Climate change is one of the most urgent global issues of our time.
We support the efforts toward more consistent and comparable disclosures, publishing our TCFD report on an annual basis, issuing our Decarbonization Plan with our targets and roadmap that reaffirm our commitment to net zero by 2040, and submitting this Plan to a stockholder advisory vote at our 2021 Annual Meeting of Stockholders.
Our climate targets and progress
In 2021, we accelerated our ambition to reach net-zero emissions by 2040, a decade earlier than our previous commitment to the UNGC Business Ambition for 1.5 °C. We took significant steps towards this goal — we set a long-term net-zero target, progressed on our near-term net-zero targets to reduce GHG emissions, continued to procure 100% renewable electricity and to offset the remainder of our emissions from our operations, business travel and employee commuting.
Near-term net-zero targets2
50%
reduction in absolute Scope 1 and Scope 2 GHG emissions by 20301
Exceeding target
OUR ACTIONS
100% renewable electricity for our global operations
Workplace of the Future
Implemented projects to promote energy efficiency
Shadow price on carbon to evaluate new office leases
15%
reduction in Scope 3 GHG emissions from fuel and energy-related activities, business travel and employee commuting by 20251
Exceeding target
OUR ACTIONS
Internal carbon price on business travel
Lower emissions options for travel when possible
100% renewable electricity for our global operations
Workplace of the Future
60%
of our suppliers by spend covering purchased goods and services and capital goods to have science-based targets by 2025
In progress
OUR ACTIONS
Webinars for suppliers on climate
Targeted engagements
Partnership with CDP
Implemented projects to promote energy efficiency
Shadow price on carbon to evaluate new office leases
100%
renewable electricity3 in our global operations
Achieving target
OUR ACTIONS
Procured renewable energy and purchased energy attribute certificates
Carbon emissions offset from operations, employee commuting and business travel
Achieving target
OUR ACTIONS
Support certified offset projects that align with UN SDGs
1 From a 2019 base year. 2 Our progress on science-based targets was retroactively recalculated due to improved access to vendor spend data and M&A activity. Consequently, our targets were re-submitted to the Science Based Targets initiative (SBTi) and coverage was re-validated. 3 Renewable electricity percentage is reported based on originally verified electricity consumption values because it is not possible to buy renewable electricity retroactively due to M&A activity; therefore, the 2020 restated verification opinion shows a decrease in percentage renewable electricity.
Our carbon offset projects are selected based on the geographies where we operate and alignment with SDGs and co-benefits; projects are also listed on reputable registries that guarantee third-party verifications. In 2021, we continued our climate project engagements with VERRA and Gold Standard to support our emissions offsets. These global engagements included wind, forestation, clean cookstove and borehole-related initiatives.
Wind projects Costa Rica, India
Forestation Canada
Clean cookstoves Kenya, India
Boreholes Malawi
Greenhouse gas emissions performance
Scope 1 (direct)
Scope 2 (indirect – market-based)
Scope 3
Breakdown of 2021 GHG emissions
2 Scope 2 (location-based) emissions were as follows: 2021 - 6,878 mtCO2e; 2020 - 8,767 mtCO2e; and 2019 - 14,035 mtCO2e. 3 Business travel and employee commuting emissions were restated to include well-to-wheel emissions to ensure alignment to the SBTi Target Validation Protocol and Transport Guidance.
Updating our Environmental Sustainability Policy
In 2021, we updated our Environmental Sustainability Policy to reflect our latest efforts to enhance our environmental performance and reach net-zero by 2040. The updated policy describes our goals and initiatives to reduce emissions and other environmental impacts, including the introduction of waste targets, and was reviewed and approved by our Board of Directors.
Reducing the environmental impact of our offices
We are making our offices more environmentally friendly by purchasing sustainable materials, improving waste management, leveraging renewable electricity, limiting business travel and promoting sustainable commuting options. As we return to our offices, we are implementing a number of changes to encourage our employees to reduce, reuse and recycle waste. By 2025, we aim to:
Reduce office paper by 50% from 2019 levels through initiatives such as reduction of individual printers and digitization of daily business activities;
Implement centralized waste collection in offices with more than 50 full-time employees; and
Phase out single-use plastics from our global operations, where possible.
Waste from office operations
In metric tons
Energy intensity ratio1
In kWh/sq ft
Reduction of office paper from 2019 levels2
1 Emissions include all offices under financial control. Square footage includes Moody's managed offices and excludes shared-space offices due to data limitations. The impact is expected to be not material, with emissions in shared-space offices accounting for approximately 0.6% of total GHG inventory in 2021. 2 Represents our offices in the U.S. We are working to collect actual data globally.
Partnering for climate impact
We progress climate action through several partnerships with leading organizations and campaigns, including as signatories of the Principles for Responsible Investment and participants in the UN Global Compact Action Platform on Climate Ambition.
In 2021 we received an ‘A’ score from CDP on climate action for the second consecutive year and were featured in CDP's 2021 Stories of Change. The top score recognizes us as one of a small number of high-performing companies out of nearly 12,000 that are leading actions to cut emissions, mitigate climate risks and develop the low-carbon economy.
As part of Glasgow Financial Alliance for Net Zero, we are a founding member of the Net Zero Financial Services Provider Alliance — a global group of 23 financial service providers committed to supporting the goal of global net-zero greenhouse emissions by 2050 or sooner. We are committed to aligning our relevant products and services to this goal, in addition to reducing our own operational emissions.
In 2021, we participated in the road test for Science Based Targets initiative Net-Zero Standard, the objective of which is to provide a standardized and robust approach for corporates to set net-zero target that are aligned with climate science. Our near-term targets and long-term net-zero target have been validated by the SBTi.
We were one of the first financial firms to endorse and report based on recommendations from the Task Force on Climate-related Financial Disclosures, and our Chief Credit Officer has supported the development of these decision-useful recommendations for investors as a TCFD Task Force Member since 2016.
We joined the Taskforce on Nature-related Financial Disclosures, a new industry-led initiative working to significantly shift global financial flows from nature-negative to nature-positive outcomes. As a TNFD member, we will join leading organizations across key sectors and geographies to develop a reporting framework and act on evolving nature-related risks.
We are a member of the United Nations Global CompactCFO Taskforce for the Sustainable Development Goals, which aims to advance the SDGs through corporate strategy and investments. In 2021, we joined the UNGC’s Action Platform on Climate Ambition and will become sponsors of UNGC Climate in 2022. As an active UNGC participant and a signatory to UNGC’s Business Ambition for 1.5°C, we affirm our support annually for Principle 7: “Businesses should support a precautionary approach to environmental challenges.”
Note: 2019 and 2020 GHG emissions were retroactively recalculated due to improved access to vendor spend data and M&A activity. Consequently, our science-based targets for reducing our GHG emissions were re-submitted to the Science Based Targets initiative (SBTi) and coverage was re-validated.
