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 62 22 PERFORMANCE MANAGEMENT: GROW, PERFORM, SUCCEED In 2021, we adopted a single performance management approach - termed Grow, Perform, Succeed (GPS) - that emphasizes our commitment to employee growth and development. GPS encompasses all aspects of performance management—including dynamic objective setting, performance evaluations and continuous feedback. It allows employees to navigate their Moody's careers with a set of shared success factors and a qualitative rating scale that measures both business outcomes and behaviors. This drives business results and builds a culture of growth. As part of this effort, we have refreshed our core success factors - behaviors that are expected of all employees and leaders - and put in place clear and common definitions for evaluating business outcomes and behaviors. We delivered eight separate GPS training programs on the new GPS behaviors and approach, totaling 41 individual trainings globally. How it works Employees collaborate with their managers to set clear, measurable objectives that align with department and company objectives, and employees receive continuous feedback. At the end of the performance review cycle, managers and employees have a conversation focused on two key dimensions - both what the employees are expected to achieve and how they are expected to achieve it. Each dimension is given equal weight when determining the employee's overall performance rating. In 2021, 92% of employees received a performance and career development review via GPS. Incorporating diversity, equity and inclusion Our employees are expected to demonstrate a shared set of behaviors that contribute to a culture of growth and inclusion. As part of the GPS review, all applicable employees are evaluated on our Core Success Factors ― including "Authentic and Aware" (e.g., "Listens with empathy and genuinely cares for others") and "Collaborate with Purpose” (e.g., "Fosters an exchange of perspectives in an open-minded and inclusive manner" and "Listens effectively to hear and value different perspectives and viewpoints"). There are additional expectations and measures for managers. Managers are evaluated on the Leadership Success Profile- which includes "Empower and Develop Talent" (e.g., "Fosters an inclusive workplace that values diversity and promotes belonging and well-being"). In addition to being embedded in performance evaluations, these behaviors are also incorporated into our employee and manager development programs. For more on our DE&I programs, see Diversity, Equity and Inclusion. For more information on our policies regarding employee training and upskilling, see Additional Resources. SUCCEED OBJECTIVE Dynamic wo ONGOING DIALOGUE PERFORM DISCUSSION Evaluate, measure and reward GROW. ADJUST YEAR-END GPS SUCCEED CONTINUOUS FEEDBACK MID-YEAR CHECK-IN Connect, monitor and grow DEVELOP SETTING 1 Employees in a probation period or who joined Moody's from newly acquired companies do not participate in the GPS performance review process. Certain non-wholly-owned subsidiaries for which this data was not available are excluded from the analysis, therefore the data represents 76% of the total employee population. EXECUTE

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