Brazil's environment agency, Ibama, notified 12 meatpacking plants, including two operated by JBS SA, on August 29, 2025, for alleged involvement in a scheme to buy cattle from illegally cleared land in the Amazon rainforest. This notification signals a formal investigation into the companies' sourcing practices.
The probe focuses on the alleged acquisition of cattle linked to deforestation, a critical environmental concern in Brazil. Such allegations can lead to significant regulatory penalties, including fines and potential restrictions on operations or exports, impacting the company's supply chain.
This investigation also carries substantial reputational risks for JBS, as it directly challenges the company's sustainability commitments and responsible sourcing policies. The outcome of this probe could influence consumer perception and investor confidence regarding JBS's environmental governance.
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