The House Judiciary Committee has recently taken action in its investigation into possible illegal collusion to deprive funding to fossil fuel companies. Subpoenas were issued to Vanguard Group and Arjuna Capital, demanding the submission of documents and communications related to the matter.
According to House Judiciary Committee Chairman Jim Jordan, there is evidence suggesting that the Vanguard Group and other corporations have entered into collusive agreements to decarbonize their assets, potentially violating U.S. antitrust law. It is alleged that these companies are collectively adopting progressive environmental, social, and governance-related goals.
The investigation was launched earlier this year by Jordan, a Republican from Ohio, who expressed concerns over the participation of asset managers such as Vanguard, BlackRock, and State Street in the Net Zero Asset Managers Initiative (NZAM). The NZAM is an international group committed to achieving net-zero carbon emissions by 2050 or sooner and limiting global warming to 1.5 degrees Celsius.
Jordan had previously requested information from Vanguard and other asset managers in July. Despite Vanguard producing a significant number of documents (over 3,600), Jordan deemed their response inadequate.
The decarbonization agreement, in the opinion of Jordan, could potentially violate U.S. antitrust laws due to its coordinated nature, which limits free choices between market alternatives and harms competition in the energy sector.
In December of last year, Vanguard announced its departure from the NZAM. The decision was prompted by concerns that the association with the group created confusion regarding its stance on climate risk and its impact on its core business of managing index funds.
