JBS Faces US Lawsuit Over Allegedly False Climate Claims

Brazil’s meatpacking giant JBS faces legal action over climate claims as environmental watchdog Mighty Earth has filed a lawsuit accusing the company of making misleading environmental commitments ahead of November’s global climate talks in Brazil.

The advocacy group alleges in its filing with the District of Columbia Superior Court that JBS’s US unit violated consumer protection laws by making deceptive claims about its commitment to reach net-zero emissions by 2040. The lawsuit claims JBS made “material omissions” about the environmental impact of its operations.

“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. Wijeratna pointed out that the company has failed to present a credible plan to address emissions throughout its supply chain.

This legal challenge is part of a growing wave of “greenwashing” cases targeting major corporations over environmental claims. Just last week, French oil giant TotalEnergies faced a similar successful challenge in court.

The timing is particularly significant as it comes days before New York Attorney General Letitia James is expected to file an amended complaint in a comparable case against JBS. The lawsuit also arrives just before Brazil hosts the United Nations Climate Change Conference (COP), putting additional scrutiny on the country’s largest meat processor.

JBS has firmly rejected the allegations, stating it “categorically rejects” claims suggesting its sustainability goals were misleading. “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,” the company said in a statement.

However, the lawsuit points to apparent contradictions in JBS’s climate messaging. The company’s chief sustainability officer told Reuters in January that its “net zero by 2040” target was merely an aspiration rather than a promise, though JBS later claimed in a written statement that its climate ambitions remained unchanged.

Mighty Earth has expanded its campaign beyond just targeting JBS directly. The group has also filed a complaint with Britain’s financial regulator concerning Barclays, which underwrote $3 billion in JBS-issued sustainability-linked bonds (SLBs) in 2021. Mighty Earth alleges these bonds were “misleading” and allowed JBS to secure lower borrowing costs based on deceptive environmental claims.

JBS defended its sustainability-linked bonds, stating they are tied to verified performance targets with progress that is “transparently disclosed and audited annually.” Barclays and the UK’s Financial Conduct Authority (FCA) declined to comment on the allegations, though the FCA had previously stated it was monitoring the market for sustainability-labeled financial products.

The meat industry, particularly beef production, has faced increasing scrutiny for its environmental footprint. Cattle ranching is a leading driver of deforestation in Brazil’s Amazon rainforest and a significant source of methane emissions, a potent greenhouse gas. As one of the world’s largest meat processors, JBS’s environmental practices have substantial global impact.

This case represents a broader trend of legal challenges targeting financial institutions over their roles in supporting companies with questionable environmental practices. Dutch bank ING was sued in March over its financing of fossil-fuel companies, while BNP Paribas faced a similar case from climate and human-rights activists in 2023.

The lawsuit against JBS highlights the growing legal risks companies face when making ambitious climate commitments without clear implementation plans. As regulators, investors, and consumers increasingly demand accountability for environmental claims, companies across sectors are finding their sustainability statements subject to unprecedented scrutiny and potential litigation.