World’s largest beef producer ‘greenwashes’ operations, New York attorney general says

MANHATTAN (CN) — New York Attorney General Letitia James accused the American subsidiary of the world’s largest beef producer Wednesday of misleading the public about its environmental impact.

The lawsuit, filed in New York County Supreme Court, claims JBS USA Food Company misrepresented its commitment to reduce greenhouse gas emissions by 2040, despite plans to substantially increase its meat production in the coming years.

Spurred by increasing public concern about climate change and environmental sustainability, James claims the company has taken advantage of consumer concerns about greenhouse gas emissions to increase demand.

“For the average consumer, it is extremely difficult to verify the truth and accuracy of environmental marketing claims when making purchases,” James says in the lawsuit. “Thus, consumers who want to buy carbon neutral, sustainable or net-zero products generally must trust the marketing claims made by corporations.”

In 2021, the Brazil-based JBS Group made its sweeping commitment to be “Net Zero by 2040.”

“The commitment spans the company’s global operations … as well as its diverse value chain of agricultural producer partners, suppliers and customers in their efforts to reduce emissions across the value chain,” the 2021 announcement stated.

In its pledge, the company promised to reduce its direct and indirect emissions from company-owned facilities. It also promised to reduce emissions associated with electricity, heat and cooling, along with additional supply chain emissions.

Since the announcement, this promise has been touted in the company’s sustainability reports, a full-page advertisement in The New York Times and on its consumer-facing websites, according to James in the suit.

But the attorney general claims the company has yet to develop a concrete plan to achieve its net zero commitment.

In June 2022, the nonprofit group Institute for Agriculture & Trade Policy filed a complaint with the National Advertising Division of the Better Business Bureau claiming the company misled consumers into believing that JBS USA had a concrete plan for implementing its goal to reduce greenhouse gas emissions.

According to James, the National Advertising Division found that JBS USA’s “Net Zero by 2040” pledge was “unsubstantiated and confusing to consumers.”

“When companies falsely advertise their commitment to sustainability, they are misleading consumers and endangering our planet,” James said in a statement. “JBS USA’s greenwashing exploits the pocketbooks of everyday Americans and the promise of a healthy planet for future generations.”

Since the finding, JBS USA has announced it would take down the disputed representations. On its website, James points out, the company changed the term “commitment to achieve” net zero emissions by 2040 to “ambition to achieve.”

But, James says, the company has failed to substantially change its marketing: its 2021 pledge can still be accessed on its website along with the April 2021 New York Times advertisement.

James further claims the company has no reasonable basis for its pledge because its Scope 3 emissions calculations —referring to supply chain emissions — hasn’t accounted for deforestation of the Amazon rainforest and other land use changes in its supply chain.

“Deforestation for cattle operations contributes to the JBS Group’s Scope 3 emissions not only through the immediate release of greenhouse gases from destroyed biomass, but also through the resulting inability of that biomass to subsequently absorb and store greenhouse gas from the atmosphere,” James says in the lawsuit.

James also points out that the company plans to increase its beef production over the coming years, despite scientists’ recommendations that beef production needs to decrease to reduce greenhouse gas emissions.

In an August 2023 investor meeting cited in the lawsuit, the company stated the need to produce “70% more protein” by 2050.

“The JBS Group’s ‘Net Zero by 2040’ commitment is misleading because it is not compatible with either its current business practices or its plan to substantially increase beef production,” James says.

In a statement, New York State Senator Pete Harckman, praised James’ lawsuit.

“As the fight against climate change presses on around the world, it is heartening to know that many corporate entities are working to reduce their carbon footprint and greenhouse gas emission,” Harckman, who serves as the chair of the Committee on Environmental Conservation, said. “Deceiving consumers in this regard is doubly shameful because, falsehoods aside, major efforts along these lines are truly needed.”

James requests an injunction to prevent JBS USA from continuing these marketing practices and an order for the subsidiary to forfeit profits made as a result. The attorney general is represented by Rita McDonough and other assistant attorneys general from the Environmental Protection Bureau.

Follow @NikaSchoonover

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