The scope 3 imperative: Why food and beverage companies can’t wait on their 2030 goals
As food and beverage corporations strive for net-zero goals, addressing scope 3 emissions is essential.
Ready to leverage supplier engagement for value chain decarbonization?
Supplier engagement is the key to an effective scope 3 decarbonization strategy. Learn more in our latest guide, 5 Strategies for Supplier Engagement.
As major food and beverage (F&B) companies continue to work toward their climate targets, a worrying trend is beginning to emerge: despite major progress on scopes 1 and 2, businesses in this sector are lagging behind in scope 3 reductions.
Of the U.S. food and beverage companies reporting progress on their climate goals set in accordance with those established by the Science Based Targets Initiative(SBTi), only 44% have shown meaningful progress in reducing their scope 3 emissions as of 2024. To achieve their 2030 climate objectives, these businesses would need to reduce their overall emissions by 152 million MT of CO2e.
With 2030 only four years–or four harvests–away, it’s time for food and beverage leaders to focus on scope 3 emission reductions. In this article, we look at what’s driving the scope 3 emissions lag in the food and beverage sector, the importance of taking action now, and provide key resources for businesses to take climate action to reach their scope 3 emissions targets.
Scope 3 emissions: A complex challenge, a climate imperative
According to research from Deloitte, scope 3 emissions can comprise up to 95% of the total carbon emissions of food and beverage manufacturers and retailers, due primarily to the complex agricultural processes that go into food production.
Despite the emissions reduction opportunity presented by scope 3, major food and beverage retailers have often struggled to implement reductions within their value chain. The complexity of scope 3 emissions–ranging from emissions generated through the third-party transportation of raw materials, to livestock manure, to nitrogen emissions generated by fertilizer production–means that businesses often lack clarity on how to precisely track their scope 3 emissions.
This problem is compounded by a lack of clarity from major regulatory bodies, which face similar issues navigating emissions complexity when building accounting guidelines.
The risk of waiting: As 2030 draws near, urgency grows for scope 3 emissions reduction
As 2030 draws near, food and beverage businesses are looking for actionable strategies to quickly reduce their Scope 3 emissions. With so many companies lagging behind on their Scope 3 objectives, many may be planning to dramatically increase emissions reduction efforts in the year or two immediately prior to the 2030 deadline.
However, it is unlikely that supply will keep up with demand for Scope 3 emission reductions. Below are three key reasons why:
Current Supply is Already Low
An analysis of reductions currently listed on voluntary carbon market (VCM) registries reveals a troubling insight for companies planning to wait on their Scope 3 Emissions. The total reductions currently listed on all markets from agricultural projects based in the U.S. is less than 1 million MT of CO2e, or less than 1% of the total needed to meet companies’ 2030 goals. While there are GHG reduction projects outside of these registries, this analysis points to a disturbing fact: there is a staggering gap between the supply of agricultural reductions and the demand expected to manifest in the years leading up to 2030.
In short, the low hanging fruit has already been claimed, leaving only more complex emissions reductions projects available for businesses trying to meet 2030 goals.
Project implementation–whether proven or novel–takes time
Given that current supply will not meet growing demand, it will be imperative for new projects to be developed ahead of 2030. However, project development timelines can slow the entry of new projects to the VCM. At 3Degrees, we develop a wide range of scope 3 emission reduction projects and consistently see development timelines stretching several years.
Proven technologies with well established methodologies often take 1-2 years to develop. This development timeline is determined by the partner consideration phase, project design, permitting, and construction / implementation as well as seasonality of interventions (certain projects, especially those related to growing practices, must wait for specific seasons to be implemented). One such example of a proven agricultural emissions reduction technology, solid liquid separators, a proven and cost effective manure management technology, typically take 6 months to a year to develop.
As demand for proven reduction strategies–the low-hanging fruit–grows, businesses may turn to projects utilizing more novel technologies. These new project types often have even longer development timeframes than more proven technologies. This is driven by the fact that both host and buyer risks may be greater and often need more education and support in the beginning of the process, as well as monitoring, reporting, and verification (MRV) as the projects are listed on carbon registries. Additionally, these projects often face regulatory challenges, leading to further delays. In the case of novel feed additives for cows, we often see project proponents go through additional regulatory safeguards to ensure project safety and compliance that can add months to the project timeline.
By waiting to take action on scope 3 emissions, food and beverage leaders risk placing themselves at the mercy of unpredictable project development timelines, which could put their 2030 climate objectives at risk.
Federal headwinds lead to fewer available projects
A final challenge to the supply of new projects to address Scope 3 emissions is the significant reduction in federal funding seen in 2025. Reductions in funding to the Climate Smart Commodities program have led many projects to downsize or shutdown altogether.
Another program that has suffered significantly under recent funding decisions was the USDA’s Regional Conservation Partnership Program, which saw major cuts and restructuring under the current administration. One of the many far-reaching initiatives sponsored by this program was focused on the introduction of emission-reducing feed additives to livestock herds; these additives greatly reduced methane emissions from livestock, and were eligible for registration on the voluntary carbon market. With funding for this program now cut, these projects will decrease in number, and thus reduce the total number of credits available for businesses to purchase when addressing methane emissions.
With the current U.S. administration unlikely to resume funding for these agricultural emission reduction projects, federal funding is likely to remain scarce.
To meet 2030 goals, food and beverage leaders must act now
The convergence of a diminishing number of readily available projects, lengthy project development cycles, and reduced federal resources paints a clear picture: time is the most valuable commodity for food and beverage companies aiming to meet their 2030 Scope 3 targets. A strategy of deferring action is no longer viable; it’s a risk that will likely result in failure to meet climate goals, exposing businesses to increased regulatory and reputational scrutiny.
At 3Degrees, we’re enabling supplier engagement for scope 3 climate action
Successful scope 3 decarbonization relies upon deeply integrated, expert-led climate strategy with strategic supplier activation.
3Degrees empowers food and beverage companies to drive supplier emission reductions in a scalable and simplified manner. Our team of agricultural decarbonization experts help sustainability leaders directly influence and create the high-integrity agricultural emissions reductions required to meet ambitious climate goals, ensuring project integrity and essential supply chain emissions reductions for 2030 and beyond.
With the clock ticking and the gap between Scope 3 supply and demand widening, food and beverage leaders will benefit from prioritizing their engagement strategy immediately. To learn how to turn your scope 3 ambitions into climate action, download our latest resource, 5 Strategies for Supplier Engagement.
Ready to take action on your scope 3 emissions?
In our latest guide, we present actionable solutions to leverage supplier networks for value chain decarbonization. In Five Strategies for Supplier Engagement, you’ll learn how to leverage supplier relationships to advance your climate goals., actionable strategies for supplier-driven value chain decarbonization. and how 3Degrees is helping climate leaders take action on their complex scope 3 emissions.
Download Five Strategies for Supplier Engagement, and learn how to move from climate ambition to climate action.
Frequently Asked Questions about scope 3 emissions in the food and beverage sector
Want to know more about scope 3 emissions in the food and beverage sector? Take a look at the answers to these frequently asked questions:
What are scope 3 emissions in the food and beverage sector?
For companies in the food and beverage sector, scope 3 emissions represent the indirect greenhouse gas emissions that occur throughout the entire value chain, often accounting for up to 95% of a business’s total carbon footprint. These emissions are primarily driven by complex agricultural processes, including livestock methane, fertilizer production, and third-party transportation of raw materials. Because these activities occur outside of a company’s direct operational control, they are notoriously difficult to track and reduce, yet they remain the most critical hurdle to achieving 2030 climate objectives.
Why is supplier engagement essential for meeting 2030 climate goals?
Successful supplier engagement is the foundation of any effective decarbonization strategy because it allows companies to influence the agricultural practices where the majority of their emissions originate. By moving from a “policing” mindset to a collaborative partnership, leaders in the food and beverage sector can help their suppliers implement high-integrity reduction projects, such as improved manure management or the use of emission-reducing feed additives. Without active engagement, businesses risk facing a shortage of available carbon credits and falling behind on their science-based targets as the 2030 deadline approaches.
What are the main challenges to reducing scope 3 emissions by 2030?
The primary challenges to reducing scope 3 emissions stem from the extreme complexity of agricultural supply chains and the lengthy timelines required to implement new reduction technologies. Agricultural systems within the food and beverage sector are often fragmented, involving thousands of individual producers with varying practices, making it difficult to establish the monitoring and verification protocols necessary for high-integrity climate action. Because project development—from initial design to actual carbon reduction—can take several years, companies must accelerate their supplier engagement efforts now to ensure they have a stable supply of emissions reductions before the 2030 deadline.
Our team helps sustainability leaders move from climate ambition to climate action.
At 3Degrees, our industry-leading team of climate strategists is ready to help you address complex scope 3 emissions. Reach out today, and learn how you can turn climate ambition into climate action.
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