First Major US Bank Commits to Climate Change Accountability

In a Politico article, Guidehouse discusses the significance of Morgan Stanley joining the Partnership for Carbon Accounting Financials

Morgan Stanley is the first major US bank to publicly disclose how much its loans and investments contribute to climate change. The bank recently joined Partnership for Carbon Accounting Financials (PCAF), a global body that helps organizations count greenhouse gas emissions from financial organizations. 

In an article for Politico, Giel Linthorst, director at Guidehouse and executive director of PCAF, discussed the significance of Morgan Stanley’s decision to join PCAF. 

Linthorst said financial institutions risk being left being stranded with billions in assets as nations adopt more aggressive climate policies. 

According to Rainforest Action Network, since 2016, 35 banks have financed $2.7 trillion into fossil fuel projects, with Morgan Stanley accounting for nearly $92 billion of that total. 

“What I’ve seen with measuring financed emissions is that it really is a game changer to many financial institutions,” Linthorst said. “Showing where emissions are in your portfolio really triggers discussions about what you can do about it.”

Read the Politico Article

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