Brazilian beef giant JBS is encountering growing opposition to its planned US share listing, as accusations of “greenwashing” intensify.
Lawsuit Allegations and Environmental Concerns
New York’s attorney-general Letitia James filed a lawsuit against JBS’s American arm, alleging misleading environmental claims. The lawsuit challenges JBS’s commitment to achieving “net zero” greenhouse gas emissions by 2040, citing a lack of feasible plans. Additionally, environmentalists have criticized JBS for its role in Amazon deforestation, linking cattle rearing to the destruction of the rainforest.
Political and Regulatory Scrutiny
US senators expressed concerns over the proposed listing, citing potential anti-competitive conduct and environmental impacts. They urged regulators to closely examine JBS’s disclosures, highlighting past corruption scandals involving its controlling shareholder, J&F Investimentos.
JBS’s Response and Sustainability Efforts
JBS refuted the allegations, emphasizing its rigorous monitoring of suppliers to prevent illegal practices. The company stated its commitment to eliminating deforestation from its supply chains and promoting sustainability in agriculture. Despite the controversy, JBS plans to continue its listing proposal, aiming for dual listings in the US and Brazil.
Investor Dissent and Market Dynamics
JBS’s listing proposal faces challenges from minority shareholders and investor dissent. Major asset managers like Vanguard and BlackRock have voiced concerns over governance issues and climate risk disclosures, signaling potential resistance within the investor community.
Trend of Foreign Companies Seeking US Listings
JBS’s listing aspirations align with a broader trend of foreign companies seeking US listings for enhanced liquidity and valuation. This trend includes recent listings by companies like Kazakh fintech Kaspi and British gambling group Flutter.
In summary, JBS’s listing plans face multifaceted challenges, encompassing legal, environmental, regulatory, and investor concerns. The outcome of these challenges will shape the future trajectory of the Brazilian meatpacker in the global market.
Related: The Latest on JBS SA’s Dual Listing Delay
Sources include: Financial Times
