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 31 OFFSETTING OUR CARBON EMISSIONS In addition to the reported emissions reductions, we are committed to offsetting our emissions from operations, business travel and employee commuting on an annual basis. In 2021, we continued to offset our carbon footprint since 2000, when we became a public company. Our carbon offset projects are selected based on the geographies where we operate and alignment with SDGs and co-benefits; projects are also listed on reputable registries that guarantee third-party verifications. In 2021, we continued our climate project engagements with VERRA and Gold Standard to support our emissions offsets. These global engagements included wind, forestation, clean cookstove and borehole-related initiatives. CONSIDERATIONS FOR NEW OFFICE LOCATIONS Environmental considerations help to guide our selection of office locations. This includes leasing space in energy- efficient buildings that are Leadership in Energy and Environmental Design (LEED) certified (or a local equivalent outside the U.S.). Currently, approximately 58% of our employees are working in such buildings - a decrease compared with the previous year due to significant merger and acquisition (M&A) activity. We also evaluate whether a location has convenient access to public transportation, includes bicycle storage and shower facilities to promote exercise and greener commuting, and uses energy-efficient, recycled and sustainable materials, fixtures and control systems. In addition, we consider the cost of carbon when selecting new office spaces. Certified climate projects supporting our 2021 emissions offsets VERRA Standards for a Sustainable Future Gold Standard® ADVANCING OUR DECARBONIZATION PLAN IN 2021 » Procured 100% renewable electricity. » >>> Implemented various projects to promote energy efficiency, including: Increased temperature set-point in technology rooms; » » Continued to implement an Internal Carbon Fee of USD $50 per metric ton (mtCO2e) on business travel emissions. Continued to apply a shadow price on carbon to evaluate new office leases. » Promoted participation in the Daylight Hour campaign, organized by the Building Energy Exchange to raise awareness about using natural light instead of electric light; and Launched an updated company-wide environmental sustainability policy. » - Installed light saving mechanisms in some offices, such as sensor motion lights and energy saving LED lights. Maintained business travel and employee commuting low in light of COVID-19. >>> » Implemented quarterly meetings among our global office representatives to share best practices on reducing emissions from our operations. Prioritized sustainable construction and furnishing materials' in new real estate projects. Continued to engage with our stakeholders on climate-related issues. For more information, see Stakeholder engagement. >>> Wind project (Costa Rica) » Clean cookstoves project (Kenya) Wind project (India) >>> Boreholes (Malawi) » Forestation (Canada) » Clean cookstoves project (India) In 2021, we became the first S&P 500 company to ask its stockholders to vote on its Decarbonization Plan, which seeks to implement sustainable business plans and advocate corporate climate action while giving stockholders a meaningful voice. The Plan received 93% of votes in support. 1 Materials manufactured with recycled content or third-party certified for complying with recognized sustainability standards.

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