Morgan Stanley to Eliminate Net Emissions From Financing by 2050

Morgan Stanley said it plans to eliminate the net carbon emissions generated by its financing activities within 30 years.

The announcement on Monday came two months after the bank announced it would join the Partnership for Carbon Accounting Financials and start reporting the emissions resulting from its lending and investments. Morgan Stanley said in a statement Monday that it will provide resources, including financing, to support the transition to a low-carbon economy.

While Morgan Stanley is giving itself until 2050 to reach its target, the announcement should send a signal that the bank wants to play a key role in fighting climate change through its financing activities. Curbing funding to fossil-fuel businesses could impact their cost of capital and push them to adapt for a greener world.

“Climate change is one of the most complex and interconnected issues of our time,” Audrey Choi, the bank’s chief sustainability officer, said in the statement. “Morgan Stanley believes we have an important role to play in facilitating the transition to a low-carbon future.”

A key obstacle the company faces in achieving its target is the lack of standardized tools and methodologies for measuring and disclosing financed emissions. Morgan Stanley plans to help develop those tools, Choi said.

©2020 Bloomberg L.P.

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