Morgan Stanley · NYSE:MS
Morgan Stanley — ESG Presentation (2020)
39 slides from Morgan Stanley's sustainability presentation, 2020
Slide 1: Investing with Impact
Investing with Impact Create Positive Economic, Social and Environmental Impact [Presenter(s) Name] [Presenter Title] [Date]
Slide 2: Every dollar you send into the world makes an impact
Every dollar you send into the world makes an impact. What do you want your impact to be? INVESTING WITH IMPACT 2
Slide 3: We'll Be Talking About
We’ll Be Talking About WHAT IMPACT THE GROWTH OF INDUSTRY INVESTING INVESTING PERFORMANCE BACKDROP IS WITH IMPACT WHAT’S THE INVESTING INVESTING WITH ANALYSIS AND AVAILABLE AT WITH IMPACT IMPACT THEMES THOUGHT LEADERSHIP MORGAN STANLEY FRAMEWORK EVALUATING AMD PORTFOLIO IMPLEMENTATION MEASURING IMPA
Slide 4: Industry Backdrop
Morgan Stanley SECTION 1 Industry Backdrop
Slide 5: What Is Investing with Impact?
What Is Investing with Impact? Investments made with the intention to generate a measurable, FINANCIAL GOALS IMPACT GOALS Investing positive social and/or Financial Positive social environmental impact performance and/or with alongside a financial return. driven by economic environmental Impact fund
Slide 6: Investing for Positive Impact Is Not New
Investing for Positive Impact Is Not New We Are the First Platform Led By a Major Financial Institution Solely Dedicated To Sustainable Investing (1) Quakers Friends Fiduciary Corporation $625 billion in Bloomberg adds Morgan Stanley founded and adopts investments sustainability news Morgan Stanley
Slide 7: Mainstream Investors Have a Range of Impact Motivations
Mainstream Investors Have a Range of Impact Motivations Mainstream Investors INDIVIDUALS ENTREPRENEURS RELIGIOUS INSTITUTIONS FOUNDATIONS/ NON-PROFITS Women and men across Seeking innovative investment Incorporating faith-based generations, especially options that mitigate risk, have investing guide
Slide 8: Millennial Investors Are Driven to Sustainable Investing
Millennial Investors Are Driven to Sustainable Investing 95% 1.5x 2x 2x Millennials say they Millennials Millennials were 2x Millennials invested in are interested in purchased from a more likely to have companies targeting sustainable sustainable brand sought employment social/environmental investi
Slide 9: Women Are Seeking to Create Positive Impact
Women Are Seeking to Create Positive Impact Women reported 84% 56% 89% Women say they Women focus at Women millennials that 43% of their are interested in least partially on say they are portfolios were socially responsible making a positive interested in invested in investing impact with their soci
Slide 10: Proof in the Performance
Proof in the Performance Indices that incorporate environmental, social and governance (ESG) factors have generally performed in line with, or better than, conventional indices. For example, $1 invested in line with the holdings reflected in the sustainable index in 1990 grew to $2,024 versus $1,770
Slide 11: Relative Volatility
Relative Volatility Indices that incorporate environmental, social and governance (ESG) factors have witnessed lower volatility than conventional indices. Median Total Returns of Sustainable and Traditional Funds 2004–2018 Annual Return (%) 40 30 20 10 0 (10) (20) (30) (40) 2004 2005 2006 2007 2008
Slide 12: What's Available at Morgan Stanley
SECTION 2 What’s Available at Morgan Stanley
Slide 13: Investing with Impact Is Not a One-Size-Fits-All Approach
Investing with Impact Is Not a One-Size-Fits-All Approach Our framework clarifies the spectrum of approaches that investors of all sizes can pursue MINIMIZE OBJECTIONABLE IMPACT CREATE TARGETED IMPACT Restriction Screening Environmental, Social Thematic Exposure Impact Definition & Governance (ESG)
Slide 14: How ESG Data Informs Investment Decisions
How ESG Data Informs Investment Decisions ESG dimensions and data are a tool to look for value (risks and opportunities), embedded in analyst opinions and company valuations. Some ESG criteria include, but are not limited to: ENVIRONMENTAL PRACTICES SOCIAL PRACTICES GOVERNANCE PRACTICES Climate Disc
Slide 15: Restriction Screening Approach
Restriction Screening Approach MINIMIZE OBJECTIONABLE IMPACT CREATE TARGETED IMPACT Restriction Screening Environmental, Social & Thematic Exposure Impact Investing Governance (ESG) Integration Intentionally avoid certain Proactively consider ESG criteria Themes solving sustainability- Investment fu
Slide 16: ESG Integration Approach
ESG Integration Approach MINIMIZE OBJECTIONABLE IMPACT CREATE TARGETED IMPACT Restriction Screening Environmental, Social & Thematic Exposure Impact Investing Governance (ESG) Integration Intentionally avoid certain Proactively consider ESG criteria Themes solving sustainability- Investment funds de
Slide 17: Thematic Integration Approach
Thematic Integration Approach MINIMIZE OBJECTIONABLE IMPACT CREATE TARGETED IMPACT Restriction Screening Environmental, Social & Thematic Exposure Impact Investing Governance (ESG) Integration Intentionally avoid certain Proactively consider ESG criteria Themes solving sustainability- Investment fun
Slide 18: Impact Integration Approach
Impact Integration Approach MINIMIZE OBJECTIONABLE IMPACT CREATE TARGETED IMPACT Restriction Screening Environmental, Social & Thematic Exposure Impact Investing Governance (ESG) Integration Intentionally avoid certain Proactively consider ESG criteria Themes solving sustainability- Investment funds
Slide 19: Shareholder Engagement and Advocacy
Shareholder Engagement and Advocacy A critical tool employed by managers across the Investing with Impact Framework Drive positive environmental and/or social change through active and continuous dialogue with corporates Shareholder Engagement Shareholder Engagement Resources at Morgan Stanley Appro
Slide 20: Investing with Impact Thematic Exposure
Investing with Impact Thematic Exposure We help you clarify the range of approaches and how to implement investment solutions based on theme CLIMATE CHANGE AND FAITH-BASED GENDER DIVERSITY MISSION ALIGN 360° FOSSIL FUEL AWARE INVESTING INVESTING INVESTING INVESTING Align investment portfolio Promote
Slide 21: Climate Change and Fossil Fuel-Aware Investing
Climate Change and Fossil Fuel-Aware Investing Investors interested in proactively seeking opportunities to enhance environmental impact without sacrificing market-rate return have access to a range of climate change and fossil fuel-aware investments. Understanding The Risks & Opportunities Developi
Slide 22: Faith-Based Investing: Building Value From Values
Faith-Based Investing: Building Value From Values Faith-based investors were among the first to harness capital markets to influence corporate behavior through restriction screening and shareholder engagement. While there is no “one-size-fits-all” approach to faith-based investing, we partner with y
Slide 23: Aligning Jewish Values with Investing and Philanthropy
Aligning Jewish Values with Investing and Philanthropy Morgan Stanley hosted the first-ever Jewish Values Consortiums, a series of events across the United States that brought together leaders in the Jewish, investment and philanthropic communities to discuss what it means to give and invest along t
Slide 24: The Gender Advantage: Integrating Diversity Into Financial Decisions
The Gender Advantage: Integrating Diversity Into Financial Decisions A growing body of evidence points to better financial performance associated with higher levels of gender diversity, defined as a balance in representation, empowerment and economic opportunity. What Is Gender Diversity? Gender Div
Slide 25: Mission Align 360°
Mission Align 360° We help forward-thinking organizations examine all 360 degrees of the organization – including human, financial and philanthropic capital for allocation toward their mission while generating positive environmental and social impact. FINANCIAL CAPITAL PHILANTHROPIC CAPITAL HUMAN CA
Slide 26: Mission Align 360°: Implementation Roadmap at a Glance
Mission Align 360°: Implementation Roadmap at a Glance Organizations seeking to align human, financial and philanthropic capital with mission can consider the following process as a guide that can be iterated upon and customized based on the organization’s goals and objectives: AFFIRM EXAMINE DEVELO
Slide 27: Investing with Impact in Action
Investing with Impact in Action Our portfolio solutions are available and customizable to a wide array of client segments PORTFOLIO NAME DESCRIPTION INVESTMENT MINIMUM Custom Portfolios Tailored to match client-specific financial and impact goals $1,000,000 Firm-Discretionary Multi-asset class portf
Slide 28: Investing with Impact Questions Incorporated into Due Diligence for All Managers
Investing with Impact Questions Incorporated into Due Diligence for All Managers Sample Questions from Global Investment Manager Analysis (GIMA)’s Initial Request for Information • What Investing with Impact approaches are Over 300 Asset employed by the manager (Restriction Managers covered Screenin
Slide 29: A Higher Bar for the Investing with Impact Platform
A Higher Bar for the Investing with Impact Platform Morgan Stanley’s Global Investment Manager Analysis team has a proprietary process to analyze each manager’s approach to Investing with Impact across 5 key dimensions PERSONNEL AND INVESTMENT PROCESS ANALYTICAL BUSINESS PERFORMANCE FIRM AND IMPLEME
Slide 30: Investing with Impact Analysis and Thought Leadership
Investing with Impact Analysis and Thought Leadership The foundational guiding principles of our program and solutions IMPACT OUTCOMES Our quarterly publication addresses some of the timeliest topics across the Investing with Impact spectrum. THEMATIC RESEARCH Exploring a range of themes, such as Ca
Slide 31: Implementation
Morgan Stanley Implementation
Slide 32: A Tailored Approach to Implementation
A Tailored Approach to Implementation MINIMIZE OBJECTIONABLE IMPACT CREATE TARGETED IMPACT RESTRICTION SCREENING ENVIRONMENTAL, SOCIAL THEMATIC EXPOSURE IMPACT INVESTING & GOVERNANCE (ESG) INTEGRATION Intentionally avoid certain Proactively consider ESG criteria Themes solving sustainability- Invest
Slide 33: Understanding Your Portfolio's Impact
Understanding Your Portfolio’s Impact Measurement and reporting are central to advancing the positive impact of your investments. You cannot manage what you are not measuring. Investors have long sought the ability to understand the environmental and social impact of their investments; however, impa
Slide 34: Introducing Morgan Stanley Impact Quotient
Introducing Morgan Stanley Impact Quotient® Available exclusively to Morgan Stanley clients, Morgan Stanley Impact Quotient ® is a new suite of capabilities designed to help you understand the environmental and social impact of your investments. DISCOVER ASSESS ALIGN Determine your unique impact pre
Slide 35: Evaluate and Enhance the Alignment of Your Investments
Evaluate and Enhance the Alignment of Your Investments Why Engage With Morgan Stanley Who Is Morgan Stanley Impact Quotient® Impact Quotient®? Designed for? Ensures your Financial Advisor #1 understands your unique impact priorities. Individuals seeking Families seeking to to generate positive align
Slide 36: Bottom Line: The Future Is Bright for Investing with Impact
Bottom Line: The Future Is Bright for Investing with Impact Companies are improving 71% 86% their competitive position 95% of individual investors of individual investors by adjusting their of institutional asset believe they can effect believe that corporate business strategies to owners are integr
Slide 37: Questions for Families and Individuals to Consider
Questions for Families and Individuals to Consider • What social and environmental risks and opportunities am I passionate about? • What am I already doing through philanthropy, business, and/or advocacy to address these? • What Investing with Impact approach resonates with FOR FAMILIES my impact go
Slide 38: Questions for Institutions to Consider
Questions for Institutions to Consider • What social and environmental risks and opportunities does my organization help solve? • How can these be addressed through investments? • Are there any investments that my organization currently makes that we consider Investing with Impact? • What are the le
Slide 39: Disclosures
Disclosures This material does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this material may not be appropriate for all inve