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July 28, 2022

How “Ethical Investment” Became a Codeword for Boycotting Israel

ESG consultants have a say over the fate of trillions of dollars.

Increasingly, investors and investment managers have made much of evaluating companies based on “environmental, social, and governance criteria” (ESG) in order to allocate funds ethically. This isn’t a mere fad, but big business: in 2020, Morningstar—a large financial-services firm, whose ratings of stocks and bonds have tremendous sway—bought Sustainalytics, a firm specializing in ESG ratings, for nearly $60 million.

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