{"id":2171409,"date":"2024-02-08T15:50:02","date_gmt":"2024-02-08T20:50:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/morningstar-aims-to-eliminate-anti-israel-bias-from-esg-ratings-with-new-report\/"},"modified":"2024-02-08T16:00:40","modified_gmt":"2024-02-08T21:00:40","slug":"morningstar-aims-to-eliminate-anti-israel-bias-from-esg-ratings-with-new-report","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/morningstar-aims-to-eliminate-anti-israel-bias-from-esg-ratings-with-new-report\/","title":{"rendered":"Morningstar&#8217;s new report seeks to eradicate anti-Israel bias in ESG ratings"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmorningstar-aims-to-eliminate-anti-israel-bias-from-esg-ratings-with-new-report%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2171409&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Financial Services Firm Morningstar\u2062 Takes\u200b Steps to Eliminate\u200c Anti-Israel Bias from ESG Ratings<\/h2>\n<p>Financial services firm \u2064Morningstar has \u200creleased a report containing recommendations aimed at removing anti-Israel bias from its \u2062Sustainalytics ESG \u200dcompany risk ratings. The report, celebrated \u200bby Israeli organizations, addresses the issue of Israeli firms receiving lower ratings \u200bdue to their operations in or business with\u200c Israel.\u2064 Rachel Lerman,\u2063 general counsel \u200dfor the Brandeis Center,\u200b highlighted the presence of underlying political\u200d bias\u2064 in the ratings process. The report outlines seven recommendations, including eliminating geographic assumptions and incorporating additional legal\u200d expertise to evaluate human\u2064 rights law-related issues.<\/p>\n<h3>Key Recommendations \u200dfor a More Objective Rating<\/h3>\n<ul>\n<li>Eliminate the \u201coccupied territories\/disputed regions\u201d incident type to prevent bias.<\/li>\n<li>Evaluate human rights \u200dviolations based on facts on the ground, not uncorroborated media \u200daccounts.<\/li>\n<li>Apply international legal standards comprehensively.<\/li>\n<li>Prevent third parties from manipulating ratings through unfavorable media.<\/li>\n<li>Include more legal expertise to assess human rights\u2063 law-related issues.<\/li>\n<li>Require analysts \u200cto clearly\u2064 define alleged human\u200d rights violations by businesses.<\/li>\n<\/ul>\n<p>If implemented, these recommendations would separate unfavorable media coverage of a country from the ESG ratings of firms conducting business with that country. It would\u2064 also provide a more neutral rating for companies operating \u2062within Israel, which has been accused of being \u200d&#8221;occupied&#8221; \u200dby pro-Palestinian groups.<\/p>\n<p>Morningstar has committed\u2063 to swiftly implementing these recommendations in collaboration with its\u200c analysts and clients. The company recognizes the importance of \u200daddressing concerns \u200cof anti-Israel \u200bbias \u2062and aims to fortify objectivity, transparency,\u2064 and consistency in its\u2063 work.<\/p>\n<p>Eric\u200b Fingerhut, president and\u2062 CEO of the Jewish \u200dFederations of North America, emphasized the need for vigilance \u200band engagement \u200din combating anti-Israel\u2062 bias. Michael \u200dNewton, director of the\u2062 International Legal\u2063 Studies Program at Vanderbilt University, believes that the key step lies in the follow-up study \u2062on implementation.<\/p>\n<p>Morningstar has created a live progress report to track the implementation of these recommendations in real time. The firm has also commissioned a follow-up report\u200c by Newton and former Ambassador\u2064 Alex Wolff to evaluate the progress made in \u200bremoving anti-Israel\u2062 bias from\u2064 its ESG ratings.<\/p>\n<p>A coalition of groups \u200dhas been working with Morningstar for the past \u2063two years to \u2064ensure fair and objective Sustainalytics company ratings. These efforts have already resulted in fairer ratings for\u2064 over 100 Israel-linked firms. Rachel Lerman emphasizes the importance of treating companies in Israel and other\u200b &#8220;<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/progressive-lawmaker-warns-biden-risks-losing-muslim-vote-for-supporting-israel\/\" title=\"Progressive lawmaker cautions Biden about potential loss of Muslim vote due to Israel support.\">occupied\u2064 territories<\/a>&#8221; equally, regardless \u2062of location.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/news\/morningstar-releases-report-recommending-elimination-of-anti-israel-bias-from-esg-ratings\">Click here to read more from the Washington Examiner.<\/a><\/p>\n<p> <\/p>\n<h2> How does engaging in\u200c continuous dialogue with Israeli \u2064stakeholders help ensure accurate assessments \u200dof compliance with international human\u200b rights\u2062 law?<\/h2>\n<p><span>  Ensure accurate assessment of \u2064compliance\u2063 with <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-view-host-sunny-hostin-forced-to-do-mental-gymnastics-to-defend-hamas-against-israel\/\" title=\"'The View' Host Sunny Hostin Struggles to Justify Hamas Over Israel\">international\u2062 human rights law<\/a>.<\/li>\n<li>Avoid applying double standards or disproportionate scrutiny on Israeli companies.<\/li>\n<li>Engage \u2063in continuous dialogue with \u200bIsraeli stakeholders to \u2062learn about the \u200dlocal context and address concerns.<\/li>\n<\/ul>\n<p>The\u2062 report acknowledges that anti-Israel\u200c bias has been a concern among Israeli companies and their supporters for some time. The \u2062Sustainalytics ESG\u2064 \u200dcompany risk ratings are used by investors \u2064and asset managers to assess the \u200csustainability and impact\u200c of companies on\u200c environmental, social, and governance issues. However, the ratings\u200c have drawn criticism for their alleged bias \u200dagainst Israeli\u200d firms.<\/p>\n<p>Israeli organizations have commended Morningstar for \u2064taking a step towards rectifying\u2062 this\u2062 bias. The report&#8217;s recommendations aim to promote fairness and objectivity \u200din \u200cthe\u2062 ratings process, ensuring that companies are evaluated based on their \u2063actual practices and adherence to international standards rather than subjective political opinions.<\/p>\n<p>Rachel Lerman, general counsel for \u2064the Brandeis Center, has voiced concerns about the ratings&#8217; underlying political \u2064bias. She highlighted the need \u200bfor an accurate \u200cand unbiased assessment of human\u2063 rights law-related issues, incorporating \u200dreal-time information and avoiding reliance on uncorroborated media reports. The report&#8217;s recommendation to evaluate\u2063 human rights violations based\u200d on facts \u200don the ground is a \u200bsignificant step towards addressing \u2063this concern.<\/p>\n<p>In addition to evaluating human rights issues more objectively, the report suggests eliminating geographic \u2062assumptions. This recommendation\u200b recognizes that assumptions about territorial disputes\u2062 may\u2062 contribute\u2063 to biased ratings\u200d and emphasizes the need to base assessments on verifiable facts. By doing so,\u2062 Morningstar \u2063aims to prevent \u2063the stigmatization of \u2062Israeli companies solely based on their operations in\u2063 or business with Israel.<\/p>\n<p>The\u2064 report also emphasizes the importance of international\u2062 legal\u200c standards in evaluating companies&#8217; adherence to \u200c<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/labour-party-accepted-700000-from-alleged-chinese-communist-spy-report\/\" title=\"Labour Party Accepted 700,000 From Alleged Chinese Communist Spy: Report\">human rights laws<\/a>. To ensure comprehensive and accurate assessment, the inclusion of additional legal expertise is\u200d recommended. By incorporating diverse legal perspectives and expertise,\u2064 Morningstar aims to strengthen\u200b the ratings process and minimize the potential for bias.<\/p>\n<p>Another recommendation focuses on preventing third parties from manipulating ratings\u200d through unfavorable media. This measure\u200d aims to protect the independence and integrity of the ratings process. Morningstar recognizes that external influences, such as biased or unreliable media \u2062reports, can distort \u200cthe evaluation \u200dof a company&#8217;s sustainability and impact. By safeguarding against such manipulation, the company \u2062aims to maintain the credibility and trustworthiness of its ratings.<\/p>\n<p>Furthermore, the report calls for the avoidance\u2063 of double standards and disproportionate\u2063 scrutiny on Israeli companies. It stresses the \u200bneed for \u200cfairness \u200cand consistency\u200c in\u200d the\u2063 ratings process, irrespective of a company&#8217;s origin or the political contexts in which it operates. \u2063By applying the same standards to all companies, Morningstar aims to eliminate any \u2063perceived bias from its ratings and promote equality \u200camong firms.<\/p>\n<p>Lastly, the\u200b report emphasizes the importance of engaging in continuous dialogue with\u200c Israeli stakeholders. Morningstar recognizes the value of understanding the local context and \u2062addressing concerns directly. \u200dBy actively listening to \u200dIsraeli companies, investors, and other stakeholders, \u200dMorningstar \u2063aims to \u200bensure \u2063its ratings truly reflect the companies&#8217; practices and \u200dovercome any potential biases.<\/p>\n<p>The recommendations outlined in the report\u200c demonstrate Morningstar&#8217;s commitment to eliminating anti-Israel bias from its \u200dSustainalytics ESG company risk\u2064 ratings. The\u2062 company&#8217;s efforts have been applauded by\u2062 Israeli organizations \u200dand supporters who acknowledge \u2063the need for fairness \u2064and objectivity in the\u200b ratings process. By implementing these recommendations, \u200bMorningstar aims to restore confidence \u200cin its ratings and provide investors \u2063with unbiased and\u200c accurate assessments of companies&#8217; sustainability and impact.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Financial firm Morningstar&#8217;s report, released on Jan. 31, suggests ways to remove anti-Israel bias from its Sustainalytics ESG company risk ratings. Israeli organizations are pleased with the recommendations as Israeli firms have faced lower ratings due to their operations or business connections in Israel. The report highlights a potential political agenda<\/p>\n","protected":false},"author":2670,"featured_media":2171410,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/02\/AP24036477961892-scaled.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2171409","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/02\/AP24036477961892-scaled.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2171409","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2670"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2171409"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2171409\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2171410"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2171409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2171409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2171409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}