Morgan Stanley

RATING

SECTOR

Financial Servies

WEBSITE

CONTACT

Morgan Stanley
1585 Broadway
New York, NY 10036

Tel: 1 (888) 454-3965

STOCK EXCHANGE

LISTING

EMPLOYEES

60,431

CHIEF SUSTAINABILITY OFFICER

Audrey Choi

AWARDS

CONTENT SOURCE

FURTHER READING

William Evans

Morgan Stanely

SECTIONS :  Sustainability •  Targets    Evaluation  •  Key Points  •  Overview

Company Activity

Morgan Stanley is a multinational investment bank and financial services company. They are known for wealth management, investment banking, and trading. Morgan Stanley was founded in 1931 in New York and officially opened for business September 16, 1935.

Morgan Stanley operates globally currently with around 60,000 employees. In 2020 Morgan Stanley had a net income of $11 Billion.

Company Sustainability Activity

Morgan Stanley developed an Institute for Sustainable Investing to help mobilize capital and make businesses and markets more sustainable. They have been devoted in shifting their focus to be based around sustainable finance and sustainable projects overall.

Since 2013, Morgan Stanley has distributed $83 billion into green, social, and sustainability bonds and in 2019 alone distributed $24 billion. In 2019 they committed to facilitate the prevention, reduction, and removal of 50 million metric tons of plastic waste from rivers, oceans, landscapes and landfills by 2030.

They have committed to mobilizing $250 billion to support low-carbon solutions by 2030 and to date have mobilized around $80 billion.

Morgan Stanley has also created a few councils and committees that oversee the company’s operations. These groups are the Sustainability Disclosure Committee, Global Sustainability Bond Leadership Council, Investment Management Sustainability Council, Corporate Services Global Sustainability Council, Sustainability Supply Chain Working Group, and The Morgan Stanley Executive Climate Change Risk Steering Committee and Working Group.

 

Highlights

  • 116,000 and more affordable housing units funded
  • 140,000+ jobs created
  • Hedged 726 MW for new-build renewable energy projects and 676 MW for existing renewable projects through their commodities desk
  • More than 75% of long-term client assets apply sustainable investing approaches
  • Acted as sole green structuring advisor and bookrunner for PepsiCo’s $1 billion green bond
  • Acted as bookrunner on the $900 million first sterling green bond issued by Ørsted one of the world’s largest renewal companies it is the largest-ever GBP green issuance
  • Coordinated an equity offering for Ørsted, helping to raise a total of $789 million on behalf of SEAS-NVE
  • Joint bookrunner on the first SDG-linked bond in the market issued by Enel for $1.5 billion.
  • Supported Northvolt’s $1 billion equity capital raise to finance construction of Northvolt’s first 16 GWh battery cell manufacturing facility in Sweden
  • Acted as bookrunning senior manager on the New York State Housing Finance Agency’s first sustainability bond transaction
  • Served as bookrunning senior manager for Battery Park City Authority’s inaugural sustainability bond transaction
  • Served as Duke Energy’s exclusive financial advisor to sell a minority interest in a portion of its commercial renewable energy portfolio to John Hancock for a total enterprise value of $1.25 billion
  • Served as bookrunning senior manager for the San Francisco Bay Area Rapid Transit District’s $643.5 million green bond transaction
  • Launched Morgan Stanley Impact Quotient (Morgan Stanley IQ), an impact reporting application
  • Will not directly finance new oil and gas exploration and development in the Arctic, including the Arctic National Wildlife Refuge (ANWR)
  • Since 2012, Morgan Stanley has reduced its overall operational footprint by more than 35%
  • In September 2020, Morgan Stanley announced it would be facilitating the construction of two wind farms that will deliver a significant portion of the firm’s renewable energy
 

Targets

  • Committed to facilitate the prevention, reduction and removal of 50 million metric tons of plastic waste from entering rivers, oceans, landscapes and landfills by 2030
  • Committed to achieving carbon neutrality for their global operations by 2022
  • Committed to mobilize $250 billion in capital to support low-carbon solutions by 2030
  • Net-zero financed emissions by 2050
  • Committed to purchasing 100% renewable energy for their footprint by 2022

Progress

  • $83 billion distributed in social, green, and sustainability bonds
  • $21 billion committed in community development loans and investments
  • Issued a $500 million green bond to support energy efficiency improvement and renewable energy procurement across their operations
  • Created the Global Sustainable Finance Group to lead their strategy to integrate sustainability considerations
  • Raised $80 billion through 2019 of their $250 billion goal to support low carbon solutions
  • Supported over $83 billion in green, social and sustainability bond issuances across corporate, municipal and sovereign clients since 2013
  • Acting as sole green structuring advisor for PepsiCo’s inaugural $1 billion green bond
  • In 2019, they supported 90% of shareholder proposals for enhanced climate change reporting from US-based companies and 64% of proposals urging companies to adopt greenhouse gas (GHG) emission reduction targets
 

Certificates

LEED Certification:

  • Platinum certification for the One Indiabulls Center in Mumbai, India 
  • Gold certification for the International Commerce Center In Hong Kong
  • Gold certification for the Somerset, New Jersey Data Center
  • Gold certification for the 552 5th Avenue branch in New York
  • Gold certification for the Morgan Stanley Japan Headquarters in Otemachi Financial City, Tokyo
  • Gold certification for the RMZ Ecoworld Business Park in Bangalore, India

UN Sustainable Development Goals

UN SDGs Compliance

SDG 1: No Poverty

  • Acted as book running senior manager on the New York State Housing Finance Agency’s first sustainability bond transaction.
  • In 2019, Morgan Stanley committed to expand their unique funding program for resident services in affordable housing properties nationally.
  • Support initiatives that lower the cost burden of transportation for low-income people and improve public transit access.
  • They help communities rebuild after disasters.

SDG 3: Good Health and Well-Being

SDG 6: Clean Water and Sanitation

  • Global Capital Markets is underwriting green, sustainability and blue bonds, which finance projects related to ocean conservation.
    • In 2019, this included lead managing the World Bank’s $10 million sustainable development bond focused on addressing SDG 6 and SDG 14 and supporting PepsiCo’s inaugural $1.0 billion green bond focused on plastic waste reduction.
  • They are improving water-use efficiency, replenishing watersheds and working with suppliers on water-efficient farming practices.

SDG 7: Affordable and Clean Energy

  • $250 billion to support low-carbon solutions by 2030. To date, they have mobilized approximately $80 billion in capital toward the goal, including over $50 billion in 2019 through business activities in cleantech and renewable-energy financing, sustainable bonds, and other relevant transactions and investments.
  • Investing in energy efficiency, renewables and sustainable farming practices in their supply chain.
  • Through the firm’s Plastic Waste Resolution, their teams have led innovative, SDG-related transactions that promote sustainable plastics and packaging solutions, the circular economy, and marine biodiversity, as well as economies that rely on healthy and sustainable fisheries.

SDG 9: Industry, Innovation and Infrastructure

SDG 13: Climate Action

  • All green bonds they led in the past year included decarbonization and/or clean-energy initiatives as part of their use of proceeds. In the U.S. municipal bond market specifically, they continued to fund infrastructure projects that brought environmental and social benefits to communities around the country, including mass transit, climate resiliency, affordable water and wastewater infrastructure, education facilities and community development finance projects.

Evaluation

Morgan Stanley has a very strong start and structure to how they approach sustainability. To this date they are involving themselves in projects not just beneficial to them but to the global community as a whole.

They have taken their position as a financial institute and begun to gear assets towards attaining climate targets as well as staying on track with the Sustainable Development Goals. With their current sustainability goal structure, they are hitting 14 of the 17 goals showing their commitment to future goals.

Morgan Stanley began their mission of sustainability back in 2006 when they were working with the Carbon Disclosure Project, which led to the creation of their Global Sustainable Finance Group in 2009. They are a leader in the banking industry in regard to sustainability as they spearhead many environmental and social campaigns.

They have their targets and progress clearly mapped out within their reports as well as their dedication to the SDGs.

Despite its efforts towards sustainability, Morgan Stanley is involved with unsustainable activity, having invested $110.778 B in the fossil fuel industry since the adoption of the Paris Agreement. While the bank has decreased its investments since 2019, its involvement in the industry is significant. 

Therefore, Morgan Stanley has been rated a C.

Analyst Outlook: Neutral

Morgan Stanley’s participation and sustainable activity are setting them up to continue being an industry leader for sustainability. They have set aggressive goals in regards to their environmental policies and committees to make sure these goals stay on track for on-time completion.

Morgan Stanley could receive a higher rating should it continue its efforts and divest from the fossil fuel industry.

Key Points

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