Recently, Brazillian meat producer JBS began trading on the New York Stock Exchange. However, its introduction to the NYSE has drawn the ire of NGO Mighty Earth, which alleges that JBS violates multiple laws in its supply chain and should be delisted. Mighty Earth laid out its case in a letter to NYSE stating:
“The Lacey Act targets not only the final act of export, but every illegal act in the supply chain. It is a federal offense to import or trade goods derived from wildlife or plant-related activity that violates a foreign law protecting natural resources… If the alleged conduct had occurred within the United States, JBS’s supply chain would violate multiple aspects of this statute, including grazing cattle on protected reserves, indigenous lands, or conservation zones in violation of Brazilian environmental laws; breaching animal health and traceability laws designed to prevent and detect livestock sourced from illegal deforested land, and falsifying supply chain documentation to disguise the illicit activity.”
JBS is no stranger to ESG controversy. In 2024 the New York Attorney General filed a “climate-washing” suit against the company that was subsequently dismissed. Earlier this year, JBS caught heat for appearing to walk back climate targets. While it is unlikely that the NYSE will delist JBS, Might Earth’s letter outlines legal theories that could be adopted by other parties. Blue state Attorneys General or even federal agencies under future administrations may decide to give these allegations a second look.
Our members can read more about ESG litigation here.
DID YOU KNOW … we are much more than just blogs. PracticalESG provides tools and guidance for in house staff and outside advisors – from beginners to senior practitioners. We scour third party resources, vetting and filtering them – saving you hours of your day. And we don’t use AI to produce any content or have annoying ads.
If you’re not already a member, sign up now and take advantage of our no-risk “100-Day Promise” – during the first 100 days as an activated member, you may cancel for any reason and receive a full refund. But it will probably pay for itself before then.
Are you a client of one of our Partners? Contact them for exclusive pricing packages for PracticalESG. Practical Guidance for Companies, Curated for Clarity.
If you aren’t already subscribed to our complimentary ESG blog, sign up here for daily updates delivered right to you.
Image credit: Timon – stock.adobe.com
