Morgan Stanley

Red Line	Text of policies	Comments	Score
Regulatory requirements
Ensure Legality	Statement on Human Rights We endeavor to exercise our influence in part by conducting our business operations in ways that attempt to preserve, protect and promote the full range of human rights such as those described in the United Nations Universal Declaration of Human Rights (UDHR). Morgan Stanley complies with the laws and regulations of the countries in which we operate while simultaneously conducting our business and encouraging the promotion of human rights through our own policies, standards and practices. Environmental Policy - We will not knowingly finance companies or projects that collude with or are knowingly engaged in illegal logging. International Environmental Agreements. - We will not knowingly finance projects that contravene international environmental agreements that have been enacted into the law of, or otherwise have the force of law in, the country in which the project is located.	The policy requires compliance with national laws, and with international conventions (it doesnt define which), if they have been enacted into law in the host country.	partly
No Corruption and Tax Evasion	Code of Ethics and Business Conduct Anti-Corruption: Morgan Stanley prohibits all forms of bribery and corruption. Code of Conduct Anti Tax evasion: (...) never engage in any activity that knowingly facilitates a third party in committing tax evasion	The policy is focused on the involvement of the bank itself in financial crime, it does not set specific requirements for clients.	partly
Ensure ESIA for mills and plantations	Environmental Policy - Capital Markets. Morgan Stanley fosters client awareness of environmental concerns in the context of capital raising by companies in securities markets. In addition to the environmental due diligence that we undertake in connection with securities offerings, Morgan Stanley will encourage clients to assess and appropriately mitigate or disclose material environmental risks in offering materials and disclosure documents. Furthermore, we plan to continue being active in providing underwriting services to alternative energy businesses, including solar power and bio-fuel companies.	Clients are encouraged, but not required, to perform an ESIA and to publish it	partly
Social requirements
Ensure FPIC	Environmental and Social Policy (2019) When financing projects in indigenous territories, Morgan Stanley will aim to ensure that the project sponsors or borrowers, as appropriate, will have demonstrated that: (i) the appropriate parties are engaged with the affected indigenous peoples to achieve free, prior, and informed consent; (ii) approaches rely on existing customary institutions and allow adequate time to review information; (iii) governmental authorities at the local, regional or national level are providing mechanisms for the affected communities to be represented, consulted or to air grievances; (iv) information on the expected adverse impacts of the project on the indigenous peoples is being provided to them; and (v) the project includes measures to avoid, reduce or compensate for significant adverse impacts on traditional or customary lands under use by indigenous peoples and relocation of indigenous peoples from traditional or customary lands.	FPIC is required for indigenous people, but nor for other impacted communities	partly
Respect Human Rights	Environmental and Social Policy (2019) Morgan Stanley will not knowingly finance transactions where there is direct involvement in modern slavery, such as forced labor and human trafficking, or harmful or exploitative forms of child labor. Potential human rights issues (including within a company’s supply chain, as may be relevant) are considered in our due diligence processes as appropriate Statement on Human Rights We endeavor to exercise our influence in part by conducting our business operations in ways that attempt to preserve, protect and promote the full range of human rights such as those described in the United Nations Universal Declaration of Human Rights (UDHR). Morgan Stanley complies with the laws and regulations of the countries in which we operate while simultaneously conducting our business and encouraging the promotion of human rights through our own policies, standards and practices. Modern Slavery and Human Trafficking Statement We endeavor to exercise our influence in part by conducting our business operations in ways that attempt to preserve, protect and promote the full range of human rights, such as those described in the United Nations Universal Declaration of Human Rights (UDHR), the ILO’s Declaration on Fundamental Principles and Rights at Work, and the UN Guiding Principles on Business and Human Rights.	MS commits to protect the full range of human rights, but does not define these nor does it require clients to have a Human Rights policy that also applies to third parties.	partly
Respect Indigenous rights and customary land use rights	Environmental and Social Policy (2019) Morgan Stanley will not knowingly finance transactions where there is direct involvement in modern slavery, such as forced labor and human trafficking, or harmful or exploitative forms of child labor. Potential human rights issues (including within a company’s supply chain, as may be relevant) are considered in our due diligence processes as appropriate. When financing projects in indigenous territories, Morgan Stanley will aim to ensure that the project sponsors or borrowers, as appropriate, will have demonstrated that: (i) the appropriate parties are engaged with the affected indigenous peoples to achieve free, prior, and informed consent; (ii) approaches rely on existing customary institutions and allow adequate time to review information; (iii) governmental authorities at the local, regional or national level are providing mechanisms for the affected communities to be represented, consulted or to air grievances; (iv) information on the expected adverse impacts of the project on the indigenous peoples is being provided to them; and (v) the project includes measures to avoid, reduce or compensate for significant adverse impacts on traditional or customary lands under use by indigenous peoples and relocation of indigenous peoples from traditional or customary lands.	The poliy provides some respect for indigenous rights, but not for the rights of other local communities	partly
No forced resettlement	Environmental and Social Policy (2019) When financing projects in indigenous territories, Morgan Stanley will aim to ensure that the project sponsors or borrowers, as appropriate, will have demonstrated that: (i) the appropriate parties are engaged with the affected indigenous peoples to achieve free, prior, and informed consent; (ii) approaches rely on existing customary institutions and allow adequate time to review information; (iii) governmental authorities at the local, regional or national level are providing mechanisms for the affected communities to be represented, consulted or to air grievances; (iv) information on the expected adverse impacts of the project on the indigenous peoples is being provided to them; and (v) the project includes measures to avoid, reduce or compensate for significant adverse impacts on traditional or customary lands under use by indigenous peoples and relocation of indigenous peoples from traditional or customary lands.	FPIC is required for indigenous people, but nor for other impacted communities	partly
Environmental Requirements
No forest degradation and deforestation	Environmental Policy (2019) We prefer to finance only preservation and light, non-extractive use of forest resources for projects in forests where high conservation values are endangered. Companies that are directly involved in timber logging are expected to have obtained or be working toward FSC certification or a comparable certification when we directly finance forestry projects that impact high conservation value forests. We will not knowingly finance extractive or commercial logging projects in UNESCO World Heritage sites. We will not knowingly finance or invest in industrial projects where the specified use of proceeds would significantly convert or degrade a critical habitat. Critical habitats (...) include legally protected areas, areas officially proposed by governments as protected areas, and sites identified by a project's environmental impact assessment as vital to the viability of the protected areas.	The policy protects a range of areas, but does not fully protect HCV areas	partly
Protect endangered species	Environmental and Social Policy (2019) Morgan Stanley will not finance or invest in industrial activity where the specified use of proceeds would significantly convert or degrade a critical habitat. (...) and sites that are critical for rare, vulnerable, migratory or endangered species.	The policy protects the habitats where endangered species occur, but does not protect all IUCN red listed species	partly
No high-risk species		No publicly available policies or documentation were found that cover this criteria.	not
No fire	Environmental and Social Policy (2019) We will not knowingly finance companies or projects that collude with or are knowingly engaged in (...) illegal or uncontrolled fire.	The policy does not prohibit the use of controlled fire	partly
Protect peat		No publicly available policies or documentation were found that cover this criteria.	not
No persistent pollution	Environmental Policy Pollution Prevention: Generally, we will not knowingly finance projects unless they adhere to local and World Bank standards, have pollution prevention plans and offer training programs for environment, health and safety professionals.	WB standards protect partly against this red line	partly
Corporate association / scope of the policy
Corporate association / scope of the policy		No publicly available policies or documentation were found that cover this criteria.	not

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