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(Bloomberg) — A group of British lawmakers plans to lobby the U.S. Securities and Exchange Commission to block the world’s largest meat supplier JBS SA from listing on the New York Stock Exchange, citing efforts to fight climate change. ing.
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A draft letter signed by 12 members of Congress scheduled to be sent to SEC Chairman Gary Gensler on Wednesday says that JBS has “well-documented involvement in deforestation, human rights violations, and the taking of land from indigenous communities.” It has a history of being transformed.” “The company’s actions pose a serious threat to global climate regulation and biodiversity conservation ecosystems.”
Read more: World’s top meat packer JBS aims for long-awaited New York listing (3)
The Brazilian company has been seeking a U.S. listing for more than a decade after aggressive expansion turned it into a global giant. The company operates from Colorado to New Zealand and is the largest producer of beef and chicken, the second largest supplier of pork and the UK’s number one ready-to-eat food company. The US-based business generated nearly half of his JBS’s revenue in 2022.
JBS said in an email that it monitors 70,000 meat suppliers daily via satellite to ensure social and environmental compliance, and uses blockchain technology to monitor suppliers’ suppliers. He said he is doing so. “JBS is committed to engaging in dialogue with those who truly seek constructive debate and real action focused on developing a more sustainable food system,” the company wrote.
Before a company is listed on a U.S. stock exchange, SEC attorneys typically review the company’s prospectus and provide feedback on whether the disclosures are sufficient. Under securities law, regulators are not responsible for assessing the social impact of business models or corporate activities. However, the SEC has proposed new rules that would require companies to further disclose their environmental footprint.
Read more: SEC climate change agenda stalls as stakes rise in 2024 US election
JBS said it sees developments in the U.S. market as key to accessing a wider range of institutional investors. Recent presentations highlighted the company’s potential to lower its cost of capital and boost its stock’s valuation relative to U.S. rivals such as Tyson Foods. The company’s market value could nearly triple to nearly $30 billion, executives said.
The company was expected to face increased scrutiny from investors over its corporate governance and climate change impact. Deforestation in the Amazon is linked to cattle grazing and is a major contributor to greenhouse gases, and JBS has at times failed to keep its promise to never buy cattle from deforested areas.
The company has set a 2025 deadline to eliminate deforestation from its cattle supply in the Amazon and Cerrado regions, and announced during the recent COP28 climate change summit that Brazil’s goal of achieving full traceability of cattle was The Amazon has announced its participation in a program launched by the state of Pará. By 2026, calves will be raised in the region by using chips from birth.
One of the letter’s signatories, former Energy, Climate and Environment Minister Zac Goldsmith of Richmond Park, said: “Anyone who values the importance of protecting the planet would never allow JBS to go public. “We need to understand that it sends the wrong message.” “Our focus should be on holding such companies accountable, not promoting their financial interests.”
Representatives from the SEC did not immediately respond to an email seeking comment.
–With assistance from Ben Bain and Olivia Solon.
(Updates with JBS answer in fourth paragraph.)
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