House Judiciary Committee Issues Subpoena to Silence Shareholders
Misguided attack on As You Sow and the investment community shines a light on corporate climate risk
FOR IMMEDIATE RELEASE
MEDIA CONTACT: Sophia Wilson, [email protected], (341) 600-1832
BERKELEY, CALIFORNIA—NOV. 1, 2023—As You Sow, the nation’s leading shareholder advocate, today received a subpoena from the House Judiciary Committee demanding the organization provide documents related to its work with companies related to climate risk. This follows an Aug. 1 letter from the Committee arguing that “As You Sow is potentially violating U.S. antitrust law by entering into agreements to ‘decarbonize’ corporate assets and reduce emissions to net zero — with potentially harmful effects on Americans’ freedom and economic well-being.” The Committee sent similar letters to Institutional Shareholder Services (ISS), Glass Lewis, Engine No.1, Trillium Asset Management, Arjuna Capital, and Aviva Investor Americas.
As You Sow is a 501(c)(3) nonprofit organization that engages with companies on behalf of shareholders to reduce greenhouse gas emissions and the systemic risk of climate change. In addition to these engagements, As You Sow also represents shareholders in filing proposals with companies to bring issues of concern to the attention of other shareholders, boards, and management.
“We are deeply disappointed in the House Judiciary Committee’s decision to issue this subpoena as part of a broader anti-climate investigation,” said Danielle Fugere, president and chief counsel for As You Sow. “Although we will continue to work with the Committee to answer reasonable questions, the subpoena is flawed, with demands that are inapplicable to As You Sow, and is so broad as to be virtually unbounded. Further, the antitrust allegations at the heart of the Committee’s argument twists both the facts and the law. Our work increases competition and fosters new, low-cost energy innovations.”
“Shareholders have a right to engage in climate-related discussions with the corporations they own. Shareholders also have a legal right to file proposals to elevate critical concerns,” said Fugere. “The Committee’s new antitrust theory — which appears to be that shareholders must not ask about or act on material risks associated with climate change — inappropriately injects the Committee’s judgment into private sector business decisions.”
"Contrary to the allegations in the subpoena, reducing climate emissions is critical to protecting American freedom and economic well-being,” said Andrew Behar, CEO of As You Sow. “Climate-related impacts are quickly making significant parts of the U.S. un-insurable; wreaking havoc on American agriculture; burning whole towns to the ground; flooding homes and businesses; and increasing costs of goods. Corporations are responsible for a significant percentage of the greenhouse gas emissions leading to these harms and must take responsible action.”
"Our work to address climate change also helps ensure that companies remain competitive in a global economy that is transitioning to low carbon,” continued Behar. “Investing capital in efficiency measures and low carbon technology innovations is a win-win for companies, shareholders, and the American economy.”
“Shareholders have an interest in understanding how the companies they invest in are managing this transition and fiduciaries have a duty to assess this important source of risk. It is well within investor rights to work with companies and peers to reduce climate risk,” said Fugere. “We remain committed to the goal of minimizing the financial risks associated with climate change and will not be intimidated into stopping this important work.”
UPDATE: Since the original filing from the House Judiciary Committee, we have submitted more than 12,000 pages of documents and four rebuttal letters. See the following links:
Rep. J. Jordan Response from As You Sow (3-14-2024)
Rep. J. Jordan Response from As You Sow (12-01-2023)
Rep. J. Jordan Response from As You Sow (9-11-2023)
Rep. J. Jordan Response from As You Sow (8-31-2023)
# # #
As You Sow engages in cooperative dialogue with companies on behalf of shareholders on a range of environmental, social, and governance issues with the goal of reducing risk, benefiting brand reputation, and increasing corporate bottom lines. Representing investors, As You Sow files advisory shareholder proposals where necessary. As You Sow’s primary goal with respect to our climate engagements is to help companies provide greater transparency and information to shareholders. As part of As You Sow’s work, companies can make pro-sustainability decisions based on the facts and their economic self-interest, and shareholders can approve or reject our proposals on the merits.