Moody’s Highlights its Ongoing Commitment to ESG

Moody’s Corporation (NYSE:MCO) today highlighted recent developments underscoring its ongoing commitment to advancing environmental, social, and governance (ESG) initiatives.

“Moody’s is committed to working toward a sustainable future,” said Raymond McDaniel, President and CEO of Moody’s. “This commitment is evident through our strategic partnerships with prominent organizations that promote sustainability and social responsibility, our work toward implementing ESG principles in our own operations, and our growing capabilities in providing ESG-related thought leadership, assessments and data to market participants.”

Moody’s recent ESG-related activities have included:

United Nations Global Compact
On July 11, 2019, Lise Kingo, CEO and Executive Director of the United Nations Global Compact (UN Global Compact) met with Mr. McDaniel to welcome Moody’s as a Participant of the UN Global Compact. Launched in 2000 to encourage companies to engage in responsible business practices, the UN Global Compact is the largest corporate sustainability initiative in the world with over 9,500 business and 3,000 non-business signatories. As part of its membership, Moody’s will submit an annual progress report including a description of practical actions the company has taken to enhance its sustainability efforts.

Principles for Responsible Investment
Moody’s recently became a signatory to the Principles for Responsible Investment (PRI), an international association of asset owners, investment managers, and service providers working toward a more sustainable global financial system through the incorporation of ESG factors into investment decisions. This builds on Moody’s 2016 signing of PRI’s Statement on ESG in Credit Ratings, part of an initiative to enhance the transparent and systematic integration of ESG factors in credit risk analysis. As a PRI member, Moody’s joins a network of over 2,200 organizations in endorsing PRI’s six core principles related to acting in the best long-term interest of investors and incorporating ESG issues into investment and disclosure practices.

"Moody's has long recognized the importance of considering ESG factors in credit decisions," said Fiona Reynolds, PRI CEO. "By joining the PRI and the UN Global Compact, they are further underscoring their commitment to sustainability, a move which we welcome."

Task Force on Climate-related Financial Disclosures Report
On July 10, 2019, Moody’s released its annual report in response to the Task Force on Climate-related Financial Disclosures (TCFD), an organization established by the Financial Stability Board to promote more informed financial decisions and to improve understanding of exposure to climate-related risk. Moody’s report mirrors the TCFD’s recommendations for climate disclosure and includes information on operations structured around four thematic areas – governance, strategy, risk management, and metrics and targets.