting as a collective voice for raising
women’s issues to senior management.

MOODY’S MINDS seeks to fostera culture where all employees are
empowered to discuss and manage
their mental health.

MOODY’S PRIDE advocates for awork environment that respects,
welcomes and supports all employees,
particularly lesbian, gay, bisexual andtransgender professionals and enables
them to perform to their fullest
potential and contribute to the greater
goals of the firm.

MOODY’S ENABLE advocates for an
inclusive, accessible and stigma-freeworkplace in which employees withdisabilities are valued for their talents
and have the opportunity to advanceand thrive professionally.

ABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment
Community Impact

BETTER
SOLUTIONSAPPENDIXDiversity, Equity and Inclusion

ADVANCING DE&I INSIDE MOODY’S:
OUR WORKFORCE AND WORKPLACEA MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTS

Who we are: Race, ethnicity and gender data
Disclosing our diversity data is critical to our efforts to build an inclusive workforce. We continually challenge ourselvesto provide transparent reporting and look forward to identifying ways to enhance our disclosure practices.

We believe that an inclusive, equitable and diverse
workplace that draws on the experiences, backgrounds
and opinions of all its people is fundamental to our
success. Our business benefits from the inclusion ofmany different perspectives. That is why we actively
promote diversity at every level of Moody’s. We work
hard so that all employees, from new hires to seniorleaders, feel respected, included and empowered.

We have disclosed our consolidated U.S. Equal Employment Opportunity (EEO-1) data publicly for two consecutive
years and plan to continue to disclose that data on an annual basis once it is finalized. While we recognize that EEO-1
data is not a perfect measure of diversity, it is a step forward in our efforts to increase transparency and foster an
inclusive workplace.

ABOUT
MOODY’S

5%

6%

Race and ethnicityof U.S. employees% of employees
White

BETTER
BUSINESS

48%

Underrepresented groups1

2022
U.S.
workforce

51%
46%

2022
U.S. officers
and managers244%

Not disclosed

BETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being

Global employee breakdown by region

Global gender diversity3,4

Number of employees

Learning andDevelopment

4,197

Community Impact% female of global workforce population
4,834

4,486
3,665

49%

5,068

3,977

39%

BETTER
SOLUTIONS

31%

764

APPENDIX

32%

38%

32%

32%

32%

33%

895

Americas(excl. U.S.)

APAC
2021

EMEA
2022

U.S.

2021

Full-time = 14,181
Part-time = 245

Underrepresented groups include employees who identified as Asian, Latino/
Latina, Black, Native American/Alaskan Native, Hawaiian/Other Pacific Island or
two or more races.
2
Officers and Managers are calculated using the job categories: executives,senior managers, mid-level managers and first-level managers.
1

48%

41% overall

3

2022

Executive

Mid-level Manager

Non-manager

Senior Manager

First-level Manager

Overall

Executives represent CEO, CEO-Direct, Exec Directors, GMD, SMD and MD level;
senior managers represent AMD, Country Head, SVP and Senior Director level;
mid-level managers represent VP-SCO, VP-SA, VP and Director level; first-level
managers represent AVP-Analyst, AVP, Associate Director and Assistant Director
level; non-managers represent Analyst, Assoc Analyst, Assoc and Associate level.

4

The data by seniority represents approximately 90% of employees (excludes
certain nonwholly owned subsidiaries and newly acquired companies for which
this data was not yet available). The total breakdown by gender represents thefull employee population.

|

38

Diversity, Equity and Inclusion

Attracting talent throughinclusive recruiting1
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment
Community Impact

BETTER
SOLUTIONSAPPENDIX

We believe that who and how we hire is critical to ourbusiness success. We evaluate candidates based on their
qualifications and not their race, ethnicity, gender, age
or any other protected characteristic. To remove barriers
to identifying the best talent and to expand access tojobs at Moody’s, we focus on the following:» Selecting a diverse interview panel to provide varied
points of view during evaluation.
» Leveraging diverse recruiting tools and job boards
to build a robust talent pipeline.
» Presenting diverse slates of qualified candidates
for our open positions.
» Establishing consistent interviewing practices.
» Formalizing feedback collection by using consistent
rating scales to promote objective feedback
on candidates.
» Holding debrief meetings where the most juniorinterviewer on the panel provides candidate feedback
first and the hiring manager last, to allow for an
inclusive process in which all voices are heard.
Additionally, we partner with the Association of Latino
Professionals for America (ALPFA), American Corporate
Partners, Fairygodboss, MyGwork, Professional Diversity
Network, PowerToFly, SeekOut and other organizations
to host opportunities to meet candidates from a varietyof backgrounds, including people with disabilities,
people identifying as women, and/or as part of the
LGBTQ+, Latino/Latina, Black or veteran communities.
In 2022, we launched our veterans splash page, which
gives helpful job search, application and interview tips toveterans and military personnel looking to transition tocivilian life.

1

Refers to employees hired to Moody’s Corporation and its wholly owned
subsidiaries, as well as employees integrated into Moody’s throughrecent acquisitions.

|39

We also kicked off our neurodiversity hires pilot in 2022,
recruiting five people on the Autism spectrum to fill
highly technical, analytical open roles in our Moody’s
Analytics Structured Finance business. Based on thepilot outcome, we plan to expand the program.
For more information on our recruiting efforts, see
Enhancing our talent attraction efforts.

81%of RE-IGNITE participants havebecome Moody’s employees since
the program started in 2017

RE-IGNITE
RE-IGNITE is our 16-week paid returnto-work opportunity for mid- to seniorlevel individuals of all races, ethnicities,
genders and ages who are restarting theircareers after a minimum two-year hiatus.
Professionals who wish to return to theworkforce after time away gain accessto hands-on project work, leadershipdevelopment and networking opportunities,
as well as visibility into our unique culture.
Together, these tools can help prepareindividuals for a successful return to theworkforce. In 2022, we expanded the
RE-IGNITE program from the U.S. and U.K.
to Canada and India, and plan to launch inFrance in 2023.

AMERICAS

101

APAC

49

EMEA

40

We welcomed 190 summer interns from around the world in 2022 — some of whomconnected with us through organizations we partner with, including Prep for Prep,
Executive Leadership Council Scholars and Bridging the Gap. Above is the geographicalbreakdown of our 2022 summer intern class. This data reflects an expansion of ourinternship program in APAC and Costa Rica, as we continue to support our businessgrowth in these areas.

Diversity, Equity and Inclusion

A MESSAGEFROM OURPRESIDENT
& CEO

ABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment
Community Impact

BETTER
SOLUTIONSAPPENDIX

40

Building our talent pipeline

Programs for Veterans

Building Latino/Latina Leaders

We are committed to building an inclusive pipeline oftalent, including leaders from diverse backgrounds, andempowering them to make significant contributions to
the markets and communities they serve. Our efforts
include, but are not limited to, the following:

Moody’s Veterans Program is a partnership between
our Veterans Business Resource Group (VBRG) and
Columbia University to prepare veterans for careers
in finance, technology and economics. In the 2021-22
academic year, five scholars joined the program andeach received funding to support their studies. Scholars
were encouraged to participate in our summer internshipprogram, as well as a mentorship program involving
the VBRG.

Moody’s is now a lead sponsor for ALPFA, theAssociation of Latino Professionals for America, which
provides leadership development workshops and career
resources that support Latino/Latina people seeking
to reach the next level in their careers. Our multi-year
partnership with ALPFA, which included sponsoring theorganization’s 2022 convention, will help us strengthen
our Latino/Latina talent pipeline and develop Latino/
Latina leaders.

Ray McDaniel Scholarship
2022
SUSTAINABILITYHIGHLIGHTS|The Ray McDaniel Scholarship is a five-year, $1.2 million
program to provide 30 three-year scholarships tohigh-achieving undergraduate Black students. Our goal
is to offer the students job opportunities after they
graduate. In 2022, we organized a fully sponsored,
week-long immersion program at our headquarters,
during which the Ray McDaniel scholars visited the
New York Stock Exchange and met with several seniorleaders at Moody’s. The experience allowed the scholars
to begin building their Moody’s network.

In addition, members of VBRG provided mentoring andcoaching to veterans entering the corporate workplacethrough our partnership with American Corporate
Partners (ACP). ACP is a nonprofit organization
dedicated to helping military service members in the
U.S. transition to the private sector through one-onone mentoring with people already in the businessworld. Mentors and mentees are paired for one year andencouraged to discuss topics such as building resumes,
interview preparation, networking and professional
development, among others.

“Moody’s is proud to partner with Columbia
University in support of our veterans. Our
collaboration connects us with exceptional
talent, who are focused on accomplishing
the mission at hand, coming up withcreative solutions and working together
for something bigger than ourselves. These
are important values in the
military that also align to
our mission and values.”
Tameka Alsop
Chief Administrative Officer andGlobal Executive Sponsor of VBRG

Supporting Women in Islamic FinanceWe partner with the Women in Islamic & EthicalFinance Forum (WIEFF) — an independent, international
networking platform where industry professionals
can meet, collaborate and support the interests of
the Islamic finance industry — to match senior leader
mentors at Moody’s with mentees from the WIEFF
membership. Through our partnership, we support
members’ learning and professional development, andhost networking events where senior leaders from
Moody’s share their expertise and career insights withthe attendees.

“Growing motivated, inspired businessleaders and ensuring they have a solid
runway for success has never been more
relevant. Through our ongoing collaboration
with ALPFA, we strive to empower
Latino professionals to realize
their career ambitions.”
Rob FauberPresident and CEO, Moody’sDiversity, Equity and Inclusion

Bolstering our employee inclusion training

A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement

Creating a culture of inclusion and belonging is
expected of all leaders at our Company — and thatis the driving force behind our Inclusion Evolution
employee training program. The program is focusedon two critical components:» Understanding ourselves and the social context thatcreates our identity.
» Building a culture of inclusion by exploring
unconscious bias, empathy and belonging and by
advocating for others.
After the program, participants are given additional accessto e-learning courses and toolkits to build a culture ofinclusion in their own teams.
The expanded content catalogs of our learning anddevelopment platform, Moody’s University, offer 175
pieces of learning to our global workforce — over 640
hours of books, podcasts, videos and courses specificallyaddressing DE&I topics. In addition, we offer language
learning for 12 different languages.

Employee Healthand Well-being
Learning andDevelopment
Community Impact

BETTER
SOLUTIONSAPPENDIX

Supporting women throughlife’s milestones
Piloted in 2021 to support our female
employees and educate colleagues, the“Menopause in the Workplace” program
expanded further, offering new e-learning
modules for managers and employees. We also
added the Menopause Plan to our U.K. healthcare offering. As a result of these initiatives, wehave been formally accredited as a Menopause
Friendly Company by the independent
organization Henpicked in the U.K.

|

41

Working toward equity in our
workplace and communities
We continued to work toward creating equitable
opportunities in the communities where we operate
through employee engagement initiatives and social
investment. For example, we committed $1 million in
2021 to nonprofits advancing equity and inclusion forBlack communities globally. One of the organizations,
United to Change and Inspire (UTCAI), leveraged ourinvestment to accelerate the development of holistic
education and training programs for disadvantaged
youth in the U.K. — specifically alternative vocational
and well-being-focused curriculum for school children.
Throughout 2022, our financial support helped secureover 3,000 seats for children from mainstream inner-city
schools in the U.K.

Additionally, members of our BRGs participated inmentoring programs within their local communities. As
part of our partnership with Hetrick-Martin Institute,we support Queer Coders, which provides professional
development and technical training to LGBTQ+ youth
aged 18–24. Members of Moody’s New York Pride BRG
mentored the 2022 Queer Coders cohort to help thestudents develop their interview skills. Furthermore,members of our Women’s BRG mentored underserved
students from Gladesmore Community School, locatedin the U.K., needing study and career guidance.
We were also one of the first companies to commit toachieving the Management Leadership for Tomorrow(MLT) Black Equity at Work Certification. To achievecertification, companies undergo a rigorous
DE&I assessment.

“The team at Moody’s has inspired us tokeep pushing the boundaries in DE&I,
ensuring we create a better and fairer
future for our young people.”
Troy DavisManaging Director, UTCAIDiversity, Equity and Inclusion

Creating opportunities for mentorshipand career development
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment
Community Impact

BETTER
SOLUTIONSAPPENDIX

We have dedicated talent development programs
that aim to create a workplace where employeesof all backgrounds and experiences are encouraged
to grow and succeed. Some of these programs arehighlighted below:

At TIDE’s halfway point, we surveyed
participants in the cohort to better understandsentiment and highlight the impact of the
program on individuals and the organization
as a whole. Select findings included:

TIDE

97%

retention rate of
TIDE participants.1

91%

of participants agree
or strongly agree theircareer ambitions can befulfilled at Moody’s.

We launched a second cohort of TIDE (Talent Aspirations& Alignment, Insights, Development & Career Planningand Exposure & Expansion), an enhanced nine-monthcareer-development program which focuses on highpotential employees, including women, LGBTQ+
employees, people of color, veterans and neuro-diverse
employees. Through TIDE, participants gain visibility
across the organization, cultivate relationships withsenior leaders who provide support and mentorship andhave access to robust and individualized professional
development resources. For the 2022 program, we
introduced several new elements:» Learning Pods: Small groups of participants meetmonthly to network, learn from each other and gain
exposure to different aspects of Moody’s.
» External speaker series: External experts inleadership, entrepreneurship and innovation facilitate
learning sessions for TIDE participants.
» Breakfast with Rob: Small group sessions are heldwith Moody’s CEO to engage with TIDE participants
and provide a unique perspective on the company’sbusiness strategy.

91%

of participants agree
or strongly agree that
TIDE is a key part of ourcommitment to DE&I.

87%

of participants agree
or strongly agree they
are more aware of andvocal about theircareer ambitions.

87%of participants agree
or strongly agree they
have expanded theirinternal networks.

1

As of December 31, 2022.

42

RISE

BRG-led Mentorship Programs

RISE (previously our Senior Women’s Leadership
Development Program) is a nine-month interactive
leadership development program for high performing
senior women across Moody’s. The revamped
program, which kicked off in 2022, aims to address
the unique challenges women face in the workplace. It
provides frameworks and tools to enhance leadershipeffectiveness through a continuous development
process that involves course-specific learning, peer-topeer interactions, a 360-degree feedback process withpersonalized development planning and more.

In our BRG-led mentorship programs, peers can gather
to engage with leaders and one another to further theirprofessional development. The Pan-Asian Impact Group
mentoring program, which celebrated its sixth year in
2022, was also expanded to APAC, while the Women’s
BRG mentorship program celebrated more than adecade of mentorship and career growth. In addition,
our Generational BRG reverse mentoring program
expanded to cover both U.S. and EMEA regions. Our
Latino/Latina BRG, ConectaMos, also offers a programthat pairs mentors and mentees to discuss career goals
and advancement strategies.

“RISE has helped me identify what I
want from my career at Moody’s. It
has taught me proven methods tobetter face challenges, communicate
my achievements to others and makeconnections that enable me to achieve
my goals. Through RISE, I have built
bonds across geographies and businesslines that could benefit us asindividuals and Moody’s
as an organization.”
Maria Iarriccio
VP, Senior Credit Officer» TIDE Leadership Series: Participants gain access to
new learning modules based on shared interests andcommon development needs.

|

For information on other learning and development
programs, see Leadership development programs.

Supporting our LGBTQ+ colleagues
and community
We have partnered with LGBT
Great, the global LGBTQ+
financial services membershipcommunity hub, which provides
our LGBTQ+ employees andallies with an opportunity to participate ina mentorship program. It connects mentees
with mentors across different regions aroundthe world to network among peers, build
confidence and learn new skills.

Diversity, Equity and Inclusion

SUPPORTING OUR PEOPLE,
COMMUNITIES AND INSTITUTIONSA MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment
Community Impact

BETTER
SOLUTIONSOur DE&I strategy encompasses our entire value chainof people and institutions. The Creating Opportunities
for Racial Equity (CORE) initiative is central to ourcustomer-focused DE&I efforts.
CORE was created to accelerate our work toward thecreation of economic opportunity for underserved
and underestimated communities, guided by ourcommitment to DE&I and racial equity. CORE aims todevelop partnerships, share expertise, invest capitaland utilize software and services to assist community
development financial institutions (CDFIs), minority
depository institutions (MDIs), diverse financecompanies and diverse asset managers.

“What I appreciate most about Moody’s
approach to advancing racial equity istheir intentionality — reaching out toorganizations that are experts, sitting
in and serving the demographics thatthey are trying to impact.”
Nicole Elam

Our CORE roadmap
PILLAR

Strategic
Themes

|

43

1

2

3

ENGAGEEMPOWERINVEST

Broaden CORE’s outreach,both internally and externally,
and communicate

Strategic education on
Moody’s capabilities, portfolio
and overall products

Long-term global growthand scale

Leverage a streamlined
and efficient crosscompany approach

Provide more access, andunderstanding of how, toleverage capital

In 2022, we made significant progress on several customer initiatives:
DEVELOPED PARTNERSHIPSIn alignment with the Biden-Harris administration and other public and private institutions, we became a founding member of the Economic Opportunity
Coalition (EOC), a historic effort to catalyze and align public and private investments to accelerate inclusive economic growth. Our scaling efforts also included
multiple meetings, conversations and webinars with multicultural stakeholders such as banks, asset managers and potential partners.
In addition, we formed the CORE advisory board, a group of internal and external experts who lend their skills, guidance and knowledge to offer strategic insightsthat helps Moody’s CORE to achieve its goals. Current advisory board members come from the National Bankers Association (NBA), the National Association of
Securities Professionals (NASP) and Trident.

DIVERSIFIED DEPOSITS
As of December 31, we deposited $11.5 million into Black-owned banks. We expect to expand our deposits to include three new MDIs in 2023.

President & CEO,National Bankers Association

SHARED EXPERTISE
APPENDIX

With our EOC partners, we are establishing a Center of Excellence for more than 1,000 CDFIs and MDIs serving over 1 million people in low- to moderateincome communities each year. The Center will provide access to technology, data and professional expertise from EOC members.
We also produced the first two segments in an ongoing series of CORE Conversations, which aim to foster meaningful dialogue around challenges and solutions
that impact multicultural stakeholders. And we hosted our first Multicultural Solutions Summit, which convened a group of our strategic partners, seniorleadership members and Moody’s employees to participate in robust discussions on demystifying the perceived risks of CDFIs and MDIs. The event was attended
by representatives from nearly 30 different institutions.

Employee Attraction and Engagement|

44

Employee Attraction and Engagement
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment
Community Impact

We are a people-driven company, andattracting and retaining the right talent isparamount to successfully executing ourbusiness strategy. A critical component of
our talent attraction and retention strategy
is investing in our people at every stage ofthe employee life cycle — including offering
competitive compensation and benefits —to build and retain an adaptive, engaged,
diverse and inclusive workforce.

ENHANCING OUR TALENTATTRACTION EFFORTS
In 2022, we made a series of improvements to therecruitment process, including:» Adding functionality to our career site that enables
us to host and market recruitment events.
» Launching an internal mobility website for our
employees to better view career opportunities
within the organization.
» Continuing to drive recruiter usage of our candidate
relationship management system to help us build
diverse talent pipelines.
» Undertaking an extensive review of our employeereferral program and updating the program to makeit easier for our employees to refer people in their
network to apply at Moody’s.
To see how our talent attraction process is addressing
diversity, equity and inclusion, see Attracting talentthrough inclusive recruiting.

Early careers and rotational programs
BETTER
SOLUTIONSAPPENDIX

Moody’s has a number of early career and rotational programs that allow recent graduates to explore theirinterests and build their skills, while also gaining exposure to potential careers at Moody’s. These programs
include MIS Early Careers, MA Graduate Program, our Global Summer Internship Program and our Working
Students roles. We continued hiring for our rotational Data Science Development Program and expanded our
two-year Moody’s Analytics Technical Rotation Program, which now provides opportunities across Moody’s,
including in Moody’s Investors Service Tech and Central IT.
In 2022, 34 participants were enrolled in our rotational programs. Among that group, five individuals
became Moody’s employees after graduation.

Employee Attraction and Engagement

A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment
Community Impact

BETTER
SOLUTIONSAPPENDIXINVESTING IN EMPLOYEEEXPERIENCE AND ENGAGEMENT
As part of Moody’s University programming, theLeadership Academy launched two key programs
designed to support employees who are just startingout at Moody’s or transitioning to a manager role:» The New Hire Orientation Program: Designed todeliver a globally consistent new hire experienceand accelerate job readiness. The interactive
two-day orientation enables new hires to startbuilding connections and learn about what makes
Moody’s unique.
» The Manager Onboarding Toolkit: An interactive
resource that guides managers as they support newhires through their onboarding journey. The toolkit
includes ready-to-use templates and other resourcesto accelerate the readiness of new hires.
To improve our employees’ experience, we created
two new leadership roles focused on refining our global
approach to employee engagement: SVP-Employee
Experience and VP-Talent Strategy. These roles will focus
on building an integrated talent management strategy,
providing for the successful implementation of employee
well-being initiatives, and creating processes andprograms to better assess, develop, engage andretain our talent.

As part of our continued drive for enhanced
metrics and analytics, we launched a Post New
Hire Survey for employees to complete after
being with us for 90 days. Key metrics from thesurvey include:

I would
recommend
Moody’s as agreat place
to work

SCORE OF86

11 points higher
than the global
benchmark

SCORE OFI feel a senseof belonging
at Moody’s

82

9 points higher
than the global
benchmark|45

Employee Attraction and Engagement|

46

LISTENING TO AND LEARNINGFROM OUR EMPLOYEESEach year, we encourage our employees to provide
anonymous and candid feedback through our Business
Engagement Survey (BES). The BES helps us to:
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment» Understand our employees’ level of engagement at
periodic intervals throughout the year (for example,
through shorter, more frequent pulse surveys).
» Inform our actions through the use of a validated
measure of engagement.
» Reinforce managers’ roles to take action by dedicating
specific resources to address opportunity areas
identified by the survey results.
» Assess employee sentiment around longevity andintent to stay, which helps us to frame actions thatdrive talent retention.
We continued to refine our approach, reducing thenumber of survey questions and focusing on six
key drivers of engagement: Purpose, leadership,
manager effectiveness, well-being, connection andempowerment. Our 2022 employee engagementscore was 75 — measured by employees reporting how
happy they are at Moody’s and whether they would
recommend working here.

We use the feedback we received through the BES
as a vital input into making decisions to improve our
employee experience. Notable examples of how weare responding to employee feedback include:» Our employees reported that work flexibility was animportant driver of engagement and productivity,
while also noting that they are looking for more ways
to connect socially with one another. PurposeFirst,
our new framework for deciding where and how
to collaborate, will provide opportunities to build
stronger connections (see Defining our new way ofworking with PurposeFirst).
» While most employees intend to stay at Moody’s,
they are also interested in more career pathing anddevelopment opportunities, which we are providing
through our expanded suite of learning offerings (seeLearning and Development). We also plan to launch apilot career development platform, which will provide
employees access and agency to develop their careers
using an internal marketplace of continuous growth
opportunities. In addition, we are currently evaluating
our recognition framework in order to build better
habits in our peer-to-peer and leader-to-employee
recognition approach.
» Employees value their managers and would
recommend them to others. To reinforce ourmanagers’ capabilities, we will be launching a manager
capability framework to create accountability andsupport them in meeting their key responsibilities(see Managing Our Workforce Performance).

Community Impact

BETTER
SOLUTIONSAPPENDIX

Business Engagement Survey results1
80

76

76
75

Globalbenchmark3

73
72

2020

2021

2022

Employee engagement score2

2020

2021

2022

Well-being favorability score4

During the pandemic, the well-being of employees and their families was our top priority and during this period
additional programming and resources were established to provide employees with the care they need. However, since
the pandemic, we have seen a decline in our well-being favorability score and have utilized employee feedback to address
the evolving needs of our people. We are developing several initiatives to address additional aspects of well-being, basedon the understanding that it is not limited to our employee physical and mental health but encompasses other aspects
like workplace flexibility, integrating work and personal life and disconnecting from work during non-work time.
For more information on how we’re integrating holistic well-being principles into our employee programs and initiatives,
see Our global well-being approach.

The data represents approximately 90% of employees (excludes certain nonwholly owned subsidiaries and newly acquired companies which are not integrated in Moody’s IT
systems and therefore the survey was not distributed to them). Employees participating in employee engagement surveys in 2022 - 85%; 2021 - 84%, 2020 - 86%.
2
Employee engagement score is an average of two items: “How happy are you at Moody’s?” and “Would you recommend Moody’s?”
3
Survey third-party service provider’s global benchmark is based on cross-client, cross-industry and cross-country company data from well over 700 organizations and over
150 countries.
4
The favorability score is the average percentage of employees who agree Moody’s takes a genuine interest in their well-being. Global benchmark for the well-being favorability
score is not available.
1

Employee Attraction and Engagement|

47

MANAGING OUR WORKFORCEPERFORMANCE1

Diversity, Equity
and Inclusion
Employee Attraction
and Engagement

12

Refers to employees in Moody’s Corporation and its wholly owned subsidiaries, as well as employees integrated into Moody’s through recent acquisitions.
Limited duration employees, employees in a probation period or who joined Moody’s from newly acquired companies do not participate in the GPS performance review process.
Certain nonwholly owned subsidiaries for which this data was not yet available are excluded from the analysis. Therefore the data represents approximately 80% of the total
employee population.

ADJUSTPS

G

In 2022, 99% of employees received a performance andcareer development review via GPS.2

OC

APPENDIX•BETTER
SOLUTIONSG DI AL O
O IN
GU
NG
ERFOR
•P
M

E

Community Impact

During the year-end review process, managers provide
a written, qualitative summary of performance, in
addition to performance ratings, and host a live feedback
conversation to review outcomes of the performanceyear. Managers are encouraged to incorporate feedback
from three to five key stakeholders into each employee’s
review. Employees also have the opportunity tocomplete a self-assessment summarizing theirstrengths and development opportunities.

MmLearning andDevelopment

OB
Dy JEC
na

N
IOard
S
S rew

TING
SET nning
VE rk pla
TI ic wo

Employee Healthand Well-being

As part of our GPS framework, we continue to leverage
our core success factors — behaviors that are expectedof all employees and leaders — and to provide clear andcommon definitions for evaluating business outcomes
and behaviors. In 2022, we published specific criteria to
guide our performance assessment, including guidanceon applying the various ratings on our scale. We alsodelivered GPS manager training programs ahead of ouryear-end review process.

SUCCEED

CCEED

BETTERLIVES

For more on our DE&I programs, see Diversity, Equity and Inclusion.

NT

IN U

D
O US FEECK

BETTER
BUSINESS

There are additional expectations and measures for managers. Managers are evaluated on the Leadership SuccessProfile — which includes “Empower and Develop Talent” (e.g., “Fosters an inclusive workplace that values diversity
and promotes belonging and well-being”). In addition to being embedded in performance evaluations, thesebehaviors are also incorporated into our employee and manager development programs.

SU

ABOUT
MOODY’SO

GPS encompasses all aspects of performance
management, including dynamic objective setting,performance evaluations and continuous feedback. It
allows employees to navigate their Moody’s careerswith a set of shared success factors and a qualitative
rating scale that measures both business outcomes andbehaviors, driving business results and building a cultureof growth. This framework also helps tie individual
objectives to our broader Moody’s scorecard objectives,in order for our workforce to focus on efforts that support
our strategic agenda.

Our employees are expected to demonstrate a shared set of behaviors that contribute to a culture of growth andinclusion. As part of the GPS review, all applicable employees are evaluated on our Core Success Factors — including“Authentic and Aware” (e.g., “Listens with empathy and genuinely cares for others”) and “Collaborate with Purpose”(e.g., “Fosters an exchange of perspectives in an open-minded and inclusive manner” and “Listens effectively to hearand value different perspectives and viewpoints”).

GRO
W

2022
SUSTAINABILITYHIGHLIGHTS

Incorporating diversity, equity and inclusiond

We continued to leverage the performance management
approach we adopted in 2021 — termed Grow, Perform,
Succeed (GPS) — which emphasizes our commitment toemployee growth and development.

YEAR-END D
Evaluate measu ISC
re Uan

A MESSAGEFROM OURPRESIDENT
& CEO

BA

-I N

ID

Co - Y E A R C H E C K o w
nner
ct, m o nit o r a n d g

DEVELOPEXECUTE

Employee Attraction and Engagement

2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment
Community Impact

BETTER
SOLUTIONSAPPENDIX

The global labor market continued to present achallenging environment in which companies competed
for strong talent. In light of this dynamic, we piloted
several initiatives to help engage and retain talent, andto position us to better understand our workforce.

The year-over-year increase in the voluntary turnoverrate is likely due the overall strength of the job market
globally, especially for technology-related jobs. The
year-over-year increase in the involuntary turnoverrate is primarily a reflection of our post-COVID-19
geolocation strategy, which includes the rationalizationand exit of certain real estate leases and a reduction in
staff, including the relocation of certain job functions.

In 2023, we plan to deploy a standard approach toglobal talent reviews, providing consistency to theentire organization in how we identify, engage andretain future leaders.

For example, we initiated the Stay Conversations
initiative, designed to provide recognition for highimpact talent and explore what employees findmeaningful and engaging as part of their professional
journey. These conversations focus on identifying
development opportunities, with the goal of keeping
employees engaged in their role at Moody’s. Following
the conversations, managers are asked to document andcomplete specific development actions to help translate
insights gleaned through the conversations into tangible
progress against the professional goals our employees
articulate. Stay Conversations are a critical path tobetter understand our talent, their employee experience,career paths and feedback, ultimately resulting inincreased high-impact talent retention.

New employee hires1

15%

3,541

13%

2,707

4%

3%
2021

We also tested a framework for identifying highpotential employees and critical roles across theorganization. We anticipate that standardizing thisframework will help leaders across our organization
more effectively and objectively assess talent, identify
future leaders and communicate with one another aboutdevelopment and growth opportunities for employees.
We identified and track over 70 strategic roles across
Moody’s, striving to have no more than 10% of theseroles vacant at any given time, an internal target that
we achieved as of December 31.
Excludes hires through acquisition.
Positions that had been open for 90 days or longer as of December 31st ofrespective year.
32021 data excludes certain nonwholly owned subsidiaries and newly
acquired companies not integrated in Moody’s IT systems.

48

Employee turnover rate

WORKING TO REMAIN AN
EMPLOYER OF CHOICEA MESSAGEFROM OURPRESIDENT
& CEO

|

2022

39%
2022 new hiresby gender

61%

Male

Female2021

2022

Voluntary turnover

Involuntary turnover

1%

Talent attraction
2021

2022

Number of unfilled
positions (rounded)2,3

320

230

Open positions filled
by candidates incalendar year3,4

20%

16%

Average hiring cost/
FTE (USD, rounded)5$6,000$5,1002022 turnoverbreakdown bygender

60%

Male

1

4

2

5

2021 metrics were restated due to a change in methodology.
2021 metrics were restated due to a change in methodology and to include
nonwholly owned subsidiaries.

39%

FemaleNot disclosed

Employee Attraction and Engagement

A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being

PROVIDING COMPETITIVECOMPENSATION1

OFFERING COMPREHENSIVE
BENEFITS1At Moody’s, we are committed to paying all of ouremployees equitably and fairly. We review our pay
practices globally every year with the goal for pay equity
between women and men performing comparable roles.
In the U.S. we also review pay equity between racial/ethnic groups annually. While no statistical analysis canaccount for all elements that influence an employee’s
pay, we consider meaningful factors such as job family,
location and educational level. When we find inequities
in our pay practices, we make the requisite adjustments,
and the findings are reported to our Board of Directors.

We are committed to providing our employees with acompetitive benefits program designed to care for themand their families — including support for their physical,
mental and financial well-being. We promote preventive
care and awareness and support a healthy lifestyle.
Promoting financial wellness and supporting flexible
work arrangements are critical to creating a work
atmosphere in which people feel valued and inspired
to give their best at work.

We strive for our compensation to be driven anddifferentiated by performance and understood andvalued by all. An important part of our compensation
philosophy is aligning compensation to local markets(a market can be considered a country, or a region
or industry). Each year, we anonymously submit
compensation data for each job, based on job
descriptions. An independent consulting firm aggregatesand scrutinizes this information and provides us theaggregated data, so we can benchmark.

Learning andDevelopment
Community Impact

Our benefits are benchmarked routinely against themarket, using industry-specific data. Beyond delivering
health, welfare and retirement benefits and paid timeoff, including paid sick days, our benefits are extensive
and inclusive, including flexible work arrangements suchas remote work.
We made a number of updates to our benefit offeringsin 2022, including:» Expanded eligibility for infertility benefits in the U.S.
so that we no longer require a diagnosis of infertility.
» Added HIV/AIDS coverage and gender reassignment
services coverage to employees in our Hong Kongand Singapore offices.
» Added a company subsidy for parental benefits
in India.

BETTER
SOLUTIONSAPPENDIX

Refers to employees in Moody’s Corporation and its wholly owned subsidiaries,
as well as employees integrated into Moody’s through recent acquisitions.
2
Examples of medical services eligible for this travel benefit include cancer
treatments, transplants and reproductive health services.
1» Updated our U.S. medical plans to include travel andlodging reimbursement to provide enrolled memberswith access to covered medical services2 in cases
where they are not locally available. Examples of
medical services eligible for this travel benefit include
cancer treatments, transplants and reproductive
health services.

|49

Our employee benefits
Benefits offered to employees differ by work location; however, a benefits package might include:» Medical» Dental» Vision» Flexible spending account» Health savings account» Employee assistance program» Retirement savings/pension
termination indemnities» Life insurance» Short- and long-term disability insurance» Business travel accident coverage» Flexible work arrangements, including
part-time work
» Paid time off (vacation, personal days,
sick leave, marriage leave, child care leave,compassionate leave, study leave, military
leave, jury duty leave and holidays)» Parental leave (up to 10 weeks of paid leave
for the birth or adoption of a child in the U.S.,in addition to any short-term disability benefit
policy due to pregnancy or the birth of a child)» Educational assistance» Student loan pay-off program» Adoption assistance» Surrogacy assistance» Insurance coverage for infertility services andfertility preservation services» Commuter benefit plan
» Club memberships» Parking and transportation allowances» Car allowances» Meal benefits» Child care support, including back-up childcare services and discounted child-care
support options» Back-up elder care services» Discounted employee stock purchase plan
» Employee referral program» Financial planning» Matching gifts program forcharitable contributions» Auto and property insurance coverage discounts» Long-service awards» Free or discounted cultural memberships» On-site lactation rooms» Paid military leave» Voluntary hospital indemnity» Critical illness and accident benefits

Employee Attraction and Engagement

Supporting employees through ourassistance programs
A MESSAGEFROM OURPRESIDENT& CEO

Assistance programs are an important way we support
our employees — whether through confidential legal,family and mental health support or continuing
education and transition assistance.

2022
SUSTAINABILITYHIGHLIGHTS» Employee Assistance Program (EAP): We offer
a voluntary, free and confidential service to help
employees and their immediate family address
personal concerns that affect their personal wellbeing. The EAP provides short-term, problem-solving
advisory services through telephone counseling andonline resources on a wide range of matters, including
marital and family, interpersonal relationships,
personal and emotional, stress and burn-out, work
related stress, problematic substance use, critical andtraumatic incidents, conflict, grief, legal and financial
matters. The names of employees using the service
are not shared with Moody’s.

ABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment
Community Impact

BETTER
SOLUTIONSAPPENDIX» Education Assistance Program: We provide a
global Education Assistance Program that enables
employees to obtain tuition reimbursement toenhance skills that can improve job performanceand further career development. Reimbursement
amounts vary by location.
» Transition assistance programs: Our transition
assistance programs support employees who are
retiring or whose employment has been terminated.
These programs can include pre-retirement planningfor intended retirees, severance pay and job
placement services. We also offer outplacement
services in certain circumstances.

|

50

ESG fund investment options
Following the addition of our first environmental, social and governance (ESG) fund investment option in 2021 to U.S. employees’ Profit Participation Plan (401(k) plan), we
introduced a similar ESG integration investment fund in our U.K. retirement plans in January 2023. This new default investment fund features an ESG strategy in line withthe pension provider’s net-zero target of reducing the carbon intensity of their investments by 25% by 2025.

Employee Health and Well-being

Employee Health and Well-being
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESS

We are committed to creating a culture that supports the health and well-being of ouremployees and gives them the opportunity to flourish. To this end, we offer our employees
a comprehensive range of programs with resources and support for physical, mental andfinancial well-being, as well as support for flexible work arrangements.

Our approach to employee health and well-being
aims to:

PLACING EMPLOYEE WELL-BEING AT
THE CENTER OF HOW WE WORK1» Create a workplace where employees feel valued
and inspired.

Targeted support through our wellness programs andinitiatives aims to meet employees where they are on
their wellness journey and encourage greater work-life
integration, including:

BETTERLIVES» Provide an environment that fosters a culture ofindependence, inclusion, psychological safety andintellectual leadership.

Diversity, Equity
and Inclusion» Support peer collaboration and professional growth.

Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment
Community Impact

BETTER
SOLUTIONSAPPENDIX

Two highlights of our health and well-being efforts
in the past year were the continued integrationof well-being across our programs and initiatives
and the introduction of a framework that allows
us to better leverage the office as a space forin-person collaboration.

72%» Summer Fridays: Many teams participated in thisprogram, which included time off and flextime
on Fridays.
» Hybrid-Work Arrangements: Continued flexibility
and empowerment for employees regarding where
to work (see Defining our new way of working with
PurposeFirst).
» Onboarding/Technology Support: Ongoing tailoringof onboarding programs and resources, including
home office technology, to support new hires in aremote environment.

of employees in 2022 agreed
Moody’s took a genuineinterest in their well-being
1

Refers to employees in Moody’s Corporation and its wholly owned subsidiaries,
as well as employees integrated into Moody’s through recent acquisitions.

|51

Employee Health and Well-being

A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment
Community Impact

BETTER
SOLUTIONSAPPENDIX

Our global well-being approach
We continue to integrate holistic well-being principles —encompassing mental, physical and financial health —into our employee programs and initiatives. We aresupporting our employees’ career health through thepilot launch of a platform that will give them agency todevelop their careers using an internal marketplace ofcontinuous growth opportunities. In addition, we areworking to consolidate our well-being resources in asingle location on our intranet to support easier accessfor employees.
This approach is informed by previous work aimed atunderstanding the current state of wellness at our
Company through focus groups, stakeholder meetings,
employee survey data and an external well-being
assessment. As a critical input into the creation andevolution of our approach, several questions in our
Business Engagement Survey focus on evaluatingwell-being, including the ability to maintain worklife integration, understand priorities, feel a senseof belonging and perceive that Moody’s cares about
employees’ wellness. Answers to these questions
help further guide us in our approach to foster
employee well-being.

Additionally, we are developing a well-being dashboardthat provides metrics to assess the health of a team,group or region — including paid time off utilization,
turnover and other indicators of well-being.

Moody’s Momentsthat Matter
A total of 24 sessions in
2022 attracted more than
4,300 participants.
Our virtual well-being series, Moody’s
Moments that Matter, continued providing
employees with education and empowerment
on mental health, resilience and thriving in
an increasingly virtual world through articles,
videos and weekly live webinars. Sessions aredeveloped in close partnership with our BRGs
to improve topic resonance across employee
groups. Webinar topics in 2022 included
connection and belonging in the new worldof work, gratitude, mastering motivation,
objective setting and feedback, sustainability
and turning obstacles into opportunities.

|

52

Employee Health and Well-being

A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment
Community Impact

BETTER
SOLUTIONSAPPENDIX

Defining our new way of working
with PurposeFirst

Protecting the health and safetyof employees

In 2022, we launched PurposeFirst, an initiative designed
to enhance employee flexibility and create opportunities
for collaboration while continuing to meet our businessobjectives. We designed PurposeFirst in response toextensive feedback from employees via surveys, focus
groups and one-on-one meetings with senior leaders.
Employees expressed a desire for more flexibility, greater
clarity on expectations and stronger connections
with colleagues.

We are committed to protecting the safety, healthand well-being of all employees and individuals in our
workplace. As a result, we are committed to complying
with all health and safety laws and regulations,
including laws and regulations relating to COVID-19
and/or other public health emergencies, in all countries
and localities where we do business.

PurposeFirst provides a decision-making framework
to help leaders determine how frequently their teams
should use collaboration spaces based on the types ofwork to be done, while also empowering employees towork outside the office when appropriate. The framework
helps leaders across the organization to make decisions
based on the needs of their specific teams, and provides
guidance for employees to make intentional choices
about how and where to work.

Occupational health and safety measures andprograms, such as communications, training andpolicies, are managed at either the local or regional
level. In addition, third-party providers in the global
real estate group track information relating to healthand safety items, such as workplace injuries, andreport such information where required (such as to
the Occupational Safety and Health Administrationin the U.S.).
Site-based inspections of workspaces are also
performed at offices, in accordance with local
requirements. All applicable inspections, which may
include such items as safety and fire inspections, arereported and filed with the authority having jurisdiction
for those offices with the endorsement of any relevant
work councils. Actions to prepare and respond to
emergency situations include semi-annual fire drills,
periodic emergency action plan reviews, shelter-inplace drills and life safety trainings.
Employees are also encouraged to report work-related
hazards. For more information on our reporting
mechanisms, please see Business Ethics andProfessional Integrity.

|

53

Learning and Development|

54

Learning and Development

1

A MESSAGEFROM OURPRESIDENT& CEO

Equipping our employees and leaders withtraining and education opportunities todevelop the skills they need to thrive, bothtoday and in the future, is an important
aspect of our people strategy. We provide
employees with ongoing learning anddevelopment opportunities — beginningwith onboarding and continuing throughout
their careers — to enhance business-specific,
leadership and core capability skills.

2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTER
LIVES

2022 was a transformational year in terms of learningand development, with the implementation of Moody’s
University and a significant expansion of our learning
catalog. As part of these efforts, we launched a newlearner technology experience, developed a mobile
training app and diversified learning modalities toaccommodate different learner needs. In addition,
our Chief Learning Officer role expanded to Managing
Director, Talent Attraction and Development to overseethat the learner experience continues throughout each
employee’s career at Moody’s.

Diversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment
Community Impact

BETTER
SOLUTIONS

Refers to employees in Moody’s Corporation and its wholly owned subsidiaries, as well as
employees integrated into Moody’s through recent acquisitions.
2
The data represents approximately 90% of employees (excludes certain nonwholly owned
subsidiaries and newly acquired companies not integrated in Moody’s IT systems). Data includes
hours captured in the Moody’s University and centralized online training programs, related
to completed training on topics such as compliance, professional development and diversity,
equity and inclusion. There are other training programs not captured in the scope of this metric,
like professional certifications, on the job learning, and other learning events not administeredthrough Moody’s University.
3
The training activity continued to decrease in 2022 due to a continued move to online training,
including a focus on shorter training duration. In addition, some employees returned to the officeand needed to adjust to a new schedule.
4
Officer-level data is calculated using the job categories: executives, senior managers, mid-level
managers and first-level managers.
52020 and 2021 training expenditure metrics were restated due to a change in methodology andto include nonwholly owned subsidiaries.

Employee learning highlights

50,000+80+

Learning
materials

Curated playlists
with 4,000+ followers

204,000

12

Languages offered
for learning courses

Total training hours (rounded)in 20222,3

Average training hours2,3

Average training and development expenditure per
employee (rounded)5$1,3001

APPENDIX

21

21

20

17

19

$1,200$1,000

14

2020

2021
Officer 42022
Non-officer

2020

2021

2022

Learning and Development|

55

INVESTING IN OUR PEOPLE WITH
MOODY’S UNIVERSITYA MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment
Community Impact

BETTER
SOLUTIONSAPPENDIX

Moody’s University, our enterprisewide learning andupskilling program, offers employees and leaders
training in the areas of enterprisewide skills, leadershipdevelopment, business-specific technical skills and corecapability development — all accessible via digital tools
to provide a globally consistent experience. Our learning
programs are focused on the following areas:» Enterprise Skills Academy is responsible fordeveloping essential, customized professional skills
to increase employee effectiveness in collaborating,communicating and influencing.
» Leadership Academy develops manager and leader
learning materials that support our leaders to be morechange-ready, resilient and agile in an increasingly
complex environment.
» MA Academy, with its dual focus on people andproducts, helps drive the establishment of “vocation”
by aligning learning to job families.
» MIS Academy is responsible for the training andcertification of all analytical and commercial staff
globally. In addition, it supports foundational
programs on credit and financial markets, external andinternal speaker sessions and training for strategicallyaligned global programs across MIS.
Moody’s University has also arranged strategic
partnerships with colleges, universities and certification
training centers to provide employees with access tocontinuing education, including master’s degree andcertification programs.

Business Learning Councils alignlearning priorities across Moody’s

Curated learning experiences
In 2022, we created curated learning experiences aligned to business initiatives, role development and skills
enhancement. Moody’s University created more than 80 playlists with 4,000+ followers. Highlights of theseplaylists include:

We leverage our Business Learning Councils (BLCs) tooperationalize our learning and development strategy
and identify priorities aligned to business objectives.
BLCs are chaired by learning leaders and council
membership comprises business unit leaders. BLCs serve
as a crucial two-way communication channel between
the centralized learning function and each business unit.

» Leader playlists featured executive and senior leadership sharing business knowledge to support our strategic andoperational initiatives. For example, our CEO launched a playlist on 2022 strategy, employee well-being and fostering
an inclusive workplace.
» Thematic playlists focused on skills development and professional development. In 2022, we created 35 playlists
in areas including data and data science, agility and adaptability, ESG, business etiquette and communication.

The BLC leadership team is responsible for:» Role-based curated experiences, including role-focused skills development journeys, focused on project
management and process improvement.

» Driving the learning and development strategy andfacilitating Moody’s University.
» Developing and implementing operational plans.
» Recommending buy vs. build options for learningand development programs.
» Driving reporting and metrics methodology
and infrastructure.

Our training in practice
MOODY’S-WIDE LEARNINGLEADERSHIPACADEMY

BUSINESS SPECIFIC LEARNINGENTERPRISE SKILLSACADEMYMA ACADEMYMIS ACADEMYCAPABILITY DEVELOPMENT

Content Experience

Onboarding

DE&I

ESG

ComplianceTechnology

GOVERNANCE, MEASUREMENT, DESIGN AND DEVELOPMENTLEARNING TECHNOLOGY AND INNOVATION

Learning and Development

A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment
Community Impact

BETTER
SOLUTIONSAPPENDIX

Leadership development programs

ESG training

Business-and skills-specific programs

Building a strong leadership pipeline is paramount to
our Company’s continued success. Key elements of
our leadership programs include strategic alignmentof learning and development solutions with businessneeds, as well as emphases on growth and defining
developmental pathways within the organization.

We offer extensive ESG training programs
to help employees develop careers as ESG
professionals, including:» Cornell Sustainable Innovation Program: A fivemonth program, developed with Cornell University,that targets cohorts of 40 mid-level managers andpromotes entrepreneurial thinking and value creation
through digital transformation.

Specific program highlights from 2022 include:» New Manager Springboard: We launched a selfdirected toolkit that supports the development of
employees who were recently promoted or newly
hired into managerial roles. The toolkit is designed tohelp new managers build practical skills to effectively
manage teams, including leading in a hybrid
environment, giving meaningful feedback, coachingand delegating work.
» Leadership Essentials: Over 200 managers learned
fundamental management skills and how to leadwith self-awareness and empathy.
» Leadership Insights: This program provided
participants with 360-degree feedback, development
planning and optional virtual coaching.
» Inclusion Evolution: People managers attended
a 3.5-hour instructor-led classroom experience tofocus on creating a more inclusive culture, where
every employee feels like they belong.
For more on our training and mentorship opportunities,
see Diversity, Equity and Inclusion.

» Sustainability and ESG Training Series: We rolled
out an internal sustainability and ESG training
series to promote a deeper understanding of oursustainability efforts among our employees. The series
covers a broad range of sustainability topics, fromenvironmental issues to human rights. It also explores
how our solutions help our customers incorporate
ESG considerations into their decision-making.
» MIS ESG Certification: The ESG Training andCertification Program is designed to provide analysts
with the core training they need in order to assessa credit’s exposure to E, S and G factors. Upon
successful completion of the MIS ESG exam, analysts
receive a MIS ESG Certification credential.
» ESG Data Analytics: We developed a comprehensive
upskilling program aiming to accelerate the transitionof our teams from ESG data collectors to skilled ESG
analysts. In these new upskilled roles, employees
are able to leverage technology benefits to provide
a strategic and analytic overlay of AI-driven datacollection to ultimately develop better data andproducts for our customers.

» Tech and engineering upskilling: Detailed job
competency and skills mapping for technical and data
job families, and curated associated learning paths
drawing on the array of extensive learning resources
available across Moody’s.
» MIS analyst training and certification program:
Provides the training required to establish
foundational business acumen and prepare forsuccessful completion of the Analyst Certification
Exam. All MIS analytical staff who participate in thecredit rating process are required to be trained andcertified, and must renew their core training andcertification every five years.
» Credit masterclass: MIS Academy and the MIS
Global Credit Council together offer an eight-course
series covering topics spanning the credit landscape,including global and regionally specific sessions.
» Credit innovations: Offers training on blockchain,
cryptocurrencies, decentralized finance and cyber risk.

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56

Learning and Development

A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESS

Continuous improvement of ourlearning programs
We evaluate the effectiveness of our learning
programs through a number of approaches, including
skills assessment tools, focus groups, surveys andneeds assessments deployed at the individual, teamand business-unit levels. The findings from theseassessments help make the initiatives more useful
and actionable.
The needs assessments ask employees and their
managers to evaluate:» The effectiveness of training for a variety of skill areas.
BETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment
Community Impact

BETTER
SOLUTIONSAPPENDIX» The importance of a particular skill area in helping
the individual or the business meet their objectives.
» Individuals’ training modality preferences.
We also completed a companywide learning needs
analysis, as well as a learning intake request process, toidentify and prioritize learning materials that result in
more intentional, role-aligned career pathways.
In an effort to raise the visibility of learner activity, wedeveloped and rolled out the first phase of the Moody’s
University Learning Dashboard. The dashboard provides
transparency into training activity and will be madeavailable to managers in 2023.

Process excellence
learning paths
Our Process Excellence Learning Paths areavailable to all employees and offer a wide
range of custom learning opportunities,
including instructor-led workshops, coachingand digital on-demand content.
The program provides an opportunity for
employees to learn a new approach toprocess redesign with our Lean Six Sigma
certification. Employees receive classroom
and on-the-job training and work withexperienced practitioners to apply Design
Thinking, Lean Six Sigma and project
management methods to analyze andimprove processes.
Participants complete actual projects that
impact our customers, improve process
efficiencies or enable further improvements
in technology or data management. When
polled, 88% of participants agreed orstrongly agreed the content from the training
was relevant to their role and professional
development, and enhanced knowledge ofLean Sigma Six topics.

|

57

Community Impact|

58

Community Impact
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment
Community Impact

BETTER
SOLUTIONSAPPENDIX

In 2022, we conducted a strategic review process to re-imagine a Community Impact
framework that increases the impact and clarity of our community efforts, better reflects
the values and interests of our people and aligns with our corporate mission. Our new
Community Impact strategy leverages our people, products and capital to incite meaningfulchange and unlock opportunities.

Our Community Impact strategy is comprised of
two components:» Employee Engagement Programs, which provide
opportunities for our people to collaborate andbuild crucial skills through volunteering, leadershipdevelopment and employee-led opportunities.
» Social investing via Moody’s Foundation,1 which
now has both strategic and responsive funding
priorities across social investing, crisis response,
community giving and corporate matching programs.

In addition to capital, we provide our partners withaccess to the talent and skills of our people, as wellas pro bono access to our research and solutions.
Research
Products &SolutionsInfluence &Networks

PeopleCapitalHONING OUR FOCUS AREAS FORGREATER IMPACT
As a result of the strategic review process, we focusedon developing deeper, more meaningful relationships,
in part by making larger investments to a smaller
portfolio of partners. Our new strategic funding priorities
address issues that affect people in emerging markets at
disproportionate rates, specifically:» Addressing income inequality by empowering
underestimated entrepreneurs to grow their small
businesses and uplift their local communities.
» Addressing ecological degradation by supporting
ecosystem restoration efforts that help create
resilient systems and communities.
1

Moody’s Foundation is a separate legal entity and is governed by its own Boardof Directors composed of members of management. This board approves social
investments and all grants that the Foundation makes.

SUPPORTING CAUSES WE
CARE ABOUT
Giving is a critical component to advancing ourambition. Our corporate, Moody’s Foundationand employee-led philanthropy efforts
culminated in a total of more than $7 million
donated in 2022.
More information about our grant-giving
guidelines and each of our beneficiaryorganizations can be found on theCommunity Impact microsite.

Social investments2$6.9 million$0.6 million$0.6 million$7.4 million$6.4 million$0.7 million$0.8 million$1.0 million$0.9 million$1.2 million$1.9 million$1.9 million$3.8 million

2020$4.2 million$3.1 million

2021

2022

Moody’s Foundation grants3

Value of volunteer hours5

Moody’s charitable contributions4

Employee-led giving6

Individual social investment items may not sum to total social investment
due to rounding.
3
Grants paid from Moody’s Foundation toward projects aligned with its
strategic focus areas, relief response and transition/exit grants.
4
Payments made by MIS, MA, and MSS that have been classified as
charitable contributions.
5
The data represents approximately 90% of employees (excludes certain
nonwholly owned subsidiaries and newly acquired companies that are notintegrated in Moody’s IT systems).
6
Grants paid from Moody’s Foundation toward the Matching Gifts andDollars for Doers programs.
2

Community Impact

Empowering small businesses

A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment
Community Impact

BETTER
SOLUTIONSAPPENDIX

We empower underestimated entrepreneurs by providingthem with the financial tools and knowledge to navigate
the lending process, grow their businesses and improvetheir communities.

Village Capital
Moody’s supports Village Capital’s programs in Latin
America and Africa. The Backing LatAm’s Middle Class
program, a three-month accelerator for startups in
Latin America, is working to improve economic mobility
and create pathways to the middle class. In 2022,
the program supported 10 startups from across theregion and focused on providing education and job
opportunities, expanding access to financial services
and otherwise helping people build wealth. Moody’s
employees volunteered to mentor entrepreneurs andserve on the program advisory board. Our previous joint
program with Village Capital in Latin America, Finance
Forward, earned a gold Best in Biz award for Most
Innovative Corporate Social Responsibility Programof the Year in 2022.

59

Supporting ecosystem restoration
The Future of Work program in Africa aims to support
economic mobility by helping entrepreneurs across thecontinent better prepare for the future of work, accessmore and better employment opportunities and build
careers. In 2022, the program sourced, supported andhelped scale 15 startups that are providing services
that help people take advantage of high-quality
employment opportunities.

2022 focus area summary1
Key impact metrics:$1.7 million invested
35 countries served
100% efficacy rate

Beneficiaries:

We continue to address ecological degradation by
supporting ecosystem restoration efforts that help
create resilient systems and communities.

Fundación MarViva
MarViva contributes to spatial and marine
management and the promotion of responsible
market dynamics for marine products and services in
Costa Rica. By partnering with Fundación MarViva,
we worked to improve data for conservation andmanagement of artisanal fisheries in the Gulf ofNicoya. Moody’s employees also participated in a
pro bono consulting project to assist MarViva inbetter understanding and effectively using financial
management tools. In addition, we offer MarViva
pro bono access to climate risk assessment tools to
support its work in this space.

1,900 total reach2022 focus area summary1
75% female
79% low-income“With Moody’s support, we
improved the investment readinessof innovative startups who arebuilding solutions to improve
economic mobility, expand accessto education and create pathways
to the middle class throughout
Latin America.”

Key impact metrics:$0.3 million invested
2 countries served
100% efficacy rate

Beneficiaries:

1,500 total reach
75% female
100% low-income

Allie Burns

CEO, Village Capital|

Measured using Mission Measurement’s Impact Genome Project methodology. Data is reflective of programming that was active in the calendar year and is not reflective of all
Moody’s grant partners.
2
Refers to employees in Moody’s Corporation and its wholly owned subsidiaries, as well as employees integrated into Moody’s through recent acquisitions.
1

Crisis response and community giving2
While the majority of our Foundation’s funding is
allocated to our two strategic priorities, we also takean intentional approach to responsive giving beyond
our focus areas. These giving areas include:» Crisis Response: Moody’s Foundation reserves a
portion of its budget for a crisis response fund, using
a scorecard to determine the appropriate response
to humanitarian crises and natural disasters. We
provide a double company match for donations
made by employees to select crisis response
campaigns, and when we have crisis response
funds remaining at the end of a calendar year, thedistribution of those funds is determined by an
employee vote.
» Community Giving: Launched in 2023, thisprogram empowers employee-led Regional Advisory
Councils, led by BRG co-chairs, to help decide
how funds are used. The aim is to use a portion ofFoundation funding to address pressing needs of
local communities.
» Employee-Led Giving: To promote employee
choice, employees are granted a company matchfor up to $2,500 in personal donations to approved
nonprofits, supporting causes that employees
are passionate about. In addition, our Dollars forDoers program provides a $500 contribution to an
approved nonprofit when an employee volunteers
40 hours or more. Employees that serve on
nonprofit governing boards for 40 hours or moreare eligible for a $1,000 contribution.

Community Impact|

60

VOLUNTEERING OUR EXPERTISE1

A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESDiversity, Equity
and Inclusion
Employee Attraction
and Engagement
Employee Healthand Well-being
Learning andDevelopment
Community Impact

BETTER
SOLUTIONSAPPENDIX

We encourage employees to apply their knowledge andexpertise to help strengthen their communities throughcompanywide initiatives. Our employee engagement
programs have three areas of focus:» Employee-led giving programs include company
match for personal donations, our Dollars forDoers and Community Giving programs (see Crisis
response and community giving), as well as Giving
Opportunities program through which employees cancreate charity fundraising initiatives and encouragecolleagues to participate.
» Team building and collaboration programs include
Moody’s TeamUp®, our annual month of service,
which unites people in local offices and acrossbusiness groups to complete service projects in theirlocal communities. Up2You offers employees and linesof business the opportunity to organize and promote
volunteer events of their choice and provides toolkits
and $500 in supply cost funding.
» Talent and leadership development programs
include Moody’s Future Solutions pro bono program
to help nonprofits build capacity and solve pressing
challenges, as well as nonprofit board service
resources for employees looking to join a nonprofit
board. These programs provide employees withthe opportunity for professional development
and advancement.
Through a partnership with Pyxera Global, we launched
our first virtual Moody’s Future Solutions™ Global
Pro Bono Consulting Workshop, a one-day event thatconnected Moody’s talent and nonprofits to address
specific challenges within the organization. The virtual1
2

Extending aid in Ukraine
As the Ukraine-Russia crisis evolves, we are helping provide transparency to the marketplace by sharing
research, outlook reports and other materials through our dedicated microsite. Through our crisis response
giving approach, we are also donating funds and double-matching employee donations to projects that
support Ukraine relief efforts. To date, we have donated approximately $765,000 to such projects throughthe Moody’s Foundation, and our colleagues have contributed an additional $502,000 through our Matching
Gifts program.

workshops brought employees together to support
14 global nonprofit partners in areas including project
management, finance, communications and data
management. These workshops provided an opportunity
for employees to give back to communities, further
develop their leadership skills and meet new colleagues
in different locations and functions.
Additionally, a number of our employees and leaders
sit on the boards of the organizations we support andprovide strategic guidance. Some of these organizations
include Asian Venture Philanthropy Network, Asociación
Conciencia, Village Capital and WEConnect International.
For more information on our Community Impact, see theCommunity Impact microsite.

Together, 27% of our employees
contributed over 14,000 volunteer
hours to their communities in 2022,
above the 17% industry average.2

Refers to employees in Moody’s Corporation and its wholly owned subsidiaries, as well as employees integrated into Moody’s through recent acquisitions.
Industry average is based on CECP’s Giving in Numbers: 2022 Edition survey.

Across the globe, our employees took it upon themselves, utilizing our Up2You program, to organize andlead initiatives in support of Ukraine. For example, employees in Lithuania created the Ukraine Task Force,
dedicated to helping refugees in the country by setting up donation and volunteering opportunities for
Vilnius-based colleagues. Opportunities ranged from arranging an item collection for the local Red Cross tovolunteering with local organizations to provide temporary housing accommodations for Ukrainian refugees.

Better Solutions

Better Solutions
Lives
ESG and Climate Capabilities|

61

ESG and Climate Capabilities

ESG and Climate Capabilities
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESBETTER
SOLUTIONSIn a rapidly changing business environment,
market participants face increasingly
complex and interconnected risks, including
those arising from environmental, socialand governance (ESG) and climate factors.
As a global integrated risk assessment
firm, Moody’s continues to meet growing
market demand by providing trusted
perspectives that inform a clear and holistic
understanding of risk, embedding ESG andclimate considerations into our analytics,
workflow solutions and research, andincreasing transparency on how ESG factors
affect credit ratings.

OUR CUSTOMER-CENTRIC APPROACH
Combining our long-standing track record in risk analysis with our deep domain expertise, Moody’s rigorous ESG andClimate capabilities help customers address evolving business needs and make better decisions.
Underwriting — Helping property and casualty insurers assess their counterparts’ ESG and Climate
performance pre- and post-bind.

Lending — Helping to integrate ESG and Climate scores and screening into financing origination, credit
analysis and decision-making.

Disclosure and Regulation — Supporting financial institutions with their regulatory reporting across ESG
and Climate, including disclosure requirements from the Task Force on Climate-related Financial Disclosure(TCFD), EU Taxonomy, the Sustainable Finance Disclosure Regulation (SFDR) and Pillar 3.

Supply Chain — Helping to integrate ESG capabilities into supply chain due diligence to support supplier/third-party onboarding and monitoring.

ESG and Climate
Capabilities$190

APPENDIXMILLIONin ESG and Climate
revenue in 20221

ESG Credit and Sustainable Finance — Incorporating issues that can materially impact credit quality,
including ESG and climate risk, into credit analysis; and supporting market participants’ analysis ofsustainable financing options through detailed assessments of an issuer’s sustainability frameworks
for bond and loan issuance.

Investing — Helping inform investment decisions and integration of ESG and Climate considerations into
portfolio management.

Fundamental Analysis — Helping market participants conduct foundational, entity and sector-level ESG
and Climate risk analysis and benchmarking covering both fixed income and equity viewpoints.

1

Approximate ESG and Climate revenue from Moody’s Investors Service andMoody’s Analytics as of December 31, 2022.

|

62

ESG and Climate Capabilities

A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSOUR COMPREHENSIVE ESG AND
CLIMATE CAPABILITIESWe continue to provide a range of ESG and Climate
capabilities spanning major asset classes and industries,
powered by rigorous analysis and transparent
methodologies. The table on the right outlines
these capabilities.

KEY THEME|63

OUR CAPABILITIES» MIS Issuer Profile Scores (IPS), assessing an entity’s exposure to credit-relevant ESG risks and benefits.
» MIS Credit Impact Scores (CIS), an output of the credit rating process that indicates the extent, if any, to which ESG factors impact the credit rating of an issuer
or transaction.

» ESG scores and data for global public and private entities from a double materiality lens.
» Alignment screening capabilities covering normative standards such as the U.N. Global Compact and U.N. Sustainable Development Goals (SDG) frameworks,
ESG

ABOUT
MOODY’S

as well as business activity involvement and sustainable goods and services to inform asset stewardship, portfolio management and construction of labeled funds
or indices.

» ESG risk monitoring and alerts assessing a company’s exposure to and management of various related incidents.
» Regulatory solutions comprised of rigorous and transparent datasets to support TCFD, SFDR reporting, EU Taxonomy alignment screening and Pillar 3 reporting.
» Research and content providing fundamental analysis on ESG and Climate topics across entities, sectors, sovereigns and sub-sovereigns.

BETTER
BUSINESS

Climate risk identification:» Physical risk: Forward-looking data capturing exposure to climate hazards for:– Thousands of listed companies with global corporate facilities;– Millions of U.S. commercial real estate properties; and– Global sovereigns and sub-sovereigns.

BETTERLIVESBETTER
SOLUTIONS» Transition risk data and analytics:– Carbon footprint data calculating a company’s Scope 1, 2 and 3 emissions, leveraging company disclosures and our proprietary estimation model that covers

ESG and Climate
Capabilities

large-cap companies and small- and medium-sized enterprises;

APPENDIX

Climate Risk

– Screening datasets that identify company involvement in fossil fuels and renewable energy activities and/or investments; and– Temperature Alignment Data that provides a forward-looking view of a company’s decarbonization targets and carbon emission trajectories against
recognized benchmarks.
Climate risk quantification:» Climate-adjusted Expected Default Frequency (EDF) that determines the probability of default for companies, powered by our award-winning EDF model andcovering physical and transition risk drivers.

» Climate Risk Scenarios, assessing macroeconomic drivers across a range of Network for Greening the Financial System climate scenarios.
» MIS Carbon Transition Assessments (CTA), which provide a consistent and verifiable means to analyze carbon transition risk for rated nonfinancial companies.
» Global Climate Models for a wide range of climate hazards.
» Second Party Opinions (SPOs) of labeled green, social, sustainability and sustainability-linked debt issuances for issuers and borrowers, provided by MIS.

Sustainable FinanceESG and Climate Capabilities|

64

Second party opinions

A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSOur SPOs serve the evolving ESG and sustainable financeneeds of fixed-income and credit risk practitioners as
they seek independent opinions on entities’ sustainablefinancing plans. We build on a track record for ourfamily of companies spanning 10 years, and collectively,
over 600 SPOs in over 30 countries. With over 30 SPO
analysts based in eight locations worldwide, we arecommitted to meeting the growing market demandfor independent assessments of labeled green, social,sustainability and sustainability-linked debt issuances.

ABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESBETTER
SOLUTIONSESG and Climate
Capabilities

APPENDIX

Notable second party
opinions included:» Kunming Rail Transit Group Co.,
Ltd., green finance framework thatwill fund urban rail transit with zero
direct emissions.
» Government of Egypt, sustainablefinancing framework that will fund green
and social projects and contribute tosustainable development.
» ENEL S.p.A, landmark sustainabilitylinked financing framework, including
targets linked to the EU Taxonomy.
» Air France-KLM Group, one of the firstsustainability-linked debt instruments
issued by an airline company.

Our SPOs provide an assessment of how financial instruments or financing frameworks align to relevant sustainability principles and the extent to which they are expected to contributeto the issuer’s advancement of long-term sustainable development. We express the overall assessment though the Sustainability Quality Score.

Sustainability Quality Score

SQS5

SQS4

SQS3

SQS2

SQS1

Weak

Intermediate

Good

Very Good

Excellent

The framework or instrument’s
overall sustainability profile
is considered to be of
weak quality.

The framework or instrument’s
overall sustainability profile
is considered to be ofintermediate quality.

The framework or instrument’s
overall sustainability profile
is considered to be ofgood quality.

The framework or instrument’s
overall sustainability profile
is considered to be ofvery good quality.

The framework or instrument’s
overall sustainability profile
is considered to be ofexcellent quality.

ESG and Climate Capabilities|

65

SPOTLIGHT ON CLIMATE AT MOODY’SA MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESBETTER
SOLUTIONSESG and Climate
Capabilities

APPENDIXAs climate change has emerged as one of the greatest
risk multipliers facing financial markets, we equip
customers with the transparent and reliable climate
insights they need to evaluate their climate risks andreadiness and make better, more informed decisions
regarding the risks and opportunities. We provide
forward-looking, location-specific and globallycomparable climate data, as well as economic andfinancial risk modeling and analytic capabilities.
To deliver a granular view of climate risk, we capture
both physical hazards and the implications of the
net-zero transition. We also offer on-demand physicalrisk scoring for real assets. Additionally, we provide
climate-adjusted macroeconomic forecasts with an
80-year horizon, and climate-adjusted probability ofdefault for listed and unlisted companies, powered by
Moody’s Analytics EDF model.

Case study: Moody’s and RMS
combined Climate capabilities
September 2022 marked the one-year
anniversary of our acquisition of RMS,
whose scientific rigor, technology platform
and catastrophe risk models help insurers,
reinsurers and other organizations evaluate
and manage the risk of natural disasters.
Moody’s RMS’ world-leading climate andnatural disaster risk modeling, widely
respected by the insurance sector to underpinbillions of dollars of risk transactions
every day, with a catalog of over 400 risk
models covering 120 countries, is now
also being adapted to the needs of banks,
asset managers, investors, corporates andgovernments. It has enabled us to build aneven more holistic picture of how acute andchronic present-day and forward-looking
climate risks interact with economic risks,financial performance and creditworthiness.
Our combined capabilities further position
us as a trusted source for climate risk data,
analytics and insights.
For example, for a group of banks, weleveraged our capabilities to assess over
300,000 U.S. properties across 50 states tounderstand the potential future financial
impacts of climate change. In anotherinstance, Moody’s RMS insights, leveraging
deep history of market loss data, enabled
us to estimate Hurricane Ian’s total impact
resulting in the most robust estimate fortotal private market losses covered byinsurance, at $67 billion, as recognized bymajor industry and mainstream media.

Supporting customers in addressing climate risk and opportunities

Implications for
Credit Ratings

Physical Risk

Economic
Scenarios

Transition Risk
MOODY’S ON

CLIMATE

Climate-adjusted
Probability of Default

Expected Lossand Financial
Impacts
Climate Pathway
ScenariosESG and Climate Capabilities|

66

EXPANDING OURINTEGRATED CAPABILITIESA MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESBETTER
SOLUTIONSESG and Climate
Capabilities

APPENDIX

Throughout 2022, we continued to help our customers
identify, measure and manage ESG and climate risk
by enhancing and expanding our capabilities — bothin geographical coverage and in our offerings byembedding these capabilities into core user workflows.

Our ESG insurance underwriting solution
Launched in September 2022, our new ESG Insurance
Underwriting Solution integrates indicators and scoresto help commercial property and casualty insurers
operationalize ESG risk assessment in their insurance
underwriting workflows.
The solution was born out of a collaboration with
global specialty (re)insurer Chaucer Group, combining
its expertise in underwriting with Moody’s wider
integrated risk modeling capabilities.
Our solution uniquely combines data on public andprivate companies with a flexible and transparent ESG
assessment framework to generate ESG indicatorsand scores that allow insurers to build their own viewof ESG risk. Analytics derived from these scores andindicators help insurers monitor performance andtrends, benchmarked against companies’ own ESG
targets. These ESG insights are then incorporated
alongside other key decision factors — for example,
identifying relationships between ESG factors andfinancial-risk metrics, such as claims frequency andloss ratios.
Additionally, in October, Canopius, a leading
global specialty (re)insurer, selected Moody’s ESG
Underwriting Solution to support the integration of
ESG risk assessment into its underwriting framework.

“Partnering with Moody’s allows us toleverage their market-leading ESG scoringcoverage for our insureds, which is a key
step in enabling us to incorporate ESG
factors into our underwriting framework
as we continue to support and work withour clients.”

Distribution of Credit Impact Scores (CIS) as of December 31, 2022
49%
5,039

27%
2,765

Paul Wilkinson

18%
1,802

Head of Risk Strategy and Analytics, Canopius

ESG in credit
MIS systematically incorporates material ESG andclimate considerations into its credit analysis andcredit ratings to provide transparency to market
participants with respect to how these issues impact
credit ratings. In 2022, MIS expanded its IPS and CIS
coverage from approximately 1,700 rated entities in
2021 to more than 10,000 governments, financial
institutions and corporations across sectors globally.
These scores highlight that nearly a quarter of scoredentities’ credit ratings would be different if not for
ESG issues, with just over a further quarter of scoredentities facing potential future negative impacts on
their ratings from exposure to ESG risks.

3%
347

3%
282
CIS-1

CIS-2

CIS-3

CIS-4

CIS-5

Positive

Neutral-to-low

Moderately negative

Highly negative

Very highly negative

For more information on the expansion of key Climate-related products and services, please see Moody’s 2022 TCFD Report.

ESG and Climate Capabilities

A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESBETTER
SOLUTIONSESG and Climate
Capabilities

APPENDIX|

67

Moody’s in emerging markets

Moody’s Local

We expect GDP growth in emerging markets to continue
to outperform that of advanced economies, raisinghousehold incomes for millions and creating diverse
investment opportunities. Investors need independent,
rigorous, globally comparable credit analysis tocompare risks within and across emerging markets.
Moody’s ratings and research can help meet that need,aiding investor decision-making and capital allocation.
Fostering investment in emerging markets also supports
the development of the domestic private sector,
boosting innovation and employment opportunities.
We incorporate climate risk and ESG considerations, aswell as geopolitical issues, into our emerging markets
analysis, helping meet the need for high-quality, reliable
emerging markets data and insights.

Moody’s Local credit rating agencies, which launchedin 2019, provide country-specific credit ratings andmethodologies for capital markets in Latin America. In
each market, Moody’s Local provides domestic credit
ratings based on that market’s unique characteristics,
including its risks. Ratings are assigned by an experienced
analytical team with extensive knowledge of local
credit markets.

We have invested internationally to expand our
relevance with capital market participants in emerging
markets, supporting the development of local currency
bond markets. For example, in 2022 we acquired amajority stake in Global Credit Rating Company Limited(GCR), a leading credit rating agency in Africa, with
operations across the continent including in South Africa,
Nigeria, Senegal, Kenya and Mauritius.

In May 2022, Moody’s Local launched in Mexico,completing the platform’s rollout in major Latin
American markets. Mexico joins Argentina, Bolivia, Brazil,
Panama, Peru and Uruguay with service from Moody’s
Local credit rating agencies. In October 2022, Moody’s
acquired Class y Asociados S.A. Clasificadora de Riesgo(S.A.), a leading credit rating agency serving Peru’sbond market, which has been integrated into Moody’s
Local. Moody’s Local ratings cover 1,200 issuers,1 andincorporate ESG considerations in every analysis.
Also in 2022, Moody’s Local debuted an SPO productcustomized for domestic capital markets in Latin
America. These SPOs evaluate how debt instruments
and financing frameworks align to green, social orsustainable principles, and assess the extent to which
they are expected to affect the issuer’s advancementof long-term sustainable development.

1

As of December 31, 2022.

ESG Research and Partnerships|

68

ESG RESEARCH AND PARTNERSHIPSA MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESBETTER
SOLUTIONSESG and Climate
Capabilities

APPENDIX

We engage with the global stakeholder communityand produce relevant thought leadership to helptranslate our cutting-edge analytics into actionableinsights. Notable engagements throughout
2022 included:» Participating in a wide range of discussions during
COP27 in Egypt, including the World Climate Summit
and the Finance Day of the Presidency, during which
we shared our insights and expertise on the challenges
faced by companies and investors as they seek toadopt and accelerate net-zero targets.
» Facilitating Financing Resilience Alongside Net-Zero,a half-day discussion during Climate Week NYC, toexplore how climate change is reshaping risk andopportunity across industry, finance and civil society.
» Convening our flagship global ESG conferencesin EMEA and APAC, bringing together experts
on biodiversity, sustainable finance andclimate-related risk.
» Submitting 21 total consultations to standard setters,
regulators and ESG influencers in Europe, North
America and APAC.
» Publishing 97 thought leadership papers, hostedon the ESG Insights and Analysis hub.

Representative selection of our partners

Engaging through partnerships
Industry partnerships are a critical pillar of ourengagement activities. Through our affiliation withleading market organizations, we foster opportunities
to gain first-hand, valuable insights from market
participants and contribute to joint thought leadership.
For example, as part of the Glasgow Financial Alliancefor Net Zero (GFANZ), we are a founding member of
the Net Zero Financial Services Provider Alliance, a
global group of 27 financial service providers committed
to supporting the goal of global net-zero greenhouseemissions by 2050 or sooner. We are committed toaligning our relevant products and services to this goal,in addition to reducing our own operational emissions.
As part of the GFANZ workstream, we contribute torecommendations and guidance for financial institutions’transition planning and the implementation of net-zerocommitments. We were featured in a case study for
the GFANZ draft report Measuring Portfolio Alignment,
which provides guidance on measuring how investment,
lending and underwriting activities align with the goalsof the Paris Agreement and critical 2050 global netzero objectives. We were also featured in the GFANZ
report Recommendations and Guidance on Financial
Institutions Net-zero Transition Plans, which provides
financial institutions with potential strategies formeeting net-zero commitments.

Social implications of a just transition
The transition toward net-zero emissions will reshape economies globally, and distribute costs and benefits
unevenly. A “just transition” seeks to maximize the socioeconomic benefits of decarbonization while minimizing
the negative impact. In a recent research report, we examined whether emerging market entities are prepared to
manage the social implications of global decarbonization.
Our conclusions included:» The carbon transition will likely be more difficult for
emerging market sovereigns, which typically have more
exposure to social risks, weaker governance and lower
financial buffers than advanced economies.
» Growth and innovation in emerging market sovereign
bond issuance can help fill the substantial funding gap
between sovereigns’ current budgets and projected justtransition costs.
» The net-zero transition will involve asignificant allocation of corporate
resources. Companies in emerging
markets are generally not well
prepared to manage reorganization andprofessional development for workforces, or social andeconomic development for local communities.

Appendix

Appendix
Better Lives
Metric Summary
Framework Index
Glossary
Additional Resources|69

Metric Summary|

70

Metric Summary
A MESSAGEFROM OURPRESIDENT& CEO

The following metric summary contains the data and metrics referenced in our 2022 Stakeholder Sustainability Report. In addition, our report is accompanied by a Methodology Note, which aims to increase transparency on methodologies used inour sustainability accounting to accurately measure and report our environmental, social and governance (ESG) progress and impacts. Unless otherwise noted, this document covers all of Moody’s Corporation (NYSE: MCO) and its subsidiaries, and allquantitative data covers the period from January 1 to December 31, 2022.

Better Business

2022
SUSTAINABILITYHIGHLIGHTS

2019

CLIMATE

2020

2021

2022

mtCO2e% actual data

mtCO2e% actual data

mtCO2e% actual data

mtCO2e% actual data2

1,744

46%

919

75%

851

76%

810

37%

Total absolute GHG emissions1
ABOUT
MOODY’S

Scope 1
GRI 305-1

WEF Planet: greenhouse gas (GHG) emissions

Scope 2 market-based

BETTER
BUSINESSGRI 305-2

Scope 2 location-based

BETTERLIVES

GRI 305-2

13,591

2,745

432

440

WEF Planet: greenhouse gas (GHG) emissions
14,035

77%

8,767

82%

6,878

86%

7,696

57%

WEF Planet: greenhouse gas (GHG) emissions
171,260

27%

112,15826%

121,29010%

137,98128%

Purchased goods and services

122,500

17%

86,00025%

102,900

10%

106,100

24%

APPENDIX

Capital goods

5,600

17%

12,200

25%

7,900

10%

9,900

24%

Metric Summary

Fuel and energy-related activities

3,100

74%

590

87%

230

89%

200

59%

Business travel

23,100

85%

3,300

91%

1,480

93%

10,30094%

Employee commuting

10,400

18%

3,100

26%

208

31%

1,300

15%

Waste generated in operations

460

29%

68

31%

72

31%

81

6%

Investments

6,100

0%

6,900

0%

8,500

0%

10,1000%186,595

31%

115,82227%

122,57311%

139,23128%

Scope 3
BETTER
SOLUTIONSGRI 305-3

Framework Index
Glossary
Additional Resources

WEF Planet: greenhouse gas (GHG) emissions

Total Scope 1, Scope 2 market-based, Scope 3

1
2

2019, 2020 and 2021 purchased goods and services (Scope 3, Category 1), capital goods (Scope 3, Category 2) and fuel and energy-related activities (Scope 3, Category 3) GHG emissions were restated as a result of a change in methodology and access to improved data.
In the effort to accelerate the timeline of GHG emissions calculation, some Q4 data was estimated and therefore caused a decrease in the overall % actual data.

Metric Summary

CLIMATE (continued)

2019

|

71

2020

2021

2022

76%

92%

92%

81%

95%

68%

25%

24%

28%

49%

11%

100%

100%

100%

100%

100%

100%

100%

0.001

0.001

0.001

Scope 1 and Scope 2 mtCO2e/$ million of revenue

1

0.2

0.2

APPENDIX

Scope 3 mtCO2e/employee

9

9

10

Metric Summary

Scope 3 mtCO2e/$ million of revenue

20

19

25

Americas (excluding U.S.)

296

174

207

Asia-Pacific

1,245

226

268

EMEA

579

520

435

U.S.

1,544

364

340

Decarbonization plan indicators
Reduction of Scope 1 and Scope 2 from 2019 base year
Target: 50% (by 2030)

A MESSAGEFROM OURPRESIDENT& CEO

GRI 305-5

WEF Planet: Paris-aligned GHG emissions targets

Reduction of Scope 3 fuel and energy-related activities, business travel and employee commuting from 2019 base year1
Target: 15% (by 2025)
GRI 305-5

2022
SUSTAINABILITYHIGHLIGHTSWEF Planet: Paris-aligned GHG emissions targets

Supplier spend covered by science-based targets
Target: 60% (by 2025)
WEF Planet: Paris-aligned GHG emissions targets

ABOUT
MOODY’S

Renewable electricity use (property portfolio)2Target: 100%
GRI 302-1

BETTER
BUSINESS

Offsetting our carbon emissions from operations, employee commuting and business travel since year 2000
Target: 100%

BETTERLIVES

GHG emissions intensity
GRI 305-4
Scope 1 and Scope 2 mtCO2e/sq ft3

BETTER
SOLUTIONS

Framework Index

Scope 1 and 2 GHG emissions by region (mtCO2e)

Glossary

GRI 305-1

Additional Resources

GRI 305-2

Emissions from fuel and energy-related activities increased due to an increase in emissions factor; emissions from business travel and employee commuting increased due to a post-pandemic resumption of business-related travel and more employees returning to work in the office.
Renewable electricity percentage is reported based on originally verified electricity consumption values because it is not possible to buy renewable electricity retroactively due to M&A activity; therefore, the 2020 restated verification opinion shows a decrease in percentage renewable electricity.
3
Emissions include all offices under financial control. Square footage includes Moody’s managed offices and excludes shared-space offices due to data limitations. The impact is expected to be not material, with emissions in shared-space offices accounting for approximately 0.7% of total location-based emissions from GHG inventory in 2022.
1

2

Metric Summary

CLIMATE (continued)

|

72

2020

2021

2022

Scope 1 and 2 GHG emissions by gas type (metric tons)
GRI 305-7
A MESSAGEFROM OURPRESIDENT& CEO

Nitrous oxide (N2O)

4

11

10

Carbon dioxide (CO2)

3,377

1,215

1,206

Methane (CH4)

2

3

2

2022
SUSTAINABILITYHIGHLIGHTS

Hydrofluorocarbons (HFC)

281

54

32

32,16627,96929,019Energy consumption from renewable sources1

76%

74%

79%

Energy intensity ratio per sq ft (kWh/sq ft)2

13

11.9

11.7

Natural gas (MWh)

2,886

4,299

3,970

Other direct (diesel, liquified petroleum gas) (MWh)

466

75

238

24,377

20,61921,406

Electricity intensity ratio per revenue (kWh/$ million of revenue)

4,252

3,190

3,915

Electricity intensity ratio per headcount (kWh/employee)

1,895

1,532

1,484

100%

100%

100%

84%

87%

87%

4,437

2,976

3,405

Energy consumption
GRI 302-1
Total energy (MWh)ABOUT
MOODY’S
BETTER
BUSINESSGRI 302-3
Scope 1 – direct

BETTERLIVESBETTER
SOLUTIONS

Scope 2 – indirect
Total electricity consumption from operations (MWh)APPENDIX
Metric Summary
Framework Index

Renewable electricity use3

Glossary
Additional Resources

Out of which covered by Energy Attribute Certificates purchased by Moody’s directly
Other indirect (purchased steam and cooling) (MWh)Due to M&A activity in 2020, energy consumption from renewable sources is reported based on original (pre-M&A), verified 100% renewable electricity use calculations. The 2020 restated calculation (which includes post-M&A) shows a decrease to 58%.
Energy activity data includes all offices under financial control. Square footage includes Moody’s managed offices and excludes shared-space offices due to data limitations. The impact is expected to be not material, with emissions in shared-space offices accounting for approximately 0.7% of total GHG inventory in 2022.
3
Renewable electricity percentage is reported based on originally verified electricity consumption values because it is not possible to buy renewable electricity retroactively due to M&A activity; therefore, the 2020 restated verification opinion shows a decrease in percentage renewable electricity.
12Metric Summary

ENVIRONMENT AND NATURAL RESOURCES
Waste (rounded)1

Total waste from office operations
A MESSAGEFROM OURPRESIDENT
& CEO

2020
metric tons

2021
%

600

metric tons

|

73

2022
%

430

metric tons%

480

GRI 306-3
Landfill

130

22%

150

35%

170

35%

200

33%

240

56%

280

58%

270

45%

40

9%

40

7%

GRI 306-5
Recycled goods

2022
SUSTAINABILITYHIGHLIGHTSGRI 306-4
Recycled paper
GRI 306-4

ABOUT
MOODY’S

Percentage of our employees in offices that implemented sustainable practices2

BETTER
BUSINESSBETTERLIVES

Eliminated single use plastics

54%

61%

Implemented centralized waste collection3

61%

77%

Eliminated coffee machines with capsules/sachets

40%

53%

Recycle coffee capsules/sachets

77%

78%

Eco-friendly office paper

46%

25%

Eco-friendly stationery and office suppliers

37%

42%

96%

94%

Percentage spend on sustainable materials (U.S. only)4,5

BETTER
SOLUTIONS

Office paper use (U.S. and U.K. only)

APPENDIX

Reduction of office paper from 2019 baseline6
Target: 50%

Metric Summary
Framework Index

80%

Glossary
Additional Resources

Actual waste represented 11% of reported volume in 2022. The reported figure represents an extrapolation to cover the full property portfolio.
2021 sustainable practices metrics were restated as a result of a change in methodology and access to improved data.
3
Includes offices that have more than 50 full time employees, covering approximately 90% of operations based on employee number.
4
Office paper, stationery and office supplies qualify as eco-friendly when they meet at least one of the more than 45 environmental attributes that are reported by suppliers, see the full definition in the Methodology Note. The decrease of eco-friendly office paper is due, in part, to employee consumption habits.
5
Represents our offices in the U.S. and excludes shared-space offices due to data limitations. The data accounts for 89% of Moody’s locations in the U.S., corresponding to 27% of global operations. Efforts are in place to increase data coverage globally.
6
Excludes shared-space offices due to data limitations. The data accounts for approximately 37% of global operations. 2020 and 2021 metrics were restated as a result of improved access to purchased paper data in the U.K. Efforts are in place to increase data coverage globally.
12

Metric SummaryRESPONSIBLE SOURCING

2020

2021

2022

Diverse supplier spend1

8%

7%

8%

Women-owned

4%

3%

3%

Small businesses

1%

2%

2%

Veteran-owned

0.2%

0.3%

0.5%

Supplier diversity
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESBETTER
SOLUTIONSAPPENDIX
Metric Summary
Framework Index
Glossary
Additional Resources

1

Represents addressable spend with suppliers that we do business with directly (Tier 1).

|

74

Metric Summary|

75

Better Lives
DIVERSITY, EQUITY & INCLUSIONA MESSAGEFROM OURPRESIDENT
& CEO

2020
Male

2021

2022

FemaleNot disclosed

MaleFemaleNot disclosed

MaleFemaleNot disclosed

Global gender diversity

1,2

GRI 405-1

2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S

SASB SV-PS-330a.1

WEF People: diversity and inclusion (%)

Executive

67%

33%

—

69%

31%

—

68%

32%

—

Senior Manager

67%

33%

—

68%

32%

—

68%

32%

—

Mid-level Manager

67%

33%

—

68%

32%

—

67%

33%

—

First-level Manager

63%

37%

—

61%

39%

—

62%

38%

—

Nonmanager

50%

49%

1%

50%

49%

1%

51%

48%

1%

TOTAL

59%

41%

—

59%

41%

—

59%

41%

—

White

Underrepresented
groups3

Not disclosed

White

Underrepresented
groups3

Other

White

Underrepresented
groups3

Not disclosed

BETTER
BUSINESS

Race/Ethnicity: United States
GRI 405-1

BETTERLIVESBETTER
SOLUTIONSSASB SV-PS-330a.1

WEF People: diversity and inclusion (%)

U.S. Officers and Managers4

53%

43%

4%

53%

43%

4%

51%

44%

5%

U.S. Workforce

49%

45%

6%

49%

45%

6%

48%

46%

6%

APPENDIX
Metric Summary
Framework Index
Glossary
Additional Resources

Executives represent CEO, CEO-Direct, Exec Directors, GMD, SMD and MD level; senior managers represent AMD, Country Head, SVP and Senior Director level; mid-level managers represent VP-SCO, VP-SA, VP and Director level; first-level managers represent AVP-Analyst, AVP, Associate Director and Assistant Director level; nonmanagers represent Analyst,
Assoc Analyst, Assoc and Associate level.
2
The data by seniority represents approximately 90% of employees (excludes certain nonwholly owned subsidiaries and newly acquired companies for which this data was not yet available). The total breakdown by gender represents the full employee population.
3
Underrepresented groups include employees who identified as Asian, Latino/Latina, Black, Native American/Alaskan Native, Hawaiian/Other Pacific Island or two or more races.
4
Officers and Managers are calculated using the job categories: executives, senior managers, mid-level managers and first-level managers.
1

Metric Summary

DIVERSITY, EQUITY & INCLUSION (continued)

2020

2021

2022

Male

6

7

8

Female333

Not disclosed

0

0

0

White

7

7

8

Underrepresented groups1

2

2

3

Not disclosed

0

1

0

Board demographics: gender (as of April of respective reporting year)
GRI 2-9, 405-1
A MESSAGEFROM OURPRESIDENT& CEO

WEF Principles of governance: governance body composition

Board demographics: race/ethnicity (as of April of respective reporting year)

2022
SUSTAINABILITYHIGHLIGHTSGRI 2-9, 405-1

ABOUT
MOODY’SWEF Principles of governance: governance body composition

BETTER
BUSINESSBETTERLIVESBETTER
SOLUTIONSAPPENDIX
Metric Summary
Framework Index
Glossary
Additional Resources

1

Underrepresented groups include employees who identified as Asian, Latino/Latina, Black, Native American/Alaskan Native, Hawaiian/Other Pacific Island or two or more races.

|

76Metric Summary

HUMAN CAPITAL

2020

2021

2022

Americas (excluding U.S.)

679

764

895

Asia-Pacific

3,429

4,197

4,486

EMEA

3,145

3,665

3,977

U.S.

4,234

4,834

5,068

1,432

2,707

3,541

Global employee breakdown by region
GRI 2-7, 405-1
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSWEF People: diversity and inclusion (%)

New employee hires­1
New employee hires
GRI 401-1

ABOUT
MOODY’S
BETTER
BUSINESSSASB SV-PS-330a.2

WEF Prosperity: absolute number and rate of employment

Female

39%

Male

61%

Not disclosed—

Employee turnover rate
GRI 401-1

BETTERLIVESBETTER
SOLUTIONSSASB SV-PS-330a.2

WEF Prosperity: absolute number and rate of employment

Voluntary turnover

7%

13%

15%

Involuntary turnover

4%

3%

4%

Turnover breakdown by gender
Female39%

Metric Summary

Male

60%

Framework Index

Not disclosed

1%

APPENDIX

Glossary

Full-time/Part-time employees

Additional Resources

Full-time

11,234

13,202

14,181Part-time

253

258

245

Moody’s Analytics (MA)

5,008

6,529

7,122

Moody’s Investors Service (MIS)

5,051

5,295

5,519

Moody’s Shared Services (MSS)

1,428

1,636

1,785

Employees by business segment

1

Excludes hires through acquisition.

|

77

Metric Summary

HUMAN CAPITAL (continued)

2020

2021

2022

10%

9%

10%

76

73

75

74

75

75

80%

76%

72%

|

78

Collective bargaining agreements
Employees covered by collective bargaining agreements1
A MESSAGEFROM OURPRESIDENT& CEO

GRI 2-30

WEF People: freedom of association and collective bargaining at risk (%)

Employee engagement2
Employee engagement score3
SASB SV-PS-330a.3

2022
SUSTAINABILITYHIGHLIGHTS

Global benchmark4
Well-being favorability score

5

Global benchmark4

ABOUT
MOODY’SEngagement survey participation (%)

Not available
86%

84%

85%

Not available

92%

99%

Performance review

BETTER
BUSINESS

Employees who received performance and career development reviews6
GRI 404-3

BETTERLIVESBETTER
SOLUTIONSAPPENDIX
Metric Summary
Framework Index
Glossary
Additional Resources

2020 and 2021 data excludes certain nonwholly owned subsidiaries and newly acquired companies not integrated in Moody’s IT systems.
The data represents approximately 90% of employees (excludes certain nonwholly owned subsidiaries and newly acquired companies which are not integrated in Moody’s IT systems and therefore the survey was not distributed to them).
3
Employee engagement score is an average of two items: “How happy are you at Moody’s?” and “Would you recommend Moody’s?”
4
The global benchmark provided by the survey third-party service provider is based on cross-client, cross-industry and cross-country company data from well over 700 organizations and over 150 countries.
5
The favorability score is the average percentage of employees that agree Moody’s takes a genuine interest in their well-being.
6
Limited duration employees, employees in a probation period or who joined Moody’s from newly acquired companies do not participate in the GPS performance review process. Certain nonwholly owned subsidiaries for which this data was not yet available are excluded from the analysis. Therefore the data represents approximately 80% of the total
employee population.
1

2

Metric Summary

LEARNING AND DEVELOPMENT

|

2020

2021

2022

205,400

218,800

204,000

21

18

16

Officer4

21

17

14

Non-officer

21

20

19

$1,300$1,200$1,000Approximately 1%

Approximately 1%

Approximately 1%

2020

2021

2022

40

320

230

79

Training hours

1,2,3

Absolute number of training hours (rounded)
A MESSAGEFROM OURPRESIDENT& CEO

Average training hours per employee
GRI 404-1

2022
SUSTAINABILITYHIGHLIGHTSWEF People: training provided (#)

Training expenditure5
Average training and development expenditure per employee (rounded)
WEF People: training provided ($)

ABOUT
MOODY’S

Training and development expenditure as a percentage of payroll
WEF People: monetized impacts of training

BETTER
BUSINESSTALENT ATTRACTION
BETTER
LIVES

Number of unfilled positions (rounded)

BETTER
SOLUTIONSOpen positions filled by internal candidates in calendar year7,8

13%

20%

16%

Average hiring cost per new hire (USD, rounded)9$5,900$6,000$5,1006,7

WEF People: number of unfilled skilled positions (#)

APPENDIX
Metric Summary
Framework Index
Glossary
Additional Resources

The data represents approximately 90% of employees (excludes certain nonwholly owned subsidiaries and newly acquired companies not integrated in Moody’s IT systems).
Data includes hours captured in the Moody’s University and centralized online training programs, related to completed training on topics such as compliance, professional development and diversity, equity and inclusion. There are other training programs not captured in the scope of this metric, like professional certifications, on the job learning, and other learning
events not administered through Moody’s University.
3
The training activity continued to decrease in 2022 due to a continued move to online training, including a focus on shorter training duration. In addition, some employees returned to the office and needed to adjust to a new schedule.
4
Officer-level data is calculated using the job categories: executives, senior managers, mid-level managers and first-level managers.
52020 and 2021 training expenditure metrics were restated to include nonwholly owned subsidiaries.
6
Positions that had been open for 90 days or longer as of December 31st of respective year.
72020 and 2021 data excludes certain nonwholly owned subsidiaries and newly acquired companies not integrated in Moody’s IT systems.
82020 and 2021 metrics were restated due to changes in methodology.
92020 and 2021 metrics were restated due to a change in methodology and to include nonwholly owned subsidiaries.
1

2

Metric Summary

COMMUNITIES

2020

2021

2022

Moody’s Foundation grants2$3.8 million$3.1 million$4.2 million

Moody’s charitable contributions3$1.9 million$1.9 million$1.2 million

Value of volunteer hours4$0.6 million$0.8 million$0.9 million

7,800

11,20014,000

Employee-led giving5$0.6 million$0.7 million$1.0 million

Total social investment$6.9 million$6.4 million$7.4 million$1.2 million$1.6 million$1.7 million

Number of countries served

22

29

35

Median efficacy rate

88%

96%

100%

Total beneficiaries (rounded)

2,500

4,900

1,900

BETTER
SOLUTIONS

Female beneficiaries

64%

65%

75%

Low-income beneficiaries

95%

82%

79%

APPENDIX

Supporting ecosystem restoration

Metric Summary

Invested (rounded)$0.4 million$0.3 million$0.3 million

Number of countries served

30

37

2

Median efficacy rate

100%

100%

100%

Total beneficiaries (rounded)

60,00062,0001,500

Female beneficiaries

68%

57%

75%

Low-income beneficiaries

100%

93%

100%

Social Investments (rounded)

1

A MESSAGEFROM OURPRESIDENT& CEO

Number of employee volunteer hours

2022
SUSTAINABILITYHIGHLIGHTSWEF Prosperity: total social investment ($)
Moody’s Foundation programs6

ABOUT
MOODY’SGRI 413-2
Empowering small businesses

BETTER
BUSINESS

Invested $ (rounded)

BETTERLIVES

Framework Index
Glossary
Additional Resources

Individual social investment items may not sum to Total Social Investment due to rounding.
Grants paid from Moody’s Foundation toward projects aligned with its strategic focus areas, relief response and transition/exit grants.
3
Payments made by MIS, MA and MSS that have been classified as charitable contributions.
4
The data represents approximately 90% of employees (excludes certain nonwholly owned subsidiaries and newly acquired companies not integrated in Moody’s IT systems).
5
Grants paid from Moody’s Foundation toward the Matching Gifts and Dollars for Doers programs.
6
Measured using Mission Measurement’s Impact Genome Project methodology. Data is reflective of programming that was active in the calendar year and is not reflective of all Moody’s grant partners.
1

2

|

80

Metric Summary

COMMUNITIES (continued)

2020

2021

2022

$2.7 million$3 million$2 million

Number of countries served

72

54

35

Median efficacy rate

100%

100%

100%

Total beneficiaries (rounded)

79,50076,9003,400

Female beneficiaries

68%

60%

75%

Low-income beneficiaries

84%

62%

89%

Moody’s Foundation programs (continued)
1

GRI 413-2
A MESSAGEFROM OURPRESIDENT& CEO

All programs2
Invested $ (rounded)

2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESBETTER
SOLUTIONSAPPENDIX
Metric Summary
Framework Index
Glossary
Additional Resources

1
2

Measured using Mission Measurement’s Impact Genome Project methodology. Data is reflective of programming that was active in the calendar year and is not reflective of all Moody’s grant partners.
2020 and 2021 data includes the “Helping young people reach their potential” portfolio, which was discontinued in 2022.

|

81

Framework Index|

82

Framework Index
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSOur Report has been prepared in accordance with the following voluntary frameworks and initiatives: Value Reporting Foundation’s Sustainability Accounting Standards Board (SASB) Standard for Professional and Commercial Services, the Global
Reporting Initiative (GRI) Standards and the World Economic Forum (WEF) International Business Council’s Stakeholder Capitalism Metrics. These disclosures are meant to assist our investors, customers, business partners and other stakeholders in
obtaining standardized disclosure.
Unless otherwise noted, this document covers all of Moody’s Corporation (NYSE: MCO) and its subsidiaries, and all quantitative data covers the period from January 1 to December 31, 2022.
DESCRIPTIONBETTER
BUSINESSBETTER
LIVES

GRI

SASB

WEF

The organization and its reporting practices
Organizational details

ABOUT
MOODY’S

MOODY’S RESPONSE

About Moody’s, pg 5-16

2-12022 Form 10-K, pg 1
Entities included in the organization’ssustainability reporting

Like the Moody’s Annual Report, much of Moody’s Sustainability Report describes matters relating to Moody’s
Corporation and its consolidated subsidiaries, except where otherwise noted.

2-22022 Form 10-K, exhibit 21
Reporting period, frequency andcontact point

About this report, pg 7

2-32022 Form 10-K, pg 1
Methodology Note
For questions regarding the information in this report, please contact Sustainability@moodys.com

BETTER
SOLUTIONSAPPENDIX
Metric Summary
Framework Index

Restatements of information

Methodology Note

2-4

External assurance

2022 TCFD Report

2-5

Moody’s at a glance, pg 6

2-6

Activities and workers
Activities, value chain and otherbusiness relationships

Glossary

Responsible sourcing, pg 30-31
Better solutions, pg 61-68

Additional Resources

2022 Form 10-K, pg 10-12; 17-19
Supplier Code of Conduct
Human Rights Statement
Modern Slavery and Human Trafficking Statement
Employees

Advancing DE&I inside Moody’s: our workforce and workplace, pg 38-42

2-72022 Form 10-K, pg 14-18
Workers who are not employees

During 2022, Moody’s engaged non-employee workers through tis vendors to provide services on atemporary basis.

2-8

Principles of governance: setting purpose

Framework Index

DESCRIPTIONMOODY’S RESPONSE

GRI

Corporate governance, pg 19-20

2-9, 2-13, 405-1

SASB

|

83

WEF

Governance
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S

Governance structure, compositionand delegation of responsibility for
managing impacts

Principles of governance: governance body composition

2023 Proxy Statement, pg 4; pg 10-14; pg 18-22
Charter Documents
Director and Shareholder Affiliation Policy

Nominating and selecting the highest
governance body2023 Proxy Statement, pg 10-11; pg 28-34

2-10

Chair of the highest governance body2023 Proxy Statement, pg 12

2-11

Role of highest governance body inoverseeing the management of impacts

Our sustainability strategy, pg 82-12

Principles of governance: purpose-led management

Corporate governance, pg 19-20

Principles of governance: setting purpose

Risk assessment and management, pg 23

Principles of governance: ESG in capital
allocation framework

2023 Proxy Statement, pg 8; pg 15-16; pg 18-22
BETTER
BUSINESSBETTERLIVES

Audit Committee Charter
2022 TCFD Report
Highest governance body’s role insustainability reporting

The Chief Corporate Affairs Officer and members of the Board of Directors formally review Moody’s Stakeholder
Sustainability report.

2-14

Conflicts of interest

2023 Proxy Statement, pg 12-13; pg 23-24; pg 28

2-15

Code of Ethics for Chief Executive and Senior Financial Officers

BETTER
SOLUTIONSAPPENDIX

Director and Shareholder Affiliation Policy
Communicating critical concerns

2-16

Code of Business Conduct, pg 11-13

Metric Summary

SV-PS-510a.2

Principles of governance: monetary losses fromunethical behavior

2022 Form 10-K, Note 21 “Contingencies,” pg 118

Framework Index

2023 Proxy Statement, pg 16-17

Glossary
Additional Resources

Business ethics and professional integrity, pg 21-22

Collective knowledge of the highest
governance body

Deepening board expertise and education, pg 20

Evaluating the highest governancebody’s performance

2023 Proxy Statement, pg 15

2-18

Remuneration policies and processes todetermine remuneration

Embedding sustainability metrics into executive compensation, pg 20

2-19, 2-20

Principles of governance: remuneration

2-21

People: wage level (%)

2-172023 Proxy Statement, pg 11-122023 Proxy Statement, pg 24-27; pg 47-71
Compensation and Human Resources Committee Charter

Annual total compensation ratio

2023 Proxy Statement, pg 88

People: pay gap (%, #)Framework Index

DESCRIPTIONMOODY’S RESPONSE

GRIStatement on sustainable
development strategy

President and CEO Message, pg 3

2-22

Policy commitments

Business ethics and professional integrity, pg 21-22

SASB

|

84

WEF

Strategy, policies and practices
A MESSAGEFROM OURPRESIDENT& CEO

Principles of governance: setting purpose
Principles of governance: purpose-led management

2-23, 2-24

Risk assessment and management, pg 23
Code of Business Conduct

2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSMIS Code of Professional Conduct
Supplier Code of Conduct
Human Rights Statement
Mechanisms for seeking advice, raisingconcerns and remediating negative impacts

Providing reporting mechanisms, pg 21

Compliance with laws and regulations

All material legal matters are disclosed in Moody’s 2022 Form 10-K, Note 21 “Contingencies,” pg 118

2-27

External initiatives and membershipof associations

Contributing to the United Nations SDGs, pg 10

2-28

2-25, 2-26

Principles of governance: protected ethics advice andreporting mechanisms

Code of Business Conduct
SV-PS-510a.2

Stakeholder engagement, pg 15
Supporting our people, communities and institutions, pg 43

BETTERLIVES

Community impact, pg 58
ESG research and partnerships, pg 68

BETTER
SOLUTIONSStakeholder engagement
Approach to stakeholder engagement

APPENDIX

2-29

Identifying and prioritizing our material ESG topics, pg 11

Metric Summary

Stakeholder engagement, pg 15-16

Framework Index
Glossary

Moody’s key stakeholders are entities or individuals who are involved in its business, can be directly affected by its
business and/or whose actions can directly affect its business.

Collective bargaining agreements

Approximately 10% of employees are covered by a collective bargaining agreement

2-30

Process to determine material topics

Identifying and prioritizing our material ESG topics, pg 11

3-1

List of material topics

Identifying and prioritizing our material ESG topics, pg 11

3-2

Additional Resources

People: freedom of association and collective
bargaining at risk (%)

Disclosure on material topics

Principles of governance: material Issues
impacting stakeholders

Framework Index

DESCRIPTIONMOODY’S RESPONSEGRIManagement approach toeconomic performance

Better solutions, pg 61-68

3-3

Direct economic value generated
and distributed

2022 Form 10-K, pg 67-70; 111-113

SASB

|

85

WEF

Economic performance
A MESSAGEFROM OURPRESIDENT& CEO

2022 Form 10-K, pg 35-61
201-1

Prosperity: total tax paid
Prosperity: additional tax remitted
Prosperity: total tax paid by country forsignificant locations

2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’SProsperity: financial investment contribution
Prosperity: economic contribution
Prosperity: social value generated (%)
Financial implications and other risks andopportunities due to climate change

BETTER
BUSINESS

Risk assessment and management, pg 23

Principles of governance: integrating risk andopportunity into business process

Better solutions, pg 61-68

Planet: TCFD implementation

2022 TCFD Report

Planet: impact of GHG emissions

Identifying and prioritizing our material ESG topics, pg 11

201-2

2022 Form 10-K, pg 16; 27
BETTERLIVES

Innovation

Better solutions, pg 61-68

Prosperity: total R&D expenses ($)

Stakeholder Sustainability Metric Summary, pg 70-81

Prosperity: vitality index
Principles of governance: progress against
strategic milestones

BETTER
SOLUTIONS

Professional integrity
APPENDIX
Metric Summary

Management approach to ethics, integrity
and anti-corruption

Business ethics and professional integrity, pg 21-22

SV-PS-510a.1

MIS Code of Professional Conduct

GlossaryAnti-Bribery and Anti-Corruption Policy

Principles of governance: anti-corruption
Principles of governance: protected ethics advice
and reporting mechanisms

Code of Business Conduct

Framework Index
Additional Resources

3-3

Human Rights Statement
Supplier Code of Conduct
Modern Slavery and Human Trafficking Statement
Communication and training aboutanti-corruption policies and procedures

Business ethics and professional integrity, pg 21-22
Code of Business Ethics, pg 11-12

205-2

SV-PS-510a.1

Principles of governance: anti-corruption

Framework Index

DESCRIPTIONMOODY’S RESPONSEGRIManagement approach to public
policy engagement

Engaging on public policy, pg 22

3-3

Lobbying and political contributions

Engaging on public policy, pg 22

SASB

|

86

WEF

Public policy
A MESSAGEFROM OURPRESIDENT& CEO

Political Engagement and Public Policy Statement

Principles of governance: alignment of strategy andpolicies to lobbying

415-1

2021 U.S. Political Engagement Report
Political Engagement and Public Policy Statement

2022
SUSTAINABILITYHIGHLIGHTSHuman rights
Management approach to human rights

Supporting human rights, pg 22

3-3

Responsible sourcing, pg 30-31
ABOUT
MOODY’S

People: human rights review, grievance impact andmodern slavery (#, %)Human Rights Statement
Code of Business Conduct, pg 15
Supplier Code of Conduct

BETTER
BUSINESSBETTERLIVES

People: risk for incidents of child, forced orcompulsory labor

Modern Slavery and Human Trafficking Statement
Employee training on human rights
policies and procedures

Business ethics and professional integrity, pg 21-22

412-2

Responsible sourcing, pg 30-31
Human Rights Statement
Modern Slavery and Human Trafficking Statement

BETTER
SOLUTIONS

Climate and the environment
Management approach to energy
and emissions

Climate, pg 24-27

3-3

Planet: TCFD implementation

2022 TCFD Report

Planet: impact of GHG emissions

Metric Summary

Decarbonization Plan

Framework Index

Environmental Sustainability Policy

Principles of governance: progress against
strategic milestones

APPENDIX

Glossary

Energy consumption and GHG emissions

Additional Resources

Achieving our climate targets, pg 25
Stakeholder Sustainability metric summary, pg 70-81
2022 TCFD Report, pg 36-37

Waste

Protecting nature and biodiversity, pg 27
Environmental Sustainability Policy

302-1, 302-3, 302-4,
305-1, 305-2, 305-3,
305-4, 305-5

306-3, 306-4, 306-5

Planet: greenhouse gas (GHG) emissions
Planet: Paris-aligned GHG emissions targets
Principles of governance: progress against
strategic milestones

Framework Index

DESCRIPTIONMOODY’S RESPONSE

GRI

Responsible sourcing, pg 30-31

3-3

SASB

|

87

WEF

Supplier environmental assessment
Management approach to supplierenvironmental standards and evaluation

A MESSAGEFROM OURPRESIDENT& CEO

Decarbonization Plan
Supplier Code of Conduct

New suppliers that were screened using
environmental criteria

2022
SUSTAINABILITYHIGHLIGHTS

Responsible sourcing, pg 30-31

308-1

Responsible sourcing, pg 30-31

3-3People: risk for incidents of child, forced orcompulsory labor

Responsible sourcing, pg 30-31

414-1

People: human rights review, grievance impact andmodern slavery (#, %)Management approach to data security
and customer privacy

Cybersecurity and data privacy, pg 28-29

3-3

SV-PS-230a.1
SV-PS-230a.2

Incidents related to customer data andcybersecurity breaches

There were no material incidents related to data and cybersecurity breaches across our global operations in 2022.1

418-1

SV-PS-230a.3

Supplier social assessment
Management approach to supplier social
standards and evaluation

Supplier Code of Conduct
Human Rights Statement

ABOUT
MOODY’S

Modern Slavery and Human Trafficking Statement
New suppliers that were screened usingsocial criteria

BETTER
BUSINESS

Data security and customer privacy

BETTERLIVESBETTER
SOLUTIONS

Moody’s privacy notices are publicly available online and listed under Additional Resources, pg 91
Monitoring and assessing cybersecurity, pg 28

Diversity, equity and inclusion
Management approach to diversity,
equity and inclusion

APPENDIX
Metric Summary

Diversity, equity and inclusion, pg 34-43

Framework Index

Code of Business Conduct, pg 15-17

Glossary

Human Rights Statement

Additional Resources

Diversity of governance bodyand employees

3-3Principles of governance: progress against
strategic milestones

Equal Employment Opportunity Policy

Prioritizing strong board composition, pg 20

People: discrimination and harassment incidents (#)
and the total amount of monetary losses ($)
405-1

Advancing DE&I inside Moody’s: our workforce and workplace, pg 38-42

SV-PS-330a.1
SV-PS-000.A

People: diversity and inclusion (%)
Principles of governance: governance body composition
Principles of governance: progress against
strategic milestones

Ratio of basic salary and remunerationof women to men

Providing competitive compensation, pg 49
Our 2022 equal pay analysis is available in the 2021 Stakeholder Sustainability Report, pg 47405-2

People: pay equality (%)
Prosperity: pay gap (%, #)People: wage level (%)

1

A material incident is defined as “affecting critical systems or information with potential or confirmed significant impact to revenue, reputation or customers.”

Framework Index

DESCRIPTIONMOODY’S RESPONSEGRIManagement approach to talentattraction, education and development

Learning and development, pg 54-57

3-3

Employee training and upskilling

Learning and development, pg 54-57

404-1, 404-2

SASB

|

88

WEF

Talent attraction and development
A MESSAGEFROM OURPRESIDENT& CEO

People: training provided (#, $)2022
SUSTAINABILITYHIGHLIGHTS

Performance review

Managing our workforce performance, pg 47

Unfilled positions

As of December 31, 2022, approximately 230 positions had been open with offers not yet accepted for 90 days
or longer.

ABOUT
MOODY’S

Employment

BETTER
BUSINESSBETTER
LIVES

3-3

Benefits

Offering comprehensive benefits, pg 49-50

401-2, 401-3, 403-6

New hires and turnover

Working to remain an employer of choice, pg 48

401-1

SV-PS-330a.2

Prosperity: absolute number and rate of employment

Employee health and well-being, pg 51-53

3-3

SV-PS-330a.3

People: health and safety (%)

Health and well-being
Management approach to employee
health and well-being

Empowering our people: business resource groups, pg 36-37

People: employee well-being (%)

Code of Business Conduct, pg 18
Worker training on occupational
health and safety

Upholding our code of business conduct, pg 21

Framework Index

Code of Business Conduct, pg 18
Work-related injuries and ill health403-5

Empowering our people: business resource groups, pg 36-37
Placing employee well-being at the center of how we work, pg 51-53

Additional Resources

People: number of unfilled skilled positions (#, %)Better lives, pg 32-60

Metric Summary
Glossary

404-3

Management approach to employment

BETTER
SOLUTIONSAPPENDIX

People: monetized impacts of training – Increased
earning capacity as a result of training
intervention (%, $)Employee learning highlights, pg 54

Protecting the health and safety of employees, pg 53

403-9, 403-10

People: health and safety (%)
People: monetized impacts of work-related incidents
on organization (#, $)People: employee well-being (%)

Framework Index

DESCRIPTION

SASB

|

89

MOODY’S RESPONSE

GRI

WEF

Management approach to community
engagement and social impact

Community impact, pg 58-60

3-3

Operations with local community
engagement, impact assessments anddevelopment programs

Community impact, pg 58-60

413-1

Prosperity: total social investment ($)

Operations with significant actualand potential negative impacts on
local communities

Since we do not have factories or large operating facilities, and our operations do not require large amounts of landor resources from the communities in which we operate, our local community impacts are limited.

413-2

Prosperity: significant indirect economic impacts

Local communities
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESBETTER
SOLUTIONSAPPENDIX
Metric Summary
Framework Index
Glossary
Additional Resources

Read more on our community engagement initiatives (in our workplace and externally through our business andphilanthropy) in Community impact, pg 58-60.

Glossary|

90

Glossary
A MESSAGEFROM OURPRESIDENT& CEO

APAC – Asia-PacificBetter Business

Better Lives

Better Solutions

EMEA – Europe, Middle East and Africa

A4S – Accounting for Sustainability

ALI – Asian Leadership Initiative

CIS – Credit Impact Score

GRI – Global Reporting Initiative

AML – Anti-Money Laundering

ALPFA – Association of Latino Professionals for America

CRE – Commercial Real Estate

M&A – Mergers & acquisitions

CAO – Chief Administrative Officer

BES – Business Engagement Survey

CTA – Carbon Transition Assessment

MA – Moody’s Analytics

CDP – formerly known as Carbon Disclosure Project

BIG – Black Inclusion GroupGCR – Global Credit Rating Company Limited

MCO – Moody’s Corporation

CIO – Chief Information Office

BLC – Business Learning Councils

IPS – Issuer Profile Score

MIS – Moody’s Investors Service

CISO – Chief Information Security Officer

BRG – Business Resource GroupKYC – Know Your Customer

SASB – Sustainability Accounting Standards Board

COSO – Committee of Sponsoring Organizations

CDFI – Community Development Financial Institution

PD – Probability of Default

SDG – Sustainable Development Goals

CRO – Chief Risk Officer

CPO – Chief People Officer

UNGC – United Nations Global Compact

CTO – Chief Technology Officer

CORE – Creating Opportunities for Racial Equity

SFDR PAI – Sustainable Finance Disclosure Regulation
Principal Adverse Impact

WEF – World Economic ForumEDD – Enhanced Due Diligence

DE&I – Diversity, equity and inclusion

SME – Small-and-Medium-seized Enterprise

ERM – Enterprise Risk Management

EAP – Employee Assistance Program

SPO – Second Party Opinion

GFANZ – Glasgow Financial Alliance for Net ZeroEEO-1 – U.S. Equal Employment Opportunity report

GHG – Greenhouse Gas

EOC – Economic Opportunity Coalition

LEED – Leadership in Energy and Environmental Design

GPS – Grow, Perform, Succeed

NGLCC – National LGBT Chamber of Commerce

MATR – Moody’s Analytics Technical Rotation program

PAC – Political Action Committee

MDI – Minority Depository Institution

Glossary

PAI – Principal Adverse Impact

MLT – Management Leadership for Tomorrow

Additional Resources

SBTi – Science-Based Targets initiative

NASP – National Association of Securities Professionals

SFDR – Sustainable Finance Disclosure Regulation

NBA – National Bankers Association

S & O – Strategic and operational

RISE – Previously our Senior Women’s Leadership
Development Program

2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESBETTER
SOLUTIONSAPPENDIX
Metric Summary
Framework Index

TCFD – Task Force on Climate-related
Financial Disclosures
TNFD – Taskforce on Nature-related
Financial Disclosures

TIDE – Talent Aspirations & Alignment,
Insights, Development & Career Planningand Exposure & Expansion
UNCF – The United Negro College FundVBRG –Veterans Business Resource Group

Additional Resources|

Additional Resources
A MESSAGEFROM OURPRESIDENT
& CEO
2022
SUSTAINABILITYHIGHLIGHTSABOUT
MOODY’S
BETTER
BUSINESSBETTERLIVESBETTER
SOLUTIONS

2022 Form 10-K

Better BusinessPrivacy Policies:

Better Lives

2021 Stakeholder Sustainability Report

2023 Proxy Statement» Bogard Cookies Notice2021 EEO-1 Report

Investor Relations website

2022 TCFD Report

Methodology Note

Anti-Bribery and Anti-Corruption Policy

Stakeholder Sustainability microsite

Code of Business Conduct
Code of Ethics for Chief Executive and Senior
Financial Officers
Corporate Governance Charter Documents
Decarbonization Plan
Director and Shareholder Affiliation Policy
Environmental Sustainability Policy
Global Tax Policy

APPENDIX
Metric Summary
Framework Index

Human Rights Statement» Bureau van Dijk Cookies Notice

Affirmative Action and Equal Employment
Opportunity Policy» Bureau van Dijk Privacy Policy

Community Impact Microsite» Bureau van Dijk Product Privacy Notice

Diversity, Equity & Inclusion microsite» Bureau van Dijk RDC Product Privacy Notice

Moody’s Foundation website» Canadian Securities Institute Cookies Notice» Canadian Securities Institute Privacy Policy» Catylist Privacy Policy» kompany Cookies Notice» kompany Privacy Policy» MA Pulse Privacy Policy» MA NewsEdge Privacy Policy

MIS Code of Professional Conduct» Moody’s Analytics Privacy Notice

Modern Slavery and Human Trafficking Statement» Moody’s Investors Service Privacy Policy

Political Engagement & Public Policy Statement» Moody’s Candidate/Talent Community Privacy Policy

U.S. Political Engagement Report» Moody’s Cookies Notice

Glossary
Additional Resources» Bogard Privacy Policy» PassFort Cookies Notice» PassFort Privacy Policy
Supplier Code of Conduct

Moody’s Russia-Ukraine Crisis Microsite

Better Solutions
ESG & Climate Solutions microsite
ESG Insights & Analysis hub

91© 2023 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.
CREDIT RATINGS ISSUED BY MOODY’S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY,“PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE APPLICABLE MOODY’S RATINGSYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY.
CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), AND OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONSOR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND
PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUESITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING ANINVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR
SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.
MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY’S adopts all necessary measures so that the
information it uses in assigning a credit rating is of sufficient quality and from sources MOODY’S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the credit rating process or in
preparing its Publications.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or
inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant
financial instrument is not the subject of a particular credit rating assigned by MOODY’S.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of
liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use
any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.
Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of
any credit rating, agreed to pay to Moody’s Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $5,000,000. MCO and Moody’s Investors Service also maintain policies and procedures to address the independence of Moody’s Investors Service credit ratings and credit ratingprocesses. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody’s Investors Service, Inc. and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under theheading “Investor Relations — Corporate Governance — Charter Documents - Director and Shareholder Affiliation Policy.”
Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This
document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor theentity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security thatis available to retail investors.
Additional terms for Japan only: Moody’s Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody’s Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not
a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are
credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings
opinions and services rendered by it fees ranging from JPY100,000 to approximately JPY550,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

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Certain statements in this report are aspirational or otherwise forward-looking statements. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. These statements, including statements regarding the goals of Moody’s Corporation and its subsidiaries (the“Company”), are not guarantees of future results or occurrences. Actual results and financial condition may differ materially from the Company’s expectations or predictions expressed in this report due to a variety of factors, including, among others, global socio-demographic, political and economic trends, technological innovations,climate-related conditions and weather events, legislative and regulatory changes and other unforeseen events or conditions, and the factors discussed in the precautionary statements included in this report and those contained in the Company’s filings with the Securities and Exchange Commission. The forward-looking statements are
made as of the date of this report, and the Company undertakes no obligation to publicly supplement, update or revise such statements on a going-forward basis, whether as a result of subsequent developments, changed expectations or otherwise, except as required by law. In addition, while this report describes potential future events
that may be significant, the significance of those potential events should not be read as equating to materiality as the concept is used in the Company’s filings with the Securities and Exchange Commission. Forward-looking and other statements in this report may also address our corporate responsibility progress, plans, and goals (including
sustainability and environmental matters), and the inclusion of such statements is not an indication that these contents are necessarily material to investors or required to be disclosed in the Company’s filings with the Securities and Exchange Commission. In addition, historical, current, and forward-looking sustainability-related statements
may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.