A PYMNTS Company

23 State AGs Probe Climate Group Over Antitrust Concerns

By  |  August 14, 2025

A coalition of 23 U.S. state attorneys general, led by Iowa Attorney General Brenna Bird, has called on the Science Based Targets initiative (SBTi) to provide detailed information about its operations and membership, citing possible violations of federal and state antitrust and consumer protection laws. The request, outlined in a letter made public this week, centers on the group’s recently adopted Financial Institutions Net-Zero (FINZ) Standard.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    According to the statement from the attorneys general, the FINZ Standard could represent a coordinated effort to deny financing and insurance to the oil and gas sector. The officials argue that such coordinated action may amount to unlawful collusion among participating financial institutions. The letter follows an earlier investigation announced by Florida Attorney General James Uthmeier into both SBTi and the environmental disclosure platform CDP over alleged antitrust and deceptive trade practices. Uthmeier is also among the signatories to the new letter.

    The SBTi, launched in 2015, works to advance science-based climate target-setting as a standard business practice. Per the organization’s mission, it establishes best practices for emissions reductions, provides technical guidance, and verifies company targets for alignment with climate science.

    Read more: Competition in U.S. Airline Markets: Major Developments and Economic Insights

    In July, SBTi finalized its FINZ Standard, designed to guide banks, investors, and insurers toward net zero-aligned policies across their financial activities. Among its key requirements is the adoption of a “fossil fuel transparency policy,” which calls for an immediate halt to project financing tied to fossil fuel expansion and for an end to general financing of oil and gas companies involved in expansion by 2030.

    In their letter, the attorneys general assert that members committing to these policies “appear to have banded together to meet the new Standard to cut off funding and insurance to the oil and gas industry.” The statement warns that financial institutions adhering to these standards “risk violating federal and state antitrust laws as well as state consumer protection laws.”

    The group further emphasized that “companies cannot collude to refuse access to their services, whether they do so in a smoke-filled room or launder that collusion through a third party,” underscoring their view that coordinated market restrictions could be illegal under competition laws.

    Source: ESG Today