Morgan Stanley Analysts to Factor ESG Metrics Into Stock Picks

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July 28, 2021, 7:07 PM

Morgan Stanley will require its analysts to weigh sustainability and ESG metrics as core variables in all equities research and recommendations.

The environmental, social and governance metrics will be considered along with variables such as market share, pricing power and secular growth, the Wall Street bank said in a memo obtained by Bloomberg Wednesday, furthering an industrywide push to promote ESG metrics.

Morgan Stanley has used its Risk Reward framework for all fundamentals research since 2007. The framework presents investors with a series of “tiles,” key variables that analysts use to evaluate equities.

The ESG and sustainability tile will include: …