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Environmental groups are calling on the US Securities and Exchange Commission (SEC) to halt the planned US IPO of Brazilian meat giant JBS, citing failure to deliver on its climate and corporate governance promises. The activists call it the “biggest climate risk IPO in history” and raise questions about the environmental problems of the world’s largest meat company.
The coalition of environmental groups includes Rainforest Action Network, Mighty Earth and World Animal Protection. The letter to the SEC said there was little transparency about JBS’s 2040 net-zero plans — the company recently withdrew labeling claims on that goal after an advertising review committee found it “ambitious.”
This isn’t the first time JBS is eyeing a U.S. IPO – previous attempts were thwarted by a corruption scandal in 2017 and then the Covid-19 pandemic. Now climate activists are hoping to expand that list and stop a move that aims to give up to 90% of shareholder voting rights to the founding Batista family.
“The concentration of 90% of voting power in the hands of Batista brothers Joesley and Wesley — both recognized criminals — limits the ability of outside investors to pressure JBS to end deforestation or address its outsized issuance,” Glenn said Hurowitz, CEO of Mighty Earth. He called it the “most important climate IPO in history.”
The well-documented controversies of JBS
JBS has a long history of greenwashing and human rights abuses. The brand acquired Spanish cultured meat producer BioTech Foods in 2021 and is developing a large-scale cultured meat production plant, but between 2016 and 2021 it increased its greenhouse gas emissions by 51%. Total emissions were 68 times higher than reported. JBS was also found to be one of the biggest drivers of deforestation in the Amazon, with the number of its slaughterhouses in the region more than doubling between 2009 and 2020.
Earlier this year, the company was embroiled in a child labor controversy. Allegations have been leveled against a Wisconsin cleaning company that said it employed more than two dozen minors to clean hazardous meat processing plants for JBS across the United States. And in March, JBS was included as a top culprit in World Animal Protection’s list of the meat industry’s climate impact.
Sustainable food advocacy, the Institute for Agriculture and Trade Policy, questioned the integrity of JBS with a detailed exposé ahead of COP26, noting multiple violations within just six months of publication. These included reaching an agreement with the US Department of Justice on a pricing system in beef markets, obtaining approval for the Poultry Pricing Settlement, approving the settlement on Pork Pricing Fees, and imposing a fine for a death at one of its facilities.
In a statement, the Rainforest Action Network lists the practices JBS has been accused of over the past 15 years: “illegality; deforestation; invasion and land grabbing of indigenous and traditional lands; land disputes and violence against rights defenders, slavery and labor abuse in its supply chain; lack of traceability; Corruption; and greenwashing.”
Requests an investigation
JBS, which owns over 70 brands and operates in more than 190 countries, said its planned IPO will “improve corporate governance and transparency by complying with SEC standards,” adding that it looks forward to working with NGOs.
“It would have profound consequences for the planet if JBS, the world’s worst Amazon deforester, were given the green light to demand billions of dollars from Wall Street to continue cutting down rainforests, massive pollution and land grabs .” said Hurowitz.
“Therefore, we urge the SEC to fully investigate the claims made in the IPO prospectus and to stay the IPO pending the investigation of our existing whistleblower complaint.” Mighty Earth’s complaint is directed at the sustainability-linked bonds of JBS and was filed in January.
The SEC told World Animal Protection that its concerns about JBS “are being carefully considered in light of the Commission’s overall enforcement responsibility under US federal securities laws.”
“To fulfill its role as fundamental due diligence, we are asking the SEC to conduct a thorough investigation into JBS’s pattern of alarming and unacceptable corporate behavior before granting it a listing on the NYSE,” said Merel van der Mark , a spokeswoman for the SEC Rainforest Action Network.
JBS, which owns Dutch plant-based meat producer Vivera and closed its U.S. vegan business Planterra Foods last October, isn’t the only big meat company hoping to “greenwash” its consumers by offering alternative meat products. Last week, Tyson Foods launched a controversial “climate-friendly” beef burger that claims to reduce its greenhouse gas emissions by 10% – but its net-zero plans have been called into question for some time.
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