Morgan Stanley announced it would be investing USD1 billion to help develop and improve affordable housing as part of its objective to develop investments which provide economic, social and environmental consequences to the community.
The bank had also sought to attract USD10 billion worth of client investments to fund projects to provide both financial returns as well as social benefits. This was confirmed by Morgan Stanley through an emailed statement. The email further said that Audrey Choi would be the CEO of the newly formed Morgan Stanley Institute for Sustainable Investing. He is currently the bank's sustainable finance group.
The largest banks in the US have come together to put their skills in advising firms as to the proper allocation of capital with a social aspect. This comes as a response to public outrage and the government bailouts that had resulted from the recent financial crisis. One such firm which has joined the cause is Goldman Sachs Group Inc, through its social impact bonds. These bonds fund early education in the US and was announced earlier this year.
According to Morgan Stanley CEO James Gorman, "The most effective solutions to sustainability challenges are those that can be brought to scale. Our clients are increasingly turning their attention to what it takes to secure the lasting and safe supplies of food, energy, water and shelter necessary for sustainable prosperity."
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