Morgan Stanley Climate Goals

Morgan Stanley's biggest climate impact is the emissions linked to the companies and projects it lends to and invests in. This page covers its net-zero goal, what changed in 2025, and how carbon removal fits. Last updated October 2026.

Morgan Stanley's Climate Goals at a Glance

• Target: net-zero financed emissions by 2050, set in 2020.
• Interim targets: targets for 2030 in several high-emitting sectors, which Morgan Stanley revised, saying the global economy and policy are not on track to limit warming to 1.5°C.
• 2025 change: Morgan Stanley left the Net-Zero Banking Alliance in January 2025 and said its commitment to net zero was unchanged.

Net-Zero Financed Emissions by 2050

Financed emissions are the emissions of the companies and projects a bank lends to or invests in, and they are usually far larger than the bank's own. Morgan Stanley committed in 2020 to net-zero financed emissions by 2050 and has set interim sector targets, and says it will keep reporting progress toward its 2030 interim targets.

Leaving the Net-Zero Banking Alliance

Morgan Stanley was a founding member of the Net-Zero Banking Alliance (NZBA) in April 2021 and left in early January 2025, part of a wave of US bank exits following political pressure. It said its net-zero commitment remains unchanged.

Carbon Removal and Climate Investing

Morgan Stanley Investment Management offers climate-focused strategies, including 1GT Climate, which invests in companies working to avoid or remove greenhouse gases. To understand the removal methods behind these investments, see our Carbon Dioxide Removal guide and Direct Air Capture guide.

Sustainable Finance and Client Services

Morgan Stanley offers sustainable investment products and climate advisory services for clients. Check its latest sustainability report for current figures on capital mobilised.

Transparency and Reporting

Morgan Stanley publishes annual sustainability and climate disclosures covering financed emissions and progress on its interim targets.

Challenges and Opportunities

• Measuring financed emissions across different sectors and regions.
• Balancing client demand with climate targets in a changing policy environment.
• Directing capital to permanent carbon removal at scale.

Frequently Asked Questions About Morgan Stanley's Climate Goals

What is Morgan Stanley's net-zero target?

Net-zero financed emissions by 2050, with interim 2030 sector targets.

Did Morgan Stanley leave the Net-Zero Banking Alliance?

Yes, in January 2025, while saying its net-zero commitment is unchanged.

What are financed emissions?

The greenhouse gas emissions of the companies and projects a bank finances or invests in, counted in the bank's own footprint.

How does Morgan Stanley compare with other banks?

Compare with JPMorgan Chase.

Source

ESG Today: Morgan Stanley joins peers in leaving climate group.