Eighteen asset owners and managers have co-signed a letter warning against investing in global meat producer JBS, following reports linking the company to 18,000 hectares of deforestation and illegal occupation of Indigenous lands in Brazil. The letter urged the US Securities and Exchange Commission (SEC) to protect investors against the lack of transparency around JBS’ climate-related risks – specifically across Scope 3 emissions – with the company’s supply chain reportedly making up approximately 97% of its overall carbon emissions. In parallel, 20 NGOs published a briefing for shareholders evidencing the risks associated with changes to JBS’s renewed application to list on the New York Stock Exchange, in which the company is said to have dodged its ‘Net zero by 2040’ target – replacing it by ‘Climate reduction goals by 2040’. JBS has also been delisted by the Science-Based Targets initiative (SBTi) for failing to submit an adequate climate plan. In addition, NGO Global Witness revealed that Barclays had earned US$1.7 billion from financing JBS, highlighting the financial sector’s exposure to supply-chain harms. “JBS has a long history of misleading investors by exaggerating its environmental track record and minimising environmental risks,” said Annie Sanders, Director of Shareholder Advocacy at Boston-based family office Green Century. “We urge the SEC to reject JBS’ registration until it aligns its rhetoric with its true environmental impacts.” JBS could soon face new regulatory requirements, including the publication of a 1.5°C-aligned transition plan by 2027 and comprehensive ESG reporting by fiscal year 2025 under European sustainability directives – posing further complications and risks to investors. The briefing also warned minority shareholders that their voting rights might be diluted at the point of listing, effectively disenfranchising them and severely limiting their ability to influence company decisions on ESG impacts and other matters.
