US House panel subpoenas ESG corporate activist group
Reuters
Published Mar 21, 2024 01:05PM ET
Updated Mar 21, 2024 02:00PM ET
By Makini Brice
WASHINGTON (Reuters) - A U.S. House of Representatives panel has subpoenaed the head of an activist group that pressures companies over environmental, social and corporate governance issues to appear for a March 28 deposition, according to a letter seen by Reuters on Thursday.
The Republican-led House Judiciary Committee is conducting a probe into whether ESG efforts violate antitrust laws. It has subpoenaed BlackRock Inc (NYSE:BLK) and State Street Corp (NYSE:STT) for documents and communications as part of the same investigation.
The committee said it was issuing the subpoena to compel the deposition of Andrew Behar, the chief executive officer of As You Sow, as part of its probe into antitrust laws. The group did not immediately respond to a request for comment.
ESG efforts have faced a backlash from conservative U.S. politicians in Washington and in various states, who have said executives were distracted from the goal of making money, even as environmentally and socially conscious shoppers, business partners and investors seek ambitious ESG goals.
The panel said it had sought transcribed interviews with multiple executives with the group, but had only been able to obtain an interview with Danielle Fugere, the group's president and chief counsel.
In the interview, Fugere testified that she did not know or did not recall the answer to the questions posed "well over one hundred times - including about matters in which she was personally involved," the letter said.
The committee said it had tried to arrange an interview with Behar, but the plans collapsed. The group also said it had provided documents, but the committee said they were insufficient.
"As You Sow's dilatory tactics, which have persisted for more than three months after our initial request for this voluntary interview, have impeded and obstructed the Committee's legislative oversight efforts," the letter said.
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