WASHINGTON, D.C. – Six state attorneys general called on the nonprofit climate company Ceres, Inc. to halt all conduct they say is in violation of antitrust and consumer protection laws.
The attorneys general, led by Florida Attorney General James Uthmeier, sent a letter to Ceres’ CEO Mindy Lubber calling on the company to refrain from its efforts to “transform industries” and achieve “systemic change” by pressuring companies into ESG investments.
Ceres, Inc., was founded in 1989 after the Exxon Valdez oil spill in Alaska. The nonprofit says it works with companies to “acknowledge their environmental impacts and act more responsibly to help protect our communities and economies.”
The attorneys general allege Ceres focuses on tying company investments to net-zero emissions initiatives.
“Ceres coordinates pressure on financial actors and companies through ‘stakeholder engagement,’ shareholder resolutions, and even ‘investor campaigns to replace directors,'” the attorneys general wrote.
Ceres operates an investor portal for Climate Action 100+, an initiative meant to encourage large corporations to take action on climate change. The attorneys general allege Ceres refused to provide access to the portal when questioned by the U.S. House Judiciary Committee.
The letter claims Ceres’ efforts have led to a decrease in demand for oil and less investments in new supplies of oil.
“Ceres’ efforts to artificially move entire markets and sectors – and in turn artificially change the output and quality of the goods and services produced by those sectors – toward Ceres’ own preferred policy goals bears all the trappings of the ‘adverse, anticompetitive effects’ that antitrust laws seek to prevent,” the attorneys general wrote in a letter.
Ceres did not immediately respond to a request for comment.
Will Hild, executive director of Consumers’ Research, said his organization has been warning of Ceres’ climate activity for years.
“Ceres is a leader of the climate cartel and exploits its ever-growing network to push radical political agendas and ESG policies on companies and organizations, pressuring them to ignore their fiduciary duty, engage in shareholder activism, and adopt radical climate and net-zero goals,” Hild said in a statement provided to The Center Square. “Ceres’ policy goals are blatantly anti-consumer and a direct threat to our nation’s economy.”
The Sherman Antitrust Act is the founding antitrust principal in the United States. It prevents company behavior that restrains trade or engages in monopolization. The attorneys general argued that Ceres violates this law by attempting to reduce output and increase prices of oil and gas corporations.
“Companies that Ceres target that fail to meet its unrealistic goals risk ‘greenwashing’ claims resulting from potentially misleading statements and failure to disclose material facts regarding the viability of a potentially unrealistic and artificial Ceres agenda,” the attorneys general wrote.
Jason Isaac, founder of the American Energy Institute, accused Ceres of using dark money and collusive pressure campaigns to achieve its desired climate goals.
“This is not shareholder engagement or free-market activity, it’s an organized effort to manipulate entire markets and suppress competition,” Isaac said.
Attorneys general Stephen Cox, R-Alaska; Drew Wrigley, R-N.D.; Chris Carr, R-Ga.; Marty Jackley, R-S.D.; and Raúl Labrador, R-Idaho, joined Uthmeier in support of the letter.
“Ceres – a ringleader of the ‘climate cartel’ – is open about its notorious goals to achieve net-zero carbon emissions,” Uthmeier said. “The assault on American families and businesses through what Ceres calls a ‘Global World War’ to achieve net zero must stop.”
