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HSBC sounds alarm over investment in meat giant due to deforestation inaction
By Andrew Wasley and Alexandra Heal
Analysts at global banking giant HSBC have sounded the alarm over the potential risks of investing in JBS, the world’s biggest meat company, after a string of investigations raising concerns about Amazon deforestation issues in its beef supply chain.
The meat giant “has no vision, action plan, timeline, technology or solution” for monitoring whether the cattle it buys originate from farms involved in rainforest destruction, according to analysis by the bank, which has substantial investments in the troubled meat packing firm.
Revealed: new evidence links Brazil meat giant JBS to Amazon deforestation
In a recent financial report on JBS — obtained by the Bureau of Investigative Journalism — HSBC analysts said they had asked the company “multiple times” about its plan to address deforestation but appeared to be unsatisfied, leading them to conclude that “the pressure is on JBS”.
The analysts expressed disquiet that in their view the company had allowed a smaller competitor to take on the mantle of addressing forest destruction, after Marfrig — another Brazilian beef exporter — committed to full traceability of its Amazon cattle by 2025.
