Vanguard and Arjuna Faced with Subpoena in ESG 'Collusion' Probe by House Panel

• A House panel served subpoenas to The Vanguard Group and Arjuna Capital Monday.
• The Judiciary Committee seeks documents and correspondence from investment firms regarding their strategies for promoting environmental, social, and governance (ESG) policies.
• The investigation into whether ESG investing coalitions violate antitrust laws includes subpoenas, as they limit investors' ability to invest more heavily in oil and gas.

The House panel issued subpoenas to The Vanguard Group and Arjuna Capital on Monday as part of its ongoing investigation into whether investment funds' environmental, social, and governance policies violate antitrust laws.

The House claims that Vanguard and Arjuna have not adequately disclosed their policies regarding environmentally friendly businesses.

According to letters from committee Chairman Rep. Jim Jordan, R-Ohio, the Judiciary Committee is requesting documents and communications from investment firms regarding their approach to promoting environmental, social, and governance (ESG) policies.

Jordan wrote that the firm "seems 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."

Arjuna is a member of Climate Action 100+, a coalition of over 700 global investors with more than $68 trillion in assets, and also participates in the Net Zero Asset Managers Initiative. Despite Vanguard's departure from the initiative in December 2022, Arjuna was still included in the committee's investigation.

The committee has received thousands of pages of records from Vanguard and Arjuna, with Vanguard submitting 3,619 documents alone.

Jordan wrote to each firm that its "response without compulsory process has been inadequate."

The investigation into antitrust violations by coalitions like Climate Action 100+ includes subpoenas, as they limit investors' ability to invest more heavily in oil and gas.

In a July 6 letter to Vanguard, Jordan claimed that ESG-informed investment decisions limit output, increase prices, and deprive businesses of investments and consumers of choices.

He stated that the potential effects on American freedom and economic prosperity are extensive.

The Vanguard spokesman stated that the firm is dedicated to collaborating with lawmakers and has complied with the committee's demands, including providing numerous documents pertinent to the investigation.

An Arjuna Capital spokeswoman stated that they will fully comply with the House Judiciary Committee's request.

Since the Judiciary Committee launched its "antitrust" probe in December 2022, over two dozen organizations, including BlackRock and State Street, have been requested to provide ESG-related documents.

Vanguard was part of the Net Zero Asset Managers Initiative but withdrew in December 2022.