100% renewable electricity via EACs globally, targeting net-zero by 2040 Moody's procures 100% renewable electricity for its global operations annually through unbundled energy attribute certificates (EACs) including NAR RECs in North America, GOs in Europe, REGOs in the UK, I-RECs in Asia/Middle East/LatAm, and direct renewable utility contracts where available. In 2023, the company achieved this target for the fourth consecutive year at an investment of ~$53,488. The Environmental Sustainability Policy includes a formal commitment to 100% renewable energy. Procurement of renewable electricity is also modelled across NGFS transition scenarios to determine the ongoing cost of this commitment through 2040.
▾ expand
100% renewable electricity achieved for fourth consecutive year in 2023 Moody's achieved 100% renewable electricity across its entire property portfolio for the fourth time in 2023 through energy attribute certificates (EACs) via NAR, GOs, REGOs, I-RECs and other local instruments. Investment of $53,488 in EAC procurement.
▾ expand
Primary: Hybrid work and remote working programme reducing employee commuting emissions Moody's PurposeFirst hybrid work programme maintains low levels of employee commuting, which contributed to a 70% reduction in employee commuting emissions between the 2019 base year (10,400 tCO2e) and 2023 (3,100 tCO2e). Technology-enabled work, enhanced digital capabilities and IT infrastructure for work-from-home are maintained by the CAO overseeing the global technology team. Employee engagement includes quarterly meetings for global office representatives to share best practices and a car-free week campaign.
▾ expand
Annual carbon offset programme including removal projects; plan for permanent removals at net-zero Moody's offsets remaining Scope 1, Scope 2 (market-based), business travel and employee commuting emissions annually, retroactively to year 2000. In 2023, the company cancelled 24,369 tCO2e across 10 projects (Gold Standard, VCS, ACR registries), including reforestation in Brazil (Envira Amazonia), US forest projects, and cookstove projects in Uganda and Ghana. The net-zero target commits to neutralising residual emissions with permanent carbon removals at end of 2040 target, with plans to purchase and cancel carbon credits for neutralisation; interim removal-type credits (forestation) are already being selected. No DAC or BECCS used to date.
▾ expand
Primary: Office energy efficiency and hybrid work model Moody's has reduced energy intensity per square foot by 23% (from 11.7 kWh/sq ft to 9 kWh/sq ft) in 2023 through a combination of hybrid work, office space reduction, and building-level efficiency measures. Initiatives include raising temperature set-points in tech rooms, retrofitting air conditioning systems for lower GWP refrigerants, fitting common areas with LED lighting, timers and sensors, and limiting hot water from instant heaters. Total energy consumption decreased 18% from the prior year. The internal carbon price of $50/mtCO2e on business travel funds these initiatives.
▾ expand
Annual limited assurance (ISO14064-3) on Scope 1, 2, 3 and energy data All Scope 1, Scope 2 (location and market-based) and major Scope 3 categories (Cat 1,2,3,5,6,7,15) are subject to annual third-party limited assurance under ISO14064-3. 100% of reported emissions verified. Also covers energy consumption, EACs, offsets retired and supplier SBT progress.
▾ expand
Dependent: Supplier engagement programme to drive science-based targets across supply chain Moody's joined CDP's Supply Chain Programme in 2023 and organised webinars for its top 500 suppliers (representing 92% of total procurement spend) to encourage CDP disclosure and SBT adoption. An SBTi-validated supplier engagement target requires 60% of supplier spend to have SBTs by 2025; 54% achieved as of 2023. Priority suppliers receive engagement letters from the Executive Leadership Team and face contract amendments requiring SBT-setting. Moody's Sustainability Linked Facility ties loan pricing to progress on this target, generating $125,000 in annual savings in 2023 at 54% achievement.
▾ expand
Primary: Internal carbon price on business travel to fund decarbonisation Moody's applies a mandatory internal carbon fee of $50 per tCO2e on business travel emissions across global operations. The price was set via benchmarking against industry peers and covers costs of carbon offset credits, renewable energy procurement, and achieving climate-related targets. Revenue from the fee is allocated to procuring 100% renewable electricity and other mitigation initiatives. The fee encourages employees to select lower-emission travel options such as trains over planes or economy over business class. Employee awareness campaigns (car-free week photo contests) supplement the price signal.
▾ expand
Primary: Scope 1 and 2 absolute emissions reduction: 50% by 2030 from 2019 baseline (SBTi near-term) Moody's near-term SBTi-validated target (set April 2022) commits to a 50% absolute reduction in Scope 1 and Scope 2 (market-based) emissions by 2030 from a 2019 base of 15,335 tCO2e. The target was achieved ahead of schedule: 2023 combined Scope 1+2 market-based emissions were 969 tCO2e, representing a 93.7% reduction (187% of the 50% target). The primary contributors were 100% renewable electricity procurement and the hybrid work model reducing building energy use. Target is 1.5°C aligned under GHG Protocol Scope 1 and 2.
▾ expand