NY Announces Lawsuit Against JBS
New York State Attorney General Letitia James has filed a lawsuit against JBS USA Food Co, a subsidiary of the world's largest beef producer, for allegedly misleading the public about its impact on the environment in order to boost sales. The lawsuit claims that JBS USA Food Co's commitment to achieve "Net Zero by 2040" is false and misleading, as the company has no viable plan to reach net zero greenhouse gas emissions by that deadline.
According to the lawsuit, JBS has admitted that its net zero commitment did not take into account the majority of greenhouse gas emissions from its supply chain, including the impact of deforestation in the Amazon. The company's plans to increase production, which will result in a larger carbon footprint, further undermine the feasibility of its net zero goal. This has led Attorney General James to accuse JBS of greenwashing, exploiting the desire of consumers to support environmentally conscious brands in order to increase profits.
The lawsuit, which was filed in a New York state court in Manhattan, seeks a $5,000 civil fine per violation of state business laws, as well as the recoupment of ill-gotten gains from false sustainability claims. JBS's businesses include Pilgrim's Pride, one of the largest U.S. chicken producers, and the company generated approximately $53.5 billion in revenue in the first nine months of 2023, with a majority of that revenue coming from North America and Central America.
JBS has vehemently denied the allegations, stating that it disagrees with the lawsuit and remains committed to reducing its environmental impact. The company also stated that it will continue to work with farmers, ranchers, and other stakeholders to achieve a more sustainable future for agriculture. JBS's shares trade in Brazil, and the company has been seeking to list its shares in the United States.
New York Attorney General James accuses JBS of engaging in deceptive business practices and false advertising in violation of state laws. The attorney general's office contends that consumers are increasingly concerned about their impact on the environment and are willing to pay more for products from companies that demonstrate a commitment to sustainability. JBS's claims of achieving net zero emissions by 2040 have been deemed by experts to be fraudulent and unsubstantiated, and the company has ignored previous warnings from industry watchdogs, including BBB National Programs' National Advertising Division.
New York’s short bus AG is suing farmers for feeding the public https://t.co/IzAsrIcEYX
— Tom Elliott (@tomselliott) February 28, 2024
According to the lawsuit, JBS USA has misrepresented its sustainability efforts by claiming to be part of the climate solution and pledging to cut emissions and eliminate deforestation from its supply chain. However, the company has not fully accounted for its greenhouse gas emissions or taken into account the impact of deforestation in the Amazon. This has led to claims of greenwashing, as JBS has repeatedly made these sustainability claims while also telling its industry peers that it needs to appeal to climate-conscious consumers in order to remain competitive.
JBS has also faced criticism for its continued deforestation in the Amazon and its heavy reliance on beef production, which is the top driver of deforestation in tropical forests and a major source of greenhouse gas emissions. The company's net zero commitment has been deemed unfeasible given its current business operations and plans for future production increases. This has led to concerns about the company's commitment to actually reducing its environmental impact and has prompted the attorney general's office to take legal action.
The lawsuit filed by Attorney General James seeks to hold JBS accountable for its misleading claims and ensure transparency and honesty in its marketing and advertising. It sends a strong message to other companies that deceiving consumers through greenwashing will not be tolerated. The outcome of this lawsuit will have implications for the entire food industry, as consumers become increasingly concerned about the environmental impact of the products they purchase. As the fight against climate change continues, it is crucial for companies to be held accountable for their actions and for consumers to have access to accurate information about the sustainability efforts of the companies they support.