(Bloomberg) -- A group of ESG-focused investors has asked US regulators to deny JBS SA a pathway to trade shares in New York over allegations that the Brazilian meat company has failed to properly disclose its environmental impact.
The group, which includes Green Century Capital Management Inc., asked US Securities and Exchange Commission Chair Gary Gensler to “decline to declare JBS’s registration effective” unless the company discloses more data including on its indirect greenhouse gas emissions.
JBS’s plan for a listing on the New York Stock Exchange — which the company sees as a key step to unlock capital for acquisitions in the US — was announced more than a year ago, and a decision by the SEC is pending. It has been met with both enthusiasm by company investors and fierce opposition from environmental groups and lawmakers.
“JBS has a long history of misleading investors in its corporate filings by exaggerating its environmental track record and minimizing environmental risks,” according to a Sept. 8 letter to the SEC released Wednesday. The group includes 18 investors and organizations representing $22.2 billion in assets under management.
JBS said the allegation that it hasn’t been properly disclosing its indirect emissions “is patently false.” The company has for years reported comprehensive data on its emissions according to globally recognized industry standards and actively worked with partners including farmers to identify ways to reduce emissions, it said in a statement.
The meat producer added that since last year it’s been subject to the information and reporting requirements of the U.S. Securities Exchange Act of 1934 and other federal securities laws.
The meat producer has pledged to slash greenhouse gas emissions to net zero by 2040, depending on numerous factors outside its control such as changes in legislation and new technologies. The company has also committed to eliminate illegal deforestation from its Brazilian supply chain — including the suppliers of the ranchers it buys cattle from — by 2025.
JBS shares rose as much as 3.6% Wednesday in Sao Paulo, extending this year’s gain to 34%.
An SEC spokesperson declined to comment.
(Updates with share move in eighth paragraph)
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