Morgan Stanley has pledged to start reporting the carbon emissions that result from its investments and loans.
It has become the first US-based global bank to join the Partnership for Carbon Accounting Financials (PCAF) and its Steering Committee, focused on measuring financed emissions.
PCAF is a collaboration to standardise carbon accounting for the financial sector and is used by asset owners and managers as well as banks to support a broad range of climate initiatives.
Morgan Stanley will also lend insights and expertise to help PCAF develop the global accounting standard that can be used by all financial institutions to measure and reduce their climate impact.
Audrey Choi, Morgan Stanley’s Chief Sustainability Officer and CEO of the Morgan Stanley Institute for Sustainable Investing said: “We are excited to join PCAF and to support the important work they are leading to build a methodology for global banks’ efforts to track and measure climate change risks.”