Strong on Engagement
Light on Carbon
Built on Quality

 

3 years of performance

Launched over three years ago and built on 25 years’ heritage of Quality investing, Global Sustain reflects our belief that there doesn’t have to be a trade-off between long-term performance, principles and planet.

Performance Icone

PERFORMANCE

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PRINCIPLES

Screening Policy
Planet Icon

PLANET

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3 reasons to invest

A high quality, ESG-integrated global equity portfolio that is strong on engagement, light on carbon, built on quality.

1

Strong on engagement1

We engage directly — and often — with the management of companies we own. This includes regular dialogue with management on progress towards decarbonisation targets.

Read our latest Engage report >
2020 MEETINGS
AND ENGAGEMENTS
 
 
2

Light on carbon2

Global Sustain is a reduced carbon intensity portfolio, with just 20% of the carbon footprint of an average company in the MSCI AC World Index.

Read more on our Low Carbon Ambition >
TONS
CO2E/$M SALES
 
 
3

Built on quality3

We seek sustainably high return businesses that can compound over time. Global Sustain, like our other global strategies, is a leader on quality relative to the peer universe.

 
GLOBAL SUSTAIN
VERSUS ESG PEERS3

Source: FactSet, MSCI ESG, Morgan Stanley Investment Management.

1 All interactions between International Equity Team portfolio managers and company management or non-executive board members from 1 January 2021 to 30 June 2021 where material E, S, or G factors were discussed. Data updated annually.

2 Trucost data as of 30 June 2021 for the Morgan Stanley Global Sustain representative account. Trucost defines a portfolio’s carbon intensity as the carbon emissions (Scope 1 and 2) of a portfolio per $1 million invested or per $1 million of portfolio companies’ sales. The portfolio-level statistics show the weighted average carbon intensity (WACI). Global Sustain seeks to achieve a GHG emissions intensity that is significantly lower than that of the reference universe (which is defined, only for the purposes of comparing GHG emissions intensity, as companies of the MSCI AC World Index that have a market capitalisation greater than US$5 billion).

3 ROOCE (Return on Operating Capital Employed) = EBITA (Earnings Before Interest, Taxes and Amortization)/PPE (Property, Plant,Equipment) + Trade Working Capital (excludes goodwill), last twelve months (LTM), Ex-Financials. EBIT Margin Stability is (1-(std deviation)/mean))10 year average. Data as of 31 30 June 2021.

Source: FactSet, MSCI ESG, Morgan Stanley Investment Management.

1 All interactions between International Equity Team portfolio managers and company management or non-executive board members from 1 January 2021 to 30 June 2021 where material E, S, or G factors were discussed. Data updated annually.

2 Trucost data as of 30 June 2021 for the Morgan Stanley Global Sustain representative account. Trucost defines a portfolio’s carbon intensity as the carbon emissions (Scope 1 and 2) of a portfolio per $1 million invested or per $1 million of portfolio companies’ sales. The portfolio-level statistics show the weighted average carbon intensity (WACI). Global Sustain seeks to achieve a GHG emissions intensity that is significantly lower than that of the reference universe (which is defined, only for the purposes of comparing GHG emissions intensity, as companies of the MSCI AC World Index that have a market capitalisation greater than US$5 billion).

3 ROOCE (Return on Operating Capital Employed) = EBITA (Earnings Before Interest, Taxes and Amortization)/PPE (Property, Plant,Equipment) + Trade Working Capital (excludes goodwill), last twelve months (LTM), Ex-Financials. EBIT Margin Stability is (1-(std deviation)/mean))10 year average. Data as of 30 June 2021.

 

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RISK CONSIDERATIONS

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