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Attorneys general from 18 states form coalition to investigate Morgan Stanley boycott of Israel

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An 18-state coalition of attorneys general is probing whether Morgan Stanley Capital International (MSCI, Inc.), a large investment company, is embracing the boycott, divestment and sanctions (BDS) movement against Israel.

“Investment companies making political stands with consumers’ money in the name of ‘environmental, social and governance’ standards is wrong, reckless and dangerous. Further leaning into those radical policies by embracing the BDS movement and punishing Israeli companies for defending themselves against terrorist attacks is inexcusable,” Virginia Attorney General Jason Miyares. “Americans should not tolerate any form of antisemitism.”

In August 2022, 17 state attorneys general sent a letter to Morningstar, a large investing ratings company, expressing “serious concerns related to reports that Morningstar — through its wholly owned subsidiary, Sustainalytics — may be furthering the boycott, divestment and sanctions (BDS) movement against Israel.”

The Morningstar letter resulted in an internal investigation and eventual commitment to make changes to its business practices.

The Jewish News Syndicate reported: “Like Morningstar, which allegedly assigned damaging ratings to a dozen companies that it said committed ‘human rights violations’ simply for conducting business in Judea and Samaria and eastern Jerusalem, MSCI’s environmental, social and corporate governance (ESG) ratings appear to downgrade companies for the same reason.”

“As evidenced by our efforts against Morningstar, we oppose the BDS movement in all forms, especially given the recent rise in antisemitism across the United States. Having said that, one of the allegations against MSCI is uniquely egregious. According to JNS, MSCI deducted ESG points from an Israeli company specifically because of the company’s ‘participation in the construction of security and surveillance barriers designed to protect Israelis from terrorists.’ It is unthinkable to us that MSCI would stand by this position following the terrorist attacks on Israel last October,” the letter states.

Virginia’s attorney general joins attorneys general from Alabama, Alaska, Arkansas, Florida, Georgia, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Montana, Nebraska, Oklahoma, South Carolina, Texas, Utah and West Virginia in signing the letter.

Rebecca Barnabi

Rebecca Barnabi

Rebecca J. Barnabi is the national editor of Augusta Free Press. A graduate of the University of Mary Washington, she began her journalism career at The Fredericksburg Free-Lance Star. In 2013, she was awarded first place for feature writing in the Maryland, Delaware, District of Columbia Awards Program, and was honored by the Virginia School Boards Association’s 2019 Media Honor Roll Program for her coverage of Waynesboro Schools. Her background in newspapers includes writing about features, local government, education and the arts.