PULSE POINTS:

❓WHAT HAPPENED: A nonprofit called As You Sow, which promotes environmental, social, and governance (ESG) policies, launched a for-profit company, As You Know, to sell ESG data. That firm now benefits from climate and diversity rules that As You Sow lobbied to implement, raising concerns that a tax-exempt group is using its influence to generate private financial gain.

👤WHO WAS INVOLVED: The leadership and operations of As You Sow and As You Know are deeply intertwined. Both are run by activist CEO Andrew Behar. Major left-wing donor networks funded the nonprofit, including Arabella Advisors and organizations linked to George Soros. Its advocacy aligns closely with the Biden government’s regulatory efforts.

🧾KEY QUOTES: “It’s a desperate attempt to hold the patriarchy in power.” — Andy Behar, defending ESG and diversity, equity, and inclusion (DEI) policies in response to growing public and political backlash.

⚠️FALLOUT: Watchdog groups have raised concerns that As You Sow may violate nonprofit tax law by enriching a related private entity. The two organizations share staff, office space, and data resources. The majority of As You Know’s ownership remains undisclosed.

📌SIGNIFICANCE: The situation highlights how nonprofit advocacy can be structured to influence federal policy, steer private capital, and financially benefit affiliated businesses, blurring the legal boundaries between charitable purpose and private profit.

IN FULL:

A California-based nonprofit that promotes environmental, social, and governance (ESG) policies is under scrutiny for launching a for-profit company that appears to profit from federal mandates the nonprofit itself pushed into law.

As You Sow, a tax-exempt 501(c)(3) nonprofit, launched the for-profit company As You Know in 2021. The company markets ESG data products to institutional investors, nonprofit organizations, and universities. The launch coincided with regulatory moves by the Biden government to expand disclosure requirements on corporate climate impact, racial equity policies, and boardroom diversity.

As You Sow disclosed that it purchased 800,000 shares in As You Know at launch. The for-profit entity issued two million shares total, meaning 60 percent of its ownership is held by parties not publicly identified. While federal law allows nonprofits to form for-profit entities, it prohibits them from using tax-exempt resources for private enrichment or allowing insiders to benefit from charitable operations.

SHARED RESOURCES.

The two organizations share leadership, employees, and physical office space. Andrew Behar serves as CEO of both entities and is listed as the registered agent for As You Know. The ESG data sold by the for-profit includes metrics generated by As You Sow over the last three decades, which were produced using donor-funded nonprofit infrastructure.

According to its marketing materials, As You Know holds an “exclusive license” to ESG data on more than 3,000 companies, including information on climate policies, plastic use, political spending, and diversity hiring practices. Many of those topics match shareholder resolutions filed by As You Sow at major U.S. corporations.

In 2023, energy giant ExxonMobil flagged the relationship in a filing opposing a shareholder proposal by As You Sow.

“The recent launch of As You Know, the for-profit arm of As You Sow, which sells data… on topics including plastics – the same topic addressed in the shareholder proposal As You Sow is representing this year,” the filing stated. Exxon noted that the nonprofit had also voted against 80 percent of board director nominees across companies where it provides proxy voting services.

DEFAULT ACTIVISM.

In 2024, As You Sow reported 159 corporate “engagements” and 99 shareholder resolutions. It also launched a platform called My Money My Vote, which enables 401(k) retirement plan participants to automatically vote on shareholder proposals across issues like CEO compensation, political spending, and climate targets. The tool’s default settings favor activist-aligned positions.

Behar, a longtime far-left activist and renewables executive, has defended ESG and diversity, equity, and inclusion (DEI) initiatives despite public pushback. In an interview with Fortune magazine, he said, “It’s a desperate attempt to hold the patriarchy in power,” referring to the backlash against ESG standards and social impact investing.

The nonprofit is backed by left-leaning financial networks, including Arabella Advisors and groups tied to billionaire political donor George Soros. These organizations also support advocacy groups and policy think tanks that push federal and state ESG-related regulations.

While As You Sow argues its mission remains focused on long-term stakeholder accountability, critics point to the close alignment between its nonprofit advocacy and the for-profit services offered by As You Know. Watchdogs say the arrangement resembles a closed loop: the nonprofit pushes for ESG compliance, then the for-profit sells metrics to measure it.

No enforcement action has been announced, but the situation has raised calls for greater transparency around As You Know’s ownership and revenue structure. It also highlights the growing intersection of tax-exempt political advocacy and private-sector influence.

As ESG compliance becomes more embedded in corporate governance through federal rulemaking and proxy activism, the financial structures surrounding these efforts are expected to draw increasing attention from regulators, investors, and the public.