Climate Action

Morgan Stanley joins climate initiative and commits to disclosing carbon emissions

Morgan Stanley will now measure and disclose the carbon emissions of its loans and investments.

  • 21 July 2020
  • Rachel Cooper

Morgan Stanley will now measure and disclose the carbon emissions of its loans and investments.

Morgan Stanley has become the first U.S.-based global bank to join the Partnership for Carbon Accounting Financials (PCAF) and its Steering Committee as part of the Firm’s commitment to measuring and disclosing its approach to climate change risk and opportunity

In addition, Morgan Stanley will lend insights and expertise to help PCAF develop the global accounting standard that can be used by all financial institutions to measure and reduce their climate impact.

Last year, the PCAF was launched globally. At present, over 60 banks and investors, who represent more than $5.3 Trillion USD in assets, have subscribed to the initiative.

PCAF participants work together to jointly develop the Global Carbon Accounting Standard for the financial industry to measure and disclose the greenhouse emissions of its loans and investments.

By doing so, PCAF participants take the first step required to assess climate-related risks, set targets in line with Paris Climate Agreement and develop effective strategies to decarbonize our society. 

“We are excited to join PCAF and to support the important work they are leading to build a methodology for global banks’ efforts to track and measure climate change risks,” said Audrey Choi, Morgan Stanley’s Chief Sustainability Officer and CEO of the Morgan Stanley Institute for Sustainable Investing.

PCAF‘s methodology is currently being used in several markets for measuring financed emission in the financial sector and will soon be published as a global methodology which has been the work of a core team of financial institutions, including Morgan Stanley.

Giel Linthorst, Executive Director of the PCAF secretariat, said: “We are very excited about Morgan Stanley’s leadership in sustainability and believe they will bring an important voice to our management group.”

“As we work towards COP26, and a critical year ahead in aligning the finance sector with the goals of the Paris Climate Agreement, we believe that PCAF and member financial institutions will play an important leadership role in that work.”