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Morgan Stanley has committed to net-zero emissions in its lending portfolio by 2050, a move that pushes the U.S. banking sector closer to European standard-bearers and further complicates the outlook for fossil fuel emitters looking for a loan.
With $20.12 billion in commitments to energy and utility companies, the investment banking giant only accounts for a small fraction of the fossil-fuel lending that the six largest U.S. banks do today — see our Chart of the Week for the breakdown. However, its commitment represents the latest step from the banking industry to back away from the heaviest fossil-fuel users.
"Fossil fuels do not have a future," said C.B. Bhattacharya, a professor of sustainability and ethics at the University of Pittsburgh. "Even banks, which are perennially slow to adapt to these things, they have woken up and have realized that it's now or never."
Chart of the Week
Bank's new climate goals add to hurdles for fossil fuel producers, users
Morgan Stanley recently became the first major U.S. investment bank to pledge it would achieve a net-zero emission goal in its lending portfolio by 2050, in line with the goals of the Paris Agreement on climate change.
At odds with Biden's energy policy, Trump sees jump in oil and gas campaign cash
Executives, employees and other donors across the oil-and-gas sector are pumping their money into President Donald Trump's campaign with just weeks to go in the 2020 presidential race. According to data from the Center for Responsive Politics, Trump's campaign had received more than $12 million in donations from the industry as of Sept. 21.
Brazil's Pride Bank pioneers as LGBTQ focused digital bank
In August, Pride Bank, a Brazil-based lender focused on serving the LGBTQ community, launched with a goal of attracting at least 1 million clients. CEO Marcio Orlando spoke with S&P Global Market Intelligence about the bank's plan to grow while driving social change.
ESG mandates, crisis resilience driving money into offshore wind — investors
Shell's stock price dips after oil major outlines restructuring, job cuts
Conn. governor signs bills on utilities' storm recovery, environmental justice
Calif. governor signs bill mandating racial, LGBTQ corporate board diversity
Group launches platform to expose sexual harassment in Hollywood
Alphabet settles shareholder lawsuits over alleged sexual misconduct cover-up
Lack of standardized ESG data may hide material risks, OECD says
Canadian institutional investors pledge to promote diversity, inclusion
CEO appointment finally fills leadership vacuum at France's Engie
Racism and the Economy
Federal Reserve Banks
Sustainable Investment Forum North America 2020
Sustainability Virtual Week
Forum on Green Finance and Investment
OECD Centre on Green Finance and Investment
ESG & Sustainability Forum
ESG Investment North America
Responsible Business USA 2020
Sustainable Returns: ESG Investing
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