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Responsible sourcing
We are working to build a sustainable supply chain that upholds our rigorous standards and champions climate action, diversity and ethical codes of conduct. In addition to engaging our suppliers on climate and increasing our supplier diversity, we have enhanced our due diligence assessments to quantify and monitor potential ESG risks in our supply chain.
Engaging suppliers on climate
In 2021, we hosted webinars and engaged nearly 500 of our top suppliers, requesting that they participate in the annual CDP Climate Change disclosure and set their own science-based targets. With our executive leadership team, as well as through a partnership with CDP, we followed up directly with a number of our priority suppliers and reinforced our commitment to climate action and our expectations of key suppliers.
Our target
60% of Moody’s suppliers by spend covering purchased goods and services and capital goods to have science-based targets by 2025
Increasing supplier diversity1
In 2021, we added over 30 certified diverse suppliers to our network and increased our diverse supplier spend by 15% from 2020. For women-owned business, we increased our spend by 52%from 2020. However, 3% of addressable spend went to women-owned businesses, short of our 5% goal. In 2022, we are redoubling our efforts to increase supplier diversity and launched our Tier II Supplier Diversity Program, which aims to identify, track and manage the diverse spend of our top 50 suppliers.
Diverse supplier spend
Small businesses
1 Refers to Moody's Corporation and its wholly-owned subsidiaries.
Creating an ethical supply chain1
Our suppliers are held to standards sets forth in our Supplier Code of Conduct and Human Rights Statement. In addition, our Modern Slavery and Human Trafficking Statement is updated annually and describes our approach to preventing human rights violations in our workforce and supply chain.

As part of our due diligence process, we evaluate and segment all new suppliers based on criticality and risk, and we screen all key suppliers2 with Compliance Catalyst, a Moody's Analytics tool powered by the Orbis and Grid databases on private companies. We assess a broad spectrum of risks, including U.S. sanctions, modern slavery, human rights violations and environmental crimes. To date, we have assessed 100% of our key2 suppliers and have not identified any high-risk suppliers.
1 Refers to Moody's Corporation and its wholly-owned subsidiaries.
2 Key suppliers are those deemed highest criticality by Moody's in terms of regulatory impact as well as high priority software suppliers.