Morgan Stanley (E-Trade)

Parametric
New York
Banks, Diversified Financials

Corprate Bias Ratings

Risk Level:

Rating - Danger
High Risk

Morgan Stanley will not fund some oil and gas projects or certain businesses dealing with firearms or ammunition. The company vets vendors according to LGBTQ policies and does not provide its employees with protections against viewpoint discrimination. The company covers the cost of "medically necessary transition-related care" for its employees and their children. Morgan Stanley regularly uses its corporate image and funds to support ideological policies and groups hostile to freedom of expression. The company also will not donate to any religious groups and its PAC has also donated to an ideology-based PAC. Morgan Stanley is a platinum partner of the Human Rights Campaign (HRC). The company is part of Glasgow's Net Zero Alliance, committed to carbon neutrality by 2050, and a signatory of the Business Roundtable's 2019 Statement on the Purpose of Corporation, which promotes stakeholder capitalism. For these reasons, Morgan Stanley receives a High Risk rating. This rating applies to E*Trade, a subsidiary of Morgan Stanley.

Criteria
Risk Level
Rationale
Corporate Weaponization
Criteria

Has denied service to customers, suppliers, or vendors due to their political views or religious beliefs OR corporately boycotts, divests, or sanctions regions, people groups, or industries.

Risk Level
Rationale

Morgan Stanley restricts its funding to oil and gas projects and would not pledge to end this discrimination when pressed by the Treasurer of West Virginia (1). Morgan Stanley will also not fund certain legal guns and ammunition dealers (2). The company received a score of 100 on the Corporate Equality Index from the HRC. Among other requirements, this means Morgan Stanley has pledged to vet vendors for LGBTQ policies (3).

Criteria

Charitable giving (including employee matching programs) policies or practices discriminate against charitable organizations based on views or religious beliefs.

Risk Level
Rationale

Morgan Stanley will not donate to religious organizations (1).

Criteria

Employment policies fail to protect against discrimination based on political affiliation/views and/or religion.

Risk Level
Rationale

Morgan Stanley does not protect its employees from viewpoint discrimination (1).

Corporate Governance and Public Policy
Criteria

Uses corporate reputation to support ideological causes and/or organizations hostile to freedom of expression.

Risk Level
Rationale

Morgan Stanley has a perfect score on the HRC’s 2022 Corporate Equality Index. This score indicates the company covers the cost of “medically necessary transition-related care” for its employees and their children (1)(2). The company signed a letter in support of the Equality Act (3). Morgan Stanley also has a history of LGBTQ advocacy, supporting amicus briefs overturning the Defense of Marriage Act (2013 and 2015) and supporting expanding Civil Rights Protections for sexual orientation (4). Morgan Stanley is part of the Net Zero Banking Alliance and a PCAF member, committed to net zero carbon emissions by 2050 (5)(6)(7). CEO James Gorman is a member of the Business Roundtable and signed its 2019 Statement on the Purpose of Corporation, which promotes stakeholder capitalism over traditional obligations to shareholders and customers (8)(9). Subsidiary Parametric is a member of the Climate Action 100+ and Ceres Network, which aim to proliferate climate action and ESG practices in the finance industry, respectively (10)(11).

Criteria

Uses corporate political contributions for ideological, non-business purposes.

Risk Level
Rationale

Morgan Stanley is a Platinum partner of the Human Rights Campaign (1). Morgan Stanley has also donated and encouraged clients and others to support multiple racial justice organizations, some of which include partisan groups such as Black Lives Matter, Color of Change, and the American Civil Liberties Union (2)(3). Morgan Stanley also reimburses employee travel costs for abortions (4). The company is a corporate partner of the National LGBT Chamber of Commerce (5).

Criteria

Uses corporate political contributions for ideological, non-business purposes.

Risk Level
Rationale

Morgan Stanley has used its PAC for ideological purposes by donating to the Equality PAC (1).

All links were last accessed and all information was updated on:
July 4, 2023

Company reports are intended for educational use only. Full Disclaimer

Voting History

Date
ESG Category
Proponent
Summary of ResolutionMgmt RecTotal Vote % in Favor
5/19/23GovernanceJohn CheveddenShareholder Right to Call a Special Shareholder MeetingAgainst25.20%
5/19/23EnvironmentalThe Sierra Club FoundationPolicy to Cease Financing New Fossil Fuel DevelopmentAgainst4.80%
5/26/22SocialSierra Club FoundationAdopt Fossil Fuel Lending and Underwriting Policy Consistent with IEA's Net-zero 2050 ScenarioAgainst8.38%

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