The issuance comes against a backdrop of sustained ESG concerns. JBS faces ongoing litigation over its climate pledges, persistent governance and corruption allegations, and scrutiny over deforestation links in its supply chain. Our analysis estimates that nearly 3% of JBS bonds sit within ESG funds. These holdings could come under pressure as these controversies intensify.
In addition, as investors focus more closely on methane abatement, agriculture companies like JBS could come under the microscope, adding to bondholders’ potential troubles.
