CDP, SBTi subpoenaed by anti-ESG lawmakers over alleged ‘deceptive practices’

Non-profits are accused of ‘exploiting businesses’ in latest attack on sustainability bodies by US Republicans

Florida’s attorney general has subpoenaed CDP and the Science Based Targets initiative (SBTi) as part of an investigation into “deceptive trade practices”.

James Uthmeier announced on Monday that his office was looking at whether the pair “violated state consumer protection or antitrust laws by coercing companies into disclosing proprietary data and paying for access under the guise of environmental transparency”.

He accused CDP, the long-established environmental corporate reporting platform, of “charging companies to report, revise, and promote their data – while selling services that allegedly improve scores and even offer favourable quotes from CDP executives for a price”.

“Their scoring system is tied to corporate access to capital with investment giants such as Bloomberg, ISS, S&P Global, and Santander reportedly relying on CDP data to make financial decisions,” Uthmeier claimed.

Bloomberg, ISS and S&P Global provide research and data to financial institutions, but are not investment bodies themselves.

SBTi, he continued, was co-founded by CDP, to “sell companies validation of their climate goals [and] then direct them back to CDP to report their progress, creating what appears to be a profit-driven feedback loop”.

The attorney general’s office will investigate whether the two organisations provided favourable scores or endorsements in return for payment, or misrepresented the objectives of environmental data.

It will also look into whether CDP pressured or penalised companies that didn’t disclose to its platform, resulting in “anticompetitive effects”.

CDP is a UK-registered charity.

The investigations are the latest in a series of legal threats made by Republic lawmakers against sustainability organisations in recent years.

Shareholder engagement network Climate Action 100+, US responsible investment body Ceres, and the Net Zero Asset Manager initiative have all been targeted, along with a number of asset managers including BlackRock and State Street.

But this week’s case appears to be the first to target corporate-focused groups rather than investor membership bodies.

“Florida will not sit back while international pressure groups shake down American companies to fund their ESG grift,” said Uthmeier.

“We’re using every tool of the law to stop the Climate Cartel from exploiting businesses and misleading consumers.”

CDP has been contacted for comment.