Morgan Stanley Investment Management (MSIM) is halfway to its $1 billion target for its 1GT climate private equity strategy at first close.

Launched in November 2022, 1GT is a new growth-oriented private equity platform aimed at investing in climate solutions companies that will eliminate one gigaton of CO2 emissions through 2050, the year the United Nations has mandated “Net Zero” must be achieved.

Investors include public and private pension funds and an insurance company in the Nordic region, Germany and the UK, according to the investment bank.

Led Vikram Raju, MSIM’s Head of Climate Private Equity Investing and 1GT, the strategy is part of MSIM’s $200 billion alternative investments business and targets investments in private companies across the mobility, power, sustainable food and agriculture, and circular economy sectors.

Investments to date include supply chain insights and risk analytics company Everstream Analytics. 1GT led Everstream’s $50 million capital raise in April 2023 aimed at driving the company’s innovation in operational risk and ESG performance to accelerate supply chain sustainability.

1GT is classified as Article 9 under the EU’s Sustainable Finance Disclosure Regulation, which requires sustainable investment or carbon emissions reduction as an objective.