Attorney General James Uthmeier has announced the issuance of subpoenas to climate reporting and assessment organisations CDP and the Science Based Targets initiative (SBTi), initiating an investigation into alleged antitrust violations and deceptive trade practices. The inquiry seeks to determine whether these entities violated consumer protection or antitrust laws by pressuring companies into disclosing proprietary data and paying for access under the guise of environmental transparency.
CDP, established in 2000, operates a global environmental disclosure system, allowing investors and stakeholders to assess organisations’ performance in areas such as climate, forests, and water security. In 2024, over 22,700 companies disclosed through CDP, marking an 8% increase from the previous year.
Founded in 2015, SBTi is a collaboration between CDP, the World Resources Institute (WRI), the World Wide Fund for Nature (WWF), and the United Nations Global Compact (UNGC), aiming to establish science-based environmental target setting as a standard corporate practice. SBTi’s core functions include defining best practices in emissions reductions and net-zero targets, providing technical assistance, and offering independent assessments of companies’ emissions reduction targets. The organisation released its Corporate Net-Zero Standard in 2021 and is currently developing an update, Corporate Net-Zero Standard V2.
In his statement, Uthmeier criticised SBTi for allegedly selling validation of climate goals and directing companies to CDP for progress reporting, suggesting a profit-driven feedback loop. The investigation will explore claims of deceptive trade practices, including selling services for better scores and public endorsements, incentivising corporations to pay for favourable treatment, and misrepresenting environmental data objectivity. Additionally, it will assess potential antitrust violations, such as whether coordination between CDP, financial institutions, and investment services constitutes unlawful market manipulation, and if CDP’s initiatives to pressure companies result in anticompetitive effects.
This initiative is the latest in a series of anti-ESG actions by Republican politicians in the US, gaining traction since Donald Trump’s election. Florida has been a key state in this movement, with Governor DeSantis enacting several anti-ESG measures and leading a multi-state alliance to counter ESG investing.
Uthmeier stated: “Radical climate activists have hijacked corporate governance and weaponised it against the free market. Florida will not sit back while international pressure groups shake down American companies to fund their ESG grift. We’re using every tool of the law to stop the Climate Cartel from exploiting businesses and misleading consumers.”
In response, CDP acknowledged the Florida Attorney General’s statement regarding the investigation but declined to comment on the allegations at this time.
