illuminem summarizes for you the essential news of the day. Read the full piece on ESG Today or enjoy below:

🗞️ Driving the news: Morgan Stanley has adjusted its climate targets by introducing a range-based approach, adding a lower bound of 1.7°C, due to current economic and policy misalignment with 1.5°C climate goals
• Despite this shift, Morgan Stanley reaffirms its net-zero commitment by 2050 and plans to help clients transition toward lower emissions

🔭 The context: Morgan Stanley initially based its climate targets on a 1.5°C pathway but acknowledges that global policies and practices have lagged behind this ambition
• To stay realistic while promoting decarbonization, Morgan Stanley’s new target range spans from a 1.5°C to a 1.7°C alignment and covers high-emission sectors, which make up 65% of its corporate lending emissions

🌍 Why it matters for the planet: Adjusting climate targets highlights the challenge of aligning financial and corporate emissions goals with the 1.5°C limit, underscoring the need for stronger policy and technology advancements
• This change may influence other financial institutions’ climate approaches amid pressing calls for credible action on net-zero goals

⏭️ What's next: Morgan Stanley will extend its emissions targets to include capital markets and event lending over time
• The firm will continue to assess sectoral challenges, especially in energy and automotive, which face hurdles like energy security demands and slow EV adoption

💬 One quote: “We remain steadfast in our commitment to net-zero... to help move the world to net-zero emissions by 2050,” - Jessica Alsford, Morgan Stanley’s Chief Sustainability Officer

📈 One stat: 65% of Morgan Stanley’s corporate lending portfolio emissions come from high-emission sectors like Power, Energy, and Automotive

Click for more news covering the latest on sustainable finance