Materiality and stakeholder engagement



Materiality assessment

Our sustainability strategy, shaped by material nonfinancial topics most relevant to stakeholders and our business, was updated in 2022, following its initial creation in 2020. The assessment considered emerging sustainability trends, enhanced topic definitions, and analyzed the impact of each topic on our value chain, considering both upstream and downstream factors. The assessment validated our initial assumptions and topic prioritization from 2020, emphasizing business imperatives such as Business Ethics, Professional Integrity, and Risk Assessment and Management.


Materiality assessment

The inputs for the refreshed assessment included:



Topics and definitions

Board composition

Board composition

Maintaining a board with varied , experiences and tenures to balance perspectives with company knowledge.

Business ethics and professional integrity

Business ethics and professional integrity

Operating honestly, fairly, with transparency and in accordance with the law, and expecting compliance with corresponding ethical standards as outlined for employees, suppliers and contractors.

Environmental

Environmental

Analyzing risk exposure and assessing business resilience to anticipate, prepare for and respond to catastrophic weather-related events and the low-carbon transition. Reducing resource use and GHG emissions throughout our entire value chain (e.g., operations, suppliers, products and services).

Cybersecurity and data privacy

Cybersecurity and data privacy

Maintaining clear policies and practices to mitigate and respond to risks from data collection, storage and usage, and safeguarding the financial and personal data of stakeholders.

Executive compensation

Executive compensation

Providing fair and transparent compensation of executives.

Human rights

Human rights

Committing to respect human rights and understanding our responsibility to help prevent and mitigate human rights abuses.

Nature and biodiversity

Nature and biodiversity

Managing recycling efforts, waste, water consumption and other nature-related topics, such as forestation, in our operations.

Inclusion

Inclusion

Enhancing efforts to promote inclusion and champion the right of every employee to feel heard and respected.

Employee attraction and engagement

Employee attraction and engagement

Adopting a holistic approach to the employee value proposition from recruitment to engagement, including compensation and benefits, to create a positive work environment so people want to join, and choose to stay at, Moody’s.

Employee health and well-being

Employee health and well-being

Promoting a healthy and safe workplace through companywide policies and practices that help contribute to employees’ physical, mental and financial well-being.

Learning and development

Learning and development

Equipping employees with training and education opportunities to enhance business-specific, leadership and core capability skills and develop their careers.

Philanthropy and employee volunteerism

Philanthropy and employee volunteerism

Contributing to socioeconomic development and environmental causes through grants, in-kind gifts, volunteer time and related charitable activities.

Support for small and medium enterprises

Support for small and medium enterprises

Maximizing support and financial inclusion for small and medium enterprises (SMEs).



Stakeholder engagement

Our ability to execute on our sustainability strategy in a significant way requires input from all of our stakeholders. We regularly engage with a diverse set of internal and external stakeholders, including customers, employees, investors, suppliers, communities, government regulators and policy influencers. Feedback from these engagements helps us evolve and advance our sustainability strategy. We engage with these groups to keep them informed of our efforts through a variety of channels, including in-person or virtual meetings, internal employee engagement (such as well-being surveys and team conversations), customer satisfaction surveys, social media accounts and community events.