A coalition of 23 US State Attorneys General, led by Iowa Attorney General Brenna Bird, has issued a letter to the Science Based Targets initiative (SBTi), seeking information on the organisation and its members. The letter raises concerns over potential violations of antitrust and consumer protection laws due to participation in the net-zero group.
The letter specifically targets the SBTi’s Financial Institutions Net-Zero (FINZ) Standard, suggesting it may result in an agreement to cease funding and insurance to the oil and gas sector. This follows a recent investigation launched by Florida Attorney General James Uthmeier into the SBTi and environmental disclosure platform CDP for alleged antitrust violations and deceptive practices. Uthmeier is also a signatory to the letter.
Founded in 2015, the SBTi aims to establish science-based environmental target setting as a corporate standard. Its primary roles include defining best practices in emissions reductions, providing technical support for science-based targets, and independently assessing companies’ emissions reduction goals.
In July, the SBTi released its Financial Institutions Net-Zero (FINZ) Standard, which assists banks and investors in setting net-zero targets for their operations. The standard requires institutions to publish a “fossil fuel transparency policy,” mandating an end to project finance for fossil fuel expansion and general finance for coal and certain oil and gas activities by 2030. It also calls for transitioning portfolio energy activities to net zero by 2050.
The Attorneys General express significant concerns about these commitments, warning that adherence to SBTi standards could breach federal and state antitrust and consumer protection laws. The letter claims that members appear to collaborate to restrict funding and insurance to the fossil fuel industry, equating this to collusion.
The letter also highlights potential consumer protection violations through greenwashing, where companies fail to meet or set unattainable climate goals. It stresses that even sincere pledges to the SBTi would require transparency about the likelihood of achieving net-zero emissions by 2050 without widespread governmental or global effort.
Additionally, the Attorneys General cite legal concerns, including potential breaches of state laws against boycotting the fossil fuel industry and insurance coverage decisions based on non-underwriting factors.
The letter requests detailed information and documents from the SBTi, including communications with members about commitments and the FINZ standard’s development, descriptions of core funding sources, and details on insurers working within the SBTi framework. It also seeks to understand how these insurers’ engagements with the SBTi influence their decisions and whether they deny coverage based on emissions reduction goals.
In a statement, Attorney General Bird criticised the SBTi’s initiatives, arguing they could harm farmers, energy producers, and the economy by limiting goods and services output, threatening energy independence, and increasing food costs. Click here to access the letter.
*The letter is supported by Attorneys General from Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Virginia, West Virginia, and Wyoming.*
