The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

Morgan Stanley Launches Tool Kit to Support Diversity in Investment

Morgan Stanley Launches Tool Kit to Support Diversity in Investment
11 June 2021
 

Morgan Stanley Wealth Management has launched a Racial Equity Investing Tool Kit as part of its Investing with Impact Platform.

Investors will now have access to a range of investments and supporting resources to advance the goals of racial equity and social justice.

The kit will also prioritise investment strategies that minimize or avoid exposure to companies, sectors or geographies with lagging racial equity records, from companies lagging in diverse representation or that provide services that are harmful to communities of colour.

According to a survey conducted by Morgan Stanley Institute for Sustainable Investing, 71 per cent of individual investors identify multicultural diversity, which incorporates elements of race, ethnicity and culture, as an area of interest for their investment portfolios.

This complements recent research which found that two-thirds of business leaders say they have already started replacing suppliers in the last year that don’t live up to their corporate social responsibility values.

The Investing with Impact Platform has highlighted investment strategies that are at least 50 per cent women and/or minority-owned since 2015. 

“Morgan Stanley is committed to supporting diversity, equity and inclusion across all racial, ethnic and gender identities. The launch of the Racial Equity Investing Tool Kit is a great embodiment of values in action for our wealth management clients who have an interest in using their capital to generate positive environmental and social outcomes,” said Kara Underwood, Head of Diversity and Inclusion for Morgan Stanley Wealth Management.

“While we are excited by this groundbreaking work and the ability for our clients to invest in dimensions of diversity, equity and inclusion, we also know there is much more work to be done. To that end, last September we established an Investment Office focused on partnering with asset managers to expand our diverse manager offering as well as to systematically evaluate all managers on their approach to diversity in terms of their own talent management,” said Lisa Shalett, Chief Investment Officer for Morgan Stanley Wealth Management.

 

The Investing with Impact Platform

 

The Racial Equity Investing Tool Kit provides additional actionable insights for investors, identifying ways to mitigate risk and pursue opportunities across a number of approaches, including:

 

  1. Diverse ownership – Investment strategies at asset management firms owned by, or with significant representation of, racial or ethnic minorities.
  2. Solutions – Investment strategies that invest in managers and companies seeking to alleviate social disparities, for example: by providing access to capital, affordable housing & community services, criminal justice reform, economic inclusion, education and more.
  3. Leaders – Investment strategies that incorporate a range of environmental, social, governance (ESG) criteria, including racial equity criteria focused on diverse representation across human capital, policies supportive of attracting and retaining talented diverse employees.
  4. Restriction Screening – Investment strategies that minimize or avoid exposure to companies, sectors or geographies with lagging racial equity records, from companies lagging in diverse representation or that provide services that are harmful to communities of colour.

 

Picture: a photograph of Morgan Stanley's signage at Times Square

Article written by Ella Tansley | Published 11 June 2021

Share



Related Articles

66% of Businesses Prepared to Lose Suppliers With Poor CSR

Two-thirds of business leaders say they have already started replacing suppliers in the last year that don’t live up to their corporate social...

 Read Full Article
Willmott Dixon is UK’s Lead for Diversity in Poll

Willmott Dixon was the UK’s highest placed construction company in the FT’s annual list of the top European leaders for workplace diversity and inclusion,...

 Read Full Article
The UK’s Most LGBTQ+ Inclusive Employers – What Practical Steps Do They Take?

This Pride Month, we are looking at what practical tips businesses can learn from the best-performing organisations from the UK Workplace Equality...

 Read Full Article
Sodexo Appoints Permanent Head of Diversity & Inclusion

Sodexo UK & Ireland has made Raj Jones its permanent Head of Diversity & Inclusion. Jones started her career with Sodexo in 2007, taking on a role in learning...

 Read Full Article
Mace and Amey to Tackle Gender Inequality in Construction

Two industry leaders from Mace and Amey have been appointed to spearhead a campaign to challenge gender inequality in the construction sector. Amanda Fisher,...

 Read Full Article
Have Businesses Prioritised Short-Termism Over Environmental Policy?

More and more businesses have prioritised environmental policy in an attempt to reduce their carbon footprint and tackle climate change. However, Brexit and COVID-19...

 Read Full Article
Banks to Be Tested on Key Climate Change Scenarios

The Bank of England is to test banks and insurers on how resilient they would be in the event of extreme climate change scenarios. The Climate Biennial...

 Read Full Article
Net-Zero Commitments Mandatory to Bid for Government Contracts 

New measures will require businesses to commit to net-zero by 2050 and publish clear and credible carbon reduction plans before they can bid for major government...

 Read Full Article
Sodexo Releases First Ethnicity Pay Gap Report

Sodexo UK is the first company in the FM industry to voluntarily publish its ethnicity pay gap data for 2020. Unlike gender pay gap reporting, there is no...

 Read Full Article
Sodexo Leads Modern Slavery Strategic Supplier Forum

Sodexo UK and Ireland, together with its four largest strategic suppliers, has formed a Modern Slavery Strategic Supplier Forum to share best practice. Along with...

 Read Full Article