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 2021 Assurance Statement: Human Capital Data LRQA LRQA Table 1. Summary of Moody's Key Data for CY 2021: LRQA Independent Assurance Statement Relating to Moody's Assertion for the Calendar Year 2021 This Assurance Statement has been prepared for Moody's Corporation (Moody's) in accordance with our contract. Terms of Engagement LRQA was commissioned by Moody's to provide independent assurance of its social metrics for the calendar year 2021 (CY 2021) against the assurance criteria below to a limited level of assurance and materiality of the professional judgement of the verifier using LRQA's verification procedure. LRQA's verification procedure is based on current best practise and is in accordance with ISAE 3000. Our assurance engagement covered Moody's employees under its operational control and specifically the following requirements: • Verifying conformance with: Moody's reporting methodologies for the selected datasets. Evaluating the accuracy and reliability of data and information for only the selected indicators listed below: Global gender data as reported within Moody's CY 2021 10-K, specifically female officers and managers; and U.S race and ethnicity data stated within Moody's CY 2021 EEO-1 Report as published in Moody's Stakeholder Sustainability Report, specifically Black or African American employees. LRQA's responsibility is only to Moody's. LRQA disclaims any liability or responsibility to others as explained in the end footnote. Moody's responsibility is for collecting, aggregating, analysing and presenting all the data and information within the Assertion and for maintaining effective internal controls over the systems from which the Assertion is derived. Ultimately, the Assertion has been approved by, and remains the responsibility of Moody's. LRQA's Opinion Based on LRQA's approach nothing has come to our attention that would cause us to believe that Moody's has not, in all material respects: . • Met the requirements of the criteria listed above; and Disclosed accurate and reliable demographic data and information as summarized in Table 1 below. The opinion expressed is formed on the basis of a limited level of assurance¹ and at the materiality of the professional judgement of the verifier. 1. The extent of evidence-gathering for a limited assurance engagement is less than for a reasonable assurance engagement. Limited assurance engagements focus on aggregated data rather than physically checking source data at sites. Consequently, the level of assurance obtained in a limited assurance engagement is lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. Metric Black or African American employees²,3 Female officers or managers Absolute Boundary Count¹ Total Absolute Count¹ Percent of Employees U.S. 320 4,833 6.6% Global 2,041 5,678 36% Note 1: Absolute counts are derived from the number of active employees on December 31, 2021. Note 2: As defined in 2021 U.S. EEO-1 Component Booklet, Appendix D. Note 3: Percent of employees was calculated using absolute total count of employees in the U.S. Note 4: Percent of employees is calculated using absolute total count of global employees in officer and manager roles: executives, senior managers, mid-level managers and first-level managers. LRQA's Approach LRQA's assurance engagements are carried out in accordance with our verification procedure. The following tasks were undertaken as part of the evidence gathering process for this assurance engagement: • • interviewing relevant employees of the organization responsible for managing social data and records; and assessing Moody's data management systems to confirm they are designed to prevent significant errors, omissions or mis-statements. LRQA's Standards, Competence, and Independence LRQA implements and maintains a comprehensive management system that meets accreditation requirements for ISO/IEC 17021 Conformity assessment - Requirements for bodies providing audit and certification of management systems that are at least as demanding as the requirements of the International Standard on Quality Control 1 and comply with the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants. LRQA ensures the selection of appropriately qualified individuals based on their qualifications, training and experience. The outcome of all verification and certification assessments is then internally reviewed by senior management to ensure that the approach applied is rigorous and transparent. Signed Kate Pagan Kate Pagan LRQA Lead Verifier On behalf of LRQA, 1330 Enclave Parkway, Suite 200 Houston, TX 77077 LRQA reference: UQA00002158/5401274 Dated: 08 September 2022 LRQA Group Limited, its affiliates and subsidiaries, and their respective officers, employees or agents are, individually and collectively, referred to in this clause as 'LRQA'. LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or howsoever provided, unless that person has signed a contract with the relevant LRQA entity for the provision of this information or advice and in that case any responsibility or liability is exclusively on the terms and conditions set out in that contract. The English version of this Assurance Statement is the only valid version. LRQA assumes no responsibility for versions translated into other languages. This Assurance Statement is only valid when published with the Assertion to which it refers. It may only be reproduced in its entirety. Copyright © LRQA, 2022. Page 1 of 2 See the assurance statement for 2021 environmental data in Moody's 2021 TCFD report, p. 34 Page 2 of 2 Moody's 2021 Stakeholder Sustainability Report 110
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