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ESG disclosures
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Climate change is a major challenge that demands action from all of us. That's why we're committed to achieving net-zero emissions by 2040 and won't let up until we get there. Our Decarbonization Plan and science-based targets are helping pave the way for real progress toward a cleaner, more sustainable future.
We continue to progress towards our long- and near-term net-zero targets validated by the Science Based Targets initiative (SBTi), as well as procure 100% renewable electricity.
Reduction in absolute Scope 1 and Scope 2
GHG emissions by 2030
* From a 2019 base year
Reduction in Scope 3 GHG emissions from fuel and energy-related activities, business travel and employee commuting by 2025
* From a 2019 base year
Of Moody's suppliers by spend covering purchased goods and services and capital goods to have science-based targets by 2025
Renewable electricity for global operations for the fourth consecutive year.
Carbon emissions offset from operations, employee commuting and business travel since 2000, when Moody's became a public company.
Long-term net-zero target
emissions reductions in Scope 1, 2 and 3 emissions by 2040
Long-term net-zero target
emissions reductions in Scope 1, 2 and 3 emissions by 2040
As part of our Decarbonization Plan, we've introduced several initiatives designed to promote energy efficient practices in the workplace, reduce our carbon emissions and offset our emissions from operations, business travel, and employee commuting.
In 2023, Moody’s received an “A” score from the CDP for the fourth year in a row, recognizing our climate action efforts and commitment to achieve net-zero emissions by 2040.
Moody’s became one of the first companies to have its near- and long-term net-zero emissions targets validated by the SBTi and contributed to the Financial Net-Zero Expert Advisory Group.
Moody's is a TNFD member and contributes to defining nature-related risk measurements, informing customers about risk exposure and management. We published a TNFD Statement on our environmental impacts.
We are committed to offsetting our emissions from operations, business travel and employee commuting annually. In 2023, we continued to offset our carbon footprint since 2000, when we became a public company. Our carbon offset projects are selected based on the geographies where we operate and align with the Sustainable Development Goals (SDGs) and co-benefits. The projects are also listed on reputable registries that guarantee third-party verifications. In 2023, our global project engagements included:
Solar project
India
Wind project
India and China
Forestation
Brazil
Forestation
U.S.
Boreholes
Uganda
Cookstoves
Ghana and Uganda
At Moody’s, we understand the importance of sharing data in a way that’s reliable and responsible. To ensure we do the same in our climate-related reporting, we have enhanced our data governance methodologies, implemented an environmental management system, and engaged third-party verifiers to review our greenhouse gas (GHG) inventory. We also appointed an ESG Controller to meet increasing stakeholder expectations for transparent and accurate regulatory ESG reporting.
When selecting and renovating office spaces, we prioritize energy-efficient buildings and the use of sustainable materials. In 2023, we initiated renovation projects in Paris, New York, Tokyo and Milan – each with a unique sustainability strategy. In Paris, we used locally grown flax for fabric panels, installed carpets with 78% recycled content, and used light-colored furniture to enhance lighting efficiency. For the renovation of our New York headquarters, we collaborated with Green Standards to recycle, donate, or sell furniture.
In addition, Moody’s set a goal for 100% of employees to be assigned to energy-efficient buildings that are certified LEED, BREEAM or a local equivalent, by 2034. Currently, 63% of our employee population is assigned to a building that meets these standards.
We prioritize sustainable processes and management practices across our operations and value chain, including recycling, energy reduction, and sustainable workplace initiatives. Our Environmental Sustainability Policy reflects our efforts to enhance overall environmental performance, reach net-zero emissions by 2040, empower employees to pursue eco-friendly practices, and support environmental projects.
In 2022, we launched a companywide plan to align our global offices with our Environmental Sustainability Policy. By the end of 2023, 60% of our offices, based on headcount, initiated the implementation plan to align with the policy. The plan focuses on enhancing waste management, material efficiency, and reducing GHG emissions through energy efficiency initiatives. It’s supported by employee education and awareness campaigns for sustainable practices.
1 2020 – 2021 GHG emissions were retroactively recalculated due to improved access to vendor spend data and Moody’s application of enhanced methodologies for emissions related to Purchased Goods and Services (Scope 3, Category 1), Capital Goods (Scope 3, Category 2) and Fuel and Energy-Related Activities (Scope 3, Category 3).
2 Scope 2 location-based emissions were as follows: 2023 – 6,987 mtCO2e, 2022 – 7,696 mtCO2e, 2021 – 6,878 mtCO2e, 2020 – 8,767 mtCO2e.
3 Other includes fuel and energy-related activities (2023 – 160 mtCO2e, 2022 – 200 mtCO2e, 2021 – 230 mtCO2e, 2020 – 590 mtCO2e) and waste generated in operations (2023 – 110 mtCO2e, 2022 – 81 mtCO2e, 2021 – 72 mtCO2e, 2020 – 68 mtCO2e).
4 Other includes fuel and energy-related activities (0.12%) and waste generated in operations (0.08%).
1 Represents our offices in the U.S. and the U.K. and excludes shared-space offices due to data limitations. The data accounts for approximately 31% of global operations. 2020 and 2021 metrics were restated as a result of improved access to purchased paper data in the U.K. Efforts are in place to increase data coverage globally.
kWh/sq ft
1 Energy activity data includes all offices under financial control. Square footage includes Moody’s managed offices and excludes shared-space offices due to data limitations. The impact is expected to be not material, with emissions in shared-space offices accounting for approximately 0.4% of total GHG inventory in 2023.
1 Actual waste represented 37% of reported volume in 2023. The reported figure represents an extrapolation to cover the full property portfolio.
by
2025
Achieve a 15% reduction in Scope 3 GHG emissions from fuel and energy-related activities, business travel and employee commuting.
Ensure that 60% of our suppliers by spend, covering purchased goods and services and capital goods, have science-based targets.
Maintain office paper usage below 50% of 2019 levels by reducing individual printers and digitizing daily business activities.
Implement centralized waste collection and recycling in offices with more than 50 full-time employees.
Phase out single-use plastics and other single-use items from our global operations, where possible.
Phase out coffee machines with capsules or sachets and/or implement recycling of this packaging, where possible.
by
2030
Reach a 50% reduction in absolute Scope 1 and Scope 2 GHG emissions.
by
2034
Attain 100% of Moody’s employees assigned to office spaces that are certified LEED, BREEAM, or a local equivalent.
by
2040
Reach a 90% reduction in Scope 1, 2 and 3 emissions.