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Second-Party Opinion Download

Project Details

Project

Morgan Stanley Sustainable Issuance Framework Second-Party Opinion (2025)

Client

Morgan Stanley

Project Type

Sustainability Bond/Loan

Industry Group

Diversified Financials

Use of Proceeds

Renewable energy; Energy efficiency; Green buildings; Clean transport; Water/waste water management; Affordable housing; Education;

Location

U.S.

Evaluation Date

Jan 2025

Evaluation Summary

Sustainalytics is of the opinion that the Morgan Stanley Sustainable Issuance Framework is credible, impactful and aligned with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021 and Social Bond Principles 2023. This assessment is based on the following:  

USE OF PROCEEDS

The eligible categories for the use of proceeds – Renewable Energy, Energy Storage, Green Buildings, Clean Transportation, Sustainable Water and Wastewater Management, Affordable Housing, and Access to Education – are aligned with those recognized by the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments1 in the eligible categories are expected to lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 4, 6, 7, 9, 10 and 11. 

PROJECT EVALUATION AND SELECTION

Morgan Stanley’s business units will be responsible for identifying and proposing eligible projects. Morgan Stanley’s Sustainable Issuance Working Group will be responsible for reviewing the eligible projects, in consultation with its business units. Morgan Stanley’s ESG Committee will be responsible for the overall supervision of the project evaluation and selection process. The ESG Committee includes representatives from various functions such as the Global Sustainability Office and Finance and Risk Management divisions. Morgan Stanley has a process in place to address environmental and social risks associated with the projects financed. Sustainalytics considers the project selection process to be in line with market practice. 

MANAGEMENT OF PROCEEDS

Morgan Stanley will manage the proceeds on a portfolio basis. On an ongoing basis, Morgan Stanley’s Treasury department will monitor the eligible portfolio against the gross proceeds from the outstanding sustainable instruments, as per the Framework. The eligible portfolio will be determined in accordance with U.S. GAAP. In the case of insufficient eligible projects, Morgan Stanley will temporarily hold the balance of the unallocated amount in cash, cash equivalents, and other high quality liquid assets in a segregated account established for tracking purposes until the unallocated amount can be allocated to the eligible portfolio. This is in line with market practice. 

REPORTING

Morgan Stanley intends to report on the allocation of proceeds, on its website or in its ESG Report on an annual basis until maturity. Allocation reporting will include the total amount of sustainable instruments outstanding, reported amounts of the assets in the eligible portfolio determined in accordance with U.S. GAAP, the amount of unallocated proceeds, if any, and the breakdown of the eligible portfolio by eligible category. In addition, where feasible, Morgan Stanley will report on the anticipated or estimated environmental and social impact of the eligible portfolio. Sustainalytics views this approach to be aligned with market practice. 

https://mstar-sustops-cdn-mainwebsite-s3.s3.amazonaws.com/docs/default-source/spos/morgan-stanley-sustainable-issuance-framework-second-party-opinion.pdf?sfvrsn=95d7ad99_1