The “Climate Cartel” – U.S. State AGs Cite Antitrust and Consumer Protection Concerns to Take Aim at Domestic and International Organizations

On August 8, 2025, the Attorneys General of 23 Republican-led U.S. states (the “AGs”) sent a letter to Science Based Targets Initiative (“SBTi”), a U.K. non-profit climate organization, expressing concern with the SBTi’s climate initiatives.^[1]SBTi had previously received a subpoena from Florida Attorney General James Uthmeier in connection with his office’s investigation into what he described as a “climate cartel,” which he alleges includes SBTi and CDP (formerly the Carbon Disclosure Project).^[2]

Both SBTi and CDP provide tools for businesses and organizations to set environmental and climate goals, validate compliance with those targets, and/or make related disclosures. SBTi “enables companies and financial institutions worldwide to play their part in combating the climate crisis” by providing standards and tools for organizations to achieve net-zero emissions by 2050. CDP is an international non-profit organization that operates an independent environmental disclosure system allowing organizations and localities to disclose their environmental impact. Reportedly almost 23,000 businesses and organizations, and hundreds of cities, states, and regions from around the globe have disclosed environmental and climate-related information to CDP.^[3]

 In the August 8 letter to SBTi, the AGs claim that SBTi’s net-zero emissions standard and “[n]et zero programs are unrealistic and harm both American agriculture and industry.” They further assert that “SBTi and the financial institutions that commit to [the net-zero emissions standards] risk violating federal and state antitrust laws as well as state consumer protection laws. Some economic arrangements are illegal because they are unfair or unreasonably harmful to competition[.]”

The AGs hint at joining Florida in conducting formal investigations into SBTi’s practices. In doing so, the AGs provide a formal demand for documents and information, listing several categories of document requests including SBTi’s membership and funding.

The SBTi letter and AG Uthmeier’s announcement targeting organizations that facilitate the achievement of climate-related objectives are the most recent expansion of prior and ongoing investigations and enforcement actions targeting individual companies and industry alliances.   For instance, on July 11, 2025, Attorney General Andrew Bailey in Missouri announced that his office was investigating two proxy advisory firms for potential violations of Missouri’s consumer protection law by “manipulating” the U.S. economy through recommending ESG-related proposals.^[4]Similarly, a coalition of 11 states, led by Texas, sent a letter in January 2025 to major financial institutions warning that their ESG commitments may violate legal, contractual, and fiduciary obligations by prioritizing an environmental agenda over profit.^[5]

And this trend has found support in federal courts, as well. On August 1, 2025, the Eastern District of Texas allowed 13 states to proceed in their case against institutional investors by denying their motion to dismiss the states’ federal antitrust claims regarding climate-related activities.^[6]The states allege that the investors—all shareholders in the coal producing companies—used these positions to pressure the companies to reduce coal production, which they allege violated both Section 7 of the Clayton Act and Section 1 of the Sherman Act.

Any company or organization with ESG-related policies and initiatives should consider the potential associated legal risks given the current U.S. enforcement environment. Crowell’s State AG, ESG and antitrust lawyers track these developments closely and are prepared to assist in navigating the evolving ESG landscape.

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