The House Judiciary Committee sent subpoenas to two asset managers Monday as a part of a probe alleging collusion over the adoption of left-wing environmental, social and governance goals, known as ESG.
Rep. Jim Jordan, R-Ohio, chairman of the committee, sent subpoenas to Vanguard Group Inc. and Arjuna Capital ordering the companies to hand over documents and communications related to possible violations of antitrust laws through a collusion agreement to promote ESG policies in the broader economy, according to a House Judiciary Committee announcement.
The subpoenas, which follow requests from July and August for the two companies to produce the documents, deem their previous responses to be “inadequate.”
“Corporations are collectively adopting and imposing progressive environmental, social, and governance [ESG]-related goals, and The Vanguard Group Inc. appears to have entered into collusive agreements to ‘decarbonize’ its assets under management and reduce emissions to net zero in ways that may violate U.S. antitrust law,” Jordan’s letter to Vanguard reads. “To advance our oversight and inform potential legislation related to collusive ESG policies, the committee must understand how and to what extent Vanguard may have colluded to promote ESG-related goals.”
The Judiciary Committee’s investigation began in December 2022, when Republicans demanded that organizations that were a part of an ESG initiative called Climate Action 100+ send relevant documents related to possible collusion between firms in violation of antitrust laws. The committee accused companies on the board of Climate Action 100+ of acting like a “cartel” to bring down corporate greenhouse gas emissions.
“Vanguard is committed to working constructively with lawmakers and has cooperated with the committee’s requests, including it has never been a member of Climate Action 100+, despite claims from the committee,” Vanguard said in response to a request for comment. “As an independent asset manager owned by the investors in our funds, we remain focused on helping everyday investors achieve their long-term financial goals.”
Vanguard has produced 3,619 documents, still far lower than other companies contacted, with some documents not related to the inquiry, such as copies of newsletters, out-of-office messages, and meeting reminders, according to Jordan’s letter.
“Contrary to your representation to the committee, the documents that Arjuna has produced suggest that Arjuna may have artificially limited its collection of responsive documents,” Jordan’s letter to Arjuna Capital reads. “Arjuna does not appear to have provided documents from its Managing Partner and Chief Strategist Farnum Brown, to whom the committee’s requests were co-addressed, or from any other custodians.”
Arjuna Capital has produced 1,934 documents so far to the committee. It is a member of both Climate Action 100+ and another ESG company coalition, the Net Zero Asset Managers initiative, according to the letter.
The House Judiciary Committee, asked for comment, referred the Daily Caller News Foundation to the subpoena notices. Arjuna Capital didn’t immediately respond to a request for comment.
Originally published by the Daily Caller News Foundation
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