Mighty Earth has filed a formal complaint with the financial watchdog in the UK calling for an investigation into how Barclays bankrolled billions to Brazilian meat giant and climate super polluter, JBS. The Financial Conduct Authority (FCA) is being urged to investigate market misconduct by Barclays in underwriting $3 billion of JBS’s Sustainability-Lined Bonds (SLBs), which are alleged to be fraudulent.

Barclays is accused of greenwashing, fraud, financing illegal activity, money laundering and dismissing due diligence mechanisms in its dealings with JBS.  In July of this year, the FCA fined Barclays £42 million for a similar lack of due diligence in handling financial crime risk. In the case of JBS, Barclays either turned a blind eye, or wilfully manipulated its policies to allow it to continue profiteering from JBS’s super-polluting meat operations. Barclays underwriting of JBS’ dodgy SLB’s alone formed 40% of the banks sustainable financing targets in 2021. Whilst the bank publicised its green finance credentials, Barclays was bankrolling JBS’s criminal and destructive practices.

The Mighty Earth complaint outlines how Barclays, being the UK’s largest financier of the world’s biggest climate-polluting meat company, is undermining both consumer trust and the international reputation and integrity of not just Barclays, but the whole UK financial sector.

Gemma Hoskins, Global Climate Director at Mighty Earth said: 

“It’s scandalous that Barclays has made billions by turning a blind eye to JBS’s litany of wrongdoing over the last decade, supporting the meatpacker’s destructive business model of deforestation, pollution and corruption, and knowingly being complicit in a multi-billion-dollar sustainable finance fraud, which is greenwashing with bells on.”

“Barclays has a ringside seat to JBS’s climate-wrecking operations and yet bankrolled its so-called sustainable bonds issuance to the tune of billions, when it was fully aware that the meat giant’s massive emissions, larger than Spain’s, mean it has no chance of achieving its climate goals.”  

“Barclays has seemingly failed to carry out due diligence on one of its biggest clients and hasn’t been honest with its customers and investors. It’s time for the FCA to take a proper look at the toxic relationship between Barclays and JBS, which is breaching consumer trust and threatening the international reputation of the entire UK finance sector.”

Barclays as JBS’s “go-to bank”

Barclays has been by JBS’s side for the last decade, providing nearly $7 billion in finance, while the meatpacker ran up a long rap sheet of financial and corporate criminality. JBS’s two ultimate controlling shareholders, brothers Joesley and Wesley Batista, have been and remain subject to numerous criminal investigations and sanctions. Yet none of this has deterred Barclays from retaining JBS as a major client, bankrolling it for billions, prompting Bloomberg to dub Barclays as the “go-to bank for JBS after other institutions backed away from its scandals.

Bogus bonds scandal

In 2021, with a front row seat to JBS’s corporate malfeasance, Barclays acted as a leading facilitator as the Brazilian meat giant launched one of the largest ever portfolios of SLBs, resulting in the lowest borrowing costs in JBS’s history. However, the SLBs targets were not only negligible in their “sustainability,” but falsely claimed to be integral to JBS’s “net zero by 2040” commitment. Acting as lead and co-underwriter of the US$3 billion of JBS-issued SLBs in 2021, it’s alleged Barclays were complicit in fraud and greenwashing JBS’s climate credentials.

Barclays’ dodgy deals threaten UK sustainable finance hub ambitions

The UK government wants to lead the world in sustainable finance, but its ambitions will be threatened if institutions like Barclays continue to do business with companies like JBS which is linked to illegal deforestation, insider trading and cattle laundering.

Bigger JBS emissions problem for Barclays

Emboldened by its listing on the New York Stock Exchange, JBS has plans to expand its meat operations at home in Brazil and in the US, the Middle East, Africa and Asia. This will grow its emissions exponentially, increasing the magnitude of JBS’s impact on people and planet, and further damaging Barclays’ reputation as JBS’s No.1 UK financier.

Originally published on Mighty Earth on October 28th.