Morgan Stanley
Institute for Sustainable Investing

Investing Opportunities for the Earth and Climate

Apr 19, 2024

Growing interest in sustainable investing, scalable innovations and new technologies are helping investors, companies and municipalities combat climate change, protect biodiversity and preserve ecosystems.

Some of the world’s most challenging sustainability issues—climate change, public health, biodiversity and plastic waste—are interrelated, and require systemic solutions that investors and companies can help mobilize at scale. Market participants are recognizing the potential for positive impact and performance; individual investor interest in sustainability is on the rise, and sustainable funds outperformed their traditional peers across all major asset classes and regions in 2023. Sustainable fund assets now account for 7.2% of total global AUM.

Sustainable Funds' AUM was $3.4 Trillion in December 2023, 7.2% of Total AUM

Source: Morgan Stanley Institute for Sustainable Investing analysis of Morningstar data. Data as of February 9, 2024.

Morgan Stanley’s Institute for Sustainable Investing accelerates sustainable finance and helps drive sustainability initiatives for the firm’s business lines, including Wealth Management, Institutional Securities Group—which encompasses Investment Banking, Global Capital Markets and Sales & Trading—and Investment Management.

Based on the Institute’s work in many areas of capital markets, its reports and surveys, transactions facilitated by Morgan Stanley and insights from the firm’s sustainability leaders, the following sustainable investing themes offer a template for investors and companies to consider when analyzing their portfolios and operations for sustainability-related opportunities: 

  1. Climate change and its impact on issues such as health and nature

  2. Rising interest in sustainable investing and recent outperformance of sustainable funds

  3. Innovative solutions, including in sustainable materials, from startups

  4. AI and its role in resource consumption, savings and portfolio analysis

Dive more deeply into these themes and the firm’s sustainable investing insights below.

Intersectional Issues: Climate Change, Public Health and Nature

Learn More Sustainability Insights