Morningstar-Sustainalytics has 90 days to cease or clarify business practices or will be subject to Florida’s divestment and contract prohibitions
TALLAHASSEE, Fla. — Today, Governor Ron DeSantis was joined by Attorney General Ashley Moody and CFO Jimmy Patronis to place Morningstar-Sustainalytics on Florida’s List of Scrutinized Companies that Boycott Israel after being placed under continued examination by the State Board of Administration (SBA) since August. The listing comes as a result of Morningstar-Sustainalytics application of their controversial research methodology which categorizes companies as a risk for supporting Israeli interests in Judea and Samaria.
“Florida will hold companies accountable for discriminating against Israel,” said Governor Ron DeSantis. “We will continue to invest in companies that provide Floridians with the best return on investment and not companies that utilize arbitrary ESG metrics to advance a BDS agenda.”
“Our actions on Morningstar-Sustainalytics should put the rest of the world on notice,” said Attorney General Ashley Moody. “Florida will not stand by while companies use their economic power to attack Israel.”
“I’m proud to stand with Governor DeSantis in adding Morningstar to Florida’s list of companies under scrutiny for boycott and divestment of Israel,” said Chief Financial Officer Jimmy Patronis. “It’s shameful how the virus of hateful, Palestine-led BDS practices has infected corporations and financial markets, and Florida stands committed to fighting these anti-Israel policies. Following the heinous and unprecedented attacks by terrorists against Israel, Jewish and Israeli Floridians need our support now more than ever. Let me be clear – If you want to do business with the State of Florida, you cannot support BDS policies against Israel, or you will face the consequences.”
In May, the Governor signed legislation to increase the state’s investment prohibitions to also require the divestment of holdings in companies that boycott Israel. Today’s actions represent the first divestment following the enactment of the law.
As of result of today’s actions by the Trustees of the SBA, the SBA will formally notify Morningstar-Sustainalytics of their placement on the Scrutinized Companies that Boycott Israel List. If a company does not clarify its business practices or ceases its boycott of Israel within 90 days of being placed on the list, it becomes subject to a divestment investment prohibition and the State of Florida will not contract with the company or its subsidiaries.
Today’s actions build on prior actions of Governor DeSantis and his fellow SBA Trustees in protecting Florida’s investments from corporations supporting the boycott, divestment, and sanction movement against Israel, including placing Airbnb on the list in January 2019. The actions resulted in the company reversing course on discriminatory policies targeting Israeli communities in
Judea and Samaria. In 2021, the Governor and his fellow SBA Trustees placed Ben & Jerry’s parent company, Unilever, on the list for their boycott against selling products in Judea and Samaria, prohibiting Florida’s continued investment in the company.