Engaging suppliers to reduce their emissions is a key element in our strategy to achieve net-zero emissions.
We take an active approach by engaging with our top 500 suppliers each year, helping them initiate carbon accounting processes, set science-based targets, and report their progress through EcoVadis.
Additionally, we have amended our supplier contracts to include sustainability language, requesting that suppliers set science-based targets.
We expect our partners to adhere to the highest ethical standards and operate in compliance with all applicable laws and regulations. Our Supplier Code of Conduct, reflecting social and environmental considerations, guides our suppliers' business integrity, labor practices, health and safety, and environmental stewardship. Any concerns or suspicions of violations of that Code can be reported through Moody's Integrity Hotline.
Our Modern Slavery and Human Trafficking Statement is updated annually.
As part of our due diligence process, we conduct sanctions screening on all new suppliers and evaluate key suppliers using a tool that assesses supply chain risks, including risks associated with sanctions, modern slavery, human rights violations, and environmental crimes. We also quantify risks, such as cybersecurity and compliance with global ethical standards for key suppliers before we formalize new relationships.
Moody's is a member of the Sustainable Purchasing Leadership Council (SPLC), a leading organization focused on developing sustainable procurement programs. Our membership provides us with the opportunity to innovate, collaborate with other industry leaders, and amplify our sustainability impact across our value chain.
As of year-end 2024, we met our target of 60% of suppliers by spend that have science-based targets one year before target (2025).
We will work on updating our supplier target, outlined in our Decarbonization Plan, for 60% of our suppliers by spend covering purchased goods and services and capital goods to have science-based targets by 2025.
