The Science Based Targets iniative Corporate Net Zero Standard Version 2.0 for Food & Beverage Climate Leaders
How do the changes in SBTi CNZS v2 impact businesses working toward food, beverage, and agriculture climate goals?
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The newly updated SBTi Corporate New Zero Standard Version 2 introduces key updates for food and beverage companies working to decarbonize complex value chains.
- Clearer Action Pathways: SBTi CNZS v2 outlines explicit levers for addressing high-emissions agricultural hotspots through absolute, intensity, and supplier-engagement targets.
- Traceability Workarounds: Introduces “activity pools,” enabling companies to claim verified regional mitigation without requiring farm-level lot tracking.
- Investment Confidence: Eliminates regulatory ambiguity, empowering climate teams to confidently fund supply chain programs like 3Degrees’ Supply Chain Reductions (SCRs).
Read on to learn more about the opportunities availabe to food and beverage climate leaders in light of these changes.
Food and beverage companies sit at the center of some of the world’s most emissions-intensive supply chains. Complex value chains that encompass agricultural inputs, land use change, livestock, fertilizers, and processing all contribute to scope 3 footprints that often account for 80-90% of a company’s total emissions footprint. For years, businesses have been working diligently to address their scope 3 emissions, but progress has been stymied by the absence of clear, operational guidance on how to turn ambitious net zero commitments into credible, scalable action in those supply chains.
With earlier iterations of the Science Based Targets initiative Corporate Net-Zero Standard (SBTi CNZS) guidance, many climate teams were left in a kind of holding pattern: they understood the need to address value chain emissions, but didn’t know which interventions would remain accountable over time. Facing this uncertainty, corporate climate teams found it difficult to commit necessary capital to upstream interventions, build internal alignment around novel solutions, or provide suppliers with the confidence needed to make operational changes. Uncertainty in guidance is partly responsible for the growing gaps in action between scope 1 & 2, and scope 3 emissions. Of the U.S. food and beverage companies reporting progress on their SBTi climate goals, only 44% have shown meaningful progress in reducing their scope 3 emissions as of 2024, according to research from 3Degrees.
The updated guidance from the SBTi gives organizations a starting point. It clarifies where to focus, how different levers can be combined, and when businesses can credibly claim progress—even when traceability is imperfect.
To move from ambition to impact, food and beverage leaders must understand the three key features of SBTi CNZS v2 that offer clearer pathways for climate action.
Three Insights for Food & Beverage Leaders from SBTi CNZS v2
As food and beverage companies work to meet ambitious climate targets, turning Scope 3 commitments into actionable supply chain reductions has long been stymied by a lack of operational clarity and strict traceability requirements. The updated Science Based Targets initiative Corporate Net-Zero Standard (SBTi CNZS v2) changes this dynamic by providing a clear, durable framework that moves climate teams out of holding patterns. Here are three key insights from the updated guidance that give food and beverage leaders the confidence to accelerate value chain decarbonization today:
One of the biggest challenges for food & beverage climate teams has been knowing exactly how supply chain interventions contribute toward net zero goals. Earlier guidance pointed to broad coverage of scope 3, but didn’t always spell out how different types of action would be treated as standards developed.
The new CNZS v2 provides guidance on the major sources that must be covered in targets and transition plans, including upstream agricultural ingredients like milk, meat, grains, and oils, land‑use impacts, fertilizer use, and energy‑intensive processing. The guidance gives climate teams more explicit expectations when approaching specific emissions-intensive hotspots within their value chains.
Just as importantly, the standard clarifies how businesses can demonstrate progress. For scope 3, companies can combine three core approaches: reducing total emissions in key categories, lowering the emissions intensity per unit of a product, and increasing the share of procurement spend with suppliers that have science‑based or net‑zero‑aligned targets. This mix of approaches fits the reality of food & beverage organizations, as volumes and portfolios are constantly shifting, better practices and lower‑emissions inputs from suppliers can still drive a net‑zero‑aligned trajectory
Traceability is one of the biggest practical blockers for climate action in food & beverage. Ingredients can be aggregated from thousands of farms, flow through multiple supplier tiers, and often lack consistent, source‑level data. If every sustainable intervention had to be tied directly to a specific farm and product lot, many companies would be stuck waiting instead of acting.
To address traceability issues, CNZS v2 introduces clearer guidance on how companies can claim supply chain mitigation, without full farm‑level traceability. In particular, it recognizes the role of “activity pools,” or defined groups of emissions sources. Organizations can implement interventions and measure impact at this pooled level, encompassing a certain region or definable boundary, rather than tracking each individual farm.
That means businesses can support programs like improved manure management, low‑emissions feed, regenerative soil practices, or fertilizer optimization within a region or supplier cluster, and still translate those outcomes into progress against supply chain emissions.
SBTi CNZS v2 directly addresses many of the open questions that have been holding food & beverage sustainability teams back, particularly around scope 3 and supply chain decarbonization.
Previously, teams were wrestling with uncertainties like: Which parts of the agricultural and land‑use footprint are expected to be in scope? How will upstream interventions be treated over time? Can we invest in supply chain programs now and be confident they will still count as guidance evolves? With answers to those questions unknown, it was difficult to unlock budget, align internal stakeholders, and ask suppliers to make meaningful changes.
The updated standard provides answers. It offers a more structured, accountability‑focused framework that makes the link between near‑term action and long‑term net zero alignment clearer. The standard lays out expectations for how scope 3, land‑related emissions, and supplier engagement should show up in targets and transition plans over time, reducing the risk that today’s supply chain strategy will be out of step with tomorrow’s best practice.
Just as importantly, CNZS v2 gives companies a better sense of how to judge progress. It spells out the accepted levers for showing reductions, and provides concrete pathways for claiming supply chain mitigation even with imperfect data and traceability. Climate leaders can invest in upstream emissions reductions, supplier programs, and mechanisms like SCRs knowing they are aligned with the Standard.
Supply Chain Reductions (SCRs) offer proven value chain decarbonization
With SBTi’s CNZS v2, those in the food & beverage sector have a clearer, more durable framework for turning supply chain ambition into measurable scope 3 progress.
Supply Chain Reductions (SCRs) from 3Degrees empower suppliers to deliver products with reduced emissions intensity—such as lower‑emissions milk, corn, or beef—and give buying organizations verified, defensible reductions associated with the goods they purchase.
With SBTi CNZS v2, SCRs move from a novel solution to a mainstream lever for addressing Scope 3 emissions.
Now is the time to consider where SCRs fit within your climate strategy. To understand what SBTi CNZS v2 means for your targets—and how SCRs from 3Degrees can support your trajectory—get in touch with our team to explore options tailored for your value chains.
Learn how to implement SCRs into your value chain decarbonization strategy today.
At 3Degrees, our industry-leading team of value chain decarbonization experts are ready to help you build a scalable, high-impact portfolio. Reach out today, and learn how you can turn climate ambition into climate action.
Frequently asked questions about Supply Chain Reductions and SBTi CNZS v2
Want to know more about SCRs and SBTi CNZS v2? Take a look at the answers to these frequently asked questions:
How do 3Degrees' Supply Chain Reductions (SCRs) align with the updated SBTi CNZS v2 guidance?
The updated SBTi Corporate Net-Zero Standard (CNZS v2) provides explicit pathways for companies to address high-emissions agricultural hotspots and report Scope 3 progress. 3Degrees’ SCRs align directly with these updated frameworks by enabling organizations to fund targeted, verified emissions reduction projects—such as manure management, enteric fermentation, and fertilizer optimization—within their supply chain. SCRs allow buying organizations to claim defensible, high-integrity reductions associated with the agricultural goods they procure, moving supply chain decarbonization from a theoretical target to a compliant, real-world execution strategy.
How do "activity pools" in SBTi CNZS v2 make implementing SCRs easier without full farm-level traceability?
Lack of full farm-level traceability has historically blocked Scope 3 progress because ingredients are often aggregated across thousands of farms. SBTi CNZS v2 addresses this by recognizing “activity pools”—defined regional or supply shed boundaries—allowing companies to measure and claim mitigation at a collective level rather than tracking individual product lots back to a single farm. This means organizations can deploy SCR projects across a specific farming region or supplier cluster, verify the physical emissions reductions achieved within that pool, and confidently report those reductions toward their Scope 3 targets.
Can our organization invest in SCRs now and be confident they will remain compliant as standards evolve?
Yes. One of the primary benefits of SBTi CNZS v2 is that it eliminates regulatory ambiguity, giving corporate climate teams the confidence needed to unlock budget and take immediate action. Because 3Degrees’ SCR framework focuses on generating primary data, verified physical improvements, and clear interventions within relevant value chain boundaries, it aligns with the core principles of CNZS v2. Investing in SCRs today establishes a future-proof foundation that meets current guidance while ensuring your supply chain strategy remains compliant as final standards mature.
Value chain decarbonization begins with supplier engagement.
In our latest guide, we provide five actionable strategies to bolster supplier engagement in climate objectives, and turn existing supplier relationships from transactional to transformational.
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