Morgan Stanley introduced a brand new dedication to achieve net-zero financed emissions by 2050. The agency joins lots of its shoppers on this strategic objective and is dedicated to offering financing, experience and thought management to assist the transition to a low-carbon world.
“Climate change is one of the most complex and interconnected issues of our time,” mentioned Audrey Choi, chief sustainability officer at Morgan Stanley. “Morgan Stanley believes we have an important role to play in facilitating the transition to a low-carbon future, and we are proud to embark on this journey.”
A vital problem to reaching this objective is the shortage of standardized instruments and methodologies round measuring and disclosing financed emissions. Morgan Stanley can be committing to taking a management function in growing the instruments and methodologies wanted to measure and handle its carbon-related actions in acceptable methods. As a part of that effort, the agency not too long ago joined the Steering Committee of the Partnership for Carbon Accounting Financials (PCAF) and can search to play a management function in capability constructing. As soon as constant, strong and comparable metrics and methodologies can be found, the agency will set its preliminary financed emissions discount targets whereas persevering with to assist discover options for its shoppers.
“Morgan Stanley has been a leader in sustainable finance since we founded our Global Sustainable Finance Group over a decade ago,” mentioned Matthew Slovik, head of worldwide sustainable finance at Morgan Stanley. “This is the next major evolution of our efforts as we continue to integrate the potential risks and opportunities of climate change into our core business.”
As You Sow, a nonprofit group that promotes environmental and social company accountability by shareholder advocacy, coalition constructing and modern authorized methods, raised the vital subject of measuring, disclosing and decreasing financed emissions on behalf of buyers in a shareholder decision filed with Morgan Stanley and 4 different main banks final 12 months. The group was capable of withdraw the proposal after reaching an settlement through which the corporate agreed to evaluate methodologies for measuring its financed emissions with the intention of pursuing portfolio alignment with the Paris Settlement.
As You Sow reached related agreements with Wells Fargo, Goldman Sachs, and Bank of America. Its 2020 shareholder decision with JPMorgan Chase, asking the bank to measure, disclose, and scale back emissions aligned with Paris objectives, acquired a close to majority vote from buyers. To this point, Bank of America and Citigroup have joined Morgan Stanley in committing to measure and disclose financed emissions by PCAF.
Danielle Fugere, president of As You Sow, made the next assertion:
“Once again demonstrating its leadership, Morgan Stanley is the first major U.S. bank to commit to reduce its financed greenhouse gas emissions to net zero, a commitment critical to achieving the global goal. Morgan Stanley’s announcement sends a signal across the economy that access to capital will increasingly be tied to a company’s ability to reduce its emissions at the rate and scope necessary to align with the Paris goal of limiting warming to 1.5℃ — Morgan Stanley’s announcement underscores the importance and feasibility of following disclosure commitments with concrete action. We hope to see JPMorgan Chase, Wells Fargo, Bank of America, and Citigroup make similar announcements in the near future.”
Information merchandise from Morgan Stanley