LONDON-- October 01, 2021 -- Moody’s Corporation (NYSE: MCO) today announced that it has joined the Taskforce on Nature-related Financial Disclosures (TNFD), a new industry-led initiative working to significantly shift global financial flows from nature-negative to nature-positive outcomes. As a member of the TNFD, Moody’s will join leading organizations across key sectors and geographies to develop a reporting framework and act on evolving nature-related risks.

“At its core, Moody’s role is to help others better understand, measure, and manage risk. As our own research has identified, biodiversity and nature-related risks are impacting corporate performance and are increasingly important considerations in building a more sustainable future,” said Rob Fauber, President and Chief Executive Officer of Moody’s Corporation. “We are thrilled to contribute to the TNFD’s efforts as organizations increasingly seek to make better decisions and unlock opportunities across their value chains.”

Research from across Moody’s has found that biodiversity and nature-related risks pose a significant threat to a wide range of industries and sectors. A Moody’s Investors Service report found that 12 sectors with $2.1 trillion in combined debt, including all extractive industries, face high or very high natural capital risk. In addition, a Moody’s ESG Solutions study found that 38% of large publicly traded companies have at least one facility associated with habitat loss, based on a sample of 5,300 corporations.

Currently, financial institutions and companies do not have complete information to help them understand how nature-related risks impact long- and short-term financial performance. The TNFD will assist financial institutions and companies with incorporating nature-related risks and opportunities into their strategic planning, risk management and asset allocation decisions. In the coming years, Moody’s will work with TNFD members to develop a practical framework for nature-related risks and a set of reporting guidelines.

The announcement builds on Moody’s participation in the Task Force on Climate-related Financial Disclosures (TCFD), which has established and normalized a framework for reporting financial risks related to climate change. It also follows Moody’s role as a founding member of the Net Zero Financial Services Provider Alliance, which is part of the Glasgow Financial Alliance for Net Zero. Moody’s has also committed to achieve net-zero emissions across its operations and value chain by 2040, bringing its original target forward by 10 years. In addition, Moody’s has set and progressed on validated, interim net-zero science-based targets. Progress on these targets can be viewed in Moody’s recent TCFD Report (https://bit.ly/3wkWd4l) and Stakeholder Sustainability Report (https://bit.ly/3zDtZ5R). Additional information about Moody’s climate efforts is available on its Climate Hub.