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 34 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 Engaging suppliers to reduce their own emissions is a key element in our strategy to achieve net-zero emissions. In our Decarbonization Plan, we set a target for 60% of our suppliers by spend covering purchased goods and services and capital goods to have science-based targets by 2025. As of year-end 2021, we increased our spend to 28%. We continue to seek opportunities to engage with and encourage existing suppliers to set science-based targets. Our updated Supplier Code of Conduct encourages suppliers to disclose their carbon footprint and set science- based targets, and we are working to update key supplier contracts with the requirement to disclose such targets. In addition, we engage suppliers through multiple channels to emphasize the importance of carbon disclosures and transparency. In 2021, we hosted webinars for 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. All of our sourcing managers receive training on responsible sourcing. This training is designed to educate our buyers on social and environmental issues within the supply chain, with a focus on factoring responsible sourcing - including science-based targets and supplier diversity - into award decisions. In recognition of these efforts, we were named a 2021 Supplier Engagement Leader by CDP for the second consecutive year, placing us among the top 8% of companies assessed for supplier engagement on climate. CDP SUPPLIER ENGAGEMENT LEADER 2021 Among the top 8% of companies assessed by CDP for supplier engagement on climate

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