Mighty Earth’s Lawsuit Against JBS and Barclays’ is Stark Reminder of the Financial Risks Associated with Factory Farming
Mighty Earth has filed complaints in the US and UK against Barclays and factory farm giant JBS over alleged greenwashing and financial fraud tied to billions in ‘sustainable’ finance. What does this mean for you, and is your bank also financing factory farming?
The advocacy group is challenging the credibility of Sustainability-Linked Bonds (SLBs) - bonds where the cost of borrowing is tied to performance on sustainability targets - issued by JBS. Barclays’ underwriting of these bonds has been seen as enabling misleading climate claims and environmental destruction.
The UK Complaint: Barclays Under the FCA Spotlight
Mighty Earth’s UK complaint targets Barclays’ underwriting of $3 billion in JBS SLBs, claiming these so-called “sustainable” bonds were underpinned by false environmental promises.
These instruments aim to tie financing to the borrower’s environmental performance, and allow JBS to benefit from lower interest rates.
However, Mighty Earth contends that JBS failed to provide robust transition plans, and did not outline a target for the company’s Scope 3 emissions - emissions generated through its supply chain, such as soya used for feed - which account for a whopping 97% of its total emissions.
Barclays reportedly profited massively from these deals - earning an estimated $1.7 billion between 2017 and 2023 - while allowing JBS to secure lower-cost financing without meaningful ESG commitments.
Barclays is the UK’s largest financier of factory farming and has been called the ‘go-to bank for JBS’, despite a long history of documented financial, environmental, and social violations linked to the meat company.
Mighty Earth argues that Barclays knowingly facilitated misleading sustainability claims, risking consumer trust, investor confidence, and the integrity of UK financial markets.
US Lawsuit: JBS’s Net Zero Claims on Trial
In Washington, D.C., Mighty Earth filed suit against JBS USA, accusing it of deceiving the public with “Net Zero by 2040” marketing while failing to account for the vast majority of its greenhouse gas emissions (Scope 3).
The complaint alleges violations of the D.C. Consumer Protection Procedures Act, pointing out material omissions regarding JBS’s environmental impact and lack of credible plans to achieve its climate targets.
JBS’s methane emissions - one of the most potent greenhouse gases - are greater than both Shell & ExxonMobil’s combined.
JBS's greenhouse gas emissions are the highest of the largest livestock companies, and almost comparable to the emissions of the world’s largest oil companies.
The lawsuit highlights that JBS locked in historically low borrowing costs from SLBs, enabling the company to benefit financially from its alleged greenwashing.
Mighty Earth is also seeking regulatory and legal remedies to force JBS to remove misleading “Net Zero” statements from its public-facing communications and calls on US authorities for stricter oversight.
Calls for Accountability and Reform
Mighty Earth’s complaints include urgent recommendations for financial regulators and Barclays itself:
Thorough investigation into JBS’s criminal conduct and financial flows into UK markets
Official acknowledgment that JBS’s Net Zero banner and SLBs qualify as fraudulent
Mandated improvements to Barclays’ due diligence and sustainability policies, including a commitment to end new funding for JBS and adopt stronger forest and agriculture safeguards
Increased government oversight, mandatory disclosure of agricultural emissions, and stricter reporting rules for sustainable finance claims
Industry and Regulatory Response
Barclays and JBS have vigorously denied allegations of misleading investors or intent to deceive, insisting that their climate strategies and bond deals are supported by independent verification and ongoing performance tracking.
However, the recent £42 million fine imposed on Barclays by the UK Financial Conduct Authority for unrelated due diligence failures only amplifies scrutiny around its involvement with JBS.
What’s Next?
Mighty Earth’s activism resonates amid mounting calls for transparency and integrity in sustainable finance, especially as the UK aims to position itself as a global hub for ESG investing and as new regulation looms.
As regulators investigate, these cases will set a precedent for how banks, meatpackers, and the broader financial sector must conduct business in the climate-conscious era.
What This Means For the Financial Sector
When a powerhouse bank like Barclays bankrolls “sustainable” deals for a climate super-polluter like JBS, the fallout isn’t just about bad headlines - it undermines consumer and business trust in our banking system, and poses serious risks to the stability of the financial system itself.
For banks, this scandal highlights serious risks posed by continued funding of the factory farm sector:
Reputational Risk: Greenwashing and media coverage of scandals creates a loss of public and investor trust. This can impact customer retainment and growth, cause shareholders to take action, and take years to repair a damaged brand image.
Legal and Regulatory Risk: Penalties, lawsuits, and regulatory crackdowns are immediate costs affecting banks’ balance sheets in fighting legal action or paying fines. Barclays, for example, just paid a £42 million fine for inadequate due diligence—money lost and reputation tarnished.
Transition Risk: If climate targets or deforestation pledges aren’t met, the value of “sustainable” bonds and loans can crash, cause financial losses for investors.
System-wide Risks: When banks continually fund mega-polluters, they help lock the economy into climate chaos - making everyone, not just their shareholders, more vulnerable as warming destabilizes markets and the financial sector.
Violating the Trust of Customers
Banks aren’t just stewards of their own capital—they’re guardians for millions of customers, pension funds, and investors. By failing to do proper climate and sustainability checks, banks put their clients' savings and investments at risk.
Supporting polluters like JBS doesn’t just hurt shareholders, it supercharges global warming, drives species decline, and accelerates rainforest destruction.sentientmedia
In a world where climate risk is increasingly recognised as a financial risk, banks’ need to take credible action on climate change and nature loss on behalf of their customers.
How You Can Make a Difference
Is your bank also financing factory farm giants like JBS? Find out with at bankfornature.org
You have a voice in this system, and Bank for Nature makes it easier than ever to use it. On your bank’s page, you can send a message to urge your bank to end support for destructive factory farming, shift its investments toward true sustainability, and manage the financial risks from nature loss.
If you want to guarantee that your money isn’t financing factory farming or nature loss, you can use our tool to find a good bank. For those in the UK, you can read our article on the most and least nature-friendly banks.
Together, consumers can reshape the financial sector - driving billions away from the most harmful practices and toward solutions that restore nature. Use our tool and take action today for a safer, more just food system and a thriving planet.