Question Islamic Capital Markets

1) Some have argued that tight Shariah screening filters for stocks are desirable, and it is better to err on the side of conservatism. What is the potential downside to this argument?

2) It was reported in the media that a company was involved in the environmental pollution in Pasir Gudang, Johor, Malaysia. The indiscriminate chemical waste dumping led to multiple casualties. If this company had been a public listed company, do you think it would be a Shariah-compliant stock? Discuss with relevant arguments with help from the newspaper, books, and other sources of information.