How we can protect the supply chain and your brand against unsubstantiated environmental claims

In yet another new case that has captured the attention of the food supply chain, New York's Attorney General, Letitia James, has initiated legal action against JBS, the world’s largest beef processor.  

This lawsuit, as reported by The New York Times, Financial Times, and The Guardian, accuses JBS of making misleading environmental claims, demonstrating a growing intolerance for unsubstantiated sustainability efforts.  

It emphasises the serious consequences for businesses and the supply chain when environmental pledges lack solid evidence, serving as a loud warning to those without robust and credible environmental assessments and plans, and highlighting the damage to the much-needed trust for an already stretched supply chain.  

Substantiating environmental claims 

Accuracy and substantiation are paramount 

This case, like others before it, brings to the forefront the absolute necessity for businesses to ensure their environmental commitments are genuine and backed by rigour and credible action plans. 

JBS's reported misleading claims about reducing greenhouse gases highlight a broader issue of greenwashing, where companies portray themselves as more environmentally friendly than they are.  

It's a stark reminder of the need for rigour and honesty in all sustainability claims.  

Legal and reputational risks of greenwashing 

The lawsuit against JBS doesn’t just pose potential legal repercussions, it also flags the reputational damage companies and their investors risk when their sustainability claims don’t hold water.  

Being held accountable under laws designed to prevent deceptive practices or half-measures sends out a strong message that sustainability strategies aren’t just tick box exercises, they must evidence based, rigorous and verified.  

It also amplifies the call for genuine corporate responsibility, not gimmickry, and the maintenance of consumer trust.  

It’s vital that businesses not only make sustainability pledges but also follow through with credible actions and progress reporting by trustworthy and up to date methods. 

Avoiding greenwashing claims 

How Sandy can keep businesses compliant with the Green Claims Code 

We are fortunate that the UK has a robust regulatory framework, aimed at preventing greenwashing and false claims. This framework will be taking a more prominent role in advancing trust and real progress and rewards for our supply chain.  

The enforcement actions of the Competition and Markets Authority (CMA) Green Claims Code, ensures businesses adhere to high standards of honesty and transparency regarding environmental claims. 

A key point within the Green Claims Code states that green claims must be substantiated: ‘Businesses should be able to back up their claims with robust, credible and up to date evidence.’ 

First-generation carbon calculators which follow outdated or no standards at all, put many businesses and consultants at risk of not meeting current regulations. As a result, many of these groups are moving away from using these tools to make positive changes that will finally benefit themselves, the industry and society. 

Defra’s report ‘Harmonisation of carbon accounting tools for agriculture’ offers clear guidance to the food supply chain on the standards software should align with. The recommendation is to adopt tools compliant with ISO standards 14064:2 and 14067 and the draft GHG Protocol Land Sector and Removals guidance, which are supportive of the Science Based Targets initiative (SBTi) ISO standards and the GHG Protocol. 

By following the recommendation set out in Defra’s report, the food supply chain can be confident that their data is credible and calculated using the most up to date methodology, helping to protect brands from making unsubstantiated environmental claims. 

From our perspective, as a firm on a mission to support a fair, efficient and virtuous transition of food and farming through this Natural Capital Century, we know from Defra’s Report that our platform, Sandy, is a unique carbon and overall natural capital assessment and navigation software that aligns with and exceeds these standards. This makes it a unique, credible option for stakeholders across the food and farming supply chain. 

We are also pleased that Sandy goes well beyond measurement, and also guides, with its scenario planning functionality, supporting actionable plans and a clear path to Net Zero.  

You may also be interested to read this blog which explains how Sandy is revolutionising carbon assessment in agriculture. 

Verifiable actions will be rewarded 

The lawsuit against JBS serves as another reminder for all businesses; the era of making lofty environmental claims, haphazard methods and endeavours without the credible evidence to back them up is over.  

This is a positive step forward, not least because the business of advancing farmers’ economic security and the establishment of resilient supply chains and prosperous rural communities is a serious undertaking. Trust and rigour are essential foundations for security and prosperity. 

If you’d like to know more about the Green Claims Code or how Sandy can serve you in a practical, scalable and credible way, get in touch.