Tyson Foods is misleading shoppers and investors over its ability to reach “net-zero” carbon emissions by 2050 as well take other steps aimed at protecting the environment. 

Tyson, the world’s second-biggest meat processor, should have to curtail its climate claims or release a substantial plan to support its claims, according to a lawsuit filed on Wednesday by the Environmental Working Group. The complaint is part of an effort to “hold the biggest, most powerful contributors to the climate crisis — across industries — accountable for greenwashing,” EWG stated.

Tyson Foods has said since 2021 that it would hit net-zero emissions — the point at which the amount of greenhouse gases a company emits is offset by the emissions that are removed from the atmosphere — by 2050 by using more renewable energy and no longer contributing to deforestation. 

The Arkansas-based meat company also sells a brand of “climate-friendly” beef that Tyson says is made with 10% fewer emissions than conventional meat.

A spokesperson said Tyson does not comment on litigation, but defended the company’s “long history of sustainable practices.”

The suit against Tyson was filed in Washington, D.C., which has a consumer protection law in place that lets consumer groups sue companies for false advertising. 

The same claim of greenwashing — a term attributed to environmentalist Jay Westerveld that refers to making false or misleading statements about the environmental benefits of a product or service — was made in February in a suit filed by New York State Attorney General Letitia James against JBS, the world’s largest beef producer, over its claim it would reach net-zero emissions by 2040. 

James’ suit against the Brazilian meat conglomerate came after Earthjustice successfully challenged JBS’ environmental messaging before an ad industry self-regulatory organization in 2023. 

Livestock production accounts for 14.5% of all greenhouse gas emissions globally, with cattle responsible for two-thirds of the total, according to the United Nations Food and Agriculture Organization. 

The Science-Based Targets Initiative, a UN-backed agency that reviews net-zero goals, is calling for the food and agricultural sector to reduce its emissions by 3% annually between 2020 and 2030.

Delta Air Lines last year dismissed as “without legal merit” a suit filed by a passenger that alleged the airline’s claim to be “the world’s first carbon-neutral airline” to be marketing spin. Coca-Cola is currently defending itself in a similar case in which the beverage make is accused of overstating its recycling efforts. 

A cooler rate climate benefits a wide range of borrowers. From prospective homebuyers to current owners looking to refinance to those saddled with high rates on personal loans and credit cards, lower rates offer a welcome economic reprieve. They also require a different approach than what many have been accustomed to in recent years. And with the Federal Reserve officially cutting its federal funds rate for the first time in four years on Wednesday, now could be that time.

For those considering borrowing from their home equity, there are multiple options available. But a home equity line of credit (HELOC) is arguably the best and most cost-effective way to do so right now, particularly compared to home equity loans and cash-out refinancing. Below, we’ll detail why you should strongly consider borrowing with a HELOC as the Fed begins to cut interest rates.

Start by seeing how low of a HELOC rate you could secure here.

Why you should open a HELOC as the Fed cuts rates

A HELOC, for much of the last two years, has arguably been a less beneficial way to borrow from your home equity than a home equity loan. That’s because the latter comes with a fixed rate that will only change if refinanced. And that was a major advantage in a climate in which rates were raised numerous times between 2022 and 2023.

But that environment looks to be changing now.

With the first rate cut since 2020 issued this week, and two additional ones likely for November and December (when the Fed meets again), a HELOC could take the preferential place of home equity loans. 

That’s because HELOC rates are variable and subject to change as the rate climate does (usually every month). That’s a drawback when rates are high and rising but now becomes a distinct advantage as rates cool again. With a HELOC, borrowers will automatically see their rate fall without having to refinance on their own. 

Not only will they then save with a lower rate, but they’ll also save out-of-pocket costs if they had pursued a home equity loan. That’s because home equity loans come with closing costs to refinance (1% to 5% of the loan’s value, on average). But if you pursue a HELOC, you can add those savings to what you’ve already got back with the rate drops.

It’s not a perfect trade-off, and right now, home equity loans have better rates than HELOCs (8.46% versus 9.26%). But if you’re looking to position yourself for maximum savings ahead of additional rate cuts, a HELOC may be best to open now.

Get started with a HELOC today.

Don’t forget the tax benefits

A HELOC, in addition to the variable rate nature that benefits borrowers right now, also comes with tax advantages. Specifically, you can deduct the interest paid on the line of credit if you use it for eligible home repairs and renovations. At the same time, home equity loans also come with the same tax benefit. So carefully consider your intended use before getting started and don’t make this the deciding factor considering both options offer the same tax feature. 

The bottom line

A HELOC could soon become the preferential home equity borrowing option, if it isn’t already. With a variable interest rate that is set to decline as overall rates do, borrowers could be well-positioned to realize additional savings in the future without having to do any of the work (or pay for any of the costs) associated with refinancing a home equity loan. But both borrowing options do have tax benefits, and other unique features, so weigh them carefully against one another to better determine which one is the right fit for you now.