2021 Stakeholder Sustainability Report slide image

2021 Stakeholder Sustainability Report

A MESSAGE FROM OUR PRESIDENT & CEO 2021 SUSTAINABILITY HIGHLIGHTS ABOUT MOODY'S BETTER BUSINESS BETTER LIVES BETTER SOLUTIONS APPENDIX Moody's 2021 Stakeholder Sustainability Report 36 CREATING AN ETHICAL SUPPLY CHAIN¹ We expect our vendors, suppliers, contractors and consultants to share our commitment to the highest ethical standards and operate in compliance with applicable laws, rules and regulations, including all anti-bribery and anti- corruption laws. All suppliers are asked to adhere to the standards set forth in our Supplier Code of Conduct, which was expanded in 2020 to reflect new social and environmental considerations and describes our expectations of suppliers in the areas of business integrity, labor practices, employee health and safety, diversity and inclusion and environmental stewardship. Our suppliers and other external stakeholders are encouraged to raise concerns or suspicions of violation of the Supplier Code of Conduct by contacting Moody's directly or via Moody's Integrity Hotline. For more on our reporting mechanisms, see Ethics and Integrity. In addition to these policies, 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. Our supplier agreements include language that requires suppliers to ensure there are no human rights violations in their supply chains. 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. In addition, we have put in place a clear escalation pathway to ensure we can address any major risks in an immediate and appropriate manner. Where possible, we quantify ESG risks - such as supplier diversity, science-based targets, cybersecurity and compliance with global ethical standards - and aggregate this data into an overall scorecard to track our priority vendors. To date, we have assessed 100% of our key suppliers and have not identified any high-risk suppliers. For more information on our policies regarding responsible sourcing, see Additional Resources. 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.
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