$1Trillion commitment in sustainability solutions will support United Nations Sustainable Development Goals
The updated $750 billion low-carbon financing commitment triples Morgan Stanley’s initial commitment announced in 2018 to mobilize $250 billion by 2030
Announcement follows Morgan Stanley’s Paris-aligned commitment to net-zero financed emissions by 2050, the first among large U.S. banks
NEW YORK--(BUSINESS WIRE)--Apr. 13, 2021--
Morgan Stanley (NYSE: MS) today announced an updated commitment to mobilize $750 billion to support low-carbon solutions by 2030, following its initial commitment of $250 billion announced in 2018, representing a three-fold increase. The commitment builds on Morgan Stanley’s leadership position as the first large U.S. bank to commit to net-zero financed emissions by 2050 in line with the Paris Agreement, and its role as the sole large U.S. bank on the Steering Committee of the Partnership for Carbon Accounting Financials (PCAF). The Firm will achieve this commitment through increased activities such as clean-tech and renewable energy finance, green bond financing and other transactions that enable a transition to a low-carbon economy.
This enhanced commitment is part of a larger goal Morgan Stanley is announcing to mobilize a total of $1 trillion towards sustainability solutions in support of the United Nations’ Sustainable Development Goals (SDGs) by 2030. The UN Sustainable Development Goals provide a roadmap for some of the main societal developmental areas for investment. The Firm will mobilize capital towards this goal through its robust sustainable investing capacity and product offerings for corporations, governments and individuals across businesses including Investment Banking, Investment Management, Institutional Securities and Wealth Management.
“The convergence of recent crises in climate, health, and social justice underscore the interconnections between environmental, societal, and structural issues. It is imperative for business and finance to accelerate our efforts to drive positive global systemic change,“ said Audrey Choi, Morgan Stanley’s Chief Sustainability Officer and CEO of the Institute for Sustainable Investing. “We are tripling our low-carbon commitment and increasing our SDG goals for the simple reason that there is no time to waste. As a leader in sustainable finance, it is our obligation to do more to support businesses, governments and individuals in securing a more sustainable world for future generations.”
In the first two years of its low-carbon financing commitment, Morgan Stanley mobilized $80Bn across the Firm. Since 2013, Morgan Stanley has supported green, social, sustainability and blue bond transactions worth approximately $83Bn, including the issuance of its own inaugural $500 million green bond in 2015. In 2020, Morgan Stanley issued a $1 billion social bond to support affordable housing projects.
These commitments build upon Morgan Stanley’s decade long leadership in sustainability and sustainable investing since the founding of the Global Sustainable Finance Group in 2009 and the launch of the Institute for Sustainable Investing in 2013.
Morgan Stanley is a leading global financial services firm providing investment banking, securities, wealth management and investment management services. With offices in more than 41 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions and individuals. For more information about Morgan Stanley, please visit www.morganstanley.com.
The returns on a portfolio consisting primarily of sustainable investments may be lower or higher than a portfolio that is more diversified or where decisions are based solely on investment considerations. Because sustainability criteria exclude some investments, investors may not be able to take advantage of the same opportunities or market trends as investors that do not use such criteria.
Diversification does not guarantee a profit or protect against loss in a declining financial market.
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Source: Morgan Stanley