By Simon Jessop, Kirstin Ridley and Luciana Magalhaes
LONDON (Reuters) -Brazil’s JBS has been accused of making false climate claims in a U.S. lawsuit filed by advocacy group Mighty Earth, a fresh legal challenge for the world’s biggest meatpacker ahead of global climate talks in its home country in November.
The lawsuit against JBS’s U.S. unit is the latest in a string of cases against companies over allegations of “greenwashing”, including a successful challenge to oil major TotalEnergies in a French court last week.
The case, filed with the District of Columbia Superior Court in Washington, comes days before New York Attorney General Letitia James is scheduled to submit an amended complaint in a similar case.
‘MATERIAL OMISSIONS’ ALLEGED
Mighty Earth alleges JBS made deceptive claims about its commitment to reach net-zero emissions by 2040 and that “material omissions” about the environmental harm caused by its operations violated the D.C. Consumer Protection Procedures Act.
“We’re challenging JBS USA’s climate claims to be ‘net zero by 2040’ as false and misleading,” said Alex Wijeratna, Mighty Earth’s senior director of investigations and law, noting the company had no credible plan to tackle supply chain emissions.
JBS said it “categorically rejects” claims suggesting its sustainability goals were misleading or that financing was obtained under false pretences and that it was making measurable progress in addressing climate change.
“Our actions are guided by science, transparency, and accountability, and we remain focused on delivering measurable, meaningful progress toward a more sustainable global food system,” it said in a statement.
JBS’s chief sustainability officer told Reuters in January that its “net zero by 2040” goal was an aspiration, not a promise, although the company told Reuters in a written statement at the time that its climate ambitions were unchanged.
The advocacy group told Reuters it had also sent Britain’s financial regulator a complaint about alleged misconduct by Barclays because it underwrote $3 billion of JBS-issued sustainability-linked bonds (SLBs) in 2021, which were “misleading”.
JBS said that such bonds were tied to verified performance targets, with progress transparently disclosed and audited annually.
Barclays and the Financial Conduct Authority (FCA), which said in August it was monitoring the market for sustainability-labelled products, declined to comment.
Mighty Earth alleges in its lawsuit that JBS USA’s SLBs, issued shortly after it set its net-zero goal in 2021, allowed it to profit from its deception by securing low borrowing costs.
The separate complaint against Barclays is the latest challenge to banks over their duties of care, risk controls and roles as gatekeepers to financial markets and climate targets.
ING was sued in March over its financing of fossil-fuel companies and climate and human-rights activists filed a similar case against BNP Paribas in 2023.
(Additional reporting by Nate Raymond and Alexia GaramfalviEditing by Tomasz Janowski)
Comments