Sustainable Investing
Our Philosophy
MSIM's sustainable investing philosophy is anchored on the belief that there is a spectrum of approaches to utilize material environmental, social and governance (ESG) information and criteria to deliver strong returns for clients.
We are committed to ESG-informed investment decision making and we seek to leverage our influence to drive better investment performance alongside improved sustainability practices and outcomes through thoughtful, value-added investee engagement. MSIM offers a variety of sustainable investing options, from funds that integrate ESG factors as an intrinsic part of the investment process, to thematic Sustainable Funds that seek to achieve attractive financial returns alongside positive impact.
SUSTAINABILITY FOCUS AREAS
MSIM has identified five focus areas that are of strategic importance to our thematic research and company engagement/asset stewardship work that are both potentially material to our investment goals and vitally important from a systemic perspective. These themes touch all our investment teams to varying degrees depending on asset class, geography, and investment style and strategy.
DECARBONIZATION & CLIMATE RISK
Supporting the transition to a low carbon economy in line with Paris Agreement goals
CIRCULAR ECONOMY & WASTE REDUCTION
Supporting business models that reduce impact on natural resources and that reduce waste generation
DIVERSE & INCLUSIVE BUSINESS
Supporting business practices that create a more just and inclusive society
DECENT WORK & RESILIENT JOBS
Supporting decent work across the entire value chain and helping to create resilient workforces in the face of innovation and change
Natural Capital & Biodiversity
Supporting business models that reduce negative impact on biodiversity in line with the Post 2020 Biodiversity Framework
MSIM Sustainable Investing Approach Overview
As active managers and long-term investors, we believe we have both a duty and an opportunity to steward the capital we manage. Our investment teams embrace this opportunity by engaging directly with their portfolio companies and by effectively exercising our proxy voting and other rights as shareholders.
Our sustainable investing expertise is delivered through flexible solutions designed to help clients achieve their sustainable investing and impact goals. Please refer to our capabilities section below.
Leadership in Sustainability
MSIM ESG COMMITTEE
Co-chaired by the Co-Head and Chief Investment Officer of the Solutions & Multi-Asset Group and the Global Head of Risk & Analysis, MSIM’s ESG Committee is composed of senior representatives from the division’s Sustainability team, the Chief Operating Officer’s Office and other stakeholders who oversee and support MSIM’s sustainable investment strategies. Its responsibilities include overseeing MSIM’s ESG goals and strategy, product development and launches, ESG-related engagement program, trainings as well as technology and data initiatives.
Investment Management Sustainability Team
The Sustainability Team is responsible for developing MSIM's ESG investment integration standards, helping to launch thematic Sustainable Funds, advising clients on sustainability matters, and producing sustainability data, tools and research in support of our investment teams. The Sustainability Team also comprises the Global Stewardship function, which coordinates our stewardship and investee engagement agenda.
Sustainable Investing Team Leads
Our portfolio management teams are ultimately responsible for evaluating the ESG risks and opportunities of each investment decision or asset, and the portfolio as a whole. In doing so, they leverage ESG information and insights in a way that is aligned with their existing investment philosophy and strategy. Our largest teams or asset class platforms have appointed at least one dedicated ESG research specialist to lead this work for the relevant group.
Morgan Stanley Institute1 for Sustainable Investing
The Institute is dedicated to accelerating the adoption of sustainable investing by partnering across the firm to foster innovation, help develop the next generation of sustainable investing leaders and generate insights that inform and empower investors.
Capabilities
MSIM offers a range of customized and dedicated sustainable investing capabilities spanning multi-asset and private markets. For example, within customized multi-asset portfolios, we may customize a basket of securities or funds according to the particular sustainability preferences of the client. On the private markets side, we offer thematic impact investing opportunities across a range of focus areas, including climate and social impact.
Insights
View all Sustainable InsightsResources
- 2020 PRI Transparency Report
- 2022 U.K. Stewardship Code Report
- Hong Kong Stewardship Code Statement
- Morgan Stanley 2021 Climate Report
- 2021 Sustainability Report
- MSIM FMIL Frankfurt Branch – SFDR – Statement on Principal Adverse Impacts of Investment Advice on Sustainability Factors
- MSIM FMIL Statement on principal adverse impacts of investment decisions on sustainability factors 2022
- MSIM Climate Report 2022
- MSIM Transparency and Assessment Reports from the Principles for Responsible Investment