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Sustainable Investing
April 30, 2024

2024 Stewardship Trends

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April 30, 2024

2024 Stewardship Trends

Sustainable Investing

2024 Stewardship Trends

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April 30, 2024


Executive Summary

As the 2024 proxy season kicks off, the Morgan Stanley Investment Management (“MSIM”)1 Global Stewardship Team2 (“GST”, or “we”) highlights three key themes: Natural Capital and Biodiversity, Workers’ Rights, and Artificial Intelligence (AI) that we believe3 will be high on the agenda for investors.

  • Natural Capital and Biodiversity Stewardship: Increased focus around portfolio companies’ impact and dependencies on natural resources, in consideration of the new guidance from the Taskforce on Nature-related Financial Disclosures (TNFD).
  • Workers’ Rights: We expect shareholder resolutions focused on workers’ rights to maintain higher investor support compared to other social issues in 2024.
  • AI Transparency and Oversight: The GST expects proposals to establish AI oversight and transparency as a new emerging issue across sector in the 2024 proxy season. For instance, the U.S. Securities and Exchange Commission (SEC) published letters suggesting that Apple4 and Disney5 should put their AI-related shareholder proposals to a vote has set a precedent.

1 MSIM refers to the investment management business segment of Morgan Stanley, a global financial services firm. MSIM is composed of a number of wholly-owned subsidiaries of Morgan Stanley, including MSIM Fund Management (Ireland) Limited. References to “Morgan Stanley” or the “Firm” in this document refer to the parent company and its consolidated subsidiaries. In some instances, MSIM may leverage or be a part of Morgan Stanley’s processes and/ or initiatives related to sustainable investing. Certain subsidiaries of Morgan Stanley in its Investment Management business, including but not limited to Calvert Research and Management and Parametric Portfolio Associates LLC, may differ in their approach to sustainable investing and maintain separate sustainability policies. Accordingly, the discussion of sustainable investing described herein may not be applicable to each Morgan Stanley affiliate or investment team. Further, some investment strategies may not consider ESG factors where it is not currently feasible or appropriate to do so, e.g., passive investment strategies, certain asset allocation strategies, or where requested by clients.
2 The MSIM Global Stewardship Team (the “Global Stewardship Team”), as part of the MSIM Sustainability team, supports and helps investment teams coordinate MSIM proxy voting and investee engagement activities.
3 Not all of these are current engagement themes on which MSIM investment teams are focused, but rather, areas where the Global Stewardship Team see potential for further investor engagement in 2024.
4 U.S. Securities and Exchange Commission, Apple Inc. 2024-01-03 (Retrieved 2024-04-08)
5 U.S. Securities and Exchange Commission, The Walt Disney Company. 2024-01-03. (Retrieved 2024-02-27)

Executive Director
MSIM Global Head of Stewardship


"ESG" investment: Environmental Social and Governance based investment is an investment approach which takes explicit account of the environmental, social and corporate governance aspects of all proposed investments.


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