Finance  -  November 4, 2021

Morgan Stanley Sets Interim Targets for Financed Emissions

Morgan Stanley announced Nov. 3 that it has set interim targets for its auto manufacturing, energy, and power sector financing in pursuit of its commitment to reach net-zero financed emissions by 2050.

The financial institution is targeting $1 trillion in financing that advances the Sustainable Development Goals, with $750 million allocated to projects that drive the climate transition. By 2030, the firm plans to reduce the Scope 1, 2, and 3 emissions by 35% in auto manufacturing, 29% in energy, and 58% in power financing within its corporate lending portfolio.

“The recent report from the Intergovernmental Panel on Climate Change makes clear the urgency of addressing greenhouse gas emissions, and that near-term reductions are necessary if the world is to limit global temperature rise to 1.5°Celsius. Morgan Stanley’s interim net-zero targets set us on that path toward a more sustainable and prosperous future,” Audrey Choi, Morgan Stanley’s chief sustainability officer, said in a statement. “Morgan Stanley is committed to working with our clients to accelerate sustainable efforts by offering leading products, solutions, and insights to facilitate their low carbon transition plans. Today’s announcement builds upon the Firm’s decade plus leadership in sustainable investing.”

Morgan Stanley plans to use the carbon accounting methodology of the Partnership for Carbon Accounting Financials to track its progress toward these goals and will set further targets using the Net-Zero Banking Alliance methodology for managing emissions. Finally, the firm will disclose its progress to stakeholders through the Taskforce for Climate-related Finance Disclosure’s four-part framework.

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