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Morgan Stanley Survey Finds Sustainable Investing Momentum High Among Asset Owners

A majority of individual asset owners are now pursuing sustainable
investing to manage risk and drive returns, according to a new survey
published today by the Morgan Stanley Institute for Sustainable
Investing and Morgan Stanley Investment Management. The new survey
polled 118 public and corporate pensions, endowments, foundations,
sovereign wealth entities, insurance companies and other large asset
owners worldwide, 60% of which had total assets over $10 billion. The
survey gathered insights about trends, motivations, challenges and
implementation approaches in sustainable investing. By rounding out the
sustainable investing landscape with the views of asset owners, this
work builds on Morgan Stanley’s previous Sustainable Signals studies
focused on individual investors and asset managers.

“As interest in sustainable investing continues to rise, we see
investors pursuing a range of approaches with their assets,” said Rui de
Figueiredo, Co-Head and CIO of the Solutions and Multi-Asset business at
Morgan Stanley Investment Management and Head of the Division’s
Sustainability Council. “The growing sophistication among asset owners
about when and how to integrate ESG into the investment process creates
opportunities to tailor strategies and provide customized portfolio
solutions that help investors meet their financial and impact goals.”

Asset owners cite risk management and potential for returns as top
drivers of interest in sustainable investing. But despite the
recognition of these opportunities, asset owners still highlighted the
need for better data and investment information as a challenge to
greater uptake.

“The survey results identify a strong commitment to incorporating ESG
criteria into investment strategies among asset owners. However, there
is still a gap between interest and implementation – with investors
citing access to quality ESG data as a top concern,” said Hilary Irby,
Co-Head of Global Sustainable Finance at Morgan Stanley. “With this
growing momentum in sustainable investing, third-party managers have an
opportunity to increase implementation by improving reporting tools and
education, and developing capabilities to align portfolios with owners’
unique objectives.”

Results from the survey identify sustainable investing trends reflecting
the increasing growth in the impact investing sector as a whole. Key
findings include:

For more information, please see Sustainable
Signals: Asset Owners Embrace Sustainability and report.

The Morgan Stanley Institute for Sustainable Investing

The Morgan Stanley Institute for Sustainable Investing builds scalable
finance solutions that seek to deliver competitive financial returns
while driving positive environmental and social impact. The Institute
creates innovative financial products, thoughtful insights and capacity
building programs that help maximize capital to create a more
sustainable future. For more information about the Morgan Stanley
Institute for Sustainable Investing, visit www.morganstanley.com/sustainableinvesting.

Morgan Stanley Investment Management

Morgan Stanley Investment Management, together with its investment
advisory affiliates, has more than 581 investment professionals around
the world and $469 billion in assets under management or supervision as
of March 31, 2018. Morgan Stanley Investment Management strives to
provide outstanding long-term investment performance, service and a
comprehensive suite of investment management solutions to a diverse
client base, which includes governments, institutions, corporations and
individuals worldwide. For further information about Morgan Stanley
Investment Management, please visit www.morganstanley.com/im

Morgan Stanley

Morgan Stanley (NYSE: MS) is a leading global financial services firm
providing investment banking, securities, wealth management and
investment management services. With offices in more than 41 countries,
the Firm’s employees serve clients worldwide including corporations,
governments, institutions and individuals. For more information about
Morgan Stanley, please visit www.morganstanley.com.

1Poll commissioned by Morgan Stanley but independently
conducted by Greenwald & Associates, November 3 – December 19, 2017

Disclosure:

This material was published on June 11, 2018. All information in this
material has been prepared by Morgan Stanley Investment Management and
the Morgan Stanley Institute for Sustainable Investing for informational
purposes only and is not a solicitation of any offer to buy or sell any
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investment advice. It has been prepared without regard to the individual
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The returns on a portfolio consisting primarily of Environmental, Social
and Governance (“ESG”) aware investments may be lower or higher than a
portfolio that is more diversified or where decisions are based solely
on investment considerations. Because ESG criteria exclude some
investments, investors may not be able to take advantage of the same
opportunities or market trends as investors that do not use such
criteria.

Morgan Stanley, its affiliates and Morgan Stanley Financial Advisors do
not provide tax, accounting or legal advice. Individuals should consult
their tax advisor for matters involving taxation and tax planning and
their attorney for matters involving legal matters.

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