JBS’s Initial Public Offering: Threats to Environmental and Human Rights

Authors

Kayla Thompson, Indiana University Maurer School of LawFollow

Abstract

This paper centers around the decision to be made regarding JBS, the world’s largest meat company, wanting to list shares on the New York Stock Exchange (NYSE), and the environmental and social impacts that could result from the Security and Exchange Commission’s (SEC) approval. JBS has been at the center of various controversies over the last several years, including sourcing cattle from ranches acquired through illegal deforestation, engaging in greenwashing practices, incorrectly reporting greenhouse gas emissions, and engaging in human rights abuses. Many environmental groups have filed complaints with the SEC concerning JBS’s bid to list on the NYSE. The SEC recently approved “The Enhancement and Standardization of Climate-Related Disclosures for Investors” rule, which requires public companies to disclose and report certain environmental, social, and governance (ESG) information such as their emissions and carbon footprint relating to their business practices. As the SEC has issued a stay on the final rule pending litigation in the Eighth Circuit, public companies are not yet required to disclose their environmental impact to investors or the Commission until the rule goes into effect. Additionally, human rights abuses have been largely governed by soft law—non-binding guidelines —which could allow JBS to escape liability if the SEC assents to its bid to go public. If the JBS proposal is approved, it is likely the increase in investment, funding, and widespread knowledge may lead to an escalated disregard for human rights and environmental concerns. While this paper will largely disagree with JBS’s proposed dual listing on the NYSE, it will also address arguments in favor of the decision and ways that the environment and humans can be protected going forward.

Recommended Citation

13 Indiana Journal of Law and Social Equality 380