New Climate-Smart Agriculture Investment by JBS USA in New York
- JBS USA, the U.S. subsidiary of the world’s largest beef and poultry producer, has committed to investing $1.1 million in climate-smart agriculture initiatives for New York farmers. This decision comes as part of a settlement to resolve a lawsuit that alleged misleading net-zero claims by the company. New York Attorney General Leticia James announced this development on Monday.
- As per the settlement, JBS will now refer to its 2040 net-zero target as a “goal” instead of a “commitment” or “pledge.” The company’s website now describes the target as an “ambition”. Additionally, JBS will clarify the actions it is taking in any consumer-facing statements that mention the company is “taking real action” or similar language, as outlined in the agreement.
- New York Attorney General James filed a lawsuit against JBS in February 2024, alleging that the company was providing misleading information about its efforts to reduce greenhouse gas emissions. The lawsuit claimed that JBS did not have a viable plan in place to reach its 2040 net-zero goal.
Insights on the Settlement
JBS filed a motion to dismiss the lawsuit in May 2024, and the New York State Supreme Court dismissed the suit without prejudice in January, allowing James’ office to refile the claim if necessary. Following the dismissal, James’ office issued an investigative subpoena to JBS USA in February. The recent settlement indicates that the AG’s office has accepted the relief and assurances outlined in the agreement instead of filing an amended complaint at this time.
As part of the settlement, JBS USA will contribute $1.1 million to the New York soil health resilience program at Cornell University’s College of Agriculture and Life Sciences to support climate-smart agriculture. This donation is subject to approval by both JBS and Cornell’s gift acceptance committee, with the condition that an AG representative be included on the program’s steering or advisory committee.
Commenting on the settlement, Attorney General James stated, “New Yorkers deserve transparency regarding the environmental impact of the products they purchase. JBS USA made bold claims about its climate efforts without a solid plan to substantiate them.”
In March 2021, JBS USA announced its commitment to achieve net-zero greenhouse gas emissions by 2040 and communicated this goal to the Science Based Targets initiative for validation. However, the AG’s investigation revealed that the company had not developed a detailed plan or assessed the feasibility of achieving this goal before making it public.
The investigation also highlighted disagreements between JBS and SBTi regarding methodology and standards, leading to JBS withdrawing from the validation process. Under the agreement, JBS USA did not admit or deny the findings of the investigation.
In addition to revising its communication regarding the 2040 target, JBS will conduct annual reviews of its consumer-facing statements related to the goal for three years. These reports will be shared with the attorney general’s office, as specified in the agreement.