JBS Sued in US for Alleged False Climate Claims

Environmental advocacy group Mighty Earth has filed a lawsuit against JBS USA, accusing the world’s largest meat processor of making false climate claims, just weeks before Brazil hosts crucial global climate talks in November. The legal challenge, filed with the District of Columbia Superior Court in Washington, represents the latest case in a growing trend of litigation targeting companies for alleged “greenwashing.”

The lawsuit alleges that JBS made deceptive statements regarding its commitment to achieve net-zero emissions by 2040 and claims the company made “material omissions” about the environmental impact of its operations, potentially violating the DC 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. Wijeratna emphasized that the company lacks a credible plan to address emissions throughout its supply chain, where the majority of its environmental impact occurs.

The case emerges just days before New York Attorney General Letitia James is expected to submit an amended complaint in a similar proceeding, intensifying scrutiny on the meat giant.

JBS has firmly rejected the allegations, stating it “categorically rejects” claims suggesting its sustainability goals are misleading or that it obtained financing under false pretenses. The company defended its approach, asserting that its actions are “guided by science, transparency, and accountability” and emphasized its commitment to delivering “measurable, meaningful progress toward a more sustainable global food system.”

However, in a January interview with Reuters, JBS’s chief sustainability officer characterized the company’s “net zero by 2040” goal as an aspiration rather than a promise, although JBS later clarified in writing that its climate ambitions remained unchanged.

Beyond the lawsuit, Mighty Earth has escalated its campaign by submitting a complaint to Britain’s financial regulator regarding alleged misconduct by Barclays. The advocacy group claims the bank underwrote $3 billion of JBS-issued sustainability-linked bonds (SLBs) in 2021 that were “misleading.” These bonds were issued shortly after JBS established its net-zero goal.

In its court filing, Mighty Earth contends that the SLBs allowed JBS USA to profit from deception by securing lower borrowing costs based on sustainability commitments it allegedly had no intention of honoring. JBS responded that such bonds are tied to verified performance targets, with progress transparently disclosed and independently audited annually.

Barclays and Britain’s Financial Conduct Authority (FCA), which announced in August that it was monitoring the market for sustainability-labeled financial products, both declined to comment on the matter.

The legal challenge against JBS follows a successful case against French oil major TotalEnergies last week and represents part of a broader trend of financial institutions facing increased scrutiny over their climate commitments. In March, Dutch bank ING was sued over its financing of fossil-fuel companies, while climate and human-rights activists filed a similar case against BNP Paribas in 2023.

The lawsuit comes at a particularly sensitive time for JBS, as its home country Brazil prepares to host the UN Climate Change Conference (COP) in November. The meat industry faces growing pressure to address its environmental impact, with livestock production responsible for approximately 14.5% of global greenhouse gas emissions, according to the Food and Agriculture Organization.

For JBS, the world’s largest protein producer with operations across multiple continents, the litigation highlights the increasing expectations for corporations to substantiate their environmental commitments with concrete, verifiable action plans as investors and consumers grow more environmentally conscious.