Andrew Behar on Unleashing the Power of Shareholder Advocacy to Drive Change (#027)

SRI360 | Socially Responsible Investing, ESG, Impact Investing, Sustainable Investing

Andrew Behar, the CEO of As You Sow, is a well-known advocate for shareholder advocacy. With a rich background in documentary filmmaking, entrepreneurship, and technological innovation, he brings a unique perspective to shareholder advocacy.
Behar's journey as a shareholder advocate was influenced by his personal experiences. Growing up near Long Island Sound in Connecticut, he witnessed the environmental impact of industry on his surroundings. These early observations of environmental degradation left a lasting impression on him.
Before dedicating himself to shareholder advocacy, Behar explored entrepreneurial endeavors, including a medical device company that earned him five patents and demonstrated his commitment to using technology for positive change.
Behar then transitioned to As You Sow in 2010. As CEO of a nonprofit organization, he began advocating for values-aligned investing and using shareholder influence to drive corporate responsibility.
Behar emphasizes that As You Sow practices shareholder advocacy, which focuses on engaging with companies to improve their practices. Shareholder activism, on the other hand, often involves taking over boards or liquidating companies, a different approach that doesn't align with As You Sow's goals.
The core philosophy of As You Sow is to compel companies to reduce material risks on various issues, including climate change, diversity, equity, inclusion, and more. Under Behar's leadership, As You Sow has developed valuable tools to empower shareholders, including the Investor Value Tool and As You Vote Tool.
The goal is to create a win-win situation where companies make responsible decisions that benefit all stakeholders.
In this episode, we'll explore Behar's journey and the core principles of shareholder engagement, shedding light on how it works, where it falls short, and how it can be improved.
I really learned a lot from my discussion with Andrew, and I hope you will too!
Show notes: https://sri360.com/podcast/andrew-behar
About the SRI 360° Podcast: The SRI 360° Podcast is focused exclusively on sustainable & responsible investing. In each episode, I interview a world-class investor who is an accomplished practitioner from all asset classes. In my interviews, I cover everything from their early personal journeys to insights on how they developed and executed their investment strategies and what challenges they face today. Each episode is a chance to go way below the surface with these impressive people and gain additional insights and useful lessons from professional investors.
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Key Takeaways

Intro (00:00)

Andrew's journey into shareholder advocacy (06:55)

Our rights as shareholders (15:31)

The concept of materiality in advocacy (22:18)

Investor Values and As You Vote Tools (25:23)

Shareholder activism vs shareholder advocacy (38:48)

Successful engagement campaigns (45:38)

As You Sow escalation process (50:31)

Driving change amidst culture wars (01:03:44)

Is Shareholder Advocacy always a win-win (01:04:38)

What asset managers need to do differently (01:08:54)

Disclosure issues with private equity (01:20:17)