1GT Fund | Morgan Stanley Investment Managment

Climate Investing

How the 1GT Strategy is shifting
the climate impact paradigm in
private equity


Understanding the
Global Emissions Crisis

The Path to Net Zero is Narrow But Achievable

To prevent the worst climate damages, global net human-caused emissions of carbon dioxide (CO2) need to fall by ~45% from 2010 levels by 2030, reaching net zero around 2050
IEA, Global Energy Review 2021

The Paris Agreement goal is to limit global warming to well below 2, preferably to 1.5 degrees Celsius, compared to pre-industrial levels.

Source: Historical emissions and predictions created using En-ROADS


Address the global emissions crisis by catalyzing the avoidance of 1 gigaton of CO2e by 2050 by investing in companies with more climate efficient products

Singular Emissions Focus

Focus on CO2e emissions as the single most impactful metric for climate change

Ambitious 1GT Goal

Substantial, trackable and auditable climate goal of 1 gigaton of CO2e emissions avoided

Carried Interest Alignment

Innovative carried interest linkage to 1GT emission avoided goal to be verified by independent specialist

Hear from the 1GT Team


Why 1GT?

Carried Interest Link

Innovative carried interest linkage to 1GT emission avoided goal to be verified by independent specialist

Distinguished Track Record

Established climate impact track record dating back to 2015

1 Gigaton Goal

Substantial, trackable, and auditable climate goal of 1 gigaton of CO2e emissions avoided

CO2e Measurement Specialist

Engage with independent CO2e measurement specialist to perform transparent and rigorous measurement

Growth Stage Focus

Target the underserved growth stage segment of the market

Morgan Stanley Advantage2

Ability to add value to portfolio companies by leveraging significant Morgan Stanley resources

What does 1 Gigaton of CO2 look like?

Carbon sequestered by 17 billion tree seedlings grown for 10 years, or one quarter of the world's forest in one year

It is Financially Compelling to Operate within a Climate Lens...



60-80% of global impacts come from household consumption3

62% of younger generations in the US prefer to buy from sustainable brands and around 70% are willing to pay more4



Efficient use of inputs and materials directly impacts bottom-line

Improving EBITDA margins is basic private equity and aligning this with environmental objectives can be very intuitive5


Climate Resilience

Increasing frequency of extreme weather is a risk to supply chains

Management of operational risk through climate secure locations and redundancy planning can lead to greater cash flow predictability



Traditional companies are driven to diversify into promising new areas by making acquisitions of sustainability-oriented companies

Public market investors are leaning into climate positive equities


About the 1GT Strategy

Our Sustainable Value Add

As the Lead Sustainable Investor, the 1GT Team will partner with portfolio companies seeking to deliver:

We employ a time-tested, multi-stage approach to assessing investments.

Impact Enhancement

Put in place systems to manage ESG risk and maximize impact delivery, measurement, and reporting

Multiple Expansion

Attempt to deliver multiple expansion through our value-add initiatives and creation of sustainability narrative

Broader Exit Opportunities

Increase potential avenues for successful exit through value-add sustainability partnerships

We Target Climate Positive Portfolio Companies
Across Four Key Investment Themes

Mobility | Electric Train
Power | Solar Panels and Windmills Farm
Sustainable Food & Agriculture | Greenhouse Farm
Sustainable Food
& Agriculture
Circular Economy | Plastic Bottles Closeup
Circular Economy

News & Insights

View All Insights by Team

Contact Us

Interested in learning more?
Please contact us today.

Contact Us

The value of investments and income from them can go down as well as up and investors may get back less than the amount invested.

This is a marketing communication for professional investor use only. Please refer to the confidential private placement memorandum of the 1GT Fund (as supplemented, the "Memorandum") and the Fund's constituent documents (together with the Memorandum, the "Offering Materials") before making any final investment decision.

1 Insurance Asset Risk: MSIM's 1GT private equity strategy has won the Investment Innovation of the Year Award 2022, with judges focusing particularly on the clear climate objectives, direct link to carried interest, and the specific capital efficiency for insurance investors. (https://www.insuranceassetrisk.com/content/awards/insurance-asset-risk-awards-2022-uk-and-europe/winners/investment-innovation-of-the-year-morgan-stanley-investment-management.html). Winners are awarded by Insurance Asset Risk, published by Field Gibson Media; judges are senior industry experts from across Europe and the UK, each chosen for their knowledge, objectivity and credibility. Judging process : Insurance Asset Risk - https://www.insuranceassetrisk.com/content/awards/insurance-asset-risk-awards-2023-uk-and-europe/judging-process.html

2 Subject to third party confidentiality obligations and internal policies and procedures established by Morgan Stanley, including information barriers and allocation policies, to manage potential and actual conflicts of interest and/or in respect of regulatory requirements.

3 Source: Diana Ivanova, Konstantin Stadler, Kjartan Steen-Olsen, Richard Wood, Gibran Vita, Arnold Tukker and Edgar G. Hertwich. 2015. Environmental Impact Assessment of Household Consumption. Journal of Industrial Ecology. DOI: 10.1111/jiec.12371

4 Source: First Insight: 'The State of Consumer Spending: Gen Z Shoppers Demand Sustainable Retail.

5 Diversification does not eliminate the risk of loss

Risk Considerations

Before deciding to invest in any Morgan Stanley AIP Private Markets Portfolio, the recipient should consider all relevant investment considerations and any conflicts of interest of Morgan Stanley AIP Private Markets. The recipient should have the financial ability and willingness to accept the risks associated with an investment in a Portfolio for an indefinite period of time. An investment in a Portfolio is speculative and involves significant risks. These risks include, but are not limited to, the following: Each investment which would be made on behalf of such Portfolio would be illiquid, and an investor may not be able to transfer its interest in any such investment because of restrictions on transferability of interests. Any potential return on an investor's investment will be reduced by the fees and expenses payable to Morgan Stanley AIP Private Markets, as well as those fees and expenses payable pursuant to the terms of each investment made on behalf of the Portfolio, which may be substantial. In addition, investors unable to meet their funding obligations with respect to any such investment in a timely manner may face severe default penalties, including the forfeiture of any distributions to which an investor may be otherwise entitled. The terms of any investment shall be governed by definitive agreements. Any decision to invest should be made solely in reliance upon such agreements.

Important Information

This document has been prepared solely for information purposes and does not constitute an offer or a recommendation to buy or sell any particular security or to adopt any specific investment strategy. The material contained herein has not been based on a consideration of any individual client circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal or regulatory advice. To that end, investors should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision. Except as otherwise indicated herein, the views and opinions expressed herein are those of Morgan Stanley Investment Management, are based on matters as they exist as of the date of preparation and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available or circumstances existing, or changes occurring, after the date hereof.. It is not a product of Morgan Stanley's Research Department and should not be regarded as a research recommendation.

The information contained herein has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research. All information contained herein is proprietary and is protected under copyright law.

Performance information is not indicative of future performance or investment returns, and a prospective investor should not view the performance information in this presentation as an indicator of the future performance of a particular fund. Additional information is available upon request.

Certain information contained herein constitutes forward-looking statements, which can be identified by the use of terms such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue,” or “believe” (or the negatives thereof) or other variations thereon. Due to various risks and uncertainties, including, but not limited to, those set forth herein, actual events or results or actual performance of any Portfolio may differ materially from those reflected or contemplated in such forward-looking statements. Except as otherwise indicated herein, the views and opinions expressed herein are those of Morgan Stanley AIP Private Markets, are based on matters as they exist as of the date of preparation and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available or circumstances existing, or changes occurring, after the date hereof. They are subject to change based on market, economic and other conditions and may not actually come to pass.

The Fund is classified as an Article 9 product under the Sustainable Finance Disclosure Regulation. Article 9 products are those which have a sustainable investment objective and which integrate sustainability into the investment process in a binding manner.


European Economic Area: Issued by MSIM Fund Management (Ireland) Limited. MSIM Fund Management (Ireland) Limited is regulated by the Central Bank of Ireland. MSIM Fund Management (Ireland) Limited is incorporated in Ireland as a private company limited by shares with company registration number 616661 and has its registered address at The Observatory, 7-11 Sir John Rogerson's Quay, Dublin 2, D02 VC42, Ireland.

United Kingdom: Issued by Morgan Stanley Investment Management Limited. Authorised and regulated by the Financial Conduct Authority. Registered in England No. 1981121. Registered Office: 25 Cabot Square, Canary Wharf, London E14 4QA.

Switzerland: Issued by Morgan Stanley & Co. International plc, London, Zurich Branch (“MSIP Zurich”). MSIP Zurich is authorised and regulated by the Swiss Financial Market Supervisory Authority (“FINMA”). Registered Office: Beethovenstrasse 33, 8002 Zurich, Switzerland, Telephone +41 (0) 44 588 1000. The offer and marketing of the Fund in Switzerland will be exclusively made to, and directed at, Qualified Investors only. Accordingly, the Fund has not been and will not be registered with FINMA for distribution to Non-Qualified Investors and distribution of the Fund may be conducted without a Swiss representative or paying agent.

This Presentation is only intended for and will only be distributed to persons resident in jurisdictions where such distribution or availability would not be contrary to local laws or regulations.

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