Morgan Stanley has announced plans to reach net-zero financed emissions by 2050 in three sectors.

The bank has set 2030 interim targets for three sectors: Auto Manufacturing, Energy and Power. For each sector, the bank says it will examine its financed emissions relative to client financing commitments. Each sector target covers Scope 1, Scope 2 and Scope 3 emissions and all greenhouse gases and is inclusive of the corporate lending portfolio. The targets are:

Auto Manufacturing: -35%
Energy: -29%
Power: -58%

MS will report progress towards its 2030 interim targets annually in its Taskforce for Climate-related Financial Disclosures reports. The first set of financed emissions data is expected to be released in the 2022 report.

Audrey Choi, Morgan Stanley’s Chief Sustainability Officer said “The recent report from the Intergovernmental Panel on Climate Change makes clear the urgency of addressing greenhouse gas emissions, and that near-term reductions are necessary if the world is to limit global temperature rise to 1.5°Celsius. Morgan Stanley’s interim net-zero targets set us on that path toward a more sustainable and prosperous future.”

“Morgan Stanley is committed to working with our clients to accelerate sustainable efforts by offering leading products, solutions and insights to facilitate their low carbon transition plans. Today’s announcement builds upon the Firm’s decade plus leadership in sustainable investing”.