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US House panel subpoenas ESG corporate activist group
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US House panel subpoenas ESG corporate activist group
Mar 22, 2024 11:56 AM

WASHINGTON, March 21 (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 ( BLK ) and State Street Corp ( 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.

A spokesman for the group said it had provided documents and

testimony since receiving the panel's initial request and that

Behar had already agreed to a voluntary interview to be held on

March 28.

"Yesterday's subpoena, ordering him to appear on the same

day, was duplicative and he looks forward to appearing before

the Committee in Washington as previously planned," the group

said.

ESG efforts have faced a backlash from conservative U.S.

politicians in Washington and in various states, who claim that

executives have been distracted from the goal of making money

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.

Fugere in the interview 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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