In late September 2025, Montana Attorney General Austin Knudsen, joined by 15 other state attorney generals, sent letters to several major technology companies launching an investigation into their renewable energy claims. The Montana AG’s letter alleges that the tech companies use “environmental accounting gimmicks to claim they are 100% powered by renewable energy.” Specifically, the letter argues that the companies improperly claim emissions reductions based on purchases of unbundled “renewable energy certificates” (RECs) that do not actually reduce emissions. The AGs argue the companies’ claims are deceptive to consumers and contribute to a national “grid-reliability crisis” by pressuring utilities to retire fossil-fuel plants prematurely. The letter requests detailed information on the companies’ REC purchases and energy sourcing.
This coordinated investigation signals a growing appetite among some state AGs to challenge corporate sustainability efforts, and public claims about these efforts. The investigation also reflects the potential for a more expansive reading of consumer protection laws that could place well-intentioned climate and sustainability initiatives under closer scrutiny. Companies using RECs or offsets to support “100% renewable” or “net-zero” claims should anticipate similar attention from other states.
Moreover, state AG investigations are often precursors to private litigation and shareholder inquiries. Plaintiff firms can cite AG investigations as indications of wrongdoing in support of consumer or shareholder litigation. Similarly, shareholders can request corporate records under books and records laws to obtain documents in support of potential claims. We previously wrote about litigation arising from carbon emissions claims.
Companies should act now to:
State enforcers are no longer watching from the sidelines. Clear, data-backed claims are the best protection against investigation and reputational damage. Our team can help assess your company’s exposure, review public statements, and update compliance materials to reflect the shifting enforcement landscape.