The Science Based Targets initiative (SBTi) is expected to launch Version 2.0 of its Corporate Net-Zero Standard in 2026, with new targets applying from 2027.
The update builds on the latest climate science and feedback from hundreds of companies, introducing tighter requirements for emissions targets and clearer guidance on what companies must do to align with a credible net-zero pathway.
For food companies whose biggest emissions often come from agriculture, these changes will set higher expectations for supplier engagement, data quality, and tighter rules on carbon removals.
This article highlights the five key changes food companies should understand now, so they can prepare in advance.
SBTi Net-Zero V2 introduces a new classification system that considers company size, resources, and geography, moving away from “one-size-fits-all” rules.
This matters because responsibilities no longer depend only on the sector, but also on capacity. Larger companies with bigger resources face stricter requirements, while smaller players have more flexibility, but still must take measurable action.
Category A companies will be required to:
Category B companies have more flexibility, but accountability remains. For example, if their suppliers fall into Category A, stricter data reporting and reduction expectations may still apply.
Until now, companies could combine Scope 1 and Scope 2 into a single target, which often led to an overemphasis on Scope 2 reductions through renewable electricity purchases. SBTi Net-Zero V2 ends that practice to ensure both are addressed with measurable action.
Scope 1 is more stringent
Scope 1 covers direct emissions from your own operations, such as fuel use, on-site energy generation, refrigeration leaks, or company vehicles. V2 requires a dedicated target that addresses 100% of these emissions.
This means you need clear, practical plans for reducing operational emissions, whether through equipment upgrades, efficiency improvements, electrification, or other decarbonization measures.
Scope 2 is more specific
Scope 2 refers to emissions from purchased electricity. V2 introduces a higher bar here as well: all electricity must come from verifiable zero-carbon sources. Generic renewable energy certificates are no longer enough.
The new standard now requires two Scope 2 targets for electricity use:
Previously, companies could pick either approach. Now SBTi wants both because it expects companies to take responsibility for both their local electricity impact and their energy sourcing choices.
A dairy processor, for example, will need one plan for cutting gas use in boilers (Scope 1) and another for all purchased electricity to come from zero-carbon sources. Bundling them into a single target is no longer acceptable.
Recommended reading: SBTi FLAG Guidance for Food Companies
Scope 3 emissions from suppliers, ingredients, transport, and downstream activities often make up 80–90% of a food company’s total footprint. Until now, only the largest companies prioritized Scope 3 targets. Under SBTi Net-Zero V2, all Category A companies must set ambitious Scope 3 targets, regardless of how much these emissions represent.
V2 also removes the percentage boundary that treats all Scope 3 emissions equally. The previous rule required companies to cover 67% of Scope 3 emissions, which meant a third of emissions could be left out. This often left smaller or harder-to-track sources unaddressed.
V2 instead asks companies to prioritize the highest-impact sources and the areas where they can actually influence suppliers.
What this means for food companies:
SBTi Net-Zero V2 introduces new rules for residual emissions (emissions your company cannot fully eliminate). Previously, these could be covered with offsets or credits. Under V2, you must set dedicated carbon removal targets.
From 2030, companies are expected to remove an increasing share of residual emissions each year until they are fully neutralized by the net-zero target date. The principle is straightforward: reduce as much as possible first, then remove what remains.
What counts as removal:
Basic offsets that only compensate emissions do not meet this standard.
For example, a food brand might switch to renewable energy and work with farms to cut methane and fertilizer emissions. At the same time, it invests in verified projects that permanently remove carbon from the atmosphere. This balanced approach is what SBTi expects with V2.
Good to know: Beyond internal reductions and removals, companies can voluntarily earn reputational credit through Beyond Value Chain Mitigation (BVCM) by investing in high-quality climate projects outside their supply chain. This includes verified carbon credits or direct restoration initiatives. However, BVCM actions taken won't be deducted from the company's emissions inventory, nor will they be counted towards abatement targets.
SBTi Net-Zero V2 raises the bar for proving climate progress. Companies can no longer rely solely on self-reported data; everything must be verifiable.
Companies setting near-term targets in 2025–2026 will continue to use Corporate Net-Zero Standard Version 1.2, which remains valid through 2030 or five years from validation, whichever comes first. This transition period gives businesses time to adjust while maintaining momentum on emissions reductions.
From 2027, companies will adopt V2 for both near-term and long-term targets. SBTi provides transition pathways to help companies align Scope 3 and other new requirements with V2 ahead of the 2030 deadline. Early alignment with V2 is recommended to stay ahead of stricter requirements.
We help food companies calculate and report emissions down to the product or ingredient level, in line with SBTi FLAG requirements. Our platform makes it easier to:
.svg){kind=icon}
