Better decisions,brighter futures
2019 Corporate Social Responsibility ReportContents
INTRODUCTION

YEAR IN REVIEWESG APPROACH

STORIES OF IMPACTREPORTING FRAMEWORKS

3

8

15

21

A-1

A message fromour President & CEO,
Raymond W. McDaniel, Jr.

4

About Moody’s

5

One Moody’s

6

Our CSR strategy andsocial investing focus areas

Key activities

8

A look back at 20199

A look ahead in 202010

Performance indicators

10 Environmental
11 Social
12 Reshape Tomorrow™

13

Recognition

From data to impact:
Bringing ESG transparency
to the market

Pathway to Prosperity

Paving a “pathway toprosperity” one small
business at a time

Reporting frameworks

A-2		 GRI
A-42 SASB
A-46 TCFD

24
TechnoServe

Giving Kenya’s duka owners
tools to thrive

26
Brunel University USWAP

Unlocking untapped potential
for London students

29
Latin America

Accelerating financial healthfor Latin American businesses

32
Moody’s Future Solutions™

Taking pro bono global
About this report
This is Moody’s 10th annual Corporate Social Responsibility (CSR) Report, which covers the period from January 1 to December 31, 2019, except as noted otherwise. This report has been prepared in accordance with the Global Reporting
Initiative (GRI) Standards: Core option. Like our corporate annual report, this document covers all of Moody’s Corporation and its subsidiaries. All references to dollars are to US 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 CSR, 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.
Previous CSR reports can be accessed on the Moody’s CSR microsite.
Our complete responses to the standards and disclosures set by GRI, the Sustainability Accounting Standards Board, and the Task Force on Climate-related Financial Disclosures can be found in the appendix of this report.

Moody’s 2019 Corporate Social Responsibility Report2

Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks

A message from our President & CEO,
Raymond W. McDaniel, Jr.
We find ourselves in unprecedented times as we face
the immediate and long-term impacts of COVID-19
on the health and economic security of people aroundthe world. Many are facing challenges and disruptions,
including small businesses and educational systems.
In response to the pandemic, Moody’s is providing
charitable donations and other urgent support toaddress the needs of affected communities where
we operate. These efforts build on the actions we took
in 2019 to grow our partnerships and global programs,
and ultimately support the needs of small businessowners and students.
These commitments also reflect our purpose to bringclarity, knowledge and fairness to an interconnectedworld. Corporate social responsibility (CSR) is inmany ways at the heart of our endeavors to enhanceconnection and collaboration between people, which
supports addressing society’s most pressing issues.
In 2019, we saw tangible results from the first fullyear of our signature financial inclusion initiative,
Reshape Tomorrow™. With support from the Moody’s
Foundation and employee volunteers, our partners
are doing important work in communities acrossthe world. Small businesses in the US learned how
to manage cash flow more effectively for growth.
Small shopkeepers in Kenya received business
management and finance training. And economies
in Latin America grew stronger as local entrepreneurs

Moody’s 2019 Corporate Social Responsibility Reportforged new connections. You will read more
about these efforts and others in the pages that
follow — with the common thread being knowledge
helping to fuel inclusion and growth across a wide
range of markets.
We are proud of the progress made on our journey tobe leaders in CSR and of our business activities to help
enterprises make better decisions that form pathways
to creating a better tomorrow. With this in mind, we
continued to grow our sustainable finance initiatives
by making several strategic investments — including
majority stakes in Four Twenty Seven, Inc. and Vigeo
Eiris and a minority stake in SynTao Green Finance —that are enabling us to extend our data and analytics
capabilities further in the environmental, social andgovernance space. We also became a signatory to
the United Nations Global Compact, committed
to its Business Ambition for 1.5°C campaign andtook steps to join the Business Roundtable
and support its Statement on the Purposeof a Corporation, among other activities.
As we reflect on these achievements, I want toacknowledge and thank our Moody’s employees,
who are dedicated to volunteering and embedding
CSR principles throughout our organization.
Together, with their passion and the commitmentof our partners, we will continue to build a brighter
future in both good and challenging times.

“Corporate social responsibility
is in many ways at the heartof our endeavors to enhanceconnection and collaboration
between people, which
supports addressing society’s
most pressing issues.”

Raymond W. McDaniel, Jr.
PRESIDENT & CEO, MOODY’S CORPORATION

3

Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks

About Moody’s
Our company
Moody’s (NYSE: MCO) is a global integrated risk assessment firmthat empowers organizations to make better decisions. Our data,
analytical solutions and insights help decision makers identify
opportunities and manage the risks of doing business with others.
We believe that greater transparency, more informed decisions
and fair access to information open the door to shared progress.
With over 11,000 employees in more than 40 countries,1
Moody’s combines international presence with local expertiseand over a century of experience in financial markets.

“In today’s complex environment,
Moody’s drive for clarity,
knowledge and fairness
matters more than everto our stakeholders.”
ROB FAUBERCHIEF OPERATING OFFICER,
MOODY’S CORPORATION$70 trillion+
in rated debt 2

36,500+rated entities andtransactions worldwide2

10 million+

18 million+

financial statements
representing morethan 20 million global
private firms9

US properties
in our commercial
real estate database3

One mission
500 million+

To provide trusted insights andstandards that help decision makers
act with confidence.

economic, financial anddemographic time series8

350 million+
companies in our privatecompany database4

22,000+67,000+research pieces,indicators and analyses
published annually5

global events andoutreach activities7

1 million+

facilities withclimate risk scores6

1. The completed sale of Moody’s Analytics Knowledge Services on November 8, 2019, resulted in the reduction of approximately 2,800 employees.
2. Moody’s Investors Service, December 31, 2019. 3. Reis.com. 4. Bureau van Dijk, December 2019. 5. Moody’s research, December 2019. 6. Four Twenty Seven, Inc.
7. Moody’s Events and Moody’s Investors Service. 8. Moody’s Analytics. 9. Moody’s Analytics Data Alliance.

Moody’s 2019 Corporate Social Responsibility Report

4Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks

One Moody’s
As the world becomes more interconnected, so do we. In 2019,
our goal was to forge a united identity for the company that not
only celebrates our history but also shows how our business isequipped to meet the changing demands of the marketplace.
As part of this process, Moody’s took on a comprehensive refreshof our mission, vision, purpose and values that involved engaging
a multitude of stakeholders from across the company.

Governance

CreditGreater than the sum
We are supporting better decisions by linking multiple factors,
including cybersecurity, financial crime and environmental, socialand governance (ESG) considerations, to strengthen the market’s
understanding of risk.

SocialEnvironmental

As we do, we are building our capabilities. Our recent investments
in Four Twenty Seven, SynTao Green Finance and Vigeo Eiris
exemplify our commitment to this. Each provides new ESG
analytics and climate risk solutions that add to the power of“One Moody’s.”
For more examples of how Moody’s is uniting our efforts to
help our stakeholders build a brighter future, visit our new
ESG & Climate Risk hub.

Financial crime

Cyber

Together, our extensive capabilities, products and datasets amplify
our ability to serve. As we continue to move toward “One Moody’s,”
we remain as committed as ever to our values of being principled,
inclusive, collaborative, forward-thinking and rigorous.

We aim to take a holistic approach to the consideration of entity risk.

Learn more about Moody’s ESG efforts:
ESG approach

Moody’s 2019 Corporate Social Responsibility Report5Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks

Our CSR strategy and social investing focus areas
We drive progress and measurable impact in our complex and changing world by building more inclusive
economies, stronger communities and an environmentally sustainable future.
To get there, we focus our social investing in three key areas:
Empowering people
with financial
knowledge

Activating anenvironmentally
sustainable future

Helping young
people reach
their potential

Through this approach, we connect people with the knowledge and resources they need to make better
decisions and create a stronger shared tomorrow.

The United Nations Sustainable Development Goals (SDGs) are intended as a blueprint to a better, more sustainable
future. Our own CSR strategy aligns with and supports many of these goals. The SDGs give us another valuable lensthrough which to consider our progress toward addressing these global challenges.
In 2019, Moody’s used the UN Global Compact’s new SDG Action Manager tool to more rigorously map our efforts
and impact to the SDGs. This tool combines the SDGs with B Lab’s B Impact Assessment and the Ten Principles of the
UN Global Compact to enable meaningful business action through self-assessment, benchmarking and improvement.
As a member of the Reporting on the SDGs Action Platform, we also used the report Integrating the SDGs into
Corporate Reporting: A Practical Guide to further align our actions.

“CSR and social investing
are part of the fabric of
our company and integral
to our corporate strategy.
It’s our contribution toa shared future.”
ARLENE ISAACS-LOWE
GLOBAL HEAD OF CSR, MOODY’S CORPORATION
AND PRESIDENT, MOODY’S FOUNDATION

Our work toward the SDGs takes shape through:» Partnerships to foster economic inclusion and entrepren­eurship — especially among women and underserved
communities — through education and access to financial services and lending» Support for finance, technology and economics education and career mentoring, especially for marginalized groups» Credit ratings, research and ESG assessments and clean energy investments, as well as the links between
climate change and financial markets

Moody’s 2019 Corporate Social Responsibility Report

6Year in review
8
Key activities
8

A LOOK BACK AT 20199

A LOOK AHEAD IN 202010
Performance indicators
10 ENVIRONMENTAL
11 SOCIAL
12 RESHAPE TOMORROW™

13
Recognition

Moody’s 2019 Corporate Social Responsibility Report7

Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks

Key activities

A look back at 2019
We believe that progress with measurable impact demands an analytical approach and consistent commitment. Throughout the past year, we set clear goals,
invested in innovative partnerships and took strategic steps to help our stakeholders make better decisions. Some highlights:
INVESTING IN ESG RISK ASSESSMENTPARTNERING FOR REAL IMPACTSTEPPING FORWARD WITH OUR COMMITMENTS

We furthered our promotion of transparent andglobally consistent ESG standards through new
research and added capabilities.

We helped our partners amplify their reach.

We pushed for a more sustainable global financial
system and pledged to hold ourselves accountable.

» Moody’s Investors Service published new generalprinciples for assessing environmental, social andgovernance (ESG) risks and research on the effects
of social considerations on credit quality» Acquired a majority stake in Vigeo Eiris, a providerof ESG data, research and assessments» Acquired a majority stake in Four Twenty Seven, Inc., aprovider of data for assessing physical climate change risks» Acquired a minority stake in SynTao Green Finance,a provider of ESG data and analytics in China

JANUARYFEBRUARY

MARCH

APRIL

» Chaired WEConnect International’s Council on Scaling
Women-Owned Businesses and announced plans forpioneering research» With support from Moody’s, Mission Measurement
published its first report on corporate giving» Joined the UN Global Compact (UNGC) initiative» Took part in CSR Europe’s third Brussels SDG Summit,
sharing our expertise on partnering with nongovernmentalorganizations to drive social impact» Supported the launch of Village Capital’s Finance
Forward Latin America 2019 initiative, which empowers
local entrepreneurs to develop financial health solutions» Announced our Pathway to Prosperity initiativewith America’s Small Business Development Centersto help business advisors and, ultimately, their clients
better understand cash flow management

MAY

JUNE

JULY

» Became a signatory to the Principles for
Responsible Investment

AUGUST» Became a founding member of the UNGC CFO
Taskforce for the SDGs and joined the Reporting on
the SDGs Action Platform» Signed the UNGC Business Ambition for the 1.5°C Pledgecommitting to set science-based targets and achieve
net-zero emissions by 2050
» Joined the Business Roundtable and signed its Statementon the Purpose of a Corporation the following month

SEPTEMBEROCTOBERNOVEMBER

ENABLING BETTER DECISIONSFOR MORE CUSTOMERSCONTINUING TO WORK TOWARD
A SUSTAINABLE FUTURE

PROVIDING TRANSPARENCYFOR OUR STAKEHOLDERS

We made key investments to provide greater
access to some of our core competencies.

We focused on reducing our own environmental
footprint and advancing our sustainability profile.

We provided greater disclosure of our own
ESG practices, and were recognized for it.

» Acquired RiskFirst, a provider of risk analytics technology,
extending our range of risk solutions to the institutionalbuy-side» Launched the first Moody’s Future Solutions™ global
immersive pro bono pilot in China, providing skills-based
volunteering to environmental organizations» Added to the FTSE4Good Index Series» Launched Moody’s Local, a platform of domestic
credit ratings and research for financial institutions,
corporate entities, local governments and other sectors
in Latin America» Initiated our own physical climate risk assessmentwith Four Twenty Seven» Again included in JUST Capital’s JUST U.S. Large Cap
Diversified Index

Moody’s 2019 Corporate Social Responsibility Report» Achieved carbon neutrality for 2019 by purchasing
verified carbon offsets

DECEMBER» Issued first public disclosures informed by Sustainability
Accounting Standards Board (SASB) guidelines» Added to Bloomberg’s Gender-Equality Index
for 2019 policy and performance measures8

Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks

Key activities

A look ahead in 2020
Every year brings new opportunities for better decisions to create more measurable impact toward a brighter future.
Here are some of our planned priorities for 2020.
INVESTING IN ESG RISK ASSESSMENTPARTNERING FOR REAL IMPACTSTEPPING FORWARD WITH OUR COMMITMENTS

We plan to advance our analytical offering thatspans across credit, ESG, sustainable finance andclimate risk solutions. With the recent acquisitionsof Vigeo Eiris and Four Twenty Seven, we are also
working to integrate deeper ESG and climate
data into both credit ratings and separate risk
management solutions, as well as using
Four Twenty Seven’s data to enrich our
climate research.

Moody’s will fund a $1 million program of charitable
donations and other support to help organizations
impacted by COVID-19 and those directly involved
in relief work. We will also increase support toexisting philanthropic partners to help small
businesses and education systems and reconfigure
our employee volunteer programs to assist
communities most affected by the pandemic.
As we do, we will evaluate the measurable
impact of our support to maximize our reach.

We are committed to elevating the awarenessand perception of Moody’s ESG and CSR profiles
across our stakeholder groups, especially in the
EMEA and Asia-Pacific regions. Internally, diversity
and inclusion remains an area of concentrated focus
for 2020. We will continue to address diversity andinclusion within all HR initiatives, including talentacquisition, assessment and development.

ENABLING BETTER DECISIONSFOR MORE CUSTOMERSCONTINUING TO WORK TOWARD
A SUSTAINABLE FUTURE

PROVIDING TRANSPARENCYFOR OUR STAKEHOLDERS

We will keep delivering meaningful, relevant
ratings and research to investors and policymakers.
For example, our findings and views on the credit
and economic impact of the COVID-19 pandemic
are available to all at moodys.com/coronavirus.
To help hospitals and other healthcare organizations
readily identify and qualify medical and personal
protective equipment suppliers, we launched thefree “Know Your Supplier” online portal. And tohelp governmental authorities get funding to small
businesses, we are leveraging our loan origination
tools, data and insights.

In our continued pursuit of carbon neutrality,
we will explore setting science-based targets,
implementing internal carbon pricing, purchasing
renewable energy and more. We are also focusedon improving value and supply chain management,with a priority on examining emissions allocation,
sustainability efforts and diversity measures.

We are dedicated to providing greatertransparency in our disclosures. Specifically,
improvements in how we report on greenhouse gas
emissions (GHG) and energy use — including fuel;electricity; heat, steam and cooling; and waste —will be a key focus in 2020.

Learn more about where Moody’s is going:
Moody’s CSR

Moody’s 2019 Corporate Social Responsibility Report9Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks

Performance indicators

Environmental

Energy			Travel and commuting			

GHG emissions3		

10%

75%

7.52 tCO e

16%

17%

2.70 tCO e

REDUCTION IN ELECTRICITY USE YOY

REDUCTION IN ELECTRICITY USEPER EMPLOYEE YOY

11%MILES COMMUTED USING PUBLIC TRANSPORTOR CARPOOLING1REDUCTION IN BUSINESS TRAVELEMISSIONS YOY2

PER $M REVENUEPER EMPLOYEE22

RENEWABLE ENERGY USESUSTAINABILITY STRIDES IN EUROPE					CERTIFIED CLIMATE PROJECTS SUPPORTING MOODY’S 2019 EMISSIONS OFFSETSIn September 2019, our Prague team
moved into a new office in the prestigious
Butterfly House. The innovative facility earned
BREEAM Excellent certification and features
elevators with regenerative power; automatic,
solar-powered exterior shutters; electricvehicle charging stations; and shelters forbirds and bumblebees.

To balance the residual emissions that result
from our operations, Moody’s supports avariety of certified climate projects to offset
2019 reported emissions (Scope 1, Scope 2:market-based and Scope 3: categories 6 and 7).

Later in the year, we signed a lease to takeover the top two floors of a state-of-the-art
sustainable building in Vilnius, Lithuania.
We plan to move into the space later in 2020.

Butterfly House

We select these projects based not
only on their emissions mitigation andavoidance potential but also on their wider
contribution to the SDGs. In alignment withour commitment to carbon neutrality, we
intend to monitor technological innovations
to further reduce our impact in future years.

Wind project (India)
REDD+ project (Canada)Wind project (Costa Rica)

Clean cookstoves project (Kenya)

See pages A-19 and A-20 for more information on Moody’s 2019 environmental performance.
The number of employees used for calculations on this page is 13,467; this corresponds to the number of employees in Moody’s 10-K filing plus the number of regularMoody’s Analytics Knowledge Services employees up to the date of completed sale of that business.
1. Based on a representative sample of employees across multiple geographies. The employee survey received 2,296 valid responses.
2. Air travel emissions were reduced 27% YOY. In 2019, additional business travel emissions categories were calculated: rail, car rental, black car and hotel.
3. Figures in metric tons of carbon dioxide equivalent (tCO2e). Emissions calculations based on Scope 1, Scope 2: market-based and Scope 3: categories 6 and 7.

Moody’s 2019 Corporate Social Responsibility Report10Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks

Performance indicators

SocialAs we make measurable progress in our three CSR areas of focus, we partner with a range of organizations through initiatives
such as Reshape Tomorrow™ and programs such as Pathway to Prosperity. To help track our investment over time, we use theMission Measurement Impact Genome Project® methodology and scorecard. See 2019 scorecard highlights below.

Key impact
metrics

Total reach
Beneficiary
demographics

Empowering people withfinancial knowledge

Activating an environmentally
sustainable future

Helping young people
reach their potential

Building upon our core expertise inserving the global capital markets, wehave undertaken a series of initiatives
and partnerships dedicated to helping
people overcome the challenges ofgrowing a small business, including
access to credit and capital.

We continually seek to reduce
Moody’s adverse impact on theplanet. And, amid increasingly frequentand severe climate-related disasters,
our grants prioritize organizations witha mission of environmental sustainability,
especially in emerging economies.

We work with schools and nonprofits
around the world to prepare students
ages 15–24 for successful careers
in finance, technology and economics
via mentorship initiatives, skillsdevelopment programs, internships
and other educational opportunities.

$1.4 M$355K$1.2 M

INVESTEDINVESTEDINVESTED

35 COUNTRIES AFFECTED

40 COUNTRIES AFFECTED

63 COUNTRIES AFFECTED

94.5% MEDIAN EFFICACY RATE

100% MEDIAN EFFICACY RATE

94.4% MEDIAN EFFICACY RATE

8,698 BENEFICIARIES

108,434 BENEFICIARIES

96,387 BENEFICIARIES

79% FEMALE
21% MALE<1% NONBINARY

53% FEMALE
47% MALE
0% NONBINARY

54% FEMALE
46% MALE<1% NONBINARY

SDGs supported

Participating grantees reported on their most recent set of 12-month results as of January 2020.
Data is not reflective of all Moody’s grant partners. Dollar amounts invested are approximate.

Moody’s 2019 Corporate Social Responsibility Report

See our partnerships in action
11

Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks

Social | Reshape Tomorrow™

Empowering people across the globe
Through Reshape Tomorrow, our flagship financial inclusion initiative, we are delivering on our commitment to empower people
with financial knowledge. In 2019, we partnered with innovative organizations to help bring thousands of entrepreneurs the tools,
skills and knowledge they need to make better decisions and grow their small businesses.
ACUMEN invests in emerging businesses
working to disrupt the cycle of poverty.
With Moody’s support, the organization is
improving the way its local teams engage
with these companies after investment.

THE FORE helps small and early-stage
charities and social enterprises secure funding
and achieve scale and sustainability. Throughgrants and volunteering, Moody’s has helped
The Fore support 55 UK-based organizations.

VILLAGE CAPITAL finds, trains and invests
in entrepreneurs solving major global
problems. In 2019, Moody’s supported
Village Capital’s Finance Forward Latin
America, an accelerator for startups
developing solutions for financial health.

WECONNECT INTERNATIONAL empowers
women in business to grow and scale theirenterprises. In partnership with Moody’s,
WEConnect launched its Financing Your
Growing Business training program for
women entrepreneurs.

ECHOING GREEN equips emerging social
entrepreneurs with resources and training
to grow their businesses. Moody’s has
worked closely with the organization todevelop a loan-readiness curriculum aspart of its larger program.
THE FOUNDATION FOR SMALL
BUSINESS DEVELOPMENT is dedicatedto helping entrepreneurs succeed. Moody’s
has partnered with the foundation to create
a free cash flow certification program forsmall business advisors and owners
across the United States.
TECHNOSERVE helps entrepreneurs in thedeveloping world build competitive farms,
businesses and industries. In collaboration
with Moody’s, the nonprofit has mentored
hundreds of small business owners in Kenya.
THE ASIA FOUNDATION is a nonprofit
committed to improving lives acrossAsia. Since partnering with Moody’s, thefoundation has expanded its migrant women’s
entrepreneurship program to provide businesstraining to women in China.
Headquarters

Moody’s 2019 Corporate Social Responsibility Report

Areas of impact

Global reachNational reach12

Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks

Recognition
We are proud of the awards and recognition we have received from organizations across the world.
The following is a selection of those most relevant to this report.

Ratings and researchView the full list of awards Moody’s has received at our awards site.

Our leadership in bringing clarity to capital markets
through our credit ratings, research and risk analysis
has earned global and regional honors.

Inclusion in ESG indicesDiversity and inclusion

NYSE: MCO

Moody’s
FTSE4Good Index Series

Bloomberg GenderEquality Index

JUST Capital’s JUST U.S.
Large Cap Diversified Index

Social impact
Moody’s

Moody’s is proud of the accolades for our volunteer efforts
and social outreach in communities around the world.
AmCham CARES High Distinction
Award 2019 – 2020 and Enterprise
Honoree 2017– 2018
(4x winner)Hong Kong Council of Social Service’s
Caring Company (3x recognition)Awarded to Moody’s Asia Pacific Limited

Moody’s Investors Service

The Asset Triple A Rating Agencyof the Year Awards 2019(Multi-award winner, Pitch)

A variety of organizations continue to recognize
Moody’s as one of the best places to work.
Working Mother 100 Best
Companies (4x winner)

Institutional Investor Poll
Global Credit Rating Agency: 2019
#1 US Credit Rating Agency:
2012 – 2018 (8x winner, Poll)

Stonewall Top 100 Employers 2019,
Championing LGBT Inclusion in
Workplace, #44(3x winner)

Community BusinessHong Kong LGBT+ Inclusion
Index – Silver Standard(2x winner)

Human Rights Campaign Foundation
100% Corporate Equality Index:
Best Places to Work (8x winner)

Global Capital Bond Awards 2019(Multi-award winner, Poll)

Data and analytics
Moody’s Analytics

Our data and analytical capabilities, spanning finance,accounting, compliance and risk functions, have earned
recognition from industry experts.
Chartis RiskTech100® 2020(Multi-award winner)

Working Mother Best
Companies for Dads
(2x winner)
RiskTech Quadrant®

Category Leader
KYC Solutions, 2019

NYC Service Mayoral
Recognition Award (3x winner)

Moody’s 2019 Corporate Social Responsibility Report

Chartis RiskTech Quadrant®,
Category Leader for KYC Solutions

UK Armed Forces Covenant
Silver Award
FocusEconomics Analyst
Forecast Awards 2019(Multi-award winner)

13

ESG approach
From data to impact: Bringing ESG transparency to the market

Moody’s 2019 Corporate Social Responsibility Report14

Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks

From data to impact:
Bringing ESG transparency
to the market

Demand for environmental, social and governance(ESG) tools, resources and expertise continues to rise.
Over the past year, we made it a priority to provide ESG
data, assessments, analytics, research and benchmark
products in service of our mission to help companies
make better decisions. We have also increased our focus
on demonstrating the systematic and transparent
incorporation of material ESG issues into credit ratings.
Moody’s ESG and climate capabilities expanded during
2019 as we made strategic investments in ESG leaders
such as Vigeo Eiris, Four Twenty Seven, Inc. and SynTao
Green Finance, as well as created a central teamdedicated to driving our ESG offering.
Our increasingly sophisticated understanding of
the trends and market demands for ESG and climate
risk assessments gives us an opportunity to deliveron our mission.

Smart acquisitions
Moody’s Investors Service (MIS) has always incorporated
all risks, including ESG considerations, into credit
ratings where relevant and material. As a global
integrated risk assessment firm, Moody’s now provides
ESG and climate insights across three main areas:
standalone ESG, sustainable finance and climate risk
solutions via our newly acquired affiliates; transparent
and systematic integration of ESG consideration withthe rating agency; and ESG data and insights integrated
into Moody’s Analytics’ risk management solutions.

Moody’s 2019 Corporate Social Responsibility Report15

Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks

FROM DATA TO IMPACT: BRINGING ESG TRANSPARENCY TO THE MARKET

Moody’s investments in 2019 included majority
stakes in Vigeo Eiris, a global provider of ESG research,data and assessments, and Four Twenty Seven, aprovider of climate data and risk analysis, as well asa minority stake in ESG and sustainability specialist
SynTao Green Finance in China.
In a September 2019 report, MIS used
Four Twenty Seven’s data on exposure to heatstress in US jurisdictions alongside informationon outstanding debt and credit quality. We foundthat 21% of outstanding debt that Moody’s rates is
exposed to high or very high heat stress. “That analysis
shows the power of bringing different data expertise
together in a new and different way,” says Lisa Rabbe,
chief government and public affairs officer of Moody’s
Corporation. “It really highlights the power of theseacquisitions paired with what Moody’s has always
done.” The response from regulators and policymakers
to the Four Twenty Seven acquisition has been positive.

We saw similar benefits from our Vigeo Eiris
acquisition. “Vigeo Eiris is well known in its fieldof expertise,” says Gwen Safa, managing directorof Strategy & Marketing for Moody’s Corporation.
“Moody’s Investors Service was one of the firstglobal agencies to assess green bonds, backin 2016. Now, with the combined expertise of
Vigeo Eiris and MIS, we are becoming leaders inassessing labeled bonds and sustainability-linked
debt globally.”“With the combined expertise of Vigeo Eiris
and Moody’s Investors Service, we are
becoming leaders in assessing labeled bonds
and sustainability-linked debt globally.”
GWEN SAFAMANAGING DIRECTOR, STRATEGY & MARKETING,
MOODY’S CORPORATION

Four Twenty Seven data shows heat stress will be concentrated in the central Midwest“I recently attended a meeting at Climate Week NYC
with senators from the Special Committee on Climate
Crisis,” says Rabbe. “When they learned how the
Four Twenty Seven dataset was used in the heat map,they affirmed that this was exactly the kind of data
everybody needs right now. And these new datasetsand capabilities have been met with very high degrees
of enthusiasm from every policymaker and every
regulator we’ve spoken to.”We are now integrating data from Four Twenty Seven
into some of Moody’s business lines. For example,
aggregated Four Twenty Seven climate risk data is
now available on the Reis Network, Moody’s Analytics’commercial real estate platform.
Low

Moody’s 2019 Corporate Social Responsibility Report

MediumHigh

Very highData based on
Four Twenty Seven’s
heat stress indicator.
Sources: Four Twenty Seven,
Moody’s Investors Service.

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Stories of Impact

Reporting Frameworks

FROM DATA TO IMPACT: BRINGING ESG TRANSPARENCY TO THE MARKET

Improving ESG assessments
Analysis of how social considerations affect creditworthiness has historically been the least developed
among ESG considerations. Social issues may include an issuer’s interactions with employees, customers,
supply chain partners, counterparties and society at large.
Of note today, MIS regards the recent and rapid spread of COVID-19 as a social risk under our ESG framework,
given its substantial threat to public health and safety, with credit implications that will continue to play out
in the years to come. Measures we took in 2019 to classify social considerations are helping us understandand analyze the severe credit shock sparked by the 2020 pandemic.
“Defining material social considerations is difficult because the underlying issues are often intangible ordifficult to measure — there were no hard metrics,” says Swami Venkataraman, senior vice president at MIS.
“This shifted last year.”
In February 2019, MIS published a formal classification of social risk considerations. In October 2019,
MIS published a heat map illustrating the credit materiality of social considerations to 82 global sectors
with total rated debt of about $78 trillion.
The heat map report was the first of its kind and one of more than 220 MIS research pieces publishedon ESG in 2019. The report tells investors which sectors are more exposed to social risks and explains
how we classify those risks. More than 1,200 of our analysts across the globe collaborated to produce
the classifications, and the result has been compared with outside frameworks such as the Sustainability
Accounting Standards Board (SASB) and the Principles for Responsible Investment (PRI).
Response from market participants has been very positive. “We added clarity to something that people
were struggling to understand,” says Venkataraman.
In China, where financial regulators will require all publicly listed companies and bond issuers todisclose their ESG risk in 2020, we have expanded our commitment and expertise by investingin SynTao Green Finance.
“We are now building an integrated risk management solution and not just a point solution for
ESG as if it is a standalone risk,” says Nick Reed, executive director at Moody’s Analytics. “It’s about
discovering what the integration of several risk types looks like. We have a long history of being able
to do just that as new risks emerge.”“Our goal for 2020 is to scale up governance andcarbon transition assessments substantially.”

NEARLY30

YEARS OF ESG EXPERIENCE
Our affiliate Vigeo Eiris has been a pioneer
in ESG analysis since the 1990s.

220+

MIS RESEARCH REPORTS RELATED TOESG CONSIDERATIONS IN 2019

38,000+CREDIT RATINGS

ESG considerations are integrated
into MIS credit ratings.

5,000+ESG ASSESSMENTSASSIGNED BY VIGEO EIRIS6

CLIMATE HAZARDS
Four Twenty Seven assesses at the facility-level:
heat stress, water stress, floods, hurricanes
and typhoons, sea level rise and wildfires(forthcoming).

BRIAN CAHILL
GLOBAL HEAD OF ESG, MOODY’S INVESTORS SERVICE

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FROM DATA TO IMPACT: BRINGING ESG TRANSPARENCY TO THE MARKETThe social risks heat map complements our earlier issuer-level governance assessment efforts, including
the 2019 publication of a framework to assess corporate governance at publicly traded nonfinancial
corporations. Moody’s governance assessment framework helps credit analysts and investors compare
companies on a consistent, transparent and verifiable basis, giving greater visibility into the governancefactors that could most influence credit risk. These assessments also provide a relative ranking ofgovernance risk characteristics.
“Our goal for 2020 is to scale up governance and carbon transition assessments substantially,”
says Brian Cahill, global head of ESG at MIS.
MIS also continued to improve issuer-level analysis for carbon transition risk. Beginning in 2018, we
identified which sectors were at risk with our Environmental Risks — Global: Heat Map report. We thenturned our attention to developing a framework for specific companies at risk. And our carbon transitionassessments helped expand our toolbox for bringing ESG intelligence to market.
“There is a lot of intention in the market to move toward more responsible capitalism,” says Andrea
Blackman, global head of ESG and Climate Risk Business at Moody’s Corporation. “Moody’s can help
by bringing data and information modeling and risk evaluation capabilities together to formulate
risk and valuation.”
And serving the practical business of the market is both Moody’s past and future as we move
forward into the ESG space.

Sustainability rating
certificate for Moody’s
In addition to the acquisition of Vigeo Eiris, Moody’s
has solicited Vigeo Eiris to conduct an independent
ESG and sustainability rating.
As of March 2020, Moody’s holds an A2+ rating,based on an overall score of 53/100. Moody’sranks within the top 10% of all companies rated by
Vigeo Eiris worldwide and first out of 58 within theBusiness Support Services North American sector,
and we aspire to continue improving our overall score.
Rank in sector

1/58

Rank in region

5/1,252

Moody’s is proud to help standardize and shape the sustainable finance market. In this shifting regulatory landscape,
we offer a unique perspective to our industry peers. Together, we are united for positive change.

Rank in universe

268/4,859

ESG reporting rate

87%

UN Global Compact

Business Roundtable

Sector average

61%

In 2019, we became a founding member of the
UN Global Compact CFO Taskforce for the SDGs,
signed its Business Ambition for 1.5°C pledge, joined
the Reporting on the SDGs Action Platform and,through CSR Europe, shared our expertise insustainable finance and advanced the conversation
with the European Commission.

We also took steps to join the Business Roundtable
at the participant level and sign its Statement on the
Purpose of a Corporation in 2019. “The Roundtable isa great opportunity for us to help corporate America’s
CEO population who signed that statement to walkthe talk on ESG,” says Lisa Rabbe, chief government
and public affairs officer of Moody’s Corporation.

Leaning into leadership

Moody’s 2019 Corporate Social Responsibility Report

VIEW FULL SUSTAINABILITY RATING CERTIFICATE ›Vigeo Eiris is a majority-owned non-credit rating agency affiliateof Moody’s Corporation. Vigeo Eiris produces assessments andresearch using its own methodologies.

18

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FROM DATA TO IMPACT: BRINGING ESG TRANSPARENCY TO THE MARKET

Q&A with Wendy Cheong
Managing Director, Regional Head of Asia-Pacific, Moody’s Investors Service
Heading MIS’ growth strategy for Asia-Pacific has given Wendy Cheong a unique perspective on China’s regulatory
landscape and approach to ESG issues. Through her management of operations and joint ventures in the region,
she has seen the acceleration of change firsthand.
Q: What is the state of ESG andsustainable finance in China?

Q: Why did Moody’s decide toinvest in SynTao Green Finance?

A: We’re seeing strong momentum
and tremendous opportunities in
China, where the move toward ESG
integration has historically been driven
by the government and international
investors. Specifically, the government,along with other institutions, hastaken a leading role in developing
the ESG markets through pilots,
education, training and policies aswell as regulatory guidance. We’re
now also seeing increasing awarenessamong domestic investors. The
Chinese government has announced
requirements for publicly listedcompanies and bond issuers todisclose ESG risks by 2020, which
is fueling transparency.

Q: You just mentioned a
few firms Moody’s acquiredin 2019 — what is next?

A: The investment in SynTao
Green Finance aligns with Moody’s
commitment to promote globallyconsistent approaches for assessing
ESG risks and opportunities — forcredit and beyond. SynTao Green
Finance’s China-specific datasets
enhance Moody’s global ESG researchand data, and complement Moody’s
acquisitions in 2019 of Vigeo Eiris,a leading global provider of ESG
research, data and assessments,and of Four Twenty Seven, a leader
in climate data and risk analysis.

A: Demand for climate risk, sustainablefinance and ESG solutions has grown
rapidly, and we will leverage thestrengths and capabilities of SynTao
Green Finance and our other new
affiliates to become a one-stop shop
for credit, ESG, cybersecurity andclimate risk solutions. Together withthese affiliates, we’ll seek to provide
a range of solutions for investor andissuer ESG needs, including joint
research, product development
and technical cooperation.

Moody’s 2019 Corporate Social Responsibility Report

China Sustainable Investment Review 2019
This SynTao Green Finance report illustrates bestpractices and latest industry trends from global ESG
practitioners and is used by domestic institutional
investors in China as ESG investment guidance. It gainedcommendations from international organizations suchas the UN Environment Programme Finance Initiative,
PRI, International Finance Corporation, London Schoolof Economics and domestic organizations in China such as
the China Banking and Insurance Regulatory Commission
and the Sustainable Stock Exchange at China Social
Investment Forum.
VIEW THE REPORT ›19

Stories of impact
Every year, we have an opportunity to look back on some of the highlights of our CSR work.
The following represent only a sample of the better decisions and brighter futures we enabled in 2019.

21

29

PATHWAY TO PROSPERITYLATIN AMERICA

Paving a “pathway to prosperity”
one small business at a time

Accelerating financial healthfor Latin American businesses

24

32

TECHNOSERVEMOODY’S FUTURE SOLUTIONS™

Giving Kenya’s duka owners
tools to thrive

Taking pro bono global

26
BRUNEL UNIVERSITY USWAP

Unlocking untapped potential
for London students

To read more, visit our CSR microsite

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Paving a “pathway toprosperity” one small
business at a time
Small businesses are the backbone of the US economy. However, with recent uncertainty caused
by COVID-19, many are struggling to stay afloat. Even in less turbulent times, entrepreneurs often
lack insight into what their finances look like from day to day, how much cash they have on handor whether they will be able to pay their bills on time. In fact, according to a March 2018 Preferred
CFO study, 82% of business failures are a result of poor cash flow management.
One of Moody’s key CSR focus areas is empowering people with financial knowledge, which is why
we made cash flow management the focus of a 2019 initiative for US entrepreneurs. This financial
empowerment initiative was created in partnership with the Foundation for Small Business
Development (FFSBD), the philanthropic arm of America’s Small Business Development Centers(SBDCs). It is the first initiative under Moody’s new Pathway to Prosperity program, which is partof our larger Reshape Tomorrow™ initiative.
Through this inaugural initiative, we are providing support to the nearly 1,000 locations acrossthe nationwide network of SBDCs. As Pathway to Prosperity continues to grow, this initiativeand others like it will help deliver the resources and training that entrepreneurs need to overcome
the challenges of growing a small business.

Learn more about how we’re
responding to COVID-19.

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PAVING A “PATHWAY TO PROSPERITY” ONE SMALL BUSINESS AT A TIME

Teaching advisors, helping businesses flourish
The 2019 financial empowerment initiative provides
business advisors with free resources, including
training sessions, certifications and access to asoftware program designed to enable simple,
powerful and predictive cash flow for businesses.

Training the trainers

TRAININGSESSIONS“Pathway to Prosperity is helping me help my clients
understand a more intuitive way to work throughtheir unique business needs and easily track finances,”says Chaimie Pewitt, former executive director of theSouthern Colorado SBDC. “The training sessions help
advisors like me support our clients with a range ofuseful resources.”
In 2019, Pathway to Prosperity held three in-person
advisor sessions: the New England SBDC Professional
Development Conference in May, America’s SBDC
Annual Conference in September and the Virginia
Professional Development Conference in November.
Training sessions can also be hosted online, allowing
even more advisors across the nation to take part as
the program scales.
To date, 174 business advisors have been trained —168 in person and six online. Business advisors who
attended these sessions were then able to pass on
the knowledge they received to their end clients,
further extending the reach of these trainings.

CERTIFICATIONS168

ADVISORSTRAINED IN PERSON

BUSINESSADVISORSACCESS TO
SOFTWARE

6

ADVISORSTRAINED ONLINEADVISORSESSIONS“Pathway to Prosperity is helping me help my clients
understand a more intuitive way to work through theirunique business needs and easily track finances.”

174

ADVISORS TRAINEDCHAIMIE PEWITTFORMER EXECUTIVE DIRECTOR, SOUTHERN COLORADO SBDCSMALL BUSINESS OWNERS LEARNABOUT CASH FLOW MANAGEMENTFROM THEIR ADVISORS

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PAVING A “PATHWAY TO PROSPERITY” ONE SMALL BUSINESS AT A TIME

Potential through partnershipAs the economic landscape continues to shift in 2020, Moody’s and America’s SBDC will assess how we canbest support small businesses. America’s SBDC is slated to host additional business advisor training sessions
throughout the US, and we plan to roll out new advisor-led trainings to business owners. These upcoming
sessions will focus on driving the adoption and use of cash flow management resources provided by the
SBDC advisors who have been trained in the program.
“Our ultimate goal is to help thousands of small business owners and employees to better manage theirfinances and secure their operations,” says Charles “Tee” Rowe, president and CEO of America’s SBDC.
“The ongoing partnership with Moody’s and FFSBD allows us to further develop innovative ways to serve
the needs of the small business community and brings us one step closer to achieving this goal.”
NEARLY

1,000

SBDC LOCATIONS SUPPORTED THROUGHPATHWAY TO PROSPERITY

82%

BUSINESSES THAT FAIL AS A RESULT OF
POOR CASH FLOW MANAGEMENT

82++18J
82“Our ultimate goal is to help thousands of small business owners and employees
to better manage their finances and secure their operations.”
CHARLES “TEE” ROWEPRESIDENT AND CEO, AMERICA’S SBDC

Moody’s 2019 Corporate Social Responsibility Report

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Giving Kenya’s duka
owners tools to thrive
Three years ago, single mother Nancy Wambui was living with her young son in the back of her shop in
Kenya’s capital of Nairobi, selling a small stock of eggs, tomatoes, milk and cakes. She had capital of just$50. Today, her shop is valued at over $4,000, and her future plans for the business include expanding into
wholesale and opening other locations. She is purchasing land valued at $20,000 on which she plans toconstruct rental houses.
Wambui attributes her success to what she learned about savings and loan readiness through the Smart
Duka initiative, which supports mom and pop shops like hers — known in Kenya as “dukas.” In 2019, thisprogram expanded as a result of a collaboration between Moody’s and our Reshape Tomorrow™ partner
TechnoServe, a nonprofit operating in 29 countries that works with enterprising women and men in thedeveloping world to build competitive farms, businesses and industries. Together, our organizations are
helping to reduce unemployment, boost local economies and transform lives across Kenya and beyond.

1,025

SHOP OWNERS WHO BENEFITED FROMTHE SMART DUKA INITIATIVE IN 2019

“We’re not just giving people one fish and expecting
them to make do. Through the Smart Duka program,
we’re teaching people how to fish and helping them
thrive for many years to come.”
ELSIE NGINA

180

BUSINESS ADVISOR, TECHNOSERVESHOP OWNERS WHO BENEFITED FROM
THE PROGRAM TRAINING IN 2019

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GIVING KENYA’S DUKA OWNERS TOOLS TO THRIVE

Small shops driving economic growth

Personal progress, profitable growth

Small businesses are vital to the economy in Nairobi,
where more than half the population lives in
impoverished areas.1 Dukas play an importantrole in helping lift residents out of poverty.

Wambui’s story is just one of many personal
successes to come out of Smart Duka. For Florence
Muthoni, another duka owner in Nairobi, theprogram gave her the skills she needed to bounceback after initial failure. Following her mother’s
death, Muthoni spent years hawking wares on
the city’s streets before she could save enoughmoney to open a shop that sold cereal.

So far, the Smart Duka program has helped 1,025
Nairobi shop owners, more than half of whom are
women, get the support and training they need tostart and maintain sustainable business models andgenerate profit to support their families. And in thenext five years, the program aims to train 100,000
entrepreneurial owners across Kenya to expand
their business and financial management skills.

Hands-on training with financial experts
To date, financial experts from Moody’s haveconducted six virtual training sessions with
120 duka owners. In addition, a team of ourvolunteers and TechnoServe business counselors
held an in-person mentorship session for 60
shop owners in Nairobi in July 2019. These digitaland on-the-ground trainings empower duka
owners with important elements of financial
management, including supply chain handlingand shop management practices.
“It was a great experience to work with the Kenyan
duka owners who have a passion to learn about
best financial management practices,” says Sven
Reinke, senior vice president of Moody’s InvestorsService. “Giving people the tools they need to help
themselves is a great way to ensure their businesses
are successful in the long run.”With fierce competition, she could not keep
customers coming in, so she had to shut it down.
About a year later, she made one more attempt,
using the last of the money she had received
from selling her cereal shop to buy anotherduka. By this time, she had also discovered
TechnoServe’s program.
“The timing couldn’t have been more perfect,”
she says. “Now, I go to work every day and get toapply what I have learned from the Smart Duka
program. It has taught me a lot about expanding
my inventory to give customers what they want.
And giving them what they want keeps themcoming back.”
We hope Nairobian entrepreneurs like Muthoniand Wambui continue to thrive long after the
Smart Duka program ends. “Moody’s believes in
the mission of transforming people’s lives, and ourpartnership has been exceptional,” says Elsie Ngina,
a business advisor with TechnoServe. “We’re notjust giving people one fish and expecting them tomake do. Through the Smart Duka program, we’reteaching people how to fish and helping them
thrive for many years to come.”

Giving people the tools they need
SIX VIRTUALTRAINING SESSIONS

120

DUKA OWNERS

ONE IN-PERSONMENTORSHIP PROGRAM

60

SHOP OWNERS

MORE STABLE SMALL BUSINESSESTHROUGH SUPPLY CHAIN HANDLINGAND SHOP MANAGEMENT PRACTICES“[The program] has taught me a lot about
expanding my inventory to give customers what
they want. And giving them what they want
keeps them coming back.”
FLORENCE MUTHONISMALL DUKA OWNER IN NAIROBI

1. Population and Health Dynamics in Nairobi’s Informal Settlements: Report of the Nairobi Cross-sectional Slums Survey 2012, African Population and Health Research Center, January 1, 2014.

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Unlocking untapped potential
for London students
As a young teenager, C.L.* grew up in one of the poorest areas in London’s borough of Kensington and
Chelsea, where attending a prestigious college was not in the cards. “My secondary school teachers thought
I couldn’t maintain a university lifestyle,” she says. “Instead, they directed me to take an apprenticeshipor a BTEC [vocational qualification].”But then she found the Urban Scholars Widening Access Programme (USWAP) at Brunel University London.
Funded and supported by Moody’s for 15 years, the USWAP champions secondary school students fromunderserved backgrounds and provides multiple levels of support — including subsidized coursework,
mentorships and summer programming — to engage students in learning.
Her time with the USWAP encouraged C.L. to break out of her shell and dream bigger about her future.
Today, at 19, she is an undergraduate law student at Brunel and plans to become a fully qualified barristerwhen she graduates. “The USWAP really encouraged me to become the person I am,” she says.
C.L.’s success story is just one of more than 700 created over the last decade and a half. In 2019, Moody’s
and Brunel celebrated these and all the stories yet to come by bringing alumni, students, faculty andbusiness leaders together in an event that showcased the long-term benefit the USWAP creates in
the lives of its students.

“It is one thing to read a report and see statistics on paper, but it
is another experience entirely to hear young people speak about
the huge impact this program has had on their lives.”
RUDO MUTAMBIRANWACSR REGIONAL HEAD, EMEA AND ASIA-PACIFIC, MOODY’S CORPORATION20%STUDENTS ACHIEVING TARGET EXAM GRADES
UPON ENTRY TO THE USWAPSINCE THE PROGRAM’S LAUNCH IN 2004

91%

STUDENTS WHO HAVE GONE ON TO
GRADUATE FROM A UNIVERSITY

83%

MEMBERS OF MOST RECENT USWAP ALUMNIGROUP STUDYING STEM OR FINANCE

65%

THOSE AT RUSSELL GROUP(HIGHER-TARIFF) UNIVERSITIES*Only first names or initials have been used for student and alumni privacy.

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UNLOCKING UNTAPPED POTENTIAL FOR LONDON STUDENTS

Surfacing and amplifying submerged talent
Upon entry to the USWAP, roughly 20% of students are achieving target exam grades, and like C.L.,
most face a low likelihood of attending a university. But in many cases, low exam scores are more a
product of environmental challenges than of ability.

“The USWAP really encouraged me to become
the person I am.”C.L.*
ALUMNA, USWAPUSWAP participants are selected by talent coordinators from their secondary schools using a system
informed by Brunel Professor Valsa Koshy. Her research demonstrates that identifying submerged talent
in underserved students and giving them a system of support helps increase their academic achievements,
foster higher-education aspirations and build the social skills and self-esteem they need to become
successful after graduation.
Moody’s helps fund tutoring, mentoring and peer networking support so that students can improvetheir exam scores. Students also receive help applying for funding opportunities and university admission.
And, as a partner, Moody’s hosts up to three Brunel Urban Scholar students in our summer work experience
program every year, in addition to offering in-office workshops to Urban Scholar students.
The efforts are paying off: Since the program’s launch in 2004, 91% of students have gone on to graduate
from a university. Now, 83% of the most recent USWAP alumni group is studying STEM or finance,
and 65% are at Russell Group (higher-tariff) universities.

A path toward success
MOODY’S OFFERS:

IN-OFFICE WORKSHOPSPAID INTERNSHIPSSTUDENTSELECTEDFOR THEUSWAPMOODY’S HELPS FUND:» Tutoring» Mentoring» Peer networking support

SUMMER WORKEXPERIENCE PROGRAMFOR UP TO THREESTUDENTS*Only first names or initials have been used for student and alumni privacy.

Moody’s 2019 Corporate Social Responsibility Report27

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UNLOCKING UNTAPPED POTENTIAL FOR LONDON STUDENTS

A celebration years in the making

Championing the next generation of leaders

Statistics are important, but for Rudo Mutambiranwa, CSR regional head of EMEA and Asia-Pacific at
Moody’s Corporation, hearing firsthand accounts from the young people who have benefited from theprogram is even more powerful. “It is one thing to read a report and see statistics on paper,” Mutambiranwa
says, “but it is another experience entirely to hear young people speak about the huge impact this program
has had on their lives. It’s inspiring.”

In service to our focus on helping young people reach theirpotential, we are working with schools and nonprofits incommunities around the world to help prepare tomorrow’s leaders
for successful careers in finance, technology and economics.

Mutambiranwa was among the Moody’s representatives who joined Brunel faculty, 40 USWAP alumni and100 current program participants at the 15-year celebration event last summer. There, alumni shared theirstories and words of encouragement.

Generation Giga Girls (G3) Data Analytics Program“Through this program, I was selected to intern for the Moody’s banking team in the UK and Ireland,” said
John,* a USWAP alumnus who now has a successful banking career in London. “It opened my eyes to acareer in finance and helped support my decision to study economics at university. Before entering the
program, I never thought this field of study would be an option for me.”For recent alumnae Frankie and Lizzie,* the impact was just as tangible. Both young women took a breakfrom their studies in the US to speak at the event about their studies abroad and experiences applying
for scholarships. Both are receiving scholarships worth £90,000 per year through the Sutton Trust US
Programme, in partnership with the Fulbright Commission. Through the USWAP, they had many one-on-one
sessions with program staff to complete their applications, do practice interviews and receive information
about how to take full advantage of studying overseas.
As the USWAP continues to grow, we hope the program touches many more lives and raises the submerged
talent of London’s youth to a place where it can make us all stronger.

“[The internship] opened my eyes to a career in finance and helped support
my decision to study economics at university. Before entering the program,I never thought this field of study would be an option for me.”JOHN*
ALUMNUS, USWAP

A few more success stories from 2019
Together, Moody’s and longstanding partner Girls Inc. arecreating spaces where girls can build their skills in technology
and data analytics. In 2019, the G3 program expanded outsideof New York for the first time in its five-year history to 11 newlocations in the US and one in Canada.
LEARN MORE ›CareerTrackers
With funding from the Moody’s Foundation, theCareerTrackers internship program in Australia piloted aweeklong work-shadowing program for indigenous highschool students during the school holidays. The students
shadowed “buddies” working at 15 organizations acrossvarious STEM-related industries, including Moody’s.
Gladesmore Community School
When London’s Gladesmore Community School was
struggling with governmental spending cuts to education,
Moody’s volunteers helped identify sources of private
and public funding to ensure continued success for thesecondary school’s nearly 1,300 students. In addition,
Moody’s employees mentored students and visitedthem at Gladesmore throughout the year.
LEARN MORE ›*Only first names or initials have been used for student and alumni privacy.

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Accelerating financial healthfor Latin American businesses
Moody’s has a strong and growing presence in Latin America. In 2019, we launched Moody’s Local,
a domestic ratings platform focused on serving the needs of local capital markets in Latin America.
That is why we have also expanded our CSR efforts there, as part of our commitment to supporting
the social, environmental and financial health of Latin American communities.
In a strong example of our focus in the region, we collaborated with our Reshape Tomorrow™ partner
Village Capital to host Finance Forward Latin America 2019.
Despite a recent increase in access to bank accounts, many Latin American small and medium-sizedbusinesses continue to battle income instability. With the prevalence of a cash-based economy andinsufficient financial education, it can be difficult for people to take the necessary steps to improve theirfinancial health. Known for its unique peer-selected investment process, Village Capital finds, trains andinvests in early-stage entrepreneurs solving major global problems. The organization also runs one of
the most active financial health accelerators in the world, with more than 20 programs that havesupported over 250 startups worldwide since 2014.
“We’ve seen real progress on financial inclusion in the past few years. But simply being included is only
the start,” says Village Capital CEO Allie Burns. “Now that people are in the system, we need to makesure they can actually use the system to build their financial health.”“We’ve seen real progress on financial inclusion in the past
few years. But simply being included is only the start.”
ALLIE BURNS
CEO, VILLAGE CAPITAL

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ACCELERATING FINANCIAL HEALTH FOR LATIN AMERICAN BUSINESSES

Regional startups, real solutions
Micro, small and medium-sized enterprises can play a significant role in generating economic activity andemployment. Yet just 45% of those enterprises in Latin America survive longer than two years, comparedwith nearly 80% in Europe. Meanwhile, these small business owners grapple with the stressful financial
situations that all business owners face, such as managing cash flow and liquidity and accessing capital.
With Finance Forward Latin America 2019, Moody’s and Village Capital aimed to empower entrepreneurs
with the financial knowledge and resources they need to succeed and to create a positive impact in theircommunities. Developed as part of a multiyear global coalition created in partnership with MetLife
Foundation, PayPal and other local partners, the program invited Latin American entrepreneurs to solve
some of their region’s most pressing financial health challenges.
After reviewing 182 applications, Moody’s, Village Capital and the other major partners chose 12 startups
from across Latin America to participate, including companies from Brazil, Chile, Colombia and Mexico.
The initiative marked the first time that Village Capital’s accelerator held major events in four
Latin American countries, making it the only one of its kind in the region.
A panel on peer-selected investments in Latin America during the 2019 South by Southwest
Conference showcased the unique strength of Finance Forward Latin America 2019. The panelfeatured Alberto Jones Tamayo, representative director of Moody’s de Mexico.

45%

SMALL BUSINESSES IN LATIN AMERICA THATSURVIVE LONGER THAN TWO YEARS

45++55J
45

Moody’s 2019 Corporate Social Responsibility Report

182

APPLICATIONS FORFINANCE FORWARD
LATIN AMERICA 201912

STARTUPS SELECTED TO
PARTICIPATE IN FINANCE FORWARD
LATIN AMERICA 2019

A local ratings platform for local communities
In September 2019, we launched Moody’s Local, a domestic
credit ratings platform focused on serving the needs ofcapital markets in Latin America. The platform uses uniquemethodologies to provide credit ratings and research forfinancial institutions, corporate entities, local governments
and other sectors.
Moody’s Local tailors its research to the needs of these markets
and provides research materials in the local language, allowing
for greater efficiency and timeliness. In addition, Moody’s Local
is developing non-rating products that are suitable for thesemarkets, such as assessments for social performance andsmall and medium-sized enterprises.
The initial launch included a rebranding of Moody’s-owned
affiliates in Bolivia, Panama and Peru. In the future, Moody’s
Local will expand to other countries in the region.
“Moody’s Local will give us a stronger platform to address
the needs of local markets in Latin America,” says Martín
Fernández Romero, managing director and regional head of
Latin America for Moody’s Investors Service. “This strategy
allows us to grow our footprint while maintaining ourcore values: transparency, integrity and consistency
in our rating process.”

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ACCELERATING FINANCIAL HEALTH FOR LATIN AMERICAN BUSINESSES

Making a difference where we work
Moody’s is dedicated to the well-being of the communities where we do business. In 2019, our work withand other local partners supported communities across Latin America.

VILLAGE CAPITALCONCIENCIA
Moody’s employees volunteered with Conciencia’s“Emprendiendo Tu Futuro” (“Building Your Future”) program
to help entrepreneurs in Argentina train for jobs and develop
professional skills. Moody’s employees engaged with the program
as mentors and facilitators for a series of workshops coveringbudgets, income and expenses, and loans and interest rates.

FUTURE FOOD INSTITUTEIn December, we added global nonprofit Future Food Instituteto our partner portfolio. The institute’s Fazenda São Paulo
Agroforestry Project will improve and enrich degraded land,develop a 478,000-plant eucalyptus forest, restore 287
hectares of native savannah, foster the area’s biodiversity
and fauna, and create jobs for forest workers.

VOCAÇÃO
Our funding supported one of Vocação’s intensive job educationand mentoring programs for students preparing to enter theformal labor market. In 2019, Moody’s employees volunteered
with the program and provided mentorship to students
interested in entering careers in the fields of finance,
economics, technology and math.

INSTITUTO PERENE
With a grant from the Moody’s Foundation, Instituto Perene —a nonprofit dedicated to promoting development while
protecting natural resources in rural Brazil — installed 100
improved cookstove models in the state of Bahia. The newstoves were completed in July and are estimated to reducecarbon dioxide emissions by 1,700 metric tons over 10 years.
In 2020, we will provide an additional 136 stoves througha renewed grant, expected to generate a total 2,217 metrictons of offset.

A powerful experience for entrepreneurs
Over three months, the entrepreneurs in Village
Capital’s program attended a series of multiday
workshops in Santiago, Chile; São Paulo; and Mexico
City. Participants attended sessions with mentors fromdifferent organizations, including Moody’s employees,
at the São Paulo and Mexico City workshops.
“As the regional partner for Finance Forward in Latin
America, Moody’s brought such a unique and powerfulperspective to the program,” says Dustin Shay, seniordirector of partnerships at Village Capital. “Their levelof credibility within the financial services industry
helped us to engage the startups at a deeper level
and address some of the key challenges for small
businesses across the region.”

Moody’s 2019 Corporate Social Responsibility Report

At the end of the program, the entrepreneurs selected
the participating startups they believed were “mostinvestment ready.” The peer-selected startups received
funding to help strengthen and scale their business
operations. They also participated in a pitch workshop
in Buenos Aires, Argentina, and met with local investors
and venture capital funds.
Looking toward the future of Finance Forward
Latin America, Shay is most excited about theopportunity to continue fostering these kinds ofconnections. “This program is a bridge to connect
entrepreneurs with customers, investors and partners
across Latin America, scaling contextualized solutions
to systemic issues in financial health,” he says.
“We’re excited to really build on that and continue
to deepen those connections next year.”“This program is a bridge to connect
entrepreneurs with customers, investors
and partners across Latin America, scaling
contextualized solutions to systemic
issues in financial health.”
DUSTIN SHAYSENIOR DIRECTOR OF PARTNERSHIPS, VILLAGE CAPITAL

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Taking pro bono global
Sharing our passion and purpose with the world is the bedrock of Moody’s CSR strategy.
And our employees play an essential role in making that possible.
In 2018, we created Moody’s Future Solutions™, a pro bono program that gives employees theopportunity to support nonprofit organizations through high-impact skills-based volunteering.
In the fall 2018 pilot, hosted in New York City, 16 New York–based Moody’s employees brought
their expertise to two local nonprofits.
To build on this momentum in 2019, we extended our pro bono strategy to include a global
immersive program, in which employees travel to volunteer with organizations around the globe.

“We’re proud of our volunteers for positively impacting
local communities and enhancing their leadership skills,
cultural awareness and professional networks.”
STEVE TULENKOPRESIDENT, MOODY’S ANALYTICS

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TAKING PRO BONO GLOBAL

Valuable skills and vital partnerships in Beijing
On August 17, 2019, 11 employees from Moody’s offices worldwide gathered in Beijing for our first global
pro bono program, developed in partnership with PYXERA Global. Over three weeks, Moody’s volunteers
provided professional services and knowledge development to local nonprofit partners, while growing theirskills and expertise on the region.
Moody’s and PYXERA Global selected three partner organizations, each aligned with Moody’s focus on
the environment and sustainability, to participate in the program: the Society of Entrepreneurs andEcology, the Global Environmental Institute and the Institute for Sustainable Development Goals of
Tsinghua University. The volunteers were split into teams and paired with one of the organizations.
“Moody’s global immersive program in China enabled employees from all over the world to use their
passion and expertise to help promote entrepreneurship, protect environmental and ecological systems,
and advance sustainable development in the region,” says Moody’s Analytics President Steve Tulenko.
“We’re proud of our volunteers for positively impacting local communities and enhancing their leadershipskills, cultural awareness and professional networks.”
One Moody’s team helped the Society of Entrepreneurs and Ecology create a strategic volunteer
management plan. Another team provided the Global Environmental Institute with backgroundinformation on financial metrics to analyze its programs. The final Moody’s team provided quantitative
research to the Institute for Sustainable Development Goals of Tsinghua University to support thedevelopment of tools and frameworks for evaluating Chinese corporations’ contributions toward
the United Nations Sustainable Development Goals.
With the services that Moody’s teams provided, the Society of Entrepreneurs and Ecology can enhance thereach and impact of its volunteerism throughout China, the Global Environmental Institute can speak to
its stakeholders with greater confidence and the Institute for Sustainable Development Goals of Tsinghua
University has a strong foundation for its work toward the 2030 Agenda for Sustainable Development in China.
“We hope to see more projects like this, which help build a better future for everyone,” says Wu Tong,
secretary-general assistant and manager with the Society of Entrepreneurs and Ecology.

“We hope to see more projects like this, which
help build a better future for everyone.”WU TONG
SECRETARY-GENERAL ASSISTANT AND MANAGER,
SOCIETY OF ENTREPRENEURS AND ECOLOGY

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TAKING PRO BONO GLOBAL

A hopeful outlook for students in London
From the launch of our global pro bono program in
China to our first pro bono project in Europe, Moody’s
Future Solutions is evolving the way we think of
employee engagement.
In London, Gladesmore Community School is
an oasis amid inequality. In an area with high levelsof crime and poverty, nearly 1,300 children turnto Gladesmore for encouragement and development.
Gladesmore’s well-planned curriculum, mentorshipprograms and extracurricular classes and activities
have made it one of the top 1% of schools nationally.
Moody’s is committed to helping young people reach
their potential, and Gladesmore exemplifies how theright support can help students succeed. As part ofan ongoing relationship with the school, Moody’s
employees host students in our London office andvisit them at Gladesmore throughout the school year.
During these sessions, employees meet with students
to provide career guidance and to help them develop
their interview skills and build confidence.
Student and school council member Ruby Buttolph
was ecstatic when she found out she had received
top scores on all her exams and believes Moody’s
played a big role in her success. “I am so grateful forthe support that I have received from my teachersand my mentor from Moody’s,” she says. “They gaveme the encouragement I needed to achieve thesuccess I dreamed of.”“I am so grateful for the support that I have received from my teachers and mymentor from Moody’s. They gave me the encouragement I needed to achieve
the success I dreamed of.”RUBY BUTTOLPH
YEAR 11 STUDENT, GLADESMORE COMMUNITY SCHOOL

An ongoing relationship
Moody’s is helping Gladesmore respond to evolving educational challenges
with guidance and mentorship.
STUDENTS

MOODY’S HOSTSSTUDENTS INLONDON OFFICE.

MOODY’S WORKS
WITH THE SCHOOL TO:» Identify sourcesof private andpublic funding» Put together
pitch materials

THROUGHOUT
THE YEAR, MOODY’SEMPLOYEES MEET
WITH STUDENTS TO:£16K» Provide career guidance

GLADESMORE WINSA BID FOR TWOYEARS OF FUNDINGTOTALING £16,000.

» Help them developinterview skills» Build their confidence
FUNDING SECURES CONTINUATION
OF SATURDAY CLASSES AND YEAR 9
MENTORSHIP PROGRAM.

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TAKING PRO BONO GLOBALIn 2019, we extended our relationship with Gladesmore to help it address a new challenge. With recent
government cuts to education, the school needed to diversify its funding to ensure the continued successof its students. A team of Moody’s volunteers worked with the school to identify sources of private andpublic funding and put together pitch materials for meetings with potential funders.
Since completing this work, Gladesmore has won a bid for two years of funding, totaling £16,000, to
continue to offer Saturday classes for students who require additional support. In addition, the school
has raised enough money to deliver a new mentorship program to a group of Year 9 students.

A look ahead for Moody’s Future Solutions
Pro bono initiatives such as the global immersive program in Beijing and the local work with Gladesmore
have been popular with employees and partner organizations alike. Moving into 2020, we plan to initiate
more local pro bono programs across all our regions, and we have already started two new projects inAustralia and the US. As Moody’s Future Solutions grows and inspires additional employee engagement
efforts around the world, it has the potential to create a wave of positive impact.
“Moody’s Future Solutions underscores our commitment to CSR and the importance of sharing our
expertise globally with those who will benefit greatly from it,” says Mona Breed, chief information officer
at Moody’s Corporation.
By providing more opportunities for employees to showcase their talents and contribute to solving criticalsocial challenges, Moody’s strives to continue to share our passion and purpose with others.

“Moody’s Future Solutions underscores our commitment to CSR and the importanceof sharing our expertise globally with those who will benefit greatly from it.”
MONA BREEDCHIEF INFORMATION OFFICER, MOODY’S CORPORATION

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Reporting frameworks
Our stories highlight some of our key CSR efforts — but these narratives are just one part of a much larger picture.
To support our value of acting with principled integrity and our belief in measurable impact, Moody’s reports against
three distinct frameworks. Each of these helps us engage in meaningful dialogue with our stakeholders, and each provides
us with a different lens on our work as we continue to strengthen and evolve it.

A-2
Global Reporting Initiative (GRI)
Standards: Core option

A-42
Sustainability AccountingStandards Board (SASB)

A-46
Task Force on Climate-related
Financial Disclosures (TCFD)

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Organizational profile
102-1

Name of the organization
Moody’s Corporation (Moody’s)

102-2

Activities, brands, products and services
Moody’s (NYSE: MCO) is a global integrated risk assessment firm that empowers organizations to make better decisions. Our data, analytical solutions andinsights help decision makers identify opportunities and manage the risks of doing business with others. We believe that greater transparency, more informed
decisions and fair access to information open the door to shared progress. With over 11,000 employees in more than 40 countries, Moody’s combinesinternational presence with local expertise and over a century of experience in financial markets.

102-3

Location of headquarters
Moody’s headquarters is located at 7 World Trade Center in New York, New York, USA.

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Location of operations
Moody’s maintains significant operations in the following countries:» Argentina» Denmark» Nepal» South Korea» Australia» France» Netherlands» Spain» Austria» Germany» Panama» Sri Lanka» Belgium» Hong Kong

» Peru» Sweden» Brazil» India» Poland» Switzerland» Canada» Israel» Portugal» Thailand» Chile» Italy» Russia» United Arab Emirates» China» Japan» Saudi Arabia» United Kingdom» Costa Rica

» Lithuania» Singapore» United States of America» Cyprus» Mexico» Slovak Republic» Czech Republic» Morocco» South Africa

To see a detailed list of our office locations, visit: bit.ly/moodyscontactus
102-5

Ownership and legal form
Moody’s is a public corporation.
All 10 members of the Board in 2019, except President and CEO Raymond W. McDaniel, Jr., were independent directors as determined using the independence
criteria included in the New York Stock Exchange listing standards.

102-6

Markets served
Moody’s Investors Service (MIS) rates and analyzes debt covering more than 130 countries, approximately 4,900 nonfinancial corporate issuers, 4,100 financial
institution issuers, 17,200 public finance issuers (including sovereign, sub-sovereign and supranational issuers), 9,500 structured finance transactions and
1,000 infrastructure and project finance issuers. As of year-end 2019, MIS rated more than $70 trillion of total outstanding debt.
Moody’s Analytics (MA) provides financial intelligence and analytical tools to assist businesses in making decisions. MA’s portfolio of solutions consists ofspecialized research, data, software and professional services, which are assembled to support the financial analysis and risk management activities
of institutional customers worldwide. MA customers represent more than 11,000 institutions worldwide operating in over 155 countries. During 2019,
Moody’s research website was accessed by over 306,000 individuals, including 41,000 customers.

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Scale of the organization
Moody’s, a provider of credit ratings, research, tools and analysis, has over 11,000 employees worldwide and maintains significant operations in more than
40 countries. The annual revenue of Moody’s in 2019 was $4.8 billion ($2.3 billion adjusted operating income). See more information in Moody’s 2019
Annual Report: bit.ly/moodys2019annualreport

102-8

Information on employees and other workers
Moody’s supplements our permanent workforce through the use of temporary employees, contractors and consultants. Moody’s employs over 11,000
people worldwide.
Our global gender percentage representation was 41.18% female, 58.06% male, and 0.76% other/not provided.1
Moody’s does not share additional employment information at this time.

102-9

Supply chain
Moody’s supply chain is indirect and consists mostly of reputable financial services firms, sophisticated independent consulting firms and other service providers
in the areas of finance and technology (including the procurement of software, data and other technology-related goods and services).

102-10Significant changes to the organization and its supply chain
Significant changes in leadership included the election of new Board member Thérèse Esperdy, the appointment of Rob Fauber (previously president of MIS) to the
new role of chief operating officer, and the addition to Moody’s of Lisa Rabbe, new chief government and public affairs officer, and DK Bartley, managing director
and head of Diversity & Inclusion. Michael West succeeded Fauber as president of MIS, and Stephen Tulenko succeeded Mark Almeida as president of MA.
As part of Moody’s continued focus on quality and risk management, there were several changes to the Enterprise Risk Management function to combine
Moody’s risk management and control monitoring activities into a single, consolidated Risk Management and Controls function. The role of Scott
Kenney, now SVP-Risk Management and chief audit executive, expanded to include management of Risk Management and Controls. The company also
embedded risk officers, responsible for identifying risk and reporting on risk management activities to the chief audit executive, into MA and MIS and in
Shared Services. Moody’s risk officers are Jeff Hare, SVP-Moody’s Shared Services risk officer; Margaret Rienecker, MD-Global Ratings and Research Support
and MIS risk officer; and Renee Reisel Tack, executive director-MA Administration and MA risk officer.
In 2019, Moody’s acquired RiskFirst, a provider of risk analytics technology, in addition to majority stakes in Vigeo Eiris, an international provider ofenvironmental, social and governance (ESG) research, data and analytics, and Four Twenty Seven, Inc., a leading provider of data assessing physical climatechange risks. Moody’s also acquired a minority stake in leading provider of ESG data and analytics SynTao Green Finance.

1. The following groups are excluded from the analysis: Moody’s Analytics Knowledge Services, non-employees (such as non-payroll consultants) and temporary employment workers (such as interns).
Head count as of December 31, 2019.

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Moody’s acquired ABS Suite™, a software platform used by issuers and trustees for the administration of asset-backed and mortgage-backed securities programs.
The product and personnel joined MA’s Structured Solutions business; the software complements the MA Ki™ platform, the next-generation version of
Moody’s ABS System.
Team8, a leading cybersecurity think tank and company creation platform, and Moody’s formed a joint venture to establish a global standard for evaluating andassessing cyber risk for enterprises. This venture builds on Moody’s 2018 strategic investment in Team8, which provided access to cybersecurity researchand innovation as well as deeper connections to cyber leaders across countries and industries.
In September 2019, Moody’s announced the launch in Latin America of Moody’s Local, a new platform providing domestic credit ratings and research forfinancial institutions, corporate entities, local governments and other sectors in Bolivia, Panama and Peru, subject to regulatory approvals. Equilibrium, thewholly-owned subsidiary of Moody’s that previously provided domestic ratings and research services in those jurisdictions, was rebranded as Moody’s Local.
In November 2019, Moody’s completed the sale of our Moody’s Analytics Knowledge Services business to the London-based private equity firm
Equistone Partners Europe Limited.
There were no significant changes to Moody’s supply chain in 2019.
102-11

Precautionary Principle or approach
Moody’s is a founding member of the United Nations Global Compact CFO Taskforce for the Sustainable Development Goals (SDGs), which will advance SDGs
through corporate strategy and investments. Moody’s has committed to achieve net-zero emissions by 2050 by allocating funds to adaptation, embedding
greenhouse gas (GHG) reduction into decision-making and reporting on performance.
Moody’s assesses climate-related risks and opportunities through a multidisciplinary risk management process. Risk management processes are intended toreflect risks the company faces as an organization, including climate-related risks. At this time climate-related risks have not been determined to be material
to our operations. Moody’s acknowledges future risks and opportunities may intensify and will continue to monitor and respond as needed.
Moody’s provides opportunities for employees to become directly involved in advancing sustainability, such as through our Environmental Task Force, which
encourages people from across the company to crowdsource ideas for further reducing our footprint and to communicate our progress on environmental
sustainability to colleagues.

102-12External initiatives
Moody’s and its affiliates engage with a multitude of ESG and CSR parties that develop standards or frameworks and/or evaluate and assess performance.
These are parties such as, but not limited to:» CDP (formerly Carbon
Disclosure Project)» Global Reporting Initiative(GRI)» Principles for Responsible
Investment (PRI)» Climate Disclosure Standards
Board (CDBS)» ICMA Green Bond Principles(GBP)» Sustainability AccountingStandards Board (SASB)» Climate Bonds Initiative (CBI)» International Organizationof Standardization (ISO)Moody’s 2019 Corporate Social Responsibility Report» Task Force on Climaterelated Financial Disclosures(TCFD)» United Nations Global
Compact (UNGC)

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Membership of associations
Moody’s and its subsidiaries are members of a number of associations (such as industry associations) and national or international organizations such as,
but not limited to:» Accounting for Sustainability(A4S)» CFA Institute» AFNOR – ISO Management
de l’environnement» Comité 21» Alliance of Regional
Collaboratives for Climate
Adaptation (ARCCA)» American Society of
Adaptation Professionals(ASAP)» Asia Investor Group on
Climate Change (AIGCC)» Asian Venture Philanthropy
Network (AVPN)» Aspen Network ofDevelopment Entrepreneurs(ANDE)» Climate Bonds Initiative (CBI)» Council of Institutional
Investors (CII)» Council on Foreign Relations(CFR)» National Center for APEC(NCAPEC)» Network for Greening the
Financial System (NGFS)» New York & New
Jersey Minority Supplier
Development Council- EUROSIF- FRENCHSIF- ITALIANSIF» Pensions and Lifetime
Savings Association (PLSA)- RIA» European Banking
Federation (EBF)» Society for Corporate
Governance- SWESIF» Finance for Tomorrow» The Conference Board» Global Investors for
Sustainable Development(GISD) Alliance» The Institute of International
Finance (IIF)» Green Finance Institute- SPAINSIF- UKSIF- USSIF- VBDO» The Shift» Bay Planning Coalition (BPC)» United Nations Environment
Programme FinanceInitiative (UNEP FI)» Business for Social
Responsibility (BSR)» Institutional Investors Groupon Climate Change (IIGCC)» Urban Land Institute (ULI)» Business Roundtable (BRT)» Investor Group on Climate
Change (IGCC)» Chief Executives for
Corporate Purpose (CECP)- DANSIF» CSR Europe» Hong Kong Green Finance
Association (HKGFA)» Ceres Company andInvestor networks (Ceres)» Sustainable Investment
Forums (SIFs)» Women Presidents’
Educational Organization(WPEO)» Italian Private Equity,
Venture Capital and Private
Debt Association (AIFI)In addition, in July 2019, Richard Cantor, chief credit officer of Moody’s, was appointed Chair of the US National Committee of the Pacific Economic
Cooperation Council.

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Strategy102-14

Statement from senior decision makerSee page 3 for a statement from President and CEO Raymond W. McDaniel, Jr.

102-15Key impacts, risks and opportunities
Moody’s core expertise and key opportunities lie in analytics and research, technology and employees’ skills. Through an in-depth discovery process conducted in2017, which included survey input, meetings and interviews, Moody’s learned that our stakeholders consider small business growth, environmental sustainability
and education to be high-priority economic, environmental and social issues to which we could make an effective and meaningful contribution.
For more information on Moody’s approach to these issues, please reference the stories of impact in this report, the “Local communities” section of the
GRI Index beginning on page A-34, the TCFD Report beginning on page A-46 and our 2019 Annual Report: bit.ly/moodys2019annualreport

Ethics and integrity
102-16

Values, principles, standards and norms of behavior
Moody’s values guide our progress in a complex and evolving environment.1 We believe that more informed decisions are better decisions andthat financial knowledge empowers people. We turn our beliefs into action by delivering the necessary inputs for informed decision-making that
promote growth, sustainability and transparency.
Principled
We are united by a determination to act with integrity and make a positive impact on the global economy and in our local communities.
Inclusive
We believe that diverse viewpoints lead to better decisions. Everyone’s opinion matters and everyone’s contributions are valued.
Collaborative
We work across boundaries to bring the right ideas, people and resources together to deliver the best outcomes and adapt to a changing marketplace.
Forward-thinking
Staying relevant in a changing world means looking to tomorrow with curiosity, optimism and energy. Our passion, collective imagination and intellectopens the door to a better future for our customers, our communities and the environment.
Rigorous
Our intellectual excellence sets us apart. We approach our work with the greatest care and hold ourselves to the highest standard, every day,because we know our work has impact.

1. The values detailed above are a result of a 2019 effort to refresh Moody’s identity as expressed at moodys.com/about. Our values prior to this effort focused on integrity, intellectual leadership, inclusion, insight and independence.

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Every Moody’s employee, as well as each member of the Board of Directors, is required to abide by Moody’s Code of Business Conduct, which outlines theprinciples and policies they are expected to follow in their daily business activities. The Legal department is responsible for updates and distribution.
The Code, which is revised and republished at least every two years, is available in 11 languages: Arabic, Chinese, Dutch, English, French, Japanese, Korean,
Portuguese, Russian, Slovak and Spanish. Upon hiring and periodically thereafter, including when a new version is published, all employees must certifythat they have read and will adhere to the Code. View our Code of Business Conduct and other corporate governance documents: bit.ly/moodyscgsp
In addition to the Code of Business Conduct, Moody’s Investors Service has a Code of Professional Conduct that governs the rating process. View the
Moody’s Investors Service Code of Professional Conduct: bit.ly/miscopc
Moody’s has implemented a Vendor Code of Conduct describing our expectations of incumbent and prospective vendors in the areas of business integrity,labor practices, employee health and safety, diversity and inclusion, and environmental stewardship. View Moody’s Vendor Code of Conduct: bit.ly/moodysvcc
102-17

Mechanisms for advice and concerns about ethics
At Moody’s, we are committed to fostering a culture and work environment in which all employees feel comfortable asking questions, seeking advice and raising
issues that are important to them — including reporting allegations of non-compliance with laws, regulations and policies. We elevate voices and concerns
through our Open Door Policy, which supports employees in holding frank discussions with their immediate supervisors or other senior managers, as well aswith members of the Compliance, HR and Legal departments. As part of this policy, Moody’s prohibits, and does not tolerate, any form of retaliation against
employees who raise concerns in good faith.
All employees have a number of channels to report concerns: managers; HR, Compliance and Legal departments; and the Integrity Hotline. The Integrity Hotline
allows employees to report any suspected wrongdoing anonymously, is staffed by a third party and is available at all times and in multiple languages. Reports
made via the Integrity Hotline are forwarded to Moody’s Legal and Compliance departments for follow-up, and all reports of suspected violations are promptly
investigated and remediated.
Finally, Moody’s provides extensive compliance and ethics training both to new employees and to existing employees to help reinforce the resources available
to employees to raise concerns and ask questions and as an integral part of their overall professional development. Depending on the line of business and work
location, within their first 90 days of employment, new hires to Moody’s must complete between 5.0 and 8.5 hours of online training that is aligned with ourcodes of conduct and policies. This training is designed to help analysts, directors and other Moody’s professionals clearly understand and execute their ethicalresponsibilities and regulatory obligations.
In 2019, we deployed over 30 mandatory online and instructor-led courses to educate and refresh the knowledge of existing employees on compliance policies
and codes of conduct.

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Governance102-18Governance structure
Moody’s Board of Directors oversees the management and overall strategy of Moody’s. Board members serve one-year terms and are elected annually by ourstockholders. Moody’s has four standing Board committees:» Audit Committee: Primarily oversees the integrity of the company’s financial statements and the financial reporting and audit process as well as financial,risk and other disclosures made in the company’s annual and quarterly reports related to sustainability» Governance & Nominating Committee: Responsible for shaping the company’s corporate governance, engaging in director succession planning andidentifying and recommending nominees for the Board; oversees sustainability matters as they pertain to business and long-term value creation; and makes
recommendations to the Board regarding these issues» Compensation & Human Resources Committee: Responsible for oversight and recommendations regarding executive and director compensation,
CEO and senior management succession planning, and oversight of employee benefit plans» Executive Committee: Exercises the authority and powers of the Board of Directors between meetings of the Board
Learn more about Moody’s corporate governance structure and practices: bit.ly/moodyscgsp
Moody’s CSR Council, chaired by President and CEO Raymond W. McDaniel, Jr., convenes the following senior management team members to shape our overall
CSR strategy:» Rob Fauber,
Chief Operating Officer» John Goggins,
General Counsel» Melanie Hughes, Chief
Human Resources Officer» Arlene Isaacs-Lowe, MD and
Global Head, CSR; President,
Moody’s Foundation» Scott Kenney, SVP-Risk
Management andChief Audit Executive» Lisa Rabbe, Chief
Government and Public
Affairs Officer» Mark Kaye, Chief
Financial Officer» David Platt, Chief
Strategy Officer» Stephen Tulenko, President,
Moody’s Analytics» Michael West, President,
Moody’s Investors Service

The CSR Working Group, chaired by Arlene Isaacs-Lowe, managing director and global head of CSR, consists of the following executives charged with honing
and implementing the strategy:» Michael Adler, MD,
Corporate Communications» Keith Berry, ED,
MA Accelerator» Dorian Hare, SVP,
Investor Relations» Di Holman, MD,
Human Resources» DK Bartley, MD,
Diversity & Inclusion» Jeremy Davis, VP, CSR» Jeffrey Hare, SVP, Risk
Management and Controls» Faina Leyvi, AVP,
Corporate Planning» Jack Holleran, MD,
Compliance» Elizabeth McCarroll,
Corporate Secretary and
Associate General Counsel» Andrew Berenblum, MD,
Business Services

Moody’s 2019 Corporate Social Responsibility Report» Rahul Ghosh, SVP,
Credit Strategy

A-9

Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks
GRI Index

102-19» Ryan Mensing, SVP,
Government & Public Affairs» Doug Ryker, MD,
FP&A & Real Estate» Ryan Oliveri, SVP,
Human Resources» Gwen Safa, MD,
Strategy & Marketing

SASB Index

TCFD Report» Atsi Sheth, MD,
Credit Strategy» Jocelyn Steelman, MD,
MA Financial Planning& Analysis

Delegating authority
Moody’s CSR Council and CSR Working Group each meet on a regular basis to evaluate the company’s CSR progress, generate recommendations to enhance
Moody’s approach to CSR and identify opportunities in Moody’s business that align with our CSR mission. Our CSR team oversees programs and investments toensure we’re achieving Moody’s goals, and 244 people across the company serve as CSR Impact Leaders, who encourage their colleagues to get involved in local
efforts and contribute new ideas for improving or expanding our programs.

102-20Executive-level responsibility for economic, environmental and social topics
President and CEO Raymond W. McDaniel, Jr., chairs Moody’s CSR Council. Global Head of CSR Arlene Isaacs-Lowe leads Moody’s CSR Working Group.

102-22Composition of the highest governance body and its committees
Moody’s Board of Directors also serves as the highest CSR governance body. All directors with the exception of President and CEO Raymond W. McDaniel, Jr.,are independent as determined using the independence criteria included in the New York Stock Exchange listing standards. All directors serve one-year terms
and are elected annually by stockholders. Three members of the 10-member 2019 Board were female.
In 2019, our Board of Directors was composed of the following members:» Henry A. McKinnell, Jr.,
PhD, Chairman» Basil L. Anderson, Chairmanof the Governance &Nominating Committee» Jorge A. Bermudez» Thérèse Esperdy» Vincent A. Forlenza» Kathryn M. Hill, Chairman of
the Compensation & Human
Resources Committee» Raymond W. McDaniel, Jr.

» Leslie F. Seidman, Chairmanof the Audit Committee» Bruce Van Saun
» Gerrit Zalm
(retired April 2020)

See Moody’s 2020 proxy statement for more information on directors’ current and past employment and other significant commitments:
bit.ly/moodys2019proxystatement102-23Chair of the highest governance body
Henry A. McKinnell, Jr., PhD, is Moody’s independent Chairman of the Board.

102-27

Collective knowledge of highest governance body
The Board and its committees receive regular updates on various economic, environmental and social issues such as credit risk, the macroeconomic environment,sustainability matters, diversity and inclusion, and pay equity.

Moody’s 2019 Corporate Social Responsibility Report

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Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks
GRI Index

102-29SASB Index

TCFD Report

Identifying and managing economic, environmental and social impacts
Moody’s CSR Council, chaired by President and CEO Raymond W. McDaniel, Jr., and Moody’s CSR Working Group use the collected feedback from all our key
stakeholder groups to help set and execute strategic economic, environmental and social priorities. Both of these groups meet on a regular basis to evaluate
the company’s CSR strategy and progress.
Management plays an essential role in the risk management process and serves as the first line of defense. The management team has risk management built
into its objectives and is responsible for identifying and assessing any risks and opportunities as well as mitigating actions. The Enterprise Risk Management
program is responsible for designing and maintaining a process to assist the management team with the identification, management and strategic considerationof risks throughout the enterprise.

102-31

Review of economic, environmental and social topics
Moody’s CSR Council meets at least twice a year, and the CSR Working Group meets monthly, to evaluate the company’s CSR progress and generate
recommendations to enhance Moody’s approach to CSR. The Enterprise Risk Management program’s responsibilities include regularly communicating
information related to risks through reporting to management and the Board.
The Governance & Nominating Committee of the Board of Directors oversees sustainability matters, including significant issues of corporate socialand environmental responsibility, as they pertain to the company’s business and long-term value creation for the company and its stockholders, andmakes recommendations to the Board regarding these issues.

102-32Highest governance body’s role in sustainability reporting
Moody’s CSR Council formally reviews the organization’s CSR Report and ensures that all material topics are covered.

Stakeholder engagement102-40

List of stakeholder groups
Each year, we proactively seek input from five groups:» Customers» Employees» Suppliers» Communities» Stockholders

Moody’s 2019 Corporate Social Responsibility Report

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Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks
GRI Index

102-41

SASB Index

TCFD ReportCollective bargaining agreements
Approximately 10% of employees are covered by a collective bargaining agreement.

102-42

Identifying and selecting stakeholders
The Investor Relations team is responsible for managing and interacting with stockholders, asset managers and sell-side analysts to attract investment
in Moody’s. Our customers and employees are also clear stakeholders in Moody’s. The CSR Group identifies community groups, including nongovernmentalorganizations (NGOs) and global and national sustainability organizations, that Moody’s can engage with on the social and environmental issues we arein a unique position to help address.

102-43

Approach to stakeholder engagement
While we always welcome and encourage feedback from our stakeholder groups, we also conduct the following formal engagement activities yearly:» Employees: Each year, we encourage our employees to provide anonymous and candid feedback in a number of areas through our Business Effectiveness Survey.
This year, we introduced a new employee survey that measures engagement, which is now called our Business Engagement Survey. This survey includes items
that measure key drivers of engagement (for example, Belonging, Manager Trust, Accountability) and two items that measure engagement as an outcome(“How happy are you at Moody’s?” and “Would you recommend Moody’s?”). We included 14 items from our previous employee survey to identify trends
in areas such as Inclusion and Work-Life Balance, allowing us to continuously improve and adjust to meet the changing needs of our workforce. We improved in
the area of Work-Life Balance when compared with 2018. In 2020, we plan to conduct shorter, more frequent surveys to measure near real-time engagement,
track progress and identify actions to address results. Employees recognize the importance of this tool, as shown by the fact that more than 87% of ouremployees completed the survey in 2019.
» Customers: Using blind surveys, we ask Moody’s customers to rate our performance versus the competition’s as well as our product quality and customer
service. We also engage asset managers and sell-side analysts, many of whom are customers, because we believe that these groups are ideally positioned totell us how the broader investment community views Moody’s. They provide feedback on what makes Moody’s a good investment. We also conduct an annual
perception study to gauge what they think about the company’s management and strategy.
» Stockholders: Moody’s Investor Relations team has contracted with an independent third-party vendor for the past several years to conduct a perception
study of investors about Moody’s that provides strategic guidance for investor communications and identifies key investment drivers. This feedback iscommunicated to management and the Board of Directors of Moody’s and helps inform and focus various investor relations initiatives. This process, in turn,helps investors better understand Moody’s CSR strategy and long-term growth opportunities.
» Communities: Our partnerships with NGOs bring our vision into focus by implementing programs designed to achieve outcomes aligned to our strategy.
They also provide an opportunity for our employees to engage in our efforts to open the door to a brighter future for people around the world. Collaboratingwith our NGO partners on programs ensures we are using their expertise in the field to achieve desired efficacy rates. In addition, we recognize that ESG
considerations are used to assess the sustainability of entities, including Moody’s, and their environmental and social impacts on communities. We haveidentified key organizations in this field to engage with and assessments to complete to communicate our results to stakeholders as well as identify
opportunities to further improve our own performance.

Moody’s 2019 Corporate Social Responsibility Report

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Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks
GRI Index

SASB Index

TCFD Report

Investor Relations engages with stockholders, asset managers and side-sell analysts throughout the year by attending industry conferences; conducting
non-deal roadshows in cities across Asia, Europe and the US; and hosting meetings and calls. Investor Relations is in continuous communication withstakeholders other than during designated “quiet periods” prior to the company’s announcement of earnings.
102-44

Key topics and concerns raised» Employees: Moody’s engagement score (the average of two items: “How happy are you at Moody’s?” and” Would you recommend Moody’s?”) is 71 out of 100.
Key themes include:- Employees are generally engaged … but want to better understand the future direction.
- Employees are generally happy with communication at Moody’s … but want to be better informed of key decisions impacting their work.
- Employees appreciate their managers and trust them … but want more active support removing barriers slowing down their work.
Actions are being taken to reinforce areas of strength and opportunity, such as:- Sharing Moody’s vision, mission and values with all employees to reinforce the company’s direction- Through automation, technology changes and improving or aligning Moody’s processes, allowing employees to work smarter and faster» Stockholders: At the top of the list of priorities for asset managers and sell-side analysts representing MCO stockholders in 2019 were sustainable
revenue growth, capable senior management and sound capital allocation strategy. Moody’s scores on these criteria once again surpassed the averagefor S&P 500 companies.
» Communities: Moody’s continues to implement Mission Measurement’s Impact Genome Project® to assess our social impact with our NGO partners.
Moody’s was again recognized for our ESG performance by JUST Capital, scoring in the top 50% of industry rankings. This resulted in Moody’s inclusion in
the Goldman Sachs JUST U.S. Large Cap Equity ETF, which tracks the JUST U.S. Large Cap Diversified Index. Additionally, the company was included in the
FTSE4Good and Bloomberg Gender-Equality indices for the first time in 2019. The company also became a participant level signatory to the United Nations
Global Compact, founding member of the United Nations Global Compact CFO Taskforce for the SDGs and the Reporting on the SDGs Action Platform.
Moody’s also became a service provider signatory to the Principles for Responsible Investment.

Reporting practice102-45

Entities included in the consolidated financial statements
Moody’s Annual Report and this CSR Report both cover all of Moody’s and its subsidiaries.

102-46

Defining report content and topic Boundaries
In 2017, Moody’s senior leaders undertook an in-depth process to focus our CSR efforts, which included interviews with more than 40 company leaders, survey
responses from 700-plus employees in our offices worldwide and a broad-based materiality assessment to identify the CSR-related issues that are mostsignificant to Moody’s business.

Moody’s 2019 Corporate Social Responsibility Report

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Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks
GRI Index

SASB Index

TCFD Report

We evaluated each CSR issue against six criteria:» Relevance: Does the issue align with our business priorities?
» Assets: Does the issue present an opportunity to apply our core expertise, such as analytics and research, influence, technology or employees’ skills?
» Resonance: What opportunities does it create for our employees worldwide to feel connected to the corporate mission and business objectives?
» Authenticity: Does it position Moody’s to serve as a neutral voice and an influential leader?
» Differentiation: Does it offer a unique role, relative to others in our market, for Moody’s to play?
» Need: Does it signify an important and recognized societal challenge or opportunity?
Insights from this overall process guided us to develop a global CSR strategy that not only responds to the issues our company and stakeholders care aboutmost but also helps us apply our expertise and resources effectively and achieve greater impact. Across all these areas, Moody’s “Inclusive” value serves asa lens through which to evaluate our CSR efforts and investments.
We focus our global social investing efforts around three core areas:» Empowering people withfinancial knowledge» Activating an environmentally
sustainable future» Helping young people reach
their potential

The 2019 report features stories of impact from these areas of focus. More examples can be found at moodys.com/csr.
102-47

List of material topics
Our stakeholders consider small business growth, environmental sustainability and education to be among the highest-priority economic, environmental andsocial issues for Moody’s to address.

102-48

Restatements of information
We restated the following 2018 GHG emissions after further review in preparing for limited assurance of our 2019 GHG emissions:» Scope 1 to 2,480.4 metric tons of carbon dioxide equivalent (tCO2e) to reflect moving 1,704.0 tCO2e for natural gas–related emissions and 541.4 tCO2e
for refrigerants-related emissions from Scope 2 to Scope 1» Scope 2 to 15,690.2 tCO2e to reflect changes detailed in Scope 1 bullet above» Scope 3, category 6 emissions (business travel) to 18,567.5 tCO2e, which includes flights that were omitted in previous calculations» Scope 3, category 7 emissions (employee commuting) to 10,960.3 tCO2e to reflect an improvement in our calculation methodology and allow
year-over-year comparison

Moody’s 2019 Corporate Social Responsibility Report

A-14

Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks
GRI Index

102-49SASB Index

TCFD Report

Changes in reporting
Moody’s enhanced its reporting of Scope 3 GHG emissions to include further detail in category 6 (business travel) related to rail, rental car, black car and hotel
spend. Emissions reporting also includes employees from Moody’s Analytics Knowledge Services up to the date of completed sale of that business.

102-50

Reporting period
This is Moody’s 10th annual CSR Report, covering January 1 to December 31, 2019.

102-51

Date of most recent report
Moody’s most recent CSR Report was released April 29, 2019.

102-52

Reporting cycle
Moody’s releases our CSR Report annually.

102-53

Contact point for questions regarding the report
We invite you to email us at csr@moodys.com with feedback and questions about this report.

102-54Claims of reporting in accordance with the GRI Standards
This report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core option.

102-55

GRI content index
This report’s GRI content index is located on pages A-2 to A-41.

102-56External assurance
Apex Companies, LLC (Apex) conducted independent verification of Moody’s GHG emissions for calendar year 2019, including Scope 1-Direct Sources,
Scope 2-Indirect Sources (location-based and market-based) and Scope 3-Other Indirect Sources (category 6: Business Travel and category 7: Employee
Commuting) in accordance with ISO 14064-3 Greenhouse Gases-Part 3. See the Verification Opinion at the end of this report for further details.
External assurance was not sought for this report as a whole.

Moody’s 2019 Corporate Social Responsibility Report

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Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks
GRI Index

SASB Index

TCFD Report

Economic performance
103-1

Explanation of the material topic and its Boundary

103-2

The management approach and its components

103-3

Evaluation of the management approach

201-1

Direct economic value generated and distributed
See Moody’s 2019 Annual Report for key financial information. View the report: bit.ly/moodys2019annualreport

201-2

Financial implications and other risks and opportunities due to climate change
Moody’s assesses climate-related risks and opportunities through a multidisciplinary risk management process. Risk management processes are intended
to reflect risks the company faces as an organization, including climate-related risks.
As part of its risk oversight, the Audit Committee reviews key risk factors, including the risk of a business continuity disruption due to climate-related incidents.
Risk factors also include exposure to reputational and credibility concerns, such as those that could stem from climate-related considerations. The Governance &Nominating Committee oversees sustainability matters, including significant issues of corporate social and environmental responsibility, as they pertain to thecompany’s business and long-term value creation for its stockholders, and makes recommendations to the Board.
Moody’s has identified three main areas of climate-related opportunities for our business: strategic investment in products and services, memberships
and climate change commitments, and research and development.
Moody’s new product offerings and climate-related analytical initiatives are intended to address the business opportunities and risks identified above.
For more information, please reference our 2019 Annual Report: bit.ly/moodys2019annualreport

Environmental: Emissions and energy
103-1

Explanation of the material topic and its Boundary
Moody’s environmental impacts are limited and include GHG emissions (from energy used in buildings and for transport) and water use and waste (fromoffice operations). However, our stakeholders and employees consider environmental sustainability to be one of the highest-priority issues on which to provide
Moody’s thought leadership. We report in line with GRI, TCFD and United Nations Global Compact (UNGC), the relevant and globally recognized ESG reporting
frameworks that are applicable to our business. We have continued to advance our reporting framework for carbon and other environmental disclosures to betterreflect our ongoing commitment to reducing our environmental impact.
Moody’s 2019 Scope 3 GHG emissions reporting includes further detail in category 6 (business travel) related to rail, rental car, black car and hotel spend.
Emissions reporting also includes employees from Moody’s Analytics Knowledge Services up to the date of completed sale of that business.

Moody’s 2019 Corporate Social Responsibility Report

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Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks
GRI Index

103-2

SASB Index

TCFD Report

The management approach and its components
Moody’s commitments as an organization
Moody’s takes environmental sustainability issues seriously, as evidenced by our initiatives to track and reduce our company’s carbon footprint. In 2019, we
committed to and achieved carbon neutrality moving forward for our direct operations, business travel and employee commuting; committed to science-basedtargets; and undertook an enhanced evaluation of Scope 3 emissions by including all relevant categories. We also committed to performing a climate-related
scenario analysis and attaining third-party assurance of emissions, with work in these areas continuing into 2020.
Moody’s has taken concrete steps over the past year to improve our sustainability strategy and management, including proactively joining the UNGC and signing
the UNGC Business Ambition for 1.5°C Pledge. As a member and signatory, Moody’s is committed to instituting science-based targets to help limit global
temperature rise to 1.5°C by 2050, as well as achieve net-zero emissions.
Moody’s is a founding participant of the UNGC CFO Taskforce for the SDGs — providing our expertise to a network for CFOs focused on advancing the SDGs
through corporate strategy and investments. We also have joined the UNGC Reporting on the SDGs Action Platform to participate in shaping the future ofcorporate reporting on the SDGs.
We also joined Principles for Responsible Investment in 2019, pledging to enhance the transparent and systematic integration of ESG factors in credit risk analysis
and investment decisions.
In addition to our corporate advancements, Moody’s has further demonstrated our commitment to growing our platform of risk assessment capabilities andadvancing our global standards for assessing environmental and climate risk factors, as evidenced by our recent acquisitions: Four Twenty Seven, Vigeo Eiris,and SynTao Green Finance. These acquisitions advance our objective of integrating climate analytics into our offerings, contribute to the further developmentof leading ESG risk assessments, and provide an opportunity to enhance Moody’s global ESG research and data.
Moody’s operational impacts
Moody’s is committed as an organization to protecting and caring for the environments in which we live and work. This commitment is demonstrated by
the continuous development and implementation of practical and effective corporate policies and programs that support the more efficient use of natural
resources and reduce the impact of our businesses on the environment. These programs and policies include, where feasible, the reduction and elimination ofwaste through reuse, recovery and recycling; reduction of electric, water and other natural resources in our office operations; selection of utility contracts, whereavailable, that originate from a renewable source; and other operational best practices. As part of these efforts, Moody’s is committed to working to reduce our
global operations’ contribution to climate change. Our environmental programs are structured to minimize the impact on our GHG emissions to the extent
possible and allowable by local laws or mandated by property lease requirements.
PHYSICAL FOOTPRINT

Because we lease all our buildings, our efforts to reduce our environmental footprint partly depend on the operating procedures of our building managers.
Along with influencing the environmental practices of our building managers and landlords, we use environmental considerations to help guide our selection of
office locations. This includes leasing space in energy-efficient buildings that are Leadership in Energy and Environmental Design–certified (or a local equivalentoutside the US); that have convenient access to public transportation; that include bicycle storage and shower facilities to promote exercise and greener
commuting; and that use energy-efficient, recycled and sustainable materials, fixtures and control systems, including daylight harvesting sensors that maximize
a building’s natural light.

Moody’s 2019 Corporate Social Responsibility Report

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Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks
GRI Index

SASB Index

TCFD Report

ENVIRONMENTAL TASK FORCE

Established in 2017, our Environmental Task Force helps create opportunities for employees to become directly involved in advancing sustainability.
The Environmental Task Force encourages people from across the company to crowdsource ideas for further reducing our footprint and to communicate
our progress on environmental sustainability to colleagues. The site-based Environmental Task Force groups work in conjunction with departments such
as Information Technology, Corporate Facilities and others on idea generation and, if feasible, implementation. In 2020, to ensure greater efficiency andenhance effectiveness, the activities and responsibilities of the Environmental Task Force will be integrated into the CSR Impact Leader program.
ENVIRONMENTAL & SUSTAINABILITY POLICYOur Environmental & Sustainability Policy, reviewed and approved by the Board of Directors, articulates a strategic direction for our environmental initiatives
and better explains what we can do for the environment as a financial services company. It also expands our commitment to using natural resources more
efficiently and reducing the impact of our business on the environment, and it sets the tone and direction for more ambitious efforts, such as accurately
measuring our GHG emissions and promoting reuse, recovery and recycling of materials in Moody’s offices.
Our policy is available for public review and is communicated to employees to increase their awareness of environmental concerns and further encouragethem to minimize the impact they have on the environment. View Moody’s Environmental & Sustainability Policy: csr.moodys.io/reports
103-3

Evaluation of the management approach
The CSR team in consultation with our Facilities and Global Real Estate teams regularly reviews our environmental policy and operating procedures.
The Environmental Task Force provides an avenue to crowdsource ideas from our employees, and this approach has already resulted in a number of local
initiatives designed to reduce our adverse environmental impact. When opportunities are identified to reduce our emissions or energy use, they arevetted and evaluated for feasibility in consultation with senior management and the CSR Council.
As part of its membership to the UNGC, Moody’s will submit an annual progress report, including a description of practical actions the company has taken
to enhance its sustainability efforts. We also evaluate our performance by reviewing results of third-party assessments such as CDP and the SAM Corporate
Sustainability Assessment, which powers the Dow Jones Sustainability Indices.

Moody’s 2019 Corporate Social Responsibility Report

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Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks
GRI Index

302-1

SASB Index

TCFD Report

Energy consumption within the organization

11+89+J

Renewable energy use

Energy type

Total consumption

Diesel380 gallons

LPG

88,383 kilowatt-hours (kWh)Natural gas

13,754 million British
Thermal Units (MMBtu)

Electricity

28,269,677 kWh

Steam140,821 kWh

Chilled water

1,468,565 ton-hours

Electricity				11%

Natural gas				

–10%

50

3,020,801 kWh(11% of total)

Moody’s sites		
Square footage (in millions)# of Moody’s sites

40

31.4

30

28.3

20

30
35.8

20

Calculation
methodology 13.8
change

10
2017

2018

2019

2017

2018

2019

# OF MOODY’S SITES

30.6

THOUSANDS OF MMBTU

40

3.5

120

31.6

100
80

101

102

2.14

2.22

103

3.0

2.33

2.5
2.0

60
40

1.5
’17

’18

’19

SQUARE FOOTAGEMILLIONS OF KWH

Since 2018

1.0

Variations in 2019 natural gas consumption are due to improvements in calculation methodologies.
302-4

Reduction of energy consumption
A number of actions taken helped reduce energy consumption in 2019. On March 30, the Environmental Task Force asked employees around the globe toparticipate in Earth Hour by switching off lights in solidarity for our planet. Employees also participated in the Summer Lights-Out Campaign by dimmingor turning off the lights in their offices and common areas on Friday afternoons during the summer (May 31–August 28 for the Northern Hemisphere andNovember 29–February 28 for the Southern Hemisphere) to support global efforts to save energy in the workplace. Our headquarters at 7 World Trade Center,
representing greater than one-third of our square footage, also participated in Daylight Hour on June 21 and turned off all noncritical lighting for one hour.

Moody’s 2019 Corporate Social Responsibility Report

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Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks
GRI Index

305-1

Direct (Scope 1) GHG emissions

305-2

Energy indirect (Scope 2) GHG emissions

305-3

Other indirect (Scope 3) GHG emissions
Scope 11

Scope 2: market-based1

Scope 31

Metric tons of carbon dioxide
equivalent (tCO2e)

tCO2e

tCO2e

25 K

30 K

2,480

2,500

20 K

2,000
1,569

1,500

15 K

500

5K

5K

0

0

10 K

157

’18

’19

Business travel

24,173’17

Gas

Reference

CO2

IPCC Fifth Assessment Report (AR5 - 100 year)

CH4

IPCC Fifth Assessment Report (AR5 - 100 year)

N2O

IPCC Fifth Assessment Report (AR5 - 100 year)’18

18,568businesstravel

15 K

10 K

’17

29,52820 K

15,690

1,000

0

TCFD Report

25 K
16,916

10,561

305-5

SASB Index

’19

’17

15,388businesstravel

10,960employeecommuting

7,841

’18

8,785
employeecommuting’19

86+9+21JtCO2e

Air travel: 13,545.59
Hotel stays: 1,538.14
Car rentals: 231.16
US black car: 40.99
UK black car: 18.93
Rail travel: 12.98

Scope 1 and 2 emissions were calculated in accordance with the World Resources Institute/World
Business Council for Sustainable Development GHG Protocol Corporate Accounting and ReportingStandard. Scope 3 emissions were calculated in accordance with the World Resources Institute/World
Business Council for Sustainable Development Corporate Value Chain (Scope 3) Accounting andReporting Standard.

Reduction of GHG emissions
Scope 1 emissions variations are due to improvements in calculation methodologies as more data became available. The Scope 2: market-based1 emissions
reduction was driven by three main factors: the energy conservation efforts outlined in 302-4, the increase in renewable energy consumption in 2019 andimprovements in calculation methodologies. In 2020, Moody’s plans to implement an Environmental Management System and platform to further improve thedata collection process and accuracy of the emissions calculations. The reduction in Scope 3 emissions is largely tied to the Travel Smart initiative launched in 2019,
which covers a set of guiding principles to better manage business travel and expenses in order to help reinvest in Moody’s. The initiative was embraced globally,
resulting in an 18% savings in travel expenses.

1. Figures have been rounded; see Moody’s corresponding CDP report for full data. 2019 emissions reporting includes employees from Moody’s Analytics Knowledge Services up to the date of completed sale of that business.

Moody’s 2019 Corporate Social Responsibility Report

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Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks
GRI Index

SASB Index

TCFD Report

Employment
103-1

Explanation of the material topic and its Boundary
Our employees play an important role in financial markets, systems and institutions. So it is important for us to create a workplace where they feel valued
and inspired to bring their best. We work to foster a culture of independence, inclusion and intellectual leadership. We strive to build an environment thatvalues collaboration and professional growth. And we work to ensure that all our people can share their perspectives and be heard.
The new employee hire and employee turnover data is pulled from our primary HR system. The following groups are excluded from the analysis:
Moody’s Analytics Knowledge Services, non-employees (such as non-payroll consultants) and temporary employment workers (such as interns).
Head count as of December 31, 2019.

103-2

The management approach and its components
Our pride in our place of work affects the reasons for staying at Moody’s and creating a positive and inclusive work environment.
Our employee value proposition (EVP) outlines the unique benefits that Moody’s offers individuals who share their enthusiasm, capabilities and experience
with us. Our EVP personifies how we are different and what we stand for. This EVP is based on four “emotional drivers” that inspire us:» Have real-world impact.
» Team up with inspiring colleagues.
» Have a voice and be heard.
» Build your future.
Moody’s offers a broad portfolio of learning and development opportunities that address employees’ needs at all stages of their careers. Their journeys startwith onboarding and progress to include the development of role-specific technical and functional skills, professional and management skills, and leadershipskills. See pages A-26 through A-28 for more information on Moody’s employee training and education.
With the multidimensional challenges of a mixed-generation workforce, global pressures, industry disruptions and talent competition, Moody’s continues torevolutionize our Global Talent Management strategy. In 2019, we increased our focus on how we source, assess, identify and develop talent for current andfuture roles. Our laser focus on attracting and retaining top talent enables Moody’s to benefit from a diverse talent pool, while progressive in-house leadershipdevelopment helps lead to a more empowered workforce and robust leadership pipeline.
Over the course of 2019, we:» Began work to refresh Moody’s employer brand and EVP; this work will continue into 2020
» Launched a new employee engagement survey to gauge employee satisfaction

Moody’s 2019 Corporate Social Responsibility Report

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Introduction

Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks
GRI Index

SASB Index

TCFD Report» Established baseline Moody’s practices and processes for the selection, development and promotion of talent globally» Began to embed diversity and inclusion practices in talent reviews and succession discussions globally» Developed Moody’s Leadership Success Profile, which defines behaviors that will differentiate the global leaders we need for today and tomorrow» Developed and launched Leadership Essentials, targeting first-level managers, and ran two pilots with our high-potential pipeline» Developed a 360 multi-rater assessment aligned to the Leadership Success Profile» Identified an enterprise talent pool of high-potential, diverse leadersMoving forward, we plan to continue developing our strategy with the aim to:» Embed the Leadership Success Profile into performance management, interview practices, succession planning and criteria for leadership promotions» Develop and launch additional leader/manager programs, focusing on inclusive behaviors» Develop and launch senior leader program focused on change and agility» Continue to enhance our talent review practices, with a focus on identifying and accelerating the development of high-potential talent across Moody’sCompensation
Our compensation philosophy has four components; Moody’s strives for its compensation to be:» Structured fairly. We strive to structure our compensation programs in a fair and equitable manner, meaning that employees in similar roles shouldhave similar compensation opportunities. We assign every position a salary band by evaluating job responsibilities, competency, accountability, complexity
and required level of partnership.
» Aligned to local markets. Moody’s participates in salary surveys in each of our markets to ensure we can attract and retain strong talent by offering
compensation in line with the expectations of the local market. We receive aggregated compensation data for each job description and update our pay
structures and salary bands every year before the annual salary review process.
» Driven and differentiated by performance. The main vehicle for Moody’s to align employees’ compensation to company and individual performance is
our annual cash incentive or bonus programs. Our cash incentives align program payouts to targeted performance measures determined by Moody’s goals.
Bonus awards are calculated based first on the performance of an employee’s operating company, then on the employee’s individual performance.
» Understood and valued by all. The final principle of our compensation philosophy has been formally added in 2020 and will serve as a directional goal
to be achieved within the next few years.

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Reporting Frameworks
GRI Index

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TCFD Report

Benefits
At Moody’s, we see our investments in benefits as an investment in our people. Moody’s is committed to providing competitive benefits programs designed tocare for our employees and their families. Our comprehensive programs offer resources and support for physical, mental and financial well-being. We promote
preventive care and awareness and support a healthy lifestyle. We also believe that promoting financial wellness and supporting flexible work arrangements are
critical to our efforts to create a work atmosphere in which people feel valued and inspired to give their best.
Beyond delivering health, welfare, retirement benefits, and paid vacation and sick days, we extend other benefits to support our employees and their families.
We have introduced new initiatives and continue to enhance existing ones, such as parental leave, workplace flexibility and educational support.
Our benefits are extensive and inclusive, and many are also available to our employees’ partners and children. Benefits offered to employees differ by work
location; however, our benefits package can include:» Managing your health:- Medical- Vision- Health savings account- Dental- Flexible spending account- Employee assistance program» Protecting yourself and your family and planning for your future:- Retirement contribution- Life insurance- Short-term and long-term
disability insurance- Business travel accident coverage

While most of our benefit plans fall into these broad categories, Moody’s also offers a range of additional programs and perquisites that vary by location, including:» Flexible work arrangements» Discounted employee stock purchase plan

» Long service awards» Paid vacation and holidays» Employee referral program» Free or discounted cultural memberships» Parental leave» Financial planning» Termination indemnities» Educational assistance» Matching gifts program forcharitable contributions» Parking and transportation allowances» Adoption assistance» Backup child and elder care
» Commuter benefit plan» Auto and property insurance
coverage discounts» Car allowances» Meal benefits» Child care support

Equal employment opportunity
We are an equal opportunity employer. For our full policy, see Moody’s Code of Business Conduct: bit.ly/moodyscgsp

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Year in Review

ESG Approach

Stories of Impact

Reporting Frameworks
GRI Index

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SASB Index

TCFD Report

Evaluation of the management approach
Employee engagement
Each year, we encourage our employees to provide anonymous and candid feedback in a number of areas through our Business Effectiveness Survey. This year,
we introduced a new employee survey that measures engagement, which is now called our Business Engagement Survey. This survey includes items that measure
key drivers of engagement (for example, Belonging, Manager Trust, Accountability) and two items that measure engagement as an outcome (“How happy
are you at Moody’s?” and “Would you recommend Moody’s?”). We included 14 items from our previous employee survey to identify trends in areas such as
Inclusion and Work-Life Balance, allowing us to continuously improve and adjust to meet the changing needs of our workforce. We improved in the area of
Work-Life Balance when compared with 2018.
In 2020, we plan to conduct shorter, more frequent surveys to measure near real-time engagement, track progress and identify actions to address results.
Employees recognize the importance of this tool, as shown by the fact that more than 87% of our employees completed the survey in 2019. Items are comparedwith Glint’s global benchmark, which represents companies that have a home base in various countries and may or may not operate outside of their homecountry. Combining panel and employee data, our benchmarks include employees from well over 500 companies that have greater than 5,000 employees
each, of which over 50 companies have over 100,000 employees each. Respondents are included from over 150 countries.
Compensation
An important part of Moody’s compensation philosophy is ensuring that compensation is aligned to local markets. Moody’s participates in salary surveys in eachof our markets (a market can be considered a country or a region or industry within a country). Every year, we and the other survey participants anonymously
submit compensation data for each job, based on job descriptions. An independent consulting firm aggregates and scrutinizes this information to ensurecompliance with all data privacy regulations. We receive the aggregated data and analyze Moody’s pay rates in comparison with those of the local market.
We update our pay structures every year before the annual salary review process, building a range for each salary band in each market.
Benefits
Moody’s benefits are benchmarked routinely against the market. We conduct benchmarking using industry-specific data wherever possible. Moody’s also has
three benefits-related governance committees, described below.
MANAGEMENT BENEFITS AND COMPENSATION COMMITTEE (MBCC)

The MBCC, established in 1998, regularly reviews global benefit plans and proposals for benefit plan implementation, termination or any other changes
that don’t align with or otherwise have implications for our global benefits strategy, across the following subject plans:» Retirement Account (US Qualified Defined Benefit Plan)» Career Transition Plan

» Profit Participation Plan (US Qualified DefinedCompensation 401(k) plan)» Employee Stock Purchase Plan

» Deferred Compensation Plan (Non-Qualified)» Non-US Retirement Plans

Moody’s 2019 Corporate Social Responsibility Report» Global Profit Sharing Plan
» Health and Welfare Plans

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TCFD Report

APPEALS COMMITTEE (AC)The AC, established in 1998, has the final authority and responsibility under each subject plan for determining benefit claims by plan participants. Any employee,
member or beneficiary may request that the AC review and reconsider benefits determination. The MBCC ensures that the applicant receives written notice ofthe decision by the AC.
ASSET MANAGEMENT COMMITTEE (AMC)

The AMC, established in 2000, is responsible for controlling, managing and investing the assets of the US retirement plans. This includes selecting acceptableasset classes, defining allowable ranges of holdings by asset class and by individual investment managers as a percentage of assets, defining acceptable securities
within each asset class and establishing investment performance expectations. The AMC communicates the policy and performance expectations to investment
managers and reviews the investment performance of the retirement plans regularly to ensure the policies are being followed and progress is being made towardachieving the performance objectives.
401-1

New employee hires and employee turnoverRate of Moody’s employee turnover and number of Moody’s new employee hires1
Employee turnover

New hires
1,771

12

8

1,500
1,299

1,368

1,200

6
4

900

10.1%

9.6%

11.9%

2

600

# OF NEW HIRES% OF EMPLOYEE TURNOVER

10

1,800

300

0

0
2017

2018

2019

Moody’s does not share additional employment information at this time.

1. The following groups are excluded from the analysis: Moody’s Analytics Knowledge Services, non-employees (such as non-payroll consultants) and temporary employment workers (such as interns).
Head count as of December 31, 2019.

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Training and education
103-1

Explanation of the material topic and its Boundary
Moody’s is a data and analytics company that relies on top talent to meet customer and stockholder demands. A multi-generational workforce, global pressures,industry disruptions and talent competition are all forces continuing to drive our prioritization of talent management across Moody’s.
Training and education are only a part of Moody’s talent management framework, which includes talent acquisition, performance management, total rewards,
succession planning and leadership development. Each of these areas supports our business strategy and Moody’s culture as a diverse and inclusive place to work.
At Moody’s, we view training and education as an investment in our people that aligns their professional goals and interests with the success of our firm.
Training and education:» Help us achieve our mission and business objectives» Support our core values and beliefs» Ensure that our employees have professional and technical knowledge and skills to deliver excellence to our clients, customers and market participants

103-2

The management approach and its components
Moody’s training and education efforts are in many ways an extension of our social investing focus on helping young people reach their potential, aimed at
preparing students for successful careers in finance, technology and economics.
From the moment they join, employees begin a journey of continuous learning and development that starts with onboarding and continues throughout theircareers. The opportunities to learn and grow — as people and professionals — are expansive and include role-specific technical and functional skills, professionaland management skills and leadership development.
In 2019, Moody’s implemented a new global program, Leadership Essentials, targeting new and front-line managers from across the Moody’s organization —Moody’s Analytics (MA), Moody’s Investors Service (MIS) and Moody’s Shared Services. This robust three-day experiential program builds core management
skills and capabilities while establishing expectations of great leadership at Moody’s. In addition to the in-class component, the program includes 360-degree
feedback, pre-work on topics such as “Understanding Compensation” and “Talent Acquisition,” and post-work including cohort working groups to further
reinforce the learnings from the program.
Moody’s quality training and education go beyond the classroom, engaging our people with a variety of enriching, individualized experiences. Moody’s is theplace to learn from some of the best minds in finance and technology through peer and informal mentoring and on-the-job training. In addition to instructor-led
classroom training, our in-house training groups use new and effective learning technologies — such as online learning, micro-learning (learning in small bites),
video-based learning and social learning tools — to reach our geographically dispersed employees. Our on-demand self-study learning libraries focus on a variety
of topics, ranging from financial and technical topics to management skills and cultural intelligence.
In addition, employees pursuing higher education can take advantage of our educational assistance program that reimburses them for job-related educational costs.

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Reporting Frameworks
GRI Index

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TCFD Report

Our people-centric approach equips our employees to be successful today and prepares them for the opportunities of tomorrow. In addition, Moody’s offers
several diversity development training programs to support our underrepresented employees; see page A-31 for more details on key programs.
Learning Council
Moody’s Learning Council is led by the learning leaders in the company, including those from MIS (Professional Development & Training), MA Learning, Compliance,
Diversity & Inclusion and Global Talent Management. Through the Council, employees can provide feedback and ideas to any of the learning leaders to identify
ways to enhance training and education at the firm.
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Evaluation of the management approach
Moody’s uses a number of approaches to evaluate the effectiveness of our training and education programs. Among these are focus groups, written andelectronic surveys following the completion of e-learning and instructor-led programs, and needs assessments that are conducted by the various learning groups
to evaluate the effectiveness of learning programs. The needs assessments ask employees and their managers to evaluate:» The effectiveness of training for a variety of skill areas» The importance of a particular skill area in helping the individual or the business meet their objectives» Individuals’ preferences in terms of training modality
Additionally, Moody’s conducts an employee survey every year. This year, we introduced a new employee survey that measures engagement, which is now called
our Business Engagement Survey. This survey includes items that measure key drivers of engagement (for example, Belonging, Manager Trust, Accountability) and
two items that measure engagement as an outcome (“How happy are you at Moody’s?” and “Would you recommend Moody’s?”). We included 14 items from ourprevious employee survey to identify trends in areas such as Inclusion and Work-Life Balance, allowing us to continuously improve and adjust to meet the changing
needs of our workforce. Employees recognize the importance of this tool, as shown by the fact that more than 87% of our employees completed the survey in 2019.

404-1

Average hours of training per year per employee
Moody’s conducted more than 251,109 hours of training for employees worldwide in 2019. (Note: This figure includes only hours captured in Moody’s Knowledge
Portal and online training programs. Employees participated in additional team- and business-unit-specific training.)
Average training hours in 2019			
Overall

Per employee

23.7

By employee category

Per officer-level employee

27.9

Per non-officer-level employee

21.1

Moody’s does not share additional training hours information at this time.
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GRI Index

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Programs for upgrading employee skills and transition assistance programs
Moody’s supports the development of leaders through each important transition in their careers — as new managers, managers of teams and leaders of global
functions. As part of our core management training, in 2019, Moody’s globally provided more than 67,922 hours of development to managers. In addition,
Moody’s offers a number of multiday workshops in which participants hone their management skills, network with senior managers and learn from peers in
an interactive environment.
Moody’s functional and technical training and education includes the MIS Credit Academy and Moody’s Analytics Technology Rotation (MATR) Program.
These programs are examples of career pathways into finance and technology:» The Credit Academy is a multilevel, progressive developmental training program targeted to jump-start and expedite skill development for junior analyticalstaff at MIS. The program includes onboarding, job readiness and career progression training across the full spectrum of analytical and professional skills
required of our analytical staff.
» The MATR Program is a two-year software development rotation program for recent graduates who want to be part of a community of developers at theintersection of finance and technology. Participants hired into the program get an opportunity to rotate throughout different teams across the different
offices in the US, allowing them to gain exposure to a wide variety of technologies within different lines of business.
- Since its inception in 2016, MA has welcomed 59 participants into the program, and two cohorts (2016 and 2017 groups) have graduated. These program
graduates represent 22 successful permanent placements onto technology teams across the organization both in the US and, most recently, in our Brussels
office. Overall, through its first four years, the MATR Program boasts a retention rate of 70% for participants who joined the program and are remaining at
MA. This is a testament to the outstanding experiences they are provided during their rotation assignments and on their permanent placement teams as
program graduates.
- Additionally, the program contributes significantly to diversity hiring efforts across MA. Due to MA’s attendance at conferences such as the Grace Hopper
Celebration and relationships cultivated through a network of colleges and universities, the 2019 and incoming 2020 MATR cohorts are composed of
57% female participants.
Moody’s also maintains our Knowledge Portal, through which 100% of employees accessed training in 2019.
Employees pursuing higher education can take advantage of an educational assistance program that reimburses them for job-related educational costs up
to $15,000 per year; in 2019, more than 377 employees participated in the program. In addition, Moody’s provides career counseling services.
Moody’s 10-week RE-IGNITE program is designed to help bring experienced professionals back into the workplace after an extended absence.
The program serves as a point of reentry for professionals as well as a point of connection with diverse, top-performing talent for Moody’s.

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Diversity and equal opportunity
103-1

Explanation of the material topic and its Boundary
Moody’s believes that an inclusive and diverse workplace that draws on the experiences, background and opinions of all our people is fundamental to our success.
Our business benefits from having many different perspectives. That is why we actively promote diversity at every level of Moody’s. We work hard to ensure that
all employees, from company leaders to new hires, are respected, included and empowered.
The shared employment data is pulled from our primary HR system. The following groups are excluded from the analysis: Moody’s Analytics Knowledge Services,
non-employees (such as non-payroll consultants) and temporary employment workers (such as interns). Head count as of December 31, 2019.
Moody’s is evaluating how best to represent our non-aggregated demographic details as a part of our global diversity and inclusion (D&I) strategy enhancement.

103-2

The management approach and its components
Strategy
At Moody’s, we believe that a diverse workforce representing an array of backgrounds and experiences contributes to the quality of our opinions, products andservices. We support independent thought and promote a work environment that values and maximizes the contributions of all employees. We approach D&I
as a powerful employee engagement initiative that is aligned with our business strategies globally.
Our D&I strategy is composed of three focus areas:» Understanding D&I: Engage and educate employees to understand the value of D&I for themselves and for the company.
» Creating a great employee environment: Achieve a diverse, high-performing culture, ensuring that all employees are respected, included and encouraged
to realize their greatest potential.
» Measuring our progress: Measure the progress of our D&I efforts, including the retention and development of diverse employees and global talent.
In the fourth quarter of 2019, Moody’s underwent a global D&I strategy enhancement to continue to evolve our D&I strategy in the following ways:
Goals» Implement a global strategy that is designed to enhance the overall advancement of employee culture, operational effectiveness and efficiency
by incorporating D&I into all components of our business strategy.
» Increase ethnic representation, specifically our Black, African American and LatinX population» Continue to advance women in leadership roles.
» Enhance analysis of LGBTQ+ and Allies data by encouraging greater voluntary self-identification within the US.
» Provide a higher level of transparency around D&I initiatives and priorities.

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Initiatives» D&I Spotlight – Beyond the Mood, which highlights employees and what they are doing outside of Moody’s to promote D&I» #IamRemarkable, a Google initiative empowering women and underrepresented groups to celebrate their achievements in the workplace and beyond
Responsibilities of management team
Moody’s has a D&I Council composed of the most senior leaders in the organization and chaired by President and CEO Raymond W. McDaniel, Jr. In 2017,
he became one of the first CEOs in financial services to sign the CEO Action for Diversity & Inclusion™ pledge (ceoaction.com/the-pledge), which outlines
the actions that we and other signatories are taking to cultivate a more inclusive workplace and highlights the importance of D&I to Moody’s.
The purpose of the D&I Council is to provide a forum to collect input from executive leaders on D&I strategies and enable leaders to advance D&I
as a business imperative by:» Driving measures of accountability for progress against goals» Exemplifying inclusive leadership behaviors; intentionally building inclusive culture and teams» Empowering leaders to discuss D&I outcomes and holding them accountable» Promoting and cascading the D&I message and initiatives
The D&I Ambassador program was launched in partnership with Moody’s lines of business to help communicate and drive the importance of D&I across the firm.
The Global D&I Ambassadors have had a tangible impact on Moody’s D&I engagement, increasing both manager attendance and senior leadership participationin the diversity strategy. The goals of the D&I Ambassador program are threefold:» Increase communications around Moody’s commitment to D&I and its impact on the business.
» Engage middle managers in driving D&I results.
» Build a culture of inclusion within lines of business.
Employee Resource Groups
Moody’s Employee Resource Groups (ERGs) provide a platform for our employees to share their ideas on ways to make our work culture even more inclusive.
Our ERGs provide information to our leaders on how managers can support employees and how we can make Moody’s an employer of choice for all.
In 2019, Moody’s had 32 ERG chapters globally and six focus areas:» Generational ERG» Multicultural ERG» Women’s ERG» Lesbian, Gay, Bisexual,
Transgender & Allies ERG» Veterans ERG» Minds ERG

Moody’s also has a Women in STEM employee-led group designed to support the development of women in technology through networking, engagement
and education as a means of driving professional growth.

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Reporting Frameworks
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TCFD Report

Equal employment opportunity
We are an equal opportunity employer. For our full policy, see Moody’s Code of Business Conduct: bit.ly/moodyscgsp
Diversity education
The Office of Diversity & Inclusion offers a wide range of workshops, trainings and toolkits, including the annual ERG Summit, which was newly launched in 2019
to evaluate strategic employee priorities related to inclusion, belonging, cultural awareness and individual affinities.
Women in Leadership
Our Women in Leadership programs provide development opportunities for women at the officer and senior officer levels. Focused on building Moody’s
leadership pipeline, they help participants refine their skills and gain visibility across the company.
Programs include the Senior Women’s Leadership Forum, a 12-month interactive leadership development program for women at the senior officer level across
Moody’s that includes in-person and virtual training sessions, executive coaching and development planning, senior leader meetings and an executive speaker
series. One year after program completion, participants and their managers are paired with a coach for ongoing development.
Workplace flexibility
Moody’s is committed to promoting and supporting work-life balance. We support the use of flexible work arrangements through which business needs
can be met while also providing employees with the flexibility to modify their hours, work location or both. Successful flexible work arrangements benefit
employees by giving them the opportunity to better manage their work and personal needs and benefit Moody’s through increased employee engagement.
Globally, 100% of our employees can take advantage of our flexible work arrangement offerings that best fit their needs to help better manage their workand personal life demands.
External partnership
In promoting our D&I initiatives, Moody’s supports a range of external organizations that focus on diversity, professional development for our employees
and broadening academic opportunities for the next generation of business leaders.
103-3

Evaluation of the management approach
Measuring our ongoing progress is part of our D&I strategy.
D&I Scorecard
The Office of Diversity & Inclusion provides a D&I Scorecard that measures progress toward our company goals and targets, including leadership engagementand diverse slates, to hold leaders and senior managers accountable for diversity metrics.

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Reporting Frameworks
GRI Index

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TCFD Report

Our metrics include:» Diverse candidate slates/recruitment: At Moody’s, we hold ourselves accountable for attracting diverse talent from external talent pools and adopting
measures to ensure diverse candidate slates.
» Internal pipeline: Moody’s focuses on achieving greater representation of diversity at all levels through development and advancement. We measure
our effectiveness based on the percentage of all high-potential diverse talent having career discussions and creating comprehensive development plans.
» Leadership accountability: This metric is assessed to hold Moody’s leaders accountable for the advancement of D&I within each line of business.
Measurements include diversity representation, number of D&I efforts led and self-evaluations, all of which are captured in the Leveraging Diversity
competency of our annual Performance Summary for managers. The Performance Summary is related to rewards and compensation.
First Level Officer Study
Launched in May 2018, the First Level Officer Study aimed to identify the barriers to advancement and retention at the associate director/assistant vice president
level. This assessment was conducted to identify actions for progress on women’s advancement and overall employee engagement and talent management.
Results were used to inform and execute Moody’s talent management strategy and leadership development curriculum.
In 2019, some strategic initiatives that resulted from this study included:» Presenting findings to the D&I Council and to Moody’s Analytics, Moody’s Investors Service and Moody’s Shared Services leadership» Developing and launching the Leadership Success Profile» Launching a leadership development program for all new managers, focused on inclusive behaviors and career development conversations» Defining a new consistent promotion and compensation philosophy» Establishing consistent talent management standards, such as diverse talent review
Awards and recognition
Our diverse workforce is our greatest strength, and numerous external organizations and media around the world have recognized our diversity efforts to foster
an environment in which all our employees can succeed as their full and authentic selves. These recognitions and awards continue to demonstrate Moody’s
unwavering commitment to D&I. See our full list of awards: awards.moodys.io
Equal opportunity employment
Moody’s is dedicated to balancing our gender representation at all levels of our business. We have put in place activities and programs to attract and develop
female leaders. These include providing leadership training for women, gender-balanced recruiting and flexible work arrangements for all staff, as well as
recruiting and retaining the most talented employees and building a strong pipeline of talent.

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405-1

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TCFD Report

Diversity of governance bodies and employees
Percentage of individuals1 within Moody’s governance bodies and employee population:2
Male

FemaleGovernance body

100%

Executives

76%

24%

74%

Senior managers

68%

32%

Mid-level managers

68%

First-level managers
Non-managers

of directors are over 50 years old

70%

30%

26%

70%

30%

+6%

67%

33%

67%

33%

+1%

32%

68%

32%

67%

33%

+1%

63%

37%

61%

39%

63%

37%

Steady

50%

50%

50%

50%

52%

48%

Increase in female employees since 2017

2017

2018

−2%

2019

Our 2019 US employee population racial/ethnic group percentage representation was 48.99% white, 46.12% people of color and 4.89%
not disclosed. The percentage for people of color includes those who identified as Asian, Hispanic, Black, American Indian/Alaskan Native,
Hawaiian/Other Pacific Island or two or more races.
Moody’s does not share additional employee demographic information at this time.

1. Governance body represents the 2019 Moody’s Board of Directors; executives represent managing directors, executive directors and CEO direct reports; senior managers represent senior vice presidents and senior directors;
mid-level managers represent vice presidents and directors; first-level managers represent assistant vice presidents and associate directors; non-managers represent managers, associates and analysts.
2. The following groups are excluded from the analysis: Moody’s Analytics Knowledge Services, non-employees (such as non-payroll consultants) and temporary employment workers (such as interns).
Head count as of December 31, 2019.

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Human rights assessment
103-1

Explanation of the material topic and its Boundary
Our commitment to operating in an ethical and lawful manner includes protecting the basic dignity and human rights of our employees and the peoplein our supply chain. For more information, view the “Equal Opportunity Employer” section in the Moody’s Code of Business Conduct: bit.ly/moodyscgsp

103-2

The management approach and its components
Adding to the principles and requirements within our Code of Business Conduct, Moody’s has issued a Modern Slavery and Human Trafficking Statement thatsets out our approach to preventing these practices in our workforce and supply chain. View this statement: bit.ly/moodysmsandhts
In 2018, Moody’s implemented a Vendor Code of Conduct describing our expectations of incumbent and perspective vendors in labor practices, employee
health and safety, diversity and inclusion, and other areas relevant to human rights within the Moody’s supply chain. View Moody’s Vendor Code of Conduct:
bit.ly/moodysvcc
Employees have access to the Moody’s Integrity Hotline, which they may use to report concerns about human rights issues. The Hotline is available to all
Moody’s employees worldwide and is open 24 hours a day, seven days a week, 365 days a year; it offers services in more than 75 languages, including thelanguages spoken in each country where Moody’s has offices.

103-3

Evaluation of the management approach
Moody’s Code of Business Conduct is reviewed biannually. The section of the Code relevant to human rights matters is reviewed by the HR
and Legal departments.

412-2

Employee training on human rights policies or procedures
In 2019, employees completed 9,574 hours of training in human rights policies.
Fully 100% of our employees have been trained in Moody’s human rights policies.

Local communities
103-1

Explanation of the material topic and its Boundary
Our stakeholders consider small business growth, the environment and education to be three of the highest-priority issues for Moody’s to influence.
Many small business owners around the world struggle to gain basic financial management skills or to qualify for loans that could help their businesses grow.
That’s why Moody’s is helping to empower small and growing business owners with the tools and know-how to navigate the lending process. We’re also
extending our business expertise to help ensure that more business owners can participate in markets and reap the benefits.

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Today’s students and young adults will drive the next wave of advances that shape our society. Yet many young people struggle with economic and culturalbarriers, a lack of professional role models and other challenges that hold them back. We believe that by sharing our expertise, we can help young people from
untapped communities build the confidence to succeed in careers in finance, technology and economics — and build brighter futures.
Many communities face challenges related to climate change and the just transition toward a lower-carbon economy. Moody’s helps communities address themby partnering with and providing grants to environmental organizations working at the local level.
Solving problems such as pollution, poverty and lack of access to quality education requires collective action and community engagement. As a global company
whose employees possess specialized expertise in financial services, technology and risk analysis, Moody’s can make a positive difference.
Beyond contributing time and money, we also share our knowledge, products and services with nonprofits that are creating transformational, systemic change.
In 2019, Moody’s and the Moody’s Foundation provided grants to the following organizations and programs:» Acumen» European Volunteer Centre» JA Asia Pacific» Team Rubicon UK» Bank Street Collegeof Education» Foundation for Small
Business Development» Junior Achievement Lithuania» TechnoServe» Brunel University London» Friends of Women’sWorld Banking» NAF» The Asia Foundation» National Merit
Scholarship Corp.

» The Bulldog Trust» CareerTrackers Indigenous
Internship Program» Future Food Institute» Center for Media Change» Girls Inc.

» Network for Teaching
Entrepreneurship» Columbia University Schoolof General Studies» Girls Who Code

» New York Cares» Cooke School and Institute» Gladesmore
Community School» nova-Institute» Creating an Environmentof Success» Habitat for Humanity
Hong Kong» East London
Business Alliance» HandsOn Hong Kong

» Echoing Green

Moody’s 2019 Corporate Social Responsibility Report» Hetrick-Martin Institute» Prep for Prep
» Surfrider Foundation Europe» Team Rubicon» The Resource Foundation» The UK Career
Academy Foundation» Trees for Life
» Village Capital» Vrutti» WEConnect International» Team Rubicon Australia» W!SE (Working in
Support of Education)» Team Rubicon Canada» WWF-Australia

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TCFD ReportSocial investment dollars

Foundation grants

Moody’s charitable contributions

5

1,200

3
$2.4 M2
1$830.9 K

800
600
400
200

2017

2018

0

2019

Matching gifts

300
200
100

2017

2018

Moody’s 2019 Corporate Social Responsibility Report2019$809.7 K

800$874.3 K

600
400

0

2019

2017

2018

2019

Dollars for Doers

200

400

0

2018

50

$506.0 K $514.5 K $500.5 K$168.6 K
THOUSANDS OF DOLLARS

500

2017

Dollars to support volunteer events

600$951.8 K

200

40

150
$119.6 K

THOUSANDS OF DOLLARS

0

THOUSANDS OF DOLLARS

1,000$908.9 K
THOUSANDS OF DOLLARS$3.1 M

1,200$1.1 M

1,000

4

THOUSANDS OF DOLLARSMILLIONS OF DOLLARS$4.2 M

Value of volunteer hours across Moody’s$127.2 K

100

50

0

2016

2017

2018

$32 K

30
$22.5 K20

$19.0 K

10
0

2017

2018

2019

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The management approach and its components
When our actions, both individually and together as a company, give more people access to opportunity, we create a cycle of progress that produces
ever-widening benefits. When people have what they need to pursue their ambitions and build their futures, they’re also able to pay it forward, creating
opportunities for others in their communities.
Empowering people with financial knowledge
Building upon our core expertise in serving the global capital markets, we have undertaken a series of initiatives and partnerships dedicated to helping people
overcome the challenges of growing a small business, including access to credit and capital. Our signature initiative, Reshape Tomorrow™, is designed to change
the lives of people all over the world — particularly women and other untapped groups — by empowering them with information and insights to grow theirbusinesses. In 2019, we worked with eight Reshape Tomorrow partners in communities around the world.
We are fulfilling an important but often overlooked role. Before entrepreneurs can secure the funding they need, they have to acquire the tools and know-how
to navigate in the financial world. That’s where we can help. By working with partners around the world, we provide promising individuals who want to growtheir enterprises with vital access to credit information as well as training to build essential business skills.
Activating an environmentally sustainable future
We continually seek to reduce Moody’s adverse impact on the planet. And, amid increasingly frequent and severe climate-related disasters, we prioritizeorganizations with a mission of environmental sustainability, especially in emerging economies, in distributing our grants.
Helping young people reach their potential
Moody’s is helping to fuel the future by reaching the leaders of tomorrow. We share our expertise and provide opportunities across the globe for the bright,
diverse young minds (ages 15–24) of today’s generation to learn and to discover their full potential to achieve successful careers in finance, technology andeconomics. Because our passion for making a difference can help ignite their own.
Local volunteer and pro bono work
We also look for opportunities to pair our employees’ specialized talents with the needs of local nonprofits. Through companywide volunteer initiatives suchas Moody’s TeamUp®, which unites people in our local offices to complete service projects, and skill-based pro bono volunteering, such as Moody’s Future
Solutions™, driven by employees’ passion and skills, we seek to make lasting impacts in local communities.

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Moody’s Foundation Governance
The Moody’s Foundation, the philanthropic arm of Moody’s, consists of the following members:
BOARD OF DIRECTORS» John J. Goggins» Arlene Isaacs-Lowe» David Platt» Melanie Hughes» Mark Kaye

» Stephen Tulenko» Arlene Isaacs-Lowe, President» Elizabeth McCarroll,
Secretary and Vice President» Anne Van Praagh

OFFICERS» Cindy Ham,
Assistant Secretary» Jeffrey Hare, Assistant
Secretary and Vice President
103-3» Scott Kapusta,
Assistant Treasurer» Jennifer Stula Rivera,
Vice President» Douglas Ryker, Treasurer

Evaluation of the management approach
The Moody’s Foundation Board oversees efforts to engage with and benefit local communities. The progress of grantees toward standardized outcomes
and the impact of Moody’s investment over time are measured annually using Mission Measurement’s Impact Genome Project methodology and scorecard andMoody’s own CSR key performance indicators (KPIs): quality of evidence; beneficiary demographics; global footprint; and job readiness outcomes in finance,technology and economics.
Moody’s 2019 internal KPIs were based on 2018 data. Internal targets for 2020 are being discussed on a rolling basis to allow time for the portfolio to alignwith Moody’s CSR strategy, which was launched in 2018, and external KPIs will be identified in April 2020. Where opportunities to strengthen efficacy are
identified, the team works with the partner organization to develop strategies for improvement.

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Moody’s community investment KPIs
2018

2019

Beneficiaries														LOW-INCOME/
ECONOMICALLYDISADVANTAGEDFEMALE
100%

100%
79%

75%
50%

49%

54%1

75%

60%

58%

54%

53%1

48%

25%
0

50%

48%
30%1

25%

OverallEmpowering people withfinancial knowledge

Activating an environmentally
sustainable future

Quality of evidence

Job readiness outcomes

100%

100%

75%

75%
50%

50%

Helping young people
reach their potential

OverallGlobal impact

50
IN 2018

52%

2

50%

43%

30%

25%

0

25%

99
IN 20191

0High-quality evidence(Level 1, 2, 3)0

Alignment with job
readiness in finance, technology
and economic careers

Countries served

1. Two of Moody’s disaster relief partners with outlying results were excluded. This will be addressed in 2020.
2. Lower than expected due to a misaligned education program, with significant reach, reporting a low number of outcomes. Misalignment will be addressed in 2020.

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413-1

SASB Index

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Operations with local community engagement, impact assessments and development programs
69% – This figure represents the percentage of countries where we have grantee and employee engagement partnerships globally. We do not conduct
environmental impact assessments or development programs directly but rather depend on our grantees to have included them as part of their program
development process. The progress of grantees toward standardized social impact outcomes and the impact of Moody’s investment over time are measured
annually using Mission Measurement’s Impact Genome Project methodology and scorecard and Moody’s own CSR KPIs.

Public policy
103-1

Explanation of the material topic and its Boundary
We encourage employees to participate in the political process on their own time. When doing so, they must not imply that they are acting on behalf ofMoody’s. Individual participation in political activities must be completely voluntary and must occur only during nonworking hours. Activities may not involvethe use of Moody’s funds, personnel time, equipment, supplies or facilities. Employees’ personal political contributions are not reimbursed by the company.
Moody’s is the parent company of Moody’s Investors Service, which provides credit ratings and research covering debt instruments and securities, including
securities issued by state and local governments, municipalities and sovereigns. In light of the work that Moody’s Investors Service performs, we must be
sensitive to potential conflicts of interest. Moody’s does not maintain a political action committee.

103-2

The management approach and its components
As with any other violation of Moody’s Code of Business Conduct, if employees suspect that Moody’s funds, personnel time, equipment, supplies or facilities havebeen wrongfully used for political contributions or lobbying, they are encouraged to report violations to Legal or Compliance or via the Moody’s Integrity Hotline.

103-3

Evaluation of the management approach
Moody’s Code of Business Conduct is reviewed biannually. The section of the Code of Conduct relevant to matters of public policy is reviewed by theGovernment and Public Affairs Group.

415-1

Political contributions
In line with the US Federal Lobbying Disclosure Act, external US lobbyists hired by the company reported $90,000 in expenses related to federal lobbying
during the year. No Moody’s employee meets the applicable definition of lobbyist.
Moody’s does not have a political action committee. In line with European law, Moody’s Shared Services UK Ltd is registered on the EU’s transparency
register and, for 2019, has reported €500,000–€599,000 in activities related to engaging with the EU institutions.

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Customer privacy
103-1

Explanation of the material topic and its Boundary
Moody’s gathers personal data and other data from our customers via our websites, mobile applications and other forms of Moody’s online activities,
as well as through offline means, as described in our Privacy Policy. We use the data collected for legitimate business purposes, including the following:» Fulfillment of requests» Informational communications» Administrative communications» Other business purposes, including data analysis, editorial and feedback purposes, customer support and improvement of our products and services
We take our role in safeguarding this information seriously.

103-2

The management approach and its components
Moody’s is committed to developing and maintaining a best-in-class security program that addresses, among other areas, privacy and data security, including forour customers’ data. Our program integrates Moody’s business objectives with industry and internal best practices to provide a foundation for decision-making
regarding the management, security and use of data within the organization. Data is safeguarded based on requirements and controls determined by Moody’s
Information Risk and Security, which include access and right of use controls. Security controls are periodically evaluated by Internal Audit.

103-3

Evaluation of the management approach
We regularly review and update, as needed, our Privacy Policy (bit.ly/moodysprivacypolicy), which governs how our organization collects, uses, processes
and protects personal data of external parties.

418-1

Substantiated complaints concerning breaches of customer privacy and losses of customer data
Moody’s does not disclose specific information in this area due to confidentiality constraints. Please see our Privacy Policy to learn more about our approach
to customer privacy: bit.ly/moodysprivacypolicy

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SASB Index
Moody’s and SASB
Guidance provided by the Sustainability Accounting Standards Board (SASB) for the Professional & Commercial Services industry helped inform the data included in
Moody’s 2019 Corporate Social Responsibility Report. In addition, Moody’s has identified the sections of the CSR Report, as well as those in other public disclosures,that most closely align with SASB’s objectives. Moody’s will continue to examine ways to adjust our disclosures as these topics change over time.

About this index
Unless otherwise noted, this document covers all of Moody’s Corporation (NYSE: MCO) and its subsidiaries, and all data covers the period from January 1 to December 31, 2019.
All references to dollars are to US dollars. All references to GRI reporting are to the Global Reporting Initiative (GRI) Standards: Core option disclosures found in the GRI Index in
the 2019 Corporate Social Responsibility Report.
Certain statements in this Index and cross-referenced in the Report are aspirational or otherwise forward-looking, and company goals are not guarantees or promises thatall goals will be met. Actual results may differ materially from the company’s expectations or predictions expressed in this Index and cross-referenced in the Report. Statistics,
metrics and other performance measurements included in this Index and cross-referenced in the Report are estimates and may be based on assumptions or developing
standards. Consistent with our holistic approach to CSR, examples of products and services included in this Index and cross-referenced in the Report include instancesin which they have been provided for free, at a reduced cost, or for a fee or cost.

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Sustainability disclosure topics & accounting metrics

Data security
ACCOUNTING METRICCATEGORYCODE

RESPONSE

Description of approach toidentifying and addressing
data security risks

Discussion and Analysis

SV-PS-230a.1

See GRI Index, Customer privacy, Item 103-2, on page A-41.

Description of policies and practices
relating to collection, usage, andretention of customer information

Discussion and Analysis

SV-PS-230a.2

See GRI Index, Customer privacy, Items 103-1, 103-3 and 418-1,
on page A-41.

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Workforce diversity & engagement
ACCOUNTING METRICCATEGORYCODE

RESPONSE

Percentage of gender and racial/ethnic group representation for(1) executive management and(2) all other employees

Quantitative

SV-PS-330a.1

See GRI Index, Organizational profile, Item 102-8, on page A-4,
and Diversity and equal opportunity, Item 405-1, on page A-33.

(1) Voluntary and (2) involuntary
turnover rate for employees

Quantitative

SV-PS-330a.2

For data about the voluntary turnover rate for employees,
see GRI Index, Employment, Item 103-1 on page A-21
and Item 401-1 on page A-25.

Employee engagement
as a percentage

Quantitative

SV-PS-330a.3

We define employee engagement as the percentage of employees
who respond to our annual Business Engagement Survey, which
was completed by more than 87% of employees in 2019. For more
information about our approach to engaging employees, see GRI
Index, Stakeholder engagement, Item 102-43, on page A-12,
and Training and education, Item 103-3, on page A-27.

Moody’s 2019 Corporate Social Responsibility Report

For descriptions of our policies and programs for fostering equitable
employee representation, see GRI Index, Diversity and equal
opportunity, Items 103-2 and 103-3, on pages A-29 to A-32.

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Professional integrity
ACCOUNTING METRIC
Description of approach toensuring professional integrity

CATEGORYCODE

RESPONSE

Discussion and Analysis

SV-PS-510a.1

See GRI Index, Ethics and integrity, Items 102-16
and 102-17, on pages A-7 and A-8.
Code of Business Conduct
Code of Professional Conduct
Vendor Code of Conduct

Total amount of monetarylosses as a result of legal
proceedings associatedwith professional integrity

Quantitative

SV-PS-510a.2

Material legal proceedings for the company are disclosed in
Note 22, Contingencies, on page 113 of our 2019 Form 10-K.

CATEGORYCODE

RESPONSE

Quantitative

SV-PS-000.A

See GRI Index, Organizational profile, Items 102-7 and 102-8,
on page A-4.

Activity metric
ACTIVITY METRIC
Number of employees by:(1) full-time and part-time, (2)temporary, and (3) contract

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TCFD Report
About TCFD
The Financial Stability Board established the Task Force on Climate-related Financial Disclosures (TCFD) to develop recommendations for more effective climate-related
disclosures that: a) “promote more informed investment, credit, and insurance underwriting decisions” and b) “would enable stakeholders to understand better theconcentrations of carbon-related assets in the financial sector and the financial system’s exposures to climate-related risks.”
The Task Force’s recommendations are structured around four thematic areas that are core elements of how organizations operate: governance, strategy, risk management,
and metrics and targets. The four overarching recommendations are supported by key climate-related financial disclosures, referred to as recommended disclosures,that build out the framework with information that will help investors and others understand how reporting organizations assess climate-related issues.

Moody’s and TCFD

Governance

Moody’s Corporation (Moody’s) is a global integrated risk assessment firm thatempowers organizations to make better decisions. Our data, analytical solutions
and insights help decision makers identify opportunities and manage the risks of
doing business with others. We believe that greater transparency, more informed
decisions and fair access to information open the door to shared progress.

The Board’s oversight of climate-related risks and opportunities

Moody’s response to the TCFD recommendations follow the confirmation of
support signed by our CEO and CFO in June 2017. It also follows our ongoing annual
disclosure commitment of the organization’s greenhouse gas (GHG) inventory
and climate-related issues through CDP. Moody’s Investors Service (MIS) has
undertaken extensive reviews to integrate scenario analysis into credit impact
assessments. Moody’s firmly believes in promoting global environmental, socialand governance (ESG) measurement standards for use by market participants andongoing commitment to enhancing transparency in ESG. Richard Cantor, chiefcredit officer of Moody’s, serves as a member of the Task Force. This TCFD response
addresses the 11 recommendations and was developed with the assistance of
external consultants, building on past risk disclosure through CDP and interviews
with key internal risk personnel.

The Board’s oversight of risk

Moody’s 2019 Corporate Social Responsibility Report

Moody’s Board of Directors (the “Board”) oversees our management and overall
strategy. In fulfilling this responsibility, the Board oversees our enterprise-levelapproach to major risks facing the company and identifies strategic opportunities.

With the assistance of the Audit Committee, the Board oversees Moody’s policies
for assessing and managing our exposure to risk. The Board periodically reviews
these risks and Moody’s risk management processes. The Board’s responsibilities
include reviewing our practices with respect to risk assessment and management
and reviewing contingent liabilities and risks that may be material to the company.
As part of its risk oversight, the Audit Committee reviews key risk factors, including
those disclosed in Moody’s Annual Report on Form 10-K. Such risk factors include
the risk of a business continuity disruption due to climate-related incidents.
Risk factors in the Form 10-K also include exposure to reputational and credibility
concerns, such as those that could stem from climate-related considerations.
For example, the MIS practices relating to the incorporation of climate-relatedrisks into its credit methodologies and credit ratings could potentially impact
its ratings performance and business reputation.
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The Governance & Nominating Committee oversees sustainability matters,
including significant issues of corporate social and environmental responsibility,
as they pertain to Moody’s business and long-term value creation for ourstockholders. The Governance & Nominating Committee reviews such mattersand makes recommendations to the Board. In addition, the Audit Committee
oversees financial, risk and other disclosures made in our annual and quarterly
reports related to sustainability. We included disclosure relating to sustainability
in our 2019 Form 10-Q filings as well as in the Form 10-K for the year ended
December 31, 2019.
The Board has reviewed and approved our Environmental & Sustainability Policy,
which reflects Moody’s efforts to minimize the impact of our operations andservices on the environment.

The Board’s oversight of strategy
The Board reviews Moody’s long-term strategic plan at least annually. Membersof management provide the overall strategy for the company as well as for thetwo primary business segments, focusing on both Moody’s current position and the
proposed plans to achieve our strategic goals. Management’s presentations include
financial updates, strategies for the various lines of business and geographic plans.
The Board’s ongoing oversight extends throughout the year, because management
is continually adjusting Moody’s strategy in response to emerging risks andopportunities. As described below, this was especially evident in 2019 as we
strived to enhance our work in the ESG sector.
Learn more about Moody’s corporate governance structure and practices:bit.ly/moodyscgsp

Management’s role in assessing and managing
climate-related risks and opportunities

Management’s role with respect to risk

TCFD Report

the chief risk officer. The Enterprise-Wide Risk Committee reviews the work of theEnterprise Risk Management (ERM) function that is managed by the chief risk officer.
Among other things, the ERM function is responsible for identifying and monitoring
existing and emerging risks that may impede the achievement of Moody’s strategicand operative objectives.
The CFO provides leadership in innovation, implementation and influence tofacilitate long-term sustainable growth. Beginning this year, Moody’s is leveraging
a climate-related scenario analysis, including a physical risk assessment from
Four Twenty Seven, Inc. and a transition risk assessment, to understand the financial
and risk-related implications of climate change on Moody’s business model andoperations. The CFO has expanded financial disclosures related to sustainability
that provide useful information to investors and has tied CFO incentive
compensation to sustainability performance.
The chief risk officer, who dually reports to the Audit Committee and the CEO,provides oversight and monitoring of all material risks that have the potential
to hinder Moody’s operations and talent, including climate-related risks. Risks
associated with climate change are actively managed through the Corporate
Services Group and mitigated through the Crisis Management and BusinessContinuity Plans and teams. Should any material climate-related risks andmitigating actions be identified by the ERM function, they would be presented
to the Audit Committee and to the Board.
Moody’s CSR Council, chaired by President and CEO Raymond W. McDaniel, Jr.,
convenes senior management team members to shape its overall CSR strategy.
The CSR Working Group, chaired by Arlene Isaacs-Lowe, global head of CSR andpresident of the Moody’s Foundation, consists of executives charged with honing
and implementing the strategy. In addition to our CSR team, Moody’s also created
the CSR Impact Leaders program to leverage employee knowledge and insightin advancing our CSR initiatives. These CSR bodies provide oversight and guidanceon how employees’ input can be incorporated into environmentally conscious
policies and processes.

The CEO, who also serves on the Board, is responsible for ensuring that material
risks are appropriately assessed and mitigated. Under the oversight of theBoard and its committees, the CEO has established an Enterprise-Wide
Risk Committee, composed of the CEO and his direct reports, which include

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Management’s role with respect to managing opportunities
Moody’s management team develops a strategic plan that responds tomarket-driven opportunities through new products, offerings and acquisitions.
Moody’s corporate mission is to provide trusted insights and standards that help
decision makers act with confidence. Management believes that one key aspect
to implementing this strategy is to invest in strategic growth opportunities.
Through the work of the management team, led by the CEO and chief operating
officer, Moody’s invests in initiatives to implement our strategy, includinginternally led organic development and targeted acquisitions.

Climate-related risks and opportunities governance summary» Moody’s Board of Directors: Oversees overall strategy and enterprise-levelapproach to major risks» Audit Committee: Is responsible for the financial, risk and other disclosures
made in our annual and quarterly reports related to sustainability» Governance & Nominating Committee: Oversees sustainability mattersas they pertain to business and long-term value creation and makes
recommendations to the Board regarding these issues» CEO: Ensures that risks are mitigated and opportunities are identified» CFO: Embeds sustainability into business-as-usual financial processes
and decision-making within their remit, including real estate, facilities
and supply chain» Chief risk officer: Is responsible for full ERM function, including risk
identification and monitoring» Chief strategy officer: Is responsible for the CSR function and provides
periodic reporting, along with the global head of CSR, to the Board» CSR team: Is responsible for internal capacity building and implementationof sustainability measurement and reporting of strategy and processes

Moody’s 2019 Corporate Social Responsibility Report

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TCFD Report

Strategy
ESG considerations are critical to managing risk and seizing opportunities in today’s
global capital markets. Moody’s is committed to transparently and systematicallyintegrating ESG considerations into credit ratings and risk management solutions.
Working with our affiliates, Moody’s is also developing standalone market-leading
ESG, sustainable finance, and climate risk data and assessments to meet thegrowing needs of issuers, investors and policymakers across the globe. Throughan in-depth discovery process conducted in 2017, which included survey input,
meetings and interviews, Moody’s learned that our stakeholders consider small
business growth, environmental sustainability and education to be high-priority
economic, environmental and social issues to which we could make an effective
and meaningful contribution.

Climate change-related opportunities
Moody’s has identified three main areas of climate-related opportunities for its
business: strategic investment in products and services, memberships and climatechange commitments, and research and development. Moody’s new productofferings and climate-related analytical initiatives are intended to address thebusiness opportunities and risks identified in the relevant section below.

Strategic investment in products and services
In 2019, Moody’s acquired several ESG-related companies to promote transparent
standards for use by market participants. These acquisitions recognize that ESG
considerations are increasingly relevant to issuers, investors, counterparties andothers as capital markets and other stakeholders seek clear and objective standards
for understanding and measuring these factors. Moody’s new product offerings andclimate-related analytical initiatives contributed to an estimated $15 million to$20 million in revenue in 2020.
VIGEO EIRISIn April 2019, Moody’s acquired a majority stake in Vigeo Eiris, a global provider of
ESG research, data and assessments. With products and capabilities based on ESG
assessments and an extensive ESG database, Vigeo Eiris offers specialized research

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SASB Indexand decision-making tools for sustainable and ethical investments. These include
carbon footprint data and assessments covering physical risk management, climatechange governance and energy transition. The addition of Vigeo Eiris strengthens
Moody’s ability to provide positive screenings that identify companies developing
climate change solutions and support our partners in the development of EU’s
Paris-aligned Benchmarks.
FOUR TWENTY SEVEN

TCFD Report

UNITED NATIONS GLOBAL COMPACT

In July 2019, Moody’s became a participant in the United Nations Global Compact(UNGC). Launched in 2000 to encourage companies to engage in responsible
business practices, the UNGC is the largest corporate sustainability initiative inthe world, with over 9,500 business and 3,000 non-business signatories. As partof its membership, Moody’s will submit an annual progress report that includes a
description of practical actions it has taken to enhance its sustainability efforts.

In July 2019, Moody’s acquired a majority stake in Four Twenty Seven, a providerof data, intelligence and analysis related to physical climate risks. It does this byaggregating location-based exposures to provide climate risk assessments at thecompany, REIT, sub-sovereign and sovereign levels. The addition of Four Twenty
Seven enhances Moody’s growing portfolio of risk assessment capabilities andunderscores our work to advance global standards for assessing environmental
and climate risk factors. Four Twenty Seven also strengthens our growing thought
leadership and research on incorporating climate risk into economic modelingand credit ratings.

In addition, Moody’s was named as a founding participant of the UNGC CFO
Taskforce for the Sustainable Development Goals (SDGs) and joined the UNGC
Reporting on the SDGs Action Platform to help shape the future of corporate
reporting on SDGs. The SDGs are 17 goals established by the UN to address global
challenges by 2030, including climate change and environmental degradation.

SYNTAO GREEN FINANCE

PRINCIPLES FOR RESPONSIBLE INVESTMENT

In October 2019, Moody’s acquired a minority stake in SynTao Green Finance, aprovider of ESG data and analytics based in and serving China. SynTao’s data covers
publicly listed Chinese companies, bond issuers and macro ESG development trends,
and the company also provides thought leadership on ESG to policy makers. This
investment strengthens Moody’s presence and engagement in China and its financial
markets, and reflects our focus on supporting long-term, sustainable regional growthand contributing to the healthy development of ESG markets more broadly.

In July 2019, Moody’s became a signatory to the Principles for Responsible
Investment (PRI), an international association of asset owners, investment
managers and service providers working toward a more sustainable global financial
system through the incorporation of ESG factors into investment decisions. Thisbuilds on our 2016 signing of PRI’s Statement on ESG in Credit Risk and Ratings,
part of an initiative to enhance the transparent and systematic integration of ESG
factors into credit risk analysis. As a PRI member, Moody’s joins a network of over
2,200 organizations in endorsing PRI’s six core principles related to acting in thebest long-term interest of investors and incorporating ESG issues into investment
and disclosure practices. Moody’s will submit a report to PRI on its responsible
investment activities annually. Moody’s will also continue to publish a TCFD Reportannually, which satisfies PRI’s new requirement for signatories beginning in 2020.

Memberships and climate change commitments
Moody’s conducts outreach and engagement with a multitude of ESG and CSR
bodies and is a member of a number of industry associations and supranationalorganizations. For a full list, see GRI Index, Organizational profile, Item 102-12, on
page A-5, and Item 102-13, on page A-6. The following are highlights from 2019.

Moody’s 2019 Corporate Social Responsibility Report

In December 2019, Moody’s also signed the UNGC Business Ambition Pledge
for 1.5°C and committed to instituting science-based targets through the Science
Based Targets initiative to help limit global temperature rise to 1.5 degrees Celsius
and achieve net-zero emissions by 2050.

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A4S CFO NET ZERO STATEMENT OF SUPPORTIn December 2019, Moody’s CFO, Mark Kaye, signed the Accounting for
Sustainability (A4S) CFO Net Zero Statement of Support and committed thecompany to setting and validating science-based targets through the Science
Based Targets initiative. A4S was established by HRH The Prince of Wales and aims
to inspire action by finance leaders to drive a fundamental shift toward resilientbusiness models and a sustainable economy.

Research and development
DEVELOPMENT OF REPORTS AND WHITE PAPERS

Using data and analytics from Four Twenty Seven, Moody’s analysts haveproduced several reports this year and in early 2020 on the exposure of issuers
to the physical risks of climate change. To view full reports, visit: esg.moodys.io
In September 2019, MIS published a report analyzing the growing exposure of
local governments to rising temperatures in the US. The report found that local
government exposure to rising temperatures stemming from climate change varies
widely by geography, with the Midwest and Southeast being more exposed thanother regions.
In January 2020, MIS published a report examining the exposure of investor-owned
utility holding companies with regulated US electric subsidiaries to the heightenedrisk of extreme weather events brought on by climate change. The report foundthat climate hazards, including higher air and water temperatures and increased
intensity and frequency of storms, will increase financial and physical risks forinvestor-owned utilities.
In February 2020, MIS published a report examining the labeled bond market.
The report found that green, social and sustainability bond issuance will hit a
combined record of $400 billion in 2020, up 24% from the previous record of $323
billion achieved in 2019. Continued growth and diversification of these markets
will be accompanied by innovation in new labels and structures, particularly withrespect to transition bonds and sustainability-linked bonds and loans.
In March 2020, MIS published a report describing a conceptual approach to using
climate scenarios to help assess the credit impact for rated issuers across sectors

Moody’s 2019 Corporate Social Responsibility Report

TCFD Report

globally on a consistent basis. While we expect a more pronounced decarbonization
trajectory and more frequent and volatile extreme weather in the future, there is awide range of possible outcomes, and the credit impact will not be uniform acrossor within sectors. Consequently, climate scenarios are critical in providing consistent
starting points to better understand the relative positioning and strategic responseof companies, governments and assets to both transition and physical risks.
On transition risks, our scenarios are based on the International Energy Agency’s
Stated Energy Policies Scenario and Sustainable Development Scenario, which areclosely aligned with the near-term and longer-term goals of the Paris Agreement,
respectively. With regard to physical risks, in the near term the uncertainty inoutcomes is driven mainly by scientific uncertainty inherent within climate models
themselves. Grouping the outcomes of climate models into low, medium andhigh tiers allows for the exploration of potential severity in climate hazards.
DECISION MODEL REBUILDING

Factoring in climate data from Vigeo Eiris and Four Twenty Seven, Moody’s
modeling teams have been processing various segment, industry and regulatory
scenarios and models to update probability of default and loss given default scoring.
This helps market participants of those scenarios and models better understandportfolio implications, concentrations and sensitivities to ESG.
SCENARIO ANALYSIS

In 2020, we conducted a scenario analysis to evaluate our exposure to physicaland transition risks in our operations and against our strategy. The scenario
analysis categorizes several climate-related opportunities that Moody’s has been
implementing in recent years as a market response for ESG-related products. We
identified climate-related risks and opportunities across three time frames: shortterm, which considers 2025; medium term, which considers 2030; and long term,
which considers 2040. We explored the potential impacts of each risk with the goalof building mitigation strategies into financial planning. The low carbon transition
presents numerous opportunities for Moody’s in terms of new product offerings andexpansion of ratings to fully encompass long-term climate-related risks and create
opportunities for integration into an organization’s business sustainability.
We assessed the resilience of our strategy by conducting scenario analysis toA-50

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investigate the implications of two alternate yet plausible future states of the world.
To explore transition risks and opportunities, we applied a low emissions scenario
involving application of strong policies such as carbon pricing to limit temperaturerise in line with globally agreed climate goals. We modeled physical risks across
Moody’s entire global portfolio to assess both chronic risks (arising from long-term
shifts in climate and weather patterns) and acute risks (arising from sudden andsevere climate events). We modeled transition risks and opportunities — focusing
on carbon price — across short-, medium- and long-term intervals. We assessed
physical risks using a high-emissions scenario over the next 20 years; climate
impacts under different scenarios prior to this time show negligible differences
until the trajectories of their emissions begin to diverge.
We used the International Energy Agency World Energy Outlook Sustainable
Development Scenario to explore transition risks and opportunities. This scenario
limits temperature rise in accordance with global climate goals and meets the UN’s
SDGs for energy access and air quality. We modeled carbon pricing scenarios toevaluate their impact on Moody’s direct (Scope 1) and indirect (Scopes 2 and 3)
GHG emissions.
We assessed physical risks using the Intergovernmental Panel on Climate Change
Representative Concentration Pathway 8.5. This scenario consists of few or nopolicy changes, resulting in high levels of atmospheric GHG emissions at the endof the century and associated exacerbated physical impacts, such as increased heator water stress, sea level rise and other extreme events. This analysis also rated
the risk of natural disaster in the form of earthquake risk. As there is yet to be astrong proven link between climate change and earthquake events, the results
were not included in this report; however, we fed them into internal risk
frameworks and planning.
The future we experience is likely to be a combination of elements from bothtransition and physical risk scenarios. Exposure to transition risk due to theunforeseen implementation of policies is likely. However, as our global carbon
budget to limit warming to 1.5 degrees Celsius diminishes, we are likely toexperience physical impacts from the change of weather patterns and climate,

TCFD Report

regardless of policy decisions in the next decade. Exploring the extremities of hightransition risk and high physical risk scenarios helps inform our strategy and assesslong-term resiliency. Moody’s will monitor several indicators to help determine
whether one scenario is evolving over another. These signposts include global
carbon pricing implementation, nationally determined contributions to meet global
climate goals (expected to be increased for the next Conference of the Parties),
renewable energy prices and energy mix penetration as well as the evolutionof emission pathways and emerging scientific literature.
A summary of the climate-related risks and opportunities that Moody’s identified
and modeled is shown in the tables on the next two pages.
Overall, climate-related risks for both transition and physical scenarios pose
low-level impact to Moody’s. Our dedication to climate action through comprehensive
measurement and disclosure of emissions in the form of committing to setting
science-based targets minimizes the exposure to accelerated emissions mitigation
policies. The impact of carbon pricing on a sliding scale up to $140 per metric ton ofcarbon dioxide equivalent in 20401 on Moody’s emissions footprint was below 1%of net operating income. We have also enhanced the MIS rating methodologies
and made improvements to acquired ESG-related companies to incorporate climate
risk into economic modeling and credit ratings to ensure the MIS ratings are resilientto these risks.
Physical risks for Moody’s global portfolio were low for acute climate events offloods, hurricanes and typhoons. Impact of chronic events were low for sea level riseand in the medium risk category for heat and water stress. Although heat and water
stress were deemed high risk, the impact on Moody’s is expected to be minimal.
The geographic locations shown to experience heat and water stress were evaluatedin consideration of their energy requirements and the additional expenses tocondition workspaces to safeguard employee comfort. Expenses required to securewater supplies were minimal. The site-level physical risk assessment informed whichsites globally would require resiliency investment and those which would be moresuitable for long-term relocation.

1. World Energy Outlook 2019, International Energy Agency, https://www.iea.org/reports/world-energy-outlook-2019.

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Long-term risk level

PHYSICAL RISKS

Acute

FloodsSudden and severe
natural events

Low

Hurricanes
and typhoons

Chronic

Low

Heat stress

Risks due to long-term
shifts in climate or
weather patterns

MediumWater stressMedium

Sea level rise
Low

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Risk mitigation
In a high-temperature-rise scenario, risk of flood was low across Moody’s rental portfolio,
with 9% of sites at risk. Sites at higher risk will be evaluated.

Sites with historical exposure to severe weather events are monitored and assessed for resiliency
investment. Overall, 9% of our sites are at risk to hurricanes and typhoons; most of these sites
are at low risk. Those identified as higher risk are monitored for resiliency investment andpotential relocation.
A significant proportion (33%) of our sites is expected to experience a high level of heat stressdue to climate change. We expect operation costs of comfort cooling at these sites to increase
and will monitor them to ensure we can continue to source 100% renewable electricity.

In 4% of sites, Moody’s operations are expected to experience water stress due to climate change.
Each site identified at risk of water stress will be evaluated for resiliency investments and monitored,
along with its water levels. Water stress tends to be one of the less relevant risks for offices, whichmake up all of Moody’s rental portfolio that was screened for physical climate risk exposure.

Overall, the risk to Moody’s from sea level rise is 1% of the sites. To improve resiliency,
the affected sites will be monitored in terms of contingency planning and adaptation measuresinstalled at the citywide level.

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Short term (2025)

TRANSITION RISKS AND OPPORTUNITIESPolicy and legal

Technology

Market

LOW RISK

Increased pricingof GHG emissions

Introduction of mandatory carbon pricing would
increase costs for direct operations and increase costs
indirectly via the purchase of goods and services.

Mandates andregulations on existingproducts and services

Mandates and regulations on high-carbon
products give way to increased opportunities
for the growth of Moody’s ESG-related
rating products.

Costs to transition
to lower-emission
technology

The World Energy Outlook Sustainable Development
Scenario shows a significant continued reductionin the pricing of renewable technologies; therefore,
we will benefit from avoided costs in the continued
procurement of renewable electricity.

Changing customer
behavior

Moody’s is unlikely to experience reduced demand
for goods and services due to increased input prices,
but we likely will realize opportunities from thegrowth of our ESG-related products.

Shifts in consumer
preferences

Shifting of customer preferences is unlikely to
weaken our reputation if we keep responding
to market demand for more climate leadership.

Climate-related risk
analytics in ratings

Potential poor ratings performance due to an
ineffective implementation of climate-related risk
analytics in ratings could damage the MIS reputation.

Stigmatizationof sector

Moody’s faces potential stigmatization fromits association with high-carbon emitters.

Increased stakeholder
concern or negative
stakeholder feedback

Moody’s strong push for increased disclosure on
GHG inventory and implementation of science-basedtargets will likely meet stakeholder expectations.

Medium term (2030)

Long term (2040)<0.5% impact on
operating income<1% impact on
operating income

Market growth
opportunity

Market growth
opportunity

Avoided costs

Avoided costs

Market growth
opportunity

Market growth
opportunity

Market growth
opportunity

Market growth
opportunity

No discernible
quantified impact

No discernible
quantified impact

No discernible
quantified impact

No discernible
quantified impact

Market growth
opportunity

Market growth
opportunity

OPPORTUNITY

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Risk management

Impact of regulation on utility and energy costs

ESG risk factors influence investment processes and decision-making and cover
many issues that traditionally have not been part of financial analysis yet arelikely to have increasing operational and financial impacts. Moody’s assesses
climate-related risks through a multidisciplinary risk management process.
While climate-related risks have not been determined to be material to ouroperations at this time, we have identified three potential areas of impact:
extreme weather patterns on operations, regulation on utility and energy
costs, and reputational risks related to sustainability practices.

As energy markets and regulations change, Moody’s sees the potential for anear-term increase in operating costs. Specifically, climate change regulation
may result in energy price increases. Gas, electricity, water and sewer
expenses represented about $5 million or 0.2% of our 2019 operating expenses.
A hypothetical 10% rise in utility and energy prices across the board could raiseelectricity spend by about $500,000 annually.

Below are descriptions of the potential risks and our approach to risk
management for each scenario.

While this would have a minimal effect on Moody’s financial results, it ispart of our business strategy to manage this exposure. We work with relevant
partners and vendors to assist in calculating our global footprint and devise
recommendations for emission reductions. These efforts include ensuring
appropriate terms and conditions are in place to plan for potential disruptions
and build in redundancy where needed.

Impact of extreme weather patterns on operations
Changes and extreme variability in weather patterns could potentiallycause a reduction in revenue from decreased delivery of goods and services
and/or increased costs associated with operations. For example, ourAsia-Pacific operations are vulnerable to an increase in the severity, durationand frequency of tropical storms. Physical risks in the US take the form of increased
frequency and severity of storms with related flooding, particularly in the coastal
eastern states, and extreme heat events contributing to drought conditions andnumerous wildfires across the western states. This could lead to temporary or,in the event of severe damage, permanent closure of offices. One such instanceoccurred in 2012, when our headquarters at 7 World Trade Center in New York City
was temporarily closed due to storm surge flooding that resulted in a loss of
power in Lower Manhattan.
As part of our risk management approach, Moody’s works to understand risk
drivers and manage operating expenses accordingly. Business continuity anddisaster recovery planning is an integral part of our risk culture and encompasses
climate-related risk. When evaluating this specific scenario, we determined thatalternative options such as telecommuting and the transfer of work to otherlocations are feasible and can be implemented with modest productivity disruptions.

Moody’s 2019 Corporate Social Responsibility Report

Impact of reputational risks related to sustainability practices
Moody’s is highly visible within the capital markets and attracts many diverse
stakeholders, including individuals and organizations for whom our future is of direct
importance, as well as indirect stakeholders who are concerned with corporate
behavior and action. This visibility heightens the potential impact of climate-relatedrisks of our operations and product offerings. Since the threat of climate change isheld as relevant and important by certain stakeholders, Moody’s actions or lackthereof concerning climate change could create reputational risk. For example, if
we are not transparent and do not adequately explain our actions to stakeholders,
they could conclude that Moody’s is not environmentally responsible. Further, theMIS practices relating to the incorporation of climate-related risks into its credit
methodologies and ratings could potentially impact its ratings performance andbusiness reputation. Though any one incident is unlikely to weaken our reputation,
a cumulative lack of support and transparency for sustainability goals could detractfrom our brand value.
As part of our risk management approach, Moody’s has engaged a third-party
vendor to evaluate our carbon accounting and reporting and to develop meaningfulrecommendations to help us accelerate our climate-related risk initiatives. We arecommitted to advancing our climate and sustainability efforts and improving ourdisclosure in this area to meet growing investor and stakeholder expectations andavoid incremental costs associated with negative brand perception.
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Metrics and targets
Moody’s has shown a commitment to disclosure of GHG inventory and climate-related strategies via CDP since 2017. Plans have been put in place to expand the scope ofemissions accounting and disclosure for our 2020 CDP response to include all relevant Scope 3 sources of emissions. We engage third-party auditors to review our GHG
inventory and implement an internal monitoring and review process to track and refine accuracy over time. Moody’s sourced Verra and Gold Standard Verified Emission
Reductions to offset 2019 emissions. We also intend to complete 100% sourcing of renewable energy in 2020, as well as formally publish verified targets aligned with the
Science Based Targets initiative. These targets ensure that our direct operations align with an emissions trajectory of 1.5 degrees Celsius and that net-zero emissions areachieved no later than 2050. The most significant contribution to our emissions footprint is the Scope 3 category of Purchased Goods and Services. We introduced bestpractice accounting methodologies in 2020 to estimate our emissions from this category, with bold plans underway for ambitious target setting and supplier engagement
approaches to reduce these emissions. Our 2020 CDP response and science-based targets commitment will further detail our metrics and targets.
Energy consumption and site information														Total consumption

Diesel380 gallons

LPG

88,383 kilowatt-hours (kWh)Natural gas

13,754 million British
Thermal Units (MMBtu)

Electricity

28,269,677 kWh

Steam140,821 kWh

Chilled water

1,468,565 ton-hours

Electricity				Square footage (in millions)# of Moody’s sites

20

30
35.8

20

Calculation
methodology 13.8
change

10
2017

2018

Moody’s 2019 Corporate Social Responsibility Report

2019

2017

3.5

120

31.6

2018

2019

# OF MOODY’S SITES

30

28.3

THOUSANDS OF MMBTU

31.4

Moody’s sites		

40

Since 2018

30.6

3,020,801 kWh(11% of total)

Natural gas				

–10%

40

11%

100
80

101

102

2.14

2.22

103

3.0

2.33

2.5
2.0

60
40

1.5
’17

’18

’19

SQUARE FOOTAGEMILLIONS OF KWH

50

11+89+J

Renewable energy use

Energy type

1.0

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GHG emissions (in metric tons of carbon dioxide equivalent)												Scope 11

Scope 2: market-based1

Scope 31

Metric tons of carbon dioxide
equivalent (tCO2e)

tCO2e

tCO2e

25 K

30 K

2,480

2,500

20 K

2,000
1,569

1,500

15 K

15 K

10 K

500

5K

5K

0

0

10 K

157

’18

’19

’17

Gas

Reference

CO2

IPCC Fifth Assessment Report (AR5 - 100 year)

CH4

IPCC Fifth Assessment Report (AR5 - 100 year)

N2O

IPCC Fifth Assessment Report (AR5 - 100 year)’18

18,568businesstravel

20 K

15,6901,000’17Business travel

24,17325 K
16,916

10,561

0

29,528’19’1715,388businesstravel

10,960employeecommuting

7,841

’18

8,785
employeecommuting’19

86+9+21JtCO2e

Air travel: 13,545.59
Hotel stays: 1,538.14
Car rentals: 231.16
US black car: 40.99
UK black car: 18.93
Rail travel: 12.98

Scope 1 and 2 emissions were calculated in accordance with the World Resources Institute/World
Business Council for Sustainable Development GHG Protocol Corporate Accounting and ReportingStandard. Scope 3 emissions were calculated in accordance with the World Resources Institute/World
Business Council for Sustainable Development Corporate Value Chain (Scope 3) Accounting andReporting Standard.

1. Figures have been rounded; see Moody’s corresponding CDP report for full data. 2019 emissions reporting includes employees from Moody’s Analytics Knowledge Services up to the date of completed sale of that business.

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Next steps
Moody’s understands that resiliency and strategy building for climate-related risks and opportunities is an iterative process. We intend to expand the analysis scope tocover additional scenarios in future years, such as the application of a fully detailed scenario for 1.5 degrees Celsius when it becomes available. As scenario narratives
continue to advance, we will expand risk coverage and increase the granularity of assessment. The evolution of global emissions and the scenario signposts will bemonitored to help us ensure that the climate and emissions strategy adequately mitigates risks and continues to respond to market calls for increased ESG products.
Moody’s will continue to strive for ambitious climate action through our commitment to measuring, reducing, offsetting and reporting on our emissions footprint.

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Reporting Frameworks“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995
Certain statements contained in this release are forward-looking statements andare based on future expectations, plans and prospects for the business and operationsof Moody’s Corporation (the “Company”) that involve a number of risks anduncertainties. Such statements may include, among other words, “believe”, “expect”,“anticipate”, “intend”, “plan”, “will”, “predict”, “potential”, “continue”, “strategy”,“aspire”, “target”, “forecast”, “project”, “estimate”, “should”, “could”, “may” and similar
expressions or words and variations thereof that convey the prospective nature of
events or outcomes generally indicative of forward-looking statements. The forwardlooking statements and other information in this release are made as of the datehereof and the Company undertakes no obligation (nor does it intend) to publicly
supplement, update or revise such statements on a going-forward basis, whether asa result of subsequent developments, changed expectations or otherwise, except
as required by applicable law or regulation. In connection with the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995, the Company
is identifying examples of factors, risks and uncertainties that could cause actual
results to differ, perhaps materially, from those indicated by these forward-looking
statements. Those factors, risks and uncertainties include, but are not limited to,the impact of COVID-19 on volatility in the U.S. and world financial markets, on
general economic conditions and GDP growth in the U.S. and worldwide, andon the Company’s own operations and personnel. Many other factors could cause
actual results to differ from Moody’s outlook, including credit market disruptions or
economic slowdowns, which could affect the volume of debt and other securities
issued in domestic and/or global capital markets; other matters that could affectthe volume of debt and other securities issued in domestic and/or global capital
markets, including regulation, credit quality concerns, changes in interest rates andother volatility in the financial markets such as that due to uncertainty as companies
transition away from LIBOR and Brexit; the level of merger and acquisition activity in
the U.S. and abroad; the uncertain effectiveness and possible collateral consequencesof U.S. and foreign government actions affecting credit markets, international tradeand economic policy, including those related to tariffs and trade barriers; concerns in
the marketplace affecting our credibility or otherwise affecting market perceptionsof the integrity or utility of independent credit agency ratings; the introduction ofcompeting products or technologies by other companies; pricing pressure fromcompetitors and/or customers; the level of success of new product development andglobal expansion; the impact of regulation as an NRSRO, the potential for new U.S.,
state and local legislation and regulations, including provisions in the Dodd-Frank
Moody’s 2019 Corporate Social Responsibility Report

Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) and regulations
resulting from Dodd-Frank; the potential for increased competition and regulation in
the EU and other foreign jurisdictions; exposure to litigation related to MIS’s rating
opinions, as well as any other litigation, government and regulatory proceedings,
investigations and inquiries to which the Company may be subject from time totime; provisions in the Dodd-Frank legislation modifying the pleading standards,
and EU regulations modifying the liability standards, applicable to credit rating
agencies in a manner adverse to credit rating agencies; provisions of EU regulations
imposing additional procedural and substantive requirements on the pricing ofservices and the expansion of supervisory remit to include non-EU ratings used forregulatory purposes; the possible loss of key employees; failures or malfunctionsof our operations and infrastructure; any vulnerabilities to cyber threats or othercybersecurity concerns; the outcome of any review by controlling tax authoritiesof the Company’s global tax planning initiatives; exposure to potential criminal
sanctions or civil remedies if the Company fails to comply with foreign and U.S. laws
and regulations that are applicable in the jurisdictions in which the Company operates,
including data protection and privacy laws, sanctions laws, anti-corruption laws,
and local laws prohibiting corrupt payments to government officials; the impact ofmergers, acquisitions or other business combinations and the ability of the Company
to successfully integrate such acquired businesses; currency and foreign exchange
volatility; the level of future cash flows; the levels of capital investments; and a decline
in the demand for credit risk management tools by financial institutions. These
factors, risks and uncertainties as well as other risks and uncertainties that could
cause Moody’s actual results to differ materially from those contemplated, expressed,
projected, anticipated or implied in the forward-looking statements are currently, or in
the future could be, amplified by the COVID-19 outbreak and are described in greater
detail under “Risk Factors” in Part I, Item 1A of the Company’s annual report on Form
10-K for the year ended December 31, 2019, and in other filings made by the Company
from time to time with the SEC or in materials incorporated herein or therein.
Stockholders and investors are cautioned that the occurrence of any of these factors,
risks and uncertainties may cause the Company’s actual results to differ materiallyfrom those contemplated, expressed, projected, anticipated or implied in the forwardlooking statements, which could have a material and adverse effect on the Company’sbusiness, results of operations and financial condition. New factors may emerge fromtime to time, and it is not possible for the Company to predict new factors, nor can
the Company assess the potential effect of any new factors on it.
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About the information in this report
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 thisreport 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 thisreport 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, andthe 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 thosepotential 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.

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Verification opinion
Page 1 of 3

VERIFICATION OPINION
GREENHOUSE GAS EMISSIONS
To: Moody’s Corporation
APEX Companies LLC, (Apex) was engaged to conduct an independent verification of the greenhouse gas (GHG)
emissions reported by Moody’s Corporation (Moody’s) for the period stated below. This Verification Opinion applies
to the related information included within the scope of work described below.
The determination of the GHG emissions is the sole responsibility of Moody’s. Moody’s is responsible for the
preparation and fair presentation of the GHG emissions statement in accordance with the criteria. Apex’s sole
responsibility was to provide independent verification opinion on the accuracy of the GHG emissions reported, and on
the underlying systems and processes used to collect, analyze and review the information. Apex is responsible forexpressing an opinion on the GHG statement based on the verification. Verification activities applied in a limited levelof assurance verification are less extensive in nature, timing and extent than in a reasonable level of assurance
verification.
Boundaries of the reporting company GHG emissions covered by the verification:

Operational Control

Worldwide

Types of GHGs: CO2, N2O, CH4, HFCs, CFCs, HCFCs
GHG Emissions Statement:

Scope 1: 1,569 metric tons of CO2 equivalent

Scope 2 (Location-Based): 11,210 metric tons of CO2 equivalent

Scope 2 (Market-Based): 10,561 metric tons of CO2 equivalent

Scope 3:Business Travel:15,388 metric tons of CO2 equivalent
Employee Commuting: 8,785 metric tons of CO2 equivalent

Data and information supporting the Scope 1, Scope 2, and Scope 3 GHG emissions assertion were historical innature for the most part. In some cases, data were estimated rather than historical in nature.
Period covered by GHG emissions verification:January 1, 2019 to December 31, 2019

Criteria against which verification conducted:
World Resources Institute (WRI)/World Business Council for Sustainable Development (WBCSD)
Greenhouse Gas Protocol, Corporate Accounting and Reporting Standard



WRI/WBCSD Corporate Value Chain (Scope 3) Accounting and Reporting Standard

Reference Standard:

ISO 14064-3: Greenhouse gases -- Part 3: Specification with guidance for the validation and verification ofgreenhouse gas statements

Verification opinion
Page 2 of 3

Page 2

Level of Assurance and Qualifications:

LimitedThis verification used a materiality threshold of 5% for aggregate errors in sampled data for each of theabove indicators.



Global Warming Potentials used to calculate refrigerant emissions were not consistent with those used forthe remainder of the inventory.

GHG Verification Methodology:
Evidence-gathering procedures included but were not limited to:Interviews with relevant personnel of Moody’s and their consultant;

Review of documentary evidence produced by Moody’s;Review of Moody’s data and information systems and methodology for collection, aggregation, analysis andreview of information used to determine GHG emissions; and

Audit of sample of data used by Moody’s to determine GHG emissions.

Verification Opinion:
Based on the process and procedures conducted, there is no evidence that the GHG emissions statement shown
above:
is not materially correct and is not a fair representation of the GHG emissions data and information; and

has not been prepared in accordance with the WRI/WBCSD GHG Protocol Corporate Accounting andReporting Standard (Scope 1 and 2), and WRI/WBCSD Greenhouse Gas Protocol Corporate Value Chain
Accounting and Reporting Standard (Scope 3).

It is our opinion that Moody’s has established appropriate systems for the collection, aggregation and analysis ofquantitative data for determination of these GHG emissions for the stated period and boundaries.
Statement of independence, impartiality and competenceApex is an independent professional services company that specializes in Health, Safety, Social and Environmental
management services including assurance with over 30 years history in providing these services.
No member of the verification team has a business relationship with Moody’s, its Directors or Managers beyond that
required of this assignment. We conducted this verification independently and to our knowledge there has been noconflict of interest.
Apex has implemented a Code of Ethics across the business to maintain high ethical standards among staff in their
day-to-day business activities.
The verification team has extensive experience in conducting assurance over environmental, social, ethical andhealth and safety information, systems and processes, has over 20 years combined experience in this field and an
excellent understanding of Apex’s standard methodology for the verification of greenhouse gas emissions data.

Verification opinion
Page 3 of 3

Page
2 3
Page

Level of Assurance and Qualifications:
Attestation:•

Limited•This verification used a materiality threshold of 5% for aggregate errors in sampled data for each of theabove indicators.

•

Global Warming Potentials used to calculate refrigerant emissions were not consistent with those used forthe remainder of the inventory.

GHG Verification
Methodology:
Trevor
A. Donaghu,
Lead VerifierDavid Reilly, Technical Reviewer

ProgramManager procedures included but were not limited to: Principal Consultant
Evidence-gathering
APEX Companies, LLC
APEX Companies, LLC•
Interviews with relevant personnel of Moody’s and their consultant;Pleasant Hill, California
Santa Ana, California•
Review of documentary evidence produced by Moody’s;
April 13, 2020•
Review of Moody’s data and information systems and methodology for collection, aggregation, analysis andreview of information used to determine GHG emissions; and•Auditstatement,of sampleincludingof data theusedby Moody’s
to determine
GHG emissions.
This verification
opinionexpressed
herein, is provided
to Moody’s Corporation and is solely for the benefitof Moody’s Corporation in accordance with the terms of our agreement. We consent to the release of this statement by you to CDP
in order to satisfy the terms of CDP disclosure requirements but without accepting or assuming any responsibility or liability on our
Verification Opinion:
part to CDP or to any other party who may have access to this statement.
Based on the process and procedures conducted, there is no evidence that the GHG emissions statement shown
above:•

is not materially correct and is not a fair representation of the GHG emissions data and information; and•has not been prepared in accordance with the WRI/WBCSD GHG Protocol Corporate Accounting andReporting Standard (Scope 1 and 2), and WRI/WBCSD Greenhouse Gas Protocol Corporate Value Chain
Accounting and Reporting Standard (Scope 3).

It is our opinion that Moody’s has established appropriate systems for the collection, aggregation and analysis ofquantitative data for determination of these GHG emissions for the stated period and boundaries.
Statement of independence, impartiality and competenceApex is an independent professional services company that specializes in Health, Safety, Social and Environmental
management services including assurance with over 30 years history in providing these services.
No member of the verification team has a business relationship with Moody’s, its Directors or Managers beyond that
required of this assignment. We conducted this verification independently and to our knowledge there has been noconflict of interest.
Apex has implemented a Code of Ethics across the business to maintain high ethical standards among staff in their
day-to-day business activities.
The verification team has extensive experience in conducting assurance over environmental, social, ethical andhealth and safety information, systems and processes, has over 20 years combined experience in this field and an
excellent understanding of Apex’s standard methodology for the verification of greenhouse gas emissions data.

Sustainability Rating Certificate
Page 1 of 2

SOLICITED SUSTAINABILITY RATING – March 2020

Sustainability Rating Certificate for Moody’s
Moody’s has solicited Vigeo Eiris to conduct an independent ESG and sustainability rating.
As of March 2020, Moody’s Corp1. (“Moody’s”) obtains an A2+ rating, based on an overall score of 53/100. Moody’sranks within the top 10% of all companies rated by Vigeo Eiris worldwide (4,859 in total 2) and 1st out of 58 within theBusiness Support Services North American sector.
Moody’s displays overall strong willingness and capacity to integrate ESG factors into its strategy, operations andrisk management, with robust to advanced performance on issues related to legal security, operational efficiency andreputation while limited although above sector-average results are seen on drivers that could impact human capitalcohesion.

+

A2+

Rank in Sector

1/58

ESG Reporting Rate

87%

Rank in Region

5/1252

Sector average

61%

Rank in Universe

268/4859

ESG AND RISKS MANAGEMENT PERFORMANCE (../100)

Environment
Social26
25

Governance

61
44

Operational
efficiency

46
43 51

42
Reputation

66

66
58
36
57

Human Capital

41
31

Legal Security

59

24
46
63

Sector average
performance
Company
performance

KEY TAKEAWAYS

Impacts: Moody’s does not report on quantified objectives to reduce its climate footprint. KPIs demonstrating thecompany’ social impacts reveal mixed trends in terms of diversity and training, while health and safety metrics are
not monitored at group level. Moody’s seems to have initiated a transition towards integrating sustainability,
compliance and cyber risks within its service offer.
Risks: Moody’s risk management system appears solid, covering most of its material sustainability risks. The
company displays robust to advanced capacity to safeguard and enhance its legal security, reputation, andoperational efficiency. Mitigation of material factors that could impact human capital cohesion receives a limited(although above-average) level of assurance.
Management: Moody’s appears to integrate sustainability factors into its strategy and operations, although its
approach does not appear to be supported by quantified objectives. Robust means and processes address the mostmaterial challenges. Moody’s faces isolated controversies (four) and communicates on some corrective actions
imposed to the Group in the frame of settlements.

1 Moody’s Investor Services, a subsidiary of Moody’s Corp., is a shareholder of Vigeo Eiris
2 As of 28/02/2020

vigeo-eiris.com
1Sustainability Rating Certificate
Page 2 of 2

SOLICITED SUSTAINABILITY RATING – March 2020

This issuer-solicited sustainability rating was produced using research about Moody’s from Vigeo Eiris’ database as
well as interviews with 11 Company’s managers and directors and one employee representative, conducted from04/02/2020 to 11/02/2020.
Vigeo Eiris’ assessment report was delivered on 25/03/2020, covering 6 domains, 17 sustainability drivers and 29
impact indicators. It is structured around 3 key pillars:
1. The social and environmental impacts of Moody’s products and services, its strategy for the future, and its
ability to invest in and create sustainable value;
2. Moody’s capacity to identify and mitigate its ESG risks and to preserve and increase the value of its strategic
assets (including reputation, human capital, operational & organisational efficiency and legal security);
3. The strategic and operational integration of social responsibility topics in Moody’s governance, operations
and reporting, including the balance and dynamics of stakeholder relationships.
Vigeo Eiris’ analysis aims to inform investors, asset managers and other relevant stakeholders of the nature,weighting and level of integration of ESG factors by the Company, as well as its ability to identify and mitigate relatedrisks.
Moody's is an integrated risk-assessment firm with two main activities: Moody's Investors Service (MIS) publishes
credit ratings and provides assessment services on debt obligations and entities that issue such obligations(corporate and governmental obligations, structured finance securities, etc.) while Moody's Analytics (MA) provides
specialized research, data, software and professional services to support financial analysis and risk management
activities of institutional customers. Since 2017, Moody’s has acquired several research and data providers,
including Bureau van Dijk (specialized in company information), Vigeo Eiris (sustainability research) and Four
Twenty-Seven (climate risk research), thereby expanding its research, products and services to new risk classes,
considered adjacent to credit risk.
Paris, 26 March 2020
Hélène Drouet
Sustainability Rating Product Manager

Muriel Caton
Senior advisor, sustainable finance strategy

Disclaimer & Copyright
The Company gave us access to all documents and interviewees that we requested as part of our analysis process. We have a reasonable level of assurance about
the reliability of information provided by the company. We have conducted this analysis in line with our standard methodological framework and Code of Conduct.
We have not been subject to any pressure or proposal which could affect our independence or alter the integrity of our statements or opinions. We have no personal
interest with the issuer, its executives or its activities.
Vigeo Eiris provides its clients with information and/or analyses or opinion on factual, quantitative or statistical, managerial, economic, financial, governance, social, or
technical data, in relation to companies, brands, products or services, assessed individually or with respect to sectors, regions, stakeholders or specific themes. Vigeo
Eiris is committed to making its best efforts when collecting, organising, consolidating, formatting, making available and/or delivering the aforementioned information,
analyses and/or opinion to its clients.
Although Vigeo Eiris only uses publicly available information, we cannot guarantee the accuracy or completeness of this information. The above elements (information,
indicators, analyses, scores, and opinion) do not include or imply any approval or disapproval from Vigeo Eiris, its executive officers or employees. These elements
do not represent in any way a guarantee, or reference of legal, moral, philosophical, ethical or religious nature, supporting or opposing any investment or divestment
decision, or any standpoint or opinion expressed in favour of, or against companies, products, services, sectors or regions directly or indirectly mentioned in Vigeo
Eiris’ deliverables. Our deliverables are not, and should not, be considered as a form of financial advice or recommendation. No investment or divestment decision
should be attributed to the information or opinion provided by Vigeo Eiris. Our products and services must only be considered as one of the many elements related to
the financial decision-making process.
Vigeo Eiris, its methodology, brand, and employees shall under no circumstances be held responsible for any kind of consequence (including economic, financial or
legal) derived from the interpretation of its information, analyses, opinion, scores and indicators. The terms of use of our products and services and their impacts stemfrom the sole responsibility of their users.
vigeo-eiris.com
2moodys.com/csr