Morgan Stanley

The institution publishes an engagement/stewardship report on sustainability impact topics and has a publicly available policy statement requiring suppliers to respect ILO core labour rights. It discloses its approach to lobbying and political engagement, with decision-making and oversight for its sustainability strategy assigned to the highest governance body. Performance criteria for senior executive remuneration are linked to specific sustainability targets, and responsibility for implementing the sustainability strategy is assigned to various functions, teams, or committees.

The stewardship policy includes client and stakeholder engagement, advocacy, and partnerships, alongside a commitment to respect human rights. A list of trade associations, including FSB, is disclosed, and the institution monitors its scope 1-2 emissions.

It also discloses the monetary amount or share of products, services, and capital provided to usually excluded groups and to small- and medium-sized enterprises.

The institution has a publicly available policy statement committing to respect specific workers’ rights but could use stronger language. It has the opportunity to disclose how it determines a living wage in its operating regions. Although there is a stewardship policy supporting environmental transitions and social best practices, alignment with the sustainability strategy is needed. Time-bound and measurable targets for “green” solutions exist, but specifying the share for climate solutions is an opportunity. Engagement with clients on nature allows for influencing strategies for nature protection and restoration. While information on financed emissions is disclosed, detailing this in monetary terms is an opportunity. Monitoring of scope 3 emissions could be expanded to cover additional categories with rationale for exclusions. The methodology for carbon footprint calculation is partially detailed, but full coverage of emissions, data types, sources, and standards is recommended.

A breakdown of clients by income group is suggested, as is disclosing operations by country of operation. The risk assessment process should include risks related to ILO fundamental rights, with a process for mitigating identified risks. Identifying social risks associated with the net zero transition is also recommended.

Lastly, providing an example of conclusions and actions taken regarding salient human rights issues from assessment processes in the last three years is advised.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.