Morgan Stanley : 2024 Sustainability Report – MarketScreener

2024 Sustainability Report

3

Introduction

1. Our Business

2. About This Report

3. The Integrated Firm

4. Our Approach to Sustainability

8 2024 Sustainability Highlights

9

Sustainable Finance

9 Sustainable Finance Target
13 Institutional Securities
16 Wealth Management
19 Investment Management

21

Our Workforce

22 Building Our Workforce
22 Developing Our Workforce

1. Investing in Our Workforce

   23

   Climate
   

2. Climate Strategy

3. Our Climate Ambitions

24 Mobilize Capital for Low-Carbon and Green Solutions

24 Strive Toward Our Financed Emissions Targets

26 Maintain Carbon Neutral Status

1. Climate-Related Engagements

2. Climate Risk Management

31 Climate Metrics and Targets

32 Financed Emissions

36 Operational Emissions

37

Impact in Our Communities

38 Community Development Finance
40 Community Affairs

1. Institute for Inclusion

2. Institute for Sustainable Investing

3. Inclusive & Sustainable Ventures

   45

   Governance and Risk Management
   

4. Sustainability Oversight

5. Business Ethics

6. Stakeholder Engagement

7. Employee Education and Engagement

8. Risk Management

   50

   Appendices
   

9. SASB Index

56 TCFD Index
58 GFANZ Index
60 Financed Emissions Methodology
62 Operational Emissions Methodology
64 Independent Accountant’s Review Report
67 Important Notices

TABLE OF CONTENTS

INTRODUCTION SUSTAINABLE FINANCE OUR WORKFORCE CLIMATE IMPACT IN OUR COMMUNITIES GOVERNANCE AND RISK MANAGEMENT APPENDICES

Our Business

Morgan Stanley is a leading global financial services firm, with approximately 80,000 employees and offices in 42 countries.1

We provide an array of products and solutions across three core business segments-Institutional Securities, Wealth Management and Investment Management.

INSTITUTIONAL SECURITIES

Institutional Securities provides a variety of products and services to corporations, governments, financial institutions and ultra and high net worth clients.

Investment Banking services consist of capital raising and financial advisory services, including the underwriting

of debt, equity securities and other products, as well as advice on mergers and acquisitions, restructurings and project finance. Our Markets business, which comprises Equity and Fixed Income, includes sales, financing, prime brokerage, market-making, Asia wealth management services and certain business-related investments.

Lending activities include originating corporate loans and commercial real estate loans, providing secured lending facilities, and extending securities-based and other financing to clients. Other activities include research.

WEALTH MANAGEMENT

Wealth Management provides a comprehensive array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Wealth Management covers: financial advisor-led brokerage, custody, administrative and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; securities-based lending, residential and commercial real estate loans and other lending products; banking; and retirement plan services.

INVESTMENT MANAGEMENT

Investment Management provides a broad range of investment strategies and products that span geographies, asset classes, and public and private

markets to a diverse group of clients across institutional and intermediary channels. Strategies and products, which are offered through a variety of investment vehicles, include equity, fixed income, alternatives and solutions, and liquidity and overlay services. Institutional clients include defined benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, third-party fund sponsors and corporations. Individual clients are generally served through intermediaries, including affiliated and non-affiliated distributors.

Financial Performance

Net Revenues by Segment2

SEGMENT (USD millions) 2022 2023 2024

Net Income Applicable to Morgan Stanley by Segment3

SEGMENT (USD millions) 2022 2023 2024

Institutional Securities	$24,393	$23,060	$28,080
Wealth Management	$24,417	$26,268	$28,420
Investment Management	$5,375	$5,370	$5,861
Firmwide	$53,668	$54,143	$61,761

Institutional Securities	$5,242	$3,453	$6,666
Wealth Management	$5,139	$5,022	$5,888
Investment Management	$660	$639	$859
Firmwide	$11,029	$9,087	$13,390

For more information, see our Annual Report on Form 10-K for the year ending December 31, 2024 (2024 Form 10-K).

1 The data included in this report is as of December 31, 2024 unless otherwise stated.

2 The amounts represent the contribution of each business segment to the total of the applicable financial category and may not sum to the firmwide total presented due to intersegment eliminations.

3 Ibid.

INTRODUCTION SUSTAINABLE FINANCE OUR WORKFORCE CLIMATE IMPACT IN OUR COMMUNITIES GOVERNANCE AND RISK MANAGEMENT APPENDICES

About This Report4

The Morgan Stanley Sustainability Report provides an annual overview of our firm’s approach to and performance on sustainability topics.

Content in this report focuses on sustainability activities across the firm in 2024. As such, information is as of December 31, 2024 unless otherwise stated. Our data, content and narrative are informed by the Sustainability Accounting Standards Board (SASB) standards for Investment Banking and Brokerage, Asset Management and Custody Activities, and Commercial Banking. The climate section is informed by the recommendations of the Task Force on

Climate-Related Financial Disclosures (TCFD).5 This report’s appendices on SASB and TCFD map

certain Morgan Stanley disclosures related to these frameworks’ indicators and recommendations.

Both frameworks are now part of the International Sustainability Standards Board (ISSB) under the International Financial Reporting Standards (IFRS) Foundation. Morgan Stanley is a member of the IFRS Sustainability Alliance and monitors the standards being developed by the ISSB. We have included

an index that maps the content in this report to the recommendations of The Glasgow Financial Alliance for Net Zero (GFANZ) transition planning guidance for financial institutions.

We refer to both targets and goals interchangeably. External factors may impact the achievement of these objectives. Those factors include, but are not limited to: geopolitical, macroeconomic and market conditions; future legislation and regulations; and the attainment of targets and goals by our clients. For more information, please refer to the Important Notices section.

In addition, references throughout this Report to webpages, policies or reports (including hyperlinks) are provided for the reader’s reference. None of the webpages, policies or reports referenced or discussed herein (including content accessible via hyperlinks) are deemed part of, or incorporated by reference in, this Report.

Morgan Stanley is proud to do first-class business in a first-class way. We are committed to treating our clients fairly, and to providing financial services to our clients without regard to political, social

or religious viewpoints. We make our business decisions independently and based on sound business principles and applicable law.

For more information on our sustainability-related activities, visit our related websites:

• Morgan Stanley Sustainability Publications

• Morgan Stanley Investor Relations

• Morgan Stanley Corporate Governance

• Sustainability at Morgan Stanley Investment Management

• Morgan Stanley Wealth Management Investing with Impact

4 Throughout this report, we present metrics and statements, some of which are not subject to independent third-party limited assurance. Management’s Assertion in the Appendix includes a complete listing of metrics that were independently reviewed by a third party. See the Independent Accountant’s Review Report.

5 Although the disclosures in this report may be considered significant or material based on disclosure recommendations and broader definitions of “materiality” used by certain voluntary frameworks and reporting guidelines or those in non-U.S. jurisdictions, this should not be read as equating to materiality as that concept is used in Morgan Stanley’s periodic filings with the U.S. Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. Refer to the Important Notices section of the report for more information.

INTRODUCTION SUSTAINABLE FINANCE OUR WORKFORCE CLIMATE IMPACT IN OUR COMMUNITIES GOVERNANCE AND RISK MANAGEMENT APPENDICES

“

Guided by our culture and core values, Morgan Stanley takes an integrated approach to creating sustainable value for our clients, shareholders, communities and employees.

Ted Pick

Chairman and Chief Executive Officer, Morgan Stanley

The Integrated Firm

Throughout 2024, teams across Morgan Stanley came together to deliver unique, integrated offerings to our clients. Our ability to deliver the Integrated Firm allows us to capture new opportunities that aim to bring positive long-term results not only to our clients and shareholders but also to the environment and society.

Four Pillars of Morgan Stanley: The Integrated Firm

1

STRATEGY

Clear and Consistent Strategy in Support of Clients

2

CULTURE

Rigor, Humility and Partnership

3

FINANCIAL STRENGTH

Strong Capital, Liquidity and Earnings

4

GROWTH

Investing Across the Firm

CASE STUDIES

Pension Fund Solution: The Equities team, the Global Sustainability Office (GSO) and the Quantitative Investment Strategy Research team partnered to help a large pension fund that wanted to combine

a traditional equity factor investment strategy

with one that invested in “high-impact” companies transitioning toward net-zero carbon emissions.

Geospatial Digital Application: The Fixed Income, GSO and Research teams partnered to enhance digital applications across the firm, including live hurricane tracking in our proprietary geospatial application. The application helped enable users to track potential impacts to real asset portfolios during an active 2024 hurricane season.

Source: marketscreener.com