Investigation Launched by Florida's Attorney General into CDP and SBTi

Investigation Launched by Florida's Attorney General into CDP and SBTi

In a move that marks the latest in a series of anti-ESG initiatives by Republican politicians in the U.S., Florida Attorney General James Uthmeier has launched an investigation into CDP (formerly Climate Disclosure Project) and the Science Based Targets initiative (SBTi). The investigation, which is ongoing, focuses on potential antitrust violations and deceptive trade practices related to environmental disclosures.

The specific accusations include coercing companies into disclosing proprietary data and forcing them to pay for access and services under the guise of environmental transparency. Another allegation is that SBTi sells services to improve companies’ ESG scores and provides validation or "favorable treatment" for a fee, creating a profit-driven feedback loop between SBTi and CDP.

The investigation also scrutinizes potential anticompetitive effects from pressuring or punishing companies that do not participate and alleged coordination between CDP, financial institutions, and investment services that could amount to unlawful market manipulation. The aim is to determine whether these organizations have created a "climate cartel" that misrepresents the objectivity of ESG data, thereby manipulating markets and restricting competition.

The potential impact on companies includes increased scrutiny and possible regulatory constraints on how they report and validate environmental data, legal and financial risks arising from association with organizations under investigation, and possible disruption or changes in how they engage with ESG disclosure and target-setting frameworks due to potential changes in CDP and SBTi practices post-investigation.

As of early August 2025, subpoenas have been issued to both CDP and SBTi, and details of the investigation are yet to be fully revealed. Florida, known for its pro-business stance, has been one of the key states at the forefront of the anti-ESG movement, with Governor DeSantis signing a series of anti-ESG measures into law and leading an alliance of states to coordinate their anti-ESG actions and initiatives.

CDP, in response to the investigation, has stated that it is aware of the statement made by the Florida Attorney General concerning an investigation of environmental organizations but was not able to comment on the statement or allegations made at this time. SBTi, founded in 2015, collaborates with CDP, World Resources Institute (WRI), the World Wide Fund for Nature (WWF), and the United Nations Global Compact (UNGC).

In 2024, more than 22,700 companies disclosed through CDP, an 8% increase over the prior year. SBTi published its flagship cross-sector Corporate Net-Zero Standard in 2021 and is currently in the process of developing an update, Corporate Net-Zero Standard V2.

Attorney General Uthmeier has been vocal about his stance, stating that "Radical climate activists have hijacked corporate governance and weaponized it against the free market." He further added that Florida will not allow international pressure groups to "shake down American companies to fund their ESG grift" and will use every tool of the law to stop the "Climate Cartel" from exploiting businesses and misleading consumers.

The investigation by Uthmeier is unique in publicly targeting nonprofit climate reporting groups on both consumer protection and antitrust grounds. It remains to be seen how this investigation will unfold and what impact it will have on CDP, SBTi, and the broader ESG landscape.

1. The State of Florida, with a pro-business stance and at the forefront of the anti-ESG movement, has launched an investigation into CDP and the Science Based Targets initiative (SBTi), accusing them of coercing companies into disclosing proprietary data, creating a profit-driven feedback loop, and potentially forming a "climate cartel."
2. Florida Attorney General James Uthmeier has been vocal about his stance, claiming that radical climate activists have "hijacked corporate governance and weaponized it against the free market," and vowing to stop the "Climate Cartel" from exploiting businesses and misleading consumers.
3. As a result of the ongoing investigation, companies may face increased scrutiny, regulatory constraints, legal and financial risks, and changes in how they engage with ESG disclosure and target-setting frameworks, particularly those associated with CDP and SBTi.
4. The investigation presents an unprecedented situation as it publicly targets nonprofit climate reporting groups on both consumer protection and antitrust grounds, potentially reshaping the broader Environmental, Social, and Governance (ESG) landscape.

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