New York AG Sues Beef Producer

February 28, 2024

NEW YORK – New York Attorney General Letitia James today filed a lawsuit against JBS USA Food Company and JBS USA Food Company Holdings (JBS USA), the American subsidiary of the world’s largest producer of beef products, for misleading the public about its environmental impact. JBS USA has claimed that it will achieve net zero greenhouse gas emissions by 2040, despite documented plans to increase production, and therefore increase its carbon footprint.

Beef production emits the most greenhouse gasses of any major food commodity, and animal agriculture accounts for 14.5 percent of annual global greenhouse gas emissions. In 2021, the JBS Group, JBS USA’s global parent company, reported total global greenhouse gas emissions of over 71 million tons, more than the total emissions of some countries. Attorney General James seeks to stop JBS USA from continuing these false and misleading marketing practices, pay disgorgement of all ill-gotten profits, and penalties.

https://ag.ny.gov/press-release/2024/attorney-general-james-sues-worlds-largest-beef-producer-misrepresenting

This is the latest in an increasing series of Greenwashing suits around the world. Some notable examples.

Greenwashing in finance: Deutsche Bank

In 2022, Deutsche Bank came under investigation for investment fraud within DWS, which manages about €928 billion ($994 billion) in assets¹. Allegations that investors were misled about its “green” investments led to police raids, where evidence was collected that ESG factors had not been taken into account at all in many of the investments. 

https://www.circularise.com/blogs/greenwashing-lawsuits-in-businesses-part-2

Greenwashing in automotive: Volkswagen AG Clean Diesel

Automaker Volkswagen pleaded guilty to installing software designed with the intention to mislead regulators and consumers about their diesel vehicle emissions. Multiple class action suits were also filed against them for false advertising in their “Clean Diesel” advertising campaign, in which they claimed that these vehicles were “low-emission,” “environmentally friendly,” “met emissions standards,” and “would maintain a high resale value.” 

https://www.circularise.com/blogs/greenwashing-lawsuits-in-businesses-part-2

Greenwashing in bioplastics: Danimer Scientific, Inc

Shareholders have filed a class action suit against biopolymer plastics manufacturer Danimer. The company claims its proprietary plastic substitute, Nodax, is 100% biodegradable, renewable and sustainable. However, an investigative article published in The Wall Street Journal and subsequent reports alleged that Danimer’s products were not able to completely biodegrade in oceans and landfills as claimed. This caused Danimer’s stock price to plummet, and their investors to incur serious losses.

https://www.circularise.com/blogs/greenwashing-lawsuits-in-businesses-part-2

The overall lesson seems to be, don’t pander to environmentalists, it will come back to haunt you.