Pro-Israel Groups Call for Sanctions on Morningstar for Blacklisting Companies That Aid the Jewish State

According to groups, ratings giant is not doing enough to eliminate anti-Israel bias

Advocacy groups are asking the state government to sanction Morningstar Financial Ratings for encouraging divestment from companies helping the Israeli government fight Palestinian suicide bombers.

Sustainalytics, a subsidiary of Morningstar, is also available “treats Israel differently from all other nations,” According to Christians United for Israel (CUI) and the Orthodox Union, both pro-Israel community groups are in favor of Israel. These organizations have urged the State Financial Officers Foundation, which represents state officials against the anti-Israel Boycott, Divestment, and Sanctions movement, to cancel lucrative Morningstar contracts and investments.

Morningstar is fighting accusations that it fuels BDS by downgrading companies who work with Israel in the security sector and making them less appealing to potential investors. According to a copy from the Daily Telegraph, pro-Israel groups believe that Morningstar has failed to fulfill its promises to address their concerns and implement reforms. Let me know Obtained by the Washington Free Beacon. The Free Beacon reported In February, the company was still blacklisting many firms that aid Israel in fighting Palestinian terrorism. According to groups, these actions are illegal. “constitute a clear violation of state laws prohibiting contracts with and/or investment in firms that boycott Israel.”

“It’s time for Morningstar to choose boycotts of Israel or state investments and contracts,” The groups write.

These groups are also concerned that Morningstar might retaliate against the US by using its rating systems to downgrade 529 account, which is an investment portfolio used for paying college education.

“Given that Morningstar already uses its ratings to advance a political agenda, we recognize and respect the concern the company might retaliate against states that faithfully implement their anti-BDS laws. For instance, by downgrading the ratings of state 529 accounts,” The groups write. “Rest assured, we will urge attorneys general around the country to hold Morningstar accountable should such underhanded tactics be employed.”

Richard Goldberg is a former chief of staff to the Illinois governor and helped create anti-BDS legislation. “a credible fear among state officials” Morningstar’s alleged support for the BDS movement was the reason Morningstar was pursued “could prompt retaliation.”

“If Morningstar tried to retaliate,” He said: “that would be an issue for the Justice Department and the [Securities and Exchange Commission] to investigate.”

At least 10 major Jewish groups—including the Jewish Federations of North America and the Anti-Defamation League—informed Morningstar in late December that after months of close work with the company, they were frustrated with the lack of progress at reining in Sustainalytics’s anti-Israel bias.

Morningstar has committed to removing several companies from do-not-invest and reverse policies to blacklist a company that provides services to Israel’s security industry.

“It appears that Sustainalytics is failing to do its part to implement the commitments that Morningstar made to eliminate the pervasive anti-Israel bias in Sustainalytics’s [environmental, social, and corporate governance] ratings,” The organizations were writing at the time. “We do not believe that Sustainalytics is engaging with us in the spirit of Morningstar’s October commitments and have found a number of the steps it has taken to be directly contrary to those commitments.”

Morningstar insists that it has implemented reforms. Information It claims that ESG Ratings were assigned to 140 companies based in Israel, out of a total of 15,000. Only 0.2 percent were found to be eligible “flagged for involvement in an Israeli-Palestinian conflict area,” According to the company.

Derek Kreifels, CEO of the State Financial Officers Foundation said that his organization would encourage members to investigate Morningstar in the event of possible violations of anti-BDS law.

“Morningstar is engaging in economic warfare against the Jewish state using American retirement dollars to impose an anti-Semitic BDS movement on many companies in the name of ESG,” Kreifels stated. “We look forward to the results of the continued investigation into Morningstar’s anti-Semitic activities.”