Moody’s Pledges to Cut Scope 1, 2 and 3 Emissions by 90% by 2040
Information services and risk assessment firm Moody’s Corporation announced today a new commitment to cut greenhouse gas (GHG) emissions across its operations and value chain by 90% by 2040, compared to a 2019 base year.
The new target forms part of Moody’s commitment, announced last year to achieve net zero emissions by 2040. With today’s announcement, Moody’s stated that it has become one of the first companies to have its near- and long-term net-zero targets validated by the Science Based Targets initiative (SBTi). SBTi launched a ‘net zero standard’ in October to assess and certify company’s commitments to achieve net zero emissions, with stringent criteria for approval, including required decarbonization of 90-95% by 2050, with neutralization of residual emissions that are not yet possible to cut.
Moody’s new target was released with the publication of the company’s 2021 Stakeholder Sustainability and Task Force on Climate-related Financial Disclosures (TCFD) reports, highlighting the company’s ESG efforts and initiatives and climate plans and progress. According to the reports, Moody’s has already achieved a 92% reduction in absolute Scope 1 and 2 GHG emissions and a 95% reduction in Scope 3 from a 2019 base year in 2021. The company has set a target for 60% of its suppliers by spend to have science-based target commitments by 2025 (currently at 28%).
In the company’s 2021 Stakeholder Sustainability Report, Moody’s President & CEO, Robert Fauber wrote:
“Sustainability is not only a value driver for Moody’s. We strive to lead by example and are embedding responsible and sustainable decision-making across our firm. Last year, we accelerated our commitment to reach net-zero by 2040 – a decade earlier than the Paris Agreement goals. We are also working with our suppliers to help them advance their own sustainability targets.”