Florida AG Probes CDP And SBTi Over ESG Practices

Florida Attorney General James Uthmeier has started a formal investigation into two major climate organizations, CDP (formerly the Carbon Disclosure Project) and the Science Based Targets initiative (SBTi). This comes amid concerns about possible antitrust violations and misleading business practices. The announcement, made on August 5, 2025, includes subpoenas issued to both organizations. Uthmeier described them as a “climate cartel” that allegedly pressures companies into costly environmental disclosures under the guise of transparency.

The Attorney General aims to find out if CDP and SBTi broke Florida’s consumer protection or antitrust laws. He claims the organizations pushed companies to share sensitive data and pay high fees, creating a system that benefits them financially. Uthmeier stated, “Radical climate activists have hijacked corporate governance and weaponized it against the free market. Florida will not sit back while international pressure groups shake down American companies to fund their ESG grift.”

CDP manages a global environmental disclosure system that encourages companies, cities, and regions to report their environmental impacts in areas like climate change, forests, and water security. This system helps investors, policymakers, and stakeholders assess how sustainable organizations are. In 2024, over 22,700 companies shared environmental data through CDP, marking an 8% increase from the previous year.

The Science Based Targets initiative, created in 2015 through the collaboration of CDP, the World Resources Institute (WRI), the World Wide Fund for Nature (WWF), and the United Nations Global Compact (UNGC), aims to standardize science-based emissions reduction targets for businesses. Its goal is to match corporate climate objectives with the Paris Agreement. The initiative offers frameworks for setting and validating emission targets and provides technical support to companies working towards net-zero emissions. In 2021, SBTi released its “Corporate Net-Zero Standard” and is currently updating it with a second version (V2).

Uthmeier's allegations highlight the close ties between the two organizations. He criticized SBTi for selling validation services for corporate climate goals, then directing companies to CDP for disclosures. He described this as a “profit-driven feedback loop.” The AG's office is also looking into claims that companies could buy favorable scores or public recognition, implying that they were encouraged to pay these organizations to improve their reputations. Uthmeier argues this system could mislead investors and consumers by distorting the objectivity of environmental data.

Additionally, the investigation will assess whether cooperation between CDP, financial institutions, investment service providers, and ESG ratings agencies constitutes illegal market manipulation. The AG raised concerns that such cooperation could disadvantage businesses that choose not to join CDP’s programs, effectively penalizing them for non-disclosure with reduced investor confidence or poor ESG ratings.

This investigation is part of a broader pattern of Republican-led pushback against ESG (Environmental, Social, and Governance) principles across the United States. Since Donald Trump’s re-election, anti-ESG sentiment has grown among conservative lawmakers, with Florida becoming a key battleground. Under Governor Ron DeSantis, Florida has passed many laws to limit ESG influence in public and corporate sectors, including bans on ESG considerations in state investment decisions and collaboration with other Republican-led states to coordinate anti-ESG strategies.

Critics of ESG initiatives, like Uthmeier, argue that these frameworks undermine shareholder value and free market principles by focusing on social and environmental goals instead of financial returns. Uthmeier’s strong language, referring to CDP and SBTi as exploitative groups promoting an “ESG grift,” highlights the ideological divide regarding corporate sustainability reporting.

In response to the announcement, CDP issued a statement acknowledging the investigation but refrained from commenting further on the allegations. The organization said, “CDP is aware of the statement made by the Florida Attorney General concerning an investigation of environmental organizations. We are not able to comment on the statement or allegations made at this time.”

As this investigation develops, it is likely to intensify the national conversation about ESG standards in corporate governance. The outcome may significantly impact the regulatory framework surrounding climate disclosures and target setting for both businesses and environmental organizations. If Florida successfully proves its allegations, it could lead to similar actions in other states, putting considerable pressure on the rapidly evolving ESG infrastructure from the past decade.