Florida AG Launches Investigation into “Climate Cartel” for Possible Consumer Issues

Florida’s Attorney General is on the lookout for what he terms a “Climate Cartel” that may be misleading both companies and consumers. Attorney General James Uthmeier has launched an investigation into the activities of the Climate Disclosure Project (CDP) and the Science Based Targets Initiative (SBTi) by issuing subpoenas to check for violations of consumer protection or antitrust laws.

The investigation is looking into whether CDP and SBTi imposed pressure on companies to disclose confidential information and pay for environmental scores under the guise of promoting transparency, while allegedly profiting from the process. According to Uthmeier, radical climate activists have taken over corporate management and are using it against the free market. He expressed the state of Florida’s stance against letting international pressure groups exploit American companies to fund their activities.

The CDP, an organization based in the UK, operates a widespread platform for companies to disclose and revise their environmental data, charging them for these services. Key financial firms like Bloomberg, S&P Global, and Santander reportedly utilize this information to make decisions. SBTi, formed jointly by CDP and the UN Global Compact, validates company climate objectives and contributes data back into the CDP’s system.

The investigation will delve into potential deceptive practices, such as selling services to boost scores and offering preferential treatment for payments, along with misrepresentation to investors and consumers regarding the impartiality of environmental data. Additionally, possible antitrust concerns will be probed, including potential coordination between CDP and financial entities that could be seen as market manipulation, as well as whether companies not participating are adversely affected, prompting anti-competitive consequences.

The Florida Attorney General’s Office is keen on stopping what could be deemed deceptive practices around environmental disclosures and ratings that may be impacting businesses and the general public. By investigating these activities, the authorities aim to safeguard transparency and fair competition within these systems, protecting both companies and individuals from potential exploitation or harm. The broader goal is to ensure that businesses operate on a level playing field, free from undue pressure or manipulation from external entities.