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18 states join Missouri Attorney General investigation over Morningstar ESG (2022)
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| • What is ESG? • Enacted ESG legislation • Arguments for and against ESG • Opposition to ESG • Federal ESG rules • ESG legislation tracker • Economy and Society: Ballotpedia's weekly ESG newsletter |
Missouri Attorney General Eric Schmitt began an investigation of Morningstar, Inc. and its ESG-ratings subsidiary, Sustainalytics, for alleged consumer protection violations. Specifically, Schmitt’s scrutiny focused on accusations that Sustainalytics used sources in developing and implementing its ESG ratings that violated state laws prohibiting discrimination against Israeli companies. Schmitt's office announced that it had been joined in its inquiry by attorneys general in 18 other states:[1]
“Attorneys general in 18 U.S. states have joined Missouri's probe into whether Morningstar Inc (MORN.O) violated consumer-protection law with its evaluations of companies' performance on environmental, social and governance (ESG) issues, staff for Missouri Attorney General Eric Schmitt said on Wednesday.
"Schmitt began the probe last month, and spokesman Chris Nuelle said the office invited attorneys general from states including Texas and Virginia 'to widen our pool of resources and share information.'
"A list from Schmitt's office identified Republican attorneys general from 15 states while three more attorneys general were not identified because this was not allowed under their states' rules, Nuelle said.
"Schmitt on July 26 sent questions to Morningstar, asking among other questions about which news sources the research firm uses for ESG analysis. The probe is also looking at whether the firm and its Sustainalytics ESG ratings unit violated a Missouri law aimed at protecting Israel from a campaign to isolate the Jewish state over its treatment of Palestinians.
"Morningstar in June said it would cancel a Sustainalytics human rights product after an independent review sparked by complaints by Jewish groups found the product focused disproportionately on the Israeli-Palestinian conflict.
"But the review by a law firm hired by Morningstar said it 'found neither pervasive nor systemic bias against Israel' by Sustainalytics.”
See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
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