House Republicans Subpoena ESG Advocates

The Judiciary Committee has called the CEO of As You Sow to testify in December.

The House Judiciary Committee has issued a subpoena to As You Sow—a nonprofit shareholder representative and climate action advocacy organization—and its CEO, Andrew Behar, seeking documents by December 1.

The subpoena served to As You Sow alleged that “corporations are collectively adopting and imposing left-wing environmental, social, and governance (ESG)-related goals, and the Committee is concerned that As You Sow appears to facilitate collusion that may violate U.S. antitrust law.”

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The committee explained in the subpoena that it seeks documents and testimony from As You Sow to “understand how and to what extent As You Sow may facilitate collusion to promote ESG-related goals.”

The committee previously sent request-for-information letters to As You Sow and other organizations, such as proxy advisory service providers Glass, Lewis & Co. LLC and Institutional Shareholder Services Inc. in August. Requests were also sent to firms and advocates in the net-zero and decarbonization sectors, such as Ceres, a sustainability-focused nonprofit organization working on capital markets issues, and Aviva plc, a major insurance provider in the U.K.

Glass Lewis, Ceres and Aviva did not respond to a request for comment, and ISS declined to comment. PLANADVISER is owned by ISS.

The committee’s requests, which were broadly similar in each case, specified documents relating to: goals regarding climate change; how the groups arrived at those goals; communications related to shareholder proposals that promote decarbonization; communications with shareholder engagement service providers, such as As You Sow, on how to reduce emissions through shareholder actions; communications related to how asset managers can advance decarbonization; and how decarbonization goals impact consumers of “fossil fuels such as coal, gas, and oil.”

The subpoena issued Wednesday alleges that As You Sow was non-responsive to the August request.

Fugere says the subpoenas are “intended to reduce climate action” and that the committee has “not spelled out” what the antitrust violation would be in this case. Fugere argues that helping shareholders who want to take “climate into account” has “no anti-competitive impact whatsoever.”

Fugere adds that “there is no negative competitive impact or agreement,” because the nonprofit is not leveraging shareholder coordination to fix prices, split markets or undertake other anti-competitive behavior. She says many investors care a lot about environmental issues, and As You Sow represents their interests in communications with a public company and can assist them in the shareholder proposal and proxy voting process, adding that As You Sow doesn’t understand the committee’s claims and cannot comply with the document request due to its breadth.

Morningstar Releases Ratings for States’ 529 Plans

Only two received a gold rating among the 54 tax-advantaged education saving plans assessed.



Morningstar Inc. announced its 529 medalist ratings on Thursday, with only Utah’s my529 Plan and Pennsylvania’s Pennsylvania 529 Investment Plan receiving the top rating of “Gold.”

According to Morningstar, the medalist ratings indicate which plans are best suited to help investors reach their goals. The rating tiers include Gold, Silver, Bronze, Neutral and Negative. This year, when considering 529 plans, Morningstar analysts assigned two Gold ratings, 15 Silver ratings, 17 Bronze ratings, 16 Neutral ratings and four Negative ratings.

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“Since we debuted our 529 ratings in 2012, we’ve been pleased with the overall improvement in the 529 industry, namely through more sophisticated investment approaches, increased state oversight and lower fees,” Hyunmin Kim, manager research analyst at Morningstar, said in a statement. “Rightly, asset managers no longer consider education savings plans as an afterthought. With the right plan, families can effectively save for education and even kickstart retirement plans.”

Morningstar rated 54 of the nation’s largest 529 college-savings plans, which represent more than 90% of the industry’s approximately $415 billion in 529 plan assets as of August 31. The firm assigns ratings in three steps: assess the opportunity to add value, score pillars and derive the rating.

Morningstar analysts found that the 34 plans earning Gold, Silver or Bronze ratings had some combination of the following valuable features:

  • Well-researched asset-allocation approach;
  • Robust process for selecting and monitoring underlying investments;
  • Well-resourced and experienced investment team;
  • Stable and engaged oversight from the state; and
  • Low fees.

In this year’s assessment, Morningstar analysts upgraded 10 plans and downgraded seven plans. The table below shows these changes:

Upgrades

(Distribution Channel)

State

Current Morningstar Medalist Rating

Previous Morningstar Medalist Rating

Pennsylvania 529 Investment Plan (Direct)

PA

Gold

Silver

AZ529, Arizona’s Education Savings Plan
(Direct)

AZ

Silver

Bronze

DE529 Education Savings Plan (Direct)

DE

Silver

Bronze

U.Fund College Investing Plan (Direct)

MA

Silver

Bronze

New York’s 529 Program (Direct)

NY

Silver

Bronze

CollegeAmerica (Advisor)

VA

Silver

Bronze

Invest529 (Direct)

VA

Silver

Bronze

NextGen College Investing Plan Direct (Direct)

ME

Bronze

Neutral

The Education Plan (Direct)

NM

Bronze

Neutral

NextGen College Investing Plan Select (Advisor)

ME

Neutral

Negative

Downgrades

(Distribution Channel)

State

Current Morningstar Medalist Rating

Previous Morningstar Medalist Rating

Michigan Education Savings Program (Direct)

MI

Silver

Gold

Oregon College Savings Plan (Direct)

OR

Bronze

Silver

MOST Missouri’s 529 Education Plan (Direct)

MO

Bronze

Silver

ScholarShare College Savings Plan (Direct)

CA

Bronze

Silver

CollegeChoice 529 Direct Savings Plan (Direct)

IN

Neutral

Bronze

Bloomwell 529 Education Savings Plan (Direct)

NE

Neutral

Bronze

CollegeBound 529 (Advisor)

RI

Negative

Neutral

 

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