Florida Attorney General Initiates Probe into CDP and SBTi
In a move that could reshape the landscape of Environmental, Social, and Governance (ESG) standard-setting, Florida Attorney General James Uthmeier launched an investigation in July 2025 into the Climate Disclosure Project (CDP) and the Science Based Targets initiative (SBTi). The investigation centres on claims that these nonprofits have been operating a "climate cartel," coercing companies into disclosing proprietary data and paying fees under misleading environmental transparency pretenses.
Background
Established in 2000, CDP manages a leading environmental disclosure system for companies worldwide, with over 22,700 firms disclosing data in 2024. SBTi, a collaboration between CDP, the World Resources Institute, the World Wide Fund for Nature, and the United Nations Global Compact, was founded in 2015. SBTi promotes science-based emissions reduction targets and validates corporate climate goals.
The Florida AG’s investigation subpoenas focus on whether CDP coerced companies into participation and payments for scoring services, and whether SBTi’s role in validating targets funnels companies back to CDP’s paid disclosure services—forming a profit-driven feedback loop. The probe also examines potential coordination between CDP, financial institutions, and investment services as illicit market manipulation or antitrust behavior.
Implications
If misconduct is confirmed, the case could reshape how nonprofit ESG standard-setters operate and how their services are linked to corporate disclosures and investor decision-making. The investigation mirrors global regulatory scrutiny of alleged cartels, such as the EU’s recent fine against car manufacturers for anticompetitive practices.
Legal and market uncertainty may arise for companies participating in ESG initiatives, particularly regarding data transparency, paid services, and potential antitrust risks in climate-related frameworks. Florida’s broad public records laws may expose investigation documents quickly, increasing reputational and legal scrutiny on CDP and SBTi.
Current Developments
The SBTi published its flagship cross-sector Corporate Net-Zero Standard in 2021 and is currently in the process of developing an update to the standard, Corporate Net-Zero Standard V2. CDP has acknowledged being aware of the investigation but is not able to comment on the statement or allegations made at this time.
This investigation underscores the growing scrutiny on ESG standards and the need for transparency and accountability in the environmental disclosure process. As the investigation unfolds, it will be crucial for all parties involved to maintain the trust of investors, stakeholders, and the public.
- The investigation led by Florida Attorney General James Uthmeier into the Climate Disclosure Project (CDP) and the Science Based Targets initiative (SBTi) could potentially impact net-zero targets, as their flagship standard, the Corporate Net-Zero Standard, is currently being updated by the SBTi.
- Amidst the ongoing investigation, environmental sustainability efforts and climate reporting by companies may face policy-and-legislation challenges, particularly in regards to data transparency, paid services, and potential antitrust risks associated with ESG initiatives.
- The unfolding investigation into CDP and SBTi, coinciding with general-news reports of global regulatory scrutiny of alleged cartels, highlights the importance of transparency and accountability in the climate reporting process, a crucial aspect of politics and war-and-conflicts discourse regarding environmental sustainability.
