Moody's Sustainability / President and CEO Message

Since we issued our last report, the world has continued to experience a rapid rate of change with exponential risk. This backdrop has caused our customers to seek our guidance to help them navigate an uncertain landscape with increasingly interconnected risks.

We believe our commitment to supporting sustainable and inclusive economies and communities is more important now than ever. In fact, responsible decision-making is part of the fabric of our company and sustainability goals are embedded as core objectives in our strategic roadmap. For a knowledge company like Moody’s, sustainability is made possible by our people. Together, we’re adapting to meet the evolving needs of our customers, while also helping more companies assess a range of risks. Our sustainability commitment also extends to our workplace, where we continue to focus on making Moody’s a place where people want to come and stay.

There are several achievements from 2022 that we can be proud of: We were one of the first companies to have our near- and long-term net-zero climate targets validated by the Science Based Targets initiative. Through our role as a founding member of the Net Zero Financial Services Provider Alliance and our membership of the Taskforce on Nature-related Financial Disclosures, we also played a key role in helping shape industry-wide sustainability initiatives and reporting standards.

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

Importantly, we are deeply invested in fostering a supportive and diverse workforce, while also advancing more equitable economies and communities. This year, we rolled out several new employee training and development programs, which focus on topics such as sustainability and leadership, to help empower our employees pursue their career paths. We also implemented an enhanced approach to our community engagement work that draws on our people, solutions and capital to support communities around the world. We were honored to be a founding member of the U.S. Economic Opportunity Coalition (EOC), which is focused on aligning public and private investments to accelerate inclusive, sustainable economic growth.

The EOC’s strategic objective aligns well with our Creating Opportunities for Racial Equity (CORE) program, which leverages our expertise and capabilities to support the growth of Community Development Financial Institutions and Minority Depository Institutions which play a vital role in our economy.

Moody’s achievements are the result of the hard work, collaboration and innovation of my colleagues across the company. While we know there’s more work to do to realize a sustainable future – we have confidence in what we as a company are able to accomplish because we do it together.

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

Robert Fauber

PRESIDENT & CEO