NY State is suing JBS, the Brazilian beef giant, over its climate claims
New York Attorney General Letitia James on Wednesday sued JBS USA, the U.S. arm of the world’s largest meatpacker, accusing it of making misleading statements about its efforts to reduce greenhouse gas emissions. The lawsuit is a major setback for JBS, which is based in Brazil, as it pursues a listing on the New York Stock Exchange.
The lawsuit alleges that JBS has made a series of misleading statements about its climate change record, including claims that it will achieve net-zero greenhouse gas emissions by 2040. JBS did not immediately respond to a request for comment.
Ms James cited several examples in recent years where the company claimed it was on its way to becoming net zero, or adding no CO2 emissions to the atmosphere. One took place during an on-stage interview with Gilberto Tomazoni, the company’s global CEO, at a New York Times event in September.
Other examples of misleading claims, Ms. James says, include a 2015 industry presentation, a full-page ad JBS placed in The Times in 2021, and statements currently appearing on the company’s website.
She added that JBS has “used greenwashing and misleading statements to capitalize on consumers’ increasing desire to make environmentally friendly choices,” including statements such as: “Agriculture can be part of the climate solution. Bacon, chicken wings and steak with net zero emissions. It is possible.”
“When companies falsely advertise their commitment to sustainability, they mislead consumers and endanger our planet,” Ms. James said in a statement. “JBS USA’s greenwashing exploits the pocketbooks of everyday Americans and the promise of a healthy planet for future generations.”
JBS was already under scrutiny for its environmental performance, labor practices and past activities. In 2017, its holding company, J&F Investimentos, agreed to pay $3.2 billion in reparations and fines as part of a Brazilian federal investigation after the company acknowledged bribing government officials to sign off on investments so that it could expand its activities internationally. In a 2020 plea deal, J&F pleaded guilty to related charges filed by the U.S. Department of Justice.
Since then, the holding company says, it has developed a robust anti-corruption program for JBS, a requirement of the settlement, although it recently announced it would contest the penalty it previously agreed to in the 2017 settlement agreement. A Brazilian Supreme Court judge temporarily suspended the payment.
In the live interview with the Times, Mr. Tomazoni said JBS is working to reduce greenhouse gas emissions. “We are confident that we are doing an excellent job on that front,” he said. “And look, we promise to be net zero by 2040.”
But JBS’s claim that it could achieve zero emissions was deemed misleading by the National Advertising Review Board last year.
JBS said at the time that it disagreed with the Advertising Council’s “interpretation of how consumers perceive the disputed claims,” but agreed to comply with the recommendation to stop using the net-zero claims in “published statements and advertising claims in the future’.
JBS produces enormous quantities of beef, pork and chicken. It has annual sales of more than $50 billion and an extensive supply chain that includes tens of thousands of farms in the Amazon. A Times investigation found that ranches supplying JBS had significant overlap with indigenous lands, conservation zones or areas deforested after 2008, when laws regulating deforestation were introduced in Brazil.
JBS said at the time that the ranches had complied with rules to prevent deforestation when it bought from them, although it acknowledged that it could not trace indirect suppliers. It also said it had excluded thousands of suppliers due to irregularities.
The proposed listing on the New York Stock Exchange was met with strong opposition, bringing together an unusual alliance of environmentalists, other meatpackers and both Republican and Democratic politicians. Last week JBS said yes postpone plans for the IPO until at least the second half of the year.
Glenn Hurowitz, the CEO of Mighty Earth, a nonprofit that investigates supply chains that affect forests, said the lawsuit showed how a company’s approach to climate and environmental issues can become an obstacle to business success.
The lawsuit “should be a warning sign to other companies who think environmental issues can be easily dismissed,” he said.