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 65 80 76 16 MAKING CONFIDENT DECISIONS TO IMPROVE EMPLOYEE EXPERIENCE AND ENGAGEMENT Each year, we encourage our employees to provide anonymous and candid feedback through our Business Engagement Survey (BES). This survey helps us to: » » » Understand our employees' level of engagement at periodic intervals throughout the year (for example, through shorter, more frequent pulse surveys); Inform our actions through the use of a validated measure of engagement; Reinforce managers' roles to take action by dedicating specific resources to address opportunity areas identified by the survey results; and Assess employee sentiment around longevity and intent to stay, which helps us to frame actions that drive talent retention. Our 2021 employee engagement survey score was 73, compared to a global benchmark of 75 - measured by employees reporting how happy they are at Moody's and whether they would recommend working here. We use the feedback we received through the BES as a vital input into making decisions to improve our employee experience. At the same time, we are constantly looking to improve our employee experience and recognize that we can do more. While our employees are highly engaged, many are looking for better communication and transparency around change. The BES found that our employees appreciate the continuous performance review approach and regular check-ins, and some also expressed a desire for better infrastructure and more support to improve job effectiveness. Additionally, with continued business growth, employees are also seeking more career advancement and development opportunities - which we expect Moody's U to help us improve. Business engagement survey¹ Employee perceptions of the company's culture are mostly positive, as are their views on the company's approach to inclusion and well-being. 76 73 71 Employee engagement score² 75 75 Well-being favorability score³ Global benchmark5 2019 2020 2021 74 74 71 Inclusion score4 70 70 1 The data represents approximately 90% of employees (excludes certain non-wholly-owned subsidiaries and newly acquired companies which are not integrated in Moody's IT systems and therefore the survey was not distributed to them). In addition, RMS is in the process of integration and will be reported in these metrics next year. Employees participating in employee engagement surveys in 2021 - 84%, 2020 - 86%, 2019 - 87%. 2 Employee engagement score is an average of two items: "How happy are you at Moody's?" and "Would you recommend Moody's?" 3 The favorability score is the average percentage of employees who agree Moody's takes a genuine interest in their well-being. Global benchmark for the well-being favorability score is not available. 4 Inclusion score is an average of item: "leaders in my line of business value different perspectives." 5 Survey third-party service provider's global benchmark is based on cross-client, cross-industry and cross-country company data from well over 700 organizations and over 150 countries.

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