Morningstar announces substantive changes in its Israel ratings

(JNS) — Following an extended period of wrangling, the investment firm Morningstar reached an agreement on Monday with pro-Israel organizations to alter its methodology in rating the risk it assigns to companies doing business in and with Israel.

Morningstar and its subsidiary Sustainalytics have been accused by critics of utilizing anti-Israel sources and weighing them disproportionately in assigning Environmental, Social and Governance risk ratings to companies as guidance for socially-minded investors. The ratings, which assigned a higher risk simply for doing business in or with Israel or...