At Morgan Stanley, we believe private sector capital can play a key role in driving large-scale solutions to the most critical challenges to widespread prosperity and well-being. Morgan Stanley’s Institute of sustainable investment – http://www.morganstanley.com/sustainableinvesting/
Earlier this month, Morgan Stanley announced that they will create a new center of sustainability that many experts are seeing as a sign that global financing market is finally getting serious about investment in all that is sustainability. This multi-billion dollar institute for sustainable investment will like most large institutions attract the top 1% initially as the type and amount of investment would be most definitely out of reach for the general public.
Investment in sustainable development still has a lot of grounds to cover before it becomes main stream. In the recent decade, great strides has been made in this field ranging from reducing the time of repayment to broadening the market as well as increasing public and private interest. However, given the fact that many sustainable investment is still consider to be long term investments, the market will still be only viable for the selected individuals and will not be attracted to those who seeks quick returns or results.
Regardless, the fact that Morgan Stanley is setting a goal of reaching $10 billion dollars of client funds invested in sustainability in five years shows how much experts are projecting this market to grow. On one hand, this will boost the sustainability market as more money is available all around, on the other hand, this will put pressure on the industry to perform as projected. Only time will tell of which path the market will go but for now, we should all rejoice that finally Wall Street is getting serious about sustainability.
Ta-You Huang is currently a MES student at University of Pennsylvania with a concentration on Corporate Sustainability and working on a thesis on Scope 3 data collection and standardization for GHG emissions.