Impact investing has been gaining popularity in recent years as more investors look to generate positive social and environmental impact alongside financial returns. Morgan Stanley is one of the major financial institutions that has been championing impact investing and integrating it into its operations. With trillions of dollars under management, Morgan Stanley has the scale and influence to drive meaningful change through its investment decisions. This article will explore how Morgan Stanley is promoting impact investing through launching new funds, publishing research reports, developing measurement tools, and advocating for supportive policies.
Morgan Stanley manages billions in impact investing assets
As one of the largest wealth management firms globally, Morgan Stanley manages over $2 trillion in client assets. The company has made impact investing a priority and mobilized billions of dollars into funds and projects aimed at tackling social and environmental challenges. Some examples include the Morgan Stanley Impact Quotient Fund which invests in companies creating positive impact, and the Morgan Stanley NextGen Sustainable Leaders Fund focusing on disruptive and innovative businesses addressing sustainability issues.
Morgan Stanley produces annual sustainability reports and research
To demonstrate its commitment and progress on sustainability, Morgan Stanley publishes an annual Sustainability Report highlighting its ESG integration efforts across the firm. Its Institute for Sustainable Investing also produces regular thought leadership reports on trends and developments in the impact investing space. For instance, a 2020 survey report found that 75% of individual investors are interested in sustainable investing, reflecting growing momentum.
Morgan Stanley helped develop HIPSO metrics for impact measurement
In collaboration with Rockefeller Foundation and others, Morgan Stanley supported the creation of HIPSO – the Handbook of Indicators for Impact Portfolio and Organizations. Released in 2020, HIPSO offers a standardized set of metrics for impact investors to measure the performance and additionality of their capital deployment on issues like affordable housing, inclusive finance, and healthcare access.
Morgan Stanley executives advocate for supportive government policies
Beyond its own operations, Morgan Stanley actively engages with regulators and policymakers to promote a supportive environment for sustainable finance. For example, its CEO James Gorman co-chairs the Sustainable Markets Initiative’s financial services taskforce launched by Prince Charles. The taskforce calls for policy reforms to unlock trillions in private capital for the net zero transition and other sustainable development priorities.
As a major player in global finance, Morgan Stanley is leveraging its platform and influence to accelerate the growth of impact investing. From launching multi-billion dollar impact funds to supporting new industry metrics and standards, Morgan Stanley’s commitment has helped bring impact considerations into the mainstream of investment decision-making.