Morgan Stanley Sets Ambitious 2030 GHG Reduction Targets
FOR IMMEDIATE RELEASE
MEDIA CONTACT: Stefanie Spear, sspear@asyousow.org, 216-387-1609
BERKELEY, CA—NOV. 4, 2021—Morgan Stanley Wednesday announced its 2030 targets for reducing its financed greenhouse gas (GHG) emissions in line with its 2050 net-zero commitment. Morgan Stanley was the first major U.S. bank to set a net-zero target for the emissions tied to its financing activities. As You Sow has engaged with Morgan Stanley and a number of the largest U.S. banks on developing their net-zero financing targets.
Morgan Stanley’s 2030 targets have been informed by the International Energy Agency’s Net Zero by 2050 emissions pathways and are inclusive of Scope 1, 2, and 3 emissions. The investment banking giant aims to cut emissions intensity of its lending portfolios for auto manufacturing by 35%, energy by 29%, and power by 58%. The bank states that it also aims to expand sectors to cover a “significant majority” of its financed emissions.
Morgan Stanley released a report on its methodology for setting these targets, adding that membership in the Partnership for Carbon Accounting Financials and the Net-Zero Banking Alliance will inform its accounting and management of emissions reductions.
The Science Based Targets initiative will release its Net-Zero Foundations for Financial Institutions on Nov. 10 to give further guidance to the sector on its net-zero transition. Investors support validation of banks’ targets through the SBT initiative.
Danielle Fugere, president at As You Sow, stated:
“We welcome this progress and leadership from Morgan Stanley. It is critical that banks set and disclose interim targets to demonstrate they are on track to meet their 2050 net-zero goals. Banks will be a key driver of success in meeting the Paris Agreement’s 1.5-degree goal. Investors will be looking for assurance from banks that their interim targets, especially intensity-based targets, are resulting in year on year emissions reductions to successfully drive the necessary global contraction of emissions.”
Daniel Stewart, energy program manager at As You Sow, stated:
“We are glad to see Morgan Stanley use the International Energy Agency’s net-zero roadmap to inform its target setting methodology. It is promising that Morgan Stanley is acknowledging that fossil fuel use needs to be significantly reduced by 2050 to limit warming to below 1.5°C. Investors need to see more leadership from financial institutions in making immediate and robust cuts to their fossil fuel lending.”
To learn more about As You Sow’s work on climate change, click here.
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