How a Giant of Responsible Investing Agreed to an Israel Exception

Morningstar itself had spent years resisting making the changes. It adopted them only after a lengthy pressure campaign initiated by the Jewish investing group JLens, which launched in 2012 and has worked to prevent socially responsible investors from putting pressure on companies that do business in Israel/Palestine. In 2020, JLens turned its attention to Morningstar, arguing that the firm’s reporting on Israeli human rights abuses amounted to support for the Boycott, Divestment, and Sanctions (BDS) movement against Israel, and was a form of antisemitism. Morningstar denied the accusations, insisting that it was treating Israel the same as other countries. But JLens was able to mobilize a network of government officials and Jewish organizations to apply pressure on the financial firm, buttressed by a new wave of anti-BDS laws that prevent states from investing their pension funds in companies said to be boycotting Israel.

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