TALHASSEE, Fla. — Florida Attorney General James Usmier has launched an investigation into two major climate disclosure organizations.
The research focuses on CDP (formerly known as the Climate Disclosure Project) and the Science-Based Target Initiative (SBTI). The subpoena have been issued as part of the investigation.
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According to the Attorney General’s office, the investigation will focus on whether organizations will pressure businesses to disclose their own information and purchasing services under the banner of environmental transparency. Authorities are also considering whether the entities misrepresent the objectivity of their environmental assessments and whether companies have created incentives to pay for better scores or favorable treatments.
CDP operates what is described as the world’s largest environmental disclosure system, collecting and evaluating corporate environmental data. The Attorney General’s Office claims that the organization is requesting businesses for reporting and revisions of data, and that it could provide a favorable commentary or improved score in exchange for payments. The firm also said financial institutions such as Bloomberg, ISS, S&P Global and Santander will use CDP data to guide investment decisions.
Co-founded by CDP and the United Nations Global Compact, SBTI examines the company’s climate goals and instructs businesses to submit progress through the CDP platform. Uthmeier’s office argues that this relationship can create a profit-oriented feedback loop.
The survey examines deceptive trade practices such as:
Sales of services to improve environmental scores.
Creating payment incentives. and
Misrepresents the neutrality of environmental data used by investors and consumers.
Additionally, state officials will look into whether coordination between CDPs and financial institutions constitutes market manipulation, leading to anti-competitive outcomes, particularly when companies face pressure and penalties that they do not participate.
The study is part of a broader effort by the Florida Attorney General’s Office to scrutinise environmental, social and governance (ESG) initiatives and corporate behavior and market impact.
