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Morgan Stanley launches environment-focused private equity platform

Morgan Stanley, 1GTMorgan Stanley Investment Management (MSIM) launches 1GT growth-oriented private equity platform focused on companies aiming to mitigate climate change. 

The Platform will focus on companies that will cooperatively "avoid or remove" one gigaton of Carbon dioxide-equivalent emissions from the atmosphere of Earth by 2050 to achieve Net Zero targets.

1GT is a part of MIMS's $200 billion alternative investments business targeting companies mainly based in North America and Europe, the investment firm said.

Vikram Raju, MSIM's head of climate investing and the 1GT Platform, said: "As COP27 concludes, it is clear now more than ever that we need to radically alter the traditional model of private equity impact investing in three ways." 

Mentioning the three ways to achieve climate goals, Raju said that firstly there is a need to accomplish climate goals that are "tangible" rather than "anecdotal and ambitious rather than tangential".

In order to propel significant improvement in climate solutions, he mentioned that a substantial portion of financial incentives should be linked to such environmental objectives. 

Finally, Raju emphasised that the measurement of climate goals should be "transparent to limited partners".

1Gt will target investments in private companies that provide "measurable positive environmental impact across the mobility, power, sustainable food and agriculture, and circular economy themes".

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