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Our lawyers have written to the Secretary of State for Defra in view of launching legal proceedings for failing to take meaningful action to tackle food waste.
This follows the government’s announcement that it is scrapping plans to introduce mandatory food waste reporting, despite 99% of respondents to the government’s consultation supporting mandatory food waste reporting for large and medium food businesses, including the majority of food businesses. The legality of the consultation is being challenged on grounds that the government’s decision is not based on a reasonable or rational view of the evidence it received. The decision is also based on an inadequate impact assessment, ignores advice from the government’s own experts, the Climate Change Committee, and fails to take into account the emissions savings that would result from making food waste reporting mandatory.
An estimated 10.4 to 13 million tonnes of food are wasted in the UK annually, equivalent to approximately 26-33% of the UK’s 40 million tonnes of food imports per year. A study from the University of Bangor and Feedback found that halving UK food waste would save approximately 0.8 million hectares of cropland domestically and overseas[iii], which Feedback estimated could produce enough potatoes and peas to feed 28% of the UK population their yearly calories.
“The government’s decision to scrap its plans to introduce mandatory food waste reporting for large and medium businesses is perplexing at best, and potentially illegal at worst. Our lawyers’ letter to the Secretary of State sets out why she must reverse her decision, which flagrantly ignores her own evidence, the advice of her own experts and the preference of the vast majority of consultation respondents. Mandatory food waste reporting is a no-brainer, and the government can’t simply ditch it if it is to tackle the climate emergency.” Carina Millstone, Executive Director of Feedback
Responses to the consultation highlighted the importance of mandatory reporting as voluntary measures have failed. 70% of the companies that signed up to the Food Waste Reduction Roadmap were still not reporting data publicly in 2021. Furthermore, the need to measure farm level food waste was also highlighted; with a primary producer stating “There is a risk that if primary production food waste and surplus is not included in mandatory reporting that farmers will continue to suffer the costs of waste.” Yet the colossal amounts of waste at farm level continue to be ignored by Defra.
Food waste is a key climate change issue as it causes about 10% of global emissions. To meet climate change targets the government must take meaningful steps to reduce food waste. Earlier this year, Feedback won the right to challenge Defra’s National Food Strategy on the basis that it failed to take into account ministers’ duties to cut carbon emissions.
Olivia Blake MP for Sheffield, Hallam has this week tabled an Early Day Motion calling for the introduction of mandatory food waste reporting for medium and large businesses, for the whole supply chain. The EDM 1611 is signed by a cross-party range of MPs including Caroline Lucas.
The legal letter, which is supported by a coalition of social enterprises including Toast Ale, DASH water and Olio, argues that the government appears to have ignored expert advice, including from the Committee on Climate Change (CCC) and waste experts Waste and Resources Action Programme (WRAP). The CCC advised that mandatory reporting should be introduced by 2022.
Instead of mandatory reporting, the government is exploring the expansion of voluntary reporting run by WRAP until at least 2025. WRAP have themselves said that “mandatory food surplus and waste reporting are essential” because of the “disappointing” lack of voluntary reporting by businesses, and warned Defra in the government’s impact assessment that “enhanced voluntary reporting” would be “more expensive” than mandatory food waste reporting “with significantly less food waste being targeted”.
The letter argues that the government ignored vital evidence relating to the potential cost savings arising as a result of mandatory reporting. The government had defended scrapping the legislation citing costs to businesses of implementing the regulations potentially driving food inflation – but the government’s own impact assessment found that food waste currently costs the UK £19 billion, and any costs from measurement and reporting of food waste would be offset by only 0.25% reductions in food waste.. The impact assessment estimates that food waste measurement costs only an estimated £19 per tonne measured, compared to an average £1,189- £3,099 savings per tonne food waste reduced. The impact assessment found that “unnecessary food waste is inefficient, pushing up the price of food for consumers and businesses” and that reducing such waste “can help food businesses cut costs, which can be passed onto customers”.
Mandatory food waste reporting also had the support of the majority of businesses. 79% of retailers, 73% of the hospitality and 67% of primary producers responding to the consultation backed the introduction of mandatory food waste reporting . Tesco have said: “Publishing food waste data is vital and must be mandatory if the UK is to to halve food waste by 2030” and more recently said it remains “critical” . Reacting to news of the law being scrapped, Waitrose said they were “disappointed”, and Ocado also said they were supportive of mandatory reporting .
Emissions from industrial meat and dairy are heating up our planet. By 2030, the livestock sector will be burning through about half the amount we can safely emit to stay within 1.5 degrees of global heating. Similar to our historically outsized role in fossil fuel use, the Global North is eating more meat and dairy and emitting more greenhouse gases than its fair share. In 2020, high income countries had an average yearly meat consumption of 90.4 kg per person. The lowest income countries only consumed 11.9 kg of meat yearly per person. The impacts of climate disaster will be felt unevenly, with countries in the Global South– which eat far less industrial meat and dairy– bearing the brunt of collapse.
While the Amazon wildfires in 2022 put animal agriculture’s climate impact in the headlines, frontline communities, often BIPOC (Black, Indigenous ad People of Colour) and working class people in the Global North and South, are still harmed at almost every stage of the industrial meat and dairy supply chain.
“Today the Amazon is becoming a wood stove,” says Yoka Manchineri, an Indigenous nurse in the Brazilian state of Acre. The Amazon has been burning for some years now, and these fires are almost exclusively man made. What was once lush green vegetation, and home to Indigenous peoples and unparalleled biodiversity, is now trapped in a cycle of fire, beef, and greed– wiping out acres of ancient trees, and leaving Indigenous communities choking on the smoke.
Manchineri’s community in Acre has seen an increase in respiratory illnesses over the past couple of years, where the risk they face from the COVID-19 pandemic is compounded by their proximity to the Amazon fires. “Forest fires affect both our respiratory health as well as food safety,” she tells Mongbay News, “because we survive with nourishment from nature.”
First come the fires, and then the cattle are brought in. Meatpackers in Brazil and the USA often source their cattle from ranchers who require vast amounts of land to graze their cattle. In fact, the largest meat packer in the world, JBS, has admitted to sourcing cattle from illegally deforested land in the Amazon. Brazilian NGO Imazon estimates 90% of deforested Amazon land is occupied by cattle pastures.
Under former Brazilian President Jair Bolsonaro’s regime, land-grabbers and illegal ranchers were given free reign to sweep through the rainforest with little regard for the Indigenous peoples residing on their ancestral lands. Alongside risks to their health, illegal cattle ranching subjects Indigenous communities to the violence of displacement. Often, these communities fight back. The Mura Mura people of the Amazon take up bows and clubs and head into the jungle to defend their home against loggers. “We are sad because the forest is dying at every moment.” Handerch Wakana, a member of the tribe, tells Reuters, “We feel the climate is changing and the world needs the forest.”
What begins in the Amazon ends in the supermarket: an investigation by Mighty Earth showed that chicken and pork products sold in Tesco supermarkets in the UK were linked to deforestation in the Amazon and a recent Global Witness report also showed British supermarkets Morrisons, Sainsbury’s, Iceland and ASDA were stocking beef produced by JBS. While consumers in the Global North enjoy artificially cheap meat prices, it’s important to bear in mind that if the end consumer isn’t bearing the full cost of this product, other people and other ecosystems, often those in already vulnerable situations, likely are.
Andre Ngute, a meat packer working in a Tyson Foods plant in Iowa, sustained a deep gash on his right arm while working elbow to elbow on the factory floor. When the pain on his arm wouldn’t go away after a week, Tyson Foods refused to cover any medical costs beyond providing him with bandages as, per company policy, he hadn’t been working at the plant long enough to have earned coverage. “I never went to the hospital” Ngute writes, “because I was afraid of the bills.”
Health and safety negligence is an industry-wide issue. Last year, we learnt that some of the people cleaning JBS meat packing plants in the USA were children. Over one hundred children, aged 13 to 17 years old, were cleaning razor-sharp saw equipment, mopping up toxic waste and working overnight shifts. At least two of these children were known to have suffered “caustic chemical burns”. Although JBS has since ended its contract with that particular sanitation service, hazardous work conditions and labour law violations are not uncommon in meatpacking plants. The US Occupational Safety and Health Administration found that a worker in the meat and poultry industry lost a body part or was sent to hospital for in-patient treatment about every other day between 2015 and 2018 – higher injury rates than occur in sawmills, industrial building construction, and oil and gas well drilling.
Meatpackers were especially at risk during the COVID-19 pandemic, where working in closely packed, confined environments made them more likely to get sick. An estimated 86,000 meatpackers caught COVID-19 in the US, and 423 died from the virus in the first year of the pandemic. Tyson Foods failed to close plants where there was an outbreak of the disease and – according to ProPublica – it did not implement the recommended safety measures after the outbreaks began. In Shelby County, Texas, over half of the reported COVID infections were associated with Tyson’s meat plant employees, resulting in a rate of infection four times higher than the state average. Furthermore, a lawsuit for the wrongful death of a Tyson employee due to the disregard of COVID-19 safety measures also alleged that a plant manager organised a betting pool on how many employees would contract the disease.
In the UK, around 70% of workers in meatpacking facilities are migrants. Despite exposure to the same health and safety risks as their local counterparts, migrant workers are often paid less and trapped in exploitative contracts through subcontracting agencies.
The abundance of cheap meat in the supermarket is coming at the expense of these workers. With each price slash, meal deal and bulk buy, our retailers are telling these companies that their harmful business models are okay– and we are silently agreeing, as long as we have something affordable to slap over the barbecue come summertime.
In Eastern North Carolina, pigs outnumber the mostly BIPOC residents 35 to 1. Living next to the pig farms hasn’t been easy for these communities. “We had wells, but the wells [were] contaminated from the hog farm,” says Delores Miller, who lives by one of these farms. “The smell, you can’t hang your clothes out, you can’t do nothing in the yard, and we won’t even talk about the yellow flies.”
Animal waste from factory farms is stored in massive open-air pools, or sprayed onto the surrounding environment as “fertiliser”. The waste frequently seeps into the ground and surrounding bodies of water. The smell is often unbearable. Residents living close to these factory farms have reported higher levels of asthma; eye, nose and throat irritation; elevated blood pressure; and chest nausea– problems which get worse with the odour.
At home, factory farms in the UK are dumping manure and carcasses into waterways, and emitting noxious fumes into the air. For Nathan Jubb, an angler living by the river Wye in the UK, the once crystal-clear waters look gravely unwell. “This river looks so ill,” he tells the BBC “and I’m getting ill thinking about it, I really am.” The waste from the intensive chicken farming near the river Wye catchment has been seeping into the water, creating a “wildlife death trap” and posing risks for local residents who used to swim and fish in the waters.
While these hazards are rarely felt from the cool embrace of the Tesco aisles in large cities, rural communities are grappling with the true costs of our country’s appetite for factory farmed meat.
The environmental and social cost of producing and consuming factory farmed meat at this scale is immense, and is borne unequally by already vulnerable communities. The evidence is clear: high income countries must reduce their meat consumption, if we are to have any real hope of achieving climate justice. That is – reaching our climate goals, while accounting for and redressing the disparate harms related to climate disaster faced by communities around the world. This responsibility to act cannot rest on the consumer alone, however. In the midst of a global cost of living crisis spurred on by corporate greed, governments and retailers need to recognize the role they play in shaping demand for industrial meat and dairy. By using their power to radically restructure the current landscape, they can ensure that eating a variety of nutritious, healthy and culturally appropriate food –outside of industrial meat and dairy offerings– is an accessible option for all.
Our new report has revealed that greenwashing – a form of advertising or marketing spin in which green PR and green marketing are deceptively used to persuade the public that an organisation’s products, aims and policies are environmentally friendly – is rife across the UK supermarket sector with ALL the major retailers found to be promoting minor green initiatives while avoiding taking significant action on the climate impact of the industrial meat and dairy they sell. Around a third of retailers’ emissions result from sales of industrial meat, dairy and other animal source foods.
Despite UK supermarkets being quick to adopt climate-friendly marketing with ‘green’ packaging, climate targets and advertising campaigns, not one single UK supermarket chain has yet adopted a target to reduce sales of industrial meat and dairy – the single biggest slice of supermarkets’ emissions.
The findings are based on Feedback’s latest Meat and Climate scorecard which assesses supermarkets’ climate claims and in-store practices using twelve indicators, in accordance with academic research into common greenwashing strategies. Tactics include ‘selective disclosure’ where companies disclose on some elements of their climate or environmental impact while avoiding talking about more harmful issues and or using distraction techniques – i.e. shining a spotlight on specific, often ultimately less effective, environmental initiatives.
Key findings reveal:
“It’s astonishing that greenwashing is rife across the industry with all the UK’s largest supermarkets employing ‘distraction’ type green initiatives, which make little impact on their overall footprint yet serve to deflect attention from the real issues. It’s clear from our findings that retailers are still focused on boosting meat sales despite setting net zero targets and pledging to help us eat healthier and more sustainably – and this must now change.” Jessica Sinclair Taylor, Head of Policy at Feedback
With a whopping 95% of retailers’ emissions coming from the products they sell and a third or more of these directly linked to some of their most polluting products, meat and dairy sales – we are calling for:
Sign our petition to supermarkets now.
Following the Advertising Standards Authority’s new guidance for companies on greenwashing, which includes advice that environmental claims made without context on the company’s wider environmental impact could be classed as greenwash PLUS the Competition and Market’s Authority Green Claims Code which states that claims must not mislead consumers by giving them an inaccurate impression of how green or sustainable a business really is. Aldi’s ‘carbon neutral’ claim has been reported to the ASA and we are also pursuing a complaint regarding Tesco’s ‘Greener Greens’ electric delivery vans with Trading Standards.
In addition, Feedback has written to the Competition and Markets Authority with evidence of all the supermarkets’ failure to substantiate environmental claims with real plans to reduce emissions from their supply chain.
Industrial meat and dairy production contribute to climate change through direct emissions from both animals and their waste and through the destruction of important ecosystems such as the Amazon Cerrado to raise cattle or grow soya for animal feed. The UK imports most of its soya from South America, at least 90% of which is fed to animals, particularly chicken and pork.
The Government’s Committee on Climate Change has said the UK need to cut meat and dairy consumption by 20% by 2030 to meet its climate commitments while the University of Oxford estimates consumption of meats such as beef should be cut by as much as 89% to meet the NHS Eatwell guidelines. We have recently won the right in the Court of Appeal to bring a legal challenge against the government’s current food strategy, on the grounds that it fails to act on the damaging environmental impact of excessive meat and dairy production and consumption.
Read the full report. You can view how we scored the supermarkets here.
We have this week launched a legal challenge against the UK government over inadequate assessment of the environmental impacts of the UK-Australia Free Trade Agreement. The free trade deal gives Australian producers significant access to the UK market to sell beef, lamb and mutton and dairy, potentially undercutting UK producers with agrifoods produced to lower standards.
The key argument is that the Impact Assessment erred in concluding that it was not possible to assess the impact of carbon leakage because data on relative carbon emissions associated with cattle meat was too “variable”. Renowned experts from the Institute of Environmental Science at Leiden University and New York University outline that there is consistent data demonstrating that Australian cattle meat has a materially higher emissions intensity than UK meat. As these same experts demonstrate, a consistent application of the gold standard methodology available would have shown considerable difference in the climate impacts of livestock produced in the United Kingdom and in Australia.
The fundamental issue in the claim is whether the government acted lawfully in deciding not to assess the relative carbon intensities of beef produced in the UK and Australia, for the stated reason that the available evidence was inconclusive and too variable. Experts argue that available statistical evidence on agricultural emissions is categorically not inconclusive and that, in fact, contrary to what the impact assessment concluded, it consistently shows that the emissions intensity from Australian beef is substantially higher than that from the UK.
Globally, agricultural emissions alone are enough to breach 1.5 and even 2 degrees of warming this century. This is in line with evidence from the government’s former advisor on food, Henry Dimbleby, who found that Australian beef had greater emissions intensity and a considerably larger deforestation footprint than beef produced in the UK. The UK government is bound by various legal and international obligations to take climate change, biodiversity and emissions reduction into account when setting trade policies, including the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement of 2015.
“With its flimsy environmental impact assessment of the UK-Australia trade deal, the government has blithely thrown both British farmers and the Paris Agreement under the bus in its futile bid for positive post-Brexit headlines. At a time of crisis in food and farming, and with global temperature highs broken daily, the government must ensure all trade deals work towards our emissions reduction targets rather than towards further catastrophic heating.” Carina Millstone, Executive Director Foodrise
The impact assessment also fails to quantify the carbon impact of any changes to domestic UK meat and dairy consumption because of tariff-free imports of Australian food. Cheaper Australian goods were touted as one of the key benefits of the agreement for the UK. Australia’s biggest cattle farmer suggested that the trade deal could result in Australian beef exports to the UK rising tenfold. The greater availability of cheap meat on UK supermarket shelves and in the food service industry will increase consumption, undermining recommendations from both the independent review of the National Food Strategy, commissioned by the government in 2019, and the Climate Change Committee (CCC), that substantial reductions in meat and dairy are essential to tackle climate change.
The legal challenge will test whether the government has adequately assessed the impact of this trade agreement. This has important implications for future trade deals.
In an important attempt to safeguard its rights to access environmental justice, Foodrise is also defending claims made by the government that it should not benefit from costs protection rules under the Aarhus Convention. Remarkably, the government is arguing that the judicial review does not relate to the environment, despite the existential threat of climate change. Foodrise is strongly resisting these arguments, which (if successful) may well set a valuable precedent for other environmental NGOs bringing legal challenges against trade deals.
On June 16, the Court of Appeal upheld our claim that the government’s failure to adopt measures to reduce meat and dairy production and consumption in its Food Strategy published in June 2022 was arguably unlawful. A full judicial review hearing will take place in the Court of Appeal in autumn to rule on the legality of the government’s Food Strategy.
Senior president of tribunals, Lord Justice Keith Lindblom, stated this would allow the arguments to be fully debated in a longer hearing. “The issue of climate change itself and the steps to be taken to achieve net zero are in themselves matters of public interest,” he concluded.
The livestock industry is responsible for about 14.5% of global emissions and, if current trends continue, the global livestock industry will be using up almost half the world’s 1.5°C emissions budget by 2030. This means tackling emissions from the food and farming sector is key for the government to meet climate targets.
The Net Zero Strategy published in 2021 expressly stated that the Food Strategy would support the delivery of the Net Zero target, outlining how carbon budgets would be met in the food system.
However, Leigh Day representing us argued that the Food Strategy neither addressed the emissions impact of meat and dairy, nor put in place policies for their mitigation. The full hearing in October will determine if this omission was unlawful. Central to the argument will be whether the Secretary of State relied on the Food Strategy to discharge his duty under Section 13 of the Climate Change Act, which compels him to put in place policies to ensure carbon budgets are met.
Both the independent review of the National Food Strategy written by Henry Dimbleby and commissioned by the government in 2019 and the Climate Change Committee (CCC) have identified substantial reductions in meat and dairy as essential to tackle climate change. In 2020, it recommended a 20% reduction in meat and dairy consumption by 2030, and a 35% reduction for meat by 2050, as part of its Balanced Net Zero Pathway scenario.
David Wolfe KC argued for Feedback that the government’s failure to incorporate this advice, in particular the CCC’s recommendations, or explain why it opted to not adopt their expert recommendations was unlawful. This will be decided at the full hearing in October.
“We have long known the government’s food strategy was completely useless, today’s ruling suggests it may also be unlawful. The Climate Change Committee has repeatedly sounded the alarm over the climate impacts of livestock and recommended an accelerated shift away from unsustainable diets. We’re confident that the ruling in October will compel the government to re-write the Food Strategy and start listening to its own expert climate advisors.” Carina Millstone, Executive Director of Feedback
The hearing will take place on June 16 in Court Room 71 at 10:30am. Court room 71 is in the Royal Courts of Justice, Strand, London, WC2A 2LL. As a high-profile and legally significant case, the hearing will be livestreamed here.
Our lawyers will argue in the Court of Appeal that the government’s failure to adopt measures to reduce meat and dairy production and consumption in its Food Strategy published in June 2022 was unlawful.
Livestock is responsible for about 14.5% of global emissions and, if current trends continue, the global livestock industry will be using up almost half the world’s 1.5°C emissions budget by 2030. This means tackling emissions from the food and farming sector is key for the government to meet climate targets. The Net Zero Strategy expressly stated that the Food Strategy would outline how carbon budgets would be met regarding the food system. However, the Food Strategy does not include policies for meat and dairy reduction, essentially the Food Strategy does not provide a mechanism to fulfill its obligations under Section 13 of the Climate Change Act (CCC).
Both the independent review of the National Food Strategy written by Henry Dimbleby and commissioned by the government in 2019 and the CCC have identified substantial reductions in meat and dairy as essential to tackle climate change. The government failed to incorporate this advice, in particular the CCC’s recommendations, or explain why it opted to not adopt their expert recommendations, which the lawyers representing Feedback will further argue that they were bound to do.
In previous legal proceedings the government’s lawyers have sought to argue that the Department for Environment, Food & Rural Affairs (DEFRA), the government department that drafted the Food Strategy, is not bound by Section 13 of the Climate Change Act. Instead, only the Department for Energy Security and Net Zero (DESNZ), formerly the Department for Business, Energy and Industrial Strategy (BEIS) is bound by the Section 13 obligations, as the government department tasked with achieving carbon budgets.
In reaching its decision, the Court of Appeal in this case will effectively rule on the scope of Section 13 of the Climate Change Act. The ruling will establish whether it is only the Secretary of State for DESNZ that must formulate policies to meet carbon budgets for his department, or whether other Secretaries of State and their respective departments are bound by the same obligation.
This ruling is therefore expected to have significant implications on the government’s climate policy. It will establish whether DEFRA must develop policies to meet carbon budgets, considering the CCC’s advice in doing so, in this instance in the Food Strategy. It will also establish whether other government departments, such as the Department for Transport (DfT), must equally put in place their own policies to reduce emissions to meet carbon budgets.
We’ve launched a formal legal challenge against the UK government over inadequate assessment of the environmental impacts of the UK-Australia Free Trade Agreement. The deal gives Australian producers significant access to the UK market to sell beef, lamb and mutton and dairy. Represented by law firm Leigh Day, we previously sent a legal letter to Environment Secretary Therese Coffey. The response received was unsatisfactory, and so Leigh Day filed a claim form at the Administrative Court, signalling the start of the process for judicial review of the impact assessment of the deal.
The government suggested data uncertainties made drawing conclusions on the emissions impact of the trade deal difficult, choosing not to apply an internationally recognised methodology to ascertain livestock emissions – the ‘gold standard’ methodology according to experts from the Institute of Environmental Science at Leiden University. As these same experts demonstrate, a consistent application of that methodology would have shown considerable difference in the climate impacts of livestock produced in the UK and Australia.
Experts clearly state that the impact of the Free Trade Agreement on overall emissions will have a material impact on international climate targets. Globally agricultural emissions alone are enough to breach 1.5 and even 2 degrees of warming this century. This is in line with evidence from the government’s former advisor on food, Henry Dimbleby, who found that Australian beef had greater emissions intensity and a considerably larger deforestation footprint than beef produced in the UK. The UK government is bound by various legal and international obligations to take climate change, biodiversity and emissions reduction into account when setting policies.
“The government has recklessly sacrificed both British farmers and the climate in a rush for post-Brexit headlines. At a time of crisis in food and farming, the government must ensure all trade deals work towards our emissions reduction targets rather than towards further catastrophic heating.” Carina Millstone, Executive Director of Foodrise
The impact assessment also fails to quantify the carbon impact of any changes to domestic UK meat and dairy consumption. Cheaper Australian goods were touted as one of the key benefits of the agreement for the UK. Australia’s biggest cattle farmer suggested that the trade deal could result in Australian beef exports to the UK rising tenfold. The greater availability of cheap meat on UK supermarket shelves and in the food service industry will increase consumption , undermining recommendations from both the independent review of the National Food Strategy, commissioned by the government in 2019, and the Climate Change Committee (CCC), that substantial reductions in meat and dairy are essential to tackle climate change. The legal challenge will test whether the government has adequately assessed the impact of this trade agreement and in doing so risks the UK’s capacity to deliver on Net Zero targets. This has important implications for future trade deals.
“The meat industry is one of the largest contributors to the climate crisis by sector, and one of the biggest winners from this Free Trade Agreement. Our client’s scientific evidence shows that Australian beef is far more damaging for the climate than UK beef, yet tens of thousands of tonnes of it will be imported tariff free as a result of this deal. The legislation implementing the new tariff rules was, our client will argue, based on an impact assessment, which completely ignored that science. It is argued that this irrationality renders the statutory instrument unlawful, and our client is asking the Court to quash it.” Leigh Day solicitor Rowan Smith
A couple of weeks ago, Foodrise travelled to Birmingham to put a question to HSBC’s board of directors at the bank’s annual general meeting (AGM). We wanted to find out why the bank persists in financing industrial livestock companies despite their outsized contribution to climate change, deforestation and human rights violations.
We found our seats in a large conference hall, where the board of directors sat looking back at us from behind their podiums on the stage. No doubt in a bid to avoid the chaos that ensued following protests in previous years, HSBC’s strategy for managing dissent in 2023 seemed to be to suck all of the energy out of the room. Despite person after person standing up to protest the bank’s financing of climate destruction, each director remained unmoved. Towards the beginning, a group of middle-aged professional types sitting in front of us suddenly got up and burst into song. Unfurling long, hand sewn banners from underneath their dress shirts, they accused HSBC of being arsonists and liars, and criticised them for all of the money they continue to sink into fossil fuels. After the singers were carted out by security, another couple jumped into action, donning head-to-toe cleaning outfits and scrubbing the “filthy” meeting down– did somebody say greenwash? Finally, after a series of speeches by directors, it was time for the Q&A section. This was dominated by concerned shareholders, NGOs, and activists further pressing HSBC to stop bankrolling the climate crisis. Our names were read, one by one, by a booming-big brother voice that appeared to emanate from the heavens. Perhaps it was AI, perhaps it was God. Either way, it succeeded in both making me feel small and watched. I proceeded with my question.
I reminded Noel Quinn, HSBC’s Group Chief Executive that his bank has pledged to reduce the carbon emissions it finances to Net Zero by 2050 or sooner, and to not support businesses directly involved in deforestation. I wanted to know why HSBC is investing in companies whose actions stand in direct contradiction with these commitments.
HSBC’s supposed commitment to Net Zero doesn’t add up, not only because it persists in financing fossil fuel companies, but also due to its funding of the industrial livestock industry, which is a massive global emitter. If growth trends continue, animal agriculture will be using up almost half the world’s 1.5°C emissions budget by 2030– making staying within safe levels of climate change virtually impossible.
One of the companies HSBC provides finance to is Brazilian beef giant JBS, the world’s largest meat producer. In 2021, JBS’ emission footprint alone was larger than the entire country of Spain’s. JBS’ supply chain has been repeatedly accused of links to illegal deforestation. HSBC has been well aware of this for some time. The bank’s own analysts warned in 2020 that JBS: “has no vision, action plan, timeline, technology or solution” for monitoring whether the cattle it buys originate from farms involved in rainforest destruction. Additionally, JBS has also faced multiple allegations of Indigenous land theft and modern day slavery in its supply chains. Despite that, our research has uncovered that HSBC was still holding $3.5 million in JBS shares as of the end of last year.
However, when I asked Noel Quinn why HSBC continues to finance one of the world’s highest-emitting companies, in which it holds millions of dollars’ worth of shares, he simply shrugged, and claimed that he is not familiar with JBS.
Seriously?
I pushed back on his response. Surely, after the extensive media coverage of JBS and its connection with the destruction of the Amazon, which experienced record breaking wildfires in 2022, simply ‘not knowing’ is no longer good enough. Quinn would’ve certainly heard about JBS from his own analysts. My mic was shut off and we were soon on to the next question, but the bank’s skirting of responsibility was clear. Be it indifference or true ignorance at the helm of HSBC, the response its CEO gave me in Birmingham is unacceptable. Not knowing is a privilege that those most impacted by climate change do not have.
We all have to live with the consequences of this bank financing climate chaos, and it’s time HSBC took that responsibility seriously. Other financial institutions have already cut off financial support for JBS, deeming the company too risky: for example, in 2020, Nordea Asset Management pulled out $45 million from the company– over 12 times HSBC’s investments. If Nordea can do it, why can’t HSBC?
It’s clear that HSBC needs to stop funding climate destruction, including its financing for livestock companies like JBS as well as its funding of fossil fuels. The Board of Directors spent a decent amount of time in the AGM paying lip service to various climate positive commitments, but ultimately that rhetoric is worthless without concrete targets for change– especially if we can’t even get a simple, truthful, recognition of their relationships with the companies destroying our planet.
Watch this space for Foodrise’s upcoming research on UK banks’ funding for industrial livestock. In the meantime, check out our 2020 report Butchering the Planet.