Mighty Earth, a global advocacy organization, filed a whistleblower complaint to the U.S. Securities and Exchange Commission (SEC), calling for a full investigation into alleged misleading and fraudulent “green bonds” issued by JBS.
Mighty Earth asserts JBS issued $3.2 billion in “green bonds” in 2021—which JBS referred to as sustainability-linked bonds—that were tied to JBS’ stated goal of cutting emissions and achieving net zero by 2040.
The complaint states JBS omitted from investors the actual number of animals they slaughter every year and failed to report Scope 3 emissions, which are emissions from assets not owned or controlled by the reporting organization, but that the organization indirectly affects in its value chain.
“The fact that the meat company arguably responsible for more climate pollution and deforestation than any other in the world was able to raise $3.2 billion through green bonds is an indictment of the utter lack of safeguards in the world of ESG (Environmental, Social and Governance) investing,” Mighty Earth CEO Glenn Hurowitz said in a statement. “JBS’ success in duping investors shows that SEC needs to step in right away to set clear rules about what does or doesn’t count as sustainable.”
